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2026 Supreme(Cal) 20

IN THE HIGH COURT AT CALCUTTA
SHAMPA DUTT (PAUL), J.
M/s. A.R. Engineers – Appellant
Versus
Deputy Chief Labour Commissioner (Central) and Others – Respondents
WPA Nos. 28511, 28513 of 2023
Decided On : 18-05-2026

Advocates Appeared:
For the Appellants : Ranjay De, Jaydeb Ghorai, Diptesh Ghorai
For the Respondents: Souvik Nandy, Debapriya Samanta

An industrial authority cannot refer a dispute regarding the merits of an employment relationship or worker grievances if the existence of said relationship is actively contested; such cases require a preliminary determination of the employer-employee status before substantive issues are addressed.

Headnote:(A) Industrial Disputes Act, 1947 - Sections 2(a), 10(1), 10(1-A) and 10(5) - Industrial dispute reference - Appropriate Government - The governing authority possesses the power to refer disputes to a tribunal under Section 10(1-A) if the matter involves issues of significant scale, regardless of whether it is the primary appropriate government for the specific establishment. (Paras 18-20)

(B) Industrial Disputes Act, 1947 - Section 10 - Reference of dispute - Employer-employee relationship - When the existence of an employer-employee relationship is strictly denied by the parties, a reference regarding the justification of employment denial cannot be made based on a presumption; the threshold for such a reference requires the framing of a preliminary issue concerning the status of the relationship. (Paras 13, 25-27)

Facts of the case:
The petitioner challenged an order of reference issued by an industrial labour authority, which sought adjudication on the identity of the appropriate government and the validity of action taken towards allegedly retrenched workers. The petitioner contended that they were not the employer and had no association with the workmen involved, and that the authority lacked jurisdiction to make such a reference without establishing the underlying employment status.

Findings of Court:
The court held that while the reference regarding the identification of the appropriate government was valid under the governing statutory provisions, the reference concerning the justification of re-employment denial was unsustainable. The government could not presume the existence of an employer-employee relationship to formulate issues of merit when the core status of the parties had not been established or determined.

Issues: The main issues addressed were whether the central authority maintained the power to refer a dispute regarding the determination of the appropriate government and whether it could legally refer a dispute regarding the denial of employment without first verifying the existence of an employment relationship between the parties.

Ratio Decidendi: The court determined that although the authority has the power to initiate a reference to resolve uncertainties regarding the appropriate government, it lacks the legal foundation to refer questions regarding substantive employment relief when the foundational status of the employer-employee relationship is contested, without first framing that specific dispute for adjudication.

Result: Petitions disposed of; the second issue of the contested reference order is quashed, while the first issue remains valid for adjudication by the tribunal.

Table of Content
1. administrative order of reference under industrial disputes act. (Para 1 , 2)
2. parties argument on jurisdiction and relationship existence. (Para 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11)
3. requirement of sufficient material for valid administrative reference. (Para 12 , 13 , 14 , 15 , 16)
4. central government's power to refer disputes under section 10(1a). (Para 17 , 18 , 19 , 20)
5. necessity of establishing employer-employee relationship before adjudicating employment disputes. (Para 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28)
6. conclusion and disposal of writ applications. (Para 29 , 30 , 31 , 32)

JUDGMENT :

SHAMPA DUTT (PAUL), J.

1. The writ applications have been preferred challenging the impugned order of reference dated 29.11.2023. The appropriate authority herein being the Deputy Chief Labour Commissioner (Central), issued the said order of reference on being satisfied as follows:

“NO. Kol-700020/17/2023-Dy.CLC(C): WHEREAS, the undersigned is of the opinion that an industrial dispute exists between the employer in relation to the management of M/s Pearson Drums & Barrels Pvt. Ltd. and M/s. A.R. Engineers, service providers of IOCL, Haldia Refinery versus their workmen represented by Bharat Barrel and Drum Mfg. Co. Pvt. Ltd. Worker's Association (INTTUC) and its workman in respect of the matter specified in the Schedule below.

2. The order of reference has been made with the following schedule/issues:-

The Schedule

1. Whether the Appropriate Government for the Management of M/s. Pearson Drums and Barrels Pvt. Ltd. and M/s. Engineers, service providers of IOCL, Haldia Refinery is Central Government or State Government?

2. The action of the managements in denying the re-employment of 90 retrenched workmen are justified? If not, what relief the concerned workmen are entitled to?”

3. The principal contention of the petitioner herein which was recorded by this Court at the interim stage is as follows :

“8. The first question referred for adjudication is as to whether the appropriate Government for M/s. Pearson Drums & Barrels Pvt. Ltd. and A.R. Engineers the service provider to IOCL, is the Central Government or the State Government.

9. This appears to be ex facie illegal. If the Deputy Chief Labour Commissioner (Central) had any doubt in that regard, he could not have made any reference to the CGIT.

10. The second limb of the reference is equally surprising. The second limb is "whether the actions of the management are justified? and if not what relief, the concerned workmen are entitled to?" Neither the ALC nor the workmen or the Trade Union have even whispered of any relationship between the employees of M/s. Bharat Barrel and Drum Mfg. Co. Pvt. Ltd. Worker's Association and M/s. Pearson Drums & Barrels Pvt. Ltd. or M/s. A.R. Engineers.

11. In those circumstances, this Court is not able to appreciate as to what material was available before the Deputy Chief Labour Commissioner (Central) to make any reference as contained in the order dated November 29, 2023.”

4. The facts of the case in short is that the petitioner is a sole proprietorship concern.

5. The petitioner participated in the tender floated by Indian Oil Corporation Limited for "fabrication, manufacturing and supply of empty bitumen drums with BD Lid as per IS: 3575 of 1993 or its latest revision" and became successful as L-2 bidder. In consequence thereof, the petitioner has been awarded with the contract by Indian Oil Corporation vide "LETTER OF ACCEPTANCE" indicating the Tender No. HGNKK22015 and the Work Order No. 27849589 Dated 24.05.2022.

6. In terms of the said work order, the petitioner has already started the manufacturing process with its own employees as aforesaid. It is further stated that the relationship between Indian Oil Corporation (in short IOC) and the petitioner herein is not that of principal employer and contractor. Rather the management of IOC in connection with compliance of the provisions of Contract Labour (Regulation & Abolition) Act, 1970

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