Ranbir Singh Vs SK Roy, Chairman, Life Insurance Corp. of India & Anr.

Ranbir Singh Vs SK Roy, Chairman, Life Insurance Corp. of India & Anr. - Supreme Court Case - 


Landmark Cases of India / सुप्रीम कोर्ट के ऐतिहासिक फैसले


Reportable
IN THE SUPREME COURT OF INDIA
INHERENT JURISDICTION
Miscellaneous Application No. 1150 of 2019
In
Contempt Petition (Civil) No. 1921 of 2017
In
Civil Appeal No. 6950 of 2009
Ranbir Singh …Applicant/Petitioner
Versus
SK Roy, Chairman, Life Insurance …Respondents
Corp. of India & Anr.
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6
J U D G M E N T
Dr Dhananjaya Y Chandrachud, J
This judgment has been divided into sections to facilitate analysis. They are:
A Introduction...................................................................................................... 7
B Dogra Report................................................................................................. 23
C LIC’s objections to the Dogra Report ............................................................ 30
D The E Prabavathy Group .............................................................................. 32
E Sequel to E Prabavathy ................................................................................ 37
F Submissions .................................................................................................. 41
G Prelude – Tulpule and Jamdar Awards, and their Aftermath ........................ 52
H Srivastav Award and the Judgement of this Court........................................ 57
I Validity of the verification in the Dogra Report.............................................. 69
J The Interplay between the Industrial Disputes Act 1947 and Section 48 of the
LIC Act 1956........................................................................................................ 74
K Structuring the Relief..................................................................................... 84
PART A
7
A Introduction
1 This litigation has a long and chequered history. The dispute, a familiar terrain
in service jurisprudence, pertains to the claim for absorption of persons who were
engaged by the Life Insurance Corporation of India1 as temporary/badli/part-time
workers. Section 23(1) of the Life Insurance Corporation Act 19562 enables LIC to
employ such number of persons as it thinks fit to discharge its functions. Pursuant to
clauses (b) and (d) of Section 49(2), LIC has framed the Life Insurance Corporation
of India (Staff Regulations) 19603
. Regulation 8 empowers LIC to appoint persons
on a temporary basis in Class III and Class IV posts. After an amendment which was
notified on 7 August 1971, Regulation 8 provides as follows:
“8. Temporary Staff:-
(1) Notwithstanding anything contained in these Regulations
the Managing Director or Executive Director (Personnel), a
Zonal Manager or a Divisional Manager may employ staff in
classes III and IV on a temporary basis, subject to such
general or special directions as may be issued by the
Chairman from time to time.
(2) No person appointed under sub-regulation (1) shall only
by reason of such appointment be entitled to absorption in the
services of the Corporation or claim preference for
recruitment to any post.”
2 On 31 January 1981, Sections 48 and 49 were amended to impart statutory
force to the Staff Regulations. According to LIC, its staff and employees are
governed by the parent enactment and fall outside the purview of the Industrial
 1 “LIC” 2 “LIC Act” 3 “Staff Regulations”
PART A
8
Disputes Act 19474
. The validity of the amendment to Sections 48 and 49 has been
upheld by this Court in A V Nachane v. Union of India5
.
3 On 13 August 1982, an industrial dispute was raised by the Western Zonal
Insurance Employees Association alleging that LIC had been engaging in unfair
labour practices by employing temporary, badli and part-time workers and was
restricting their employment to short tenures to deprive them of the claim for
permanency.
4 On 20 May 1985, the dispute was referred for adjudication by the Central
Government to the National Industrial Tribunal6
, Bombay presided over by Justice R
D Tulpule7
, a former Judge of the Bombay High Court. The terms of reference were
as follows:
“What should be the wages and other conditions of service of
badli, temporary and part-time workmen of the Life Insurance
Corporation of India as well as the conditions of their
absorption into regular cadre?”
5 On 15 January 1986, the Tulpule Tribunal issued an interim order restraining
LIC from recruiting regular employees and from terminating the services of the ad
hoc workers working with LIC.
 4 “ID Act” 5 (1982) 1 SCC 205 (“A V Nachane”). See also: M. Venugopal v. Divisional Manager, LIC, Machilipatnam, (1994)
2 SCC 323; and Life Insurance Corporation of India v. Raghavendra Seshagirirao Kulkarni, (1997) 8 SCC 461 6 “NIT” 7 “Tulpule Tribunal”
PART A
9
6 On 18 April 1986, the Tulpule Tribunal passed an award8 which was gazetted
on 7 June 1986 stipulating that those ad hoc workers who were in employment
between 1 January 1982 and 20 May 1985 will be entitled for absorption. The
award, inter alia, stipulated that:
(i) Workers claiming absorption in Class III posts should have worked for 85
days in a period of two years; and
(ii) Workers in Class IV posts should have worked for 70 days in a period of three
years.
The calculation of the number of days worked was to be up to the date of the
reference. The award contemplated that in the future there would be no occasion for
LIC to employ workers in temporary and badli categories, save and except for
occasional and temporary work.
7 On 1 June 1987, LIC issued circulars for implementing the Tulpule Award.
These circulars were disputed by the Unions and Associations representing the
workers. Following this dispute over the LIC circulars, the Central Government
referred the Tulpule Award for interpretation under Section 36-A of the ID Act to
another NIT presided over by Justice M S Jamdar9
, a former Judge of the Bombay
High Court. The terms of reference were:
“Can the Award dated 17/4/1986 special reference to
paragraph 44,45,46, 48, 49, 51,52,54,56,57,60,64 and 66 and
the interim order dated 14/3/1986 be interpreted to mean that
the central office of the Life Insurance Corporation of India is
 8 “Tulpule Award” 9 “Jamdar Tribunal”
PART A
10
empowered to issue instructions/ guidelines, as contained in
their circulars issued in this behalf to implement the directions
of the Award. If not what could be the correct interpretation of
various directions covered by the said paragraphs in the
circumstances of the case? Whether the term ‘absorption’
referred to at various places in the Award can be interpreted
to mean ‘recruitment’?”
8 By an interim order dated 29 June 1987, the Jamdar Tribunal prohibited LIC
from recruiting persons to Class III and Class IV posts from the ‘open market’ during
the pendency of the proceedings. LIC has argued before this Court that on account
of the restraint imposed on it from recruiting regular employees (through the interim
orders dated 15 January 1986 of the Tulpule Tribunal and 29 June 1987 of the
Jamdar Tribunal), a large number of ad hoc workers were appointed to carry out the
day-to-day administration of LIC all over India.
9 The Jamdar Tribunal rendered its award on 26 August 198810 and it was
notified in the gazette on 1 October 1988. It held that the absorption contemplated in
the Tulpule Award did not imply recruitment. LIC challenged the interpretation
rendered by the Jamdar Award under Article 136 of the Constitution. This Court
granted leave in the proceedings11. During the pendency of the proceedings, terms
of compromise were arrived at between LIC and all the Unions representing the
workers, save and except the Akhil Bharatiya Jeevan Bima Nigam Chathurthi Sreni
Karmachari Sangh12. The terms of compromise envisaged that the Jamdar and
Tulpule Awards should be substituted by the terms and conditions of the
 10 “Jamdar Award” 11 SLP (Civil) No 14906 of 1988, which was numbered as Civil Appeal No 1790 of 1989 on the grant of leave 12 “Karmachari Sangh”
PART A
11
compromise “in relation to the question of regular employment of the workmen
concerned in the said references”. The terms of compromise which were filed before
this Court are extracted below:
“TERMS OF COMPROMISE
1. The Management and the workmen agree that the Award
of the National Industrial Tribunal presided over by Mr.
Justice R.D. Tulpule, in Reference No.NTB-1 of 1988,
published on 7th June 1986, and the Award of the
National Industrial Tribunal presided over by Mr. Justice
M.S. Jandar, dated 26th August 1988 in Reference No.
NTB-1 of 1987, published on 1st October 1988, be
substituted by the Terms and Conditions of Compromise
set out hereinafter in relation to the question of regular
employment of the workmen concerned in the said
Reference.
2. The Management agrees to consider the
temporary/part-time/badli workmen employed by the
petitioner for 85 days in any two years in a Class III
post and for 70 days in any three years in a Class IV
post in any of its establishments during the period
1.1.82 to 20.5.85, for regular employment on the basis
and in the manner stated hereinbelow. The
temporary/part-time/badli workmen who had made
applications for regular employment on or before 7.7.86
or those temporary/part-time/badli workmen whose
applications had been received after 7.7.86 but before
6.3.87 and had been rejected on account of late
submission, shall be eligible for consideration for regular
employment. The selection of the candidate shall be
made on the basis of the following qualifications, age
test, interview and also having regard to the number
of days worked by the candidates. A panel of selected
candidates shall be made and the selected
candidates shall be appointed in regular employment
from the panel in the order of merit prospectively
from the dates to be notified as and when vacancies
in sanctioned posts for regular employment are filled
in from time to time :-
PART A
12
(i) QUALIFICATIONS – As per Circular
No.Per/A/2D/492/ASP/79, dated 27.11.79, prescribed for
Class III employee subject to relaxation only in regard to
percentage of marks, required as per the qualifications as
may be decided by the Managing Director of the PetitionerCorporation.
Per/A/2D/526/ASP/81, dated 24.6.1981 subject to relaxation
in the matter of basic qualifications as may be decided by the
Managing Director of the Petitioner-Corporation.
(ii) AGE – As per Regulation No. 18 of (Staff)
Regulations, 1960, made by the Petitioner.
(iii) TEST – As per Circular dated 27.11.1979, for Class III
as well as Class IV workmen and, in addition, as per
Circular dated 4.6.1981 for Class IV workmen only.
(iv) INTERVIEW – As per Circular dated 27.11.79 for both
Class III and Class IV workmen.
3. The temporary/part-time/badli workmen who had already
qualified in the written test held earlier for consideration
for eligible workmen for regular employment, will not be
required to appear again for test and they shall be
considered for interview on the basis of the test already
held.
4. The test and interview for regular employment to be held
for the purpose of selection of the temporary/parttime/badli workmen aforementioned, shall be commenced
within one month of the order of this Hon’ble Court in
terms of this Compromise. The selected candidates shall
be appointed in regular employment in accordance with
the panel of selected candidates till it is exhausted. The
petitioner shall, however, be entitled to made recruitment
straightway wherever vacancies are more than the
candidates in any Division in view of the necessity or
expediency for such recruitment.
5. The recruitment of the temporary/part-time/badli workmen
in the categories of Scheduled Caste/Scheduled Tribe,
shall be considered first and if any vacancy may remain
unfulfilled in that category, the petitioner shall be entitled
to made recruitment in accordance with its usual
procedure according to its requirements.
6. In view of the abovementioned Terms of Compromise no
dispute in relation to the workmen concerned, as referred
in Clause 1 hereinabove, survives in regard to the matter
PART A
13
covered by this Compromise between the parties and the
respective rights and obligations of the parties in relation
to regular employment of the said workman concerned
shall be determined and given effect accordingly, if any
controversy may arise.”
(emphasis supplied)
The terms of compromise were accepted by an interim order of a two-judge Bench
of this Court in LIC v. Their Workmen13 on 1 March 1989. The order is extracted
below:
“Special leave is granted. It appears that out of nine Unions
eight Unions said to be representing about 99% of the
workers have entered into a compromise with the
Management. In the circumstances pending the final disposal
of the appeal, we permit the Management and the members
of the said eight Unions to implement the terms of
compromise by way of interim measure without however, any
prejudice to the rights and contentions of the members of the
other Union, who have not entered into such compromise with
the management.”
10 On 7 February 1996, the above civil appeal in LIC v. Their Workmen (supra)
was disposed of. This Court accepted the contention of LIC that since eight unions
had already accepted the compromise, the ninth union (Karamchari Sangh) should
fall in line and act on the terms and conditions of the compromise in the interest of
industrial peace. Since the litigating workers in Class IV posts were unable to take
the test during the pendency of the proceedings, LIC was directed to exempt Class
IV workers from appearing for the test and interview, if the management had power
to do so under the regulations or the instructions governing their conditions of
 13 Civil Appeal No 1790 of 1989 (1 March 1989) (“LIC v. Their Workmen”)
PART A
14
service. The Court observed that in the event that the management had no such
power, it had “no doubt” that the test prescribed for the workers would be of a lower
standard than what had been prescribed under the two circulars mentioned in the
compromise. Pursuant to the compromise, LIC appointed 1875 persons to Class III
posts and 1324 persons to Class IV posts in various divisions.
11 The genesis of the present dispute relates to a demand raised by the Unions
on 4 March 1991, pertaining to the claim for regularisation of those workers who
were employed from 20 May 1985 till the date of reference on 4 March 1991. Acting
on the demand, the Central Government made the following reference to the Central
Government Industrial Tribunal14 under Sections 10(1)(d) and 2A of the ID Act:
“Whether the action of the Management of Life Insurance
Corporation of India in not absorbing badli/temporary and
part-time workmen employed in the establishment of LIC after
20.05.1985 is justified? If not, to what relief the workmen are
entitled?”
12 On 18 June 2001, the CGIT which was presided over by Shri K S Srivastav,
pronounced the award15 by directing the absorption of the temporary/badli workers
on the same terms as the Tulpule and Jamdar Awards, with some modifications.
The Srivastav Award held that:
“88. In view of the fact I am of the definite view that such type
of workmen belonging to temporary/badly/ part time
categories in class III and Class IV service of the corporation
who were employed after following the procedure and were
allowed to continue service beyond the qualifying period and
 14 “CGIT” 15 “Srivastav Award”
PART A
15
were eligible and suitable to every respect should be given
absorption in the service from date of the vacancy in the
service in which they could have been absorbed. It will also
apply to these employees whose service were terminated by
the corporation.”
13 In its ultimate directions, the Srivastav Award directed that the temporary,
badli and part-time workers who were employed after 20 May 1985 should be
granted absorption on the same terms and conditions as was stipulated in the
Tulpule and Jamdar Awards (in respect of workers who were employed from 1
January 1982 to 20 May 1985). LIC was directed to publish a notice in the
newspapers for inviting applications from individual workers for absorption. If no
regular vacancy was available, the award directed supernumerary posts to be
created. Paragraph 94 of the Srivastav Award is extracted below:
“94. In view of the matter I find and conclude that the action of
corporation denying the absorption of these
temporary/badli/part time workmen as dealt with above in the
body of this award and employed after 20-05-85 is not
justified. I further find that these workmen employed after 20-
5-85 should be given absorption in their job on the same
terms and conditions as laid down in the aforesaid two
awards namely Hon’ble Mr Justice R.D. Tulpule and of
Hon’ble Mr Justice M.S. Jamdar in respect of the workmen
employed with effect from 1-1-82 to 20-05-85 and dealt with
by me as above. It is directed that the corporation shall take
into consideration for the absorption of the workmen, on their
eligibility and suitability as dealt with above in the award. The
case of those workmen belonging to the category of
temporary, badli, part-time who had become eligible for their
absorption in their job after completing the qualified period of
working and were suitable in every respect but their services
were terminated and they were turned out of the job by the
corporation should also considered for the absorption of such
terminated workmen of the corporation shall publish a notice
in the daily newspaper having wide circulation throughout
India and if in compliance of the notice the workman
PART A
16
concerned consent in writing within stipulated period which
could be given in the said notice the case of such workman
should also be considered for their absorption in the regular
vacancy then existing. At the time of the consideration of
absorption of such workmen if it is found that no regular
vacancy is available to such workmen, supernumerary posts
should also be created and such workmen should be given
absorption in it. It is also directed that the cases of these
workmen for absorption in existing vacancies should be taken
for consideration first irrespective of the regular recruitment if
taken. The case of the contractual workmen for absorption
shall be taken into consideration as per observation made in
the body of the award and on the basis on conditions as
stated above.”
