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Orissa High Court

Shri Sobhan Ku. Mishra vs The Management Of Sail And Others on 10 April, 2015

O R IS S A H IG H C O U R T , C U T T A C K .

W .P . (C ) N o s .1 7 5 4 3 , 1 7 5 4 4 , 1 7 5 4 5 , 1 7 5 4 6 , 1 7 5 4 7 & 1 7 5 4 8 o f 2 0 1 0 I n t h e m a t t e r o f a p p li c a t i o n s u n d e r A r t i c l e s 2 2 6 a n d 2 2 7 o f t h e C o n s t it u t i o n o f I n d i a .

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I n W . P . (C ) N o . 1 7 5 4 3 o f 2 0 1 0


S h r i S o b h a n K u . M is h r a                                                                          ...             P e titio n e r

                                                                    V e rs u s

T h e M a n a g e m e n t o f S A IL a n d o th e r s                                                         ...             O p p . P a r tie s


I n W . P . (C ) N o . 1 7 5 4 4 o f 2 0 1 0


S h r i B a ilo c h a n M a h a k u d                                                                         ...             P e titio n e r

                                                                    V e rs u s

T h e M a n a g e m e n t o f S A IL a n d o th e r s                                                         ...             O p p . P a r tie s


I n W . P . (C ) N o . 1 7 5 4 5 o f 2 0 1 0


S h r i D ill ip K u m a r M o h a n ty                                                                       ...             P e titio n e r

                                                                    V e rs u s

T h e M a n a g e m e n t o f S A IL a n d o th e r s                                                         ...             O p p . P a r tie s


I n W . P . (C ) N o . 1 7 5 4 6 o f 2 0 1 0


S r i B ip in B ih a r i C h h a tr ia                                                                        ...             P e titio n e r

                                                                    V e rs u s

T h e M a n a g e m e n t o f S A IL a n d o th e r s                                                         ...             O p p . P a r tie s


I n W . P . (C ) N o . 1 7 5 4 7 o f 2 0 1 0


S h r i P r a h a lla d T a n d i                                                                             ...             P e titio n e r

                                                                    V e rs u s

T h e M a n a g e m e n t o f S A IL a n d o th e r s                                                         ...             O p p . P a r tie s
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                I n W . P . (C ) N o . 1 7 5 4 8 o f 2 0 1 0


                S h r i A b h im a n y u B a g                                                                                                 ...               P e titio n e r

                                                                                               V e rs u s

                T h e M a n a g e m e n t o f S A IL a n d o th e r s                                                                          ...               O p p . P a r tie s .



                                               F o r P e titio n e rs             :            M / s . M s . K ira n R o u t , S h a rm is t h a N a y a k ,
                                                                                               J it e n d ra T iw a ri a n d S u la g n a R o u t ra y .
                                                                                               (in a ll t h e c a s e s )


                                               F o r O p p . P a rt ie s          :            M / s . G o u t a m M is h ra , D . K . P a t ra ,
                                                                                               K .K . J e n a a n d          L M is h ra .
                                                                                               [In W .P . ( C ) N o s .1 7 5 4 3 , 1 7 5 4 4 & 1 7 5 4 5 o f 2 0 1 0 ]


                                                                                               M / s . D . P . N a n d a , R . K . K a n u n g o , M rs . S . D a s ,
                                                                                               B . P . P a n d a , K .K . J e n a a n d L . M i s h r a .
                                                                                               [In W .P . ( C ) N o s .1 7 5 4 6 , 1 7 5 4 7 & 1 7 5 4 8 o f 2 0 1 0 ]

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                P R E S E N T :

                                                   T H E H O N O U R A B L E M R . J U S T IC E                                         C .R . D A S H

--- -- -- -- --- -- -- -- -- -- --- -- -- -- -- --- -- -- -- -- --- -- -- -- -- --- -- -- -- -- -- --- -- -- -- -- --- -- -- -- -- --- -- -- -- -- -- --- -- -- -- -- --- -- -- -- --

D a te o f J u d g m e n t : 1 0 .0 4 .2 0 1 5

--- -- -- -- --- -- -- -- -- -- --- -- -- -- -- --- -- -- -- -- --- -- -- -- -- --- -- -- -- -- -- --- -- -- -- -- --- -- -- -- -- --- -- -- -- -- -- --- -- -- -- -- --- -- -- -- -- C .R . D a s h , J . A s a ll th e s ix w r it p e titio n s a r is e o u t o f th e c o m m o n a w a r d p a s s e d b y th e le a r n e d P r e s id in g O ffic e r , L a b o u r C o u r t, S a m b a lp u r in I.D . C a s e N o .1 8 o f 2000 and co m m on R e fe re n c e d a te d 0 6 .0 3 .2 0 0 0 m ade by th e a p p r o p r ia te G o v e r n m e n t, th e y a r e ta k e n u p to g e th e r fo r d is p o s a l b y th is c o m m o n o r d e r .

2. The p e t i t i o n e rs , n a m e ly , S obhan Kum ar M is h r a , B a ilo c h a n M a h a k u d , D illip K u m a r M o h a n ty , B ip in B ih a r i C h h a tr ia , P r a h a lla d T andi and A b h im a n y u B a g h a v e p r e fe r r e d th e a fo r e s a id w r it p e titio n s b e a r in g N o .1 7 5 4 3 o f 2010, 17544 of 2010, 17545 of 2010, 17546 of 2010, 17547 of 2010 and 17548 o f 2 0 1 0 r e s p e c tiv e ly . A ll o f th e m w e r e e m p lo y e e s o f M /s . M is h r a E n te r p r is e s . M /s . M is h r a E n te r p r is e s w as a C o n tra c to r engaged by th e C e n tra l P o w e r 3 T r a i n i n g I n s t i t u t e ( " C . P . T . I . " f o r s h o r t ) , a U n i t o f R o u r k e la S t e e l P l a n t ( " R . S . P . " f o r s h o r t) s itu a te d a t R o u r k e la .

