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2020 Supreme(SC) 373

SUPREME COURT OF INDIA
A.M. Khanwilkar, Dinesh Maheshwari, JJ.
The Workmen through the Convener FCI Labour Federation – Petitioner(s)
Versus
Ravuthar Dawood Naseem – Respondent(s)
Contempt Petition (Civil) No. 404 of 2019 in Civil Appeal No. 10511 of 2011 with Contempt Petition (Civil) No. 508 of 2019 in Civil Appeal No. 10511 of 2011; Contempt Petition (Civil) No. 507 of 2019 in Civil Appeal No. 10499 of 2011 Contempt Petition (Civil) No.........../2020 in Civil Appeal No. 10499 of 2011 (@ Diary No. 13740/2019) Contempt Petition (Civil) No. 754 of 2019 in Civil Appeal No. 7961 of 2014 and Contempt Petition (Civil) No. 1073 of 2019 In Civil Appeal No. 10499 of 2011
Decided on : 19-05-2020

Advocates Appeared:
For the Appellant :Sudarsh Menon, Rakesh K. Sharma, C. Paramasivam, Swetank Shantanu, Vishwa Pal Singh, S. Vijay Kumar, Advocates
For the Respondent:Abhay Kumar, Sumit Kumar, Sudarsh Menon Advocates.

IMPORTANT POINTS
(1) To constitute civil contempt, it must be established that disobedience of order is wilful, deliberate and with full knowledge of consequences flowing therefrom.
(2) Contract labour need not be absorbed after abolition of contract labour system.

Headnote:

Contempt of Courts Act, 1971 – Section 12 – Contempt of Court – Alleged non-compliance of regularisation of contract labour – To constitute civil contempt, it must be established that disobedience of order is wilful, deliberate and with full knowledge of consequences flowing therefrom – Contract labour need not be absorbed after abolition of contract labour system – Corporation is not a profitmaking Organisation – It is an agency to implement food policy of Government of India, which envisages protection of farmers by ensuring remunerative price (Minimum Support Price) for their produce and simultaneously safeguarding interests of poor consumers by providing them food grains at highly subsidized rates under National Food Security Act, 2013 and other welfare schemes – No specific direction has been given to Corporation to regularise concerned workmen only in Departmental Labour System – Departmental Labour System is now a dying cadre and policy of Corporation at relevant time entailed regularisation of such workmen only under Direct Payment System (DPS) – No contempt action can be initiated on the basis of general direction to respondents to regularise and departmentalise concerned workmen – It is not possible to hold that intrinsic in general direction was to ordain respondents to regularise and departmentalise concerned workmen under Departmental Labour System in teeth of extant policy of Corporation in force since 1991 regarding regularisation against Direct Payment System (DPS) – No case for initiating contempt action against respondent Corporation and its officers has been made out – Petitions dismissed. (Paras 9, 12, 23, 25 and 26)

Facts of the Case:

Contempt petitions except Contempt Petition (Civil) No. 754/2019 emanate from the common judgment and order of this Court dated 20.8.2018 in Civil Appeal Nos. 10499/2011 and 10511/2011. Contempt Petition (Civil) No. 754/2019, however, arises from a separate judgment and order of this Court on the same subject matter and date (i.e. 20.8.2018) in Civil Appeal No. 7961/2014. The grievance in these petitions is about noncompliance of direction given to the respondent-Food Corporation of India1 to regularise and departmentalise the concerned workers who had initiated industrial disputes bearing I.D. No. 39/1992 and I.D. No. 55/1993 before the Industrial Tribunal, Tamil Nadu, Chennai under Section 10(1)(d) of the Industrial Disputes Act,1947.

Findings of the Court:

No contempt action can be initiated on the basis of general direction to the respondents to regularise and departmentalise the concerned workmen. For, it is not possible to hold that intrinsic in the general direction was to ordain the respondents to regularise and departmentalise the concerned workmen under the Departmental Labour System in the teeth of the extant policy of the Corporation in force since 1991 regarding regularisation against Direct Payment System (DPS).

Result : Petitions dismissed.

JUDGMENT

A.M. Khanwilkar, J.

I.A. for permission to file the contempt petition(s) is allowed.

2. These contempt petitions except Contempt Petition (Civil) No. 754/2019 emanate from the common judgment and order of this Court dated 20.8.2018 in Civil Appeal Nos. 10499/2011 and 10511/2011. Contempt Petition (Civil) No. 754/2019, however, arises from a separate judgment and order of this Court on the same subject matter and date (i.e. 20.8.2018) in Civil Appeal No. 7961/2014.

3. The grievance in these petitions is about non-compliance of direction given to the respondent-Food Corporation of India [For short, "the Corporation"] to regularise and departmentalise the concerned workers who had initiated industrial disputes bearing I.D. No. 39/1992 and I.D. No. 55/1993 before the Industrial Tribunal [For short, "the Tribunal"], Tamil Nadu, Chennai under Section 10(1) (d) of the Industrial Disputes Act, 1947 [For short, "the 1947 Act"]. The concerned employees were employed at Depots of the Corporation in the Southern Zone of India including the States of Kerala, Andhra Pradesh, Karnataka and Tamil Nadu, as daily-rated labour or casual labour through contract labour cooperative societies or private contractors. They were working in that capacity for quite some time and in some cases, for around 15 to 20 years, and were performing similar work as the regular employees of the Corporation. In I.D. No. 39/1992, following issue was referred to for adjudication:-

    "Whether the action of the management of Food Corporation of India, in denying to regularise 955 contract labourers engaged by management of Food Corporation of India Godown, Avadi through TVK Cooperative Society in respect of names as given in the Annexure is justified? If not to what relief they are entitled to?" (emphasis supplied)

In I.D. No. 55/1993, reference was made for adjudication of the following issue:-

    "Whether the services of workmen employed in different Food Storage depots in Food Corporation of India in the South where notifications have been issued prohibiting engagement of contract labourers under Section 10(1) of CL (R and A) Act are entitled to be regularised and if so, from which date?" (emphasis supplied)

During the pendency of these References, an understanding was arrived at between the parties, as recorded in the Minutes of Meeting dated 12.4.1996, the relevant extract whereof is as under:-

    "The Charter of demand submitted by the FCI Workers Union vide their letter dated 12.2.96 was taken do for discussions and decision taken on each of their demands are recorded as under: -

    1. Department allegation of workers and payment of documental wages to the workers in all FCI depots as recommended upto [sic] the Hon'ble Supreme Court of India, and especially in South Sons where the Central Government have notified prohibiting employment of contract labour long before considering the food handling work as perennial in nature (both the food-handling work is still being done in all South Depots) by Labour Cooperative Society as Contractors as well as the Hon'ble High Courts of Kerala and Karnataka have also directed for departmentisation of FCI workers in F.S. Depots.

    The Union demanded departmentalization of labour in all the notified depots on the plea that there are other notified depots where departmentalisation has already been done since 1991. As such, these depots may also be extended the benefit of departmentalisation. After having protracted discussions, keeping in view the orders of the Hon'ble Karnataka High Court and the Supreme Court and the scheme submitted for decision between the Karnataka High Court, following decisions were taken: -

    (i) It was decided that in all remaining, notified FCIs own Depots which were running under the Labour Cooperative Societies, or otherwise may be brought under Direct [sic] Payment System with all the benefits under the Direct


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