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In Shrijee Sales Corporation and Anr
Precedent
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v. Union of India, [1997] 3 SCC 398 1996 Indlaw SC 1561 it was observed that once public interest is accepted as the superior equity which can override individual equity the principle would be applicable even in cases where a period has been indicated for operation of the promise
Precedent
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If there is a supervening public equity, the Government would be allowed to change its stand and has the power to withdraw from representation made by it which induced persons to take certain steps which may have gone adverse to the interest of such persons on account of such withdrawal
Precedent
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Moreover, the Government is competent to rescind from the promise even if there is no manifest public interest involved, provided no one is put in any adverse situation which cannot be rectified
Precedent
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Similar view was expressed in M/s
Precedent
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Pawan Alloys and Casting Pvt. Ltd
Precedent
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Meerut Etc
Precedent
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Etc
Precedent
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v. U.P. State Electricity Board and Others, AIR (1997
Precedent
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SC 3910 1997 Indlaw SC 1364 and in Sales Tax Officers and Anr
Precedent
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v. Shree Durga Oil Mills and Anr
Precedent
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1999] 1 SCC 573 1997 Indlaw SC 1219, it was further held that the Government could change its industrial policy if the situation so warranted and merely because the resolution was announced for a particular period, it did not mean that the government could not amend and change the policy under any circumstances
Precedent
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If the party claiming application of the doctrine acted on the basis of a notification it should have known that such notification was liable to be amended or rescinded at any point of time, if the government felt that it was necessary to do so in public interest
Precedent
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In view of the factual position recorded by the High Court that at the point of time the appellants' units were set up and the commercial production started there was no assurance or promise
Ratio of the decision
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The doctrine of promissory estoppel had no application to the facts of the case at that stage
Ratio of the decision
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We find no substance in the plea that before a policy decision is taken to amend or alter the promise indicated in any particular notification, the beneficiary was to be granted an opportunity of hearing
Ratio of the decision
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Such a plea is clearly unsustainable
Ratio of the decision
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While taking policy decision, the government is not required to hear the persons who have been granted the benefit which is sought to be withdrawn
Ratio of the decision
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The question of legitimate expectation arises according to the appellants after the benefits were granted by the concerned G.O.Ms
Ratio of the decision
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At this juncture we would like to take note to certain factual positions highlighted by the appellants which are practically undisputed by the respondents
Ratio of the decision
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Contrary to what the High Court has stated, it appears from record that counter affidavits were filed
Ratio of the decision
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The reasons which have weighed with the High Court to uphold the action of the State were not pleaded before the High Court specifically, and the High Court cull out those from the files which were produced before it
Ratio of the decision
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Though the appellants were not entitled to any opportunity of hearing before alteration of the benefits flowing from the notifications or withdrawal of any benefit, yet when the State has not taken any specific stand justifying the withdrawal and the High Court referred to the files to put its seal of proof, notwithstanding non-requirement for granting any opportunity before the withdrawal, principles of natural justice certainly were applicable, since the High Court with reference to the files recorded findings on the basis thereof
Ratio of the decision
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As noted above no specific grounds or reasons were indicated to justify the withdrawal in the affidavits filed before the Tribunal or the High Court, as the case may be
Ratio of the decision
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As the correctness of factual basis justifying withdrawal is in issue, fair play certainly warranted grant of opportunity to the appellants to present its side of the picture
Ratio of the decision
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Further, a definite plea was taken that there was no scope for retrospective withdrawal of benefit by an executive order
Ratio of the decision
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The High Court has not dealt with the issue
Ratio of the decision
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The same also needs to be examined
Ratio of the decision
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Above being the position, decision of the High Court by placing reliance on the files to hold that the withdrawal was justified, is not tenable in law and in the fitness of things, the High Court should hear the matter afresh and taken decision on those two issues
Ratio of the decision
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It is made clear that we have not expressed any opinion on those issues on the facts of the present case
Ratio of the decision
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It is to be noted that no privilege was claimed from production of the file as the files were produced before the High Court and in fact the High Court referred to the materials on the files to affirm State's action
Ratio of the decision
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We direct that the State Government, if it so chooses, shall file its further counter-affidavits before the High Court within six weeks from today indicating the reasons which warranted the withdrawal of the benefits extended
Ratio of the decision
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The plea of the appellants regarding legitimate expectation shall be considered by the High Court in the light of materials to be placed by the respondents by affidavits as directed above
Ratio of the decision
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We make it clear that we have not expressed any opinion on the factual aspects except indicating the principles underlying legitimate expectation