O n 1 5 . 0 7 .1 9 9 3 C .P .T .I. w a s opened and on 2 1 .0 7 .1 9 9 3 M /s . M is h r a E n te r p r is e s w a s e n g a g e d a s a C o n tr a c to r . S a id M /s . M is h r a E n te r p r is e s e n g a g e d e i g h t l a b o u r e r s i n c l u d i n g t h e p r e s e n t p e t i t i o n e r s ( s ix i n n u m b e r ) i n o r d e r to c le a n to i l e t s , la tr in e s , b a th -ro o m s , o v e r-h e a d ta n k , t a b le s , c h a ir s , o th e r fu r n itu r e , p e r ip h e r a l a r e a s o f th e in s titu te b e s id e s a tte n d in g to o th e r jo b s o f th e s a id In s titu te . T h o u g h th e p e titio n e r s w e r e la b o u r e r s e n g a g e d b y M /s . M is h r a E n te r p r is e s , th e y w e re w o r k in g under th e d ir e c t c o n tr o l a n d s u p e r v is io n of o p p o s ite p a r ty n o .1 . A u c tio n fo r th e c o n tr a c t w a s o n y e a r ly b a s is , a n d M /s . M is h r a E n te r p r is e s c o n tin u e d o n y e a r to y e a r b a s is till 2 4 .1 0 .1 9 9 7 to w o r k fo r th e C .P .T .I. th ro u g h c o n tra c t. M /s . M is h r a E n te r p r is e s w a s a s k e d v id e L e tte r d a te d 1 2 .1 0 .1 9 9 5 to p r o v id e a ll th e fa c ilitie s to its la b o u r e r s , a s p r o v id e d b y th e S te e l A u th o r ity o f In d ia L im ite d ( „S A IL ‟ fo r s h o r t) . O n 2 2 .1 0 .1 9 9 7 th e la b o u r c o n tr a c t w a s g iv e n to a n o th e r C o n tr a c to r n a m e ly M /s . S .K . A c h a r y a , b u t s u b s e q u e n tly h is c o n tr a c t w a s c a n c e lle d a n d th e p e titio n e r s , in v ie w o f c h a n g e o f C o n t r a c to r , fa c e d re tre n c h m e n t. In d u s tr ia l d is p u te w a s r a is e d b y th e p e titio n e r s th r o u g h R o u r k e la S h r a m ik a S a n g h a ( a L a b o u r U n io n a c tiv e in R o u r k e la S te e l P la n t) .

3. The a p p r o p r ia te G o v e rn m e n t under S e c tio n 10 (1 ) re a d w ith S e c tio n 1 2 ( 5 ) o f th e I.D . A c t, v id e its M e m o N o .3 3 2 1 ( 7 ) , d a te d 0 6 .0 3 .2 0 0 0 , m a d e th e f o l l o w i n g R e f e r e n c e f o r a d j u d ic a t i o n b y th e P r e s i d i n g O f f i c e r , L a b o u r C o u r t, S a m b a lp u r .

" W h e th e r th e a c tio n o f th e M a n a g e m e n t o f M /s . M is h r a E n te r p r is e s and M /s . Jai M aa S a n to s h i E n te r p r is e s te r m in a tin g th e s e r v ic e s o f S r i B .B . C h a tr iy a , A . B a g , P .K . R o u t, B . M o h a n ty , S . M is h r a , P .K . T a n d i, C . S u n a and B . M a h a k u d ( w o r k e r s o f M /s . M is h r a E n te r p r is e s ) a n d S ri D .R . S e n a n d S ri S . S a m a l (w o rk e rs o f J a i M a a 4 S a n to s h i E n te r p r is e s ) is le g a l a n d ju s tifie d . If n o t, w h a t r e lie f th e y a r e e n title d to a n d w h e th e r th e y c a n b e r e g u la r e m p lo y e e s o f C e n tr a l P o w e r T r a in in g In s titu te ? "

B a s in g upon th e p le a d in g s o f th e p a r t ie s , le a r n e d L a b o u r C o u r t, S a m b a lp u r fr a m e d th e fo llo w in g is s u e s fo r a d ju d ic a tio n : -

(1 ) W h e th e r th e a c tio n o f th e M a n a g e m e n t o f M /s . M is h r a E n te r p r is e s a n d M /s . J a i M a a S a n to s h i E n te r p r is e s te r m in a tin g th e s e r v ic e s o f S r i B .B . C h a tr iy a , A . B a g , P .K . R o u t, B . M o h a n ty , S . M is h r a , P .K . T a n d i, C . S una and B. M ahakud ( w o rk e r s of M /s . M is h r a E n te r p r is e s a n d S r i D .R . S e n a n d S r i S . S a m a l ( w o r k e r s o f J a i M a a S a n to s h i E n te r p r is e s ) is le g a l a n d ju s tifie d ? (2 ) T o w h a t r e lie f th e y a r e e n title d to a n d w h e th e r th e y c a n b e r e g u la r e m p lo y e e s o f C e n tr a l P o w e r T r a in in g In s titu te ?

