Legal Document View

Unlock Advanced Research with PRISMAI

- Know your Kanoon - Doc Gen Hub - Counter Argument - Case Predict AI - Talk with IK Doc - ...
Upgrade to Premium
[Cites 18, Cited by 0]

Delhi District Court

Sh. Enamul Haque vs M/S. Delhi Jal Board on 16 March, 2018

           IN THE COURT OF SHRI UMED SINGH GREWAL
            PILOT COURT / POLC­XVII, ROOM NO. 514 :
                DWARKA  COURTS: NEW DELHI

LIR No.10/18
In the matter of :­
Sh. Enamul Haque
S/o Sh. Noor Mohammad Khan, Age 35 years, 
Aadhar Card No.8751 8684 2515, Mobile No.9540796236,
C/o Delhi Pradesh Kamgar Ekta Sangh (Regd.), 
Plot No.1, Gali No.2, Dabri Gaon, 
New Delhi­110045. 
                                        ............. Workman
                             Versus
1.

 M/s. Delhi Jal Board  15, Dargah Gulli Road, Block A,  Mukherjee Market Jhandewalan, New Delhi­110005

2. M/s. Engineers India Limited, 1, Bhikaji Cama Place, Near Hyatt Hotel,  New Delhi­110066.

3. M/s. Pratibha Industries Limited, B­85, Bhisham Pitahmah Marg, Defence Colony,  New Delhi­110024. 

                                      .................. Managements

DATE OF INSTITUTION          :                   05.12.2017
DATE ON WHICH AWARD RESERVED :                   06.03.2018
DATE ON WHICH AWARD PASSED   :                   16.03.2018

A W A R D :­

1. Vide Order No. F.24(193)/17/Ref./CD/Lab./1007 dated LIR No.10/18 Page 1 of 23 29.11.2017, issued by Government of NCT of Delhi, a reference was sent to this court with the following terms:­ "Whether   services   of   the   workmen   as   per Annexure 'A' have been terminated illegally and/or unjustifiably   by   the   management;   if   so,   to   what relief   are   they   entitled   and   what   directions   are necessary in this respect?"

