M/S. INDIAN DRUGS AND PHARMACEUTICALS LTD. versus DEVKI DEVI AND ORS.

M/S. INDIAN DRUGS AND PHARMACEUTICALS LTD. versus DEVKI DEVI AND ORS.

Respondents were not appointed under a scheme for compassionate appointment, but as contractors on clear and unambiguous terms. The appellant did not have any rule or scheme for compassionate appointment, and there was no settlement as to employment under Section 2(p) of the Industrial Disputes Act. Cessation of their work pursuant to termination of contracts did not amount to retrenchment. Labour Court and High Court erred in finding otherwise.

Parties
Appellant: Indian Drugs and Pharmaceuticals Ltd.; Respondent: Devki Devi and Ors.
Jurisdiction
India
Judgment Date
05 July 2006
Procedural Posture
Civil Appeal / Appeal From High Court Judgment and Labour Court Award
Outcome
Appeals allowed
Legal Topics
Compassionate Appointment, Contract Labour, Retrenchment, Industrial Disputes
Labour Law Compassionate Appointment Contract Labour Retrenchment Industrial Disputes

Case Brief

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Parties

Indian Drugs and Pharmaceuticals Ltd.

Appellant

Devki Devi and Ors.

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment and Labour Court Award

Legal Issues

  1. 1 Whether respondents were appointed on compassionate grounds or as job contractors
  2. 2 Whether cessation of work amounted to retrenchment under U.P. Industrial Disputes Act, 1947
  3. 3 Whether the respondents were 'workmen' under industrial law

Ratio Decidendi

Respondents were not appointed under a scheme for compassionate appointment, but as contractors on clear and unambiguous terms. The appellant did not have any rule or scheme for compassionate appointment, and there was no settlement as to employment under Section 2(p) of the Industrial Disputes Act. Cessation of their work pursuant to termination of contracts did not amount to retrenchment. Labour Court and High Court erred in finding otherwise.

Court Disposition

Appeals allowed

Orders

  • Labour Court award and High Court judgment set aside
  • No order as to costs