4. O n 3 0 .0 9 .2 0 0 0 le a r n e d L a b o u r C o u r t p a s s e d a n a w a r d d e c la r in g th a t th e te r m in a tio n o f s e r v ic e s o f th e c o n c e r n e d w o r k m e n b y th e M a n a g e m e n t o f M / s . M i s h r a E n t e r p r i s e s i s i l l e g a l a n d u n ju s t i f i e d a n d t h e r e w a s v i o l a t i o n o f t h e p r o v is io n s c o n ta in e d in S e c tio n 2 5 - F o f th e I.D . A c t, a n d d ir e c te d to p a y th e u n p a id w a g e s a n d a l l o t h e r l e g a l d u e s o f t h e w o r k m e n a l o n g w i t h a c o n s o l i d a t e d s u m o f R s .5 ,0 0 0 / - ( fiv e th o u s a n d ) to e a c h o f th e w o r k m e n to w a r d s in te r e s t a n d litig a tio n e x p e n s e s . B e in g a g g r ie v e d w ith th e o r d e r , th e c o n c e r n e d e m p lo y e r , i.e . M /s . M is h r a E n te r p r is e s p re fe rre d a w r it p e titio n b e a r in g number W .P . (C ) N o .6 2 7 5 o f 2 0 0 2 a n d s im u lta n e o u s ly th e c o n c e r n e d w o r k m e n a ls o file d a w r it p e titio n b e a r in g n u m b e r W .P . ( C ) N o .4 1 6 3 o f 2 0 0 3 . B o th th e w r it p e titio n s w e r e h e a r d a n a lo g o u s l y a n d t h e m a t t e r w a s r e m i t t e d b a c k t o t h e P . O . , L a b o u r C o u r t , S a m b a lp u r f o r d i s p o s a l a f r e s h , a f t e r p r o v i d i n g o p p o r t u n i t i e s o f h e a r i n g t o t h e p a r tie s .

5

5. U pon re m a n d , th e p e titio n e r s file d a c o n s o lid a te d s ta t e m e n t o f c la im . In th e ir c o n s o lid a te d s ta te m e n t o f c la im t h e w o r k m e n b a s ic a l l y a l l e g e d th a t -

( i) O n 1 5 .0 7 .1 9 9 3 C .P .T .I. w a s o p e n a n d o n 2 1 .0 7 .1 9 9 3 M /s . M is h r a E n te r p r is e s w a s e n g a g e d a s a C o n tr a c to r .

( ii) M /s . M is h r a E n te r p r is e s , in tu rn , engaged e ig h t la b o u r e r s fo r c le a n in g to ile ts , la tr in e s , b a th -ro o m s , o v e r-h e a d ta n k , ta b le s , c h a ir s , o th e r fu r n itu r e , p e r ip h e r a l a r e a s o f th e in s t i t u t e b e s id e s a tte n d in g to o th e r jo b s o f th e s a id In s titu te .

( iii) T h o u g h th e p e titio n e r s w e r e e n g a g e d b y M /s . M is h r a E n te r p r is e s , th e y w e r e w o r k in g u n d e r th e d ir e c t c o n tr o l a n d s u p e r v is io n o f th e C .P .T .I. (o p p . p a rty n o .1 ).

( iv ) A fte r th e ir te r m in a tio n , d iffe r e n t L a b o u r C o n tr a c to r s w e r e e n g a g e d fr o m tim e to tim e .

(v ) T h e jo b s c a r r ie d o u t b y th e s e c o n d p a r ty w o r k m e n w e r e p e r m a n e n t a n d p e r e n n ia l in n a tu r e .

( v i) T h e c o n tr a c t b e tw e e n C .P .T .I. a n d M /s . M is h r a E n te r p r is e s w a s a s h a m c o n tra c t.

( v ii) N o c h a r g e - s h e e t o r n o n o tic e p a y w a s p r o v id e d p r io r to te r m in a tio n o f s e r v ic e s o f th e p e titio n e r s . A s s u c h , th e te r m in a tio n is ille g a l.

6. T h e b a s ic fa c ts , o n w h ic h th e p e titio n e r s r e lie d o n , a r e th a t th o u g h a d m itte d ly th e y w e r e e n g a g e d b y M /s . M is h r a E n te r p r is e s , th e y w e r e w o r k in g u n d e r t h e d i r e c t c o n t r o l a n d s u p e rv i s i o n o f t h e C . P . T . I . T h e c o n tra c t b e tw e e n M /s . M is h r a E n te r p r is e s a n d th e C .P .T .I. is a s h a m c o n tr a c t a n d th e w o r k in w h ic h th e y w e r e e n g a g e d b e in g p e r e n n ia l a n d p e r m a n e n t in n a tu r e , th e y s h o u ld b e r e g u la r iz e d in th e ir s e r v ic e s b y th e C .P .T .I. 6

7. M /s . M is h r a E n te r p r is e s e n te re d a p p e a ra n c e a n d to o k th e p le a th a t a fte r e x p ir y o f th e c o n tra c t o n 2 4 . 1 0 .1 9 9 7 th e re w as no scope fo r th e C o m p a n y to e n g a g e th e s e c o n d p a r ty w o r k m e n in th e C .P .T .I. H e h o w e v e r s e n t n o tic e s to a ll h is la b o u r e r s in c lu d in g th e p e titio n e r s to r e c e iv e th e ir fin a l s e ttle m e n t d u e s , b u t th e w o r k m e n d id n o t tu r n u p a n d th e ir d u e s , in s p ite o f in te n d m e n t b y th e c o n tr a c to r , i.e . M /s . M is h r a E n te r p r is e s , c o u ld n o t b e p a id .

T h e C .P .T .I. in its w r i tte n s ta te m e n t to o k th e p le a th a t th e r e d o e s n o t e x is t a n y m a s te r - s e r v a n t r e la tio n s h ip b e tw e e n th e C .P .T .I. a n d th e s e c o n d p a r ty w o r k m e n , fo r w h ic h th e R e fe r e n c e is n o t m a in ta in a b le . T h e C .P .T .I. b e in g n o t th e e m p lo y e r , n a m e o f th e C .P .T .I. b e s tr u c k o ff fr o m th e p r o c e e d in g . The s e c o n d p a r ty w o r k m e n o r th e U n io n r e p r e s e n tin g th e m a r e n o t e n titl e d to r a is e t h e d i s p u t e i n q u e s t i o n . T h e b a s ic f a c t s w h i c h h a v e b e e n p l e a d e d b y t h e C . P . T . I . (M a n a g e m e n t) a re th a t -

(1 ) M / s . M i s h r a E n t e r p r i s e s w a s e n g a g e d o n y e a r t o y e a r b a s is a s a C o n t r a c t o r t o e n g a g e l a b o u r e r s f o r th e w o r k a s s ig n e d to it .