2.  Claimant's  case   is   that   he   had   started   working   with management no. 1 through management no. 3 as Rigerman w.e.f 29.12.2012 at the last salary of Rs.14,490/­.  In order to get its work executed, the management no. 1 had given contract to management no. 2, which in turn, had sub­contracted to management no. 3. He never gave any chance to complaint to any of the management as his work was satisfactory.  The managements did not provide him and co­employees any legal facility like attendance card, ESI, PF, Bonus, CL, EL and ML for which they were demanding orally since long. Due to persistent demand, the management no. 3 withheld their earned wages for May, June, July, August­2016 on the excuse that management nos. 1 & 2 had not released fund and as soon as the money was released, earned wages would be paid.   They had approached management nos. 1 & 2 also for earned wages but no heed was paid. They were feeling heat due to withholding of earned wages and hence, they told managements that they would complain to labour department and Chief Minister. Due to that reason, their LIR No.10/18 Page 2 of 23 services were terminated on 21.09.2016 illegally without notice and tendering notice pay and compensation and without chargesheet and domestic enquiry. They approached managements several times for reinstatement   but   they   were   not   taken   on   duty.     They   made   a complaint to labour office, Pusa Road, New Delhi on 29.09.2016 through Union where earned wages were paid but reinstatement was denied.  Joint demand notice dated 19.12.2016 went unreplied.  At last, they filed case before Conciliation Officer where managements refused   to   take   them   back   on   duty.     They   are   jobless   since termination of service.
3.  Written statement of management no. 1 is to the effect that it is neither a necessary nor a proper party.   It had hired the Project Management Consultancy Services from management no. 2 which is a Govt. Organization.  It had entered into agreement with it on   28.01.2008   for   laying   of   interceptor   sewers   alongwith   three major   drains   (Shahdra,   Supplementary   and   Najafgarh)   for abatement   of   pollution   etc.     The   management   no.   2   had   further heired service of a contractor i.e. management no. 3 who engaged the claimant for that project.   As per the terms and conditions of agreement   between   it   and   management   no.   2,   responsibility   for completing the project and hiring the service  of contractors was on management no. 2 and thus, the management no. 2 & 3, being the LIR No.10/18 Page 3 of 23 project   management   Consultancy   Contractor   and   construction respectively are responsible for the liability, if any.   There is no relationship   of   employer   and   the   employee   between   it   and   the claimant. He has not approached the court with clean hands as he has   suppressed   the   material   facts   that   he   was   engaged   by management no. 3 and was paid salary and given other facilities like ESI and PF by management no.3.     His work was controlled and manged by management no.3.  He was deployed in its premises by   management   no.   3   on   the   asking   of   management   no.   2   on temporary   basis   under   a   contract.     Full   administrative   and supervisory control was exercised over him by management no. 3.
4.  It is mentioned in the WS of management no. 2 that it is a public sector undertaking under the administrative control of Ministry of Petroleum and Natural gas and is basically a consultant in   the   field   of   Hydro­carbon,   non   ferrous   metallurgy   and infrastructure etc. Its core activity is to provide consultancy services in   the   field   of   engineering,   procurement   and   construction management   to   various   clients.     It   executed   an   agreement   with management   no.   1   under   which   it   had   to   provide   management consultancy service including management and technical services in relation   to   the   project   of   laying   of   interceptor   sewers   alongwith three major drains in Delhi. It had to engage construction contractor LIR No.10/18 Page 4 of 23 on   behalf   of   management   no.   1   to   execute   that   work   and   to supervise   the   work   of   the   contractor.   Accordingly,   it   hired management no. 3 to complete the project on agreed time schedule and approved cost.  As per the terms of the contract, it was required to engage construction contractor and to supervise the work of the contractor as per technical specifications and standard. Its role was that of an "Attorney" and "consultant". It was neither a contractor nor a principal employer.   It had neither engaged / employed any worker   nor   had   issued   any   form   V   to   management   no.   3.     A tripartite agreement was executed among all three managements on 08.12.2011   for   carrying   out   the   work   of     laying   of   interceptor sewers.   The work was to be executed by management no. 3 and they   were   responsible   for   payment   of   salary   /   wages   to   their workers.  The Management no. 1 was to release funds progressively to the specifically designated project account  (ESCROW account) and   management   no.2   was   merely   to   certify   the   work   of management no.3.  Unless the funds were released by management no. 1, there cannot be any liability on its part to make payment to contractors.  No lump sump contract was ever awarded to it and no lump sump payment was made to it.  Its fee was limited to certain percentage of the total cost of the project. It was never principal employer  at   any point  of  time.   The claimant was  employed  by management no. 3 and deployed in the premises of management LIR No.10/18 Page 5 of 23 no.1.
5.  The management No. 3 did not file written statement.
6.  Following issues were framed on 05.02.2018:­
1. Whether termination of service of claimant by management No.3 on 21.09.16 is illegal and /or unjustifiable? OPW. 
2. Relief. 
7.  In order to substantiate the case, the claimant tendered his   affidavit   in   evidence   as   Ex.WW1/A   mentioning   all   the   facts stated in statement of claim.  He relied upon following documents:­
1. Ex.WW1/1 is the complaint filed by him against management before ALC dated 29.09.16 alongwith list of workmen. 
2. Ex.WW1/2 is demand notice dated 19.12.16. 
3. Ex.WW1/3,   Ex.WW1/4,   Ex.WW1/5   and   Ex.WW1/6   are postal receipts. 
4. Ex.WW1/7   is   statement   of   claim   filed   before   Conciliation Officer alongwith list of workmen. 
5. Ex.WW1/8 is salary sheet for December, 2012. 
6. Ex.WW1/9 is his I. Card issued by management No.3. 
7. Ex.WW1/10 is pay­slip for July, 2015. 
8.  Management No. 1 examined its Executive Engineer (ISP) Mr. Deepak Kumar Srivastava as M1W1 who deposed that LIR No.10/18 Page 6 of 23 there   was   no   relationship   of   employee   and   employer   between claimant and management No.1.  He was employed by management No.3 to whom the contract was awarded for miscellaneous work by management No.2.   It had entered into contract with management No.2 for laying of interceptor sewers along three major drains in Delhi for abatement of pollution in Yamuna river.   Generally, it enters into such type of contracts with management No.2.  In turn, the   management   No.2   gives   contract   to   other   firms   and   in   the present case, it was given to management No.3.   The terms and conditions   of   project   were   fully   laid   down   in   agreement   dated 28.01.2008.  As per that agreement, it was management No.2 who was to appoint contractors to complete the project.   Management No.2 sub­contracted management No.3 and then management No.3 employed claimant.   The claimant had not worked for  240 days continuously   in   a   calendar   year   immediately   preceding   to   the termination of his service.  No demand notice was ever served on it.

