LexAIR INDIA STATUTORY CORPORATION versus UNITED LABOUR UNION AND ORS.
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'· AIR INDIA STATUTORY CORPORATION A v. UNITED LABOUR UNION AND ORS. DECEMBER 6, 1996 [K. RAMASWAMY, B.L. HANSARIA AND S.B. MAJMUDAR, Jl] B Contract Labour (Regulation and Abolition) Act, 1970: Sections 2(1)(a) (As it stood before and after Amendment Act 14 of 1986), 2( 1)(b }, 8, 9, 10, 12, 14, and 16 to 19, 20, 21, 23 to 25. C Contract Labour (Regulation and Abolition) Central Rules, 1971 Rules 18(3), 21 to 25, 75, 77 and 78. ''Appropriate Government''-Meaning of-Establishment pertaining to an industry carried on by Central Government-i'linciples for determinatiori D of appropriate Government laid down-Appellant initially a statutory autho1ity later reconstituted as a Company-fl eld Central Government was appropriate Government before and after 1986 Amendment. Contract Labour-Abolition of-Effect-Held on abolition Contractor stands removed from Regulation under the Act, and direct relationship of E employer and employee is created between employer and workmen-Employee is obliged to absorb the workmen-On employer's failure to do so, High Court can give directions under Article 226-0bject of the Act explained.; Industrial Disputes Act, 1947: Section 10. Reference-Contract Labour-Abo/itiOn of-Employer is obliged to ab- sorb the workers-In such a case reference of dispute for absorption is not necessary. Constitution of India, 1950 : Articles 14 and 21-Right to work-Not a fundamental light-But after en1ploynient a person 1nust be dealt with assuring hini equality. F G Article 38-Preamble--Social Justice-Relevance of for workmen. H 579 580 SUPREME COURT REPORTS [1996] SUPP. 9 S.C.R. A Article 226-High Courf--Power to issue directions for absorption of-Contract Labour-Upheld. Judicial Review-Basic structure of Constitution-High Court has con- stitutional duty to enforce law by appropriate directions. B Public Law-Private /aw-Distinction between Constitution-inter- pretation of-Principles for. Words and Phrases : C Regulation-Meaning of-Contract Labour (Regulation and Abolition) Act, 1970. The appellant Corporation, initially a statutory authority, was sub- sequently reconstituted as a Company under the Companies Act, 1956. It engaged, as contract labour, the respondent union's members, for sweep- D ing, clearing, dusting and watching of the buildings owned and occupied by it. Subsequent to the coming into force of the Contract Labour (Regula- tion and Abolition) Act, 1970 the appellant obtained a certificate of Registration from Regional Labour Commissioner (Central) under the Act. Thereafter by a notification dated December 9, 1976 the Central Government prohibited employment of contact labour for sweeping, clean- E ing, dusting and watching of buildings owned or occupied by the estab- lishments in respect of which the appropriate Government under the Act was the Central . Government. By a letter dated January 20, 1972, the Regional Labour Commissioner (Central), Bombay informed the appel· lant that the State Government was the appropriate Government under F the Act. Therefore, by proceedings dated May 22, 1973 the Regional Labour Commissioner (Central) bad revoked the registration. By Amendment Act 46 of 1982, the Industrial Disputes Act, 1947 was made applicable to the appellant and was brought on statute book specifying the appellant as one of the industries in relation to which the Central Government is the appropriate Government and the appellant has been carrying on its busi- G ness "by or under its authority" with effect from August 21, 1982. The Act was amended bringing within its ambit the Central Government as ap- propriate Government by Amendment Act 14 of 1986 with effect from January 28, 1986. Since the appellant did not abolish the contract system and failed to e,nforce the notification of the Government of India dated H December 9, 1976, the respondents filed writ petition for directions to the ' - ' ' J AIR INDIASTATUTORY CORPN. v. UNION LABOUR UNION 581 B appellant to enforce forthwith the notification abolishing the contract A labour system in the aforesaid services and to absorb all the employees doing cleaning, sweeping, dusting, washing and watching of the buildings owned or occupied by the appellant-establishment, with effect from the respective dates of their joining as contract Labour in the appellant's establishment with all consequential rights/benefits, monetary or other- wise. The writ petition was allowed by a single
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