Holding

The 1976 notification was withdrawn by the 1992 notification, never attained finality, and therefore the Steel Authority judgment does not apply; the workmen’s writ petitions are not maintainable.

Summary

The Food Corporation of India (FCI) had earlier been subject to a 1976 Central Government notification prohibiting the employment of contract labour for sweeping, cleaning, dusting and watching of its buildings. In 1992 the Central Government withdrew that prohibition, raising the question of whether the 1976 notification had ever attained finality and whether the Supreme Court’s decision in Steel Authority of India Ltd. (which overruled the earlier Air India judgment) applied to FCI’s various establishments. Several writ petitions were filed by workmen and unions seeking to enforce the 1976 notification or to claim rights as direct employees under the Steel Authority ruling. The Supreme Court held that because the 1976 notification was withdrawn by the 1992 notification, it never attained finality; consequently, the Steel Authority judgment does not apply and the workmen’s petitions are not maintainable. The Court allowed the appeals challenging certain High Court orders (Special Leave Petitions 22320‑22321 and 22335‑22336) and dismissed the other appeals, thereby disposing of all pending appeals.

Issues considered

The effect of the withdrawal of the 1976 notification on its finality and applicability.
Whether the Steel Authority of India Ltd. judgment (para 125(b)) applies to FCI’s establishments after the withdrawal.
Whether contract labourers become direct employees of the principal employer under the Air India and Steel Authority decisions.
The maintainability of writ petitions filed by workmen and unions under the Contract Labour (Regulation and Abolition) Act, 1970 and the Industrial Disputes Act, 1947.

Legislation cited

Contract Labour (Regulation and Abolition) Act, 1970s. 10(1), s. 10(2)
Industrial Disputes Act, 1947s. 25(h)

Subjects

contract labourabolitionnotification withdrawalappropriate governmentSteel Authority caseAir India caseindustrial disputewrit petitionfinality of notificationabsorption of contract labour

Judgment

[2008] 9 S. C.R. 549

'
~
)-
FOOD CORPORATION OF !NOIA & ANR. A
V.
PALA RAM & ORS.
(Civil Appeal Nos. 3641-42 of 2008)

MAY 16, 2008
B
[S.B. SINHA AND V.S. SIRPURAKAR, JJ.]
-)-
Labour Laws - Contract Labour - Abolition - Notification
by Central Government - Subsequently the Notification with-
drawn - Thereafter, again Central Government adopting the c
..
'\,
Notification without noticing the withdrawal thereof - Supreme
court by judgment in *Air India case held that after the issu-
ance of the above Notification contract labourers became di-
rect employees of the concerned management - By the judg-
ment in **Steel Authority case judgment in Air India case over-
0
- ..... ruled and the Notification quashed with prospective effect -
Action giving effect to the Notification, if already attained fi-
nality, was saved - High Court passing orders giving effect to
the Notification in respect of a particular unit - Subsequent
writ petitions by employees of other units seeking relief in view
of the judgments of the High Court - Allowed by High Court - E
Other writ petitions by employees Union and also the work-
men seeking protection under the Notification - Dismissed

. )'
by High Court- On appeal, held: The Notification having been
withdrawn, cannot be said to have attained finality and hence
not saved by Steel Authority case - High Court did not pose F
unto itself the question of applicability of the decision of High
Court in respect of one unit to other units- The writ petitions
filed by the employee Union as well as the employees were
not maintainable in the facts of the case - Contract Labour (
Regulation and Abolition) Act, 1970 - s. 10 (1) - Industrial G
-"(
Disputes Act, 1947 - s. 25 (h).
Appellant-Corporation maintained large number of
godowns in different parts of the country including States