It had no role in appointment of management No.3 as contractor as it was appointed by management No.2 to execute the project.   In fact,   management   No.1   is   a   large   Navratna   Public­Sector undertaking of the Government of India.  In case it employees any person,   he   is   employed     through   proper   channel   after   issuing appointment letter.   It is beyond comprehension that it would not have issued appointment letter, wage slip and attendance card etc. LIR No.10/18 Page 7 of 23 to the claimant.  Being a large body, it issues all statutory letters / cards to the persons appointed by it.   As the claimant was never employed by it, his service cannot be terminated by it at any time. 

9.  Management   No.2   examined   its   Deputy   General Manager (Construction) Mr. Tarsham Raj Sharma as M2W1 who deposed that as per biparty agreement between management No.1 and   2   and  tripartite   agreement   between   all   managements,   it   was management No.3 who was to lay sewers along side three major drains   in   Delhi   for   abatement   of   pollution   in   Yamuna.     The management   No.2   was   to   render   consultancy   services   to management   No.1   who   was   to   release   fund   progressively   to   the specifically   designated   project   account   (escrow   account)   and management No.2 was to certify the works of management No.3.  It was never principal employer of any person at any time.

Relationship:

10.  Ld. AR for management No.1 argued that interceptor sewers were to be laid alongwith three major drains of Delhi in order to abate the pollution of Yamuna river.  To execute that work, the   management   No.1   entered   into   agreement   with   management No.2 on 28.01.2008 vide which management No.2 was to provide management and technical services for infrastructure and to appoint a   contractor.     It   appointed   management   No.3   as   a   contractor   to LIR No.10/18 Page 8 of 23 execute   the   work   consequent   thereto   tripartite   agreement   was executed between all three managements on 08.12.2011 to do that work in which it  was specifically provided that the management No.3   would   perform   the   work   in   all   respects   in   a   professional manner as per detailed scope of work.  The claimant was appointed by management No.3 as its employee and was deputed to its site to lay   interceptor   sewers.   The   management   No.1   was   nowhere   in picture in his employment.  He was employee of management No.3.

Ld. AR for management No.2 argued that management No.2 is a public sector undertaking under the administrative control of   Ministry   of   Petroleum   &   Natural   Gas  and   is   basically   a consultant in the field of Hydro­carbon, non ferrous metallurgy and infrastructure   etc.     Its   core   activity   is   to   provide   consultancy services in the field of engineering, procurement and construction management to various clients.  In the case in hand, it had entered into   agreement   with   management   No.1   to   provide   such   kind   of service.  It was required to engage construction contractor on behalf of management No.1 and was further required to supervise the work of   contractor   as   per   the   technical   specifications   and   standard. Subsequent   thereto,   it   contracted   the   work   to   management   No.3 who appointed claimant as its employee and deputed him to execute the work.  He further submitted that salary was paid to claimant by management No.3 and PF & ESI were also deducted and deposited LIR No.10/18 Page 9 of 23 by management No.3.  Control and supervision over his work was of management No.3.  So, he was employee of management No.3. 