14 The Srivastav Award was challenged by LIC in a writ petition16 before the
Delhi High Court. By a judgment dated 15 April 2004, a Single Judge of the Delhi
High Court set aside the award and held that the decisions of this Court in E
Prabavathy v. Life Insurance Corporation of India17 and LIC of India v. G
Sudhakar18 directing LIC to formulate a scheme for regularisation were binding on
the CGIT. The judgment of the Single Judge of the Delhi High Court was the subject
matter of a batch of Letters Patent Appeals19 preferred by six Unions/Associations.
The appeals were dismissed on 21 March 2007 by the Division Bench. The Division
Bench also issued directions for age relaxation and weightage of past service to the
workers:
“20. In that view of the matter, while dismissing the appeals
filed by the appellants, we issue directions in the following
manner:
 16 W P No 4346 of 2001 (High Court of Delhi) 17 SLP (Civil) No 10393 of 1992 (“E Prabavathy”) 18 Civil Appeal No 2104 of 2000 (“G Sudhakar”) 19 LPA 678 of 2004 with LPA 690 of 2004, LPA 710 of 2004, LPA 722 of 2004, LPA 1023 of 2004 and LPA 1165 of
2004
PART A
17
(a) for the next three years whenever an advertisement is
made by the respondent corporation for filling up
vacancies in Class III and Class IV posts, an opportunity
shall be given to the appellants to submit their
applications, which, if submitted, shall be considered
along with all other candidates but giving age relaxation to
the appellants and also giving due weightage to the past
services rendered by the appellants.
21. In terms of the aforesaid order, the appeals stand
disposed of.”
15 The judgment of the Division Bench of the Delhi High Court was assailed in a
batch of Special Leave Petitions20 filed by six Unions and Associations representing
the workers. In the meantime, LIC began the process of implementing the judgment
of the Division Bench of the Delhi High Court on 21 March 2007 by issuing an
advertisement for recruitment of Assistants, by allowing age relaxations and
weightage for temporary workers to compete with candidates from the open market.
On 11 February 2008, this Court directed the maintenance of status quo. The civil
appeals were eventually disposed of by a two-judge Bench of this Court on 18
March 2015 in Tamil Nadu Terminated Full Time Temporary LIC Employees
Association v. Life Insurance Corporation of India21 which concluded that the
Srivastav Award was binding. While restoring the Srivastav Award, the judgment of
this Court directed LIC to implement its directions and set aside the judgment of the
Delhi High Court.
 20 Special Leave to Appeal (Civil) No 15269 of 2007 with SLP (Civil) No 18943 of 2007, SLP (Civil) No 19958 of 2007,
SLP (Civil) No 20058 of 2007, SLP (Civil) No 22712 of 2007 and SLP (Civil) No 23623 of 2007 21 (2015) 9 SCC 62 (“TN Terminated Employees Association”)
PART A
18
16 Following the judgment of this Court, LIC issued an advertisement on 21 July
2015 calling for applications from workers who were employed as
badli/temporary/part-time workers in its establishment from 20 May 1985 to 4 March
1991, in terms of the eligibility criteria determined by the award. This led to the
institution of contempt proceedings before this Court on the ground that by
restricting the eligibility for recruitment to workers who were engaged between 20
May 1985 and 4 March 1991, LIC was in breach of the directions of this Court in TN
Terminated Employees Association (supra). LIC also instituted review petitions
against the judgment in TN Terminated Employees Association (supra). The
review petitions and the contempt petitions were directed to be heard together. On 9
August 2016, the review sought by LIC was partially allowed22 by restricting the
award of back-wages to 50 per cent. The relevant part of the directions of this Court
is reproduced below:
“The temporary and badli workers of LIC, who are entitled for
regularisation as permanent workmen in terms of the
impugned judgment and order dated 18.03.2015 passed by
this Court, by applying the terms and conditions of the
modified award dated 26.08.1988 passed by Justice Jamdar,
are held to be entitled to full back wages as well. However,
keeping in mind the immense financial burden this would
cause to LIC, we deem it fit to modify the relief only with
regard to the back wages payable and therefore, we award
50% of the back wages with consequential benefits. The back
wages must be calculated on the basis of the gross salary of
the workmen, applicable as on the date as per the periodical
revisions of pay scale as stated supra. The computation
must be made from the date of entitlement of the
workmen involved in these cases, that is, their
absorption, till the age of superannuation, if any concerned
workman has attained the age of superannuation as per the
 22 (2016) 9 SCC 366
PART A
19
regulations of the review petitioner-LIC, as applicable to the
concerned workman.”
(emphasis supplied)
17 The curative petitions instituted by LIC challenging the judgment in review
were rejected on 22 February 2017. In March 2017, LIC sorted out and distributed
the applications which had been received in pursuance of its notice dated 21 July
2017 through its zonal offices for implementation of the decision in TN Terminated
Employees Association (supra). On 16 May 2017, LIC issued directions to the
Zonal Managers to implement the Srivastav Award and the order of this Court in the
review of TN Terminated Employees Association (supra). The circular prescribed
the following norms of eligibility for absorption:
(i) The worker should have been engaged between 20 May 1985 and 4 March
1991;
(ii) The name of the worker should figure in the list submitted by the Unions to
the CGIT in the industrial reference;
(iii)Class III workers ought to have been engaged for at least 85 days in two
calendar years while Class IV workers should have been engaged for at least
70 days in three calendar years;
(iv)The Union or the Association should have been an appellant before the
Supreme Court;
PART A
20
(v) The claimant worker should have submitted a biodata in pursuance of the
notice issued by the LIC on 21 July 2015 for recruitment in regularised
positions; and
(vi)The worker should have been engaged in accordance with the rules prevalent
in LIC.
18 In 2017, various divisions of LIC found 245 workmen to be eligible and they
were offered absorption by the Zonal Offices. This led to the initiation of contempt
proceedings23 by the Unions who sought the absorption of all temporary, part-time
and badli workers and daily wagers who were engaged after 20 May 1985 till date.
19 On 11 May 2018, a two-judge Bench of this Court24 directed the petitioning
Unions in the contempt proceedings to submit material documents to show the
engagement of the workers between 20 May 1985 and 4 March 1991. This Court
also directed LIC to nominate a senior official to scrutinise the documents and to
take a final decision in accordance with the prescribed conditions. Consequently,
LIC received about eighty-three thousand representations. Upon scrutiny, LIC found
seventy-six workers to be eligible for absorption. By an order dated 7 September
2018, a two-judge Bench of this Court25 directed the CGIT at New Delhi to decide
upon the eligibility of the claims made by the Unions, Associations and individual
workers within a period of three months. However, the Court found that there was no
 23 Contempt Petition (Civil) 1921 of 2017 in Civil Appeal 6950 of 2009 24 Ranbir Singh v. S K Roy, Chairman, LIC, Contempt Petition (Civil) No 1921 of 2017 in Civil Appeal No 6950 of
2009 (11 May 2018) 25 Ranbir Singh v. S K Roy, Chairman, LIC, Contempt Petition (Civil) No 1921 of 2017 in Civil Appeal No 6950 of
2009 (7 September 2018)
PART A
21
breach of the judgment dated 18 March 2015 in TN Terminated Employees
Association (supra). The order of this Court is extracted below:
“The crucial dispute in these proceedings is regarding the
beneficiaries of the Award dated 18.06.2001 in I.D. No.27 of
1991 of the Central Government Industrial Tribunal (CGIT),
New Delhi.
The Award has been finally upheld by this Court in the
judgment rendered in Tamil Nadu Terminated Full Time
Temporary LIC Employees Association v. Life Insurance
Corporation of India and Others, reported in (2015) 9 SCC 62.
Mr. K.K. Venugopal, learned Attorney General for India
appearing for the respondents/LIC, submits that for want of
documents/materials, the LIC is not in a position to verify as
to who are the actual beneficiaries of the Award. Learned
counsel appearing for the Union(s) and the individual
workers, however, would submit that despite producing the
records and despite availability of the original records with the
LIC, no positive decision is taken by it.
Faced with such a situation, we are of the view that the
CGIT, New Delhi should look into the matter with regard to
the claims made by the Union(s)/individual workmen,
regarding entitlement to the benefits under the Award and
submit a report to this Court. Accordingly, we direct the CGIT,
New Delhi to look into the claims made by the
Union(s)/individual Workmen and submit a report to this Court
within three months.
There is also a dispute raised by some of the respondents
that the benefit of Award should be made available to those
who have been engaged as Badli workers after 4.3.1991.
That is a matter for interpretation by this Court. For the time
being, CGIT, New Delhi would limit its enquiry only to the
claims of the Badli workers between 20.05.1989 and
04.03.1991, as already indicated by this Court in the order
dated 11.05.2018.
We do not find that it is a case of contempt. Therefore, the
contempt notices are discharged. However, the
applications/petitions be kept pending for the purpose of
necessary assistance to the Court.”
PART A
22
On 10 September 201826, the above order was modified by the same two-judge
Bench in the following terms:
“There is also a dispute raised by some of the respondents
that the benefit of Award should be made available to those
who have been engaged as Badli/Part-time/Temporary
workers after 4.3.1991. That is a matter for interpretation by
this Court. For the time being, CGIT, New Delhi would limit its
enquiry only to the claims of the Badli workers between
20.05.1985 and 04.03.1991, as already indicated by this
Court in the order dated 11.05.2018.”
(emphasis supplied)
20 Thereafter, on 12 December 201827, while dealing with the batch of contempt
petitions, a two-judge Bench of this Court directed the CGIT, in terms of this Court’s
previous directions dated 7 September 2018 in the same contempt proceedings, to
“look into the matter with regard to the claims made by the Union(s) individual
workmen”. The CGIT was directed to submit its report within four months, as
contemplated by the order dated 7 September 2018 and modified on 10 September
2018 in the contempt proceedings. Between October 2018 and 16 May 2018, the
CGIT issued notice to the Unions and individuals in the earlier industrial reference to
submit their claims. As many as 15,500 claims were submitted on behalf of the
Unions, Associations and individual workers claiming absorption and the benefit of
the Srivastav Award dated 18 June 2001. LIC submitted its responses before the
CGIT. The CGIT submitted its report on 31 May 201928 to this Court. The report of
 26 Ranbir Singh v. S K Roy, Chairman, LIC, Contempt Petition (Civil) No 1921 of 2017 in Civil Appeal No 6950 of
2009 (10 September 2018) 27 Ranbir Singh v. S K Roy, Chairman, LIC, Contempt Petition (Civil) No 1921 of 2017 in Civil Appeal No 6950 of
2009 (12 September 2018) 28 “Dogra Report”
PART B
23
the CGIT will be referred to as the Dogra Report, adopting the name of the presiding
officer.
B Dogra Report
21 Before the presiding officer of the CGIT, LIC set up the plea that only those
workers whose names were mentioned in the original certified list in the industrial
reference were entitled to the benefit of the Srivastav Award. LIC argued that this
was also the direction issued by the Supreme Court in the contempt proceedings
arising out of a review of TN Terminated Employees Association (supra) on 10
September 2018 and reiterated on 12 December 2018. On the other hand, the
Unions representing the workers, as well as the individual workers, claimed that they
were entitled to the benefit of the award irrespective of whether their claim found
place in the original list as certified before the CGIT in the industrial reference.
Dealing with this aspect, the Dogra Report concluded that though the order dated 10
September 2018 required the CGIT to verify the list which was already on the
record, this did not imply that only those workers whose names figured in the
certified list were entitled to absorption, to the exclusion of others. Paragraphs 24
and 25 of the Dogra Report have a bearing on the present proceedings and are
hence extracted below:
“24. To my mind, answer to this question has to be given
in the light of backdrop of the circumstances which
culminated into passing of the Award in ID case No.27 of
1991 which was admittedly upheld by Hon’ble Supreme Court
in its judgment dated 18/3/2015 reported as (2015) 9 SCC 62
– Tamil Nadu Terminated Full Time Temporary LIC
Employees Vs. Life Insurance Corporation of India. No doubt,
PART B
24
Hon’ble Apex Court in its order dated 10/9/2018 has observed
that this Tribunal will verify the list which is available on
record. But this does not mean that only such workmen
whose names are mentioned in the original/certified list
attached with the reference, are liable to be considered for
absorption, to the exclusion of other workmen. This Tribunal
has to keep in mind that contempt petitions were earlier filed
by members of Various Unions before Hon’ble Supreme
Court and LIC had also filed contempt petitions in High Court
of Delhi against Regional Labour Commissioner. During
pendency of said petition, E. Prabhavati and others were
impleaded as party at the instance of LIC vide order dated
25/9/2008. Thereafter, memo of parties was filed by LIC by
adding Terminated Full Time Temporary LIC Employees
Welfare Association as Respondent No.47. In view of this, the
contention of the LIC that members of E. Prabhavati & others
or Terminated Full Time Temporary LIC Employees Welfare
Association are not entitled to any relief, is not tenable, when
the said Association has been held to be necessary party.
There is not even a whisper in any of the judgment/order of
Hon’ble High Court or Hon’ble Supreme Court that only
workmen whose names are mentioned in the certified/original
list of CGIT Award are to be granted relief. An overall
examination of the order dated 10/9/2018 of the Hon’ble
Supreme Court shows that this Tribunal is required to verify
the list available on record but there is no direction to exclude
members of other Union/workmen inasmuch as Hon’ble the
Apex Court while considering the claims of contempt
petitioners has ordered this Tribunal to consider the claims of
those workers who were employed as Badli workers with the
Management of LIC during the period from 20/5/1985 to
4/3/1991 subject to fulfilment of number of days as mentioned
in the Award.
25. It is settled principle of law that while considering the
order/judgment of Constitutional Court, this Tribunal is
required to keep in mind entire spectrum of the orders as well
as background of the case. It is not proper to cull out a single
para or a sentence from the order/judgment so as to defeat
the very purpose of the order so passed by Hon’ble Supreme
Court. If the orders dated 11/5/2018, 7/9/2018 and 10/9/2018
are taken into consideration, it is crystal clear that claims of all
such workmen and Union/s who worked as Badli workers
during the period from 20/5/1985 to 4/3/1991 are required to
be considered by this Tribunal. Although I am in full
agreement with the submission made on behalf of the
PART B
25
Management/LIC that initial onus is always upon the
workmen concerned to prove that they were in the
employment of the Management at the relevant time,
however this Tribunal cannot ignore the fact that UC has not
filed on record any document/record relating to employment
of various workmen rather has simply taken a plea that same
being old record is not traceable.”
22 The Dogra Report noted that LIC had admitted that 321 workers were found
to be eligible for absorption in terms of the Srivastav Award. The report found fault
with LIC for making contradictory claims that 321 workers were eligible for
absorption when the records of workers were allegedly old and not traceable. The
Dogra Report drew an adverse inference against LIC for having failed to maintain
the records in pursuance of the burden cast upon it by Section 25-D of the ID Act,
particularly when the reference was pending since 1991. Paragraph 29 of the report
is extracted below:
“29) During the course of arguments as well as in the reply
filed on behalf of the Management/LIC, it is clear that
Management has admitted that till date 321 Nos. of
employees were found to be eligible in terms of the Award
and they were considered eligible for absorption. It is not
understandable to this Tribunal as to what were the basis for
the Management/LIC for coming to the conclusion that only
321 Nos. of workmen/employees were found to be eligible
and covered by the Award of CGIT in ID case No.27/1991,
when the Management has come up with a plea that record
relating to the workmen being old record is not traceable. It is
worthwhile to mention here that Section 25-D of the ID Act
specifically provides that it is the duty of every Employer to
maintain a muster roll and to provide for the making of entries
therein by the workmen who may present themselves for
work at the establishment. This Tribunal has to keep in mind
a vital fact that since the reference bearing ID No.27/1991 is
pending before various Courts since 1991, the
Management/LIC was/is required to keep the record in safe
custody when the case of such a huge magnitude was
PART B
26
pending before the Courts. In such circumstances, this
Tribunal is constrained to draw adverse inference against the
management.”