549 H
550 SUPREME COURT REPORTS (2008] 9 S.C.R.

A of Punjab and Haryana. Government of India in exercise
of its power u/s 10 (1) of Contract Labour (Regulation and
Abolition) Act, 1970 issued a Notification No. S.O. No. 779
(E) dated 9.12.1976 prohibiting employment of contract
Labour. In Food Corporation of India workers' Union v. Food
B Corporation of India and Ors. 1985 (2) sec 294 decision was
taken as regards the appropriate Government for decid-
ing abolition of contract labour. Thereafter Central Gov-
ernment issued a Notification on 28.5.1992 stating that no
case for abolition of contract labour in respect of the jobs
c of sweeping, cleaning, dusting and watching of buildings
in the appellant-Corporation was made out. In *Air India
''
Statutory Corporation and Ors. v. United Labour Union and ·'
Ors. 1997 (9) sec 377 it was held that all the contract
labourers became direct employees of the respective man-
D agements after issuance of Notification dated 9.12.1976.
By the judgment in **Steel Authority of India Ltd. and ,
Ors. v. National Union Waterfront workers and Ors. 2001 (7)
sec 1 the judgment in Air India case was overruled and
the Notification dated 9.12.1976 was quashed with pro-
E spective effect.
Several writ petitions were filed before High Court.
In LPA No. 742/1993 Division Bench of High Court by or-
der dated 21. 7.1998 held that contract Labours in the de-
pots of the appellant-Corporation were entitled to the ben-
F efit of Air India case. '1

In another writ petition (469511999) High court opined
that Notification dated 9.12.1976 became final vis-a-vis the
establishments of appellant-Corporation in Sangrur Dis-
G trict and hence Steel Authority case did not apply to them.
Thereafter appellant-Corporation issued advertise-
ments for enrolment of agencies for provision of security r
coverage of its godownslcomplexes in Haryana and
Chandigarh. In the writ petitions (CWP Nos. 15484 of 2003;
H 16476 of 2003 and 16482 of 2003) challenging the same
FOOD CORPORATION OF INDIA & ANR. v. PALA 551
RAM & ORS.
)- Division Bench of High Court set aside the advertisements A
holding that the workmen were not covered by Steel Au-
thority case by virtue of its Para 125 (b) and hence entitled
to the benefit of the Notification dated 9.12.1976.
Employees' Union of the appellant-Corporation filed
writ petitions (CWP Nos. 4891 of 204 and 4887 of 2004) B
seeking their employment as per the Circular of 1976. The
-)o_ writ petition was dismissed by High Court with liberty to
approach Labour Court.
" Some other employees of the appellant-Corporation c
also filed a writ petition contending that the employees
who had been working as watchman could not have been
asked to appear at a test. High Court dismissed the writ
petition in view of judgment in Secretary, State of Karnataka
and Ors. v. Umadevi and Ors. 2006 (4) SCC 1. Hence the
D
present appeals.
Disposing of the appeals, the Court
HELD: 1.1 By the judgment of this Court in Steel Au-
.... thority of India Limited and in particular clause (b) of para
'
125 thereof, the judgment in Air India has been overruled E
prospectively. What has been directed is that despite the
said judgment, if any order had been passed or any ac-
tion had been taken giving effect to the Notification dated
.,, y 9.12.1976, the same would not be called in question in
any Tribunal or Court including the High Court subject to F
the condition that the same has otherwise attained final-
ity or had been implemented. What was required to be
~
implemented or finality attached to any judgment deliv-
' ered or action taken, relates to the Notification of the Cen-
tral Government dated 9.12.1976. From the discussions G
of the judgments of the High Court it is not evident that
- .... the said Notification dated 9.12.1976 had been given ef-
feet to. [Paras 21 and 22] [571-E-H, 572-A]
1.2 Central Government upon becoming the appro-
i4 H

~t
552 SUPREME COURT REPORTS [2008] 9 S.C.R.

