The exemption under the Contract Labour Act is valid, allowing the Food Corporation to engage contract labour and transfer DPS workers, affirming the authority of the employer in service matters.

JUDGMENT :

(N. NAGARESH, J.)

Dated this the 7^th day of January, 2025 The issueS raised in all these writ petitions are whether the exemption under the Contract Labour (Regulation and Abolition) Act, 1970 granted by the Government of India to the Food Corporation of India as per Notification dated 06.07.2016 is valid, whether the action of the Food Corporation of India in finalising e-tenders for engaging contract labours at their godowns is justified and whether the transfer of DPS workers effected by the Food Corporation of India is sustainable or not. For convenience, the parties to the writ petitions and exhibits marked are referred to as they appear in W.P.(C) No.16618 of 2023.

2. The petitioners are labourers under Direct Payment System (DPS), working under the Food Corporation of India, in their Food Storage Depot ((FSD), at Kazhakoottam, Thiruvananthapuram. The petitioners state that the FSD Kazhakoottam is a notified Depot under the Contract Labour (Regulation and Abolition) Act, 1970.

3. The petitioners state that notified depots are those depots where employment of contract labour is prohibited. By the judgment in PIL No.84 of 2014 dated 20.11.2015, the Hon'ble High Court of Bombay, Nagpur Bench directed the Government of India to decide the representation made by the Food Corporation of India for grant of exemption under the provisions of Section 31 of the Contract Labour (Regulation and Abolition) Act, 1970. The Government of India was also directed to decide the issue regarding the notification of the depots of the Food Corporation of India.

4. The Central Advisory Contract Labour Board (CACLB) dismissed the application of the Food Corporation of India for grant of exemption. The Food Corporation of India did not challenge the decision of the CACLB. However, the 1^st respondent-Union of India arbitrarily passed exemption notification dated 06.07.2016 under Section 31 of the Contract Labour (Regulation and Abolition) Act, 1970.

5. On the basis of the exemption notification dated 06.07.2016 issued by the Union of India, the Food Corporation of India issued letter dated 12.07.2016, laying down guidelines to be followed by its General Managers. The guidelines provided that subsequent to pooling of Labours, handling contractors be deployed in vacant depots following due process.

6. The labour unions challenged the guidelines dated 12.07.2016 filing writ petition in the Hon'ble High Court of Delhi. The Hon'ble High Court of Delhi passed Ext.P1 order dated 02.05.2017, directing to maintain status quo with regard to conditions of service in respect of the workmen during the pendency of the petition. By Ext.P2 order, the Hon'ble High Court of Delhi stayed the order to transfer the workers of FCI issued pursuant to the notification dated 06.07.2016. Ext.P2 order was made absolute as per Ext.P3 order dated 04.02.2019.

7. The petitioners state that when the Food Corporation of India published its Tender Notice to employ contract labour in FSD, Shakti Nagar, a Division Bench of the Hon'ble Delhi High Court quashed the Tender Notice as per Ext.P5 judgment in W.P.(C) Nos.5080 and 6060 of 2021. The Hon'ble Apex Court stayed the operation of Ext.P5 judgment as per Ext.P6 order dated 13.04.2022 in S.L.P.(C) No.5997 of2022.

8. The petitioners state that the 3^rd respondent-General Manager, FCI Regional Office, Thiruvananthapuram issued Ext.P7 Tender Notice dated 28.04.2023, inviting tenders from individuals for appointment as Handling and Transportation Contractors for food grains at FSD, Kazhakoottam, for a period of two years. Ext.P7 Tender Notice was followed by Ext.P8 e-tender notice dated 20.05.2023.

9. The petitioners state that in identical circumstances, a Division Bench of the Delhi High Court, in W.P.(C) No.5080 of 2021, stayed the Tender Notice published by FCI to employ contract labour in FSD. The notifications dated 06.07.2016, 26.06.2018, 25.06.2020 and 19.10.2022 of the Union of India are absolutely arbitrary and illegal and are