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[Cites 9, Cited by 1]

Jharkhand High Court

Murli Gope & Ors vs Damodar Valley Corporation & O on 11 July, 2013

Author: Aparesh Kumar Singh

Bench: Aparesh Kumar Singh

                                         WP(L) No. 5905 of 2010
                                                        ­­­­
    In the matter of an application under Article 226 of the Constitution of India.
                                                        ­­­­
                       Murli Gope & ors.                                    ...        ...       Petitioners 
                                                    ­Versus­
                       The Damodar Valley Corporation and ors.... ...                          Respondents
                                                        ­­­­
                                                       With
                                   Contempt Case (Civil) No.977 of 2012
                                                        ­­­­
                       Murli Gope & ors..................................................... Petitioners
                                                     Versus
                        State of Jharkhand & ors...................  Opposite Parties­Respondents.
                                                        ­­­­
                       For the Petitioners             :M/s V.P.Singh, Sr.Advocate & A.K.Sinha
                       For the Respondents             :M/s.Dilip Jerath,S.K.Gupta, T.Kabiraj &
                                                                  R.K.Shahi.
                                                        ­­­­
                     PRESENT :  HON'BLE MR. JUSTICE APARESH KUMAR SINGH
                                                         ­­­­
Aparesh Kumar Singh,J: Heard learned counsel for the parties.

                  2.     The   petitioners'   12   in   number,     are   seeking   issuance   of   a 

                mandamus upon the respondents­DVC and its officials to grant equal 

                pay   and   benefits   at   par   with   the   canteen   employees   of   Durgapur 

                Thermal   Power   Station.  They   are   also   seeking   a   direction   upon   the 

                respondents   to   treat   them   as   permanent   canteen   employees   of 

                Chandrapura Thermal power Station (CTPS) in view of the decision of 

                the competent authority of the Government of Jharkhand dated 27th 

                December,2003 as contained in Annexure 4/A and 27th January,2004  as 

                contained in Annexure 5 to the writ petition said to have been taken 

                pursuant to the direction passed by this Court in CWJC No.3096/1999 

                dated 15th June,2001, Annexure 2  and  in CMP No.128/2003 dated 6th 

                May,2003, Annexure 3 to the writ petition. These petitioners have also 

                sought   quashing   of   the   order   dated   3rd   January,2006,   Annexure   7 

                passed  by  the  respondent­DVC whereunder  they  have  taken a  stand 

                that on account of the status quo order passed in CWJC No.3096/1999, 

                the order passed by the Labour Commissioner dated 27th January,2004 

                would not be implemented till final decision is taken  one or other way 

                by   the   competent   authority   so   far   as   the   continuance   of   the 

                employment of the petitioners are concerned in the canteen in 
                                         2.

question. 

 3.            It   is   the   case   of   these   petitioners   that   they   have   been 

working   as   canteen   workers   on   different   posts   in   the   canteen 

maintained under CTPS,  a factory within the meaning of Factories Act 

and   had been employed between 1979 to  1993 through a contractor. 

Initially   a   tripartite   settlement   was   arrived   at   on   18th   August,1980, 

Annexure   1   in   which   the   representatives   of   the   Labour   Department, 

DVC and the canteen employees were parties and the condition no.4 of 

the settlement stipulated that the canteen employees of CTPS would be 

given all benefits and facilities which the canteen employees of DTPS 

would be getting. In the Year 1997 the canteen employees of DTPS were 

regularized and started getting superior benefits of payment than the 

canteen   employees  of   CTPS.   In  such  circumstances  they   preferred   a 

writ petition being CWJC No.3096/1999 which was disposed of by order 

dated   15.6.2001   with   liberty   to   the   petitioners   to   approach   the 

competent authority i.e. the Central Government with a direction to the 

Central   Government   to   decide   the   dispute   on   receipt   of   such 

application and on verification of all the relevant materials. However, 

after   passing   of   the   said   order   the   petitioners   preferred   a   civil 

miscellaneous petition i.e. CMP No.128/2003 to seek modification  in 

the earlier order dated 15.6.2001  in view of the judgment rendered by 

the Hon'ble Supreme Court in the case of Steel Authority of India Ltd. 