A priate Government in relation to the appellant-Corpora- -(
tion issued a Notification on or about 28.5.1992. The va-
lidity of the said Notification is not in question. Once the
prohibition purported to have been made by the Central
Government in terms of its Notification dated 9.12.1976
B stood withdrawn with effect from 28.5.1992, the question
of prohibiting employment of contract labour in sweep-
ing or watching buildings owned or occupied by all the
>(-
establishments of Food Corporation of India, inter alia,
would not arise. [Para 22] [572-A,B,C]
c 1.3 By reason of the Office Memorandum dated
8.2.1999, the Central Government acting as the 'appropri-
ate Government' in respect of the Food Corporation of
India opined that the Notification dated 9.12.1976 is appli-
cable to it and the Regional Labour Commissioner (C)
D Chandigarh has initiated action to enforce the said Notifi-
cation. The Circular No. 2 of 1999 dated 23.3.1999 issued
)..-
by the Food Corporation of India is to the same effect
whereby it was directed not to engage the contract labour
in the jobs specified in the Notification dated 9.12.1976.
E What however has not been noticed is the Notification
issued under Section 10 (1) of Contract Labour (Regula-
tion and Abolition) Act, 1970 by the Central Government
itself in the year 1992 whereby the Central Government
withdrew its Circular dated 9.12.1976. The effect of the
F Notification issued under sub-Section (1) of Section 10 of '1
•
the 1970 Act cannot be taken away by a Circular letter is-
sued by the Central Government or by the appellant it-
self. [Para 22] [572-E,F, 573-A,C,D]
1.4 The right of the workmen to file a writ petition for
G obtaining a writ in the nature of mandamus must be based
on a legal right. This Court in Steel Authority of India Lim-
ited only recognized an existing right and not any future y-
right. Such a right was to be existing as on 30.8.2001 i.e.
the date of judgment and not thereafter. Any decision ren-
H dered thereafter could not confer a right much less any
FOOD CORPORATION OF INDIA & ANR. v. PALA 553
RAM & ORS.
'>- other right. In terms of the aforementioned judgment, what A
has been done is to recognize such a right and not de-
claring the same afresh. The law as enunciated in Steel
Authority of India Limited is very clear. Even the provisions
of 1970 Act are unambiguous and explicit. There has to
be a Notification abolishing contract labour as regards B
watching of the buildings or godowns belonging to the
Corporation for the purpose of storage of foodgrains.
--· ~ [Para 22) [573~0,E,F]
1.5 Application of the judgment passed in LP.A. No.
742 of 1993 in relation to the Sangrur establishment of c
the Corporation is not in dispute. But the question as to
whether in absence of any valid Notification abolishing
contract labour the same could be held to be binding on
other establishments or not required serious consider-
ation. The High Court in its judgment did not pose any D
such question. [Para 24] [574-C,D,E]
2.1 The writ petition filed by the employees' Union
and that filed by the employees apparently proceeded on
the basis that they were appointed by the Corporation. In
the writ petition filed by employees camouflage was E
pleaded. What was sought to be contended was that the
contractor was supplier of labour. It was not the conten-
tion that the watchmen had been deployed by the con-
tractor. The gravamen of the contention is that for all in-
.. y F
tent and purport they have been appointed by the Corpo-
ration itself. The writ petition, therefore, was not maintain-
able. [Para 24] [574, F,G, 576-A]
2.2. The writ petitions of the workmen do not disclose
the names of the contractors. It has not been disclosed
G
as to whether the contractors were registered or not. What
are the terms and conditions of employment have also
not been stated. On and from which date each individual
was appointed and by which contractor and in respect of
which establishment has not been disclosed. The writ
H
554 SUPREME COURT REPORTS [2008] 9 S.C.R.

A petition filed by the employees categorically show that -( •
the averments made therein proceeded on the basis that
the actual employer was the Corporation. If that be so, hav-
ing regard to the decision of this Court in Steel Authority of
India Limited the writ petition could not have been enter-
B tained. No authority or forum has scrutinized the records.
The registers maintained by the so-called contractors had
not been scrutinized. It was obligatory on the part of the
High Court to take recourse thereto. The benefit of any or- "' .
der or action taken must have a direct nexus with the Noti-
c (ication dated 9.12.1976. Notification dated 9.12.1976 ceased
to have any application, question of its attaining finality in
law would not arise. [Para 25] [576-D-H, 577-A]
2.3 Keeping in view the decision of this Court in Steel
Authority of India Limited , it is evident from the writ petition
D itself that another right, viz., a right under Section 25(h) of
the Industrial Disputes Act, 1947 had been claimed. The
benefit of Steel Authority of India Limited was sought to be
invoked without stating the requisite foundational facts
therefor. [Para 27] [577-D,E]
E 2.4 The High Court may not be correct in following
the Constitution Bench decision of this Court in Umadevi
case but there cannot be any doubt whatsoever that the
ultimate conclusion of the High Court is correct, particu-
larly, when it had categorically been stated in the written -,
F reply of the Corporation that the recruitment for the post (