Ld. AR for management No.3 admitted that claimant was employed by management No.3. 

Ld. ARW also admitted that claimant was employed by management   No.3   and   he   was   deputed   to   the   premises   of management No.1 to execute the work.  He submitted that claimant used to work on the site of management No.1 under the control and supervision of its officials / officers.   Management No.1 has not placed   on   record   any   registration   certificate   issued   by   Labour Department authorizing it to engage contractor under Section 7 of Contract   Labour   (Regulation   &   Abolition)   Act,   1970.     The management No.3 has also not placed on record any license issued by Labour Department to the effect that it was authorized to engage claimant on contract basis under Section 12 of the Contract Labour (Regulation & Abolition) Act, 1970.  He submitted that the contract between management Nos.1 and 2 on one side and management No.3 on the other side, is sham and camouflage.  In this regard, he relied upon Punjab State Electricity Board Vs. Presiding Officer, Labour Court, Ludhiana & Anr. 2006 LLR 170. 

11.  Following   clauses   of   biparty   agreement   Ex.M1W1/1 dated 28.01.2008 between management Nos. 1 & 2,  are relevant:­ LIR No.10/18 Page 10 of 23 "1. The first party is interalia engaged in discharging the functions   of   water   supply,   sewerage   and   sewerage disposal   and   drainage   within   the   National   Capital Territory   of   Delhi   and   is   now   desirous   of   'Laying   of Interceptor Sewer along three major drains (Najafgarh, Supplementary & Shahadra)  in Delhi for abatement of pollution   in   Yamuna   River   (hereinafter   referred   to   as PROJECT). 

2.   THE   FIRST   PARTY   intends   to   have   project Management Consultancy services for works relating to the abovementioned "PROJECT".

3.   EIL   is   in   the   business   of   providing   inter­alia management   and   technical   services   for   infrastructure, intelligent building, and possesses experience, expertise and knowledge in the regard.

4.   EIL   agrees   to   perform   such   SERVICES   and   also agrees   to   engage   construction   contractors   to   perform work   on   behalf   of   THE   FIRST   PARTY   and   submitted proposal   thereof,   and   after   discussion   THE   FIRST PARTY   and   EIL   have   finally   agreed   to   the   terms   and conditions for the performance to the said SERVICES as detailed herein.

5. THE FIRST PARTY also desires that EIL apart from rendering   project   Management   Consultancy   services arrange   to   execute   contracts   on   behalf   of   THE   FIRST PARTY,   as   an   attorney   through   construction contractor(s) to perform the work in order to complete the   PROJECT   within   an   Agreed   time   schedule   and approved cost."

For fee for management No.2, following is the clause mentioned on page No.21 of Ex.M1W1/1:

LIR No.10/18 Page 11 of 23
"Section FC­4 ................... Fee and agreement price In consideration of the SERVICES performed, by EIL, the FIRST PARTY shall pay fees as provided in Annexure II and as per the payment terms therein specified.  The total amount payable by THE FIRST PARTY to EIL shall constitute the Contract price". 

The   management   No.2   was   to   award   work   as   per following clause appearing at page No.17 of Ex.M1W1/1:­ "1.5.  Award of works shall be done as per following­ 1.5.1   Topographical,   hydrological   and   Geotechnical investigations,   Environment   Impact   Assessment   Studies and other enabling works shall be undertaken by EIL or specialized   contractors,   as   per   requirements.   However the cost of all studies and investigations shall form part of Cost of Project.

