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2005 Supreme(Kar) 475

Karnataka High Court
KARNATAKA CO-OPERATIVE MILK PRODUCERS federation LIMITED, BANGALORE - Appellant
Versus
GOVERNMENT OF KARNATAKA - Respondent
Decided On : 08-05-05
Writ Petition : 3576 of 2002

Advocates:
A.N.VENUGOPAL GOWDA, B.N.KATTI, D.N.KATTI, D.RAMACHANDRAN, K.B.NARAYANA SWAMY, K.RAMACHANDRAN, K.VARAPRASAD, M.C.NARASIMHAN, M.R.C.RAVI, made the following: ORDER, N.S.Sanjay Gowda, PUTTEGOWDA, RAMADNS, S.N.MURTHY, SHIVAREDDY, SHIVAREDDY urt, Somashekar Angadi, SRIYUTHS A.S.BOPANNA, SURESH P.HUDEDAGADDI, T.G.SRINIVASA MURTHY, USHA RAVI

Headnote:Abolition of Contract labour

       CONTRACT LABOUR (REGULATION & ABOLITION) ACT, 1970

       Abolition of Contract labour - Whether hit by doctrine of discrimination. See, Constitution of India - Article 14

       Cases Referred:

       Relied on: AIR 2002 SC 790: (2002) 2 SCC 712: 2002 SCC (L and S) 350; AIR 1987 SC 2386: (1987) 4 SCC 611: 1988 SCC (L and S) 1; AIR 1985 SC 1391: (1985) SCC 594: 1985-II-LLJ-412 (SC): 1985 SCC (L and S) 902; AIR 2001 SC 3527: (2001) 7 SCC 1: 2001 SCC (L and S) 1121: 2001-II-LLJ-1087 (SC); AIR 1972 SC 1942: 1971-II-LLJ-567 (SC): 1972 Lab. I. C. 760 (SC): (1971) 2 SCC 724; 2003-III-LLJ-760 (Kar.).

       Abolition of Contract labour

       CONSTITUTION OF INDIA - Article 14 -Abolition of Contract labour - Whether hit by doctrine of discrimination.

       [R. Gururajan, J]: In the light of this order, Government has chosen to abolish contract labour in the light of the recommendations of the Board in terms of the material available on record. In the light of the order of this Court, petitioner cannot complain any discrimination in the matter. Abolition has been done in the light of the order of this Court and that therefore, petitioner cannot plead discrimination in the matter of abolition of contract labour. This contention requires rejection.

       Cases Referred: Relied on: AIR 2002 SC 790: (2002) 2 SCC 712: 2002 SCC (L and S) 350; AIR 1987 SC 2386: (1987) 4 SCC 611: 1988 SCC (L and S) 1; AIR 1985 SC 1391: (1985) SCC 594: 1985-II-LLJ-412 (SC): 1985 SCC (L and S) 902; AIR 2001 SC 3527: (2001) 7 SCC 1: 2001 SCC (L and S) 1121: 2001-II-LLJ-1087 (SC); AIR 1972 SC 1942: 1971-II-LLJ-567 (SC): 1972 Lab. I. C. 760 (SC): (1971) 2 SCC 724; 2003-III-LLJ-760 (Kar.).

       Dairy industry

       CONTRACT LABOUR (REGULATION & ABOLITION) ACT, 1970

       Section 10 - Dairy industry - Abolition of contract labour by clustering certain departments as advised by a sub-committee constituted by Karnataka State Contract Labour Advisory Board - Legality.

       [R. Gururajan, J]: They say that contract workers are engaged in the job of loading an unloading of milk cans, dumping of cans, etc. Unfortunately, the Committee while recommending abolition of contract labour with regard to unloading of milk and feeding of raw milk into milk processing plant within the factory premises, etc., has not chosen to consider the test in terms of Section 10(2) of the Act, except saying that they can be clustered and they have not gone into details with regard to requirement of Section 10(2) notwithstanding the objections made by the petitioners. In fact, they say that it is not necessary to traverse all the submissions made by the dairy management since they are not germane to decide the issue under Section 10(2)(a), (b), (c) and (d) of the Act, This approach, in the light of various judgments as referred to above, is unacceptable in law. The Committee has not considered the material on record properly insofar as unloading, processing, packing, cleaning, etc., are concerned. The only answer by the Committee is that they can be clustered and that has been blindly accepted by the Board and the Government. Insofar as cleaning work is concerned, under some circumstances it may be perennial in nature and in some other circumstances it may not be so. Work area is also not explained. It is vague. It all depends upon the facts of each case. There are no acceptable reasons forthcoming with regard to cleaning process is concerned. This also requires re consideration. Therefore, decision suffers for want of consideration of the material in terms of provisions of the Act and the decision making process is wrong in the matter of abolition in the case on hand. In the absence of any material available on record, any decision taken by the decision maker, is a decision without substance.