provided for a test so that it could be determined as to
whether the candidates were literate or not. A series of
disputed questions of fact therefore were raised. Even on
that premise, the writ petition was, thus, not maintainable.
G [Para 27] [577-G, 578-A,D]

Steel Authority of India Limited and Ors. v. National Union
r
Waterfront Workers and Ors. 2001 ( 7) SCC 1 - applicability
clarified.
H Secretary, State of Karnataka and Ors. v. Umadevi and
FOOD CORPORATION OF INDIA & ANR. v. PALA 555
RAM & ORS. [S.B. SINHA, J.]

- )- Ors. 2006 (4) SCC 1- held inapplicable.
Bharat Heavy Electric Ltd. v. ES.I. Corporation, AIR 2008
A

SCW 1494;"Food Corporation of India Workers' Union v. Food
Corporation of India and Ors." 1985(2) S.C.C. 294; Air India
Statutory Corporation and Ors. v. United Labour Union and
Ors. 1997 (9) S.C.C. 377 - referred to. B

CIVIL APPELLATE JURISDICTION : Civil Appeal Nos.
~- )> 3641-42 of 2008

From the final Judgment and Order dated 23.01.2004 &
21.5.2004 of the High Court of Punjab and Haryana at c
Chandigarh in CWP No. 16482 of 2003 & in Review Applica-
tion No. 146 of 2004 respectively

WITH
C.A. Nos. 3655-56, 3657 & 3654 of 2008 D

Ajit Pudussery for the Appellants.
Dharmendra Kumar Sihna and S. Janani for the Respon-
dents.
E
The Judgment of the Court was delivered by
S.B. SINHA, J.1. Leave granted.
2. The case has a chequered history.

• y Appellant has been constituted under the Food Corpora- F
tion of India Act, 1964. For the purpose of carrying out its activi-
ties, it maintains a large number of godowns in different parts
of the country including the States of Punjab and Haryana. As
the law stood then, the respective State Governments were con-
sidered to be the appropriate Government in respect of the ap- G
peflant. Various State Governments issued Notification prohib-
iting employment of contract labour in some processes in its
---;
establishments purported to be in exercise of its power under
Section 10(1) of the Contract Labour (Regulation and Aboli-
tion) Act, 1970 (for short, "the Act").
H

I
556 SUPREME COURTREPORTS [2008] 9 S.C.R.

A Indisputably, the Government of India in exercise of the
same power issued a Notification bearing Nci. S.O. No. 779(E)
-~ -
on or about 9.12.1976 to the following effect:
"S.O. No. 779(E) - In exercise of the power conferred by
sub-section (1) of Section 10 of the Contract Labour
B (Regulation and Abolition) Act, 1970 (37 of 1970) the
Central Government after consultation with the Central
Advisory Contract Labour Board, hereby prohibits
employment of contract labour on and from the 1.3.1977,
for sweeping, cleaning, dusting and watching of buildings
c owned or occupied by the establishments in respect of
which the appropriate Government under the said Act is
the Central Government:
(emphasis supplied)

