U.P. State of Road Transport Corporation & Anr Vs. U.P. Parivahan Nigam
Shishukhs Berozgar Sangh & Ors [1995] INSC 41 (12 January 1995)
Hansaria
B.L. (J) Hansaria B.L. (J) Kuldip Singh (J) Majmudar S.B. (J)
CITATION:
1995 AIR 1115 1995 SCC (2) 1 JT 1995 (2) 26 1995 SCALE (1)127
ACT:
HEAD NOTE:
1. The
material resources of this country are limited.
Indeed
this is so for every country. The resource crunch is, however, acute for us ;
and so whenever and wherever public money is invested, it has to be seen that
there is a proper utilisation of the same in the sense that the public
ultimately gets benefit of the same.
2.
This prelude is to highlight the idea which we propose to focus as we proceed
to bring home the need to make the investment in apprentice trainees useful to
the society , which would be so when the training received by them is put to
social use. We are putting this aspect of the matter at the forefront because
one of the appellants namely, the U.P.State Road Transport Corporation, (herein
after 'the Corporation), has made a grievance about some directions given by
the Allahabad-High 28 Court to employ those who had received training in the
workshop of the Corporation. The direction has been given mainly at the call of
promissory estoppel which is not applicable according to the Corporation. We
would agree with this stand of the Corporation; but then, another reason
advanced for the direction is also spending of money on imparting the training
to the apprentice, which aspect is relevant as already alluded, and which we
propose to buttress further.
3.
Before doing so, let the objects behind the enactment of Apprentices Act, 1961
(for short, 'the Act ') and its main provisions along with what has been stated
in the Apprenticeship Rules 1991 ('the Rules') be noted. The need for the Act
was felt as mentioned in the Statement of the Objects and Reasons, to ensure
that the training of apprentices streamlined in the back drop of increasing
demand for skilled craftsman in the wake of large scale industrial development
of the country. The Act, therefore, proposed to provide for the regulation and
control of training of apprentices. The amendment of the Act in 1973 by which
training of graduate engineers and diploma holders was introduced was for
"improving their employment po- tential" and to solve the immediate
unemployment problem.
The
amendment in 1986 aimed to provide "on the job training" to the
products of vocational streams so that adequate competence and skill required
for various occupations are acquired leading to "suitable employment or
self-employment opportunities" in organised industries etc.
4.
With the aforesaid objects in forefront, which the Act seeks to achieve through
its various amendments, let the relevant important provisions be noted. Section
4 requires entering into a contract before an apprentice is admitted to undergo
training. By the force of Rule 6(2) of the Rules, the Central Government has
even specified a model contract. Section 7 deals with the termination of
apprenticeship contract and Rule 8 has laid down the quantum of compensation to
be paid in case of termination. Rule 5 even visualises reservation for
Scheduled Castes and Sched- uled Tribes trainees. A references to Rule 7 shows
that the period of training extends upto four years in some cases; and as per
Rule 11 the trade apprentices are required to be paid stipend varying from
Rs.290 to Rs. 700 per month. Rule 3 deals with the standard of education
necessary for making a person eligible for being engaged as a trade apprentice
and a glance of Schedules 1 and 1-A shows that the minimum educational
qualification required is matriculation or its equivalent or 10th Class under
10+2 system, which qualification in case of technician is even graduation.
5.
From the aforesaid, it is clear that the training imparted is rather exhaustive
and elaborate. Sufficient amount of money is also spent on the trainees by way
of payment of stipend to them. What is more, there is an obligation on the
employers to provide an apprentice with training in his trade in accordance
with the provisions of the Act-Schedule V to the Rules containing details of
the obligations; and the employer Is also required to ensure that a person
possessing prescribed qualification is placed in charge of training of the
apprentices. The Act seeks to enforce these obligations on the pain of even
prosecution, about which mention has been made in Section 30 of the Act.
29
6.So the legislature did desire and make adequate provisions to see that the
competent persons receive due training to cater the need of increasing demand
for skilled craftsman on one hand, and to improve the employment potential of
the trainees on the other. Good amount of money, which would be public money in
case of public bodies like the Corporation, is also spent on training the
apprentices. Further, during the period of training, the apprentices are put
under a discipline akin to that of regular employee in as much as Section 17
states that in all matters of conduct and discipline the apprentice shall be
governed by the rules and regulations applicable to employees of the
corresponding category in the establishment in which the apprentice is
undergoing training. Section 16 requires payment to the apprentice in case of
injury due to accident arising out of and in the course of training, in
accordance with the provision of the Workmen Compensation Act, 1924, modified
by the Act. The Rules have dealt with the hours of work (Rule 12) and grant of
leave (Rule 13) also.
