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2014 Supreme(Del) 2792

DELHI HIGH COURT
P.K. Bhasin, J.R. Midha, JJ.
Gopal, Bharat Singh, Udai Veer, Devinder, Sanjay, Narender, Charat Singh, Bhagat Singh, Inder Veer, Roop Ram, Viram Singh, Desh Raj, Kumar Pal & Ors. - Appellant
Versus
Bharat Sanchar Nigam Ltd. - Resopndent
LPA 408/2013 and CM APPL. 9309/2013 with LPA 391/2013 and CM APPL. 9111/2013, LPA 392/2013 and CM APPL. 9114/2013, LPA 394/2013 and CM APPL. 9126/2013, LPA 395/2013 and CM APPL. 9134/2013, LPA 396/2013 and CM APPL. 9137/2013, LPA 397/2013 and CM APPL. 9141/2013, LPA 398/2013 and CM APPL. 9147/2013, LPA 399/2013 and CM APPL. 9152/2013, LPA 400/2013 and CM APPL. 9155/2013, LPA 401/2013 and CM APPL. 9158/2013, LPA 402/2013 and CM APPL. 9167/2013, LPA 403/2013 and CM APPL. 9174/2013, LPA 404/2013 and CM APPL. 9177/2013, LPA 405/2013 and CM APPL. 9180/2013, LPA 406/2013 and CM APPL. 9185/2013, LPA 410/2013 and CM APPL. 9200/2013, LPA 411/2013 and CM APPL. 9203/2013, LPA 412/2013 and CM APPL. 9206/2013, LPA 418/2013 and CM APPL. 9295/2013, LPA 421/2013 and CM APPL. 9311/2013, LPA 422/2013 and CM APPL. 9319/2013, LPA 423/2013 and CM APPL. 9325/2013, LPA 425/2013 and CM APPL. 9340/2013 & LPA No. 745 of 2013
Decided On : 03-07-2014

Advocates Appeared:
For the Appellants :Mr. Bijender Singh, Advocate.
For the Respondent:Ms. Raavi Birbal, Advocate.

The main legal point established in the judgment is the importance of proving the employer-employee relationship, the jurisdictional limitations of the Industrial Tribunal, and the onus of proof on the appellants. The judgment also highlights the non-compliance of Sections 25-G and 25-N of the Industrial Disputes Act.

Headnote:

Employer-Employee Relationship - Industrial Dispute - Industrial Disputes Act, 1970 - Sections 17B, 25-G, 25-N - The judgment discusses the issue of employer-employee relationship between the appellants and the respondent, the legality of termination, and the contract between the respondent and the security agencies. The court held that there was no employer-employee relationship between the appellants and the respondent. The issue of the contract between the respondent and the security agencies being sham or camouflage was not referred by the Central Government to the learned CGIT. The court emphasized that the Industrial Tribunal cannot travel beyond the terms of the reference. The court also highlighted the onus of proving the relationship of employer-employee on the appellants and the non-compliance of Sections 25-G and 25-N of the Industrial Disputes Act.

Fact of the Case:

The appellant claimed to have been continuously working with the respondent since July 1994 and sought reinstatement with backwages. The respondent denied the employment and termination of the appellant, stating that the security personnel were hired through a contractor. The Central Government referred the industrial dispute to the learned CGIT to determine the legality of the termination.

Finding of the Court:

The court found that there was no employer-employee relationship between the appellants and the respondent. The issue of the contract between the respondent and the security agencies being sham or camouflage was not referred by the Central Government to the learned CGIT. The court held that the Industrial Tribunal cannot travel beyond the terms of the reference. The court also emphasized the onus of proving the relationship of employer-employee on the appellants and the non-compliance of Sections 25-G and 25-N of the Industrial Disputes Act.

Issues: The main issues revolved around the employer-employee relationship, the legality of termination, and the contract between the respondent and the security agencies. The court also addressed the jurisdictional limitations of the Industrial Tribunal and the onus of proof on the appellants.