-
D Provided that this notification shall not apply to the outside
cleaning and other maintenance operations of multi~
storeyed buildings where such cleaning or maintenance
operations cannot be carried out except with specialized
experience."
E
In a decision of this Court titled "Food Corporation of In-
dia Workers' Union v. Food Corporation of India & ors." re-
ported in (1985) 2 S.C.C. 294, it was held:
"On the interpretation of the relevant sections extracted
F above, we hold that the 'appropriate Government' for the y ,
purpose of this case pertaining to the regional offices and
their warehouses in the respective States is the State
Government and not the Central Government."
3. However, on or about 28.1.1986, the definition of 'Ap-
G propriate Government' was amended by Act 14of1986 in terms
whereof, the Central Government was declared to be the 'ap-
propriate Government', inter alia, so far as establishments of y-
FCI are concerned.
4. The Central Government thereafter issued a Notifica-
H
FOOD CORPORATION OF INDIA & ANR. v. PALA 557
RAM & ORS. [S.B. SINHA, J.]

tion oh or about 28.5.1992 stating that no case for abolition of A
. contract labour in respect of the jobs of sweeping, cleaning,
dusting and watching of buildings in Food Corporation of India
was made out. It reads as under:
"No. U.23013/11/89-LW
B
Government of India : Ministry of Labour

Jaisalmar House, Mansingh Road,
NewDelhi, Dated 28'h May, 1992

To, c
All the members of Central
Advisory contract Labour Board.
Subject: Report (Part-I) of the Committee constituted to D
.......
study the working of Contractor Labour System in
Sweeping, Cleaning, Dusting and Watching of Buildings
owned or occupied by establishments in respect of which
the Central Government has become the appropriate
government after the amendment in 1986 of the Contract E
Labour (Regulation and Abolition) Act, 1970.
Sir,
I am directed to refer to this Ministry's letter of even No.
dated 3rd April, 1992 and to say that the matter relating to
. the dusting and watching of buildings owned or occupied F
by the Corporation of India. Unit Trust of India, and Central
Warehousing Corporation was discussed in the 24th
meeting of the Central Advisory Contract Labour Board
held on 29.02.1992 at New Delhi under the Chairmanship
of Union Deputy Labour Minister. It was inter-alia decided G
to leave the matter further for a decision by Government
keeping in views the views expressed in the matter.
2. In pursuance of the recommendations of the Board, the
matter has been considered in detail by the Central H
558 SUPREME COURT REPORTS [2008] 9 S.C.R.

A Government and it has been decided not to prohibit
employment of Contract Labour in the sweeping, cleaning,
dusting and watching of Building owned or occupied by
the establishments, of Food Corporation of India, Industrial
Finance Corporation of India, for which the appropriate
B Government under the Contract Labour (Regulation and
Abolition) Act, 1970 is the Central Government.

Yours faithfully,

c Sd/-

(Smt. P. Vankatachalam)

Deputy Secretary of the Govt. of India

And Secretary of the Central Advisory
D )r

Contract Labour Board."

5. The question as to whether on abolition of contract
labour, the contract labourers working under the contractors
became direct employees of the management, has been de-
E
bated in various High Courts. The question came up before this
Court in Air India Statutory Corporation & Ors. v. United Labour
Union & ors. reported in (1997) 9 S.C.C. 377 where it was held
that all the contract labourers on issuance of Notification dated
9.12.1976 became the direct employees of the respective man-
v .
F agements. The decision of this Court in Food Corporation of
India Workers' Union (supra) however was not noticed.
6. A series of writ petitions thereafter were filed before the
Punjab & Haryana High Court. In one of the matters, a Division
G Bench of the said Court in LPA No. 742 of 1993 by a judgment
and order dated 21.7.1998 opined that the contract labour in .,..,.
the depots of the appellant by reason of the said notification
dated 9.12.1976, the workmen were entitled to the benefits of
the said decision of Air India (supra) holding:

H "Accordingly, on finding the work to be perennial nature, it
FOOD CORPORATION OF INDIA & ANR. v. PALA 559
. )..
RAM & ORS. [S.B. SINHA, J.]

