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INTERNATIONAL AIRPORT AUTHORITY OF INDIA versus INTERNATIONAL AIR CARGO WORKERS UNION & ANR.

Citation: [2009] 8 S.C.R. 1 · Decided: 13-04-2009 · Supreme Court of India · Bench: R.V. RAVEENDRAN · Disposal: Appeal(s) allowed

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Judgment (excerpt)

[2009] 8 S.C.R. 1 
INTERNATIONAL AIRPORT AUTHORITY OF INDIA 
A 
v. 
INTERNATIONAL A!R CARGO WORKERS' UNION & ANR. 
(Civil Appeal No. 2244 of 2002) 
APRIL 13, 2009 
D 
u 
[R.V. RAVEENDRAN AND LOKESHWAR 
~ 
SINGH PANTA, JJ.] 
Contract Labour Regulation and Abolition Act, 1970 - s. 
10 - Cargo handling work - Granted to a private company by c 
the Airport Authority- On cancellation of licence of the private 
company, employees thereof on ad hoc basis employed as 
casual workers with the Authority - Employees thereafter 
forming a Co-operative Society - Society entering into a 
-ยท 
contract bf contract labour with the Authority - On termination D 
of the contract, employees seeking their absorption with the 
Authority - Reference of industrial dispute as to whether the 
Authority was right in not absorbing the workers - Tribunal 
holding that the contract labour agreement between the 
Society and the Authority was a sham, nominal and E 
camouflage and there was violation of s. 9A of Industrial 
Disputes Act, 1947 -Award set aside by Single Judge - On 
appeal, the order of Single Judge set aside and the award of 
Tribunal upheld by Division Bench of High Court - On appeal 
held: The contract labour agreement was not a sham or F 
camouflage - There was no violation of s. 9A of Industrial 
Disputes Act - In absence of notification u/s. 10 prohibiting 
contract labour in operation of cargo handling work, 
employees not entitled to absorption - Industrial Disputes Act, 
1947 - s. 9A. 
G 
Constitution of India, 1950 - Article 226 - Writ jurisdiction 
- Interference with award of Industrial tribunal - Scope of -
Held: The award not to be interfered with in writ jurisdiction 
merely on the ground that material relied on by the tribunal 
1 
H 
2 
SUPREME COURT REPORTS 
[2009] 8 S.C.R. 
A was insufficient or not credible - However, when tribunal's 
finding is based on no evidence or irrelevant evidence, 
interference with the award is warranted - Jurisdiction - Writ 
jurisdiction. 
8 
Appellant-Authority established a cargo complex at 
Madras. Under an agreement, it granted a licence to a 
private company as its ground handling agent in respect 
of export, import and trans-shipment of cargo 
consignments. Appellant had no privity of contract, 
C obligation or responsibility towards the workers of the 
private company. 
When the appellant terminated the cargo handling 
contract of the private company with the intention of 
inviting fresh tenders, the workers of the private company 
D made an appeal to the appellant-Authority to provide 
them employment. They also filed a writ petition. 
Appellant-Authority unilaterally came forward with a 
scheme to mitigate the hardship of the workers and filed 
a memo stating to accommodate the workers except by 
E way of regular absorption, till such time regular 
arrangements made on contract basis through a Co-
operative Society. In view of the memo, the writ petition 
was dismissed. Consequently the workers formed a co-
operative society. Pending finalization of the contract 
F with the Society, appellant-Authority in terms of the memo 
started engaging some of the workers as casual labour 
on day to day basis depending upon actual requirements. 
Further, workers Union filed writ petition seeking ground 
handling work to the Society or to absorb the workers on 
G the permanent roll of the appellant-Authority. During 
pendency of the petition, an agreement was entered into 
between the Society and the appellant-Authority whereby 
Society agreed to provide 70 loaders/packers on a 
consolidated monthly payment. The petition was 
dismissed as withdrawn in view of the agreement. By a 
H 
.. 
INTERNATIONAL AIRPORT AUTHORITY OF INDIA v. INTERNATIONAL 
3 
AIR CARGO WORKERS' UNION & ANR. 
further agreement, it was agreed that apart from the A 
regular workers, additional workers would be provided 
for other miscellaneous porterage jobs. The agreement 
interalia provided that members of the Society would have 
no direct relationship with appellant-Authority; and that 
the Society would comply with the requirements of B 
Contract Labour (Regulation and Abolition) Act. The 
agreement was for a period upto 1.9.1987. A further fresh 
agreement was entered into for a further period of two 
years. Whยฃm the term of the agreement was coming to an 
end, respondent-Union and the Society filed writ petition c 
seeking service security to their 89 workers by treating 
them at par with regular employees of the Auth

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