Vs.  National   Union  Water   Front  Workers,  reported   in   AIR   2001   SC 

3527. The competent authority in the case of the petitioners became 

the   State   Government   and   not   the   Central   Government.   Such 

modification was allowed by order dated 6th may,2003.

4.             It   is   the   contention   of   the   petitioner   that   on   their 

representation before the State Government the representatives of the 

management   of   DVC   were   also   heard   and   in   the   meeting   held   on 

27.12.2003

 the management was directed to remove the pay anomaly in  3. respect of these petitioners while they were dithering  over the matter  of their regularisation. A meeting was held on 27.1.2004, Annexure 5, in  which   the   representatives   of   the   management   and   the   petitioners  participated before the Joint Labour Commissioner, Jharkhand. A stand  was   taken   by   the   respondent­DVC   that   since   27.3.1998   there   are   no  contractors running the said canteen and the canteen is being run in an  ad   hoc   manner   through   the   existing   canteen   workmen   under   the  control of HRD Deportment of CTPS. On such stand being taken by the  respondent­DVC before the Joint Labour Commissioner, Jharkhand, the  Joint   Labour   Commissioner   directed   that   the   management   should  provide wages of group­D employees to the petitioners within ten days  and within two months the services of the petitioners working in the  canteen   of   the   CTPS   should   be   regularized,   failing   which   the  respondents would be answerable in the contempt petition filed by the  workmen   against   the   management   of   DVC.   On   their   representation  again   to   implement   the   said   order   before   the   management   of   DVC,  Annexure 7 has been issued taking a stand that on account of of the  order of status quo passed in CWJC No.3096/1999 dated 15.6.2001, the  DVC has been directed to maintain status quo so far as the continuance  of the workmen of the canteen is concerned till final decision is taken  one way or other.

5. Learned counsel for the petitioner in the back ground of  the aforesaid facts submits that these petitioners have been working as  employees   under   the   management   of   DVC   through   the   HRD  Department since 1998. Therefore, they are entitled for similar pay as  group D employees under the DTPS, which is being denied to them. It  is   further   stated   that   for   all   practical   purposes   the   petitioners   are  employees   of   CTPS   since   the   provident   fund   deductions   are   being  made by them. Their salary is also being reimbursed by the respondent­ DVC, which is also exercising discipline, control and supervision over  4. them in view of the liberty granted earlier by the learned Single Judge of  this   Court   in   the   judgment   passed   in   CWJC   No.3096/1999.   It   is  submitted that since all the respondents had categorically taken a stand  before the Joint Labour Commissioner that no contractor is running the  canteen since 27.3.1998, the State Government instead of issuing any  notification   under   the   provisions   of   the   Contract   Labour   Regulation  and Abolition Act,1970, passed an order for their regularization in view  of the direction passed by this Court earlier in CWJC No.3096/1999. In  such   circumstances,   learned   senior   counsel   for   the   petitioners  summited that these petitioners are fully entitled to be regularized in  the   employment   of   CTPS   under   the   DVC   and   also   entitled   to   claim  similar benefit as Group D employees, if not from 1980 then from 27th  March,1998 when they have been under the supervision and control of  the HRD Department of CTPS.

6. Learned counsel for the respondents, on the other hand,  submits   that   the   settlement   of   18.8.1980   was   a   mutual   arrangement  between   the   contractor,   petitioners'   representatives   and   petitioners,  who were the canteen workers under the contractor in presence of the  Assistant   Labor   Commissioner,   Dhanbad.   He   submits   that   the  management   was   not   a   party   to   that.   It   is   further   submitted   on   his  behalf,   by   referring   to   Annexure   2   i.e.   an   order   passed   in   CWJC  No.3096/1999, that a specific stand was taken by the respondent­DVC  in   the   said   case   that   if     the   competent   authority   i.e.   the   Central  Government issues any notification under Section 10 of the Act and the  matter is being referred to them, the DVC would have no objection. In  such   circumstances,   the   matter   was   disposed   of   with   liberty   to   the  petitioners   to   approach   the   competent   authority   of   the   Central  Government with a direction to decide the dispute on receipt of such  application and on verification of all the relevant materials.

