The High Court of Jammu & Kashmir and Ladakh has ruled that Jammu and Kashmir Bank falls under the definition of an “industry” under Section 2(j) of the Industrial Disputes Act, 1947. The Court also held that employees working in non-managerial and non-supervisory positions can be treated as “workmen” under Section 2(s) of the Act.
Employees Sought Promotion
The case was filed by employees of Jammu and Kashmir Bank Limited who were seeking promotion to the post of Banking Associates. The employees said they should have been promoted on the same basis as the private respondents in the case.
The petitioners had joined the bank as Banking Attendants between 2000 and 2012. They were later promoted to the post of Assistant Banking Associates in 2017.
Career Progression Policy
The bank had introduced a Career Progression Policy for Banking Attendants. Under the policy, a Banking Attendant with a graduation degree and four years of service could become eligible for promotion as an Assistant Banking Associate.
After completing two years as an Assistant Banking Associate, the employee could become eligible for promotion as a Banking Associate.
In 2016, the bank invited applications from eligible employees for promotion. After a written test and interview, the petitioners were promoted as Assistant Banking Associates in 2017. After completing two years in the post, they became eligible for promotion as Banking Associates.
However, the petitioners claimed that while respondents 5 and 6 were absorbed as Banking Associates, they were not given the same promotion.
Employees Claimed They Were Denied Promotion
The petitioners argued that they were equally or more meritorious than the private respondents. They alleged that they were ignored for promotion because the private respondents were working at the corporate office and had access to senior officials.
The bank, however, raised a preliminary objection. It argued that the petitioners were “workmen” under the Industrial Disputes Act and that their promotion dispute was an “industrial dispute”. Therefore, according to the bank, the employees should approach the Industrial Tribunal instead of directly filing a writ petition before the High Court.
High Court Says Bank Is an Industry
A Bench of Justice Sanjay Dhar accepted the bank’s argument regarding the nature of the dispute. The Court noted that Jammu and Kashmir Bank is a banking company involved in banking activities and therefore falls within the definition of “industry” under Section 2(j) of the Industrial Disputes Act.
The Court further observed that the petitioners were working as Assistant Banking Associates and were not holding managerial or supervisory positions. Therefore, their salary level did not prevent them from being considered “workmen” under Section 2(s) of the Act.
Promotion Dispute Is an Industrial Dispute
The High Court said that the dispute was related to the terms of employment of the employees. Since the petitioners were workmen and the bank was their employer, the dispute regarding their promotion qualified as an “industrial dispute” under Section 2(k) of the Industrial Disputes Act.
The Court also referred to the Second and Third Schedules of the Act. It noted that the Third Schedule covers matters that can come before an Industrial Tribunal, including disputes relating to classification by grades.
According to the Court, classification by grades means placing workers into different ranks or levels based on their skills, duties or responsibilities. Therefore, disputes relating to the grading or classification of workmen can be referred to an Industrial Tribunal.
Employees Can Approach Industrial Tribunal
The petitioners argued that there was no Industrial Tribunal constituted by the Central Government in the Union Territory of Jammu and Kashmir.
The High Court, however, noted that under the Industrial Disputes Act, the Central Government can refer such disputes to a Labour Court or an Industrial Tribunal constituted by the State Government where applicable.
The Court also noted that an Industrial Tribunal headed by an officer of the rank of District Judge is functioning in Jammu and Srinagar. Therefore, the petitioners can seek reference of their dispute to the appropriate Industrial Tribunal.
High Court Dismisses Writ Petition
The Court relied on the Supreme Court’s judgment in Premier Automobiles Ltd. v. Kamlakar Shantaram Wadke, where it was held that courts generally should not entertain writ petitions concerning industrial disputes when an alternative statutory remedy is available under the Industrial Disputes Act, unless exceptional circumstances are shown.
The High Court found that the petitioners had not shown any exceptional circumstances that would justify hearing their writ petition.
The Court therefore dismissed the writ petition as not maintainable. It clarified that the employees can pursue their remedy under the Industrial Disputes Act by seeking reference of their dispute to the Industrial Tribunal at Jammu or Srinagar. The High Court did not express any opinion on whether the employees were actually entitled to the promotion they were seeking.
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