Engagement of workmen in an unregistered establishment through an unlicensed contractor is a mere camouflage to conceal the real contractual relationship between the principal employer and the workman.

R.A.Sharma, J.

1. The Central Government in exercise of power under Section 10 of the Industrial Disputes Act referred the following two disputes for adjudication to the Central Government Industrial Tribunal No. 1, Dhanbad (hereinafter referred to as the Tribunal):

"1. Reference No. 32 of 1989 dated March 16, 1989: "Whether the action of the management of Sudamdih Colliery of BCCL in denying employment to Sri Karma Rout and 21 others with effect from July 9, 1977 is justified? If not, to what relief the concerned workmen are entitled?" and

2. Reference No. 35 of 1989 dated March 20, 1989 "Whether the action of the management of Sudamdih Area of BCCL in denying employment to Sh. Bhagwat Singh and 3 others, viz., Sri. Sapan, Karan Sahi and Shanti Thakur who were engaged as sump clearing mazdoors is justified? If not, to what relief are the workmen entitled?"

As the controversy involved in both the cases was the same, the Tribunal heard them analogously and answered the references in favour of the workmen declaring them to be the workmen of the principal employer, namely, the Management of Bharat Coking Coal Limited (hereinafter referred to as the management) and directing for their reinstatement in service with effect from the dates of references with 75% back wages. Being aggrieved by the said Award, the management filed two writ petitions in this Court, being C.WJ.C. No. 859/1993(R) and C.W.J C. No. 86/1993(R), which have been dismissed by the learned single Judge on August 10, 1998. Not being satisfied with the judgment of the learned single Judge, the management has filed these two appeals under Clause 10 of the Letters Patent.

2. The sole submission of the learned Counsel for the appellant is that the workmen having been employed by the contractor for the contract work, the management cannot be compelled to reinstate them in its service. This has been disputed by the learned Counsel for the workmen.

3. The case of the management is that the workmen were employed by the contractor, namely, Sri Bhagwat Singh, for sump cleaning in the mines and after the contract was discontinued they have to go out of service and the management cannot be compelled to reinstate them in service. The case of the workmen, on the other hand, is that the sump cleaning is nothing but loading and unloading of slack dust coal in underground mine, which is prohibited category of work in view of the Government Notification dated February 1, 1975. Their further case is that the establishment in which they Were employed was neither registered nor was the so-called contractor having any licence under the Contract Labour (Regulation & Abolition) Act, 1970 (hereinafter referred to as the Act) and they are in fact the workmen of the management.

4. The Tribunal recorded the following findings of fact :

(i) Pumping out water and cleaning of sumps or lodgment by removal of sludge is a job of permanent nature being of continuous process in a running mine and such a work is an integral part of mining operation done in the establishment of the management;

(ii) The place of work of the workman is the establishment of the management ;

(iii) Neither the establishment of the management was registered nor was the alleged contractor having any licence for contract work under the Act;

(iv) The workmen were working for the management in the establishment ; and

(v) In view of the facts and circumstances of the case and the evidence produced by the parties, the workmen shall be deemed to be the workmen of the management.

5. The learned single Judge upheld the Award of the Tribunal holding that the sump cleaning work is a work of permanent nature connected with the mining operation of the management and neither the establishment of the management was registered nor was the so-called contractor having any licence under the Act and the workmen, therefore, shall be deemed to be the workmen of the principal employer, namely, the management. In this connection, the learne