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HIGH COURT OF DELHI
YASHWANT VARMA, RAVINDER DUDEJA, JJ
MANAGEMENT OF ASHOK HOTEL (ITDC) – Appellant
Versus
THEIR WORKMEN & ANR. – Respondent
JUDGMENT :
YASHWANT VARMA, J.
1. This Letters Patent Appeal[LPA] is directed against the judgment rendered by the learned Single Judge on 19 February 2013 in terms of which an Award rendered by the Industrial Tribunal[Tribunal] has come to be upheld. In terms of the Award dated 05 October 2005, the petitioner-appellant was directed to frame a policy of regularisation in respect of the respondent workmen. Both the Tribunal as well as the learned Single Judge have essentially held against the appellant on the ground that the engagement of the respondent-workmen through a contractor was merely a ruse to overcome the obligations which would have stood attached in case it were to be recognized to be the principal employer.
2. For the purposes of evaluating the challenge which stands raised, it would be apposite to firstly take note of the reference which was made to the Tribunal by the appropriate government:-
“Whether Shri Perumal and 25 others workmen whose names are shown in Annexure 'A' are entitled to regularization and wages at par with their regular counterparts in the post of Houseman/ Safaiwala. If so, what directions are necessary in this respect?”
3. The respondent-workmen pursuan
The mere issuance of a prohibition notification under Section 10 of the CLRA Act does not automatically lead to the absorption of contract labour as employees of the principal employer; such a determ....
The Industrial Tribunal exceeded its jurisdiction by declaring a contract as sham without a prohibition notification under Section 10 of the CLRA Act, which is necessary for such a determination.
The Tribunal exceeded its jurisdiction by declaring the contract as sham without sufficient evidence, and the relationship between the contractor and workers was valid under the Contract Labour Act.
Absorption of contract labour – There is no provision under Section 10 of CLRA Act that workers/employees employed by contractor automatically become employees of appellant and/or employees of contra....
The determination of employment relationships and the validity of contracts lies within the jurisdiction of the industrial adjudicator, particularly when claims of sham contracts are raised.
Point of Law : Neither the recommendations of that Committee nor the notification ultimately prohibiting the engagement of contract labourers by CPWD, has been ever questioned or assailed by the resp....
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