7. Counsel for the respondent­DVC Mr. Jerath further  5. submits   that   the   canteen   staff   of   DTPS   were   treated   as   regular  employees   by   abolition   of   contract   system   by   Notification   dated  22.12.1995 within the period 1997 to 2001 and they have become direct  employees of DTPS. These petitioners, who are canteen workers under  CTPS, a totally different establishment, cannot seek equation with the  canteen   workers   of  DTPS  unless   the   appropriate   Government   issues  such notification prohibiting the use of contract labour under Section  10(1) of the Act of 1970. Learned counsel, while relying upon Annexures  C, D, E, F and G to the supplementary counter affidavit filed on 10th  April,   2012,   submits   that   the   circumstances   in   which   the   ad   hoc  arrangement was made to run the canteen from March,1998   are well  explained in the aforesaid documents brought on record. He submits  that the contractor suddenly left the canteen and stopped giving his  services to the canteen. On such eventuality, vide Annexure C to the  supplementary counter affidavit dated 28th March, 1998, the canteen  workers volunteered to work and run the canteen and also requested  for certain payments and other food articles so that the services of the  canteen can be continued as it was done earlier. In such circumstances,  a   committee   was   constituted   by   the   CTPS   on   18th   April,   1998  comprising   of   members   of   the   management   in   which   it   was   clearly  resolved   that   the   canteen   would   be   run   through   existing   canteen  workers   and   expenses   towards   the   salary,   purchase   of   coal/fuel   and  reimbursement against the supply of tiffin and food to the contractor  workers will be paid on the presentation of the bill by the leader of the  canteen   contractor   workers   to   the   Secretary   of   the   committee.  This  arrangement was made only on adhoc basis in order to avoid violation  of   the   provisions   under   the   Factories   Act.   Local   tenders   were   being  floated for inviting applications from the interested contractors to run  the canteen, where­after the award for work for running the canteen  were be given to the successful tenderer. In such circumstances, it is  6. submitted   that   the   canteen   workers   also   authorized   some   canteen  workers   as   Coordinator   to   work   on   a   monthly   rotation   basis   for  preparation   of   different   types   of   bills   relating   to   the   canteen   and  canteen   workers   as   well   as   to   draw   the   same   for  disbursement/payment   of   the   same   amongst   the   workers   vide  Annexure E, an arrangement dated 21st May, 1998. Annexure F dated  5th May, 1998 is also to the effect that the management had made an  arrangement   on   adhoc   basis   of   the   existing   canteen   workers   under  overall supervision of the CTPS till finalization of contract. Annexure G  is to the effect that the payment of wages, fringe benefit, food and tiffin  and   cost   of   coal   placed   by   the   canteen   workers   through   the  coordinators,  were being reimbursed in the manner indicated therein. 

8. In   such   circumstances,   learned   counsel   for   the  respondent­DVC   submits   that   the   aforesaid   arrangement   to   run   the  canteen, which is a mandatory requirement under the Factories Act,  does not act in itself making management of the CTPS as employer of  the petitioners, who were canteen workers. In support of his aforesaid  submission,   he   has   relied   upon   the   judgment   of   Hon'ble   Supreme  Court   reported   in   the   case   of  Haldia   Refinery   Canteen   Employees  Union Vs. Indian Oil Corporation, reported in 2005 (5) S.C.C. 51 at  para   14  to   18.  Learned  counsel  for   the  respondent­DVC has  further  submitted  that  in the   circumstances,   which   have  been  explained   on  their   part,   these   petitioners   have   even   been   working   through  contractors prior to March, 1998 and, thereafter, they have themselves  started running the canteen in the manner of contractor through the  adhoc arrangement arrived at on their own request when the earlier  contractor   left   the   work.   He   submits   that   in   such   circumstances,  Annexure­5, which has  been relied upon by the petitioners, cannot be  held to mean that the State Government had the authority to  regularize  these petitioners on such disputed question of facts which could only  7. be determined by an industrial adjudicator in a proper proceeding in a  duly constituted reference case. In support of the aforesaid submission,  he further relied upon the judgment in the case of State of Karnataka  Vs.     KGSD   Canteen   Employees'   Welfare   Association,     reported   in  (2006) 1 S.C.C. 567 at para 7, 32, 35, 36, 43, 45 and 49. It is submitted  that   the   canteen   workers   on   their   own     cannot   claim   regularisation  unless   the   disputed   questions   of   fact   are   determined   in   a   proper  proceeding before the Industrial Court. It is not proper for this Court  under Article 226 of the Constitution of India to direct regularisation of  such employees where such disputed questions of fact are involved. It is  further submitted that the question whether the activity of running the  canteen  comes  within  the  category  of  prohibited   contract  could     be  determined through a proper procedure leading to the issuance of the  notification under Section 10(1) of the Act of 1970. Therefore, the Joint  Labour Commissioner of the State Government of Jharkhand could not  have   straightway   directed   regularisation   of   these   petitioners.   It   is  further submitted on their behalf that it is only a case of arrangement  carried out on an adhoc basis that deduction of provident fund or such  other   formalities   are   being   carried   out   which   in   any   case   does   not  amount to treating the management of  CTPS as the principal employer  of the canteen workers. 