1.5.2     Inviting   Tenders,   evaluation   of   offers   and recommendation   for   appointment   of   Execution contractors shall be performed by EIL in compliance with tendering procedure and in line with CVC guidelines".

12.  In tripartite agreement Ex.M1W1/M2, the heading is that   the   agreement   entered   on   08.12.2011   between   all   three managements was for design and construction of interceptor sewers along Najafgarh, Supplementary and Shahdara drains for abatement of   pollution   in   Yamuna   River.     Following   clause   of   tripartite agreement are relevant:­ "2.  Work   to   be   performed:  The   Contractor   shall LIR No.10/18 Page 12 of 23 faithfully perform the subject work in all respects  in a professional manner as per detailed scope of work, scope of   supply,   various   terms   and   conditions,   Schedule   of Rates   /   Schedule   of   lump   sum   prices   Technical Specifications,   Drawings,   Standards   etc.   as   defined   in various sections of the Contract documents and as per the best industry practices as laid down by the Company. 

3.  Compensation:  As   full   consideration   for   the satisfactory   performance   of   this   contract   including fulfilling   of   all   obligations   and   liabilities   under   this Contract   by   the   contractor,   the   company   shall compensate the Contractor in accordance with the prices set forth in the Schedule of Rates / Schedule of lump sum prices as per the payment provisions of this Contract up to   70%   of   the   progress   payments   and   such   progress payments up to 70% shall be released to the Contractor by the Company on behalf of the Owner."

It is expressly understood by the Contractor that the balance 30% of the payment structured in accordance with   Clause   3.3.6   of   the   Special   Conditions   of   the Contract,   Annexure   V   the   Bidding   Document   shall   be released to the Contractor from the deposits made by the Owner   from   their   Revenue   Receipts   into   the   Escrow Account in advance. The Owner undertakes to make such deposits to ensure that there are no detaults regarding release   of   this   component   of   the   payments.

Notwithstanding   anything   contained   herein   above,   the payments   shall   be   released   subject   to   the   Contractor fulfilling   his   obligations   as   laid   down   in   the   contracts including those pertaining to O & M". 

13.  From   biparty   and   tripartite   agreements,   it   becomes LIR No.10/18 Page 13 of 23 clear   that   management   No.2   had   entered   into   agreement   with management No.1 to provide management and technical services for   infrastructure,   intelligent   building   etc.   and   to   engage construction contractors to perform work on its behalf and submit proposal thereof.  The management No.2 was further authorized  to execute contracts on its behalf as an Attorney through construction contractors.   In lieu thereof, management No.1 was to pay fee as provided   in   Annexure   II   of   Ex.M1W1/1   and   the   total   amount payable by management No.1 was to constitute the contract price. As per  clause No.1.5.2, the management No.2 invited tenders to evaluate offers and to recommend contractors for management No.1 in line with CVC guidelines.   After execution of biparty contract, management  Nos. 1 & 2 entered into contract with management No.3 for laying of interceptor sewers.

14.  Ld.   ARW   could   not   pinpoint   any   wrong   in   both contracts.  There is not an iota of truth in the submission of ARW that the contract was sham and camouflage.  It is correct that as per Section 7 of Contract Labour (Regulation & Abolition) Act, 1970, the management No.1 was required to register itself for outsourcing the work.  In turn, the management No.3 was also required, as per the provisions of Section 12 of the Act, to get license to engage claimant   on   contract   basis.     In  Punjab   State   Electricity   Board LIR No.10/18 Page 14 of 23 (Supra), facts were that the workman was electricity meter reader. The work was assigned to him by officers of the Board.   He was required to perform functions in accordance with rules / instructions prevalent in the Board.  He was required to perform functions to the satisfaction of Sub­Divisional Officer (OP) concerned and to carry out   the   work   i.e.   meter   reading   in   the   premises   of   various consumers on an authority conferred upon him by the Board.  In the case in hand, the claimant used to work on the site of management No.1.   He admitted in cross­examination that it was management No.3   who   used   to   pay   him   salary   and   deduct   PF   and   ESI contribution.  It was the supervisor of management No. 3 who used to   supervise   his   work.     He   admitted   that   he   did   not   have   any document to show that he was employee of management No.1.  He admitted it correct that it was management No.3 who deputed him at the site of management No. 1 for work.  In cross­examination by management   No.2,  he admitted that he  had applied for  job  with management No.3.   In cross­examination by management No. 3, he admitted that he was issued identity card by management No.3.  His unpaid wages, he admitted, were paid by management No.3 before labour department.  Such type of cross­examination is also proving the contention of management Nos. 1 & 2 that their contract with management No.3 was not sham and camouflage.

