THE FACTORY MANAGER,CIMMCO WAGON FACTORY vs VIRENDRA KUMAR SHARMA . — C.A. No. 4501/1998

Case Summary: Factory Manager, CIMMCO Wagon Factory v. Virendra Kumar Sharma The Supreme Court allowed the factory's appeal, overturning the High Court's Division Bench order that had reinstated respondent Virendra Kumar Sharma as an employee. The Court held that Sharma was merely an apprentice who never became a regular workman, as evidenced by: (1) explicit apprenticeship agreements stating no employment obligation existed post-training; (2) payment of only a stipend (Rs. 250/month), not salary; (3) no formal appointment letter; and (4) absence of statutory deductions like GPF or ESI. The Court found the Division Bench wrongly invoked Section 103 of the Factories Act, 1948 to presume employment status in an industrial dispute context—that provision applies solely to Factories Act enforcement, not Industrial Disputes Act proceedings, and was rebutted by clear factual evidence. This case analysis is maintained by casestatus.in based on publicly available court records.