Maharashtra Labor Dispute Settled: Supreme Court Approves Permanent Employment for Daily Wage Workers

The Supreme Court of India, in the case of Ballarpur Industries Ltd. (BILT Graphic Paper Products Ltd.) vs. Maharashtra Lok Kamgar Sanghatana & Others, resolved a long-standing labor dispute concerning the regularization of daily wage workers. The ruling, delivered by Justices Kurian Joseph and Rohinton Fali Nariman, modified the High Court’s order and provided a mutually agreed settlement to finalize the litigation.

Background of the Case

The dispute originated in 1997 when the Maharashtra Lok Kamgar Sanghatana, representing workers of Ballarpur Industries Ltd., sought regularization of employment for daily wage workers. The case went through multiple legal proceedings, with workers demanding permanent employment under labor laws.

After nearly two decades of litigation, both parties reached a compromise during Supreme Court proceedings. The company agreed to regularize eligible workers while addressing financial concerns related to those who had retired, resigned, or passed away during the litigation.

Key Legal Issues

• Should daily wage workers be granted permanent employment under labor laws?
• Can a mutually agreed settlement replace judicial determination in labor disputes?
• Should compensation be provided to workers who ceased employment before regularization?

Arguments of the Parties

Petitioner’s Arguments (Ballarpur Industries Ltd.)

The company argued that financial constraints and operational needs influenced employment decisions. However, it agreed to regularize daily wage workers as of January 1, 2010, to settle the prolonged litigation.

Respondent’s Arguments (Maharashtra Lok Kamgar Sanghatana)

The labor union contended that workers had served for several years without job security and demanded permanent employment. They welcomed the settlement but sought fair compensation for workers who had ceased employment before regularization.

Supreme Court’s Observations

Justice Kurian Joseph, delivering the judgment, stated:

“Thanks to the co-operation extended by the parties involved and the support of the learned senior counsel for both the parties, we are happy that an amicable solution has evolved by which a litigation which started in the year 1997, can be put an end to.”

The Court appreciated the efforts of both sides in reaching a resolution and acknowledged the company’s commitment to settling claims fairly.

Final Verdict

The Supreme Court modified the High Court’s order and ruled that:

• All daily wage workers on the company’s rolls as of January 1, 2010, shall be made permanent.
• Workers who retired, resigned, or passed away between August 24, 2009, and January 1, 2010, shall receive appropriate compensation.
• The impugned order dated December 18, 2015, was modified to incorporate these changes.

The appeal was disposed of with no order as to costs.

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Download Judgment: Ballarpur Industries vs Maharashtra Lok Kamg Supreme Court of India Judgment Dated 02-03-2016-1741853892786.pdf