The Supreme Court in the case held that the Tamil Nadu Medical Services Corporation could not deny the permanent status to the workmen if they have worked consecutively for more than 480 days in a period of twenty-four calendar months in the commercial establishment engaged in other activities apart from the construction activities which are being undertaken for making some monetary gain.
The present matter relates to the denial of the permanent status to the workmen by the Corporation despite of fulfilling the requirement of the law prevailing in the State of Tamil Nadu.
It has been stated under section 3 of the Tamil Nadu Industrial Establishments,
Conferment of Permanent Workmen Act, 1981, the 1981 Act confers permanent status to the workmen who are in continuous service for a period of four hundred and eighty days in a period of twentyfour calendar months in an industrial establishment.
Therefore, the corporation denied the conferment of the permanent status which being on the ground that the activities undertaken by the corporation were not commercial in nature in order to attract the provision of the 1981 Act.
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