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2016 Supreme(Ori) 565

IN THE HIGH COURT OF ORISSA, CUTTACK
SANJU PANDA, SUJIT NARAYAN PRASAD, JJ.
M/s HPCL, BBSR - Petitioner
Versus
Government of India, Ministry of Labour, New Delhi and others - Opposite Parties
W.P.(C) No. 13744 of 2016
Decided On : 08-09-2016

Advocates Appeared:
For the Petitioner: M/s Nitish Ku. Mishra, A.K. Roy & A. Mishra
For the Opposite Parties :Additional Government Advocate

The appropriate government's power to refer a dispute for adjudication is an administrative function and cannot delve into the merits of the dispute. The court emphasized the importance of allowing parties to lead evidence for proper adjudication of the dispute and the limited scope of judicial review in interfering with administrative decisions.

Headnote:

Industrial Disputes Act - Disengagement Dispute - Section 10(1), Section 2(s), Section 12(4) - The court discussed the provisions of Section 10(1) of the Industrial Disputes Act, 1947 and its interpretation by the Hon’ble Supreme Court. The court emphasized that the appropriate government's power to refer a dispute for adjudication is an administrative function and cannot delve into the merits of the dispute. The court also highlighted the importance of allowing parties to lead evidence for proper adjudication of the dispute and the limited scope of judicial review in interfering with administrative decisions.

Fact of the Case:

The petitioner, a government undertaking, terminated a contract with a contractor, leading to a dispute raised by the workmen engaged by the contractor. The appropriate government referred the dispute for adjudication under Section 10(1) of the Industrial Disputes Act, 1947.

Finding of the Court:

The court found that the appropriate government's decision to refer the dispute for adjudication was an administrative function and should not be interfered with unless made in bad faith or mala fide and corrupt motive, which was not the case here. The court dismissed the writ petition, allowing the parties to lead evidence for proper adjudication of the dispute.

Issues: The issues involved the termination of workmen engaged by a contractor, the role of the petitioner-company, and the appropriateness of the reference made by the appropriate government for adjudication.

Ratio Decidendi: The appropriate government's power to refer a dispute for adjudication is an administrative function and cannot delve into the merits of the dispute. The court emphasized the importance of allowing parties to lead evidence for proper adjudication of the dispute and the limited scope of judicial review in interfering with administrative decisions.

Final Decision: The court dismissed the writ petition, allowing the parties to lead evidence for proper adjudication of the dispute.

JUDGMENT :

S.N. Prasad, J.

This writ petition is against the order dated 2.11.2015 issued under the signature of the Under Secretary to Government of India, Ministry of Labour, New Delhi whereby and where under the central government in exercise of power conferred under clause (d) of sub-section (1) and sub-section (2A) of Section 10 of the Industrial Disputes Act, 1947 referred the dispute for adjudication to the Central Government Industrial Tribunal-cum-Labour Court, Bhubaneswar and the terms of reference is as follows:-

“Whether the disengagement of trained and experienced workmen Shri A.K. Satpathy, Shri H.K. Sahoo, Shri D.K. Samal & S.K. Mahapatra who had worked with HPCL from 2009 to 2014 continuously through different contractors for Aviation Operation in Bhubaneswar Airport is legal and/or justified? If not, what relief the workmen are entitled to ?”

2. Facts of the case in brief is that the petitioner is a company incorporated under the Companies Act and is a Government of India Undertaking falling under the administrative control of the Ministry of Petroleum and Natural Gas, New Delhi. The petitioner-company is engaged in refining of imported and indigenous crude oil, storage and marking of petrol, diesel, LPG, ATF, Lube oils, Furnace Oil and other petroleum products. Having its Zonal Marking offices in different parts of the country having regional offices, OLPT Bottling Plants, Installments/Terminals, Depots, Pipelines, Aviation Service Facility and hospitality locations. Bhubaneswar Aviation Service Facility establishment was one of such units of HPCL. The activities of the petitioner-company, which are regular and perennial in nature requiring adequate still, are carried out through permanent workers engaged by the petitioner. However, some of the activities, which are non-perennial in nature and where work is of intermittent nature, are carried out on contract basis by engaging contractors through competitive bidding system as per the procedure followed by the petitioner like all Public Sector Companies in line with the Government of India guidelines. For such purpose, the contractors appoint/engage their own workmen, who are known as contract labour and the petitioner has absolutely no control in the selection, appointment, supervision and deployment of the contract labour. The contractors depute their own supervisors to supervise the jobs of the contract labour by giving instructions to the contract workmen in line with the job description required to be carried out under the contract signed with the petitioner. One M/s Rajdhani Security Services (opposite party no.6) was awarded the contract vide order dated 28.3.2014 for a period of one year for providing DGR Refuelling Manpower including HMV Drivers and Crew Men for the Bhubaneswar ASF location of the petitioner company. Opposite parties 2 to 5 were engaged by the said opposite party no.6-contractor as contract labourers for the purpose of fulfillment of the said contract. It was the sole prerogative of the contractor, whether to engage new workers or to continue with the workers, who had been engaged by the previous contractor and the petitioner had no role to pay in the selection, supervision and service condition of the contract labour deployed by the contractor.

Due to reduction in business at the Bhubaneswar Airport, the petitioner has stopped its ASF operation at the Bhubaneswar Airport w.e.f. 1.8.2014 and accordingly vide letter dated30.7.2014 the conatraft awarded to the opposite party no.6 was terminated by written communication. Opposite parties 2 to 5 raised a frivolous complaint before the Central Labour Authorities at Bhubaneswsar claiming to be working as outsourced employees at the petitioner-company since 2009 after being provided training by the HPCL but to have been rendered jobless as HPCL suspended operations at Bhubaneswar Airport in favour of Bharat Petroleum Corporation Limited. The workmen raised complaint which was admitted into concili






















































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