The claimant has placed on record his salary structure LIR No.10/18 Page 15 of 23 sheet as WW1/8.  That sheet has been issued by management No.3. He   was   given   pay­slip   Ex.WW1/10   which   was   also   issued   by management   No.3.     To   the   same   effect   is   his   identity   card Ex.WW1/9.     Moreover,   his   own   case   in   statement   of   claim   and affidavit in evidence is that he was employed by management No.3 and was deputed in the premises of management No.1.  He did not allege   in   statement   of   claim   that   the   contract   was   sham   and camouflage.     So,   it   is   held   that   tripartite   agreement   executed between all three managements is not sham and camouflage.  It is a genuine contract.  The claimant was employee of management No.3 and not of management Nos.1 & 2. 

Issue No.1:

15.  Ld. AR for management No.3 argued that claimant was appointed only for one year.   He was made aware at the time of appointment that his employment was only for a particular project i.e. laying of interceptor sewers.  After completion of that project, his service will not be renewed.  He relied upon termination letter Ex.WW1/M1(3),   filed   in   the   connected   case   titled   as   Radhey Shyam   Vs.   Delhi   Jal   Board   &   Ors.,   to   argue   that   case   of   the management  is covered under Section 2(oo)(bb) of the I.D. Act, 1947   and   hence,   termination   of   service   of   claimant   is   not retrenchment.

LIR No.10/18 Page 16 of 23

On   the   other   hand,   ld.   ARW   argued   that Ex.WW1/M1(3) is not bearing the signature of the claimant.  That document was never issued to him.  Moreover, copy of termination letter has not been filed by management. The management has not placed on record appointment letter / agreement / contract executed by it with claimant to the effect that he was appointed only for a fixed term or for a specific project.   Moreover, the management No.3 has not filed written statement and did not lead evidence. 

16.  It is correct that it is mentioned in termination letter Ex.WW1/M1(3) (placed in connected case titled as Radhey Shyam Vs.   Delhi   Jal   Board   &   Ors.)   that   co­employee   Radhey   Shyam's contract agreement with management No.3 was for one year and the project was reaching to the completion stage and hence, his service was no more required.  Copy of termination letter has not been filed by management and so, it cannot be known whether such document was bearing the signature of the claimant or not.  The management has not placed on record appointment letter / contract executed with him to the effect that he had been appointed only for one year or for a particular project.  In Sonepat Cooperative Sugar Mills Ltd. Vs. Rakesh Kumar 2006 LLR 161, there was no pleading or evidence of   the   management   that   claimant   was   appointed   for   a   specific period and termination of his service was on account of non renewal LIR No.10/18 Page 17 of 23 of contract.  The Apex Court held that such plea cannot be allowed to be raised for the first time in appeal.  It further held that service of the workman was terminated in violation of Section 25F of the Act.   In the case in hand also, the management No.3 did not file written statement.  It did not lead any evidence.  So, it can be said that there is no pleading and evidence on behalf of management No.3 to the effect that claimant was appointed only for one year and for a particular project.  So, contention of AR for management No.3 that   his   case   is   covered   under   Section   2(oo)(bb)   of   the   Act   is rejected.

