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2025 Supreme(AP) 840

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
MAHESWARA RAO KUNCHEAM, J.
The Chairman/Managing Director and Others - Appellants
Versus
K. Srinivasa Raju and Others - Respondents
Writ Petition No. 22673 of 2008, Writ Petition No. 8598 of 2017
Decided On : 20-06-2025

Advocates:
Advocate Appeared:
For the Appellant : Nagaraju Naguru
For the Respondent: Prakash Buddarapu

The court upheld that a workman may file an industrial dispute directly with the Tribunal without government referral, affirming rights under legislative amendments pertaining to contract labour absorption.

Headnote:(A) Industrial Disputes Act, 1947 - Sections 2A and 10(1)(c) - Contract Labour (Regulation and Abolition) Act, 1970 - Employment dispute - Writ Petition filed to quash Tribunal's award directing appellant to employ workman in regular appointments with relaxed qualifications - Respondent’s claim based on prohibition of contract labour in certain categories under government orders - Court ruled that the Tribunal correctly found the workman eligible for absorption but limited to conditions of apprenticeship - Reasoning based on legislative amendments and existing case law. (Paras 24-40)

(B) Maintainability of Direct Industrial Dispute - Workman permitted to file dispute directly under state amendment allowing direct petition to Tribunal without government referral - Court determined that sufficient legal grounds exist to uphold the Tribunal’s authority. (Paras 25-28)

(C) Automatic Absorption and Legal Definition - Mere issuance of prohibition does not guarantee workman’s absorption - Preference to erstwhile contract labour can be provided if deemed suitable, subject to legislative conditions. Court emphasized the necessity for compliance with technical qualifications in employment. (Paras 37-40)

Facts of the case:
The workman served as contract labour in the APGENCO between 1994-1997 and legally challenged the denial of absorption by the Authority, citing a government order prohibiting contract labour in specific sectors. Tribunal acknowledged workman's eligibility for employment but attached conditions.

Findings of Court:
The Tribunal's finding affirming workman's employment eligibility was upheld with directions for adherence to employment norms.

Issues: The main issues included the legal standing of the workman's direct filing of an industrial dispute and the applicability of government orders concerning contract labour prohibition versus entitlement to absorption.

Ratio Decidendi: The court held that legislative amendments to enable direct filing of industrial disputes were valid. The award's directive for employment was found appropriate within the established legal framework provided by the Supreme Court.

Result: Writ Petition No. 22673 of 2008 filed by APGENCO is dismissed; Writ Petition No. 8598 of 2017 by workman is partly allowed in conformity with the Tribunal's award.

Table of Content
1. overview of the case background and petitions (Para 1 , 2 , 3 , 4 , 5)
2. workman's claim and historical context (Para 7 , 8 , 9 , 10 , 11 , 12 , 13)
3. apgenco's counter arguments (Para 14 , 15)
4. tribunal's hearings and evidence review (Para 16 , 17)
5. tribunal's findings and award (Para 18 , 19)
6. arguments by counsels regarding maintainability (Para 21 , 22)
7. court's analysis on maintainability of the dispute (Para 23 , 24 , 25 , 26 , 27 , 28 , 30)
8. review of evidence and tribunal's decision (Para 31 , 32 , 33 , 34 , 35)
9. legal principles from steel authority of india case (Para 36 , 37)
10. restrictions on automatic absorption of contract labor (Para 38 , 39)
11. final judgment and directives to apgenco (Para 41)

ORDER :

1. W.P No.22673 of 2008 has been filed by the A.P. Power Generation Corporation (herein after for the sake of brevity referred to as "APGENCO"), being aggrieved by the Award dated 31.01.2008 made in I.D No.88 of 2005 passed by the Industrial Tribunal-cum-Labour Court, Guntur/2nd respondent (in short "Tribunal") and seeking quashing of the same. The said I.D was filed by the 1st respondent/Workman, which was published in the A.P Gazette in G.O.Rt.No.521, dated 12.03.2008, whereunder, the Tribunal had passed an Award in I.D No.88 of 2005 by directing the APGENCO to employ the petitioner as and when they make regular appointment in their Organisation by relaxing age and academic qualifications etc.

2. Whereas, W.P No.8598 of 2017 was filed by the petitioner/Workman before this Hon‟ble Court seeking direction against the APGENCO Authorities to implement the Award dated 31.01.2008 made in I.D 88 of 2005 passed by the Tribunal, which was also published in the A.P Gazette in G.O.Rt.No.521, dated 12.03.2008, and to declare the G.O.No.697 of 2002, dated 03.02.2003 issued by the APGENCO as void ab initio and consequential direction to absorb the petitioner with effect from 06.12.1996 into the APGENCO.

3. For the sake of better understanding, the parties i.e., the petitioner in W.P No.8598 of 2017 & respondent in W.P No.22673 of 2008 and the petitioner in W.P No.22673 of 2008 & respondent in W.P No.8598 of 2017, herein after referred to as „Workman‟ and „APGENCO‟ respectively.

4. In the above two writ petitions, subject matter revolves around one Award dated 31.01.2008 made in I.D.No.88 of 2005 passed by the Tribunal, published in the A.P. Gazette in G.O.Rt.No.521, dated 12.03.2008.

5. Whereas, the APGENCO had sought to quash the Award dated 31.01.2008 and conversely, the Workman is urging to implement the very same Award under challenge. There being a commonality of facts and law concerning these Writ Petitions, and also taking into consideration of submissions by the respective Counsels, this Court ventures to pass Common Order in the above Writ Petitions.

6. Heard Sri Nagaraju Naguru, learned Standing Counsel for the APGENCO as well as Sri Prakash Buddarapu, learned counsel for the Workman, at length.

Brief case of the Workman:

7. The claim of the Workman in the I.D is that he worked as Coal Breaker in the Coal Handling Plant under the control of Chief Engineer, VTPS Ibrahimpatnam, running under APGENCO through a contractor by the name Balaji Transports from the period 01.04.1994 to 31.08.1997.

8. It is also averred in Claim Petition in the I.D that, the Government of Andhra Pradesh by exercising the powers conferred under Sub-Section (1) of Section 10 of the Contract Labour (regulation and Abolition) Act, 1970 issued G.O.Ms.No.41, dated 23.09.1996, whereby employment of contract labour in 33 categories of employment specified therein was prohibited in the erstwhile Andhra Pradesh State Electricity Board (APSEB).

9. Subsequently, APSEB was divided into APGENCO (which is entrusted with the activity of power generation) and APTRANSCO (empowered to Transmission, Distribution, Supply of Electricity). In a Nutshell, APGENCO is the instrumentality of State Government which is amenable to Article 12 of the Cons

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