9. The   learned   Senior   Counsel   appearing   on   behalf   of   the  petitioners in response has once again reiterated his submission that all  the attendant facts which have been brought on record in the instant  case   show   that   the   petitioners   are   the   employees   under   the  management of   CTPS under the DVC. Therefore, they should not be  denied the benefits of equal pay as being given to other employees in  Grade­D. Learned counsel for the petitioners' also once again reiterated  that the evidence of the provident fund deductions and the exercise of  disciplinary control over them as also payment of bonus, wages and  8. maintenance of attendance register etc show that these employees are  the workmen of the management of   CTPS under DVC. The judgment  relied   by   the   petitioners   in   the   case   of  Haldia   Refinery   Canteen  Employees Union Vs, Indian Oil Corporation Ltd.,  reported in (2005)  5 S.C.C. 51 is, therefore, distinguishable in the facts and circumstances  of the case. 

10. I have heard learned counsel for the parties at length and  gone through the relevant materials on record. 

11. These   petitioners   in   the   first   round   of   litigation   had  approached   this   Court   in   C.W.JC.   No.3096   of   1999   with   a   prayer   to  direct   the   respondents   to   provide   same   facilities   as   the   canteen  employees   of   DTPS   with   additional   prayer   to   abolish   the   contract  labour system in the canteen of  CTPS.

12. It appears that the respondents had taken a stand in the  said writ petition that in the case of  DTPS the workmen of the canteen  under   DTPS were regularized in view of notification dated 22.12.1995  issued   by   the   appropriate   Government   prohibiting   contract   labour  under the Act, 1970. In such circumstances, the canteen workers  in the  canteen run through  the contractor   of   DTPS, Durgapur were given  regular payment. The petitioners in such circumstances pressed their  prayer for directing the respondents to abolish the system of contract  labour and regularize the services of the canteen workers. The DVC also  submitted that if the competent authority issues any notification under  Section   10   of   the   Act   of   1970,   it   would   have   no   objection.   In   this  background,   the   writ   petition   was   disposed   of   with   liberty   to   the  petitioners   to   approach   the   competent   authority   i.e.   the   Central  Government with a direction to decide the dispute on receipt of such  application   and   verification   of   all   relevant   materials.   It   was   further  directed   that   the   Central   Government   shall   proceed   strictly   in  accordance with law and make endeavours to finalize the matter as  9. quickly as possible, preferably within six months. Till final decision is  taken   by   the   competent   authority   status   quo   with   regard   to   the  continuance of the employment of these petitioners was directed to be  maintained subject to any penal action as may be required to be taken  against them. However, in view of the judgment rendered in the case of  Steel   Authority   of   India   Limited   (supra)   the   petitioners   themselves  sought   a   modification   in   C.M.P.   No.128   of   2003.   It   was   allowed   by  substituting Government of Jharkhand in place of Central Government  in the direction passed in C.W.J.C. No.3096 of 1999(R) and it was held  that the Government of Jharkhand would be the competent authority  as per  earlier order. 

