As per case facts, the petitioner, Pune Zilla Parishad, challenged a Labour Court award that granted lump sum compensation to a daily-rated worker. The worker's services were allegedly terminated, and ...
WP-4422-22 & connected-J.doc
Sayali
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO. 4422 OF 2022
The Executive Engineer,
Pune Zilla Parishad (R & B),
Yashwantrao Chavan Bhawan,
Pune … Petitioner
V/s.
Shivaji Kisan Danawale
Previously Residing at Post Bare- Sind,
Taluka Bhor, District- Pune.
Currently Residing at c/o Shri. Dixit,
Secretary, Pune Zilla Majdoor Sabha,
54, Budhwar Peth, Pune 411 002.
... Respondent
WITH
WRIT PETITION NO. 9197 OF 2018
The Executive Engineer … Petitioner
V/s.
Suresh Ramchandra Sonawane … Respondent
WITH
WRIT PETITION NO. 12256 OF 2019
The Executive Engineer … Petitioner
V/s.
Popat Dattatraya Sonawane … Respondent
WITH
WRIT PETITION NO. 9199 OF 2018
The Executive Engineer … Petitioner
V/s.
Sopan Baburao Roman … Respondent
WITH
1
SAYALI
DEEPAK
UPASANI
Digitally signed by
SAYALI DEEPAK
UPASANI
Date: 2026.05.07
11:52:17 +0530
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WRIT PETITION NO. 9895 OF 2018
The Executive Engineer … Petitioner
V/s.
Kausalaya Nivrutti Gaikwad … Respondent
WITH
WRIT PETITION NO. 9893 OF 2018
The Executive Engineer … Petitioner
V/s.
Dhondabai Balu Gole … Respondent
WITH
WRIT PETITION NO. 9892 OF 2018
The Executive Engineer … Petitioner
V/s.
Dinkar Hari Biramane (Since Deceased
thr. Lrs) Shankar Hari Birhamane … Respondent
WITH
WRIT PETITION NO. 12261 OF 2019
The Executive Engineer … Petitioner
V/s.
Tukaram Appaji Badak … Respondent
WITH
WRIT PETITION NO. 12257 OF 2019
The Executive Engineer … Petitioner
V/s.
Indubai Dinkar Bodake … Respondent
WITH
WRIT PETITION NO. 12258 OF 2019
The Executive Engineer … Petitioner
V/s.
Bhanudas Vishnu Awale … Respondent
WITH
WRIT PETITION NO. 12259 OF 2019
The Executive Engineer … Petitioner
2
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V/s.
Narayan Dagadu Kindre (Since Decd.)
Thr. Lrs Kalawati Narayan Kindre … Respondent
WITH
WRIT PETITION NO. 12260 OF 2019
The Executive Engineer … Petitioner
V/s.
Suman Baburao Kamble … Respondent
WITH
WRIT PETITION NO. 9198 OF 2018
The Executive Engineer … Petitioner
V/s.
Sudam Shrirang Sonawane … Respondent
WITH
WRIT PETITION NO. 9894 OF 2018
The Executive Engineer … Petitioner
V/s.
Anand Yashwant Danawale … Respondent
WITH
WRIT PETITION NO. 10843 OF 2018
The Executive Engineer … Petitioner
V/s.
Vitthal Sampat Mohite … Respondent
WITH
WRIT PETITION NO. 11244 OF 2018
The Executive Engineer … Petitioner
V/s.
Nathaba Kondiba Gulamkar (deceased)
Wife – Tarabai Nathaba Gulamkar … Respondent
Mr. Ravindra S. Pachundkar, for petitioner.
Mr. Nitin A. Kulkarni, for respondent.
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CORAM :AMIT BORKAR, J.
RESERVED ON :APRIL 30, 2026
PRONOUNCED ON:MAY 7, 2026
JUDGMENT:
1.Writ Petition Nos.9894 of 2018, 10843 of 2018 and 11244 of
2018 are not on board. By consent, taken on board for hearing
and final disposal.