had recommending and the Central Government had A
considered and accepted the recommendation to abolish
the recommendation to abolish the contract labour system
in the afore-said services. Having abolished it the Central
Government was denuded its power under Section 10( 1)
I to again appoint insofar as the above services of the B
Mohile Committee· to go once over into the self - same
.... )t
question and recommendation of the latter not to abolish
the contract labour system in the above service and the
acceptance there of by the Central Government are without
any legal base and therefore nonest." c
7. It was also held that the Central Government was the
appropriate Government in view of the decision of this Court in
Air India (supra), stating :
"11. After recording the above mentioned conclusions their
D
Lordships examined the correctness of the directions
given by Bombay High Court for enforcement of the
notification dated 09-12-1976 qua to the establishment of
the Corporation and upheld the same.
12. In view of the judgment of the Supreme Court in Air E
India Statutory Corporation's Case (supra) approving
decision of the Bombay High Court which has direct
bearing on the case of the appellant, the impugned order
.... of the learned Single Judge in which he dissented from
the decision of the Bombay High Court cannot be regarded F
as laying down correct law. In our opinion the interpretation
given by the Apex Court to the definition of appropriate
Government is also sufficient to upset the impugned
judgment.
13. In the result we allow and set aside the order of the G
--.... learned Single Judge. Consequently the writ petition filed
by the appellant is accepted and the respondent -
Corporation is directed to give effect to the notification
dated 09.12.1976 while making employment in its
establishment. As a logical corollary, the respondent is H
560 SUPREME COURT REPORTS [2008] 9 S.C.R.

A restrained from employ watchman for its godowns as
contract labour."

8. Indisputably, a Special Writ Petition filed thereagainst
by the petitioner was dismissed by an order dated 30.8.1999
stating:
B
"In view of the circular No. 2 of 1999 dated 23.3.1999 by
the Food Corporation of India and Office Memorandum
No. S-16-11/2/99-LW dated 8.2.1999 issued by the
Government of India, this Special Leave Petition deserves
c to be dismissed. The Special Leave Petition is, therefore,
dismissed."

9. This question, however, again came up for consider-
ation before a Constitution Bench of this Court in Steel Author-
ity of India Limited & ors. v. National Union Waterfront Work-
D ers & ors. ((2001) 7 sec 1].
The Constitution Bench took a different view. Air India (su-
pra) was overruled prospectively. It was held that there being no
provision under the Act to direct absorption of the contract labour
on abolition thereof, Air India (supra) did not lay down a good
E law, stating:

"107. An analysis of the cases, discussed above, shows
that they fall in three classes: (1)where contract labour is
engaged in or in connection with the work of an y

establishment and employment of contract labour is
•
F
prohibited either because the industrial adjudicator/court
ordered abolition of contract labour or because the
appropriate Government issued notification under Section
10(1) of the CLRA Act, no automatic absorption of the
contract labour working in the establishment was ordered;
G
(it) where the contract was found to be a sham and nominal,
y-
rather a camouflage, in which case the contract labour
working in the establishment of the principal employer
were held. in fact and in reality, the employees of the
principal employer himself. Indeed, such cases do not
H
- )..
FOOD CORPORATION OF INDIA & ANR. v. PALA
RAM & ORS. [S.B. SINHA, J.]
561

relate to abolition of contract labour but present instances A
wherein the Court pierced the veil and declared the correct
position as a fact at the stage after employment of contract
labour stood prohibited; (iii) where in discharge of a
statutory obligation of maintaining a canteen in an
establishment the principal employer availed the services 8
of a contractor the courts have held that the contract labour
would indeed be lhe employees of the principal employer.
*** *** ***
119. We are not persuaded to accede to the contention c
that a workman, who is not an outworker, must be treated
as a regular employee of the principal employer. It has
been noticed above that an outworker falls within the
exclusionary clause of the definition of "workman". The
word "outworker" connotes a person who carries out the D
type of work, mentioned in sub-clause {C) of clause (1) of
Section 2(1 ), of the principal employer with the materials
supplied to him by such employer either (1) at his home, or
(ii) in some other premises not under the control and
management of the principal employer. A person who is
not an outworker but satisfies the requirement of the first E
limb of the definition of "workman" would, by the very
definition, fall within the meaning of the term "workman".
Even so, if such a .workman is within the ambit of the
contract labour, unless he falls within the aforementioned
classes, he cannot be treated as a regular employee of F
the principal employer.
120. We have also perused all the Rules and forms
prescribed thereunder. It is clear that at various stages
there is involvement of the principal employer. On an G
exhaustive consideration of the provisions of the CLRA
Act we have held above that neither they contemplate
-~ creation of direct relationship of master and servant
between the principal employer and the contract labour
nor can such relationship be implied from the provisions H
562 SUPREME COURT REPORTS [2008] 9 S.C.R.

