Gauhati High Court

Workmen must establish foundational facts of direct employment and perennial work nature to sustain industrial dispute claims.

Inland Water Ways Authority Of India (Assam Sector) Marine Workers Union vs Union Of India And 2 Ors.

Gauhati High CourtJUDGMENT: April 29, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The Petitioner Union, representing marine vessel crews, claimed its members were directly employed by the Inland Waterways Authority of India (IWAI) on a contingency basis for perennial work

Source reference: p. 2

They alleged that from 2007 onwards, while remaining under IWAI’s control, their wages were routed through a society and later through private contractors (M/s A C Roy and Co and M/s Chinar Shipping), which they characterized as a "paper arrangement" to deny service benefits

Source reference: p. 3, 8

Following failed conciliation, the matter was referred to the Central Government Industrial Tribunal (CGIT), Guwahati, in Ref. Case No. 02/2016

Source reference: p. 3

The CGIT passed an Award on 06.02.2018, holding that the workers were not direct employees of IWAI and were not entitled to relief

Source reference: p. 3

The Petitioner challenged this Award via the present writ petition.

Source reference: p. 3
02

Issues

1. Whether the CGIT exceeded its jurisdiction by going beyond the terms of reference regarding the nature of the workers' engagement

Source reference: p. 4, 7

2. Whether the management was justified in engaging marine vessel crews on a casual/contractual basis for 89-day spells for work alleged to be of a perennial nature

Source reference: p. 9

3. Whether the members of the Petitioner Union were direct employees of IWAI or employees of independent contractors

Source reference: p. 10
03

Law Applied

The Court applied the fundamental principle of the burden of proof in industrial disputes, holding that the party asserting a fact (the existence of an employer-employee relationship) must prove it through admissible evidence

Source reference: p. 11

It also considered the Contract Labour (Regulation and Abolition) Act (CLRA), noting that in the absence of a government notification prohibiting contract labour in a specific industry, engagement through contractors is not inherently illegal

Source reference: p. 11

The "lifting of the veil" doctrine was referenced as a tool to determine if a contract is a mere "sham" or "paper arrangement," provided foundational facts are first established by the claimants

Source reference: p. 5, 11
04

Reasoning

The Court scrutinized the evidence provided by the Union’s witness, Jiten Deka, which lacked any documentary proof (such as appointment letters or salary slips) to establish direct employment by IWAI

Source reference: p. 10

The Court reasoned that the "foundational facts"—that the work was perennial and the employment was direct—must be proven by the workmen before the onus shifts to the management

Source reference: p. 7, 11

Since the Union failed to show that dredging and vessel manning were perennial or that the contract system was a sham, the CGIT's refusal to lift the corporate veil was justified

Source reference: p. 11

The Court found that the CGIT acted within its jurisdiction because answering the reference naturally required determining the legal status of the workers' employment

Source reference: p. 7
05

Holding

It held that the management did not act in an unjustified manner as the workers failed to prove they were engaged in perennial work or were under the direct employment of IWAI

The High Court dismissed the writ petition, upholding the CGIT’s Award

Source reference: p. 12

The Court concluded that the Tribunal’s findings were not perverse and that the intermittent 89-day engagements occurred during transitional tender periods between contractors

Source reference: p. 12

No relief was granted

Source reference: p. 12
Gauhati High Court

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Inland Water Ways Authority Of India (Assam Sector) Marine Workers UnionvsUnion Of India And 2 Ors.

Gauhati High Court · April 29, 2026

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