Ratio Decidendi: The court's decision was based on the lack of evidence proving the employer-employee relationship, the limited scope of the reference made by the Central Government to the learned CGIT, and the jurisdictional limitations of the Industrial Tribunal. The court also emphasized the onus of proof on the appellants and the non-compliance of Sections 25-G and 25-N of the Industrial Disputes Act.

Final Decision: The appeals were dismissed, and the court upheld the findings of the learned Single Judge. The appellants were deemed to have received sufficient compensation under Section 17B of the Industrial Disputes Act and were not liable to return the same.

J.R. Midha, J.:--

1. The appellants have challenged the judgment dated 20th March, 2013 whereby the learned Single Judge has set aside the award passed by the Central Government Industrial Tribunal-cum-Labour Court (hereinafter referred to as ‘CGIT’).

Factual matrix

2. The facts of all the appeals are common and, therefore, the facts in LPA 408/2013 are being noted herein.

3. Gopal, appellant in LPA 408/2013 (hereinafter referred to as the appellant) issued a notice of demand dated 10th September, 2002 to the respondent in which he claimed to be continuously working with the respondent since July 1994 on the post of Guard at a salary of Rs. 2,650/- per month. The appellant sought reinstatement with backwages.

4. The conciliation proceedings were held before the Assistant Labour Commissioner. The respondent in its reply before Assistant Labour Commissioner, denied having ever employed or terminated the appellant and stated that the various functions of the department were carried out through the contractor.

5. Upon failure of the Conciliation proceedings, the Central Government referred the following industrial dispute to the learned CGIT:

“Whether the termination of services of S/Shri Harinder Singh, Security Guard w.e.f. of 1.9.2002, Gopal, Security Guard w.e.f. 1.9.2002, Narender, Security Guard w.e.f. 1.2.2002, Bhagat Singh, Security Guard w.e.f. 1.9.2002, Roop Ram, Security Guard w.e.f. 1.9.2002, Tejveer, Security Guard w.e.f. 1.9.2002, Sanjay, Security Guard w.e.f. 1.9.2002, Satveer Singh, S/o Shri Hari Ram, Guard and Shri Sher Singh, S/o. Shri Harchanda Nagar, Guard w.e.f. 1.9.2002 by the management of BSNL, Faridabad is just and legal? If not, to what relief the workmen are entitled.”

6. In the claim statement dated 1st April, 2004, the appellant reiterated that he was employed with the respondent’s since July 1994 as a Security Guard at a monthly salary of Rs. 2,650/- and was terminated on 1st September, 2002; the respondent did not provide him any appointment letter, attendance card or wages slip; ESI and PF were deducted but the ESI card and the PF slip were not provided to him; and he was terminated on 1st September, 2002 without any written order and was told that the contract has been given to Anuradha Security Services.

7. The respondent in its written statement reiterated that they never appointed the appellant and as such, there was no employer - employee relationship between the parties. It was further stated that BSNL had not even been created in 1994 when the appellant claimed to have joined the respondent. It was further stated that the security personnel were hired through the contractor.

8. The appellant, in his evidence by way of affidavit, reiterated the contentions mentioned above. However, in cross-examination, the appellant contradicted his date of employment set up in the demand notice and statement of claim i.e. July 1994 and deposed that he was engaged in 1996 but he did not remember the month. The appellant denied being employed through three security contractors, namely, Laxman Security Agencies, Keshav Security Services and Anuradha Security Services who had provided the security according to the respondent.

9. The respondent’s AGM (Legal) in his evidence by way of affidavit deposed that the appellant was neither employed nor terminated by the respondent and there was no employer-employee relationship between the parties. The witness further deposed that BSNL was not even created in 1994 and at that time only Department of Telecom was in existence. The witness further deposed that nobody was appointed without following the rules. The witness further deposed that the respondent was required to engage security personnel from DGR’s sponsored agency in terms of the office memorandum dated 1st February, 1999 issued by the Department of Public Enterprises, Defence Ministry circular dated 26th April, 2001 and BSNL memorandum dated 3rd April, 2002.

10. The learned CGIT passed a common award dated 4th December, 200













































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