It is the admitted position of all parties that no notice was given and no notice pay and retrenchment compensation were tendered to claimant by management No.3 before terminating his service. It is nobody's case that claimant was guilty of misconduct and hence, there was no scope of any charge­sheet and domestic enquiry.  By terminating service of the claimant in that manner, the management No. 3 has violated the provisions of Section 25F of the I.D. Act, 1947.   This issue is decided in favour of claimant and against management No.3. 

Issue No.2:   

17.  Ld.   ARW   argued   that   service   of   the   claimant   was terminated   illegally   and   hence,   management   No.1   be   directed   to LIR No.10/18 Page 18 of 23 reinstate   claimant   and   pay   full   back   wages   with   continuity   of service.     He   relied   upon   Section   21(4)   of   the   Contract   Labour (Regulation   &   Abolition)   Act,   1970   saying   that   liability   of management No.1 is vicarious one if the default is committed by the main employer i.e. management No.3.

Ld.   AR   for   management   No.1   argued   that   as   per Section 21 of Contract Labour (Regulation & Abolition) Act, 1970, vicarious   liability   of   principal   employer   arises   when   the   main employer   defaults   in   payment   of   wages   to   its   worker   and   that liability arises only during the employment of the worker.  After his service is terminated and if award is passed in his favour, there is no such vicarious liability.  Had so been the case, the Parliament would have   specifically   mentioned   in   Section   21   of   the   Act   that   the principal employer was bound to obey the award vicariously. 

18.  As   per   Sections   17,   18   &   19   of   Contract   Labour (Regulation & Abolition) Act, 1970, the main employer is required to provide rest rooms, first aid and other facilities to its workers.  As per   Section   20,   if   the   main   employer   defaults,   the   principal employer shall provide those amenities and all expenses incurred by the   principal   employer   in   providing   those   amenities   shall   be recovered   by   principal   employer   from   the   contractor.     The   next Section is Section 21 which talks of responsibility for payment of LIR No.10/18 Page 19 of 23 wages.   The prime responsibility for payment of wages is of the contractor.  As per Section 21(4) of the Act, if the contractor fails to make   payment   of   wages   within   the   prescribed   period,   then   the principal employer shall be liable to make payment.  Section 21 is appearing just  after Section 171819 and 20.   That scheme of section shows that  the provisions of  Section 21 comes into play only   when   the   contract   worker   is   still   working   with   principal employer.   Moreover, if the parliament wanted to make principal employer vicariously liable for the award and decree of the court, it would   have   definitely   specified   in   any   of   the   Section   that   the principal employer would be bound to obey the decree or award of the court and to recover the decretal / awarded amount from the main employer.  Such words are completely missing in Section 21 of the Act.   So, neither management No.1 nor management No.2 can be made vicariously liable to make payment of the awarded amount.

19.  Following   was   held   by   the   Hon'ble   Apex   Court   in Steal   Authority   of   India   and   Others   Vs.   National   Union Waterfront Workers and Other, 2001(91) FLR 182 (SC):­ " As analysis of the cases, discussed above shows that they fall in three classes;  (i)  Where contract labour is engaged   in   or   in   connection   with   the   work   of   an establishment and employment of contract labour is the work   of   an   establishment   and   employment   of   contract LIR No.10/18 Page 20 of 23 labour   is   prohibited   either   because   the   industrial adjudicator/Court   ordered   abolition   of   contract   labour or   because   the   appropr4iate   Government   issued notification   under   Section   10(1)   of   the   CLRA   Act,   no automatic absorption of the contract labour working in the   establishment   was   ordered:   (ii)   where   the  contract was   found   to   be   a   sham   and   nominal,   rather   a camouflage, in which case the contract labour working in the establishment of the principal employer were held, in fact   and   in   reality,   the   employees   of   the   principal employer   himself.   Indeed,   such   cases   do   not   relate   to abolition   of   contract   labour   but   present   instances wherein   the   Court   pierced   the   veil   and   declared   the correct position as a fact at the stage after employment of contract labour stood prohibited; (iii) where in discharge of a statutory obligation of maintaining of canteen in an establishment the principal employer availed the services of  a contractor the Courts  have  held that the  contract labour would indeed be the employees of the principal employer."

