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1. The petitioner in this writ petition has sought for quashing the award dated July 20, 1987 published in the Gazette dated August 22, 1987 produced at Annexure-A.

2. The brief facts of the case are as under:-

The VISL is a Company registered under the Companies Act It has set up its factory for manufacturing of Iron and Steel Products, at Bhadravathi. It has taken some mines on lease from the State Government. One such mine is at Bilikllabetta and it is known as Bilikllabetta Quartz Mines (hereinafter referred as B.B. Mines).

4. The Counsel for the petitioner i.e. VISL, contended that the mining operations was done by the contractors engaged for specific period and it is they who engaged the labourers and that there is no employer and employee relationship between themselves and they were engaged by one T. Puttaiah and Chennakeshava and their contract was for two years and due to 85% power cut for considerable time the ferro cilicon plant of Bhadravathi was shut down thus resulting in huge piling of the Quartz. The matter was viewed by the VISL Management and after careful consideration it was decided to close down the Mining Operation of B.B Mines, though the Management had the right to terminate the contract by giving 15 days notice even during the contract period, the closure came into effect at the end of the contract i.e. March 31, 1983. It is further contended that the I party has no locus standi to raise the dispute. The Management accepted to deduct certain amount from the bills of the contractors every month and pay a certain part of wages payable by the contractors directly to the workers. It was done to safeguard the interest of contract workers because of statutory obligation imposed on the principal employer under Section 21 of the Contract Labour (Regulation and Abolition) Act, 1970. It is also averred that the small portion of the monthly bills of the contractor was withheld and kept as deposits. If the contractors were to discharge their obligation the same was refunded to them. It is the case of the VISL that it had no control over the working of the contract workers and the contractors and workers used to take instructions from the officials of the Company regarding technical aspects. It is the specific case of the VISL that the responsibility of employing the workers, supervision, control and taking disciplinary action vested with the contractors. The contractors had given notice to these workers on February 24, 1983 about the expiry of the contract on March 31, 1983. Since they had no ready cash, they requested the management to pay the retrenchment compensation and adjust the amount from the bills. The VISL therefore agreed to pay the retrenchment compensation at Labour Court, without prejudice to the right, namely that VISL is not liable to pay the retrenchment compensation. It is also contended that it is not a case of retrenchment but it is a case of closure for termination of the contract and that the closure is real and bona fide. The dispute is deemed to have been lapsed by virtue of compromise award in Reference No. 9/74 and thus the alleged employer and employee relationship came to an end. The VISL had paid gratuity, P.P., Maternity benefit and Workmen' Compensation and it has vicarious liability under the statute as principal employer and further contended that the provisions of Sections 25(F) and (O) are not attracted.

5. In addition to the main points of dispute namely whether retrenchment of 185 workmen, mentioned in the Annexure to the order of reference, of Bilikellabetta Quartz Mines by the Management of Visveshwaraya Iron and Steel Limited, Bhadravathi and their contractors Sriyuths T.Puttaiah and Chennakeshava, with effect from April 1, 1983 is legal and justified, other additional issues were also framed. The VISL examined one witness and got marked Exhibits M1 to M15, and the workmen examined five witnesses and got marked Exhibits W-1 to W-44. The Tribunal after considering the entire material, both documentary and oral, placed before it, ordered reinstatement of workmen with full backwages and consequential benefits. It is this award passed by the Labour Court which is under challenge in this writ petition.