2.Since the Court finds that a common question of law arises
for consideration in the present group of writ petitions, it is
considered appropriate, to dispose of all the petitions by this
common judgment and order. For the sake of convenience and
clarity, Writ Petition No. 4422 of 2022 is treated as the lead matter,
and the facts therein are referred to as illustrative of the
controversy involved in the connected petitions.
3.By the present writ petitions instituted under Articles 226
and 227 of the Constitution of India, the petitioners have invoked
the supervisory and writ jurisdiction of this Court, calling in
question the legality, correctness, and propriety of the judgment
and Award dated 03rd August 2017, rendered by the learned
Labour Court, Pune in Reference (IDA) No. 224 of 1991. The
challenge is essentially directed against the findings recorded and
the relief granted by the Labour Court in exercise of its
adjudicatory powers under the Industrial Disputes Act, 1947.
4.The facts giving rise to the present petitions, stated in brief,
indicate that the learned Labour Court, Pune partly allowed
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Reference (IDA) No. 224 of 1991 and directed the petitioner to pay
a lump sum compensation of Rs. 3,00,000/- to the respondent
second party, towards monetary benefits for the remainder of his
life, along with costs quantified at Rs. 5,000/-. The petitioner,
namely Pune Zilla Parishad, is an instrumentality functioning
under the directions and control of the State of Maharashtra,
primarily entrusted with the execution of developmental and
infrastructural works in rural areas. It is the case of the petitioner
that, whenever construction work relating to roads was
undertaken, the concerned Assistant or Junior Engineer of the
respective area engaged daily rated workers who voluntarily
offered themselves for such work. This engagement was stated to
be in furtherance of a governmental policy aimed at providing
employment opportunities at the village level. The said work was
executed through daily rated labourers on muster roll, and upon
completion of the work, the engagement of such workers
automatically came to an end. It is further contended that such
engagement was purely on a daily wage basis, contingent upon
availability of work, and did not give rise to any employer-
employee relationship in the strict legal sense between the
petitioner and the said workers. The conditions governing such
employment were regulated by the “Kalelkar Award,” an award
published under Section 17 of the Industrial Disputes Act, 1947.
5.In terms of the Kalelkar Award, specific provisions were
made in respect of daily rated workers, stipulating that those who
had completed five years of continuous service, with not less than
240 days of work in each year, would be considered for absorption
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on the regular temporary establishment, subject to approval by the
State Government, upon which they would become entitled to
permanency benefits. The expression “continuous service” was
understood to mean completion of more than 240 days of work in
each year for a continuous period of five years. In the present case,
the respondent second party was engaged as a daily rated worker
in connection with the construction of the Bhor–Pasure Road
during the year 1985, and was paid wages on muster roll basis.
The muster roll records for the period between 1984 and 1989, as
placed before the Labour Court, indicate that the respondent had
worked for varying number of days in each year, namely 43 days in
1984, 67 days in 1985, 231 days in 1986, 53 days in 1987, 110
days in 1988, and 71 days in 1989. These figures were relied upon
to demonstrate the nature and extent of engagement of the
respondent during the relevant period.
6.The respondent second party thereafter raised an industrial
dispute by filing a complaint before the Conciliation Officer,
alleging that his services had been illegally terminated by the
petitioner and seeking reinstatement with full back wages. Upon
failure of conciliation, the learned Deputy Commissioner of Labour,
Pune, by order dated 05th July 1991, referred the dispute for
adjudication to the Labour Court, Pune under Section 10(1)(c)
read with Section 12(5) of the Industrial Disputes Act, 1947,
treating it as a dispute falling within the ambit of Section 2-A of
the said Act. The reference framed for adjudication required the
Labour Court to determine whether the termination of services of
the respondent on 09th December 1989 was legal and justified,
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and if not, whether he was entitled to reinstatement with
continuity of service and full back wages for the intervening
period.
