1978 (1) TMI 169 - SC - Indian Laws

Summary

Issues:
1. Jurisdictional issue of whether the respondent workman was employed by the bank.
2. Whether the driver was under the control and direction of the bank.
3. Interpretation of employment relationship based on control and supervision.
4. Consideration of social justice in industrial jurisprudence.
5. Implications of allowances for private employment by senior officers.
6. Revising policies for fair employment practices and preservation of institutional property.

Analysis:
1. The Supreme Court addressed the jurisdictional issue of whether the respondent workman was employed by the bank in an industrial dispute regarding the termination of the driver's services. The Industrial Tribunal concluded that the driver was employed by the bank, leading to a direction for reinstatement and back wages. The Management contended that the driver was employed by the Area Manager, supported by an allowance provided by the bank for personal use. The Court analyzed the control and supervision aspects to determine the employment relationship.

2. The Court emphasized the significance of control and direction in determining employment status, citing previous judgments. Factors such as the paymaster, dismissal authority, duration of service, and machinery used are considered. The Court highlighted that control and direction are crucial factors in establishing the employer-employee relationship. The evidence in the present case indicated that the driver's salary was paid by the Area Manager, who engaged the driver privately using the allowance provided by the bank, leading to the conclusion that the driver was not employed by the bank.

3. The Court discussed the social justice aspect in industrial jurisprudence, emphasizing the need to prevent individual injustice and exploitation. The Court expressed concerns about the potential abuse of allowances for private employment by senior officers in public sector undertakings. The Court suggested that institutions should engage their own staff to ensure fair employment practices and protect institutional property.

4. The judgment highlighted the importance of revising policies to promote fair employment practices and preserve institutional property. While deciding the specific case, the Court encouraged institutions to adopt commendable policies in the future. The Court acknowledged the assurance given by the Management to pay a gratia sum to the driver and provide an opportunity for absorption in the Bank's service.

5. The Court allowed the appeal of the Management, emphasizing the considerations of social justice in addition to technical evidence. The Court recorded the assurance given by the Management regarding payment and absorption of the driver. The Court also addressed the costs payable to the workman, ensuring that the balance amount would be made good by the Management within a specified timeframe.