23 Based on the above hypothesis, the report proceeded to decide “prima facie”
the claims of the Unions and individual workers. While taking up the claims made by
the All India Life Insurance Employees Association and its affiliate, Life Insurance
Employees Association, Delhi, the report notes that 6998 claims had been filed (as
contained in Annexure A). Upon scrutiny, LIC drew the attention of the CGIT to the
fact that 3592 duplicate entries were found in the claims which were submitted (as
contained in Annexure A-1). Noting that the “Unions have not seriously disputed the
same”, the Dogra Report concludes that “such claimants are to be given benefit of
absorption only once”. The Dogra Report also notes that workers who had started
working beyond the cut-off date of 4 March 1991 would not be covered in the
enquiry. This observation in the Dogra Report was in view of the order of this Court
in the contempt proceedings arising out of the review of TN Terminated Employees
Association (supra) on 7 September 2018, which had specifically observed that
whether the benefit of the Srivastav Award should be given to those who had been
engaged as badli workers after 4 March 1991 was a matter for interpretation by this
Court. Hence, for the time being, CGIT had been directed to limit its enquiry only to
the claims for the period between 20 May 1985 and 4 March 1991 (as contained in
Annexure A-2). In this context, the Dogra Report held that those workers who had
commenced work after 4 March 1991 would not be covered by its enquiry.
PART B
27
24 The Dogra Report accordingly found the following workers to be entitled to
absorption:
a) The All India Insurance Employees Association Calcutta and Western Zone
Insurance Employees Association had filed a claim on behalf of 3337 workers
as part of the list contained in Annexure B. LIC argued that in this list of 3337
workers, 3332 workers did not find mention in the original certified list. The
Dogra Report perused the documents and found that all 3337 workers were
entitled to the benefit of absorption;
b) All India LIC Employees Association had filed claims on behalf of 97 workers
as a list contained in Annexure C. The Dogra Report found that all 97 workers
(except one who commenced work post 4 March 1991) were entitled to
absorption and LIC’s argument of fabrication of documents was baseless
when considered against the general practice of the Branch Managers at LIC;
c) National Organization of Insurance Workers filed a claim on behalf of workers
as a part of Annexure D. The Dogra Report found that all 401 workers in
accordance with Annexure D were eligible for absorption;
d) The All India National Life Insurance Federation Bombay filed two claims on
behalf of 1674 workers of the Nagpur Association (Annexure E) and 371
workers of the Hyderabad Association (Annexure F). The Nagpur Association
conceded that approximately 84 entries were blank, and 38 workers who had
worked after 4 March 1991 and three who worked prior to 1 January 1982
would not be entitled to any benefit. Thus, the 1590 remaining workers of the
PART B
28
Nagpur Association were found to eligible for absorption (contained in
Annexure E-1). The legal heirs of two deceased workers were held to be
entitled to monetary benefit in lieu of service. As regards the 371 workers of
the Hyderabad Association, the Dogra Report excludes those who had either
worked prior to 20 May 1985 or after 4 March 1991 and those eligible for
absorption were detailed out in Annexure F-1;
e) The Akhil Bhartiya Jivan Nigam filed claims on behalf of 890 workers as a part
of a list contained in Annexure G. It was admitted that of the 890 workers, 692
were engaged after 4 March 1991, there were 8 repeat entries and 2 workers
were engaged prior to 1985. Consequently, after carrying out the exclusions,
Annexure G-1 represented the list of eligible workers identified by the Dogra
Report for absorption;
f) The Tamil Nadu Terminated Full Time Temporary LIC Employees Welfare
Association filed claims on behalf of 376 workers in Annexure H. After
excluding those who had worked prior to or after the cut-off date, a list of
eligible employees was tabulated by the Dogra Report in Annexure H-1.
Workers who had reached the age of superannuation were held entitled to
receive all consequential benefits from LIC; and
g) Annexure I contained the names of a group of workers, described as the “EPrabhavati workmen”
29 containing 1333 workers. After excluding those who
had worked less than the requisite number of days for absorption and those
who had been engaged after 4 March 1991, the Dogra Report found the
 29 Interchangeably referred as “E Prabavathy”
PART B
29
remaining workers to be eligible for absorption and their claims were
tabulated in Annexure I (A). The specific case of the E Prabhavati group of
workers will be dealt with in the course of the present judgment. At this stage,
it is be material to note that LIC had contended that this batch of workers had
been specifically excluded by paragraph 75 of the Srivastav Award.
Notwithstanding this, the Dogra Report has held that this batch of workers
would also be entitled to absorption.
25 Apart from the persons named in the annexures mentioned above, the Dogra
Report has concluded that the following claims by the Union for absorption would
have to be allowed:
(i) Annexure J filed on behalf of 36 workers by the LIC Workers Union Kanpur –
where 35 workers were allowed absorption (except 1 worker recruited after
the cut-off date);
(ii) Annexure K filed on behalf of 17 workers by the LIC Workers Union, Gujarat
Unit – where 4 out of the 17 workers were held eligible;
(iii)Annexure L filed on behalf of 119 workers from the Jodhpur Division of LIC –
where all were held eligible for absorption (while it was noted that 1 worker’s
name appeared twice);
(iv)Annexure M – 22 workers were held entitled to absorption;
(v) Annexure N – 2 workers out of the 54 were held entitled to absorption since
only these two worked during the relevant period;
PART C
30
(vi) Annexure O – 1 out of 9 workers was held entitled to absorption, since the
others had been employed after the cut-off date of 4 March 1991;
(vii) Annexure P – 4 workers were held entitled to absorption;
(viii) Annexure Q – workers in this list were held not entitled to the benefit of
absorption as they had worked after the cut-off date of 4 March 1991; and
(ix)Apart from the above annexures, the Dogra Report scrutinized the claim of
several individual workers and determined whether they were entitled to
absorption.
C LIC’s objections to the Dogra Report
26 Broadly speaking, LIC has urged the following objections to the Dogra Report:
(i) The CGIT was not entrusted with the task of adjudication but of verification;
(ii) The orders passed by this court in the contempt proceedings arising out of the
review of the decision in TN Terminated Employees Association (supra) on
11 May 2018, 7 September 2018 and 10 September 2018 indicate that:
(a) In the course of verification, CGIT was not entitled to travel beyond the
Srivastav Award dated 18 June 2001;
(b) The CGIT had to verify only those claims where the workers were
engaged between 20 May 1985 and 4 March 1991; and
(c) The verification by CGIT was to be confined only to those badli, temporary
and part-time workers whose names were contained in the original
PART C
31
certified list in the reference leading to the Srivastav Award dated 18 June
2001;
(iii)The CGIT was duty-bound to verify only the documents produced by LIC to
determine whether the workers were working during the specified period. The
Dogra Report has found that almost all the names of workers submitted by
the Union were eligible without due verification;
(iv)A total of 15,465 claims were submitted, which include:
(a) Persons who were engaged beyond the stipulated period between 20 May
1985 and 4 March 1991;
(b) Persons whose names were not in the certified list before the CGIT in the
industrial reference; and
(c) Persons from the E Prabhavati group who were not covered by the
Srivastav Award, as expressly set out in paragraph 75 of the award;
(v) During the course of the verification by LIC, it was found that the
documents/material produced by several workers were fabricated and there
was a duplication of names; and
(vi)Though paragraph 75 of the Srivastav Award had categorically held that the
group of workers described as the “E Prabhavati” group were not entitled to
relief, the Dogra Report held them to be entitled for absorption. LIC has also
submitted objections to the certification which has been carried out in respect
of certain workers whose names are set out in the annexures to the Dogra
Report.
PART D
32
27 At this stage, it would be material to note that the original certified list of
workers in the reference contained the names of 4024 workers. According to LIC, if
the certification exercise carried out in the Dogra Report were to be accepted, about
11,780 workers would be entitled to absorption.
D The E Prabavathy Group
28 The Srivastav Award dated 18 June 2001 details the history pertaining to this
group of workers. Paragraphs 19-20 and 75 of the Award are extracted below:
“19. Thereafter the employees employed as temporary,
badli and part time after 20th May 1985 raised demand for
their absorption regularising too in the regular service. When
their demands were not accepted by the corporation several
writ petitions in this respect were filed before the Hon’ble High
Court of Madras. These writ petitions were filed before the
Hon’ble High Court of Madras between the years 1989 to
1991. The writ petition No.10367/89 filed was between the
terminated full time temporary LIC Welfare Association and
Senior Divisional Manager, LIC, Khanjawar. This writ petition
alongwith other writ petitions total 18 writ petitions were listed
for hearing before the full bench of Hon’ble High Court of
Madras. After hearing the parties of all the writ petitions the
Hon’ble High Court of Madras gave judgment which is
reported as 1993(1) LLJ 1030 between terminated full
temporary employees welfare association and Senior
Divisional Manager, LIC, Khanjawar. All the writ petitions
were dismissed by the Hon’ble High Court of Madras.
20. Parties had then preferred civil appeal before the
Hon’ble Supreme Court of India against judgment of the
Hon’ble High Court of Madras. These civil appeals were
numbered as SLP (C) 10393 to 10413/92 E. Prabhawati and
others Vs. LIC of India and others. It appears that in the said
civil appeal on the directions of the Hon’ble Supreme Court
Corporation had framed a scheme for the regularization of the
employees who were granted ad hoc appointments for 85
days at intervals from time to time was placed before the
PART D
33
Hon’ble Supreme Court. After hearing the parties by means of
interim order dated 23-10-92 found the scheme as
reasonable and was approved to the existence of the scheme
contained in clauses (a) and (d) of paragraph 1 and the
corporation was directed to proceed to regularise the
employees eligible in accordance with the scheme. The
clauses of (a) and (d) of the scheme have been reproduced in
the order by the Hon’ble Supreme Court of India. With the
aforesaid direction all the civil appeals were disposed of by
the Hon’ble Supreme Court.
[…]
75. Now as regard the binding effect of the order dated 23-
10-92 passed by Hon’ble Supreme Court of India in SLP No.
10393-10411/92 E. Prabhawathy and others Vs. Life
Insurance Corporation of India and another confirming the
scheme of absorption/regularisation as argued on behalf of the
corporation in my view can be well accepted. The order
passed I find is between the same parties. E. Prabhawathy
and other is the party in this proceeding being impleaded at
the subsequent stage of the proceeding. Statement of claim
has been filed in the present case by the aforesaid workmen.
The said order dated 23-10-92 of Hon’ble Supreme Court is
thus between same parties of the case and in view of the
circumstances. I find that workmen has no ground to challenge
the legality of the said order dated 23.10.92. The conditions of
the workmen made in this regard are not accepted.”
29 At this stage, it would be material to note that on 23 October 1992, a threejudge Bench of this Court specifically dealt with the above group of workmen in E
Prabavathy (supra). The judgment of this Court is extracted below in its entirety:
“ORDER
Special Leave granted.
In State of Haryana & Ors. etc. etc. v. Piara Singh & Ors. etc.
etc., (JT 1992(5) S.C. 179), this court indicated how
regularization of adhoc/temporary employees in Government
and Public Sector Undertakings should be effected. While
PART D
34
laying down the guidelines in this behalf, this court observe in
paragraph 43 as under:-
"The normal rule, of course, is regular
recruitment through the prescribed agency
but exigencies of administration may
sometimes call for an adhoc or temporary
appointment to be made. In such a situation,
effort should always be to replace such an
adhoc/temporary employee by a regularly
selected employee as early as possible.
Such a temporary employee may also
compete along with others for such regular
selection/appointment. If he gets selected,
well and good, but if he does not, he must
give way to the regularly selected candidate.
The appointment of the regularly selected
candidate cannot be withheld or kept in
abeyance for the sake of such an
adhoc/temporary employee."
The LIC was asked to work out a scheme for the purpose of
regularization of employees who were granted adhoc
appointments for 85 days at intervals from time to time. The
learned counsel for the LIC has placed before us a Scheme
for regularization of such adhoc employees. We have given
our anxious consideration to the Scheme proposed by the LIC
and have also heard both Mr. Ramamurthy and Mr. Salve at
length and we are of the opinion that the Scheme proposed
by LIC is a reasonable one and commands acceptance, save
and except the fact that the recruitment scheduled for
November, 1992 will be postponed by not less than six weeks
to enable the eligible adhoc employees to compete with
others for selection at the said recruitment. We are of the
opinion that the relaxation granted to these adhoc employees
for having worked with the LIC in the past in the matter of age
and qualification suffices. The further provision that if such an
adhoc employee has worked between 20th May, 1985 and till
date for 85 days in any two consecutive calendar years, is a
reasonable stipulation for eligibility for regularization. We are
of the opinion, the scheme is in consonance with the
guidelines which we have laid down in paragraphs 43 to 49 of
Piara Singh's judgment. Mr. Salve, the learned counsel for the
LIC, also informed us that in regard to future adhoc
appointments/regularization the LIC is in the process of
making a scheme consistent with the guidelines laid down in
PART D
35
Piara Singh's case so that this device of employment for 85
days which has not been approved may not be resorted to in
future. The Scheme contained in Clauses (a) to (d) of
paragraph 1, which is as under, is approved subject to the
postponement of the recruitment scheduled in November,
1992 by at least six weeks and the LIC will proceed to
regularize the employees eligible under the Scheme;
(a) All those temporary employees who have worked
for 85 days in any two consecutive calendar years
with the Life Insurance Corporation between 20th
May, 1985 uptill date and who confirmed to the
required eligibility criteria for regular recruitment on
the dates of their initial temporary, appointment will be
permitted to compete for the next regular recruitment
to be made by the Life Insurance Corporation after
the regular recruitment for these posts currently
scheduled for November, 1992.
(b) These candidates will be considered on their
merits with all other candidates who may apply for
such appointments, including those from the open
market.
(c) These candidates will be given an age relaxation
for applying for regular recruitment provided that they
were eligible on the date of their first temporary
appointment for securing regular appointment with the
Life Insurance Corporation.
(d) If these candidates are otherwise eligible, they can
apply for regular recruitment in the normal course.
This regularization will, in the circumstances, be by selection
for appointment. We make the above clauses of the Scheme
as part of our order.
Mr. Ramamurthy, the learned counsel for the petitioners,
further submitted that certain questions of law in regard to the
interpretation of section 84 of the LIC Act, 1956, as amended
by the LIC Amendment Act, 1981, and Section 2(oo) (bb) of
the Industrial Disputes Act, 1947, arise for consideration in
the present case in view of the judgment of the Madras High
Court. We may state that we express no opinion on the said
questions of law as they do not survive in view of the scheme
PART D
36
which LIC has worked out and which we have approved. It is
not necessary for us to go into those questions and we leave
them open for decision in an appropriate case in future.
The Civil Appeals will stand disposed of accordingly with no
order as to costs.”