7.The respondent second party filed his Statement of Claim
before the Labour Court on 29th August 1991, wherein it was
specifically admitted that he had commenced working with the
petitioner from the year 1985 and had been engaged as a daily
rated worker for a period exceeding four years, receiving wages at
the rate of Rs. 25/- per day. It was his case that his services were
orally terminated on 09th December 1989 by the Deputy Engineer
on the ground that the muster roll was closed. The petitioner, in its
Written Statement dated 04th August 1992, contested the claim by
asserting that the nature of work undertaken was not continuous
throughout the year, but was dependent upon workload,
availability of funds, and seasonal conditions, particularly noting
that work came to a complete standstill during the rainy season. It
was further contended that the respondent did not satisfy the
eligibility criteria prescribed under the Kalelkar Award for grant of
permanency benefits, and that work was allotted to him only as
and when available. The allegation of oral termination was
specifically denied. The petitioner also asserted that the provisions
of Section 25F of the Industrial Disputes Act, 1947 were not
attracted to the facts of the present case.
8.By a common Award dated 05th October 1998, rendered in
respect of 16 workers including the respondent herein, the Labour
Court, Pune rejected the claims on the ground that the workmen
were engaged on a casual and daily wage basis and had not
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completed the requisite 240 days of continuous service in each
year for a continuous period of five years. The said Award was
subsequently challenged, and upon final hearing before this Court
on 19th August 2016, it was observed that the Labour Court had
relied upon muster rolls and attendance records which were not
duly proved by the petitioners. In view thereof, this Court set aside
the Award dated 05th October 1998 and remanded the matter to
the Labour Court, Pune for fresh adjudication on merits, in
accordance with law, granting liberty to the parties to lead
evidence and prove the documents placed on record.
9.Upon remand, the learned Presiding Officer, Labour Court
No. 3, Pune, by the impugned Award dated 03rd August 2017 in
Reference (IDA) No. 224 of 1991, partly allowed the reference and
directed the petitioner to pay a lump sum compensation of Rs.
3,00,000/- to the respondent second party as monetary benefit for
the remainder of his life. It is this Award which is the subject
matter of challenge in the present writ petitions, the petitioners
contending that the same is unsustainable in law and liable to be
quashed and set aside.
10.Mr. Ravindra Pachundkar, learned Advocate appearing on
behalf of the petitioner, submitted that the learned Labour Court,
Pune failed to properly appreciate the governing framework
applicable to daily rated employees. It was contended that, as per
the settled policy reflected in the Kalelkar Award, only those daily
wage workers who have completed 240 days of work in each year
for a continuous period of five years are eligible to be taken on the
temporary establishment and, upon obtaining requisite sanction
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from the State Government, to be conferred permanency.
According to the learned counsel, the Labour Court ought to have
duly considered that the engagement of the respondent was purely
contingent upon availability of work and that work was, in fact,
offered to him whenever such work existed. It was further urged
that the Zilla Parishad operates within fixed norms governing
regularisation of daily rated workers, and in the absence of the
respondent fulfilling such prescribed conditions, no right could be
claimed. The Labour Court, it was submitted, failed to properly
evaluate the Inspection Report, muster rolls, and statements
indicating the actual number of days worked by the respondent,
which were material for determining his entitlement.
11.Elaborating further, the learned counsel submitted that the
respondent had entered the witness box on 20th June 1997 and
was subjected to cross-examination. In the course of his evidence,
the respondent admitted that he had joined the services of the
petitioner in April 1985. He further acknowledged that one
Rairikar Mistry used to record daily attendance in the muster roll
and that the signatures of the workers were obtained therein at the
time of disbursement of wages. It was also admitted by the
respondent that, at the time of deposing in the year 1997, he was
engaged in labour work for his livelihood. Significantly, in cross-
examination, the respondent conceded that he was not a
permanent employee of the Pune Zilla Parishad. Placing reliance
on these admissions, the learned counsel submitted that the
findings recorded by the Labour Court are unsustainable and that
the impugned judgment and Award deserve to be quashed and set
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aside.
12.Per contra, Mr. Nitin A. Kulkarni, learned counsel appearing
on behalf of the respondent, opposed the petition and submitted
that the material on record had not been properly appreciated by
the petitioner. It was contended that the second party had
produced an Inspection Report prepared on the basis of available
muster rolls in Reference (IDA) No. 223 of 1991, which indicated
that the muster rolls for the entire period from 1981 to 1989 were
not available on record. This position, according to the learned
counsel, was contrary to the stand of the first party that all muster
rolls for the said period were available. It was further pointed out
that the statement produced by the first party itself indicated that
the respondent had worked for 43 days in 1984, 67 days in 1985,
231 days in 1986, 53 days in 1987, 110 days in 1988, and 71 days
in 1989, thereby demonstrating the extent of his engagement.