(2 ) T h e C .P .T .I. h a d n o r o le to p la y s o fa r a s s e le c tio n o f th e w o r k m e n is c o n c e r n e d , a n d th e C .P .T .I. a t n o p o in t o f tim e had been s u p e r v is in g th e w o rk of th e se co n d p a rty w o rk m e n .

(3 ) T h e C o n tr a c to r u s e d to m a k e p a y m e n t to th e la b o u r e r s , w h o w e r e e n g a g e d b y h im , fo r e x e c u tio n o f th e jo b .

(4 ) The c o n tra c t b e tw e e n M /s . M is h r a E n te r p r is e s and th e C .P .T .I. is a g e n u in e c o n tr a c t, w h ic h h a s c o m e to a n e n d b y e fflu x o f tim e .

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(5 ) The C .P .T .I. o r S A IL o r R .S .P . h a s n e v e r e x e r c is e d any c o n tr o l o v e r th e a ffa ir s o f M /s . M is h r a E n te r p r is e s , a L a b o u r C o n tra c to r.

(6 ) The C .P .T .I., S A IL & R . S . P . b e in g C e n tr a l P u b lic S e c to r U n d e r t a k in g s , have th e ir ow n r u le s and r e g u la tio n s fo r r e c r u itm e n t , w ith o u t fo llo w in g w h ic h a b s o r p tio n is not p e r m is s ib le .

(7 ) F o r e m p lo y m e n t in th e R o u r k e la S te e l P la n t, o n e has to p a ss a q u a lify in g te s t a s w e l l a s in te r v ie w te s t s u b je c t to v a ca n cy .

8. O n b e h a l f o f t h e s e c o n d p a r t y w o r k m e n , B ip i n B i h a r i C h h a t r i y a , o n e o f th e w o r k m e n w a s e x a m in e d a s W .W .1 a n d h e file d d o c u m e n ts w h ic h a r e m a rk e d as E x h ib its A to M . O n b e h a lf o f C .P .T .I . th r e e w itn e s s e s w e re e x a m in e d . M .W .1 is th e S e n io r D e p u ty D ir e c to r , C .P .T .I., R o u r k e la , M .W .2 is th e D e p u ty G e n e r a l M a n a g e r , C .P .T .I. , R o u r k e la , M .W .3 is th e A .G .M . , C .P .T . I., R o u r k e la .

T h e C .P .T .I. a ls o r e lie d o n s o m e d o c u m e n ts , w h ic h a r e m a r k e d a s E x h ib its 1 to 8 . O n e S u b o d h K u m a r M is h r a w a s e x a m in e d a s M .W .1 o n b e h a lf o f M / s . M i s h r a E n t e r p r i s e s a n d d o c u m e n t s v id e E x h i b i t - I t o E x h i b i t X I V w e r e m a r k e d o n th e ir b e h a lf.

9. O n c o n s id e r a t i o n o f t h e e v i d e n c e o n r e c o r d a n d t h e p l e a d in g s o f th e p a r tie s , le a r n e d P r e s id i n g O ffic e r , L a b o u r C o u r t, S a m b a lp u r p a s s e d th e a w a r d h o l d i n g th a t t h e a c t i o n o f t h e M a n a g e m e n t o f M / s . M i s h r a E n t e r p r i s e s a n d M /s . J a i M a a S a n to s h i E n te r p r is e s in te r m in a tin g th e s e r v ic e s o f th e w o r k m e n in c lu d in g th e p r e s e n t p e titio n e r s is le g a l a n d ju s tifie d . T h e y a re n o t r e g u la r 8 e m p lo y e e s o f th e C .P .T .I. B u t a l l t h e a b o v e w o rk m e n a r e e n t i t l e d t o g e t t h e i r s e ttle m e n t d u e s fr o m th e C o n tr a c to r M /s . M is h r a E n te r p r is e s to w a r d s th e ir w o r k .

10. L e a rn e d c o u n s e l fo r th e p e titio n e r s im p u g n s th e a w a rd on th e g r o u n d t h a t t h e l e a r n e d P . O . , L a b o u r C o u r t h a s n o t t a k e n i n t o c o n s id e r a t i o n t h e fa c t th a t a ll th e p e titio n e r s w e r e w o r k in g u n d e r th e d ir e c t c o n tr o l o f th e C .P .T .I. a n d h e n c e th e y a r e th e e m p lo y e e s o f th e C .P .T .I. a n d th e c o n tr a c t b e tw e e n M /s . M is h r a E n te r p r is e s and th e C .P .T .I. is a sham c o n tra c t, as M /s . M is h r a E n t e r p r i s e s is o n ly a n a m e - l e n d e r t o s u p p l y l a b o u r f o r c e t o t h e C . P . T . I . It is fu r th e r s u b m itte d b y le a r n e d c o u n s e l fo r th e p e titio n e r s th a t th e n a tu r e o f w o r k p e r fo r m e d b y th e p e tit io n e r s b e in g p e r m a n e n t a n d p e r e n n ia l in n a tu r e , it w a s i n c u m b e n t o n t h e M a n a g e m e n t o f t h e C . P . T . I . t o r e g u la r i z e t h e s e r v i c e s o f t h e p e titio n e r s .

L e a rn e d counsel fo r th e p e titio n e r s r e lie d on th e cases of D a y a n id h i S a h u v r s . T h e P r e s id in g O ffic e r , L a b o u r C o u r t, S a m b a lp u r a n d o th e r s , 2 0 1 3 (II) O L R - 2 3 5 , T h e M a n a g e m e n t o f P r a ja ta n tr a P r a c h a r S a m ity v r s . C u tta c k P r e s s W o r k e r s U n io n , C u tta c k a n d a n o th e r , 2 0 1 2 (II) O L R - 7 1 2 , M d . M o in u d d in v r s . P r e s id in g O ffic e r , L a b o u r C o u r t, B h u b a n e s w a r a n d a n o th e r, 2 0 1 3 (I) O L R - 4 2 7 , S ta te o f H a ry a n a a n d o th e rs , e tc . e tc . v rs . P ia r a S in g h a n d o th e r s e tc . e tc ., A IR 1 9 9 2 S C 2 1 3 0 , D e v in d e r S in g h v r s . M u n ic ip a l C o u n c il, S a n a u r , A IR 2 0 1 1 S C 2 5 3 2 , a n d D e s R a j e tc . v r s . S ta te o f P u n ja b a n d o th e r s , A IR 1 9 8 8 S C 1 1 8 2 .

