JUDGMENT

Harjit Singh Bedi, J. —

1. This appeal after special leave arises out of the following facts :

2. The appellant, the Oil and Natural Gas Commission (hereinafter called the “ONGC”) is engaged in the exploration for oil and natural gas. In 1997, the ONGC started its drilling operations in the district of Cachar and for that purpose engaged a large number of staff in various fields, initially through contractors. These employees later formed the ONGC Contractual Workers Union (hereinafter called the “Union”) which is the contesting respondent in this matter. The Union raised a dispute demanding the regularization of the services of its members. This demand was resisted by the ONGC and on the failure of conciliation proceedings, the State Government made a reference to the Industrial Tribunal.

3. The parties before the Industrial Tribunal filed their pleadings and also recorded their evidence. The Tribunal in its award dated 11th July 1994, held that the members of the Union were indeed the employees of the ONGC and a direction was accordingly issued that their services be regularized in a phased manner with pay and other allowances, as permissible to regular employees. This award was challenged by the ONGC in the High Court on the ground that the members of the Union were employees of the contractors and not of the ONGC and as such there was no obligation on the part of the ONGC to regularize their services. The learned Single Judge accepted this submission and further observing that the Tribunal had exceeded its jurisdiction by deciding beyond the reference, allowed the writ petition. A Writ appeal was thereafter taken by the Union before the Division Bench of the High Court which, vide the impugned judgment dated 24th December 1999, reversed the findings of the learned Single Judge observing that the powers of the High Court while examining an award of a subordinate tribunal were not as if it were a Court of Appeal and that the learned Single Judge appeared to have fallen into a cardinal error in differing with the conclusions on facts drawn by the Industrial Tribunal. The Division Bench then noted that no workman or contractor had been examined to show the existence of any contract labour and that no clarification having been sought by the ONGC under section 10 of the Contract Labour (Regularisation & Abolition) Act 1970, the very basis for the employment of contract labour did not exist. The Division Bench also observed that there was no ambiguity with regard to the issues raised in the reference made by the State Government as the parties were fully aware as to its meaning and import. The writ appeal was accordingly allowed, the order of the learned Single Judge was set aside and the award of the Industrial Tribunal restored. The ONGC is before us in appeal.

4. At the very outset, Mr. Dushayant A. Dave, the learned senior counsel for the appellant has referred us to I.A. No.7/2007 to bring on record the present ground situation vis-‘-vis the ONGC and the members of the respondent Union, and has pointed out that till the year 1999, only one Oil Company, the ONGC, owned by the Government of India had the exclusive right to prospect for oil, but to accelerate exploration, it had been decided as from that year, to throw the field open to National Oil Companies or private companies, Indian or foreign, by way of an open bidding process, with the result that the ONGC was no longer holding a monopoly in this regard. It has been submitted that as a result of this liberalization, a large number of companies besides the ONGC were now engaged in the exploration for oil and that it was imperative in this situation and changed scenario for the ONGC to make an attempt to reduce its work force and it had done so by introducing a voluntary retirement scheme with effect from 1999, which had resulted in a reduction of more than 3500. It has been highlighted that at the time of the filing of this appeal, about 400 and odd workmen had