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2025 Supreme(Cal) 695

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

Advocates Appeared:
For the Petitioner: Mr. Soumya Majumder, Sr. Adv., Mr. Bandhu Brata Bhula.
For the Respondent: Mr. Tapan Kumar Mukherjee, Sr. Adv., Mr. Somnath Naskar, Mr. Debasish Chattopadhyay, Mr. Tirthankar Basu, Mr. Suman Biswas.

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 employer-employee relationship.

Headnote:(A) Industrial Disputes Act, 1947 - Section 2(k) - Reference of industrial dispute - Challenge to the validity of reference relating to contractors' workers - The court held there exists no employer-employee relationship between principal employer and contractors' workers, rendering the government’s reference invalid. Section 2(k) defines 'industrial dispute' as one between employers and workmen; hence a reference concerning contractors’ workers lacks legal foundation. (Paras 19, 31, 32, 62)

Facts of the case:
The petitioner challenges a reference made by the State regarding an industrial dispute between contractors' workers and the company, asserting that contractors' workers do not constitute 'workmen' under the Act. The Government referred the dispute while overlooking this distinction. (Paras 8, 12, 19)

Findings of Court:
The reference was quashed as it lacked the necessary employer-employee relationship needed to maintain an industrial dispute under the Act. The court noted the precedent that such references must align with the defined relationship to be valid. (Paras 62, 63)

Issues: The primary issue was whether a valid industrial dispute existed regarding contractors' workers and the legitimacy of the reference made by the government, noting the absence of an employer-employee relationship as defined by law. (Paras 18, 19, 28)

Ratio Decidendi: The court ruled that without an established employer-employee relationship, the government could not lawfully refer the dispute, as the essence of an industrial dispute as defined by law was not met. (Paras 31, 32)

Result: The writ petition was allowed, quashing the reference and allowing the appropriate government to issue a new reference if warranted. (Paras 65, 66)

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

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