Delhi High Court

Burden of proving employer-employee relationship rests on the workman and cannot be shifted by rejecting management's defense.

M/S Indraprashta Gas Limited vs Abdul Hafeez Khan

Delhi High CourtJUDGMENT: July 08, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The respondent-workman, Sh. Abdul Hafeez Khan, alleged his services as a Technician at a CNG station were illegally terminated by the Petitioner (IGL) on 20.08.2002

Source reference: p. 1-2

IGL contested the claim, asserting no employer-employee relationship existed as the respondent was engaged through an independent contractor, M/s Mahajan Enterprises

Source reference: p. 2-4

The Labour Court, vide Award dated 19.02.2011, directed reinstatement with compensation, finding an employer-employee relationship established despite the workman failing to produce direct documentary evidence of employment

Source reference: p. 3, 9

IGL challenged this Award via a writ petition, arguing the burden of proof was erroneously shifted

Source reference: p. 3-4
02

Issues

1. Whether the reference was without jurisdiction on the ground that the Central Government, and not the State Government, was the "appropriate Government"

Source reference: p. 6, 11

2. Whether an employer-employee relationship existed between IGL and the respondent-workman

Source reference: p. 3, 11

3. Whether the respondent-workman had completed 240 days of continuous service to entitle him to protection under the Industrial Disputes Act, 1947

Source reference: p. 5, 21
03

Law Applied

The Court applied Section 2(a) of the Industrial Disputes Act regarding the "appropriate government" and Sections 25-B and 25-F regarding continuous service and conditions for retrenchment

Source reference: p. 10, 21

It relied on Workmen of Nilgiri Coop. Mkt. Society Ltd. v. State of Tamil Nadu, which establishes that the burden of proving an employer-employee relationship lies on the person asserting it

Source reference: p. 11

The Court followed Range Forest Officer v. S.T. Hadimani, mandating that the workman must produce cogent evidence to prove 240 days of continuous service

Source reference: p. 21

the indicia of employment (appointment power, wage payment, disciplinary control) as defined in Balwant Rai Saluja v. Air India Ltd.

Source reference: p. 5, 12
04

Reasoning

The Court found the Labour Court's reasoning flawed as it inverted the burden of proof. While the Labour Court rightly rejected IGL's contractor defense due to the post-dated operating agreement, it erroneously inferred direct employment merely from the failure of that defense and the respondent's physical presence at the CNG station

Source reference: p. 16, 18-19

The High Court noted that the workman admitted to having no appointment letter, pay slips, or PF records from IGL

Source reference: p. 14

Per Nilgiri Coop., the management's failure to produce records does not automatically prove the workman's case; the workman must first discharge the initial burden of proof

Source reference: p. 12-13

the Labour Court failed to independently evaluate the evidence for "240 days of service," instead treating it as a consequence of the employment finding, which violates the standards set in S.T. Hadimani

Source reference: p. 21-22
05

Holding

the respondent failed to establish a direct employer-employee relationship with IGL through cogent evidence

The High Court allowed the writ petition and set aside the Labour Court’s Award dated 19.02.2011

Source reference: p. 23
Delhi High Court

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M/S Indraprashta Gas LimitedvsAbdul Hafeez Khan

Delhi High Court · July 08, 2026

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