SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2023 Supreme(Del) 3258

IN THE HIGH COURT OF DELHI AT NEW DELHI
Najmi Waziri, J.
Indian Oil Corporation Ltd. – Appellant
Versus
Union of India & Ors. – Respondents
W.P.(C) 426 of 1999 & CONT.CAS(C) 244 of 2000
Decided On : 12-07-2023

Advocates appeared:
Mr. V.N. Koura, Senior Advocate with Ms. Paramjeet Benipal and Mr. Nirbhay Narain Singh, Advocates, for the IOCL.
Mr. Rajesh Gogna, CGSC, for the UOI.
Mr. Kailash Vasdev, Senior Advocate with Mr. Umrao Singh Rawat, Advocates, for the Respondent-3 in W.P.(C) 426/1999.
Mr. Parvinder Chauhan and Mr. Sushil Dixit, Advocates for Mr. Gopal Jee Gupta.
Mr. Harsh Jaidka, Advocate, for the Interveners.

Headnote:(A) Contract Labour (Regulation and Abolition) Act, 1970 - Section 10(1) - Writ petition challenging notification prohibiting employment of contract labour - Notification declared valid as all criteria for abolition met; principles of natural justice followed. (Paras 1, 68)

(B) The decision-making process must incorporate objectives outlined in the legislation; failure to comply with procedural requirements such as stakeholder notice and consideration of relevant factors can lead to judicial intervention. (Paras 16-22, 61-66)

Facts of the case:
Indian Oil Corporation Ltd. contested a government notification prohibiting contract labour at Mathura Refinery, claiming it was unjustified and procedurally flawed. The government contended that exploitation and unfair labor conditions existed, validating the notification (Paras 1, 10, 68).

Findings of Court:
The court found that due process was followed and the reasons supporting the prohibition were justified, thus upholding the government's notification (Paras 68).

Issues: Whether the government complied with statutory requirements under Section 10(2) of the Act and if the principles of natural justice were upheld (Para 19, 61).

Ratio Decidendi: The court upheld that the government appropriately assessed the employment conditions under Section 10(2), noting the issue of exploitation and the importance of protecting workers' rights (Paras 26, 48, 68).

Result: Writ petition dismissed, and the impugned notification was upheld (Para 68).

Table of Content
1. challenge to the notification regarding contract labour. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10)
2. allegations of procedural unfairness in notification issuance. (Para 11 , 12 , 13 , 14)
3. petitioner’s argument on failure to follow section 10 of the act. (Para 16 , 18 , 19 , 21 , 22)
4. justification of banning contract labour by the government. (Para 24 , 25 , 26 , 27 , 28 , 29 , 30)
5. court analysis of compliance with statutory obligations. (Para 41 , 42 , 43 , 47 , 49 , 50)
6. court’s dismissal of petition and affirmation of government notification. (Para 68 , 69)

JUDGMENT

Najmi Waziri, J.

W.P.(C) 426/1999, CM APPL. 3225/2000, CM APPL. 5764/2004, CM APPL. 1809/2012, CM APPL. 51973, CM APPL.42801/2022 & CM APPL.43224/2022

1. The petitioner challenges the legality and validity of the notification dated 09.11.1998, issued by the Union of India, under section 10(1) of the Contract Labour (Regulation and Abolition) Act, 1970, prohibiting the employment of contract labour in various departments of Mathura Refinery and Marketing Division of the Petitioner at Mathura ("Impugned Notification"), on the ground, inter-alia, that it is based on irrelevant considerations and without taking into account relevant factors.

CIRCUMSTANCES LEADING TO THE ISSUANCE OF IMPUGNED NOTIFICATION

2. Mathura Refinery was commissioned in 1981-82 to meet the demand of petroleum products in north-western region of India and to provide employment and development in this "less developed" region. During the construction phase of the refinery, large number of workmen had been employed through various contractors, in various departments of refinery. In 1985, the petitioner retrenched 48 contract workers through their respective contractors. A union named `The Mathura Refinery Mazdoor Sangh' was formed to represent these workmen. They challenged the said retrenchment in the Supreme Court of India by way of a writ petition [W.P. No. 2867/1986], seeking permanent absorption into the work force of the Mathura Refinery. On 16.01.1986, the Supreme Court held that the Central Government should refer the case to the Industrial Tribunal for adjudication of the following issues:

a) Whether the Petitioners and the 48 workmen whose services have been terminated are employees of the Indian Oil Corporation Limited, Mathura Refinery Project, Mathura?

b) Whether the termination of services of the 48 workmen was justified?

c) To what reliefs are the workmen entitled?

The Supreme Court inter-alia restrained the petitioner from retrenching the contract workers till the final disposal of the matter.

3. The Central Government Industrial Tribunal by its award dated 15.09.1989, held that that the contract labour employed at the Mathura refinery are, in law, not employees of the petitioner i.e., Indian Oil Corporation Limited but employees of the contractors. It also advised the petitioner to make a reference to the Central Advisory Board constituted under the Contract Labour (Regulation & Abolition) Act, 1970 (hereinafter `the Contract Labour Act') to undertake a study apropos the desirability of continuance or otherwise, whether wholly or to a limited extent, of the contract labour system at the Mathura Refinery. It also held that till such time the Central Advisory Board makes its recommendations and action is taken, the management shall ensure that the contract labour be paid at least the minimum pay scale of its regular employees.

4. Aggrieved by the order of the Industrial Tribunal, the Mazdoor Sangh filed a civil appeal before the Supreme Court. The appeal was dismissed and the order of the tribunal was upheld.

5. The Mazdoor Sangh approached the Central Advisory Contract Labour Board (CACLB) and sought initiation of proceedings under Section 10 of the Contract Labour Act. By resolution No. U-23013(10)/90/LW, dated 30.05.1990, the CACLB constituted a Tripartite Committee to consider the issue of abolition of contract labour system in various departments of

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top