30 The above order of the three-judge Bench in E Prabavathy (supra) indicates
that LIC had been directed by the Court to work out a scheme for the purpose of
regularising workers who were granted ad hoc appointment for a period of 85 days
from time to time. A scheme was prepared by LIC. The three-judge Bench had given
“its anxious consideration to the scheme proposed by the LIC” and having heard
both counsel for the workers and for LIC, held that it was “of the opinion that the
scheme proposed by LIC is reasonable one and commands acceptance”. The only
modification was a postponing of the recruitment which was scheduled on 1
November 1992 to allow eligible ad hoc workers to compete with others for selection
at the recruitment. This Court affirmed the relaxation of age and qualifications
granted by the scheme to eligible ad hoc workers who had worked between 20 May
1985 “till date” in any two calendar years. This Court accepted the scheme which
was proposed by LIC, subject to the modification noted above. This Court held that
regularisation would be by selection for appointment. The clauses of the scheme
were incorporated as a part of the order dated 23 October 1992 in E Prabavathy
(supra). In this backdrop, paragraph 75 of the Srivastav Award specifically excluded
the claims of the E Prabavathy workers who were governed by the order of this
Court dated 23 October 1992 in E Prabavathy (supra). The grievance of the LIC is
PART E
37
that despite this, the Dogra Report concludes that this group of workers would be
eligible for absorption in terms of the Srivastav Award.
E Sequel to E Prabavathy
31 Following the order of this Court dated 23 October 1992 in E Prabavathy
(supra), LIC framed the Life Insurance Corporation of India (Employment of
Temporary Staff) Instructions 1993. A contempt petition was moved before this
Court alleging that the scheme which was notified by LIC on 28 June 1993 was not
in accordance with the order in E Prabhavathy (supra). The contempt petition was
dismissed by this Court on 12 July 1993.
32 In 1998, a batch of writ petitions was filed in the High Court of Andhra
Pradesh seeking the relief of absorption on a permanent basis. Among the petitions
was a petition instituted by G Sudhakar and others. A Single Judge of the High
Court of Andhra Pradesh dismissed the petition, placing reliance on the decision in
E Prabavathy (supra). On 3 November 1998, the Division Bench of the High Court
directed LIC to frame a scheme for regularisation. LIC preferred a Special Leave
Petition against the judgment of the Division Bench in G Sudhakar (supra) which
was allowed by this Court30 on 22 November 2001. A two-judge Bench of this Court
held in G Sudhakar (supra) that the scheme approved in E Prabavathy (supra)
shall govern the absorption of all ad hoc workers in the country. This Court’s order
dated 22 November 2001 in G Sudhakar (supra) is extracted below:
 30 Civil Appeal No 2104 of 2000
PART E
38
“This appeal is by the Life Insurance Corporation of India (for
short “the Corporation”) against the Division Bench Judgment
of the Andhra Pradesh High Court. The Respondents filed a
Writ Petition praying for a mandamus to the corporation for
their absorption on permanent basis which stood dismissed.
On an appeal being carried, the Division Bench of the High
Court disposed of the appeal with a direction to the
corporation to frame a scheme for regularisation of the
employees and regularise their services in accordance with
such scheme. It is this direction of the High Court which is the
subject matter of challenge in this Appeal.
Mr. Salve, the learned Solicitor General appearing for the
Corporation stated that, in fact, in the case of E. Prabhavathy
& Ors. v. The Life Insurance Corporation of India & Anr. (Civil
Appeals arising out of SLPs Nos. 1039-10413/1992), this
Court was in seisin of a similar problem and during the
hearing of that appeal, a tentative scheme was produced
before this Court and the Court framed the terms of those
schemes as a part of the order and disposed of the appeal in
terms of the said scheme on 23rd October, 1992. The four
clauses of the said scheme which formed a part of the order
are quoted hereinbelow in extenso :-
“Scheme :
(a) All those temporary employees who have worked for 85
days in any two consecutive calendar years with the Life
Insurance Corporation between 20th May, 1985 uptill date
and who conformed to the required eligibility criteria for
regular recruitment on the dates of their initial temporary
appointment will be permitted to compete for the next regular
recruitment to be made by the Life Insurance Corporation
after the regular recruitment for these posts currently
scheduled for November, 1992;
(b) These candidates will be considered on their merits with
all other candidates who may apply for such appointments,
including those from the open market.
(c) These candidates will be given an age relaxation for
applying for regular recruitment provided that they were
eligible on the date of their first temporary appointment for
securing regular appointment with the Life Insurance
Corporation;
(d) If these candidates are otherwise eligible, they can apply
for regular recruitment in the normal course.
PART E
39
According to the learned Solicitor General, since a scheme is
in existence, it is no longer necessary to evolve a fresh
scheme for these employees who were the parties before the
Andhra Pradesh High Court. He also stated that in the
meantime, a set of instructions have been framed called the
“Life Insurance Corporation of India (Employment of
Temporary Staff) Instructions, 1993” which takes care of such
employees who were continuing for a fairly long period
without being regularised.
Mr. Krishnamurthy, the learned Senior Counsel, on the other
hand, contended that the aforesaid instructions will not
govern the case of the employees who were there before the
High Court, as they were the appointees between 1986 and
1993. He further contended that a similar matter, in the case
of The Management of the LIC of India v. Their Workmen
(C.A. Nos. 1790/89) a Bench of this Court has disposed of
with a direction to consider the case of regularisation
considering the suitability at a lesser standard by its judgment
dated 7th February, 1996 and, therefore, there is no infirmity
with the impugned direction of the High Court.
Having examined the judgment dated 7th February, 1996 of
this Court in C.A. Nos. 1790/89, we find that the earlier 3
judge bench decision dated 23rd October, 1992 has not been
noticed. The aforesaid three-judge bench decision
unequivocally makes the provisions of the scheme as a part
of the order. Necessarily, therefore, the case of regularisation
of the employees of the corporation could be dealt with in
accordance with the said scheme and it would not be
necessary to evolve a fresh scheme for a group of
employees. Mr. Krishnamurthy further contended that the E.
Prabhavathy’s case (supra) relates to the employees of Tamil
Nadu division. But, it is not disputed that they are the
employees of the Corporation. If the Corporation has evolved
a scheme assuming for the Tamil Nadu division, then the
same could be equally applicable to the employees of all
Divisions in the country. That being the position, the scheme
which has been approved and formed a part of the order of
this Court dated 23-10-1992 should govern the case of these
respondents who were writ petitioners before the High Court
of Andhra Pradesh
Needless to mention, in the earlier decision of this Court
dated 23-10-1992 this Court has not limited the applicability of
PART E
40
the scheme only to the employees of the Tamil Nadu Division.
In the aforesaid circumstances, the High Court of Andhra
Pradesh was not justified in issuing the impugned direction to
the Corporation to evolve a new set of scheme to govern the
case of the employees who had filed writ petitions in the High
Court. We, therefore, set aside the impugned direction of the
Division Bench of the High Court and substitute the same with
the direction that the case of regularisation of these
respondents shall be considered in accordance with the
scheme which formed a part of the order of this Court dated
23-10-1992, if not already considered. This appeal
accordingly stands disposed of.”
33 The above judgment of this Court in G Sudhakar (supra) lays down that:
(i) The order dated 23 October 1992 in E Prabavathy (supra) made the scheme
as a part of its order. Necessarily, the case for the regularisation of the
workers of LIC would be dealt with in accordance with the scheme. Hence, it
was not necessary to evolve a fresh scheme for a different group of workers;
(ii) Though E Prabavathy (supra) dealt with workers of the Tamil Nadu Division,
the scheme which was evolved by LIC would equally be applicable to workers
of all divisions in the country;
(iii)The decision in E Prabavathy (supra) has not limited the applicability of the
scheme only to the workers of the Tamil Nadu division; and
(iv)The Division Bench of the High Court of Andhra Pradesh was not justified in
evolving a new scheme to govern the workers who had filed a Writ Petition
and its judgment accordingly stands set aside.
34 The decision of a two-judge Bench of this Court dated 7 February 1996 in LIC
v. Their Workmen (supra) arising out the Jamdar and Tulpule Awards has not
PART F
41
noticed the earlier decision dated 23 October 1992 of a three-judge Bench in E
Prabavathy (supra). Subsequently, on 18 January 2011 in LIC v. D V Anil Kumar31,
a two-judge Bench of this Court disposed of the appeal by accepting the terms of the
scheme framed by LIC for the absorption of Class IV workers. The attention of this
Court has also been drawn to an order dated 20 October 2016 of this Court in
Hashmuddin v. LIC32 followed by an order dated 15 January 2020, which accepted
a scheme formulated by LIC for workers who had rendered service for more than
sixteen years.
F Submissions
35 On behalf of LIC, Mr ANS Nadkarni, Senior Counsel, made the following
submissions:
(i) As a consequence of the Dogra Report, LIC would be required to regularise
about 11,780 workers who claim to have worked for a limited number of days.
No verification of these claims has been done either by the LIC or by the
CGIT in the Dogra Report. This would amount to an illegal backdoor entry,
which would be contrary to the statutory regulations framed by the LIC.
Further, LIC would also face the issue of a lack of sanctioned posts for these
workers;
 31 Civil Appeal Nos 953-968 of 2005 (“LIC v. D V Anil Kumar”) 32 Civil Appeal No 2268 of 2011
PART F
42
(ii) The Tulpule Award dated 17 April 1986 and the Jamdar Award dated 26
August 1988 directed the regularisation of persons working between 1
January 1982 and 20 May 1985 who: (a) had worked as Class IV workers for
a minimum period of 70 days in any three calendar years; or (b) had worked
as Class III workers for a minimum period of 85 days in any two calendar
years. However, these awards were substituted by a settlement which was
arrived at in the civil appeals before this Court in LIC v. Their Workmen
(supra), which were finally adjudicated upon by an order dated 7 February
1996;
(iii)Both the Tulpule and Jamdar Awards directed regularisation and absorption
without verifying the existence of sanctioned posts. During the pendency of
the litigation, LIC was injuncted from making fresh recruitment till the awards
were pronounced. As a result of the interim orders dated 15 January 1986
and 29 June 1987, LIC could not pursue an open, competitive and
transparent process for selection on the basis of an advertisement followed by
a written examination and interview. The last recruitment process took place
in 1984, and till 1993 there was no fresh recruitment. This necessitated the
making of temporary appointments between 1985 and 1991 to operate LIC’s
2048 branches across India;
(iv)The Srivastav Award dated 18 June 2001 arose out of a reference dated 4
March 1991, which required the tribunal to adjudicate whether LIC’s action of
not absorbing badli/temporary/part-time workers employed after 20 May 1985
was justified. The award directed the absorption of “the concerned workmen”,
PART F
43
i.e., those employed after 20 May 1985 (and thus not covered by the Tulpule
and Jamdar Awards) who had worked as Class III workers for a minimum of
85 days in two calendar years or who had worked as Class IV workers for a
minimum of 70 days in three calendar years. The award directed that if
regular vacancies did not exist to accommodate these persons,
supernumerary posts would have to be created by LIC. Such a direction
would be contrary to the principles which have been enunciated in the
decision of this Court in ONGC v. Krishan Gopal33. LIC as a statutory
corporation is governed by its regulations, and no appointment beyond the
vacancies in sanctioned posts can be made;
(v) The LIC Act was amended by Act 1 of 1981. The amendment to Section
48(2A) stipulates that the regulations which have been framed prior to 1981
are deemed to be rules framed under Section 48(2)(cc). Further, Section
48(2C) stipulates that the rules framed under Section 48(2)(cc) would override
the provisions of the ID Act. The provision has been held to be constitutionally
valid by this Court in M. Venugopal v. LIC34;
(vi)Though LIC is bound by the judgment of this Court in TN Terminated
Employees Association (supra) which has restored the Srivastav Award
(subject to its modification in the review petition in regards the quantum of
back wages), it is also bound by:
 33 2020 SCC OnLine SC 150 34 (1994) 2 SCC 323 (“M. Venugopal”)
PART F
44
(a) The order dated 23 October 1992 of a three-judge Bench of this Court in E
Prabavathy (supra) which upheld the scheme formed by LIC for
absorption of ad hoc workers;
(b) The order dated 22 November 2001 of a two-judge Bench of this Court in
G Sudhakar (supra) which held that the scheme which was accepted in E
Prabavathy (supra) would not be limited only to the workers in that case
but would be applicable to all the workers of LIC in all its divisions across
India; and
(c) The settlement which substituted the Tulpule and Jamdar Awards, which
was recorded by this Court while disposing of the civil appeals by its final
order dated 7 February 1996 in LIC v. Their Workmen (supra);
(vii) On 16 May 2017, LIC issued instructions under Regulation 4 of its Staff
Regulations to all Zonal Managers to implement the Srivastav Award and this
Court’s orders. Consequently, 245 workers were offered absorption after
being found eligible;
(viii) In terms of the order of this Court dated 18 January 2011 in LIC of India v.
D V Anil Kumar (supra), LIC framed a scheme to regularise Class IV workers
who were engaged for 5 years or more and consequently, 4770 persons were
appointed on regular posts;
(v) Following the order of this Court dated 11 May 2018 in the contempt
proceedings35, LIC received 8300 representations from individuals claiming to
be covered by the Srivastav Award, which were then scrutinised by a senior
 35 Contempt Petition (Civil) No 1921 of 2017 in Civil Appeal No 6950 of 2009
PART F
45
officer. Subsequently, 76 claimants were found to be eligible for absorption in
addition to the 245 individual claimants who had been absorbed earlier;
(vi)By the order of this Court dated 7 September 2018 in the contempt
proceedings arising out a review of TN Terminated Employees Association
(supra), it was expressly made clear that:
(a) The question whether the benefit of the Srivastav Award should be made
available to those who were engaged as badli and temporary workers after
4 March 1991 is a matter for interpretation before this Court;
(b) The CGIT would limit its inquiry only to the claims of the workers who were
employed between 20 May 1985 and 4 March 1991; and
(c) No case in contempt had been established;
(vii) The above position is further clarified by this Court’s order dated 10
September 2018 in the contempt proceedings arising out the review of TN
Terminated Employees Association (supra), in terms of which CGIT was
directed to verify the list which was available on its record. Thus, the CGIT
was required to scrutinise the applications claiming the benefit of the award
against the list of workers who were before the CGIT in the Srivastav Award.
Hence, LIC scrutinized the claims of only those who were part of the certified
list before the CGIT in the Srivastav Award and had worked between 20 May
1985 and 4 March 1991;
(viii) All India Life Insurance Employees Association and Life Insurance
Employees Association (R6 and R2 in the Dogra Report), All India Insurance
Employees Association and Western Zone Insurance Employees Association
PART F
46
(R3 and R4 in the Dogra Report), National Organisation of Insurance Workers
(R7 in the Dogra Report) and All India National Life Insurance Employees
Federation (R9 in the Dogra Report) were all signatories to the compromise
which substituted the Tulpule and Jamdar Awards and was noted in this
Court’s interim order dated 1 March 1989 in LIC v. Their Workmen (supra).
