NATIONAL THERMAL POWER CORPORATION LTD. versus KARRI POTHURAJU AND ORS.

Citation: [2003] SUPP. 2 S.C.R. 426 · Decided: 13-08-2003 · Supreme Court of India · Bench: S. RAJENDRA BABU · Disposal: Dismissed
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Judgment (excerpt)

A 
B 
·C 
NATIONAL THERMAL POWER CORPORATION LTD. 
v. 
KARRI POTHURAJU AND ORS. 
AUSJUST 13, 2003 
[S. RAJENDRA BABU AND DORAISWAMY RAJU, JJ.] 
Industrial Laws: 
Factories Act, 1948-Section 46-Regularisation of service-Statutory 
obligation on employer to provide and maintain canteen for benefit of 
employees of the unit-Canteen being run through contractor engaged from 
time 'to time-Out of 2300 employees 54 working in canteen-Workers of 
canteen claiming regularisation of service-Single judge rejecting the claim-
However, Division Bench of High Court allowing the claim to those who are 
D fit to continue in employment-Justification of-Held: In view of the statutory 
obligation on employer to maintain canteen the order of Division Bench of 
High Court is justified 
In view of the discharge of the statutory obligation under section 46 of 
the Factories Act, 1948 appellant-corporation, a Public Sector Undertaking 
E started a canteen for the benefit of the employees of their unit, through a 
contractor. It was run through contractors engaged from time to time. At the 
relevant time, out of2300 employees, about 54 persons were working in the 
canteen in various capacities. Respondent-workers filed writ petition seeking 
for a direction to the appellant to regularise their services with attendant 
F benefits. Single Judge of the High Court dismissed the writ petition. However, 
Division Bench allowed the appeal directing that the services of the workers 
who are fit to continue in employment be regularised. Hence the present 
appeal 
Appellant contended that the Division Bench of High Court erred in 
G reversing the decision of the Single Judge; and that the respondent-workers, 
engaged by the contractor in the canteen cannot claim to be part of the 
appellant's establishment and claim for regularisation of their services. 
Dismissing the appeal, the Court 
H 
426 
NATIONAL THERMALPOWERCORPN. LTD. 1·. KARRIPOTHURAJU [RAJENDRABABU,J.) 427 
HELD: Appellant-corporation who had a statuary obligation under A 
section 46 of the Factories Act, 1948 to run the canteen cannot contend that 
workers engaged in the canteen even though by contractor cannot claim to 
be part of appellant's establishment and claim for regularisation of their 
services. Also the Division Bench of High Court gave liberty to the appellant 
to consider the claims of the workers as to whether they satisfy the B 
requirements and whether they are otherwise unfit for confirmations. 
Therefore, the challenge to the decision of the Division Bench of High Court 
... 
cannot be countenanced, as either legitimate or valid one. (431-E, F] 
Indian Petrochemicals Corporation Ltd. and Anr. v. Shramik Sena and 
Ors. (1999) 6 SCC 439; Indian Overseas Bankv. 1.0.B. StajJCanteen Workers' c 
Union and Anr., [2000) 4 SCC 245; Steel Authority of India Ltd. and Ors. v. 
National Union Water.front Workers & Others [2001] 7 SCC 1; VST Industries 
Ltd. v. VST Industries Workers' Union and Anr., (2001) 1 SCC 298 and The 
Saraspur Mills Co. Ltd v. Raman/al Chimanlal and Ors., (1974] 3 SCC 66, 
referred to. 
D 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 5990 of 1997. 
From the Judgment and Order dated 27 .11.96 of the Andhra Pradesh 
'r 
High Court in W.A. No. 385 of 1996. 
V.R. Reddy, N.B. Shetye, Rajendra Dhawan, Ms.' Meera Mathur and E 
A.T.M. Sampath for the Appellant. 
Hardev Singh, L. Nageswara Rao, Ms. Madhu Moolchandani, R. 
Santhanakrishnan, G. Ramakrishna Prasad, K.C. Sudarshan, Jayanth M. 
Raj, P.P. Singh and S. Udaya Kumar Sagar and T.G. Narayanan Nair for the F 
Respondents. 
The Judgment of the Court was delivered by 
.. 
RAJENDRA BABU, J. The above appeal has been filed against the 
order dated 27 .11.96 of a Division Bench of the Andhra Pradesh High Court G 
in Writ Appeal No.385 of 1996, whereunder the Division Bench, while setting 
aside the order of the learned Single Judge in Writ Petition No.3793of1992, 
allowed the claims in the writ petition to the· extent and subject to the 
conditions specified in the order. The appellant, National Thermal Power 
Corporation Ltd., Ramagundam Super Thermal Power Station, is a Public 
Sector Undertaking of the Government of India. It started a canteen in the H 
428 
SUPREME COURT REPORTS [2003] SUPP. 2 S.C.R. 
A year 1983 for the benefit of the employees of their unit, through a contractor 
and from. that time onwards it was being run through contractors engaged 
from time to time. The total.number of employees, at the
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