11. L e a r n e d c o u n s e l fo r th e C .P .T .I . o n th e o th e r h a n d s u b m its th a t th e r e b e in g n o e r r o r a p p a r e n t o n th e fa c e o f th e r e c o r d o r p a te n t ille g a lity in th e i m p u g n e d a w a r d , n o in t e r f e r e n c e i s c a l l e d f o r i n a c e r t i o r a r i p r o c e e d i n g . T he p e titio n e r s w h ile p r e fe r r in g th e w r it p e titio n s h a v e n o t s p e c ific a lly a s s e r te d a s to w h a t a r e th e s p e c ific g r o u n d s to in v o k e th e w r it ju r is d ic tio n o f th e C o u r t. L e a r n e d 9 c o u n s e l fo r th e p e titio n e r s by h a r p in g o n th e p o in t th a t th e p e titio n e r s w e re w o r k i n g u n d e r t h e d i r e c t s u p e r v i s io n o f t h e C .P .T .I. a n d th e w o rk th e y w e re d i s c h a r g i n g a r e p e r m a n e n t a n d p e r e n n ia l i n n a t u r e , h a v e t r a v e l l e d b e y o n d t h e i r c l a i m a n d te r m o f r e f e r e n c e b y i n v o k i n g t h e s t a t u t o r y p r o v i s i o n s u n d e r C o n t r a c t L a b o u r ( R e g u la tio n a n d A b o litio n ) A c t, 1 9 7 0 ("C .L .R .A . A c t" f o r s h o rt). It is fu r th e r s u b m itte d th a t th e a d ju d ic a tin g a u th o r ity has no ju r is d ic tio n to d e c id e w h e th e r th e jo b s c a r r ie d o u t b y th e p e titio n e r s a r e p e r m a n e n t a n d p e r e n n ia l in n a tu r e u n d e r th e p r o v is io n s o f S e c tio n 1 0 o f th e C .L .R .A . A c t, e s p e c ia lly in v i e w o f th e fa c t th a t s u c h a d e c is io n r e s ts o n th e a p p r o p r ia te G o v e r n m e n t.

12. A s o u tlin e d s u p r a , le a r n e d L a b o u r C o u r t h a s fr a m e d tw o Is s u e s . U n d e r I s s u e N o . i , t h e l e a r n e d L a b o u r C o u r t h a s h e ld t h u s : -

" ... ..T h e F ir s t - P a r ty m a n a g e m e n t h a s a b s o lu te ly n o r o le to p la y a n y s e le c tio n o r a p p o in tm e n t o f th o s e s e c o n d - p a r t y w o r k m e n . M / s . S . K . A c h a r y a , w h o b e c a m e t h e lo w e s t b id d e r in th e te n d e r, th e s a id c o n tra c to r b e in g an in d e p e n d e n t c o n tr a c to r h a s n o t e x e c u te d th e w o rk . So, th e r e w a s n o s c o p e fo r e n g a g in g a n y w o r k m a n . It is a n a d m itte d fa c t th a t th e s e c o n d - p a r ty w o r k m e n w e r e e n g a g e d b y th e C o n tr a c to r M /s . M is h r a E n te r p r is e s a n d te r m in a te d a fte r c lo s u r e of th e c o n tra c t w o rk w ith e ffe c t fro m 2 4 .1 0 .1 9 9 7 . So, th e e v id e n c e le d by th e M .W s .
c o r r o b o r a te d a lo n g w ith t h e ir d o c u m e n ts . T h e C o n tra c to r M /s . M is h r a E n te r p r is e s ta te d in h is e v id e n c e , w h i c h is c o r r o b o r a te d th e d o c u m e n ta r y e v id e n c e d is c lo s e d th a t th e C o n tra c to r h a s is s u e d n o tic e to its la b o u r e r s one m o n th p r io r to e x p ir y o f e a ch o f its c o n tr a c t in tim a tin g th e m to r e c e i v e th e i r f i n a l s e t t l e m e n t d u e s a s p e r t h e n o t i c e d a t e d 1 9 .0 9 .1 9 9 5 and 1 7 .0 9 .1 9 9 6 (E x t.X IV ) and N o tic e D td .2 4 .0 9 .1 9 9 7 and D td .0 6 .1 1 .1 9 9 7 (E x t.7 ) and c o p ie s s e r v e d o n th e C .P .T .I. E x t.X II a n d E x t.X III d is c lo s e th a t th e c o n tr a c to r M /s . M is h r a E n te r p r is e h a s b r o u g h t th is m a tte r to 10 th e n o tic e o f th e D e p u ty L a b o u r C o m m is s io n e r , R o u r k e la fro m tim e to tim e a lo n g w ith s ta te m e n t o f fin a l s e ttle m e n t dues lik e L ea ve W ages, U n p a id W ages, B onus, R e tr e n c h m e n t C o m p e n s a tio n , e tc . o ffe r e d b y h im , b u t th e S e c o n d -p a rty w o rk m e n d id n o t tu rn up to r e c e iv e th e s e p a y m e n ts , w h ic h is a ls o c le a r fr o m th e e v id e n c e o f o th e r w itn e s s e s . H o w e v e r, a s th e s e c o n d -p a rty w o rk m e n w e re n o t e n g a g e d / a p p o i n te d b y t h e C . P . T . I . , t h e y c a n n o t c l a i m th e ir p e r m a n e n t jo b u n d e r th e C .P .T .I. S o , in v ie w o f th e s a id fa c ts a n d c ir c u m s ta n c e s , th e C .P .T .I. is n o t r e s p o n s ib le fo r th e jo b o f th e s e c o n d - p a r ty w o r k m e n n o r th e C .P .T .I. is t h e A p p o in t i n g A u t h o r i t y o f t h e s e c o n d - p a r t y w o r k m e n . S o , th e s e c o n d - p a r ty w o r k m e n b e in g e n g a g e d b y th e c o n tr a c to r M /s . M is h r a E n te r p r is e w e r e w o r k in g u n d e r th e fu ll c o n tr o l o f M /s . M is h r a E n te r p r is e a n d th e y w e r e a ls o te r m in a te d fro m th e ir jo b o n c lo s u r e o f its c o n tr a c t w ith C .P .T .I. w ith e ffe c t fro m 2 4 .1 0 .1 9 9 7 . S o , th e a c tio n o f th e m a n a g e m e n t of M /s . M is h r a E n te rp ris e and M /s . Jai M aa S a n to s h i E n t e r p r i s e i n te r m i n a t i n g t h e s e r v i c e s o f t h e s e c o n d - p a r t y w o r k m e n ( W o rk e r s o f M / s . M i s h r a E n t e r p r i s e ) i s l e g a l a n d ju s tifie d ."

