Full Judgment Text
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PETITIONER:
JAMSHEDPUR CONTRACTORS’ WORKERS’ UNION
Vs.
RESPONDENT:
STATE OF BIHAR AND ORS.
DATE OF JUDGMENT22/08/1990
BENCH:
MISRA RANGNATH
BENCH:
MISRA RANGNATH
PUNCHHI, M.M.
RAMASWAMY, K.
CITATION:
1990 SCR (3) 977 1991 SCC Supl. (1) 158
JT 1990 (3) 650 1990 SCALE (2)402
ACT:
Industrial Disputes Act, 1947: S. 10/Contract Labour
(Regulation & Abolition) Act, 1970: S. 10--Contract workers
engaged by Tata Iron and Steel Company Ltd. in permanent and
regular nature of work--Whether entitled to permanent em-
ployment under the principal employer.
HEADNOTE:
The contract workers engaged by the management of the
Tata Iron and Steel Company Ltd., Jamshedpur in the perma-
nent and regular nature of work before February 11, 1981 in
(1) transportation of materials within the plant which was
not dependent on outside supply, (2) processes connected
with manufacturing process, (3) removal and handling of
waste products, and (4) sweeping and cleaning of machines
etc., sought permanent employment under the principal em-
ployer. The dispute was referred by the State Government
under s. 10 of the Industrial Disputes Act to the Industrial
Tribunal.
The Tribunal held that the workmen constituted the
contract labour and, therefore, the reference was not main-
tainable. It further held that action, if any, had to be
taken under s. 10 of the Contract Labour (Regulation and
Abolition) Act, 1970, power to take steps for which vested
in the State Government and not in the Tribunal. The writ
petition challenging the award was dismissed by the High
Court in limine.
In the appeal by special leave it was brought to the
notice of the Court on behalf of the management that con-
tract labour was now confined to item 3 only.
Disposing of the appeal, the Court ordered:
1. The reference to the Tribunal shall now read: "Wheth-
er the contract workers engaged by the management of the
Tata Iron and Steel Company Ltd., Jamshedpur in the perma-
nent and regular nature of work before 11.2.1981 are enti-
tled to permanent employment in
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regard to items 1, 2 and 4 under the principal employer".
[980B-C]
2. The State Government to take its own decision within
three months under the provisions of the Contract Labour
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(Regulation and Abolition) Act, 1970 in regard to item No. 3
as to whether the contract labour employment should be
terminated. [980D]
3. The Tribunal to dispose of the dispute within six months.
[980F]
JUDGMENT:
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 4380 of
1990.
From the Judgment and Order dated 4th October, 1985 of
the Patna High Court in C.W.J.C. No. 4065 of 1985.
R.K. Garg and A. Sharan for the Appellant.
K.K. Venugopal, P. Chidambaram, S. Sukumaran, K.K.
Lahiri, D. Partha Sarthy and S.N. Jha (N.P.) for the Re-
spondents.
The following Order of the Court was delivered:
Special leave granted.
We have heard Mr. Garg for the appellant, Mr. Chidamba-
ram for the Principal Employer and Mr. Venugopal for the
respondent Union.
A reference was made by the State Government of Bihar
under section 10 of the Industrial Disputes Act to the
Industrial Tribunal, Ranchi, on 9.7.81 referring to the
following disputes for adjudication:
(1) Whether the contract workers engaged by the management
of the Tata Iron and Steel Company Ltd., Jamshedpur in the
following permanent and regular nature of work before 11.2.
198 1 are entitled for permanent employment?
(2) Transportation of materials within the plant which is
not dependent on outside supply;
(3) All processes connected with the manufacturing process;
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(4) Removal and handling of waste product; and
(5) Sweeping and cleaning the machines, conveyors, shops and
offices.
The Tribunal by its Award dated 18.12.1984-, came to hold
that the workmen constituted the contract labour and, there-
fore, the reference was not maintainable. If further held
that action, if any, had to be taken only under section 10
of the Contract Labour (Regulation and Abolition) Act, 1970
and the power to take steps under that statutory provision
vested in the State Government and not in the Tribunal.
It may be pointed out that prior to the reference being
made to the Tribunal, the matter had been taken before the
Patna High Court and by judgment dated 4.9.1981 the writ
petition was disposed of holding that a reference had al-
ready been made to the Industrial Tribunal and the Award was
awaited and it was open to the State Government to take
steps under section 10(1) of the Contract Labour (Regulation
and Abolition) Act, 1970. The High Court in its ultimate
conclusion indicated:
"When the Award was finally made by the Industrial Tribunal,
to the State Government, as the learned Advocate General
assures us, shall determine the matter in accordance with
law. If after such an Award is made and no decision is taken
by the State Government within a reasonable time, the peti-
tioners shall be at liberty to move this Court again ....
"
The subsequent events have exposed the fallacy of the con-
clusion of the High Court. In fact if the provisions of the
Contract Labour (Regulation and Abolition) Act, 1970 had
been properly kept in view; no reliance could have been
placed on the fact that the Award was awaited.
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When the Award was made challenge was raised before the
High Court but it refused to entertain the writ petition.
The appeal by special leave is against the in limine dis-
missal of the writ petition.
We have heard learned counsel for the parties at some
length and it has been brought to our notice by Mr. Chidam-
baram that in regard to Items 1, 2 and 4 of the heads of
dispute as indicated in the reference, the contract labour
system is no more vogue and contract labour is now
980
confined to Item 3 only. In view of the changed situation
and taking into consideration the background of the dispute
as also the fact that the litigation has been pending for
almost a decade now, we do not think it would be appropriate
to take a technical view of the situation and endorse the
decision of the Tribunal. We are, therefore, inclined to
substitute the terms of the reference to the Tribunal by
indicating that the reference shall now read thus:
"Whether the contract workers engaged by the Management of
the Tata Iron and Steel Company Ltd., Jamshedpur in the
permanent and regular nature of work before 11.2. 198 1 are
entitled to permanent employment in regard to Items 1, 2 and
4 under the Principal Employer."
In regard to Item No. 3 it shall be for the State Gov-
ernment to take its own decision under the provisions of the
Contract Labour (Regulation and Abolition) Act, 1970 as to
whether the contract labour employment should be terminated,
and since the State Government had already been considering
this matter for some time, we direct the State Government to
take its decision in terms of the assurances held out by its
learned Advocate General to the Patna High Court several
years back within three months from now.
To regulate the matter in a more effective way before
the Tribunal and keeping in view the submissions made by Mr.
Venugopal we direct that ’the Tribunal shall initially
devote attention to identify the workmen who are desirous of
being permanently absorbed under the Principal Employer and
after such identification is made, the matter should be
proceeded with in accordance with law. All parties should be
given full opportunity to raise their contentions and sub-
stantiate the same with such evidence as they like to lead
but the Tribunal shall ensure that the dispute is disposed
of within six months from today. If necessary, full atten-
tion should be given to this case so as to comply with the
direction regarding disposal within the time limit set by
us. There would be no order for costs.
P.S.S. Appeal disposed of.
981