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2024 Supreme(AP) 876

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
RAVI NATH TILHARI, KIRANMAYEE MANDAVA, JJ.
The Chairman And Managing Director and Others - Appellants
Versus
P. Nagendra and Others - Respondents
Writ Appeal Nos. 310, 311, 312 & 313 Of 2024
Decided On : 30-08-2024

Advocates Appeared:
For the Appellants : Anup Koushik Karavadi (SC).
For the Respondents: G.P., Jayanti S. C. Sekhar.

Headnote:(A) Contract Labour (Regulation and Abolition) Act, 1970 - The judgment involves the rights of workers claiming employment regularization against the employer - Court determined that the employment of contract labourers contravened unfair labour practice principles, particularly when services were perennial - The contractors were deemed as nominal intermediaries. (Para 59)

(B) Employment Relations - Establishes that an employer-employee relationship must exist to justify regularization claims. Absence of such a relationship raises questions about the legality of treating the workers as contract labour. (Paras 59, 62)

Facts of the case:
Workers, who were engaged over many years in various capacities, claimed permanent employment status against their employer after being treated as contract workers. Court found that their jobs were essential and continuous but did not establish a direct employer-employee relationship as required under law. (Paras 11, 60)

Findings of Court:
The court reversed the lower court's judgment directing the employer to consider regularization, finding no evidence establishing the necessary employment relationship or sanctioned posts for regularization. (Paras 61, 62)

Issues: The primary issues addressed include whether there was a valid employer-employee relationship that would warrant regularization of the workers based upon their long-term service, and if the current contractual employment violated labour practices. (Para 23)

Ratio Decidendi: The court held that to claim regularization, there must exist a clear employer-employee relationship; the continued service as contract workers did not automatically confer such a right, and the action of the employer wasn't found to be an unfair labour practice. (Paras 59, 61)

Result: Writ Appeals are allowed; common judgment set aside, and the writ petitions dismissed. (Para 62)

Table of Content
1. history of employment of petitioners (Para 4 , 5 , 6 , 9)
2. legal principles regarding regularization (Para 12 , 50)
3. arguments against employee-employer relationship (Para 13 , 14)
4. findings on employer-employee relationship required for regularization (Para 24 , 25 , 43 , 59)
5. judgment dismisses writ appeals (Para 62)

JUDGMENT :

(Ravi Nath Tilhari, J.)

Heard Sri Y.V. Ravi Prasad, learned Senior counsel assisted by Sri Anup Koushik, learned counsel for the appellants and Sri Jayanthi, S.C. Sekhar, learned counsels for the respondents in all the writ appeals.

2. Writ Appeal Nos.310, 311, 312 and 313 of 2024 have been filed challenging the common judgment dated 31.01.2024, passed by the learned single Judge in W.P.No.15794 of 2010, W.P.No.32917 of 2010, W.P.No.15272 of 2010, W.P.No.33147 of 2010 respectively.

3. The challenge is on the same ground and same arguments have been advanced by both the sides as such all these writ appeals are being decided by this common judgment.

I. Facts Writ Petitioners’ case:

W.A.No.310 of 2024:

4. The case of the writ petitioners of this writ appeal briefly stated was as under:-

4.1. The 1st writ petitioner P. Nagendra was engaged as driver in the respondents Industry in the month of February, 1991 and since then he has been continuously, un-interruptedly without any break, working in the respondents industry. From 26.02.1991 to 1996 he was directly engaged without any middle man. For about three years the petitioner No.1 has been treated as contract worker. For every year the so-called contractors have been changing but the writ petitioner No.1 P. Nagendra was continued in his job without any break as he was. The 1st petitioner possessed the driving license for heavy goods vehicle and his education qualification is 10th class and passing I.T.I Electricals. He was available for 24 hours without any break in a week.

4.2. The 2nd petitioner M. Nagarjuna was engaged as driver in the year 1986 in the office of the S.E/T.L.C/A.P Transco, Kadapa. From 1986 to 1999 the 2nd petitioner M. Nagarjuna was directly engaged by the respondents Industry without any middle man. Then, since 1999 the 2nd petitioner has been treated as contract worker. He is in possession of Light Motor Vehicle Driving License and his qualification is 9th pass. The 2nd petitioner was available for 24 hours without any break in a week.

4.3. The 3rd petitioner M. Krishnaih was engaged by the respondent industry in the year 1985. From 1.1.1985 to 31.03.1999 he was directly engaged and worked under the supervision and control of the officers of respondent industry. Since 1.4.1999 he has been treated as contract worker. His qualification is 9th class and he is in possession of heavy goods vehicle driving licence.

4.4. The 4th petitioner K. Nagabhushanam was engaged as a driver by the respondents industry on 01.08.1991 and from 1.8.1991 to 31.3.1999 he directly worked under the supervision and control of officers of respondents industry without any middle man. From 1999 he has been treated as contract worker. His qualification is 9th class and he is in possession of heavy goods vehicle driving license.

4.5. The 5th petitioner L. Seenaiah was engaged by the respondent industry as driver in the year 1992 and from 1992 to 31.3.1999 he worked in the respondent industry without any middle man. From 1.4.1999 he has been treated as contract worker. His qualification is passing 10th class and he is in possession of heavy goods vehicle driving license.

4.6. The 6th petitioner B. David Sudhama Rao was engaged by the respondents industry as driver on 27.10.1989. From 27.10.1989 to 31.03.1999 he worked in the respondent industry without any middle man. From 1.4.1999 he was treated as contract worker. His qualification is intermediate pass and he is in possession of driving license of light motor vehicle.

W.A.No.311 OF 2024:

5. The case of the writ petitioners of this writ appeal, briefly stated was as under:-

5.1. The 1st petition

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