IN THE HIGH COURT AT CALCUTTA
Shampa Dutt (Paul), J.
Steel Authority of India Ltd., IISCO Steel Plant – Petitioner
Versus
The State of West Bengal & Ors. – Respondents
WPA 20373 of 2008 With CAN 2 of 2011 (Old No. CAN 5708 of 2011)
Decided On : 24-11-2025
| Table of Content |
|---|
| 1. challenge to industrial dispute reference. (Para 1 , 2) |
| 2. contractor's workers' employment status clarified. (Para 3 , 4) |
| 3. union's representation of contractor workers disputed. (Para 5 , 6) |
| 4. legality of government reference questioned. (Para 8 , 9) |
| 5. precedent from previous tribunal ruling discussed. (Para 11 , 12 , 13 , 14) |
| 6. outcome of special leave petition noted. (Para 15 , 16) |
| 7. arguments regarding definition of industrial dispute. (Para 17 , 18 , 19 , 33) |
| 8. arguments related to past industrial actions. (Para 21 , 22 , 23 , 24 , 25) |
| 9. emphasis on definition of workmen under law. (Para 30 , 31 , 35) |
| 10. legal clarity on employer-employee relationship. (Para 41 , 48) |
| 11. quashing of reference based on legality. (Para 46 , 62 , 63) |
| 12. final ruling provided on the writ petition. (Para 65 , 66 , 67 , 68) |
JUDGMENT :
Shampa Dutt (Paul), J.
1. The writ petition has been preferred challenging the order of reference dated 18.04.2005 issued by the respondent no.2, Deputy Secretary to the Government of West Bengal, Labour Department.
2. The issue in the order of reference, is as follows:-
“……..whereas an industrial dispute exists between Messrs Indian Iron & Steel Co. Limited, Burnpur, P.O.- Burnpur, Dist- Burdwan and their Contractors' workers represented by ABK Metal & Engineering Workers' Union. The issue of reference is as follows:-
“(1) Whether the demand for absorption of the Contractors' Workers as detailed Annexure 'A' and 'B' in Indian Iron & Steel Co. Ltd. Burnpur, justified?
(2) What relief, if any, are the workers entitled to?”
3. The petitioner's case is that the petitioner company is engaged in the production of Steel. For the purpose of execution of work and carrying on business activities, the company employs a large work force on its roll. Certain jobs of casual and intermittent nature are executed through contractors, selected on the basis of invitation of tenders. The contractors' workers are not employed by the petitioner company, but they are employed by the contractors, and contractors' workers have privity of contract with the contractors, who are their employers.
4. It is stated that supervision, control and administration over the nature and manner of execution of the contractual job is exercised by the contractors over their men, that is the contractors' workers and there is no proximate connection or relationship whatsoever between the petitioner company and the contractors' workers. The contractors' workers are therefore not the workmen of the industry of the petitioner company.
5. It is the case of the petitioner that the respondent No.5, M/s. A.B.K. Metal and Engineering Workers Union is a Trade Union representing the workmen of the petitioner company at its factory and cannot represent the contractors workers.
6. A purported industrial dispute was raised by the respondent no.5 with the Assistant Labour Commissioner, Government of West Bengal vide letter dated 29th January, 1996.
7. Ultimately the Government of West Bengal vide order dated 18.04.2005, referred the alleged dispute with regard to the absorption of contractors workers to the learned Ninth Industrial Tribunal for adjudication.
8. The said order of reference is challenged in the present case.
9. Written notes have been filed by both the parties, wherein the petitioner in their written notes have stated that:-
“………..the order of reference dated 18th April, 2005 (Page 20 of W/P) 14 mentions the purported dispute to be in existence "between M/s. IISCO Limited and Their Contractors' Workers represented by ………."
Evidently the Government of West Bengal did not form any opinion that there was any dispute between IISCO and its workmen.
a) The petitioner further states that the definition of "Industrial Dispute" under Section 2 (k) of the Industrial Disputes Act, 1947 postulates only dispute only between employers and workmen. The definition does not contemplate a dispute between the principal employer and the contractors' labourers. Thus on the f
Workmen Employed by Hindustan Lever Ltd.-vs- Hindustan Lever Limited
Cipla Ltd. vs Maharashtra General Kamgar Union & Ors.
A dispute between a principal employer and contractors' workers does not constitute a valid industrial dispute under Section 2(k) of the Industrial Disputes Act, 1947, due to the absence of an employ....
The court upheld the validity of a reference order made under the Industrial Disputes Act, emphasizing the administrative nature of such references and allowing the Tribunal to adjudicate claims from....
The determination of employment relationships and the validity of contracts lies within the jurisdiction of the industrial adjudicator, particularly when claims of sham contracts are raised.
The court clarified that direct prior demands are not mandatory for initiating conciliation and that the contractor-worker relationship can be adjudicated in the context of unfair labor practices and....
The court ruled that without establishing an employer-employee relationship, reference under Section 10 of the Industrial Disputes Act is inappropriate; contracts are valid unless proven otherwise.
Point of Law - There is no embargo on the writ Court to quash a wholly inappropriate or undesirable or invalid reference order, in case no industrial dispute exists.
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