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2014 Supreme(All) 1857

ALLAHABAD HIGH COURT
BEFORE : MRS. SUNITA AGARWAL, J.
M/s. INDIAN FARMERS FERTILIZER COOPERATIVE LTD. ALLAHABAD .....Petitioner
Versus
PRESIDING OFFICER, LABOUR COURT (U.P.) ALLAHABAD AND OTHERS ....Respondents
(Civil Misc. Writ Petition No. 17802 of 2008, decided on 19th December, 2014)

Advocates:
Counsel :
Vijay Ratan Agrawal and Vivek Ratan for the Petitioner; C.S.C., Ashok Mehta, Kritika Singh and Gautam Chaudhary for the Respondents.

Headnote:Constitution of India, 1950—Article 226—Contract Labour (Regulation and Abolition) Act, 1970—Sections 2(b), 2(c), 2(g), 12, 20, 21 and 23—Contract Labour (Regulation and Abolition) Rules, 1971—Rules 18, 25, 74, 75, 76 and 80—Termination—Contract Labour—Right to engagement—Determination of—Services of the respondent No. 3-Workman terminated by petitioner—Whether he was an employee of petitioner and not of contractor—Plea of camouflage—Whether the impugned finding of Labour Court that the workman was an employee of IFFCO and not of contractor is sustainable—Held, 'Yes'—Salary was found to be paid by IFFCO Management and not by the contractor—Respondent No. 3-workman also found to be working under the direct control and supervision of petitioner—And worked for more than 240 days in one year—Workman held a direct employee of IFFCO and the contract was sham and camouflage—Reinstatement directed—Directions issued. [Paras 20 to 52]

       Result; Petition Dismissed.

JUDGMENT

Hon’ble Mrs. Sunita Agarwal, J.—Heard Sri Vivek Ratan, learned counsel for the petitioner, Sri Ashok Mehta, learned Senior Counsel assisted by Sri Gautam Chaudhary, learned counsel appearing for respondent No. 3 and learned Standing Counsel.

2. The present writ petition arises out of an award dated 20.6.2007 passed by the Presiding Officer, Labour Court (U.P.), Allahabad in Adjudication Case No. 28 of 2007. An industrial dispute was raised by respondent No. 3-workman on the ground that his services have been illegally terminated by the petitioner employer and he was an employee of IFFCO the petitioner and not of contractor M/s. H.S. Construction, respondent No. 4. The State Government referred the dispute to the Labour Court for adjudication as under :

“whether the termination of services of workman, Sri Manoj Kumar Kumar Gupta, ‘Data Entry Operator’ with effect from 3.6.1999, by the employer is justified and/or legal? If not, then to what relief and compensation, the workman is entitled and its effect?”

3. In reference, the name of the petitioner M/s. Indian Farmers Fertilizer Cooperative Ltd., Phulpur, Allahabad and the contractor M/s. H.S. Construction, Pure Maharat, Phulpur, Allahabad have been mentioned as employers. The dispute raised by the workman before the Conciliation Officer was that the workman was appointed on 15.6.1993 on the post of casual typist and later on has been designated as Data Entry Operator. He was wrongly shown as workman engaged through contractor. He was discharging duties which were permanent in nature and his services have wrongly been terminated with effect from 3.6.1999. The petitioner IFFCO contested the claim and denied the master servant relationship between IFFCO and the workman. The stand was that the workman was engaged by M/s. H.S. Construction Company, a contractor of IFFCO licensed under the Contract Labour (Regulation and Abolition) Act, 1970 (In short “1970 Act”). As the workman was not an employee of IFFCO and hence no industrial disputes existed between them. In the written statement, the workman took the plea that he was working under direct control and supervision of IFFCO and his job was of permanent nature. He has completed 240 days in each calender year. His work was never supervised by the contractor. The contractor was only an agent of IFFCO and was a camouflage. There was no control over working of the employee by the contractor, only salary was being paid through contractor whereas the attendance of the workman was noted by the authorities of IFFCO. However, no appointment letter was given to the workman and by an oral termination his services have been dispensed with. The workman is entitled for reinstatement with full back wages from the date of termination. On 24.9.2002, an award was passed by the Labour Court wherein it was held that the workman was not an employee of IFFCO but was an employee of the contractor M/s. H.S. Construction and he was not entitled to any relief.

4. Challenging the said award, a Writ Petition No. 10173 of 2003 was filed which was allowed on 2.2.2005. The award was set aside and the matter was remanded back to the Labour Court for reconsideration after affording opportunity of hearing to the parties concerned. It was directed that the Labour Court while considering the matter afresh shall take into consideration the reason assigned in the judgment of this Court dated 4.5.1999 in Writ Petition No. 18684 of 1990 in respect of 88 workmen of IFFCO. After remand, an award dated 20.6.2007 was passed which was published on 14.12.2008. The present writ petition has been filed, challenging the said award.

5. Assailing the award, first submission of Sri Vivek Ratan, learned counsel for the petitioner is that the Labour Court did not take into consideration the judgment of this Court dated 4.5.1999 in Writ Petition 18684 of 1990 in respect of 88 workmen of IFFCO, in its true and spirit. The directions in the judgment and order dated 2.2.2005 in W













































































































































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