C o m in g to th e s e c o n d Is s u e , i.e . Is s u e N o .ii, le a r n e d L a b o u r C o u r t, in p a r a g r a p h - 1 6 h a s d i s c u s s e d i n d e t a i l t h e e v i d e n c e o n r e c o r d a n d h a s h e ld t h u s -

" It is a lle g e d fro m th e e v id e n c e o f th e C o n tra c to r M /s . M is h r a E n te r p r is e th a t h e h a s p r o v id e d e m p lo y m e n t c a rd s E x t.J to E x t.J /3 to ea ch o f th e la b o u r e r s and was m a in ta in in g th e ir A tte n d a n c e R e g is te r th ro u g h h is S u p e r v is o r S r i S a h u a n d u s e d t o g e t t h e s a m e c e r t i f i e d b y th e o ffic e r s o f th e C .P .T .I. fo r th e p u r p o s e o f b illin g . S o , th e c la im o f th e s e c o n d -p a rty w o rk m e n th a t th e o ffic ia ls of C .P .T .I. w e r e lo o k in g a fte r th e ir jo b w o r k b y p u ttin g th e ir s ig n a tu r e s in th e A tte n d a n c e R e g is te r and A tte n d a n c e C a r d s a p p e a r s to b e fa ls e . It is fu r th e r a lle g e d fr o m th e 11 e v id e n c e o f th e C o n tr a c to r M /s . M is h r a E n te r p r is e th a t h e u s e d to d is b u r s e w a g e s to a ll h is la b o u r e r s in p r e s e n c e o f C .P .T .I. a u th o r ity . E .S .I. N o . a n d E .P .F . s u b -c o d e N o .R O - 585 and E .P .F . c o n tr ib u tio n s in re s p e c t o f e a c h o f th e e m p lo y e e s engaged by h im w e re b e in g d e p o s ite d w ith E .S .I. a n d E .P .F . a u th o r itie s fr o m tim e to tim e d u r in g th e p e r io d o f c o n tra c t. A ll h is la b o u r e r s have d is tin c t E .S .I. num ber and E .P .F . number a llo tte d by th e a u th o r ity c o n c e rn e d fro m th e ir w ages and th e to ta l a m o u n t w a s d e p o s ite d w ith th e E .P .F . a u th o r ity . H e u s e d to r a is e b ills a lo n g w ith a ll n e c e s s a ry d o c u m e n ts , i.e . d o c u m e n ts s h o w in g jo b c o m p le tio n c e r tific a te fr o m C .P .T .I . a u th o r ity , w a g e s h e e t, E .S .I. d e p o s it a n d E .P .F . d e p o s it to C .P .T .I. and th e b ills ha ve been s e ttle d as per th e c o n tra c t a c c e p tin g th e fin a l b ill a fte r e x p ir y o f th e la s t c o n tr a c t. As a lle g e d fro m th e e v id e n c e on re c o rd as w e ll as d o c u m e n ta ry p ro o f, a fte r e x p ir y of each c o n tra c t th e C o n tr a c to r M /s . M is h r a E n te r p r is e h a d is s u e d n o tic e to a ll h is la b o u r e r s in c lu d in g th e s e c o n d - p a r ty w o r k m e n to c o lle c t th e ir fin a l d u e s a n d a t th e e n d o f e x p ir y o f th e c o n tr a c t o n D td .2 4 .1 0 .1 9 9 7 he is s u e d n o tic e b e fo re one m o n th in tim a tin g to a ll h is w o r k e r s to r e c e iv e th e fin a l p a y m e n t / d u e s o n 5 .1 1 .1 9 9 7 ( A .N .) . T h e la b o u r e r s d id n o t tu r n u p to r e c e iv e th e ir fin a l d u e s . N o n - d is b u r s e m e n t o f w a g e s a ls o w itn e s s e d b y th e C .P .T .I. a u th o r ity , w h ic h is a p p a r e n t fr o m th e d o c u m e n ts . T h e re a fte r, th e c o n tra c to r M /s . M is h r a E n te r p r is e a g a in te n d e r e d p a y m e n t o f fin a l d u e s b y N o tic e D td .6 .1 1 .1 9 9 7 , b u t th e w o r k m e n d id n o t tu r n u p to r e c e iv e th e ir fin a l d u e s . H e had in tim a te d th is fa c t to th e Dy. 
Labour              C o m m is s io n e r ,                 R o u r k e la          v id e             h is           le tte r

D td .2 0 .1 1 .1 9 9 7 .            As         a lle g e d , th e         c o n tr a c to r M /s . M is h r a