13. On   the   representation   of   the   petitioners   before   the  competent   authority   of   the   State   Government,   meetings   were   held  between management of DVC,   CTPS and the petitioners and it  was  brought   to   the   notice   of   the   Joint   Labour   Commissioner   by   the  Management that since 27th March, 1998 the contractor had stopped  doing the work and the work of the canteen was being run in an adhoc  manner through the existing employees under the supervision of HRD  Department   of     CTPS.   In   this   background,   the   Joint   Labour  Commissioner   had   directed   that   management   of   the   respondent­ Corporation to pay the wages of Group­D to these petitioners and to  regularize these petitioners within a period of two months. 

14. The respondents as per their stand taken in the present  writ   petition   have   submitted   that   the   petitioners'   are   running   the  canteen   on   adhoc   arrangement     on   their   own   request   after   the  contractors had left the work. In support of the aforesaid submission,  the   documents   contained   in   Annexures   C   and   D   have   been   shown  where a managing committee to run the canteen had been constituted.  It has also been indicated that the said adhoc arrangement would be  continued till the contractor is appointed with a view to avoid penal  10. action under the provisions of Factories Act as it is a mandatory legal  requirement to run a canteen. The petitioners on the other hand have  taken a stand that the respondents are carrying out deductions of the  provident fund amount from the wages paid to them inclusive of their  dearness   allowance,   etc   which   are   also   being   reimbursed   by   the  management of CTPS. 

15. In   the   background   of   these   facts,   therefore,   the   issue,  which was raised in the original cause of action, for which petitioners  had moved this Court, was that  the management had been running the  canteen   through   the   contract   labourers   which   should   be   abolished.  Therefore, for treating them at par with those of the canteen workers of  DTPS, a statutory notification under Section 10(1) of the Act of 1970  was   required   to   be   issued   by   the   State   Government.   Learned   Single  Judge   of   this   Court   in   such   circumstances,   gave   liberty   to   the  petitioners to approach the competent authority which was directed to  decide the dispute on their application after verification of all materials  relevant.   In   such   circumstances,   representations   were   made   by   the  petitioners before the statutory authority/appropriate Government of  Jharkhand.   It   was   brought   to   the   notice   of   the   Joint   Labour  Commissioner   by   the   Management   that   the   contractor   had   stopped  doing   the   work   from   March,   1998.  The   Joint   Labour   Commissioner  proceeded to issue direction that since the contractor was no longer  running the canteen and the management of CTPS was running  the  same which is in the nature of perennial work, therefore, it should pay  Group­D   wages   to   the   petitioners   and   regularise   them   within   two  months. 

16. In   the   background   of   the   statutory   framework   provided  under the Act of 1970, the role of the competent authority/appropriate  Government is to arrive at a decision through proper procedure under  the Act of 1970 in the matter of issuance of prohibition notification  11. under Section 10(1) of the Act of 1970. The Joint Labour Commissioner  may   have   found   that   the   question   no   longer   was   relevant   for  determination   as   the   contractor   had   stopped   doing   the   work   for  running the canteen. However, the Joint Labour Commissioner acting  as an appropriate authority under the Act of 1970 would not have acted  as an industrial adjudicator to direct regularisation of the services of  the   petitioners.   This   role   was   squarely   within   the   domain   of  adjudicating body where either a reference seeking regularisation could  have   been   made   at   the   instance   of   the   aggrieved   workmen   or   if   a  prohibition notification was issued under   Section 10(1) of the Act of  1970, then also the petitioners were required to seek a reference before  the industrial adjudicator to determine the question whether the work  itself was carried out through a contractor by the principal employer as  a camouflage or a ruse. The Labour Court in such an event was required  to     determine   the   questions   of   fact   as   has   been   mandated   by   the  judgment of the Hon'ble Supreme Court in the case of Steel Authority  of India Limited Vs. National Union Waterfront Workers, reported in  (2001) 7 S.C.C. 1. In either case, the Joint Labour Commissioner did not  have  the jurisdiction to direct regularisation of these petitioners in the  management of CTPS. 

