IN THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
MICHAEL ZOTHANKHUMA, J.
Jatin Rajkonwar And Ors. – Appellant
Versus
Union Of India And Ors. – Respondents
WP(C) 3871 of 2020
Decided on : 04-10-2024
Employment - Contract Labour - Contract Labour (Regulation and Abolition) Act, 1970 - Sections 7, 10, 12, 23, 25 - The court interpreted the provisions regarding employer-employee relationships and the validity of contract labour arrangements, concluding that the petitioners failed to establish such a relationship with the ONGC.
Fact of the Case:
The petitioners challenged the dismissal of their claim for reinstatement and regularization by the Central Government Industrial Tribunal, arguing they were directly employed by ONGC before being engaged through a contractor.
Finding of the Court:
The court found that the petitioners could not prove an employer-employee relationship with ONGC, as they were engaged through a contractor who had a valid license only after the petitioners' initial engagement.
Issues: Whether the petitioners were employees of ONGC or merely contract labourers under a contractor, and if the Tribunal erred in dismissing their claim for reinstatement.
Ratio Decidendi: The court held that the absence of direct engagement evidence and the contractor's valid license negated the claim of an employer-employee relationship, adhering to established legal principles regarding contract labour.
Result: The writ petition is dismissed.
JUDGMENT :
Heard Mr. A. Dasgupta, learned senior counsel, assisted by Ms. B. Das, learned counsel for the six writ petitioners and Mr. G. N. Sahewalla, learned senior counsel, assisted by Mr. M. Sahewalla, learned counsel for the respondent Nos. 2 & 3.
2. The petitioners have put to challenge the award dated 11.07.2019 passed by the Central Government Industrial Tribunal-cum- Labour Court, Guwahati in Reference Case No. 3/2016, wherein the learned Tribunal has dismissed the claim of the petitioners to be reinstated into service and regularized, on the ground that there was no employer-employee relationship between the petitioners and the respondent Nos. 2 & 3, i.e. ONGC.
3. The case of the petitioners is that the petitioners were engaged directly as Contract Labourers by the ONGC in the year 1985-1986 and later on they were engaged on contract basis through a contractor, i.e. Mr. T.R. Phukan. The engagement of the petitioners on contract basis with Mr. T. R. Phukan, on a later date, was only a paper/sham engagement, which sought to camouflage the fact that the direct engagement between the petitioners and the ONGC still remained. The petitioners were thereafter disengaged by the ONGC in the year 1995/1996.
4. The petitioners’ case is that as they were directly engaged by the ONGC in the year 1985 till their disengagement, their services should be reinstated and regularized with the ONGC.
5. As the prayer of the petitioners was not being considered by the ONGC, the 22 persons including the 6 petitioners approached this Court by way of Civil Rule No. 3366/1995. This Court passed an order dated 12.09.1997 directing the Assistant Labour Commissioner (Central), Guwahati, to cause an enquiry and submit a report on the status of the petitioners. Accordingly, enquiry was held and a report dated 05.01.1998 was made, which was to the effect that some of the 22 workmen worked in two spells. Firstly under direct payment system till December, 1986 from the ONGC and w.e.f. January, 1987 to March, 1996 under the ONGC contractor, Mr. T.R. Phukan. Further, the job profile of the workmen was for loading, unloading and handling, which appeared to be perennial nature of job. Some of them were also performing the work of typists. This Court, vide order dated 24.08.1998, held that as it was not possible for the Court to make an order for regularization of the concerned workmen as regular employees of the ONGC, the better course would be for the petitioners to approach the ONGC to examine the matter in the context of the correct factual position made in the official records. This observation of this Court in the order dated 24.08.1998, had been made due to the fact that the ONGC had denied the stand taken by the writ petitioners that they were appointed directly as contract labourers by the ONGC. Further, the ONGC stand was that they were in fact engaged by the contractor of the ONGC, i.e. Mr. T. R. Phukan, for supplying labour.
6. This Court in its order dated 24.08.1998 passed in Civil Rule No. 3366/1995 held that the ONGC, being a Public Undertaking, was supposed to do things in keeping with the provisions of the Contract Labour (Regulation and Abolition) Act, 1970 (hereinafter referred to as ‘1970 Act’) and as desired by the learned counsel for the petitioners, the matter was left to the better discretion of the ONGC authorities to pass appropriate orders, after examining as to which of the petitioners could be given the status of an employee of the ONGC. This Court further held that in case the petitioners still felt aggrieved, they may approach the Labour Court for appropriate relief in accordance with law.
7. The petitioners thereafter approached the ONGC in pursuance to the order dated 24.08.1998 passed in Civil Rule No. 3366/1995. As no decision was forthcoming in favour of the petitioners, the petitioners approached the Central Labour Commissioner, Guwahati with a prayer for raising an industrial dispute against the ONGC, regarding the petitioner
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The court established that without clear evidence of direct employment, claims of an employer-employee relationship under contract labour provisions cannot succeed.
it is difficult to extend minimum time scale to the petitioners as they were not engaged by respondent Nos. 4 to 11 either on contract basis or outsourcing basis.
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.
The central legal point established in the judgment is the requirement for contract labourers to comply with the terms and conditions stipulated for regularisation and permanent absorption, including....
A judgment contrary to the evidence or without evidence is perverse. Concession of counsel on such facts and law does not bind the party.Master-servant relationship.
The main legal point established in the judgment is the application of the test to determine direct employment of employees by the principal employer, focusing on the payment of salary and the contro....
Burden of proof in employment disputes shifts to the employer once workmen establish their employment. In cases of termination, statutory compliance is critical.
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 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....
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