LexM/S. DELHI INTERNATIONAL AIRPORT PVT. LTD. versus UNION OF INDIA & ORS.
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[2011) 13 (ADDL.) S.C.R. 1115 M/S. DELHI INTERNATIONAL AIRPORT PVT. LTD. v. UNION OF INDIA & ORS. (Civil Appeal No. 7872 of 2011 etc.) SEPTEMBER 15, 2011 [DALVEER BHANDARI AND DEEPAK VERMA, JJ.] Contract Labour (Regulation and Abolition) Act, 1970 - A B ss. 10(1) and 12A - Issuance of Notification by the Central Government u/s. 10 (1) prohibiting employment of contract C labour of trolley retrievals in the establishment of the Airporl Authority of India (AA/) at the Indira Gandhi International Airporl and Domestic Airporl at Delhi - Delhi International Airporl Private Limited (DIAL), private underlaking coming into existence after the issuance of the said Notification, taking D over the Airporls (Domestic and International) - Applicability of the said Notification to DIAL - Appropriate government for DIAL under the CLRAA and ID Act - Held: Central Government is the appropriate government for DIAL and AA/ under the CLRAA and ID Act - Entire functioning of DIAL is E fully dependent on the grant of permission by the Central Government - Thus, DIAL operates and functions under the authority of the Central Government - Central Government's notification was _issued before Operation, Management, Development and Agreement (OMDA) was signed, by virlue F of which DIAL stepped into the shoes of AA/ - DIAL expressly assumed the 'rights and obligations associated with the operation and management of the airporl' through OMDA - DIAL was transferred all of AAf's responsibilities at the airporls except cerlain reserved functions which means that DIAL only G had incomplete control, thus, DIAL was nothing more than a contractor for AA/ establishment and was not a principal employer of an independent establishment - Thus, the said Notification, directed at AA/ establishment, was equally 1115 H 1116 SUPREME COURT REPORTS [2011] 13 (ADDL.) S.C.R. A binding on DIAL under the CLRAA - DIAL to abolish all contract labour as per the terms of the notification - In the interest of justice, DIAL directed to pay Rupees five lacs to each of the erstwhile workers of DIAL who were working for them as trolley retrievers till 2003 - Industrial Disputes Act, B 1947. 136 workers were employed by the contractor TOI Company to do the work of trolley retrieving at the Domestic and at the International Airport at Delhi in the year 1992. The workmen approached the Contract C Labour Court seeking abolition of contract labour system and their absorption as regular employees. On 26th July 2004, the Central Government issued a Notification abolishing the contract labour system. Airports Authority of India (AAI) which had come into force challenged the D notification. The High Court held that the present proceedings could not be proceeded with till the matter was resolved by the High Powered Committee (HPC) and as such the matter went to the HPC and the Notification was not given effect to. Meanwhile, the said 136 workers E were removed from service in the year 2003 as the contract of TOI Company tame to an end and a new contractor 'SH' came in its place. Thereafter, from 4th April 2006, a new private entity, Delhi International Airport Private Limited (DIAL) took over the Airports (Domestic F and International). 136 workers filed a writ petition praying for their absorption in service as regular employees and for implementation of the Notification dated 26th July, 2004. The Single Judge of the High Court dismissed the writ petition holding that the establishment of AAI is no G longer in existence and has changed and as such, the Notification dated 26th July, 2004 cannot be applied to the new entity DIAL and the appropriate government shall have to issue a fresh Notification. Indira Gandhi International Airport TOI Karamchari Union and Union of H DELHI INTERNATIONAL AIRPORT PVT. LTD. v. 1117 UNION OF INDIA & ORS. India filed separate LPA's. During pendency of the LPA's A the Chief Labour Commissioner, Government of India passed an order holding that the appropriate government for DIAL is the Central Government and the documents and file relating to DIAL were sent to the Central Government. DIAL filed a writ petition. AAI filed another B writ petition challenging the said notification. The Division Bench of the High Court held that in relation to airport, it is the Central Government which is the appropriate government for the purpose of CLRAA; and that DIAL is equally bound by
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