Judges : SREEDHARAN
COMINCO BINANI ZINC LTD. - Appellant
Versus
PAPPACHAN - Respondent
Case No : O.P. No. 10914 of 1984
Decided On : 11/28/1988
Advocates Appeared :
B. S. Krishnan; For Petitioner Siby Mathew; M. Ramachandran; P.V. Abraham; For Respondent
Industrial Tribunal - Factories Act - S.46 - Ext. P3 Award - The court quashed the award in part, holding the petitioner liable for arrears of wages due to the workers but not for gratuity and bonus. The workers in the canteen were not considered employees of the petitioner, and the petitioner was not held liable for bonus and gratuity. The court emphasized the lack of an employer-employee relationship between the management and the canteen workers, and the responsibility of the contractor or society running the canteen to meet the claims of the workers. The court also clarified the petitioner's liability to pay wages due to the workers, as recognized in the Contract Labour (Regulation and Abolition) Act, 1970, and excluded bonus and gratuity from the wages due to the workers.
Fact of the Case:
The petitioner challenged Ext. P3 award passed by the Industrial Tribunal, which held the petitioner liable for bonus, gratuity, and arrears of wages to the workers engaged in the canteen. The petitioner contended that the canteen was run by contractors, and the workers were engaged by those contractors, not considered employees of the petitioner.
Finding of the Court:
The court quashed the award in part, holding the petitioner liable for arrears of wages due to the workers but not for gratuity and bonus. The workers in the canteen were not considered employees of the petitioner, and the petitioner was not held liable for bonus and gratuity.
Issues: The main issue was whether the workers in the canteen could be considered employees of the petitioner, and whether the petitioner was liable for bonus, gratuity, and arrears of wages to the workers.
Ratio Decidendi: The court emphasized the lack of an employer-employee relationship between the management and the canteen workers, and the responsibility of the contractor or society running the canteen to meet the claims of the workers. The court also clarified the petitioner's liability to pay wages due to the workers, as recognized in the Contract Labour (Regulation and Abolition) Act, 1970, and excluded bonus and gratuity from the wages due to the workers.
Final Decision: The court quashed Ext. P3 award in part, holding the petitioner liable for arrears of wages due to the workers but not for gratuity and bonus. The workers in the canteen were not considered employees of the petitioner, and the petitioner was not held liable for bonus and gratuity.
1. Petitioner challenges Ext. P3 award passed by the third respondent, Industrial Tribunal, Alleppey in I. D. No. 23 of 1982. The petitioner-company is having more than 250 workers on its rolls. As per S.46 of the Factories . Act and the Rules framed thereunder the Company has to provide and maintain a canteen for its employees. The company has provided all facilities for running a canteen. The right to conduct the canteen was being given on contract to others from time to time. First respondent was a contractor engaged for the said purpose and he was running the canteen upto 18-4-1978. From 19-4-1978 to 28-6-1978 the workers of the Company themselves were running the canteen. From 29-6-1978 a new contractor took up the responsibility of running the same. At no point of time had the company run the canteen by itself.
The contractors who took up the responsibility of running the canteen were engaging their-own workmen and they were being paid by the contractors. While so, some disputes arose between the first respondent and the workers engaged in the canteen regarding the payment of bonus and arrears of wages for a short period. Consequent on those disputes the following issues were referred to the Industrial Tribunal for its decision by the Government as per G.O. (Rt) No. 1109/79/L; H dated 4-8-1979:
(i) Settlement of gratuity to the canteen workers of Cominco Binani Zinc, Binanipuram;
(ii) Bonus and arrears of wages to the above workers for the period upto 28-6-1978. After trial the Tribunal passed Ext. P3 Award, the operative portion of which is in the following terms:
"In the above circumstance I pass this award holding that the workers of canteen are also entitled for bonus during 1977-78 also on the same basis they received in the year 1976-77. The management will pay bonus due to them as the principal employer and after paying the bonus, if they are so advised, they can proceed against the concerned contractor."
2. The contention raised by the petitioner is that the canteen was run by contractors like the first respondent, that the employees of the canteen were engaged by those contractors, that they are never considered as employees of the petitioner and that the petitioner is not liable to pay any-thing other than the actual wages due to the workmen if it is found that the contractors failed to give wages to their employees. It is the specific case advanced by the petitioner that no claim of bonus or gratuity can be made against them under the provisions of the Industrial Disputes Act, Payment of Wages Act or under any other legislation.
3. Ext. P1 is a copy of the statement of claim submitted by the union before the Tribunal. In paragraph-3 of that statement it is specifically averred that the service conditions of the employees working in the canteen were regulated by the settlements entered into between the concerned contractors and the union in the presence of Conciliation Officers. This statement of the union will go to show that the petitioner had nothing to do with the settlements which regulated the conditions of service of the employees engaged in the canteen. As per S.46 of the Factories Act, the petitioner should provide and maintain a canteen for the use of its workers. In discharge of this obligation they have provided building, utensils, electrical fittings etc. for running the canteen. The actual responsibility of running the canteen was never taken by the petitioner. For the said purpose they engaged contractors. The contractors who were running the canteen employed their workmen. Can those workmen be considered as employees of the petitioner? The liabilities of the petitioner to discharge the obligations to the employees engaged in the canteen depend on the answer to this question.
4. As a matter of fact the Tribunal in Ext. P3 Award came to the conclusion that the workers were employed by the contractors who were running the canteen and that all the settlements regarding their service conditions
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