Further, by the order of this Court dated 7 February 1996 in LIC v. Their
Workmen (supra), the Karamchari Sangh (R10 in the Dogra Report) was also
directed to follow the terms of compromise. Hence, these Unions and
Associations who had entered into the compromise substituting the Tulpule
and Jamdar Awards are governed by its terms;
(ix)The scrutiny which was envisaged by the order of this Court required the
CGIT to: firstly, check the presence of the names of the claimants in the CGIT
list in the Srivastav Award; and secondly, conduct a verification of documents
such as appointment letters, extension letters and relieving letters to
scrutinise whether the claimants were actually employed for 70/85 days for
three/two years respectively. Based on this scrutiny, the 321 eligible workers
(245+76) who were beneficiaries of the Srivastav Award have already been
absorbed, and any other claims by the workers individually or through the ten
Unions are not maintainable;
(x) The Dogra Report has erroneously held that the compromise which was
arrived at between the parties was in addition to the rights declared in the
Tulpule and Jamdar Awards. To support its reasoning, the Report relies on
the findings of this Court at paragraph 39 to 41 of its judgment dated 18
PART F
47
March 2015 in TN Terminated Employees Association (supra). However,
those observations have only adverted to the interim order dated 1 March
1989 of this Court in LIC v. Their Workmen (supra), and not its final order
dated 7 February 1996;
(xi)Instead of carrying out the task of verification, the Dogra Report only takes a
prima facie view and has merely stated that the majority of the workers were
eligible for absorption without carrying out the process of verification;
(xii) Though the Unions have admitted that they do not possess either the
residential addresses or other particulars of the claimants situated in various
regions, the Dogra Report has found 1452 workmen to be eligible across the
country; and
(xiii) In summary, the Dogra Report is flawed because it:
(a) Does not consider the CGIT certified list of the Srivastav Award, as
directed in the order of this Court dated 10 September 2018;
(b) Ignores that it was not carrying out an adjudicatory function but only a
verification exercise;
(c) Initially states that the claimants who had joined after 4 March 1991 are
not being scrutinised, yet the final directions consider many such claims;
and
(d) Ignores paragraph 75 of the Srivastav Award and gives benefit to persons
who are governed by the scheme accepted by this Court in E Prabavathy
(supra).
PART F
48
36 On behalf of the Unions, Associations and workers, arguments have been
addressed by Dr Manish Singhvi, Mr Pallav Sishodia, Mr R Singaravelan, Mr V
Prakash and Mr Salman Khurshid, Senior Counsel. In addition to the submissions of
Senior Counsel, we have heard Mr Nandakumar, Mr Rakesh Shukla and Mr
Shailesh Madiyal. In addition, Counsel appearing on behalf of the workers in various
Miscellaneous Applications have been furnished with an opportunity of being heard
in seriatim. The submissions which have been urged on behalf of the workers are
summarised below:
(i) The present proceedings in the Miscellaneous Applications pertain to the
implementation of the Srivastav Award dated 22 June 2001. The Srivastav
Award has been upheld in the decision of this Court in TN Terminated
Employees Association (supra);
(ii) The review petitions arising from the decision in TN Terminated Employees
Association (supra) were dismissed by the judgment in T N Terminated Full
Time Temporary LIC Employees Assn. v. LIC36 and the curative petition
was also dismissed on 22 February 2017. Thus, the Srivastav Award has
attained finality subject to the modification that the quantum of back-wages
has been reduced to fifty per cent. The doctrine of res judicata applies
between the parties and at this stage, it would not be open to set aside or
alter the contents of the award;
 36 (2016) 9 SCC 366
PART F
49
(iii)Though the contempt petitions were disposed of, the CGIT was directed to
look into the implementation of the Srivastav Award. The Dogra Report dated
31 May 2019 has been prepared by the CGIT in pursuance of the mandate of
this Court;
(iv) Four grounds have been advanced on behalf of LIC to assail the Dogra
report:
(a) No documents were produced to establish that the workers had worked for
85 days and 70 days across a period of two and three years respectively;
(b) The Dogra Report had to consider only the CGIT certified list which was
part of the reference proceedings;
(c) The Srivastav Award would not apply to workers who commenced work
after 4 March 1991; and
(d) The Dogra Report also permits the absorption of the workers governed by
the judgment of this Court in E Prabavathy (supra);
(v) In response to the above grounds, it is submitted that the Dogra Report has
correctly drawn an adverse inference against LIC for not producing the
records which were in their possession, while approving the lists. Further, the
report duly notes that a majority of the workers had produced documents,
which have been accepted after verification;
(vi)In the event, however, that this Court is inclined to remit the proceedings back
for proper verification of the workers who are covered by the Srivastav Award,
the following methodology should be adopted:
PART F
50
(a) LIC has now stated before this Court that its divisional offices are in
possession of the records. LIC must produce in the first instance the
records available with it for the purpose of verification; and
(b) The verification to be carried out under the directions of this Court should
not be confined to any particular document and the primary onus must lie
on LIC to show whether the workers have actually worked during the
relevant period;
(vii) The Srivastav Award did not only deal with the cases of workers who had
actually filed cases in the industrial reference. The award specifies that it
would apply to all workers, and consequently directed that an advertisement
be issued for that purpose. If the award was intended to be limited to the
CGIT certified list, there was no occasion to direct a verification to be carried
out by the CGIT since the certified list was already available with LIC. Hence,
the direction in the order of this Court dated 10 September 2018 in the
contempt proceedings arising out of the review of TN Terminated
Employees Association (supra), that the verification would be carried out of
the CGIT list, cannot be read out of context. Consistent with the principles of
collective bargaining under the ID Act, all workers who were beneficiaries of
the Srivastav Award should be granted absorption;
(viii) The plea that workers employed after 4 March 1991 are not entitled to relief
under the Srivastav Award is contrary to the provisions of Section 18(3)(d) of
the ID Act. The purpose of Section 18(3)(d) is to ensure that an award
governs not only those who are in service when it is made but to subsequent
PART F
51
workers as well. In any event, at least those workers who were in employment
on 18 June 2001, when the award was made, should be granted relief;
(ix)The applicability of the orders of this Court in E Prabavathy (supra) and G
Sudhakar (supra) has been considered in the judgment of this Court in TN
Terminated Employees Association (supra), and that interpretation has
attained finality. Hence, those orders ought not to become the basis to reopen
the present proceedings;
(x) As a matter of fact, the Dogra Report suffers from under-inclusion since the
claims of workers who were engaged after 4 March 1991 have not been
considered, though they may have applied in pursuance of the advertisement
issued by the LIC to implement the Srivastav Award;
(xi)The compromise which was arrived at before this Court, as noted in its orders
dated 1 March 1989 and 7 February 1996, indicates that it was confined to
persons who worked from 1 January 1982 to 20 May 1985. Hence, it has no
relevance to the Srivastav Award dated 18 June 2001, which relates to
persons who were engaged after 20 May 1985;
(xii) The terms of reference which resulted in the Srivastav Award related to the
employment of badli, temporary and part-time workers after 20 May 1985.
Consequently, there is no warrant for restricting the operation of the award to
the period up to 4 March 1991 (which was the date of reference). The benefit
of the award must enure not only to the workers who were engaged as
temporaries or badlis after 20 May 1985 till the date of reference but the same
principle must also apply to workers who have been engaged thereafter; and
PART G
52
(xiii) The judgment of this Court has directed the payment of fifty per cent backwages. For the period after the date of the Srivastav Award, full back-wages
should be granted to those who have been absorbed. Back-wages cannot be
granted only for the period of 70/85 days, and at the rates which were made
applicable to the badli workers.
37 The rival submissions would now fall for analysis.
G Prelude – Tulpule and Jamdar Awards, and their Aftermath
38 The Tulpule Award dated 17 April 1986 was made in the context of a
reference to the NIT pertaining to the absorption of badli/temporary/part-time
workers as regular employees of LIC. The award held that all workers who had
worked in any capacity, temporary, badli or part-time, between 1 January 1982 till 20
May 1985, should be considered as eligible for absorption provided that: (a) Class IV
workers ought to have worked for 70 days in any three calendar years; and (b) Class
III workers ought to have worked for 85 days in any two calendar years.
39 The Jamdar Award dated 26 August 1998 clarified the meaning of the Tulpule
Award dated 17 April 1986. The award discussed the object of the earlier reference,
and indicated that LIC had engaged badli/temporary/part-time workers on a largescale and restricted their employment to a particular number of days in order to
prevent them from gaining the status of permanency on the basis of the number of
days worked. Hence, it held that the object of the reference was to put an end to
PART G
53
such unfair legal practices, to regularise the employment of persons who would have
been ordinarily absorbed but for such practices and to reduce to a minimum the
disproportionately large contingent of such employees who had been deprived of
security of service. The Jamdar Award noted that the Tulpule Award did not
contemplate that in computing the number of work days only the days worked in
two/three consecutive calendars year should be taken into consideration. Further, it
noted that when the Tulpule Award spoke of “absorption”, it did not mean
“recruitment”.
40 The Tulpule and Jamdar Awards were the subject matter of a challenge
before this Court under Article 136 of the Constitution in LIC v. Their Workmen
(supra). On 1 March 1989, this Court while granting leave to appeal recorded that
eight out of the nine Unions, representing about 99 per cent of the workers, had
entered into a compromise with LIC. It was in this backdrop that, pending the
disposal of the civil appeals, this Court permitted LIC and these eight Unions to
implement the terms of compromise, without prejudice to the rights of the ninth
Union. The terms of compromise envisaged that it would operate in substitution of
the Tulpule and Jamdar Awards on the question of the regular employment of the
workers concerned in those references. The terms of the compromise adopted the
norm of employment for 85 days in any two years for Class III workers and
employment for 70 days in any three calendar years for Class IV workers between 1
January 1982 and 20 May 1985. Temporary, part-time and badli workers who had
made applications before a stipulated date were held eligible to be considered for
PART G
54
regular employment. The compromise envisaged that the selection of candidates
shall be made on the basis of qualifications, age, written test and interview, and also
having regard to the number of days worked. According to the compromise, initially
a list of selected candidates was to be drawn up, from which regular employment
would be offered in order of merit prospectively from the dates notified, as and when
vacancies in sanctioned posts for regular employment were filled up from time to
time. Further, as a result of the compromise, the process of recruitment for these
candidates would be subject to certain relaxations. Finally, it was envisaged that the
dispute in relation to the workers concerned, which had resulted in the Tulpule and
Jamdar Awards, would no longer survive, and the rights and obligations of the
parties in relation to regular employment would be governed only by the
compromise.
41 The compromise was ultimately adopted in the final order of this Court dated
7 February 1996 in LIC v. Their Workmen (supra), which disposed of the civil
appeals. In the order, this Court accepted the submission of LIC that since eight out
of nine Unions (representing an overwhelming majority of workmen) had accepted
the compromise, the ninth Union must also act on the basis of its terms and
conditions. The Court, however, directed that LIC shall exempt Class IV workers
(whom the ninth Union was representing) from a test and interview, if it had the
power to do so under the regulations and instructions governing their conditions of
service. In the alternative, if there was no such power, it directed that the test which
PART G
55
was prescribed for these workers should be of a lower standard than the test
prescribed in the two circulars mentioned in the compromise.
42 There is absolutely no manner of doubt that the compromise which was
arrived at by eight out of nine Unions indicated that the Tulpule and Jamdar Awards
would stand substituted by the terms of the compromise. The compromise clearly
stipulated that the workers who fulfilled the requisite days of work in Class III or, as
the case may be, Class IV posts would be eligible. As and when vacancies would
arise, they would be offered regular appointment.
43 Prior to the final order of this Court in the civil appeals arising from the Tulpule
and Jamdar Awards, the litigation in the E Prabavathy batch was settled by the order
dated 23 October 1992. In the order, the Court found that the scheme for absorption
which was propounded by LIC was reasonable. The scheme envisaged that all
temporary workers who had worked for 85 days in any two consecutive calendar
years with LIC between 20 May 1985 and 23 October 1992 and who conformed to
the required eligibility criteria for regular appointment on the date of their initial
appointment, would be permitted to compete at the next regular recruitment to be
made by LIC. These candidates would be considered on their merit as against the
other candidates who applied for these posts, including from the open market. They
would also be given an age relaxation while applying for a post, if they were eligible
for it on the date of their first temporary appointment. This scheme was approved,
subject to the postponement by at least six weeks of a recruitment scheduled for
November 1992, in order to enable all eligible ad hoc workers to compete with
PART G
56
others for selection at that recruitment. The decision in E Prabavathy (supra) was
evidently not noticed in this Court’s order dated 7 February 1996 in LIC v. Their
Workmen (supra).
44 The order of a two-judge Bench of this Court dated 22 November 2001 in G
Sudhakar (supra) noted that in E Prabavathy (supra), a Bench of three-judges had
embodied the clauses of the scheme as a part of their order. Hence, the order in G
Sudhakar (supra) expressly clarified that though the scheme before this Court in E
Prabavathy (supra) was evolved in relation to a case from the Tamil Nadu Division
of the LIC, it would be equally applicable to the workers of all divisions of LIC in the
country. Consequently, in G Sudhakar (supra), it was held that the scheme would
apply to workers who were before the High Court of Andhra Pradesh as well, and
there was no occasion for the High Court to direct that a new scheme should be
framed by LIC.
45 It is important to note that the orders of this Court dated 23 October 1992 (in
E Prabavathy (supra)) and 7 February 1996 (disposing the civil appeals challenging
the Tulpule and Jamdar Awards) pre-date the Srivastav Award dated 18 June 2001.
On the other hand, the order in G Sudhakar (supra), which was dated 22 November
2001, was evidently passed after the Srivastav Award.
PART H
57
H Srivastav Award and the Judgement of this Court
46 The reference before the tribunal leading up to the Srivastav Award was
made on 4 March 1991. The reference was in relation to the justification of LIC’s
non-absorption of persons recruited as temporary, badli and part-time workers after
20 May 1985. The Srivastav Award contains an observation that LIC was not guilty
of unfair labour practices by continuing persons recruited as temporary, badli and
part-time workers as non-regular employees. The above observation in the award
was in view of the submission of LIC (which was not refuted by the workers) that the
workers were continuing in their positions on the basis of injunction orders issued by
tribunals and the court, and due to the pressure of the Unions. However, the award
also noted that the terms of the reference did not encompass this aspect and the
tribunal was not recording a finding.
47 Paragraph 75 of the Srivastav Award referred to the order of this Court dated
23 October 1992 in E Prabavathy (supra) which governed the scheme of
absorption/regularisation for that batch of workers. It noted that the E Prabavathy
group of workers were impleaded to the proceedings leading to the award, and had
filed a statement of claim. However, the award concluded that since the order dated
23 October 1992 in E Prabavathy (supra) was between the same parties, the
legality of the order of this Court could not be challenged by the workers before the
tribunal. Hence, the contention of the workers in that regard was not accepted.
48 In paragraph 88, the Srivastav Award concluded:
PART H
58
“88. In view of the fact, I am of definite view that such type of
workmen belonging to temporary and part time categories in
class III and class IV service of corporation who were
employed after following the procedure and were allowed to
continue service beyond the qualifying period and were
eligible and suitable in every respect should be given
absorption in the service from date of the vacancy in the
service in which they could have been absorbed. It will also
apply to those such employees whose services were
terminated by the corporation”
The award finds that LIC was not justified in denying absorption to those
temporary/badli/part-time workers who were employed after 20 May 1985, and that
they should be given absorption on the terms and conditions which were stipulated
in the Tulpule and Jamdar Awards (which were in respect of workers employed
between 1 January 1982 to 20 May 1985). LIC was directed to take into
consideration their claim for absorption on the basis of their eligibility and suitability,
as dealt with in the Srivastav Award. Thus, all the badli, part-time and temporary
workers who have rendered the qualifying period of service and were suitable would
also have to be considered for absorption by LIC by publishing a notice in the
newspaper. The Srivastav Award directed that in case no regular vacancy was
available, supernumerary posts shall be created by LIC for the purpose of
absorption and that the case for absorption against existing vacancies would be
considered first, irrespective of regular recruitment.
49 The Srivastav Award was set aside by the Single Judge of the Delhi High
Court. The Division Bench affirmed the judgment of the Single Judge. Eventually,
PART H
59
the dispute travelled to and resulted in the decision of this Court in TN Terminated
Employees Association (supra).