Ratio of the decision
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Another point which was specifically raised before the High Court but has not been dealt by it is the legality of the action in directing retrospective withdrawal of the benefit by a letter of the Government
Ratio of the decision
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Whether the same is permissible in law has to be decided by the High Court
Ratio of the decision
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To the aforesaid limited extent, the matter is remitted to the High Court for fresh consideration
Ruling by Present Court
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The appeals are disposed of accordingly without any order as to costs
Ruling by Present Court
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Appeals disposed of
Ruling by Present Court
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These appeals arising out of a judgment and order dated 26.4.2000 passed in Writ Petition No.1188 of 1997 by the High Court of Madhya Pradesh, Indore Bench, involving similar questions of law and fact were taken up for hearing together and are being disposed of by this common judgment
Facts
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BACKGROUND FACTS
Facts
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The Appellant Nos.1 and 2 are Degree holders in Civil Engineering and Appellant Nos
Facts
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3 and 4 are Diploma holders in Civil Engineering
Facts
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They having come to learn that certain vacancies exist in the Respondent- Authority, applied therefor although no advertisement in that behalf was issued
Facts
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The Respondent-Authority appointed the Appellants and posted them to an overseas project known as 'Indore Habitat Project' which was implemented through the agency of 'Overseas Development Authority' (hereinafter referred to as 'the ODA'), on daily wages
Facts
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Rs.63/- per day for the Degree holders and Rs.52.50 per day for the Diploma holders
Facts
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On or about 17.3.1997, however, they began receiving a salary of Rs.1500/- per month
Facts
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Allegedly, from their salary, provident fund was being deducted
Facts
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They were also being granted the benefit of leave
Facts
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A dispute arose as to whether all the Appellants were employed for the purpose of the said project or the Appellants in Civil Appeal No.337 of 2002 were appointed in the year 1991 by the Authority for its own job
Ratio of the decision
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An industrial dispute was raised by the Appellants herein as their services were not being regularized by the Respondent
Ratio of the decision
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The said dispute was referred for adjudication of the Labour Court, Indore, by the State of Madhya Pradesh on the following questions
Facts
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1)Whether non-regularisation of the Sub-Engineers (as per the listed enclosed) is valid and proper
Ratio of the decision
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If no, then to which relief they are entitled and what directions should be given to the employer
Ratio of the decision
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2)Whether it is valid and proper for not giving equal salary to these Sub Engineers like other Sub Engineers in accordance with the equal work
Ratio of the decision
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PROCEEDINGS BEFORE THE TRIBUNAL
Facts
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The parties filed their respective pleadings before the Labour Court and also adduced their respective evidences
Facts
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The Labour Court on the basis of the materials produced before it arrived at the following findings : 1
Facts
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The Appellants were appointed by the Indore Development Authority
Facts
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All the employees have been working in the establishment of the Respondents for last 5-6 years
Facts
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Their work was satisfactory
Facts
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Work has been taken by the Respondent from all the Appellants except four
Facts
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Respondents had also mentioned in their claim that there was a proposal to hand over the colony of ODA Project to Indore Municipal Corporation
Facts
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The salary fixed by the Commissioner was earlier given to all Engineers and later on they were given the salary fixed by the Collector
Facts
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There is no difference in their work and the work of the employees of Indore Development Authority
Facts
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Aggrieved by and dissatisfied with the said Award, the Respondent- Authority herein filed a writ petition before the Madhya Pradesh High Court, Indore Bench, which was marked as Writ Petition No.1188 of 1997
Facts
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By reason of the impugned judgment dated 26.4.2000, the said writ petition was allowed
Facts
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HIGH COURT JUDGMENT
Ruling by Lower Court
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The High Court accepted the contention of the Respondent-Authority that the Appellants were not appointed against the sanctioned posts and their services were taken on account of the said ODA Project which was implemented through the agency of the Respondent-Authority
Ruling by Lower Court
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The ODA Project is said to have been completed and only the maintenance thereof was to be looked after by the Indore Municipal Corporation
Ruling by Lower Court
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It was held that the services of the Appellants cannot be directed to be regularized in services
Ruling by Lower Court
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As regard the application of the Madhya Pradesh Industrial Employment (Standing Orders) Act, 1961 (for short, 'the 1961 Act') and the Rules framed there under known as 'M.P. Industrial Employment (Standing Order) Rules, 1963 (for short, 'the 1963 Rules'), it was observed that although there was no specific pleadings raised in this behalf by the Respondents therein nor any question having been referred to the Labour Court by the State Government touching the said issue, it committed an error in granting relief to them on the basis thereof on its own motion
Ruling by Lower Court
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Despite the same the High Court went into the question of applicability of the said Act and held that the 1961 Act and the 1963 Rules had no application
Ruling by Lower Court
