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Labour & Industrial LawSupreme Court of India

Punjab National Bank v. PNB Canteen Workers Union (Calcutta) & Ors.

Civil Appeal · 2018 INSC 863Decided 25 Sept 2018
Civil Appeal No. 5112 of 2017
Justice Kurian Joseph · Justice Sanjay Kishan Kaul

Background

Punjab National Bank had earlier absorbed 23 of its canteen workers into regular service. This long-running dispute concerned 29 more canteen workers (represented through their union) who were similarly seeking absorption into the Bank's regular workforce. By the time the matter reached the Supreme Court, the only surviving issue was whether these 29 workers were entitled to the same relief.

Decision Breakdown

The Supreme Court invoked its special constitutional power under Article 142 to do complete justice and bring finality to the long-pending dispute. It directed the Bank to appoint all 29 canteen workers forthwith, on the condition that they be paid at least half the wages of Class-IV employees (or the prevailing state minimum wage, whichever is higher), and that they receive the same other benefits already extended to the 23 workers absorbed earlier, effective from the same date as those 23 workers' appointments. In exchange, it directed that no further or additional claims could be raised by the workers on this count. The High Court's judgment under appeal was set aside, and the appeal was finally disposed of on these terms.

Lesson Learnt

The Supreme Court can use its Article 142 powers to craft a practical, final settlement in long-running labour disputes, balancing workers' claims to parity and absorption against finality for the employer, rather than leaving the matter to further rounds of litigation.

Punjab National Bank v. PNB Canteen Workers Union (Calcutta) & Ors. – Legal Case Shots | LegalAware