50 The judgment in TN Terminated Employees Association (supra), dated 18
March 2015, arose from concurring judgments of a Single Judge and of the Division
Bench of the Delhi High Court by which the Srivastav Award had been set aside. In
appeal, the principal issue which came for consideration before this Court was:
“34.1. (i) Whether the setting aside of the award passed by
CGIT dated 18-6-2001 by the learned Single Judge by
placing reliance upon compromise reached between the
parties in SLP No. 14906 of 1988, which was filed against the
award of Justice Tulpule, which award was clarified and
affirmed by Justice SM Jamdar, legal and valid?”
The next issue, in relation to the workers’ claim for relief, was consequential in
nature. After noticing the interim order dated 1 March 1989 passed by this Court in
the proceedings arising out of the Tulpule and Jamdar Awards in LIC v. Their
Workmen (supra), Justice Gopala Gowda, speaking for the two-judge Bench,
observed:
“40. From the perusal of the above order of this Court
in LIC v. Workmen [ SLP (C) No. 14906 of 1988, order dated
1-3-1989 (SC)] , nowhere has it been stated in the terms of
the compromise between the parties that the award of Justice
R.D. Tulpule dated 17-4-1986 which was clarified upon
reference made by the Central Government under Section
36-A of the Act by Justice Jamdar, is either set aside by this
Court or substituted the compromise terms in the place of the
award except the order referred to supra passed in the above
SLP No. 14906 of 1988. In fact, on the other hand it is clearly
stated that the compromise terms are between the parties to
the said SLP and that it shall not prejudice the respective
rights and obligations in relation to the members of the other
PART H
60
union. Therefore, the effect of the award of Justice R.D.
Tulpule with regard to the direction given to the Corporation
regarding absorption of badli, temporary employees as
permanent employees has not been substituted by terms and
conditions of the compromise.”
In the above extract, the Court referred to the interim order of this Court dated 1
March 1989 in LIC v. Their Workmen (supra) by which, pending the disposal of the
appeals, eight out of the nine Unions who had entered into terms of compromise
with LIC were permitted to implement it as an interim measure, without prejudice to
the rights and contentions of the remaining Union which had not entered into a
compromise. Relying exclusively on the interim order of this Court, it was held:
“41. The award of Justice R.D. Tulpule dated 17-4-1986
reiterated by way of clarification in the award passed by
Justice Jamdar dated 26-8-1988, in the dispute subsequently
has been operative even after the compromise arrived at
between the parties to the compromise in LIC v. Workmen [
SLP (C) No. 14906 of 1988, order dated 1-3-1989 (SC)]
before this Court. Therefore, the contention of the learned
Senior Counsel on behalf of the Corporation that the said
awards are not in operation and that only the terms and
conditions of compromise and orders of this Court are binding
upon the workmen concerned in these appeals is both not
factually and legally correct. This abovesaid argument of the
learned Senior Counsel on behalf of the Corporation is not
tenable in view of the categorical statement made by this
Court in its orders passed in SLP referred to supra, wherein,
this Court has permitted the management and members of
the said 8 unions to implement the terms of compromise by
way of interim measure without any prejudice to the rights
and contentions of the members of other union who have not
entered into compromise with the management of the
Corporation. It is not the case of the Corporation in these
appeals either before CGIT or before the High Court or in
these proceedings the workmen concerned have also
accepted the said terms and conditions of the compromise
arrived at between the parties in SLP No. 14906 of 1988. This
Court in the order passed in the abovesaid SLP which is
PART H
61
extracted hereinabove has made it very clear that the said
compromise was entered into between unions therein, but it
does not prejudice the rights and contentions of the workmen
concerned whose disputes are in relation to their absorption
in their respective posts who were appointed after 20-5-1985.
Further, even if some of the workmen are bound under the
said compromise that arose out of SLP No. 14906 of 1988,
this in no way deters their right to raise an industrial dispute
and get the same adjudicated vide order of reference by the
appropriate Government to CGIT. The award of CGIT was
concluded after rightly examining the facts, circumstances of
the case and the legal principles laid down in the awards
passed by Justice Tulpule and Justice Jamdar. More
importantly CGIT award was passed after rightly appreciating
the points of dispute referred to it and on the merits of the
case.”
The interpretation of the interim order which has been placed by the Court emerges
from the following extract:
“46. Further, by a careful reading of the said order
in LIC v. Workmen [ SLP (C) No. 14906 of 1988, order dated
1-3-1989 (SC)] , it has been made clear that the awards
passed by NIT (by Justice Jamdar and Justice Tulpule) after
adjudicating the points of dispute in the industrial dispute
raised by similarly placed workmen is not disturbed by
substituting the terms and conditions of compromise between
the parties therein in SLP No. 14906 of 1988. Therefore, the
awards in relation to the absorption of the workmen as
permanent workmen in the Corporation have got statutory
force. This is what is stated by CGIT in its award dated 18-6-
2001 on the basis of pleadings and evidence on record, which
was erroneously set aside by the High Court by assigning
erroneous reasons which is sought to be justified by the
Senior Counsel on behalf of the Corporation by placing
reliance upon the orders and the Scheme framed in E.
Prabavathy [E. Prabavathy v. LIC, SLP (C) No. 10393 of
1992, order dated 23-10-1992 (SC)] and G. Sudhakar [ Civil
Appeal No. 2104 of 2000, order dated 22-11-2001 (SC)]
cases which Scheme has no application to the case of the
workmen concerned involved in these appeals referred to
supra.”
PART H
62
51 The Court proceeded to hold that both the award of Justice Tulpule, reiterated
by way of the clarificatory award of Justice Jamdar, are operative and they have not
been terminated by either of the parties as provided by Section 19(6) of the ID Act.
The Court held that the terms of compromise and the scheme formulated in E
Prabavathy (supra) and G Sudhakar (supra) do not result in the substitution of the
awards made by Justice Tulpule and Justice Jamdar. The Court held that the
Srivastav Award would have to be observed by LIC until it was replaced by another
settlement in relation to the service conditions of the workers under Section 12 read
with Section 18(3) of the ID Act or by another award following the termination of the
awards which are in operation. The judgment of this Court concluded that:
(i) The Tulpule and Jamdar Awards continue to remain operative;
(ii) The Awards do not stand substituted by the interim order of this court dated 1
March 1989 in LIC v. Their Workmen (supra);
(iii)The orders of this Court in E Prabavathy (supra) and G Sudhakar (supra)
would not stand in the way of an adjudication by the Industrial Tribunal; and
(iv)Unless the awards are substituted either by another award or settlement, the
Tulpule and Jamdar Awards continue to remain operative and binding.
52 On this basis, the Court concluded that the Srivastav Award was legal and
valid and shall be implemented by LIC by absorption of the workers concerned in
permanent posts. The operative direction which was issued by this Court is
extracted below:
PART H
63
“54. It is needless to mention that since we are of the view
that the award passed by CGIT in ID No. 27 of 1991 is legal
and valid, it shall be restored and implemented by the
Corporation by absorbing the workmen concerned in the
permanent posts and if they have attained the age of
superannuation, the Corporation will be liable to pay all
consequential benefits including the monetary benefits taking
into consideration the pay scale and revised pay scale from
time to time by the Corporation.”
53 None of the Counsel appearing on behalf of the workers in the present batch
of cases disputed the factual position, asserted on behalf of LIC, that the judgment
of the two-judge Bench in TN Terminated Employees Association (supra)
affirming the validity of the Srivastav Award contains no reference whatsoever to the
final order dated 7 February 1996 in the batch of civil appeals arising from the
Tulpule and Jamdar Awards in LIC v. Their Workmen (supra). The interim order
dated 1 March 1989 in LIC v. Their Workmen (supra), which forms the basis of the
judgment in TN Terminated Employees Association (supra), was passed in the
backdrop of a compromise which was arrived between LIC and eight out of the nine
Unions and Associations representing the workers. Since the appeals were pending
at that stage, the Court granted liberty to the parties to the compromise to implement
its terms as an interim measure, without prejudice to the contentions of the ninth
Union which had not entered into the compromise. But noticeably, there is a clear
omission on the part of the Court in TN Terminated Employees Association
(supra) to refer to the admitted position that subsequently on 7 February 1996, this
Court in LIC v. Their Workmen (supra) accepted the submission of LIC that since
eight out of the nine unions (representing nearly 99 per cent of the workers in Class
PART H
64
III and Class IV posts) had accepted the compromise, there was no justification for
the ninth Union to object. The Court held that it would be in the interest of industrial
peace that the ninth Union should also fall in line and act on the terms of the
compromise. The civil appeals in LIC v. Their Workmen (supra) were disposed of in
terms of the above order dated 7 February 1996. The terms of compromise clearly
envisaged that the management and the workers had agreed that the awards of the
NIT dated 17 April 1986 (Tulpule Award) and 26 August 1988 (Jamdar Award) “be
substituted by the terms and conditions of compromise in relation to the question of
regular employment of the workmen concerned in the said references”. Once the
awards were substituted by the terms of compromise, it would be an impermissible
interpretation of law to hold that the awards continued to be operative and binding,
notwithstanding the final order of this Court dated 7 February 1996 in LIC v. Their
Workmen (supra). The final order dated 7 February 1996 has not been adverted to
by the two-judge Bench in TN Terminated Employees Association (supra). The
factual finding is based only on the interim order dated 1 March 1989. The final order
dated 7 February 1996 in LIC v. Their Workmen (supra) had a crucial bearing on
the special leave petitions arising from the judgment of the Delhi High Court setting
aside the Srivastav Award.
54 That having been said, it is necessary to also advert to the interpretation
which was placed on the decisions of this Court in E Prabavathy (supra) and G
Sudhakar (supra). The two-judge Bench in TN Terminated Employees
Association (supra) opined that the scheme which was framed in E Prabavathy
PART H
65
(supra) was the outcome of an order which was passed in writ petitions filed by the
workers and not in the course of the adjudication of an industrial dispute. On this
ground, the Court held that the decision in E Prabavathy (supra) would not come in
the way of an adjudication by the CGIT or NIT while deciding a reference under
Section 10 of the ID Act. The background of the decision in E Prabavathy (supra)
has already been noticed earlier. The decision was rendered on 23 October 1992 in
a batch of civil appeals which was being considered by a three-judge Bench. During
the pendency of the civil appeals, the Court called upon LIC to formulate a scheme
for the regularisation of workers who had been granted ad hoc employment for at
least 85 days from time to time. The three-judge Bench held, after assessing the
terms of the scheme proposed by LIC, that it was reasonable and commended itself
for acceptance. The scheme proposed by LIC was approved by this Court with a
specific observation that the clauses of the scheme extracted in the order would
form a part of the order of this Court. The decision of three Judges in E Prabavathy
(supra) was thereafter interpreted by a two-judge Bench in its order dated 22
November 2001 in G Sudhakar (supra). Noticing that the scheme which has been
accepted in E Prabavathy (supra) governed workers of the Tamil Nadu Division of
LIC, the Court held that the scheme would be equally applicable to the workers of all
divisions of LIC in the country. The Court therefore held that it was not necessary to
evolve a fresh scheme for a different group of workers, in that case under the
directions of the Andhra Pradesh High Court. As a matter of fact, it is also material to
note that in paragraph 75 of the Srivastav Award itself there was a specific finding
that though the E Prabavathy group of workers had been impleaded in the reference
PART H
66
and had filed a statement of the claim, having regard to the fact that the order of this
Court dated 23 October 1992 was between the same parties, the workers had no
valid ground to challenge the legality of this Court’s order before the tribunal.
Despite the clear observations in the Srivastav Award, the judgment of the two-judge
Bench in TN Terminated Employees Association (supra) has come to the
conclusion that the order of the three-judge Bench in E Prabavathy (supra) would
not preclude an industrial adjudication by the tribunal. The two-judge Bench which
delivered the judgment in TN Terminated Employees Association (supra) was
bound by the order in E Prabavathy (supra), which was of a larger Bench of three
judges, and the interpretation which was placed on it by another two-judge Bench in
G Sudhakar (supra). If the two-judge Bench differed, it had to refer the matter to a
larger Bench but it was not at liberty to take a final view at variance with binding
decisions of a larger Bench and of a co-ordinate Bench.
55 A plea has been urged on behalf of the workers that the judgment in TN
Terminated Employees Association (supra) has attained finality following the
dismissal of the review petition on 9 August 2016 (save for the modification by which
the quantum of back-wages was reduced to fifty per cent) and the subsequent
dismissal of a curative petition. We are cognizant that the ground, submitting that the
decision ignored the final order dated 7 February 1996 in LIC v. Their Workmen
(supra), was specifically pleaded in review. The only observation in the judgment in
review is that LIC has not submitted anything on record to indicate that the judgment
PART H
67
suffers from an error apparent in law. However, having regard to the immense
financial burden, the quantum of back-wages would be reduced to fifty per cent.
56 Now, there cannot be any dispute over the principle that the judgment in TN
Terminated Employees Association (supra), followed by the order in review dated
9 August 2016, are between the present parties and finality has attached to them.
LIC is, however, before this Court urging that as a statutory entity with a nationwide
presence, it is faced with a situation involving conflicting directions of this Court. LIC
has submitted that while on the one hand, the Tulpule and Jamdar Awards were
substituted by the terms of compromise on 7 February 1996 in LIC v. Their
Workmen (supra), this was preceded by the order dated 23 October 1992 of a
three-judge Bench in E Prabavathy (supra) which accepted the scheme of
absorption proposed by LIC and followed by the order dated 28 November 2001 of a
two-judge Bench in G Sudhakar (supra) which interpreted the decision in E
Prabavathy (supra) as being applicable to all divisions of LIC. The impact of the
judgment in TN Terminated Employees Association (supra) is to substitute and
supplant the schemes which were evolved before this Court for providing absorption
on specified terms. The essence of the schemes which were accepted by this Court
was that those temporary, badli and part-time workers who fulfilled the requirement
of the threshold period of service would be eligible to be considered for the grant of
the permanency, subject to certain conditions. The orders passed by this Court
envisage that these workers would be considered for the grant of permanency in the
course of a recruitment process. The impact of the judgment of the two-judge Bench
PART H
68
in TN Terminated Employees Association (supra) is that while on the one hand
the Court’s orders dated 23 October 1992, 7 February 1996 and 22 November 2001
continued to hold the field, on the other hand the restoration of the Srivastav Award
brings in place a regime in conflict with what has been accepted by this Court in
these orders. Faced with this predicament, it is necessary for this Court to step in
and to correct a manifest miscarriage of justice caused by the decision in TN
Terminated Employees Association (supra) which has been urged to be per
incuriam. The consequence of not doing so is serious.
57 The Court is now confronted with claims on behalf of the workers that the
principle which has been enunciated in the Srivastav Award and which has been
restored by the two-judge Bench in TN Terminated Employees Association
(supra) must apply to all workers subsequently engaged by applying Section
18(3)(d) read with Section 17A of the ID Act. Hence, a balance will now have to be
drawn by this Court, in the exercise of its jurisdiction under Article 142 of the
Constitution, which while on the one hand factors in the finality which has attached
to the judgment in TN Terminated Employees Association (supra) but on the
other hand also factors in the essential concerns which have been expressed before
this Court by LIC. The formula of providing absorption to part-time, badli or
temporary workers who have put in 85 days in any two calendar years in a Class III
post or 70 days in any three calendar years in a Class IV post will, unless a balance
were to be drawn, become an avenue for disregarding the need for an open and
transparent process of recruitment by a public sector corporation governed by the
PART I
69
rule of law and the mandate of Articles 14 and 16 of the Constitution. The judgments
of this Court, in the context of public employment, lay stress on providing equality of
opportunity. As we have recorded earlier in the course of the statements of facts,
LIC had been restrained, due to the interim orders which were passed in the course
of the various proceedings, from taking recourse to recruitment through the open
market. LIC having been restrained by judicial orders from pursuing an open
recruitment process, the situation which has now arisen is that unless a balance
were to be drawn, absorption of part-time and badli workers would become a
substitute for a recruitment process based on sanctioned posts, consistent with the
principles of reservation and pursued on the basis of a structured recruitment which
gives equal opportunities to all applicants. Such a consequence is a serious
detriment to constitutional parameters and to the duty of LIC as a public employer to
follow a process which is fair and in consonance with Articles 14 and 16 of the
Constitution. An open and competitive process for recruitment will enable LIC to
recruit the best among the available talent. Substituting this by a back-door entry will
be detrimental to the interests of the corporation which is governed by statute.