It was held by the Hon'ble High Court of Delhi in the Management of Ashok Hotel Vs. Their Workman and Anr. WP(C) No.14828/2006 decided on 19.02.2013  that perusal of decision of the Constitution Bench in  Steal Authority of India and Ors. Vs. National   Union   Waterfront   Workers   and   Ors,   2001(7)   SCC   1 makes it amply clear that even where the work of an establishment is carried out by employment of contract labour prohibited because of the notification issued under Section 10(1) of the CLRA Act, no automatic absorption of the contract labour can be ordered. 

LIR No.10/18 Page 21 of 23

20.  The management No.3 is in huge debt and it has been taken over by consortium of banks led by Bank of Baroda.  Bank of Baroda, vide letter dated 20.12.2017, filed in the connected case titled as Rajiv Ranjan Kumar Vs. M/s. Delhi Jal Board & Ors., LIR No.3408/17, had given following information to Delhi Metro Rail Corporation:­  "We   refer   to   the   subject   company   which   is   enjoying various credit facilities from consortium of lenders led by Bank of Baroda. The company was under severe stress and accordingly Strategic Debt restructuring (SDR) was decided as a Corrective Action Plan under RBI circular via   Circular   DBR.BP.BC.No.101/21.04.132/2014­15 dated   08.06.2015.     As   a   part   of   the   SDR   scheme,   the lenders   of   Pratibha   Industries   Ltd.   have   acquired   and hold the majority stake in the company, ie.. 58% stake as on date. 

 As per the guidelines the scheme was implemented such that the holdings of the company, held by the banks be divested   in   favour   of   a   'new   promoter',   thus   enabling change   in   Management   structure.   However,   being   the lead bank of the consortium, we wold like to inform you that that the process of induction of a new investor under the   SDR   scheme   has   been   annulled   by   our   higher authorities.

 In view of the above, we request you to kindly give us an appointment, so that our authorized officials can have a meeting to ensure a smooth transition and continuity for completion   of   the   project   works   and   agree   on   the standard   operating   procedure   for   the   same.   Till   such time, you are kindly requested that no payments and/or LIR No.10/18 Page 22 of 23 decisions in relation to the project be made at the behest of the incumbent management." 

Above   information   by   lenders   shows   that   financial condition of management No.3 is in dire straits and hence, relief of reinstatement is ruled out. As per salary structure sheet  Ex.WW1/8 of   the   claimant   issued   by   management   No.3,   he   had   joined management No.3 on 29.12.2012.   His service was terminated on 21.09.2016.   In this way, he had worked for about 04 years.   The claimant deposed that his last drawn salary was Rs.14,490/­ and that fact has been corroborated by his salary slip Ex.WW1/10.  Taking into   account   the   length   of   service   and   last   drawn   salary,   the management No.3 is directed to pay a lump­sum compensation of Rs.1,20,000/­   (Rupees  One  Lakh Twenty Thousand  Only)  to  the claimant within a month from the date of publication of the award, failing which it shall be liable to pay interest on it @ 9 per cent per annum   from   today   till   its   realization.     Reference   is   answered accordingly.  Award is passed accordingly.

21. The requisite number of copies of the award be sent to the Govt. of NCT of Delhi for its publication.  File be consigned to Record Room. 

Dictated to the P.A. & announced     (UMED SINGH GREWAL) in the open Court on 16.03.2018.     PILOT COURT/POLC­XVII    DWARKA COURT, NEW DELHI.

LIR No.10/18 Page 23 of 23