MISHRA DHATU NIGAM LTD. ETC. ETC. versus M. VENKATAIAH AND ORS. ETC. ETC.

Citation: [2003] SUPP. 2 S.C.R. 411 · Decided: 13-08-2003 · Supreme Court of India · Bench: S. RAJENDRA BABU · Disposal: Dismissed
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Judgment (excerpt)

MISHRA DHA TU NIGAM LTD. ETC. ETC. 
A 
v. 
M. VEN KAT AIAH AND ORS. ETC. ETC. 
AUGUST 13, 2003 
[S.RAJENDRA BABU AND DORAISWAMY RAJU, JJ.] 
B 
Labour Laws: 
Factories Act, 1948 and Rules thereunder/Contract Labour (Regulation 
and Abolition) Act, 1970; 
c 
Regularization of services of Canteen Workers as employees of the 
company-Writ of Mandamus filed by workers-Allowed by the High Court-
On appeal, held, since employer-company, in discharge of its statutory 
', 
obligation of maintaining a canteen, employed contract labour, they would be 
D 
the employees of the company even if they are employed by a Contractor 
appointed by the Company. 
Respondents-Canteen workers had filed writ petitions for 
' 
regularization of their services as employees of the company. The Division 
Bench of the High Court allowed the writ petition. Hence the present E 
appeals. 
Dismissing the appeals, the Court 
HELD: 1.1. The appellants indisputably are obliged to run the 
respective canteens in their establishments on account of the obligation 
cast upon them under the mandatory provisions of the Factories Act, and F 
the Rules made thereunder. (415-F, G) 
1.2. The Constitution Bench in *Steel Authority of India case held that 
where in discharge of a statutory obligation of maintaining a canteen in 
an establishment the principal employer availed the services of a 
contractor, the contract labour would indeed be the employees of the G 
-
principal employer and that such cases do not relate to or depend upon 
abolition of contract labour. (415-D, E) 
*Steel Authority of India Ltd. and Ors. v. National Union Waterfront 
Workers and Ors., (2001) 7 SCC 1, followed. 
411 
H 
A 
B 
412 
SUPREME COURT REPORTS [2003) SUPP. 2 S.C.R. 
MMR. khan and Ors. v. Union of India and Ors., (1990) Supp. SCC 
191; VST Industries Ltd v. VST Industries Workers' Union and Anr., (2001) 
1 SCC 298 and National Thermal Power Corporation Ltd v. Karri Pothuraju 
and Ors., (20031 7 SCC 384, relied on. 
CIVIL APPEL LA TE JURISDICTION : Civil Appeal No. 5992 of 1997. 
From the Judgment and Order dated 24.1.1997 of the Andhra Pradesh 
High Court in W.P. No. 18722 of 1996. 
WITH 
C 
C.A. Nos. 3159, 5991 and 6532 of 1997. 
N.B. Shetye, G.B. Pai, S.K. Dholakia, A.T.M. Sampath, V. Balaji, Sanjay 
Kapur and Rajiv Kapur for the Appellants. 
· 
Hardev Singh, L. Nageswara Rao, Ms. Madhu Moolchandani, R. 
D Santhanakrishnan, G. Ramakrishna Prasad, K.C. Sudarshan, Jayanth M. Raj, 
P.P. Singh and S. Udaya Kumar Sagar for the Respondents. 
E 
The Judgment of the Court was delivered by 
.RAJENDRA BABU, J. Civil Appeal No. 5992 of 1997: 
The above appeal has been filed by the 1st respondent in W.P.No. 
18722 of 1996 before the High Court of Andhra Pradesh, which, in turn, 
came to be filed by a group of workers seeking for a Writ of Mandamus 
declaring the action of the appellant in not absorbing them as its regular 
employees and not paying the pay and other benefits on par with the regular 
F employees of the appellant-company is illegal and arbitrary, and to direct the 
appellant-company: (a) to absrob the workers as its regular emplo~1ees; (b) to 
prescribe the appropriate scale of pay and other service conditions for them 
from the date of their initial appointment together with arrears of salary. A 
Division Bench of the High Court by a common order dated 24.1.97 in this 
G and two other writ petitions passed the following order: 
H 
"The above cases, it is stated, are covered by the judgment in writ 
appeal No. 385 of 1996 dated 27 .11.96. Let the petitions accordingly 
be disposed of and directions issued." 
Hence, this appeal. 
MISHRADHATUNIGAM LTD. v. M. VENKATAIAH [RAJENDRA BABU, J.] 
413 
Civil Appeal No.3159 of 1997: 
A 
The above appeal has been filed by the !st respondent in W.P. No. 
10967 of 1988, who was the appellant in W.A. No. 1493 of 1996 before the 
High Court of Andhra Pradesh. In the Writ Petition, the Canteen Employees 
Union of B.H.P.V., and worker in the canteen, who was also the General 
Secretary of the Union at that time, prayed for an appropriate direction to B 
declare the action of the appellant in not regularizing the services of the 
workers in the canteen and paying them wages on par with other permanent 
workers of the appellant and withdrawing B.H.P.V. dispensary facilities to 
them, is arbitrary, unreasonable and violative of Articles 14 and 21 of the 
Constitution of India, and direct the appellant to accord those reliefs. A C 
learned Single
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