I Validity of the verification in the Dogra Report
58 Mr ANS Nadkarni, Senior Counsel appearing on behalf of LIC, assailed the
Dogra Report on the ground that the remit before the CGIT was only to verify and
not to adjudicate. There is no doubt about the premise that the task which was
PART I
70
entrusted to CGIT by the order of this Court dated 7 September 2018 in the
contempt proceedings arising out of the review of TN Terminated Employees
Association (supra) was of verification. But it becomes necessary to consider
whether the remit to the CGIT was only confined to the certified list of workers in the
industrial reference. It is true that by the order of this Court dated 10 September
2018, the CGIT was directed to verify the list on the record. However, an isolated
sentence in the order of this Court cannot be read torn from its context. Paragraph
94 of the Srivastav Award required LIC to also consider the case of those workers
who belonged to the temporary, badli and part-time category, who had completed
the qualified period of working and were suitable in every respect but whose
services had been terminated. LIC was directed to publish a notice in the daily
newspapers so as to enable such workers to lodge their claims for absorption. LIC
issued a public notice in the newspapers on 21 July 2015. Each applicant was
required to submit a form for being considered for absorption, of which item 10(b)
required a disclosure of the details of the petition before the CGIT including whether
the applicant was a petitioner in the industrial reference. The crucial aspect,
however, is that the verification which was carried out by the CGIT was not
specifically restricted to the certified list of workers. The judgment of this Court in the
course of the proceedings in review, records the following submissions being made
on behalf of LIC:
“6. The learned Attorney General further submits that as on
31-3-2015, LIC had 55, 427 Class III employees and 5190
Class IV employees. If LIC is directed to consider the
absorption of the workmen to the advertisement, then the
PART I
71
number of Class III employees will increase by 11.14% and
Class IV employees by 56.65% and the same will affect the
employee's ratio in addition to the increase in its financial
burden and that the same will be contrary to the interests of
the policy-holders. The learned Attorney General estimates
the financial liability for implementing the order of this Court at
approximately Rs 7087 crores, with the annual liability at
around Rs 728 crores per year and that this will be a huge
financial burden for LIC to bear.”
The above submission indicates that if LIC were directed to consider the absorption
of the workers pursuant to the advertisement, the strength of the Class III employees
would increase by 11.1 per cent and Class IV employees by 56.65 per cent,
resulting in an annual financial liability of Rs 728 crores. Hence, there is merit in the
contention of the Counsel for the workers that the above submission, which is
recorded in paragraph 6 of the judgment in review, does not comport with LIC’s
present stance that the verification was to be confined only to the certified list.
59 This having been said, it is evident that the Dogra Report suffers from clear
and manifest errors. As we have already noted earlier, LIC had drawn the attention
of the Presiding Officer to the fact that the claims which had been submitted by the
Unions, Associations and individual workers during the course of the verification
contained duplicate entries. LIC has produced a chart containing details of various
workers and claimants. For convenience of reference, the chart is extracted below:
Chart containing details of various Workmen/Claimants from various Associations before the Ld. CGIT Court, New
Delhi in I.D. No. 27/1991.
NAME OF
UNION/ASSO
CIATION
All
India
Insur
ance
Empl
All
India
LIC
Empl
oyee
All
India
Life
Insur
ance
All
India
Natio
nal
Life
All
India
Natio
nal
Life
EP &
Ors
(TFTT
UCE
WA)
Tamil
Nadu
Termi
nated
Temp
Akhil
Bhar
atiya
Jeev
an
LIC
Work
ers’
Unio
n,
GU
JA
RA
T
TE
IND
IVID
UAL
S
TOTAL
PART I
72
oyee
s
Asso
ciatio
n
s
Fede
ratio
n
Empl
oyee
s
Asso
ciatio
n
Insur
ance
Empl
oyee
s
Fede
ratio
nBNP
Insur
ance
Empl
oyee
s
Fede
ratio
n-VN
orary
Full
Time
LIC
Empl
oyees
Asson
Bima
Niga
m
Chat
hurth
a
Sreni
Kara
mch
ari
Sang
h
Kanp
ur
MP
RA
RY
LI
CE
A
A Claimants as
per their list 3337 97 6996 1674 371 1333 376 890 35 10
5 252 15465
Less DUPLICATE
ENTRIES 0 0 3582 0 0 0 1 9 0 0 0 3592
Less BLANK
ENTRIES 0 0 9 84 0 0 0 0 0 0 0 93
B Net 3337 97 3404 1590 371 1333 375 881 35 10
5 252 11780
Less ENGAGED
AFTER
04.03.1991,
not reckoned
as per
Hon’ble SC
order
07.09.18
5 1 2109 38 22 477 102 692 1 10
0 33 3580
Less ENGAGED
BEFORE
20.05.1985,
not reckoned
as per
Hon’ble SC
order
07.09.18
0 0 2 3 2 0 1 2 0 0 0 10
C Net 3332 96 1293 1549 347 856 272 187 34 5 219 8190
Less Name not
found in
certified lists
received from
CGIT
3332 94 1184 1543 339 0 61 186 34 5 219 6997
Less Engaged less
than 85 days
(CIII)
0 0 9 1 0 11 90 0 0 0 0 111
Less Engaged less
than 70 days
(CIV)
0 0 7 1 6 6 36 0 0 0 0 56
D Net 0 2 93 4 2 839 85 1 0 0 0 1026
Less Party in E.P &
Ors 0 0 0 0 0 839 83 0 0 0 0 922
E Net 0 2 93 4 2 0 2 1 0 0 0 104
Less Documents 0 0 26 3 0 0 2 1 0 0 0 32
PART I
73
not submitted
to prove
eligibility
Less Criminal Case
pending 0 0 1 0 0 0 0 0 0 0 0 1
Less Fabricated
Documents 0 2 1 1 2 0 0 0 0 0 0 6
G
Found
eligible,
Absorbed
0 0 65 0 0 0 0 0 0 0 0 65
Note:- 2 Individual Petitioners Sl.no. 29 & 31 have now submitted their claim through INTUC-BNP,
however no substantiating documents have been submitted”
60 The Dogra Report eventually concludes that the group of workers, who are
governed by the order of this Court in E Prabavathy (supra), would also be eligible
for absorption. By considering the workers who are governed by the order in E
Prabavathy (supra) to be eligible for absorption, the Dogra Report has fallen into a
clear error. The report has considered those workers who were clearly outside the
ambit of its remit since they were governed by a specific order of this Court. That
apart, it is evident that the Dogra Report has proceeded on a generalised
assumption that a majority of workers had produced documents are eligible for
absorption (having drawn a negative inference from LIC’s non-production of
documents). In this backdrop, it would be necessary to bring about a proper
verification before the claims of the workers can be truly considered. The deficiency
of the Dogra Report in carrying out a proper verification stands clearly established.
PART J
74
J The Interplay between the Industrial Disputes Act 1947 and Section
48 of the LIC Act 1956
61 Section 48 of the LIC Act confers a rule making power on the Central
Government. Clause (cc) of sub-Section (2) of Section 48 was introduced by Act 1 of
1981 with effect from 31 January 1981. Under clause (cc), the Central Government
is empowered to frame rules dealing with the following matters:
“(cc) the terms and conditions of service of the employees
of the Corporation, including those who became employees of
the Corporation on the appointed day under this Act;”
62 Simultaneously by the Amending Act, sub-Sections (2A), (2B) and (2C) were
introduced into Section 48. These Sections provide as follows:
“(2A) The regulations and other provisions as in force
immediately before the commencement of the Life Insurance
Corporation (Amendment) Act, 1981, with respect to the
terms and conditions of service of employees and agents of
the Corporation including those who became employees and
agents of the Corporation on the appointed day under this
Act, shall be deemed to be rules made under clause (cc) of
sub-section (2) and shall, subject to the other provisions of
this section, have effect accordingly.
(2B) The power to make rules conferred by clause (cc) of
sub-section (2) shall include-
(i) The power to give retrospective effect to such rules;
and
(ii) The power to amend by way of addition, variation or
repeal, the regulations and other provisions referred to in subsection (2A), with retrospective effect, from a date not earlier
than the twentieth day of June, 1979.
(2C) The provisions of clause (cc) of sub-section (2) and subsection (2B) and any rules made under the said clause (cc)
PART J
75
shall have effect, and any such rule made with retrospective
effect from any date shall also be deemed to have had effect
from that date, notwithstanding any judgment, decree or order
of any court, tribunal or other authority and notwithstanding
anything contained in the Industrial Disputes Act, 1947 (14 of
1947), or any other law or any agreement, settlement, award
or other instrument for the time being in force.”
63 By virtue of sub-Section (2A), the regulations governing the terms and
conditions of service of the employees and agents of LIC which were in force
immediately before Amending Act 1 of 1981, are deemed to be rules made under
clause (cc) of sub-Section (2) and have effect subject to the other provisions of the
Section. By a deeming fiction of law, the regulations which were in existence on the
date of the Amending Act in relation to the terms and conditions of service are given
the status of rules framed under clause (cc) of sub-Section (2) of Section 48. The
effect of sub-Section (2C) is that the provision of clause (cc) of sub-Section (2) and
any rules made under it with retrospective effect, shall also be deemed to have had
effect from that date notwithstanding any judgment, decree or order of any Court,
tribunal or other authority and notwithstanding anything contained in the ID Act, or in
any other law or any agreement, settlement, award or other instrument for the time
being in force. The rules which are framed under Section 48(2)(cc) operate with a
non-obstante clause which prevails, inter alia, notwithstanding anything contained in
the ID Act. The vires of the Amending Act was upheld in a judgment of a three-judge
Bench of this Court in A V Nachane (supra). Justice A C Gupta, speaking for
himself and Justice R S Pathak (as the learned Chief Justice then was), repelled the
challenge to the validity of the Amending Act based on Article 14 of the Constitution.
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76
The Court also rejected the submission that sub-Section (2C), which was introduced
into Section 48 by the Amending Act, suffered from the vice of excessive delegation.
While upholding the Amending Act, the Court held:
“8. The contention that Article 14 is infringed arises on the
provision of sub-section (2-C) of Section 48 that any rule
made under clause (cc) of sub-section (2) of that section
touching the terms and conditions of service of the employees
of the Corporation shall have effect notwithstanding anything
contained in the Industrial Disputes Act, 1947. It is true that
after rules are made regarding the terms and conditions of
service, the right to raise an industrial dispute in respect of
matters dealt with by the rules will be taken away and to that
extent the provisions of the Industrial Disputes Act will cease
to be applicable. It was argued that there was no basis on
which the employees of the Corporation could be said to form
a separate class for denying to them the protection of the
Industrial Disputes Act. The reply on behalf of the Union of
India and the Life Insurance Corporation was that the
remuneration that was being paid to Class III and Class IV
employees of the Corporation was far in excess of what was
paid to similarly situated employees in other establishments in
the public sector. Some material was also furnished to
support this claim though that were certainly not conclusive.
The need for amending the Life Insurance Corporation Act,
1956 as appearing from the preamble of the Amendment Act
and the Ordinance is as follows: “... for securing the interests
of the Life Insurance Corporation of India and its policyholders and to control the cost of administration, it is
necessary that revision of the terms and conditions of service
applicable to the employees and agents of the Corporation
should be undertaken expeditiously.” Referring to the
preamble of the Act the Attorney-General appearing for the
Union of India and the Corporation submitted that the problem
of mounting cost of administration led to the making of the
impugned law. He added that it was felt that no improvement
in the situation was possible by the process of adjudication
and a policy decision was taken that in the circumstances the
proper course was legislation and that is why the Amendment
Act was passed and the impugned Rules were framed. The
learned Attorney-General submitted that it was for Parliament
to decide whether the situation was remediable by
adjudication or required legislation. According to him the Life
PART J
77
Insurance Corporation Act as amended and the Rules made
after amendment placed the Corporation in the same position
as other undertakings, that the advantages being enjoyed by
the employees of the Corporation which were not available to
similarly situated employees of other undertakings have been
taken away removing what he described as discrimination in
favour of the employees of the Life Insurance Corporation.
We have already said that the material produced on behalf of
the Union of India and the Corporation to show that the terms
and conditions of service of the employees in several other
undertakings in the public sector compared unfavourably to
those of the Corporation employees was not conclusive. But
the burden of establishing hostile discrimination was on the
petitioners who challenged the Amendment Act and the
Rules. It was for them to show that the employees of the Life
Insurance Corporation and the employees of the other
establishments to whom the provisions of the Industrial
Disputes Act were applicable were similarly circumstanced to
justify the contention that by excluding the employees of the
Corporation from the purview of the Industrial Disputes Act
they had been discriminated against. There is no material
before us on the basis of which we can hold that the
Amendment Act of 1981 and the Rules made on February 2,
1981 infringe Article 14. We do not think that on the facts of
this case Express Newspapers (Private) Ltd. v. Union of
India [AIR 1958 SC 578 : 1959 SCR 12 : (1961) 1 LLJ 339] ,
and Moti Ram Deka v. General Manager [AIR 1964 SC 600 :
(1964) 5 SCR 683 : (1964) 2 LLJ 467] relied on by the
petitioners, have any application.”
64 The Court, however, held that Rule 3 of the Life Insurance Corporation of
India Class III and Class IV Employees (Bonus and Dearness Allowance) Rules
198137 could not nullify the effect of a writ issued by this Court in its earlier decision
in LIC v. D.J. Bahadur38, which directed LIC to give effect to the industrial
settlement relating to bonus until superseded by a fresh settlement, award or
legislation. Holding that the Amending Act of 1981 and the Bonus Rules were
 37 “Bonus Rules” 38 (1981) 1 SCC 315
PART J
78
relevant legislation, the Court held that these would operative prospectively from the
date of the publication of the rules. There was also a concurring opinion of Justice O
Chinappa Reddy. While dealing with the constitutional validity under Article 14, the
main judgment notes that after rules are made regarding the terms and conditions of
service, the right to raise an industrial dispute in respect of matters dealt with by the
rules is taken away and to that extent the provisions of the ID Act will cease to be
applicable.
65 In the subsequent decision of another Bench of three-judges of this Court in
M Venugopal (supra), the impact of the Amending Act of 1981 on the application of
the ID Act came up for consideration. The services of the appellant, who was a
probationary Development Officer in LIC, were terminated on his failure to fulfil the
targets assigned. A writ petition challenging the termination was allowed by a Single
Judge of the High Court on the ground that the termination amounted to a
retrenchment within the meaning of Section 2(oo) of the ID Act, and that the
termination was void due to the failure to comply with Section 25F. In appeal, the
Division Bench held that as a result of clause (bb) which was introduced in Section
2(oo) from 18 August 1984, the termination of a probationer would not amount to a
retrenchment within the meaning of Section 2(oo). Regulation 14(2) of the Staff
Regulations was, as a consequence of Section 48(2A) as introduced by the
Amending Act, deemed to be rules framed under Section 48(2)(cc). Clause (4) of
Regulation 14 permitted LIC to discharge an employee during the period of
probation. Before the introduction of clause (bb) in Section 2(oo) of the ID Act, there
PART J
79
were only three exceptions which excluded a termination of service from the ambit of
retrenchment, namely:
(i) Voluntary retirement;
(ii) Retirement on superannuation; and
(iii)Termination due to continued ill-health.