A of the Act on issuing notification under Section 10(1) of
~ -
the CLRAAct, a fortiori much less can such a relationship
be found to exist from the Rules and the forms made
thereunder."
The summary of the decision was outlined in paragraph
B 125; the relevant portions whereof are as under:
"(2)(a) A notification under Section 10(1) of the CLRAAct
prohibiting employment of contract labour in any process,
operation or other work in any establishment has to be
c issued by the appropriate Government:
(1) after consulting with the Central Advisory Board or the
State Advisory Board, as the case may be, and
(2) having regard to
D (1) conditions of work and benefits provided for the
contract labour in the establishment in question, and
(ii) other relevant factors including those mentioned in
sub-section (2) of Section 1O;
E (b) Inasmuch as the impugned notification issued
by the Central Government on 9-12-1976 does
not satisfy the aforesaid requirements of Section
10, it is quashed but we do so prospectively
i.e. from the date of this judgment and subject v
F to the clarification that on the basis of this
judgment no order passed or no action taken
giving effect to the said notification on or before
the date of this judgment, shall be called in
question in any tribunal or court including a High
G Court if it has otherwise attained finality and/or
it has been implemented.
(3) Neither Section 10 of the CLRA Act nor any other
provision in the Act, whether expressly or by necessary
implication, provides for automatic absorption of contract
H labour on issuing a notification by the appropriate
FOOD CORPORATION OF INDIA & ANR. v. PALA 563
.... lir RAM & ORS. [S.B. SINHA, J.]

Government under sub-section (1) of Section 10, A
prohibiting employment of contract labour, in any process,
operation or other work in any establishment. Consequently
the principal employer cannot be required to order
absorption of the contract labour working in the
establishment concerned. B
~ )r (4) We overrule the judgment of this Court in Air India
case prospectively and decfare that any direction issued
by any industrial adjudicator/any court including the High
Court, for absorption of contract labour following the
judgment in Air India case shall hold good and that the c
.· same shall not be set aside, altered or modified on the
basis of this judgment in cases where such a direction
has been given effect to and it has become final.
(5) On issuance of prohibition notification under Section
-~
D
10(1) of the CLRAAct prohibiting employment of contract
labour or otherwise, in an industrial dispute brought before
it by any contract labour in regard to conditions of service,
the industrial adjudicator will have to consider the question
whether the contractor has been interposed either on the
ground of having undertaken to produce any given result E
for the establishment or for supply of contract labour for
work of the establishment under a genuine contract or is
a mere ruse/camouflage to evade compliance with various
" "( beneficial legislations so as to deprive the workers of the
benefit thereunder. If the contract is found to be not genuine F
but a mere camouflage, the so-called contract labour will
have to be treated as employees of the principal employer
who shall be directed to regularise the services of the
contract labour in the establishment concerned subject to
_,,, the conditions as may be specified by it for that purpose G
in the light of para 6 hereunder.
(6) If the contract is found to be genuine and prohibition
notification under Section 10(1) of the CLRAAct in respect
of the establishment concerned has been issued by the
H
564 SUPREME COURT REPORTS [2008) 9 S.C.R.

