IN THE HIGH COURT OF MADHYA PRADESH
A.M. KHANWILKAR, CJ, SANJAY YADAV, J.
WESTERN COALFIELDS LTD. — Appellant
Vs.
SAMYUKT KOYLA MAZDOOR SANGH — Respondent
Writ Appeal No. 410 of 2012
Decided on : 20-11-2015
Contract Labour - Dispute over work allocation to private contractor - Contract Labour (Regulation and Abolition) Act, 1970, Section 10(1) - Industrial Disputes Act, 1947 - Notification No.S.O.2063 dated 21.6.1988 - The court analyzed the application of the Notification No.S.O.2063 dated 21.6.1988 under the Contract Labour (Regulation and Abolition) Act, 1970, and the Industrial Disputes Act, 1947, in the context of work allocation to a private contractor. The court emphasized the finding that the contract awarded by the appellant was for a period of more than one year, in respect of work covered by the prohibited category, and highlighted the legal obligation of the appellant to process the claim of the workmen employed by the private contractor and take appropriate decisions in accordance with the law.
Fact of the Case:
The respondent-Sangh questioned the contract awarded to M/s Singh & Sons for work at Bhawani incline of Ambara Colliery, Kanhan Area. The Assistant Labour Commissioner's report concluded that the work given to the private contractor was covered by the prohibited category. The respondent-Sangh filed a writ petition praying for various reliefs based on this report. The learned Single Judge directed the appellant to hold an inquiry to ascertain whether the workmen employed by the contractor were employed by the appellant and to take a decision in accordance with the law. The appellant appealed this decision.
Finding of the Court:
The court found that the appellant had failed to challenge the finding recorded in the inquiry report, which made it clear that the contract awarded by the appellant was for a period of more than one year, in respect of work covered by the prohibited category. The court held that the appellant was under a legal obligation to process the claim of the workmen employed by the private contractor and take appropriate decisions in accordance with the law. The court modified the direction given by the learned Single Judge, calling upon the appellant to inquire into that aspect and to take appropriate decision as per law.
Issues: Dispute over work allocation to private contractor, application of Notification No.S.O.2063 dated 21.6.1988, legal status of workmen employed by the contractor, and the obligation of the appellant to process the claim of the workmen employed by the private contractor.
Ratio Decidendi: The appellant's failure to challenge the finding recorded in the inquiry report, which made it clear that the contract awarded by the appellant was for a period of more than one year, in respect of work covered by the prohibited category, established the legal obligation of the appellant to process the claim of the workmen employed by the private contractor and take appropriate decisions in accordance with the law.
Final Decision: The court disposed of the appeal, emphasizing the legal obligation of the appellant to process the claim of the workmen employed by the private contractor and take appropriate decisions in accordance with the law.
A.M. Khanwilkar, CJ.
This intra-Court appeal takes exception to the decision of the learned Single Judge dated 3.1.2012 in W.P. No.2747/1998. It is apposite to reproduce the reliefs claimed in the said writ petition. The same read thus :
"(1) to direct the respondents No.1 & 2 to treat the employees as shown in Annexure R-6 as the employee of the respondents.
(2) to direct the respondents No.1 & 2 that after treating the workers employees of the respondent No.1 & 2 they be regularised and absorbed in the services of respondents.
(3) to direct the respondents No.1 & 2 that after the absorption workers and their regularisation be given all arrears and differences of salary and other consequential benefits as are given to the regular employee.
(4) Any other relief which this Hon'ble Court may deem just and proper may also be granted together with costs."
2. The respondent-Sangh had questioned the contract awarded to M/s Singh & Sons, who was the successful bidder for work of "Ripping of stone roof of the existing gallaries, drivage of haulage and travelling drifts and one number of inter connection between the haulage and travelling road" at Bhawani incline of Ambara Colliery, Kanhan Area.
3. The respondent-Sangh submitted a representation to the Chief Labour Commissioner regarding allocation of the said work to a private contractor for a period of one year. That representation was eventually rejected on 5.8.1996. Against that decision, the respondent-Sangh filed writ petition bearing W.P. No. 1056/1997, which, however, was disposed of vide order dated 11.11.1997 with direction to the Assistant Labour Commissioner (Central) to record finding as to whether the appellant has resorted to any unfair labour practice by giving labour contract to private contractor for six months initially, thereafter to be renewed for another period of six months.
4. The Assistant Labour Commissioner after due inquiry submitted his report dated 10.6.1998. The report concludes that the work given to the private contractor was covered by the prohibited category and could not have been given by the appellant Company in terms of notification dated 21.6.1988 bearing S.O. No.2063 issued by the Government of India, Ministry of Labour. That report of the Assistant Labour Commissioner has not been challenged by the appellant. It is the respondent, who, once again approached this Court by way of Writ Petition No.2747/1998 praying for the reliefs reproduced hitherto.
5. The learned Single Judge, after analysing these aspects opined that it was necessary to inquire into the fact as to whether the workmen whose names appear in Annexure-P/6 were employed by the contractor. The learned Single Judge by the impugned judgment, accordingly, directed the appellant to hold an inquiry to ascertain whether or not the workmen whose names appear in Annexure-P/6 were employed by the contractor and thereafter to take a decision in accordance with law. That inquiry was ordered to be conducted by the appellant expeditiously. The appellant, instead has questioned the correctness of the said decision by way of present intra-Court writ appeal.
6. The argument of the appellant, is that, the conclusion reached in the inquiry report to the effect that the appellant had admitted that the work allocated to the contractor was falling under the prohibited category is incorrect. Further, the finding recorded in the inquiry report travels beyond the scope of inquiry directed by this Court in the previous writ petition between the parties. It is then contended that the fact whether the workers employed by the contractor can be treated as workmen of the appellant Company and need to be absorbed as such is a matter, which can be adjudicated only before the Central Government Industrial Tribunal, being an industrial dispute. These are the broad contentions canvased before us.
7. The first contention deserves to be stated to be rejected having regard to the observations found in the order dated 11.
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