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2025 Supreme(Online)(Ker) 16624
IN THE HIGH COURT OF KERALA AT ERNAKULAM
N. NAGARESH, J
BINU S. – Appellant
Versus
UNION OF INDIA – Respondent
WP(C) 15896/2023
RAJESH MOHAN SINHA, N.SATHEESH, K.JANARDHANA SHENOY, PRIYA CAROL, PRATEEK MOHAN SINHA
The court upheld the validity of the exemption notification under the Contract Labour Act, allowing the Food Corporation of India to engage contract labour and transfer Direct Payment System workers.
Headnote:(A) Contract Labour (Regulation and Abolition) Act, 1970 - Section 31 - Exemption notification dated 06.07.2016 challenged - The court examined the legality of the exemption granted to the Food Corporation of India and the subsequent actions taken regarding contract labour and transfers of Direct Payment System workers. (Paras 1, 18, 22, 30)
(B) Employment Law - The court held that the engagement of contract labour in notified depots is prohibited, but exemptions can be granted under specific conditions. The court found no illegality in the e-tender notices published by the Food Corporation of India. (Paras 25, 30)
(C) Transfer of Workers - The court reaffirmed that transfer is an incident of service and upheld the authority of the Food Corporation of India to transfer workers as per service exigencies. (Paras 31, 32)
Facts of the case:
The petitioners, DPS workers at various Food Storage Depots, challenged the exemption notification allowing the Food Corporation of India to engage contract labour, arguing that their depots are notified under the Act, thus prohibiting such engagement.
Findings of Court:
The court found that the exemption notification was valid and that the actions of the Food Corporation of India in engaging contract labour and transferring DPS workers were justified.
Issues: The main issues included the legality of the exemption notification, the validity of e-tender notices for contract labour, and the appropriateness of transferring DPS workers.
Ratio Decidendi: The court ruled that the exemption notification was legally sustainable and that the Food Corporation of India acted within its rights in engaging contract labour and transferring workers.
Result: Writ petitions dismissed.
N. NAGARESH, J.
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W.P.(C) Nos. 16329 of 2021, 5891 and 6283 of 2022, 15896 and 16618 of 2023
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Dated this the 7th 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 1st 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 of 2022.
8. The petitioners state that the 3rd 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 No