E n te r p r is e      c lo s e d           h is         e s ta b lis h m e n t          in       C .P .T .I.            on
2 5 .1 0 .1 9 9 7 a fte r e x p ir y o f th e C o n tr a c t o n 2 4 .1 0 .1 9 9 7 . S o , th e re w as no sc o pe fo r h im to engage th e s e c o n d -p a rty w o rk m e n a fte r 2 4 .1 0 .1 9 9 7 . H o w e v e r, h e u se d to se n d 12 n o tic e to a ll h is la b o u r e r s to r e c e iv e th e ir fin a l s e ttle m e n t d u e s , b u t th e w o r k m e n d id n o t tu r n u p . S o , th e s e c o n d - p a r ty w o r k m e n h a v e n o t r e c e iv e d th e ir fin a l s e ttle m e n t d u e s fro m th e c o n tra c to r M /s . M is h r a E n te r p r is e in s p ite of s e v e r a l n o tic e s is s u e d to th e m . In v ie w o f th e s a i d f a c t s and c ir c u m s ta n c e s , th e s e c o n d -p a rty w o rk m e n a re o n ly e n title d to g e t th e ir w a g e s fr o m th e C o n tr a c to r M /s . M is h r a E n te r p r is e , b u t th e y a r e n o t e n title d to b e r e in s ta te d in th e ir jo b . S o , th e y a r e n o t th e r e g u la r e m p lo y e e s o f C .P .T .I. A c c o r d in g l y , i s s u e N o . i i i s a n s w e r e d . H e n c e t h e a w a r d . "

13. F ro m th e fin d in g s , a s a fo r e s a id , it is c le a r th a t le a r n e d L a b o u r C o u r t, o n s c r u tin y o f th e e v id e n c e , h a s c o m e to th e fin d in g s th a t th e r e e x is te d n o m a s te r-s e rv a n t r e la tio n s h ip b e tw e e n th e C .P .T .I. and th e p e titio n e r s , th e p e titio n e r s w e r e e n g a g e d b y th e c o n tr a c to r M /s . M is h r a E n te r p r is e s a n d M /s . M is h r a E n te r p r is e s is lia b le to m a k e p a y m e n t to th e p e titio n e r s . It h a s fu rth e r b e e n h e ld th a t th e r e h a s b e e n n o c o n tr a v e n tio n o f S e c tio n 2 5 - F o f th e I.D . A c t, a s M /s . M is h r a E n te r p r is e s h a d g iv e n s u ffic ie n t n o tic e to th e p e titio n e r s a n d o th e r w o r k e r s t o r e c e iv e t h e p a y o n e m o n th p r io r to te r m in a tio n o f its c o n tr a c t w ith C . P . T . I . , b u t t h e p e t i t i o n e r s a n d o t h e r w o r k m e n d i d n o t t u r n u p t o r e c e iv e t h e sam e. L e a r n e d P r e s id in g O ffic e r , L a b o u r C o u r t h o w e v e r h a s n o t a t a ll to u c h e d th e p o in t as to w h e th e r th e c o n tra c t b e tw e e n C .P .T .I. and M /s . M is h r a E n t e r p r i s e s w a s a s h a m c o n t r a c t a n d w h e th e r t h e p e t i t i o n e r s c a n b e r e g u l a r i z e d in th e C .P .T .I.

14. H o n ‟b le S u p r e m e C o u r t in th e c a s e o f S t e e l A u t h o r it y o f In d ia L td . a n d o th e r s , e tc . e tc ., v r s . N a tio n a l U n io n W a te r F ro n t W o rk e rs an d o t h e r s , e t c . , A IR 2 0 0 1 S C 3 5 2 7 , in p a r a g r a p h - 1 2 2 h a s h e ld th u s : -

