The judgment emphasizes that the notification under Section 10(1) of the CLRA Act prohibiting employment of contract labour does not automatically lead to the absorption of contract labour by the principal employer.

R. M. LODHA, J.

( 1 ) HEARD.

( 2 ) THE impugned judgment is based on the judgment of the Supreme Court in the case of Air India statutory Corporation v. United Labour Union and ors. , AIR 1997 SC 645. The learned Single Judge relying upon the judgment of the Supreme Court in the case of Air India Statutory Corporation, directed the absorption of the workmen mentioned in Exhibit "a" to the petition in the regular service with effect from respective dates of their entering into service. The workmen concerned are the workmen working as sweepers in the canteen of the appellant Hindustan Petroleum Corporation at mazgaon Terminal, Mumbai.

( 3 ) THE Constitution Bench of the Supreme Court in the case of Steel Authority of India Ltd. and others v. National Union Water Front Workers and ors. , AIR 2001 SC 3527 has overruled the judgment in the case of Air India Statutory Corporation (cited supra ).

( 4 ) IN paragraph 122 of the report, the constitution Bench recorded its conclusions thus-"122. The upshot of the above discussion is outlined thus: (1) (a) Before January 28, 1986, the determination of the question whether central Government or the State government, is the appropriate Government in relation to an establishment, will depend, in view of the definition of the expression "appropriate Government" as stood in the CLRA Act, on the answer to a further question, is the industry under consideration carried on by or under the authority of the Central Government or does it pertain to any specified controlled industry; or the establishment of any railway, cantonment board, major port, mine or oilfield or the establishment of banking or insurance company? If the answer is in the affirmative, the Central Government will be the appropriate Government; otherwise in relation to any other establishment the government of the State in which the establishment was situated, would be the appropriate Government. (b) After the said date in view of the new definition of that expression, the answer, to the question referred to above, has to be found in Cl. (a) of S. 2 of the industrial Disputes Act; if (i) the concerned Central Government company/undertaking or any undertaking is included therein eo nomin, or (ii) any industry is carried on (a) by or under the authority of the Central Government or, (b) by railway company; or (c) by specified controlled industry, then the central Government will be the appropriate government otherwise in relation to any other establishment, the Government of the state in which that other establishment is situated; will be the appropriate government. 2 (a) A Notification under S. 10 (1) of the CLRA Act prohibiting employment of contract labour in any process, operation or other work in any establishment has to be issued by the appropriate Government: (1) after consulting with the central Advisory Board or the State advisory Board, as the case may be, and (2) having regard to (i) conditions of work and benefits provided for the contract labour in the establishment in question; and (ii) other relevant factors including those mentioned in sub-section (2) of S. 10 (b) inasmuch as the impugned notification issued by the Central government on December 9, 1976 does not satisfy the aforesaid requirements of s. 10, it is quashed but we do so prospectively i. e. from the date of this judgment and subject to the clarification that on the basis of this judgment no order passes or no action taken giving effect to the said Notification on or before the date of this judgment, shall be called in question in any Tribunal or court including a High Court if it has otherwise attained finality and/or it has been implemented. (3) Neither S. 10 of the CLRA Act nor any other provision n the Act, whether expressly or by necessary implication, provides for automatic absorption of contract labour on issuing a notification by appropriate Government under sub-section (1) of S. 10 prohibiting employment of contract labour, in any process,