13.The learned counsel for the respondent further submitted
that the most crucial evidence in the present matter pertains to the
muster rolls in Reference (IDA) No. 223 of 1991, on which both
parties have placed reliance. Upon scrutiny of the said muster rolls,
it emerges that they pertain to the period from 29th September
1981 to 26th March 1989. However, several periods are
conspicuously absent, namely from 21st November 1981 to 23rd
April 1982, from 25th May 1982 to 04th March 1983, during April
1983, from 30th January 1987 to 16th June 1987, from 19th
August 1987 to 05th November 1987, from 12th June 1988 to 31st
July 1988, and from 26th March 1989 to 09th December 1989. It
was also pointed out that certain muster rolls are missing in serial
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sequence. According to the respondent, he was engaged on the
Bhor–Pasure Road, and the muster rolls pertaining to such work
for the relevant period are not fully available. The first party, it was
urged, has relied only on the oral evidence of its witnesses, namely
Mr. Malunde and Ms. Naikwadi, while taking the stand that the
original muster rolls were destroyed in a fire. It was further
submitted that the last available muster roll is dated 27th March
1989, and as per the entries therein, the respondent had worked
for 71 days in the year 1989 up to that date. Consequently, the
muster rolls for the period from 27th March 1989 till 09th
December 1989, which is the date of alleged termination, are
admittedly not on record.
14.It was further submitted that a comparative reading of the
statements and the Inspection Report in Reference (IDA) No. 223
of 1991 reveals discrepancies in the total number of days of work
attributed to the respondent. Taking into account the fact that the
respondent’s services came to be terminated in the year 1989, the
prolonged litigation that ensued thereafter, including dismissal of
the reference, its challenge before this Court, and subsequent
remand, as well as the considerable lapse of time during which the
respondent pursued the proceedings from 1991 for a period of
about 26 years, it was contended that the respondent had lost his
productive years in prosecuting the dispute. It was thus urged that
the grant of lump sum compensation of Rs. 3,00,000/- by the
Labour Court was justified as a measure to enable the respondent
to sustain himself in the remaining part of his life. It was further
submitted that the award of simple interest at the rate of 12% per
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annum from the date of the Award till realization, along with costs
of Rs. 5,000/-, was also warranted in the facts of the case. On
these grounds, the learned counsel prayed that the present writ
petitions be dismissed.
REASONS AND ANALYSIS:
15.I have given careful consideration to the rival submissions
advanced on behalf of both sides.
16.The evidence led by the respondent require close
appreciation. It is correct that in his deposition he clearly stated
that he joined service sometime in April 1985. He also stated that
attendance was recorded in muster roll and that signatures were
taken at time of payment. This part of evidence shows that system
of record keeping was in existence and that his presence on work
was being noted. Further, he admitted that he was not permanent
employee. At first sight, this admission may appear to weaken his
claim. It does reduce the strength of any claim for permanency. But
it cannot be stretched beyond its proper limit. From these very
admissions, one important fact becomes clear. There was a
working arrangement between parties. He was engaged and he
worked for wages on daily basis over period of time. Therefore,
even if he was not permanent, it does not follow that his
disengagement cannot be examined by Court. A daily rated worker
also has certain protection in law. If his service is brought to end in
arbitrary or unfair manner, he can question it. Thus, the admission
of non permanency cannot automatically defeat his grievance. The
Labour Court, therefore, was justified in separating the question of
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permanency from question of termination. Both are different issues
and must be examined independently.