"1 2 2 . xx xx xx 13 (5 ) O n is s u a n c e o f p r o h ib itio n n o tific a tio n u n d e r S. 1 0 (1 ) of th e C LR A Act p r o h ib itin g e m p lo y m e n t o f c o n tra c t la b o u r or o th e r w is e , in an in d u s tr ia l d is p u te b ro u g h t b e fo re it b y any c o n tr a c t la b o u r in re g a rd to c o n d itio n s o f s e r v ic e , th e in d u s tr ia l a d ju d ic a to r w ill h a v e to c o n s id e r th e q u e s tio n w h e th e r t h e c o n tra c to r h a s been in te r p o s e d e ith e r o n th e g r o u n d o f h a v in g u n d e r ta k e n to p ro d u c e any g iv e n r e s u lt fo r th e e s ta b lis h m e n t o r fo r s u p p ly o f c o n tr a c t la b o u r fo r w o r k o f th e e s ta b lis h m e n t u n d e r a g e n u in e c o n tr a c t o r is a m e r e r u s e / c a m o u fla g e to e v a d e c o m p lia n c e o f v a r io u s b e n e fic ia l le g is la tio n s s o a s to d e p r iv e th e w o r k e r s o f th e b e n e fit th e r e u n d e r . If th e c o n tr a c t is fo u n d to b e g e n u in e b u t a m e r e c a m o u fla g e , th e s o - c a lle d c o n tr a c t la b o u r w ill h a v e to b e tr e a te d a s e m p l o y e e s o f t h e p r i n c i p a l e m p lo y e r w h o s h a l l b e d i r e c t e d to r e g u la r iz e th e s e r v ic e s o f th e c o n tr a c t la b o u r in th e c o n c e r n e d e s ta b lis h m e n t s u b je c t to c o n d itio n s a s m a y b e s p e c ifie d b y it fo r th e p u r p o s e ... ... ... ...
xx xx xx"
15. H o n ‟b le S u p r e m e C o u r t, in th e c a s e o f B h ilw a r a D u g d h U t p a d a k S a h a k a r i s . L td . v r s . V in o d K u m a r S h a r m a (D e a d ) B y L .R s . & O r s ., 2 0 1 1 (5 ) S u p r e m e 7 3 7 , r e fu s e d to in te r fe r e w ith th e fin d in g s o f th e H o n ‟b le H ig h C o u r t a s s u b t e r f u g e w a s r e s o r t e d t o b y a p p e l l a n t ( p r i n c ip a l e m p l o y e r ) t o s h o w th a t th e w o r k m e n c o n c e r n e d w e r e o n ly w o r k m e n o f a c o n tr a c to r . L a b o u r C o u r t h e ld th a t w o r k m e n w e r e e m p l o y e e s o f t h e a p p e l l a n t a n d n o t e m p l o y e e s o f t h e c o n t r a c to r . C o g e n t r e a s o n s w e r e g iv e n b y L a b o u r C o u r t to c o m e to s u c h fin d in g . H ig h C o u r t 14 r e fu s e d to in te r fe r e w ith s u c h fin d in g o f fa c ts r e c o r d e d b y th e L a b o u r C o u r t. N o i n f i r m i t y w a s f o u n d b y H o n ‟ b le S u p r e m e C o u r t i n t h e i m p u g n e d o r d e r o f t h e H i g h C o u r t a n d t h e n e w t e c h n iq u e o f s u b t e r f u g e a d o p t e d b y s o m e e m p l o y e r s i n r e c e n t y e a r s w a s d e p r e c a te d .
16. In th e p re s e n t c a s e th o u g h le a r n e d L a b o u r C o u rt h a s g iv e n a fin d in g th a t p r o h ib itio n n o tific a tio n u n d e r S e c tio n 1 0 ( 1 ) o f th e C .L .R .A . A c t h a s n o t y e t b e e n is s u e d in r e s p e c t o f C .P .T .I., n o m a te r ia l o n th a t p o in t h a s b e e n d is c u s s e d . T h e r e f e r e n c e q u o t e d i n p a r a g r a p h - 3 o f t h e ju d g m e n t c le a r l y s h o w s th a t th e r e a r e tw o lim b s in th e r e fe r e n c e ; th e fir s t lim b r e fe r s to a c tio n o f M /s . M is h r a E n te r p r is e s e tc . in te r m in a tin g th e s e r v ic e s o f th e p e titio n e r s , a n d th e s e c o n d l i m b r e f l e c t s o n t h e e n t i t l e m e n t o f t h e p e t i t i o n e r s t o c l a i m r e g u la r i z a t i o n u n d e r th e C .P .T .I. T h e p e titio n e r s b e in g a d m itte d ly e m p lo y e e s o f M /s . M is h r a E n te r p r is e s , a L a b o u r C o n tr a c to r , th e q u e s tio n w h ic h c o u ld h a v e b e e n d e c id e d w a s w h e th e r th e c o n tra c t b e tw e e n C .P .T .I. a n d M / s . M is h r a E n te r p r is e s is a sham c o n tr a c t , a n d w h e th e r th e p e titio n e r s c a n b e r e g u la r e m p lo y e e s o f th e C .P .T .I. L e a r n e d L a b o u r C o u r t h a s n o t a t a ll a d d r e s s e d th is is s u e . T h is b e in g a p u r e q u e s t i o n o f f a c t c a n n o t a ls o b e d e c i d e d i n a w r i t p e t i t i o n . T h e p a r tie s m a y b e r e q u ir e d to a d d u c e e v id e n c e a ls o o n th is p o in t.
17. In v ie w o f s u c h fa c t, I fe e l c o n s tr a in e d to r e m a n d th e m a tte r fo r d e c is io n o f th e L a b o u r C o u r t o n th e a fo r e s a id p o in t. T h e p e titio n e r s a r e w ith o u t jo b s in c e 1 9 9 7 . T h e y m u s t b e fig h tin g litig a tio n s w ith m u c h p a in a n d fin a n c ia l s tr in g e n c y . T a k in g in to c o n s id e r a tio n th e p lig h t o f th e p e titio n e r s , I d ir e c t th e M a n a g e m e n t o f th e C .P .T .I. to p a y R s .3 0 ,0 0 0 / - ( r u p e e s th ir ty th o u s a n d ) to e a c h o f th e p e titio n e r s w ith in 1 5 ( fifte e n ) d a y s o f th e a p p e a r a n c e o f th e p a r tie s b e fo r e th e L a b o u r C o u r t, S a m b a lp u r o r w ith in s u c h fu r th e r tim e a s e x te n d e d b y th e le a r n e d L a b o u r C o u rt o n p r o p e r a p p lic a tio n b e in g file d to th a t e ffe c t . The 15 a fo r e s a id p a y m e n t s h a ll b e o v e r a n d a b o v e th e p a y m e n t to b e m a d e b y M /s . M is h r a E n te r p r is e s . P a r tie s a r e d ir e c te d to a p p e a r b e fo r e th e L a b o u r C o u r t, S a m b a lp u r o n 3 0 . 0 4 . 2 0 1 5 . L e a r n e d L a b o u r C o u r t is d ir e c te d to d is p o s e o f th e p r o c e e d i n g o n th e i s s u e , a s a f o r e s a i d , w i t h i n s i x m o n th s f r o m t h e d a t e o f f i l i n g o f a d d itio n a l p le a d in g s , if a n y , b y th e p a r tie s .
18. B e fo r e p a r tin g w ith th e o r d e r , I fe e l p e r s u a d e d to m e n tio n h e r e th a t I have d is c u s s e d none o f th e c ita tio n s r e lie d on by le a r n e d c o u n s e l fo r th e p e titio n e r s d u r in g d is c u s s io n o f th e m a tte r , a s n o n e o f th e c a s e c ite d b y le a r n e d c o u n s e l fo r th e p e titio n e r s h a s a n y a p p lic a tio n o n th e fa c ts o f th e p r e s e n t c a s e .
A ll th e w r it p e titio n s a r e d is p o s e d o f a c c o r d in g ly .
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C .R . D a s h , J .
O r is s a H ig h C o u r t, C u tta c k .
                 th
The 10                d a y o f A p r il, 2 0 1 5 .
S . K . P a r id a , S e c re t a r y .