17. The   judgment   of   the   learned   Single   Judge   of   this   Court  passed earlier in the case of the petitioners also had proceeded on the  premise   that   if   a   notification   is   issued   by   the   competent   authority  under C.L.R. Act, 1970, then the consequential course would be open to  the   petitioners.   As   a   matter   of   fact   the   SAIL   judgment   (supra)   was  delivered   on   30.8.2001   before   the   learned   Single   Judge   delivered   the  judgment   dated   15th   June,   2001   in   CWJC   No.3096   of   1999.   This  judgment   was   later   on   modified   in   view   of   the   judgment     in   SAIL  (supra)   vide   order   dated   6.5.2003   in   CMP   No.128/2003   filed   by   the  petitioners. The DVC had also submitted that they would have  no  12. objection if the competent authority issues a notification under Section  10 of the Act of 1970 when the  matter is referred thereto. The learned  Single Judge of this Court , while disposing of the matter, therefore, had  directed the Central Government to proceed strictly in accordance with  law and make endeavour to ensure  finalization of the matter within the  stipulated time. In the aforesaid background, as indicated herein above,  the competent authority in the circumstances could have either issued  any notification under Section 10(1) of the Act of 1970 or would have  refused to do so. In any case, the competent authority on his own could  not have directed regularisation of the petitioners. 

18. This view is also supported by the judgment relied upon  by the respondents rendered by the Hon'ble Supreme Court in the case  of  State   of   Karnataka   Vs.   KGSD   Canteen   Employees'   Welfare  Association, reported in (2006) 1 S.C.C. 567 at para 32, 43, 45 and 49 of  the said judgment. The Hon'ble Supreme Court while dealing  with the  question   of   status   of   employees   of   the   canteen   workers   in   the   said  judgment dealt  at para 32  came to the conclusion that  the industrial  adjudicator was required to apply the relevant case law laid down by  the Apex   Court to come to a conclusion relating to the status of the  canteen workers. Further, on the question of maintainability of a writ  petition where questions of fact were disputed by either party as in the  present case, the Hon'ble Supreme Court in the same judgment after  discussing   the   case   law   had   at   para   43   opined   that   in   such  circumstances the recourse to the writ remedy was not apposite. Even  on   the   question   of   regularisation,   the   judgment   referred   to   supra  proceeds to hold that the High Court in exercise of Article 226 of the  Constitution   of   India   is   not   empowered   to     either   frame   any   such  scheme or direct the authorities to frame such a scheme to regularize  the services of adhoc employees or daily wage employees who had not  been appointed in terms of the rules framed under statute or under the  13. proviso to Article 309 of the Constitution of India. 

19. In   the   aforesaid     background   of   law   well   settled   and  reiterated time and again   and also in the background of the present  case,   the   petitioners'   could   seek   issuance   of   a   notification   under  Section 10(1) of the Act of 1970 by moving appropriate Government. In  such   circumstances,   the   appropriate   Government   would   have   to  proceed to issue such notification or refuse to do so after following the  procedure law under the Act of 1970   through the committee and the  advisory Board constituted for the said purpose. If such a situation was  not   warranted,   the   petitioners   may   have   a   remedy   by   raising   an  industrial dispute and seek reference from the appropriate Government  before the industrial adjudicator for regularisation of their services on  the terms and the facts and circumstances on which they rely. In such  disputed questions of fact relating to the parties, more so when these  petitioners had neither initially  been appointed by the respondents or  were subsequently engaged by the respondents on a permanent basis  against vacant sanctioned posts,   in the writ jurisdiction,   this Court  should not exercise its discretionary power to direct their regularisation  or even direct the respondents to pay salary at par with the regularly  engaged employees. 

20. Therefore, this Court does not find any reason to interfere  in   the   writ   petition   which   is   accordingly   dismissed.   However,   the  petitioners may have an alternative remedy, if they so choose, to seek  redressal   of   their   grievances   in   accordance   with   law.  The   Contempt  Case No.977 of 2012 is also accordingly dismissed and the proceedings  are dropped. 

(Aparesh Kumar Singh, J. ) Jharkhand High Court, Ranchi, The 11th July,2013 Pandey /NAFR