J&K Bank Is “Industry” And Its Employees Are "Workmen" Irrespective Of Income Under Industrial Disputes Act: J&K&L High Court
The Bench noted that the dispute is amenable to the jurisdiction of Industrial Tribunal constituted in terms of Section 7A, Industrial Disputes Act read with Third Schedule of the Act.
Justice Sanjay Dhar, Jammu and Kashmir and Ladakh High Court
The Jammu & Kashmir and Ladakh High Court has held that employees of Jammu and Kashmir Bank Limited, not working in managerial or supervisory capacity, irrespective of their salaries qualify as "workmen" under the Industrial Disputes Act, 1947. Dismissing a petition filed by the bank staff seeking promotion to the cadre of Banking Associates, the Bench said that the dispute is an "industrial dispute" governed by statutory labor laws.
Consequently, any service grievances regarding their promotion or grading must be resolved through an Industrial Tribunal rather than a writ petition before the High Court.
A Single Bench of Justice Sanjay Dhar observed, “The respondent-Jammu and Kashmir Bank, admittedly, is a banking company which is dealing in the business of banking. Therefore, it falls within the definition of ‘industry’ as contained in section 2(j) of the Industrial Disputes Act…The petitioners are working as Assistant Banking Associates and they are not working in the respondent Bank in any managerial or supervisory capacity. Therefore, irrespective of their income which they are drawing as salary from the respondent Bank, they qualify to be workmen within the meaning of Section 2(s) of the Industrial Disputes Act. In fact, their status as workmen is not even being disputed by the petitioners themselves”.
Senior Advocate G. A. Lone appeared for the petitioner and Advocate Adil Asmi appeared for the respondent.
“…Since the dispute between the petitioners who happen to be the workmen and the respondent Bank which happens to be their employer, pertains to the terms of their employment, as such, the said dispute qualifies to be an industrial dispute… Therefore, in terms of the provisions of the Industrial Disputes Act, the dispute which has arisen between the petitioners and the respondent Bank is amenable to the jurisdiction of Industrial Tribunal constituted in terms of Section 7A of the Industrial Disputes Act read with Third Schedule of the said Act”, the Bench noted further.
A group of J&K Bank employees appointed as Banking Attendants between 2000 and 2012, later promoted to Assistant Banking Associates in 2017.
The employees claimed that upon completing two years in their position, they became eligible for absorption/promotion as Banking Associates under the bank's Career Progression Policy. They alleged discrimination, stating that certain colleagues working at the bank's corporate office were promoted while they were left out.
J&K Bank raised a preliminary objection regarding the maintainability of the writ petition, arguing that as non-supervisory bank staff, the petitioners are "workmen". The bank also noted that a new promotion policy approved by its Board in July 2022 governed such promotions and that ongoing investigations into past recruitment practices barred automatic regularization.
The Court noted that J&K Bank carries on banking business and falls squarely under the definition of an "industry" under Section 2(j) of the Industrial Disputes Act. Since Assistant Banking Associates do not perform managerial or supervisory duties, they are legally classified as "workmen" under Section 2(s).
The Bench highlighted that the employees' demand to be placed in the higher grade of Banking Associates directly concerns their terms of employment. Under Item No. 7 of the Third Schedule read with Section 7A of the Act, disputes involving classification by grades or promotion fall within the jurisdiction of Industrial Tribunals.
Reiterating established Supreme Court precedents, Justice Dhar ruled that writ petitions concerning service/industrial disputes cannot be entertained when a statutory, alternative remedy is available, unless exceptional circumstances are demonstrated.
Accordingly, the High Court dismissed the writ petition as not maintainable, leaving the merits of the employees' promotion claims untouched. However, the Court granted liberty to the J&K Bank employees to approach the appropriate government to seek a formal reference of their dispute to the Industrial Tribunal.
Cause Title: Adil Nisar Wani & Ors. v. UT of J&K & Ors. (J&K Bank Ltd.) WP(C) No. 2784/2023
Appearances:
Petitioners: Senior Advocate G. A. Lone, Mujeeb Andrabi, Advocate.
Respondents: Adil Asmi, Advocate.