LEGAL PRINCIPLE: LABOUR LAW – Contract of Service – Where No Statutory Flavour Exists Court Is Bound by Terms of Contract
PRINCIPLE STATEMENT
The fact that an employer is a statutory body does not mean its employees' conditions of service must be of special character ruling out ordinary master-servant relationships; courts must confine themselves to the contract of service terms which provide parties' rights and obligations.
RATIO DECIDENDI (SOURCE)
"The fact that the respondent is a statutory body does not mean that the conditions of service of its employees must be of a special character ruling out the relationship of mere master and servant relationship. The court must confine itself to the terms of contract of service between the parties which provides for their rights and obligations."
EXPLANATION / SCOPE
Employment with statutory bodies doesn’t automatically create special employment status or tenure rights. Unless statute specifically governs the employment relationship, ordinary contractual principles apply. The employment is simply a master-servant relationship governed by the contract terms, not by the employer’s statutory character. Courts determine rights and obligations from the employment contract, not from assuming special protections due to the employer’s nature. This prevents employees from claiming statutory protections not actually conferred by legislation or contract. It ensures contractual clarity—parties know their rights are defined by their agreement, not implied from the employer’s status. The principle applies where enabling statutes create the organization but don’t prescribe employment terms—such employment remains contractual, not statutory.