17.The reliance placed by the petitioner on muster rolls and
statement of working days also needs scrutiny. At first glance,
documentary material gives impression of calculation of days
worked. However, when the record is closely examined, certain
serious deficiencies become visible. The muster rolls are not
complete. Some periods are entirely missing. Some pages are not
available. Serial order is not properly maintained. Both the Labour
Court and this Court at earlier stage have noticed this defect. The
records do not cover entire period from 1981 to 1989. The last
available muster roll is dated 27th March 1989. After that date, till
09th December 1989, which is crucial period, no muster roll is
placed on record. This absence is significant. In a case where
calculation of days is issue, incomplete record creates doubt. The
employer is expected to maintain such documents carefully. When
such record is not produced in full, it becomes difficult for Court to
accept the employer’s version without reservation. The petitioner
cannot rely on deficiency in respondent’s proof while itself
withholding or failing to produce complete record. In such
circumstances, strict proof is not possible. The Court has to rely on
available material and draw reasonable inference. What is required
is reasonable satisfaction on basis of evidence.
18.The argument of the petitioner that there was no termination
because work was given whenever available also requires careful
consideration. It is true that work of such nature may depend upon
availability and season. This submission has some substance. But it
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does not fully answer the case. If a worker has been engaged for
several years and then suddenly stops getting work, the employer
is expected to explain the reason. Silence on this aspect creates
doubt. The respondent has specifically stated that he was orally
terminated on 09th December 1989. The petitioner has denied
this. But such denial is not supported by complete documentary
record. Since muster rolls for relevant period are not produced, the
Court is left with incomplete picture. In such situation, neither
version can be accepted in full without caution. The respondent’s
case is not proved in strict sense. At the same time, it is not
disproved. There is a grey area. In such grey area, Court must rely
on probabilities and surrounding circumstances rather than strict
proof alone.
19.The submission of the respondent regarding inconsistency
between inspection report and statement of working days also
deserves to be noticed. There appears to be variation in figures.
This shows that the record is not consistent. However, this
inconsistency cannot be treated as fatal. In industrial matters,
records are imperfect. Workman usually depends on documents
maintained by employer. If such documents are incomplete or
inconsistent, the workman cannot be blamed entirely. Therefore,
the Court must look at broader picture. In present case, it appears
probable that the respondent was engaged as daily rated worker
over number of years on road construction work. It is not
established that he completed requirement of continuous 240 days
for five years. But it is also not established that he was not working
or that he voluntarily left. Thus, situation arises where part of his
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case is acceptable and part is not. In such situation, partial
acceptance becomes necessary.
20.The long duration of litigation also has significant bearing on
relief. The dispute began in 1991. It continued for many years. The
matter was decided once, then challenged, then remanded, and
decided again. By the time final award came in 2017, almost entire
working span of respondent had passed. In such circumstances,
directing reinstatement would not be practical. It would also not
serve real purpose. The Labour Court appears to have taken note
of this reality. Instead of granting reinstatement, it awarded lump
sum compensation. This shows that the Labour Court was
conscious of changed situation. Compensation is given as
substitute remedy when original relief becomes impracticable.
Considering long delay and age of respondent, such approach
appears reasonable and justified.
21.The criticism of the petitioner that the entire claim ought to
have been rejected cannot be accepted. The record is not one-
sided. It contains deficiencies on both sides. The respondent has
not proved case of permanency. The petitioner has not proved
complete absence of continuous engagement. In such mixed
situation, a balanced view is required. The Labour Court has
adopted such balanced approach. It has not granted permanency. It
has not ordered reinstatement. It has only granted compensation.
This indicates that it has weighed evidence carefully. The approach
cannot be said to be arbitrary. It is based on equitable
consideration and available material. Therefore, interference with
such finding is not warranted.
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22.In view of the foregoing discussion and upon overall
consideration of the material on record, the following order is
passed:
(i) The writ petitions stand dismissed;
(ii) The impugned Judgment and Award dated 3rd August
2017 passed by the Labour Court, Pune in Reference (IDA)
No. 224 of 1991, 223 of 1991, 230 of 1991, 234 of 1991 ,
236 of 1991, 238 of 1991 is upheld;
(iii) The petitioner shall comply with the Award, if not
already complied, within a period of eight weeks from the
date of this order;
(iv) In the event of failure to comply within the stipulated
period, the amount shall carry interest at the rate as awarded
by the Labour Court, till realization;
(v) Rule is discharged. No order as to costs.
(AMIT BORKAR, J.)
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