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Before the High Court various documents were produced by the Appellants herein to show the nature of their employment, but the same had not been taken on records by the High Court
Ruling by Lower Court
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As regard application of the doctrine of 'equal pay for equal work', it was held to be not applicable as the Appellants were not entitled to 'absorption' or 'classification' in terms of the 1961 Act and the 1963 Rules
Ruling by Lower Court
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SUBMISSIONS
Argument
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Dr. Rajiv Dhawan, learned Senior Counsel, appearing on behalf of the Appellants in Civil Appeal No.337 of 2002 and Mr. M.N. Rao, learned Senior Counsel, appearing on behalf of the Appellants in Civil Appeal No.335 of 2002, took us through materials on records and contended that the Appellants herein became 'permanent employees' of the Respondents having regard to the provisions contained in S. 2 of the 1961 Act and Order 2(i) and 2(vi) of the Standard Standing Orders as set out in the Annexure appended to the 1963 Rules defining 'permanent employees' and the 'temporary employees
Argument
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Placing reliance on several documents which have come into existence at a subsequent stage, Dr. Dhawan would contend that vacancies in fact had arisen after passing of the judgment of the High Court and, thus the services of the Appellants should be regularized there against
Argument
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The vacancies, according to the learned counsel, need not be permanent ones
Argument
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It was urged that the expression 'clear vacancies' has to be read in the context of period for which the concerned workman was required to work, namely, six months
Argument
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The learned counsel would argue that the job was required to be performed for six months for which somebody else could have been appointed so as to attract the provisions of the 1961 Act and the 1963 Rules
Argument
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Dr. Dhawan would furthermore contend that the findings of fact had been arrived at by the Labour Court that the Appellants of Civil Appeal No.337 of 2002 were appointed by the Authority and not only their work was being taken in the Project but also in other works, and, thus, mere posting of the Appellants to the said Project would not disentitle them from the benefit of the said Act
Argument
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The learned counsel would urge that a seniority list was also drawn up and an employment code was assigned to each one of the Appellants from which fact the nature of their employment should be judged
Argument
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The learned counsel would submit that the sufficient materials were brought on records to show that vacancies were available and as the Appellants worked for a period of more than six months, they became permanent employees in terms of the Act
Argument
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It was further contended that as the Respondents despite direction to produce documents including the offers for appointment did not produce the same, an adverse inference should have been drawn against them by the High Court
Argument
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As regard the claim of 'equal pay for equal work', the learned counsel would urge that the High Court has failed to consider the same in its true perspective
Argument
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Mr. V.R. Reddy, learned Senior Counsel appearing on behalf of the Respondents, on the other hand, would contend that indisputably the Appellants were engaged by the Respondent-Authority but such appointments were made for the purpose of the Project financed by ODA
Argument
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The learned counsel would submit that in fact no appointment letter was issued to the Appellants
Argument
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Our attention was also drawn to the application dated 22.10.1991 filed by one O.P. Mandloi before the Chairman of the Indore Development Authority disclosing his educational qualifications and enclosing therewith the mark-sheets and degrees obtained by him in Civil Engineering and also Secondary School Examination Certificate to show his date of birth
Argument
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whereupon the Chief Executive Officer on the body of the said application itself, made the following endorsement : "He may be tried in daily wages and should be entrusted with the work of progress collection of ODA work put with (Illegible
Argument
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Sd/- C.E.O. 23.10.91
Argument
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The learned counsel would submit that in the aforementioned premise the question of regularization of the services of the Appellants does not arise
Argument
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Drawing our attention also to the pleadings as also the reliefs claimed for by the Appellants before the Labour Court, the learned counsel would contend that no contention was raised therein by the Appellants as regard their entitlement of permanency in terms of the provisions of the 1961 Act and the 1963 Rules
Argument
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Furthermore, from the reliefs claimed, it would appear that the Appellants had, inter alia, prayed for continuance of their services by the Indore Municipal Corporation which knocks off the very basis of their claim
Argument
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It was urged that there does not exist any controversy that ODA was to continue before 30.6.1997 and as such the Appellants could not have been absorbed by the Respondent authority
Argument
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STATUTORY
Statute
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PROVISIONS : S. 2(2) of the 1961 Act
Statute
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reads as follows : "Nothing in this Act shall apply to the employees in an undertaking to whom the Fundamental and Supplementary Rules, Civil Services (Classification, Control and Appeal) Rules, Civil Services (Temporary Service) Rules, Revised Leave Rules, Civil Service Regulations or any other rules or regulations that may be notified in this behalf by the State Government in the official Gazette apply
Statute
Analyze the sentence and predict in which semantic role (Arguments, Precedent, Statutes, Facts, Ratio Decidendi, Ruling of Lower Court, Ruling of Present Court) does this come under in Indian legal context
Cl
Statute
Analyze the sentence and predict in which semantic role (Arguments, Precedent, Statutes, Facts, Ratio Decidendi, Ruling of Lower Court, Ruling of Present Court) does this come under in Indian legal context
2 of the Standard Standing Order reads as under : "2
Statute
Analyze the sentence and predict in which semantic role (Arguments, Precedent, Statutes, Facts, Ratio Decidendi, Ruling of Lower Court, Ruling of Present Court) does this come under in Indian legal context