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IN THE HIGH COURT OF DELHI
Rajiv Shakdher, Talwant Singh, JJ.
Vijay Kumar Yadav - Appellant
Versus
Union of India - Respondent
W.P.(C) 5080 of 2021, CM Nos. 15548 of 2021 & 18754 of 2021 and W.P.(C) 6060 of 2021 & CM No. 19197 of 2021
Decided On : 07-02-2022




Contract labour cannot be employed in establishments under Section 10 of the Act; transferring employees for this purpose violates legal provisions.

Headnote:(A) Contract Labour (Regulation & Abolition) Act, 1970 - Section 10 and Section 31 - Transfer of employees from notified depots to others for engaging contract labour - Court emphasized that once a notification under Section 10 is issued, no contract labour may be employed in that establishment, and any transfer for such purposes cannot be accepted. (Paras 15.1-15.6)

(B) Writ Jurisdiction - Court's intervention in transfer orders - Transfers are an incident of service, and will not be interdicted unless proven to be mala fide or in violation of statutory provisions. (Paras 15.4-15.5)

Facts of the case:
Petitioners, employees of the Food Corporation of India, apprehended an en bloc transfer to different depots in order to employ contract labour, violating notifications under Section 10. FCI attempted this with e-tender notices 4/2021 and 5/2021.

Findings of Court:
E-Tender Notice No. 4 of 2021 quashed, allowing FCI to transfer employees but restricting the use of contract labour in notified depots.

Issues: Whether FCI can engage contract labour in depots notified under Section 10 of the Act?

Ratio Decidendi: The court ruled that engaging contract labour in a notified depot contravenes Section 10 of the Act.

Result: E-Tender Notice No. 4 quashed; No restrictions on transfers of employees, but contract labour deployment in notified depots prohibited.

JUDGMENT

[Court hearing convened via video-conferencing on account of COVID-19]

Rajiv Shakdher, J.

TABLE OF CONTENTS

    Preface:

    Background:-

    Submissions on behalf of the petitioners:-

    Submissions on behalf of FCI

    Analysis and reasons

    Conclusion

Preface:

1. Shorn of unnecessary details, the grievance which has impelled the petitioners to approach this Court is briefly this:

1.1. The petitioners, who are regular employees of respondent no.2 i.e., the Food Corporation of India [hereafter referred to as "FCI"] apprehend being transferred en bloc from FCI Food Storage Depots [in short "FSDs"] located at Shakti Nagar and Mayapuri to depots located at Okhla and other locations.

1.2. It is the petitioners' case that both depots i.e., FCI FSDs located at Shakti Nagar and Mayapuri, where they are presently located, have notifications issued qua them, under Section 10 of the Contract Labour (Regulation &Abolition) Act, 1970 [in short "CLRA Act"]. Thus, according to the petitioners, once the notification under Section 10 of the CLRA Act was issued, the FCI could not have deployed contract labour in the aforementioned depots [i.e., FSD Shakti Nagar and FSD Mayapuri], and therefore, in pursuing this course, FCI has whittled down their legal rights, by attempting to redeploying/transferring them en bloc to another depot.

1.3. It is on account of this grievance that the petitioners have approached this Court by way of the above-captioned writ petitions, to assail e-tender notice no.4/2021 dated 01.03.2021 and e-tender notice no.5/2021 dated 23.06.2021. Insofar as e-tender notice no.4/2021 is concerned, it is assailed in W.P.(C)No.5080/2021, while e-tender notice no.5/2021 has been challenged in W.P.(C)No.6060/2021.

2. At this stage, it would be relevant to note that after the matters were reserved, an affidavit dated 29.10.2021 was filed in W.P.(C) No.6060/2021 on behalf of FCI, stating that e-tender notice no.5/2021 dated 23.06.2021 had been cancelled on 12.10.2021; an aspect which was alluded to across the bar in the course of the hearing.

2.1 Given this position, we had, in the course of the hearing, tried to ascertain from the counsel appearing on behalf of FCI, as to whether FCI would be issuing a fresh tender for engaging contractual labour at FSD Mayapuri. Since we did not get a clear response, hearing in the concerned writ petition i.e., W.P.(C)No.6060/2021 was also continued, along with W.P.(C)No.5080/2021.

3. It would be worthwhile to note, at this juncture, that FCI banks upon the notification dated 06.07.2016, issued by the appropriate government [respondent no.1 i.e., the Government of India (GOI)] under Section 31 of the CLRA Act, to contend that the notifications issued under Section 10 of the very same Act, qua the depots covered under it have been rendered inefficacious. Thus, insofar as FSD Shakti Nagar is concerned, FCI contends that the prohibition against the engagement of contractual labour is no longer applicable. As regards FSD Mayapuri is concerned, FCI's stand is that notification under Section 10 of the CLRA Act has not been issued by the appropriate government, and, therefore, the objection taken by the petitioners vis-a-vis FSD Shakti Nagar would not be applicable in the case of FSD Mayapuri.

3.1 It is, however, not disputed by FCI that since the notification dated 06.07.2016 had a limited span of two years, it was extended twice i.e., on 26.06.2018 and 25.06.2020.

3.2 It is also not disputed by FCI that notifications dated 06.07.2016 and 26.06.2018 are the subject matter of challenge in W.P.(C) No.7627/2016, titled FCI Handling Workers Union vs. Union of India & Ors., and W.P.(C) No.7241/2016, titled Food Corporation of India Shramik Union vs. Union of India & Anr., which are pending adjudication before the learned single judge. The petitioners and FCI are at odds concerning the challenge to the notification dated 25.06.2020, whereby the duration of the initial notification dated 06.07.2016 was ext

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