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2008 Supreme(SC) 509

2008(2) Supreme 760
Supreme Court of india
(From Bombay High Court)
Tarun Chatterjee & P. Sathasivam, JJ.
Hindalco Industries Ltd. — Petitioner
versus
Association of Engineering Workers — Respondent
Appeal (civil) 6410 of 2000
Decided on : 14-03-2008

important point
If the statutory canteen has been functioning since long, fixtures and furniture have been provided by the management, wages are reimbursed by management and the workmen enjoyed protection of continuous employment despite change of contractors, the workmen would be the workmen of the Management for all purposes.

Headnote:(a)Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 – Item 9 of Schedule IV – Workmen of a statutory canteen would be the workmen of the establishment for the purpose of the Factories Act only and not for all other purposes – However, if the canteen has been functioning since long, fixtures and furniture have been provided by the management, wages are reimbursed by management and the workmen enjoyed protection of continuous employment despite change of contractors, the workmen would be the workmen of the Management for all purposes. (Para 23)

       (1999) 6 SCC 439 – Relied upon.

       1995 Supp (1) SCC 175; (2001) 2 SCC 381; (2001) 3 SCC 101; (2003) 10 SCC 455; (2005) 12 SCC 433; 1995 Supp (2) SCC 611; 1990 Supp SCC 191; (1996) 3 SCC 267 – Distinguished impliedly.

       (b)Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 – Item 9 of Schedule IV – All the facilities to the canteen are provided by the company – The company lays down the quality, quantity, the rates and manner of supplying food articles – Though responsibility is cast upon the contractor to make payment of wages, P.F. contribution etc. on submission of the bills, the amounts are to be paid/reimbursed by the company – The activities of the workmen in the canteen, their suitability to work, physical fitness are ultimately controlled by the company – Industrial Court is perfectly right in arriving the conclusion that the evidence coupled with the terms of agreement show that the contract is nothing but paper agreement – The ultimate control and supervision over the canteen thus being that of the Company, the workmen are workmen of the company – No infirmity in the impugned judgments. (Paras 25 and 26)

       Facts of the case:

       1.The respondent herein namely, Association of Engineering Workers’ Union filed a complaint of unfair labour practice under Item 9 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 against Hindalco Industries Ltd. - appellant herein before the Industrial Court at Thane. 2.On the basis of the pleadings and oral and documentary evidence, the Industrial Court, by order dated 15.10.1998, allowed the complaint and declared that the Company has committed unfair labour practice under Item 9 of Schedule IV of the MRTU & PULP Act, 1971 and further directed the Company to absorb and make the canteen employees referred to in the Annexure as permanent employees of the Company from the date of its order. In addition to the same, the Industrial Court directed the Company to pay them the wages and other benefits like the last category of unskilled workmen in the Company.

       3.Aggrieved by the aforesaid order of the Industrial Court, the Company preferred Writ Petition No. 6181 of 1998 before the High Court of Bombay. The learned single Judge, by order dated 25.01.1999, confirmed the order of the Industrial Court and dismissed the writ petition. The LPA thereagainst was summarily dismissed.

       Findings of the Court :

       Although on paper the canteen workers are employees of contractor, in fact they are workmen of the company.

       Result : Appeal dismissed.

JUDGMENT

P. Sathasivam, J. —

1.Hindalco Industries Ltd., aggrieved by the judgment and order dated 20.01.2000 of the High Court of Bombay in L.P.A. No. 58 of 1999 confirming the order of the Industrial Court accepting the case of the Association of Engineering Workers’ Union, has filed the above appeal.

2.The respondent herein namely, Association of Engineering Workers’ Union (hereinafter referred to as “the Union”) filed a complaint of unfair labour practice under Item 9 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (hereinafter referred to as “the MRTU and PULP Act, 1971”) against Hindalco Industries Ltd. appellant herein (hereinafter referred to as “the Company”) before the Industrial Court at Thane. According to the Union, the complainant is a trade union recognized as a representative union of the appellant-company. The Company has engaged employees in unfair labour practices on and from 1971 on a continuous basis from month to month, therefore, the period of limitation is not applicable. However, as a measure of abundant precaution, the Union has filed a separate application for condonation of delay. The Company has engaged about 500 workmen in the manufacture of aluminium and aluminium products. The complainant-Union (respondent herein) is a recognized Union for the establishment of the appellant-Company. In terms of Section 46 of the Factories Act, 1948, the Company is duty bound to maintain a canteen for the benefits of workmen working in an establishment. Accordingly, the Company is maintaining a Canteen at its Kalwa establishment. In order to avoid giving the workmen working in the canteen, permanency and benefits which are applicable to permanent workmen of the Company, the Company is illegally treating the workmen working the canteen as contract workmen. It is the specific case of the complainant-Union that the contract is sham and is a mere arrangement made for the purpose of avoiding permanency and giving wages and benefits as are applicable to permanent workmen of the company.

3.On the date of filing of the complaint, out of 27 workmen who have worked for various periods, 23 workmen have worked for more than ten years continuously the maximum being for 25 years. The remaining four workmen have also worked for more than 3 = years and as such are permanent workmen of the Company. The Company has been making arrangement showing on papers that the contract is being given to someone or the other whereas in fact, the canteen is engaged and run by the Company itself. It is, therefore, the case of the Union that 27 workmen whose names are mentioned in the complaint are, in fact, the workmen of the Company. As per the various decisions of this Court, the workmen who are working in the statutory canteen are treated as workmen of the principal employer. On the same analogy, all the 27 workmen are workers of the Company.

4.The Company has engaged and is engaging in unfair labour practices by treating its own workmen as workmen on contract. The workmen are entitled for a declaration that they are the workmen of the Company. In order to comply with the technicalities that are required to be done, the Union is simultaneously making an application to the State Contract Labour Advisory Board to abolish the contract system as far as the canteen is concerned in the appellant-Company. The Union is also raising a demand that all the 27 workmen should be absorbed in the Company from the initial date of their employment in the Company and pay them wages and other benefits that are applicable to permanent workmen of the Company.

5.The Company filed the reply in the Industrial Court stating that the complaint is time barred since filed beyond the prescribed time limit laid down under the provisions of the MRTU & PULP Act, 1971, hence the same is to be dismissed in limine. Further the dispute under reference is pertaining to employees employed under the contract i.e., contra






























































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