After the introduction of clause (bb), Parliament excluded from the purview of
retrenchment, in addition, the following:
(i) Termination as a result of the non-renewal of a contract of employment upon
its expiry; and
(ii) Termination of a contract under a stipulation in that behalf contained in the
contract of employment.
It was held that in this case the termination of the services of the probationer was in
terms of the contract of an employment in terms of the stipulation contained in
Regulation 14, and hence non-compliance with Section 25F would not vitiate the
orders of termination.
66 Justice N P Singh, speaking for the three-judge Bench, then went on to
elucidate on the impact of Amending Act 1 of 1981, more particularly the insertion of
clause (cc) into sub-Section (2) and the insertion of sub-Sections (2A), (2B) and (2C)
in Section 48. The Court held that the ID Act and the LIC Act have both been framed
by Parliament, with the amendments introduced from 31 January 1981 in Section 48
PART J
80
containing a non-obstante clause in sub-Section (2C) making the intent of
Parliament “apparent and obvious”. The Court held:
“The framers of the Corporation Act through the amendments
aforesaid have given the provisions of the Corporation Act an
overriding effect over the provisions of the Industrial Disputes
Act, so far as the provisions relating to the terms and
conditions of employment, which are in conflict with the
provisions of the Industrial Disputes Act are concerned.
Unless the said attempt is held to be ultra vires being in
conflict with any of the provisions of the Constitution it was
open to the Parliament to treat the employees and agents of
the Corporation as a separate class for purpose of fixing their
terms and conditions of service.”
67 The Court held that earlier the employees were governed by the regulations
framed by LIC under Section 49 as well as by the provisions of the ID Act. Hence, it
was open to the workers to enforce their rights and remedies in terms of the
regulations framed under the LIC Act or in accordance with the provisions of ID Act.
However, after the amendments which were introduced by Parliament in Section 48,
the employees of LIC would not be entitled to the protection of the ID Act to which
they were entitled before the enforcement of the amendment. The Court held that
the validity of the amendment had been upheld in the earlier decision in A V
Nachane (supra), and concluded:
“14. The amendments introduced in Section 48 of the
Corporation Act have clearly excluded the provisions of the
Industrial Disputes Act so far as they are in conflict with the
rules framed under Section 48(2)(cc). The result whereof will
be that termination of the service of the appellant shall not be
deemed to be a “retrenchment” within the meaning of Section
2(oo) even if sub-section (bb) had not been introduced in the
said section. Once Section 2(oo) is not attracted, there is no
question of application of Section 25-F on the basis of which
PART J
81
the termination of the service of the appellant can be held to
be invalid. The termination of the service of the appellant
during the period of probation is in terms of the order of
appointment read with Regulation 14 of the Regulations,
which shall be deemed to be now Rules under Section
48(2)(cc) of the Corporation Act.”
68 Therefore, in view of the amended provisions of Section 48(2A) and (2C), the
termination of the service of the appellant was held not to amount to a retrenchment
even when clause (bb) had not been introduced in Section 2(oo) of the ID Act. Since
Section 2(oo) would anyways not stand attracted where the services of a
probationer were terminated under Regulation 14(4) of the Staff Regulations which,
deemed to be a part of the rules under Section 48(2)(cc), has an overriding effect
over the ID Act and would prevail.
69 The above provisions of Section 48 were specifically placed before the twojudge Bench of this Court, as is evident from a bare reading of the judgment in TN
Terminated Employees Association (supra). However, the Court declined to go
into the submission based on the provisions of Section 48, holding that the Staff
Regulations provided only two types of employment: (i) Regular; and (ii) Temporary.
The Court held that employment in the capacity of badli/part-time workers was not
provided in the Staff Regulations, and there was no specific nomenclature of that
nature in the Staff Regulations. The decision of the two-judge Bench evidently does
not notice either the judgment in A V Nachane (supra) or the decision in M
Venugopal (supra), both of which have been delivered by three-judge Benches.
They are binding precedents and could not have been brushed aside.
PART J
82
70 That apart, it becomes necessary at this stage to advert to the provisions of
Regulation 8 of the Staff Regulations. Regulation 8(1) deals with temporary staff and
is prefaced with a non-obstante provision. Clause (1) of Regulation 8 is an enabling
provision empowering LIC to employ staff in Classes III and IV on a temporary basis,
subject to such general or specific directions which may be issued by the
Chairperson from time to time. Clause (2) of Regulation 8 stipulates that no person
who is appointed under Regulation 8(1) is, only by reason of such appointment, to
be entitled to absorption in the service of LIC or to claim preference for recruitment
to any post. The expression “shall only by reason of such appointment be entitled to
absorption” in this sub-clause (2) is crucial. What the expression postulates is that a
person who is appointed on a temporary basis can nether claim an entitlement to
absorption or a preference in recruitment merely by having been appointed on a
temporary basis. In other words, Regulation 8(2) does not postulate an absolute bar
to a claim for absorption but it stipulates that absorption cannot be claimed merely
on the ground that a person was engaged on a temporary basis. Regulation 8(2), for
instance, will not preclude a claim for absorption being made in terms of a scheme
which is propounded by LIC, so long as the scheme contains provisions which
facilitate absorption on stipulated terms and conditions. But the mere fact that a
person is appointed in a temporary capacity by LIC, does not entitle such a person
ipso jure to seek absorption merely by virtue of or only by reason of such an
appointment.
PART J
83
71 The impact of the provisions of clause (cc) of sub-Section (2), sub-Section
(2A) and sub-Section (2C) of Section 48 on the clams of the workers appointed after
4 March 1991 must now be considered. The workers who have worked as
temporary, badli or part-time workers after 4 March 1991, seek to assert their claims
on the basis of Section 18(3)(d) of the ID Act. Section 18 specifies the person on
whom settlements and awards are binding. Section 18(3)(a) stipulates that a
settlement or award would bind all the parties to the industrial dispute. Further,
clause (d) specifies that where a party to the dispute is composed of workers, the
settlement and award binds not only persons who are employed in the
establishment to which the dispute relates on the date of the dispute but all persons
who subsequently become employees in that establishment or a part of it. Section
18(3)(d), in other words, extends the applicability of a settlement or award beyond
the workers who were engaged on the date of the dispute to all persons who
subsequently become employees in the establishment. Regulation 8 of the Staff
Regulation expressly permits the engagement of temporary workers and clause (2)
contains a provision to the effect that a person who engaged under its clause (1)
shall not, only by reason of such appointment, be entitled to absorption or to claim a
preference for recruitment on any post. The effect of sub-Section (2A) of Section 48
is that Regulation 8 is deemed to be a rule which is framed under clause (cc) of subSection (2) of Section 48. Moreover, the provisions of Section 48(2C) postulate that
a rule which is made under the clause shall have effect notwithstanding anything
contained in the ID Act. Hence, the workers who have been recruited post 4 March
1991 cannot make a claim for absorption ipso jure under Section 18(3)(d) of the ID
PART K
84
Act, as a result of the overriding provision which is contained in sub-Section (2C) of
Section 48.
K Structuring the Relief
72 For the reasons recorded above during the course of analysis, LIC as a
statutory corporation is bound by the mandate of Articles 14 and 16 of the
Constitution. As a public employer, the recruitment process of the corporation must
meet the constitutional standard of a fair and open process. Allowing for back-door
entries into service is an anathema to public service.
73 In structuring the relief in present proceedings, it is essential to recapitulate
the key legal findings that will govern the determination of rights and equities:
(i) On 7 February 1996, a two-judge Bench of this Court in LIC v. Their
Workmen (supra) had accepted the terms of compromise which was arrived
at on 1 March 1989 between the management of LIC and eight Unions, and
imposed them upon the ninth Union as well. In addition, the two-judge Bench
of this Court had issued certain directions:
(a) LIC should exempt Class IV workers from a test and interview, if the
management has the power to do so under the regulations/instructions
governing their conditions of service; and
(b) In the event that the management of LIC does not possess such a power,
the test to be prescribed for these workers would be of a lesser standard
PART K
85
compared to other applicants from the open market till the next regular
recruitment;
(ii) On 23 October 1992, a three-judge Bench of this Court, while disposing of the
civil appeals in E Prabavathy (supra), specifically accepted the scheme
formulated by LIC for regularising the workers who were engaged on a
temporary basis. The scheme was also specifically incorporated as a part of
the order in the following terms:
“(a) All those temporary employees who have worked for 85
days in any two consecutive calendar years with the Life
Insurance Corporation between 20th May 1985 uptil date and
who confirmed to tehe required eligibility criteria for regular
recruitment on the dates of their initial temporary appointment
will be permitted to complete for the next regular recruitment
to be made by the Life Insurance Corporation after the regular
recruitment for these posts currently scheduled for November,
1992.
(b) These candidates will be considered on their merits with
all other candidates who may apply for such appointments,
including those from the open market.
(c) These candidates will be given an age relaxation for
applying for regular recruitment provided that they were
eligible on the date of their first temporary appointment for
securing regular appointment with the Life Insurance
Corporation.
(d) If these candidates are otherwise eligible, they can
apply for regular recruitment in the normal course. This
regularisation will, in the circumstances, be by selection for
appointment. We make the above clauses of the scheme as
part of our order.”
The three-judge Bench in E Prabavathy (supra) held that the scheme
proposed by LIC is reasonable and that: (a) the regularisation will be by
PART K
86
selection for appointment; and (b) the above clauses of the scheme would
constitute a part of the order of this Court;
(iii)On 22 November 2001, a two-judge Bench of this Court in G Sudhakar
(supra) directed that though the order dated 23 October 1992 in E
Prabavathy (supra) applied to the workers of the Tamil Nadu division, the
scheme would equally be applicable to the workers of all divisions of LIC in
the country;
(iv)The judgment of the two-judge Bench of this Court dated 8 March 2015 in TN
Terminated Employees Association (supra) failed to notice that as a result
of the final order dated 7 February 1996 in LIC v. Their Workmen (supra),
the Tulpule and Jamdar Awards had been substituted by the terms of
compromise. The two-judge Bench of this Court overlooked the final order
dated 7 February 1996 in LIC v. Their Workmen (supra) and while adverting
only to the interim order dated 1 March 1989, it arrived at a palpably
erroneous conclusion that the Jamdar and Tulpule Awards were still operative
and binding; and
(v) Though the petition seeking review of TN Terminated Employees
Association (supra) and the curative petition stand dismissed, LIC is
confronted with a situation in which it is equally bound by the earlier decision
of the three-judge Bench dated 23 October 1992 in E Prabavathy (supra), the
judgment of the two-judge Bench dated 7 February 1996 in LIC v. Their
Workmen (supra) dealing with the appeals arising out of the Tulpule and
PART K
87
Jamdar Awards and the judgment of the two-judge Bench dated 22 November
2001 in G Sudhakar (supra).
74 The position as it now stands, results in a palpable conflict between the twojudge Bench decision in TN Terminated Employees Association (supra) dated 18
March 2015 on the one hand and the earlier binding decision of a larger Bench in E
Prabavathy (supra) on 23 October 1992 and of subsequent Benches. This conflict
must be harmonised by taking recourse to the jurisdiction of this Court under Article
142 of the Constitution. In arriving at a conclusion, this Court finds that:
(i) The remit of the CGIT which resulted in the Dogra Report was confined to the
process of verification, as distinct from an adjudication of rights and liabilities;
(ii) The Dogra Report is flawed because:
(a) The report failed to carry out an accurate verification of only those Class III
workers who had put in at least 85 days of work in a period of two years
and Class IV workers who had put in 70 days of work in a period of three
years;
(b) The lists which are appended to the report contain patent inconsistencies
and errors as a consequence of a failure to carry out an adequate
verification; and
(c) The report accepted the claims for absorption of those workers who were
specifically governed by the decision of this Court in E Prabavathy
(supra), in spite of an express stipulation to the contrary in the order of this
PART K
88
Court dated 23 October 1992 as well as in paragraph 75 of the Srivastav
Award;
(iii)A public employer such as LIC cannot be directed to carry out a mass
absorption of over 11,000 workers on such flawed premises without following
a recruitment process which is consistent with the principles of equality of
opportunity governed by Articles 14 and 16 of the Constitution. Such an
absorption would provide the very back-door entry, which negates the
principle of equal opportunity and fairness in public employment, which has
been specifically decried by this Court in Secretary, State of Karnataka v.
Umadevi39.
75 The dispute is now of an antiquity tracing back to nearly four decades. Finality
has to be wrung down on the dispute to avoid uncertainty and more litigation. Nearly
thirty-one years have elapsed since 1991. We have come to the conclusion that the
claims of those workers who are duly found upon verification to meet the threshold
conditions of eligibility should be resolved by the award of monetary compensation
in lieu of absorption, and in full and final settlement of all claims and demands. Thus,
this Court directs the following:
(i) A fresh verification of the claims of workers who claim to have been employed
for at least 70 days in Class IV posts over a period of three years or 85 days
in Class III posts over a period of two years shall be carried out;
 39 (2006) 4 SCC 1
PART K
89
(ii) The verification shall be confined to persons who were working between 20
May 1985 and 4 March 1991;
(iii)All persons who are found to be eligible on the above norm shall be entitled to
compensation computed at the rate of Rs 50,000 for every year of service or
part thereof. The payment of compensation at the above rate shall be in lieu
of reinstatement, and in full and final settlement of all claims and demands of
the workers in lieu of regularisation or absorption and notwithstanding the
directions issued by this Court in TN Terminated Employees Association
(supra);
(iv)In carrying out the process of verification, the Committee appointed by this
Court shall not be confined to the certified list before the CGIT and shall
consider the claims of all workers who were engaged between 20 May 1985
and 4 March 1991;
(v) For the purpose of verification, LIC shall make available all the records at the
Divisional level to the Committee appointed by this Court;
(vi)It will be open to the workers concerned or, as the case may be, the Unions
and Associations representing them, to make available such documentary
material in their possession for the purpose of verification;
(vii) The process of verification shall be carried out independently without regard
to the Dogra Report, which is held to be flawed;
(viii) The payment of compensation in lieu of reinstatement shall be effected by
LIC within a period of three months from the date of receipt of the report of
verification by the Committee; and
PART K
90
(ix) The task of verification shall be carried out by a Committee consisting of:
(a) Mr Justice P K S Baghel, former Judge of the Allahabad High Court; and
(b) Shri Rajiv Sharma, former District Judge and member of the UPHJS.
LIC shall provide all logistical assistance to the Committee and bear all expenses,
including secretarial expenses, travel and incidental expenses, as well as the fees
payable to the members of the Committee. Justice P K S Baghel shall fix the terms
of remuneration payable to the members of the Committee.
76 The Miscellaneous Applications and the Writ Petitions shall be governed by
the above directions and are disposed of in the above terms.
77 Pending application(s), if any, shall stand disposed of.
…….…………………………...............................J.
 [Dr Dhananjaya Y Chandrachud]
…….…………………………...............................J.
 [Surya Kant]
…….…………………………...............................J.
 [Vikram Nath]
New Delhi;
April 27, 2022

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