7.The
aforesaid provisions arc sufficiently indicative of the fact of the fact that
the training imparted is desired to be result-oriented; and the trainees are
treated as akin to employees. Even so Section 22 of the Act states, and it is
this provision which has been pressed in to service by the appellants that it
shall not be obligatory on the part of the employer to offer any employment to
apprentice who has completed the period of his apprenticeship training in this
establishment unless there be a condition in the contract to the contrary. The
model contract form finding place in Schedule VI of the Rules echoes the voice
of section 22(1) In its para 2.The Corporation has placed on record a model
contract form entered into between it and the trainees which also states about
the aforesaid non- obligation.
8.On
the strength of these provisions, the contention advanced is that the High
Court could not have directed to give employment to the trainees. Reference to
the impugned judgment, however, shows that while giving the direction the Court
was conscious of what has been provided in Section 22 of the Act; even so, the
direction was given on the basis principally of doctrine of promissory estoppel
as already noted. As to this view taken by the High Court, we state that,
according to us, the direction in question could not have been given because of
this principle, despite what was given out by the Joint General Manager of the
Corporation in his Circular letter dated 1977 referred in the judgment.
9.We
have said so as reference to that Circular shows that all it has done is to lay
down the procedure for the selec- tion of the apprentices, which did not
require the apprentices to undergo any written examination for selection and
their routing through employment exchange was done away with. Something was
said about the age also. No promise of employment can be read in this Circular
which is of 21st
December,1977. We
would say the same about the Memo of the Directorate of Training and Employment
of the State of U.P. dated 21st September, 1977 as falls short of any promise
of employment, because what it says is that full efforts should be made to
provide the trainees with service- In this Memo, what had been stated In para 2
of the Government of India's letter dated 31.8.1978 had been quoted in SOD
which it was mentioned that the scheme of training had been introduced to
promote chances of employment of educated employed persons; and that if
employers would not provide employment to the qualified apprentices this would
amount to destruction of developed human resources. It is because of this that
the Government of India expressed the desire that other things being equal
trained apprentices should be given preference in case of employment".
10. For
a promise to be enforceable, the same has, however to be clear and unequivocal.
We do not read any such prom- ise in the aforesaid three documents and we,
therefore, hold that at the call of promissory estoppel, the direction in
question could not have been given by the High Court. But then, we are left in no
doubt that the Government of India did desire that preference should be given
to the trained apprentices and it is because of this that the State Government
stated in its letter No.735/38-6-16 (T)-79 dt. 12.11.79 that where such
apprentices arc available, direct recruitment should not to be made. Indeed,
the Government of India in its letter dated 23.3.1983 even desired reserva- tion
of 50 per cent vacancies for apprentice trainees.
11. Theaforcsaid
being the position it would not be just and proper to go merely by what has
been stated in Section 22(1) of the Act, or for that matter, in the model
contract form. What is indeed required is to see that the nation gets the
benefit of time, money and energy spent on the trainces, which would be so when
they are cm'ployed in preference to non-trained direct recruits. This would
also meet the legitimate expectations of the trainees.
12. In
the background of what has been noted above, we state that the following would
be kept in mind while dealing with the claim of trainees to get employment
after successful of their training:- (1)Other things being equal, a trained
apprentice should be given preference over direct recruits.
(2)For
this, a trainee would not be required to get his name sponsored by any
employment exchange. The decision of this Court in Union of India. v. Hargopal,
AIR 1987 SC 1227, would permit this.
(3)If
age bar would come in the way of the trainee, the same would be relaxed in
accordance with what is stated in this regard, if any, in the concerned service
rule. If the service rule be silent on this aspect, relaxation to the extent of
the period for which the apprentice had undergone training would be given.
(4)
The conccrned training institute would maintain a list of the persons trained
year wise. The persons trained earlier would be treated as senior to the
persons trained later. In between the trained apprentices, preference shall be
given to those who are senior.
13. In
so far as the cases at hand are concerned, we find that the Corporation filed
an additional affidavit in C.A. Nos. 4347-4854 of 1990 as desired by the Court
on 20th October, 1992 giving position regarding vacancies in the posts of
conductors and clerks. If such posts be still va- cant, we direct the Corporation to act in accordance with what has been
stated above regarding the entitlement of the trainees. We make it clear that
while con- 31 sidering the cases of the trainees for giving employment in
suitable posts, what has been laid down in the Service Regulations of the Corporation
shall be followed, except that the trainees would not be required to appear in
any written examination, if any provided by the regulations. It is apparent
that before considering the cases of the trainees, the requirement of their
names being sponsored by the employment exchange would not be insisted upon. In
so far as the age requirement is concerned, the same shall be relaxed as
indicated above.
14.
The appeals/Special leave petitions are disposed of which the aforesaid
directions and observations by modifying the impugned judgment accordingly. In
the facts and circumstances of the case, we leave the parties to tear their own
costs.
I.A.
Nos. 11 to 21, 30 of 1991, 39 and 40 of 1992
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