       Cases Referred:

       Relied on: AIR 2002 SC 790: (2002) 2 SCC 712: 2002 SCC (L and S) 350; AIR 1987 SC 2386: (1987) 4 SCC 611: 1988 SCC (L and S) 1; AIR 1985 SC 1391: (1985) SCC 594: 1985-II-LLJ-412 (SC): 1985 SCC (L and S) 902; AIR 2001 SC 3527: (2001) 7 SCC 1: 2001 SCC (L and S) 1121: 2001-II-LLJ-1087 (SC); AIR 1972 SC 1942: 1971-II-LLJ-567 (SC): 1972 Lab. I. C. 760 (SC): (1971) 2 SCC 724; 2003-III-LLJ-760 (Kar.).

       Constitution of India -Abolition of Contract labour -Article 14 -Abolition of Contract labour - Whether hit by doctrine of discrimination. [R. Gururajan, J]: In the light of this order, Government has chosen to abolish contract labour in the light of the recommendations of the Board in terms of the material available on record. In the light of the order of this Court, petitioner cannot complain any discrimination in the matter. Abolition has been done in the light of the order of this Court and that therefore, petitioner cannot plead discrimination in the matter of abolition of contract labour. This contention requires rejection.

       Cases Referred:

       Relied on: AIR 2002 SC 790: (2002) 2 SCC 712: 2002 SCC (L and S) 350; AIR 1987 SC 2386: (1987) 4 SCC 611: 1988 SCC (L and S) 1; AIR 1985 SC 1391: (1985) SCC 594: 1985-II-LLJ-412 (SC): 1985 SCC (L and S) 902; AIR 2001 SC 3527: (2001) 7 SCC 1: 2001 SCC (L and S) 1121: 2001-II-LLJ-1087 (SC); AIR 1972 SC 1942: 1971-II-LLJ-567 (SC): 1972 Lab. I. C. 760 (SC): (1971) 2 SCC 724; 2003-III-LLJ-760 (Kar.).

( 1 ) PETITIONERS in all these petitions are challenging a notification issued by the State Government under the provisions of the Contract Labour (Regulation and Abolition) Act, 1970 (for short, 'the Act'), abolishing contract labour in certain sections of the petitioners.

( 2 ) SINCE the facts and law are common in all these petitions, this common order is passed.

( 3 ) W. P. No. 3576 of 2002.-Petitioner-Kamataka Co-operative Milk producers Federation Limited, Bangalore is formed on the pattern of anand Co-operative Society (Amul) in the State of Gujarat. It works in three line systems i. e. , petitioner-Society as an apex body, District co-operative Milk Producers Union at District level and Primary Dairy co-operatives at village levels. Petitioner-Society and the district milk unions are administered independently having its own Board of directors and having separately registered under the Karnataka co-operative Societies Act, 1959. Milk producers supply milk at society level, both in the morning and in the evening shifts, and the society is managed by a Committee and the primary society staff. District Milk unions organise milk routes and by means of hired vehicles the milk is collected from village dairy co-operatives. It is the responsibility of the transport contractor to produce and deliver milk at chilling centres/dairies in a specified time. If the milk is not lifted or if there were to be delay in arrival of the truck, the contractor would be held for losses. Milk is procured on all 365 days, even if it is rainy day or hot summer. The milk received at the chilling centre in milk cans is unloaded, chilled, tested, empty cans are cleaned and are loaded into the trucks. Milk received at dairy is processed, packed and stored in cold storage. Then loaded into milk distribution trucks. There are several member contractors who are directly involved in distribution of milk. Responsibility of timely supply of milk to agents vests with the contractor including cash/cheque collection. Milk received normally last maximum 4 to 5 hours in split hours, both in the morning and in the evening. Milk producers are more in the unorganised sectors of the society. Milk business is a main occupation of agricultural labourers and unemployed, etc. Consumers expect quality milk at a reasonable rate. This naturally demands reasonableness in the price of milk and involves social obligation. In between these two extreme situations, balance has to be struck keeping both interests of milk producers and consumers. Therefore cost effective efficient management system is required to be followed for the survival of the organisation as a whole. Creation of responsible and accountable centres in each activity was mainly responsible for success of this dairy project. Policy of the Government placing dairy sector under the de-licence list has pushed co-operative dairy industry to death trap. There exists cutthroat competition. Society is having its own cadre strength approved by the Registrar of co-operative Societies. There are permanent workmen. However, in regard to certain category of work, which is intermittent in nature and where there is no need to employ considerable number of whole time workmen, petitioner is engaging contract labourers through contractors. Similar contract system is being followed in other milk dairies including private dairies. Contract labourers are given all statutory benefits as provided under the Act.

( 4 ) KMF Employees' Federation and KMF Cattle Feed Plant Loading and Unloading Workers' Union (both unorganised) raised an industrial dispute demanding abolition and absorption of contract labourers. The government referred the dispute for adjudication to the Industrial tribunal, Bangalore. Aggrieved by the order of reference, employees federation filed a writ petition in W. P. No. 25277 of 1994 and 14734 of 1996 in this Court. This Court passed an order in W. P. No. 25277 of 1994 directing the State Government to exercise















































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