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



IN THE HIGH COURT OF DELHI
Prathiba M. Singh, J.
Naveen Kumar - Appellant
Versus
Employees State Insurance Corporation - Respondent
W.P.(C) 3956 of 2020 & CM Appls. 14200 of 2020 and 14201 of 2020 with W.P.(C) 4744 of 2020 & CM Appls. 17115 of 2020, 17116 of 2020 and W.P.(C) 5545 of 2020 & CM Appl. 19987 of 2020, 19988 of 2020
Decided On : 10-02-2021




The court ruled that contractual employees cannot be replaced without valid justification, and mass termination does not constitute exceptional circumstances for bypassing the Industrial Disputes Act's statutory remedies.

Headnote:(A) Industrial Disputes Act, 1947 - Scope of judicial review - Writ petitions dismissed as alternative remedies available under ID Act - Mass termination of contractual employees deemed not exceptional circumstances for exercise of writ jurisdiction. (Para 33)

(B) Employment Law - Contractual employment - Legal framework establishes that contractual employees cannot be replaced en masse without misconduct justifying removal - Allegations against workmen disputed; mere demands do not establish misconduct. (Paras 5-6)

Facts of the case:
The petitions were filed by 86 contractual workmen engaged in ESI Hospital who were informed of their termination after a change of contractors. They alleged unlawful demands from the new contractor to continue their services.

Findings of Court:
Writ petitions deemed not maintainable as the issues raised relate to industrial disputes requiring resolution by the Labour Court under the ID Act.

Issues: 1) Maintainability of writ petitions in light of alternative remedies. 2) Legality of replacing contractual employees due to contractor change.

Ratio Decidendi: The court held that mass termination does not constitute exceptional circumstances and reiterated that industrial disputes should be adjudicated under the ID Act as per established judicial precedents.

Result: Writ petitions dismissed with liberty to seek resolution in the appropriate forum under the ID Act.

Table of Content
1. workmen's engagement and contract termination (Para 2 , 3 , 4)
2. contention on legal precedent and contractual rights (Para 5 , 6 , 8 , 10 , 11 , 12)
3. maintainability of writ petitions and alternative remedies (Para 21 , 22 , 23)
4. evaluation of exceptional circumstances in labor disputes (Para 24 , 26 , 27)
5. conclusion and direction for future remedies (Para 28 , 31 , 33)

JUDGMENT

Prathiba M. Singh, J. This judgment has been pronounced through video conferencing.

2. The present writ petitions have been filed by various Petitioners/Workmen (hereinafter referred as "Workmen"), who were working in the Employees' State Insurance Hospital, Basai Darapur, Delhi-110015 (hereinafter referred as "ESI Hospital") run by Employees' State Insurance Corporation (hereinafter referred as "the Corporation"). These three writ petitions cover a total of 86 Workmen, who worked as Safai Karamcharis at the ESI Hospital. They were engaged by Uttar Pradesh Rajkiya Nirman Nigam (hereinafter referred as "UPRNN") through a sub-contractor who is Respondent No.3, M/S. New S.S. Enterprises (hereinafter, "old Contractor").

3. The case of the Workmen, is that the contract of maintenance of ESI Hospital was awarded by Respondent Nos.1 & 2, to the old Contractor, under the supervision of UPRNN, since August 2019. The Workmen were told on 30th May 2020 that the contract of Respondent Nos. 1 & 2 with the old Contractor had come to an end. Respondent No.4, i.e. M/S. S. N. Enterprises (hereinafter, "new Contractor"), was supposed to replace Respondent No. 3 as the new contractor, with effect from 1st June 2020.

4. The Workmen, thereafter, approached the supervisor of the new Contractor, requesting to continue services in the ESI Hospital. The allegation of the Workmen is that the new Contractor told them that if they wish to continue their services in the ESI Hospital, with the new Contractor, they would have to pay a sum of Rs.13,000/- each, which was their monthly salary, to the supervisor of the new Contractor. According to the Workmen, since they did not accede to the these demands, they have been disengaged from their services in the ESI Hospital.

Submissions

Submissions of the Petitioners/Workmen

5. Ms. Ritu Jain, ld. counsel appearing for the Workmen, submits that the legal position on the questions that have arisen in these writ petitions is well settled. She submits that no contractual employee can be replaced by another contractual employee, in accordance with the judgment of the Hon'ble Supreme Court in State of Haryana and Ors. v. Piara Singh, [(1992) 4 SCC 118], which has also been considered by a ld. Single Judge of this court in Anil Lamba v. GNCTD, (238 (2017) DLT 760). She further submits that until and unless there is a specific allegation of misconduct against any particular Workman, they cannot be removed from service and an en masse sacking of all the contractual Workmen is completely illegal. She also relies upon the recent order of this court in Sh. Hemant Kumar and Ors. v. Employees State Insurance Corporation and Ors., (W.P.(C) 6891/2019), where a ld. Single Judge of this court has relied upon Piara Singh (supra) and Anil Lamba (supra) to hold that the old Workmen need to be absorbed by the new Contractor. Ms. Jain, ld. counsel submits that this recent consideration by the Court, vide the abovementioned order, itself settles the matter in the favour of the Workmen, and there is no reason as to why this order should not be followed.

6. Ms. Jain then compares the tender quoted last year, which was for 153 workers, with the one floated this year, and submits that for 122 workers in this year's tender, a higher amount of money is being paid. She further submits that almost 100 contractual Workmen, who were working in the hospital, have been disengaged, which is affecting more than 500 lives as they are not earning any salary since the last 4 to 5 months.

7. On the question of misconduct and nuisance, it is subm

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