The main legal point established in the judgment is the importance of considering seniority during the absorption process of contract labourers to avoid violation of constitutional provisions, as highlighted by the legal principles established by the Supreme Court.

S. Palanivelu, J.

Both these writ appeals are directed against the order of the learned single Judge dated 15. 2002, made in W.P.No.8 of 1996. The said writ petition was filed by N.L.C.INDCO SERVE Thozhilalar Uzhiyar Sangam, praying to issue a Writ of Mandamus to forbear the first respondent therein viz. the Neyveli Lignite Corporation, its men, officers, agents and servants from absorbing any contract labour or any other employee either permanently or temporarily in the first respondent Corporation without following the seniority on the basis of the date of entry in Corporation either as a contract labour or directly and consequently direct the first respondent to absorb and regularise the members of the petitioner union as employees of the first respondent Corporation with all monetary and service benefits with effect from the date of entry into service in the first respondent Corporation either as a contract labour or otherwise.

2. For the sake of convenience, the status of the parties is referred to as per their ranking in the Writ Petition No.8 of 1996.

3. The averments of the Writ Petition, in short, are as follows:-

The first respondent is a Public Sector Undertaking. N.L.C.Indco Serve Thozhilalar uzhigar Sangam is represented by its President N.Narayanan. The Neyveli Lignite Corporation (herein after referred to as NLC) and the Managing Director N.L.C.Indco Serve are the first and the third respondents in the Writ Petition. The second respondent therein is Assistant Commissioner of Labour (C), Shastri Bhavan at Madras. The fourth to tenth respondents are various labour unions, whose members are employees of NLC. The members of the petitioner union are engaged through contractors as employees for the effective functioning of the first respondent. They had been continuously employed as such ranging from 15 years to 19 years. As per the provisions of the labour welfare legislations such as Industrial Disputes Act, 1947, by this time, the first respondent should have absorbed all the members of the petitioner union as permanent employees on regular basis and the failure on their part would amount to “unfair labour practice”. The NLC Industrial Co-operative Service Society Limited (in short as NLC.) was formed on 10.05.1990 with the below mentioned object:-

“The object of the society is to take and execute various items of work entrusted to it by the Neyveli Lignite Corporation Ltd., within its area of operation and to provide employment to its members/workers and work for economic uplift bearing in mind their object, the workman shall always endeavour for satisfying the Neyveli Lignite Corporation Ltd., by diligent and efficient work.”

4. The said society is a registered one under the Tamil Nadu Co-operative Societies Act. The N.L.C.Indco serve is a State within the meaning of Article-12 of the Constitution of India. There are nearly 1,400 employees, who are the members of the petitioner union. It is the duty of N.L.C.Indco Serve to regularise the members in the first respondent Corporation on the basis of seniority fixed on the strength of the date of entry into service therein either through contractors or directly. The petitioner’s union members are entitled to claim absorption with seniority. Hence, the petitioner union forwarded a written representation dated 29.06.1994 to the Chief Minister’s Cell and various authorities narrating their grievances in detail. The first respondent even after getting it have not taken any steps. Again, a consideration petition dated 24.04.1995 was given to the second respondent. On the basis of the consideration petition, conciliation proceedings were initiated. However, no effective result has been achieved and the Management is keeping quiet without appearance.

5. When the matter stood thus, respondents 1 and 3 are absorbing members of N.L.C.Indco Serve as well as non-members, as per their whims and fancies without following any principle including the one of seniority.