A appropriate Government, prohibiting employment of
contract labour in any process, operation or other work of
any establishment and where in such process, operation ·
or other work of the establishment the principal employer
intends to employ ~egular workmen, he shall give
B preference to the erstwhile contract labour, if otherwise
found suitable and, if necessary, by relaxing the condition
as to maximum age appropriately, taking into
consideration the age of the workers at the time of their
initial employment by the contractor and also relaxing the
c condition as to academic qualifications other than technical
qualifications."
The meaning of the expression "industrial adjudicator" was
stated in the following terms:
"126. We have used the expression "industrial adjudicator''
D
by design as determination of the questions
aforementioned requires enquiry into disputed questions
of facts which cannot conveniently be made by High Courts
in exercise of jurisdiction under Article 226 of the
Constitution. Therefore, in such cases the appropriate
E authority to go into those issues will be the Industrial
Tribunal/Court whose determination will be amenable to
judicial review."
10. Interpretation of the decision of this Court in Steel Au- Y .,
F thority of India Limited (supra) vis-a-vis the circulars issued by
the Central Government as also by the appellant fell for consid-
eration in a large number of writ petitions filed by the concerned
workmen of different establishments of the appellant.
11. We have noticed hereinbefore the decision of the Di-
G vision Bench of the Punjab & Haryana High Court rendered in
L. P.A. No. 742 of 1993. The said decision itself was construed y-
differently. Whereas one Division Bench in its judgment and
order dated 22.8.2002 passed in Writ Petition No. 4695of1999
titled "Sunil Kumar Vs. FCI & Ors." opined that the said Notifi-
H cation dated 9.12.1976 became final vis-a-vis the establish-
FOOD CORPORATION OF INDIA & ANR. v. PALA 565

-.
RAM & ORS. [S.B. SINHA, J.]

ment of FCI in Sangrur District, as noticed hereinafter, other A
Benches of the said Court, however, took a different view. We
may, however, notice the Division Bench decision in "Sunil
Kumar" wherein it was held:
"The only argument which survives for consideration of
this Court is whether the petitioners are entitled to claim B
benefit of the directions contained in sub-para No. (6) of
.... )' paragraph No. 121 of the judgment in Steel Authority of
India's case (supra). Learned counsel for the petitioners
contended that the judgment in relation to Food
. Corporation India Class IV Employees Union (Regd.) c
Sangrur, has attained finality and has been implemented
and, thus, would fall under the exception carved out by the
Hon'ble Apex Court in clause (2)(b) of paragraph No. 121
and, therefore, the petitioners are entitled to the relief
limited to the extent that the Corporation would grant them D
preferential treatment in terms of sub-para (6) of paragraph
121 of the judgment. According to him, by issuing the
letters of 1999 and the judgment of the Letters Patent
Bench as well as the Apex Court would make the judgment
enforceable in favour of all employees of the Food E
Corporation India, irrespective of territory, as the judgment
would have to be read as a judgment in rem and not in
personem. In other words, the Food Corporation India
being the respondent in these petitions, is bound to enforce
)' ... the judgment qua all its employees and particularly those F
who are working in the State of Punjab."
12. Posing the question as to what would be the meaning
of the expression "if it has otherwise attained finality and/or it
has been implemented" used in Steel Authority of India Lim- .
ited (supra) and having noticed the fact that the Notification dated G
9.12.1976 stood set aside by the Constitution Bench of this .
--,. Court, it was observed that the appellant cannot justify refusing
relief to the employees of the same sector of the Corporation,
rather same District, i.e. Sangrur in the following terms :
H
566 SUPREME COURT REPORTS [2008] 9 S.C.R.

A "It is not disputed that Sunam is a part of District Sangrur ~
-<I
and the petitioners are well within their rights to claim the
benefit of a settled right. It is only implementation of the
earlier judgment as the Union itself was a party before the
High Court in the other cases.
B On the one hand, the workers do not question the
genuineness of the agreement, while on the other, the
management admits implementation of the notification
and it having attained finality as back as in the year 1999.
~ .,
Once these two ingredients are satisfied in light of the
c judgment of the Hon'bleApex Court, denying limited relief
in terms of sub-paragraph (6) of paragraph No. 121 of the
judgment of Hon'ble Apex Court to the petitioners, may
not be permissible.
We have granted relief to the petitioners in these petitions
D
as it is only direction in furtherance to the judgment of the
Court pending between the parties to the writ and which
has attained finality. While, if we were to deny relief to the
..-
petitioners, it would amount to obstructing implementation
of the judgment which has attained finality upto the highest
E court of the land. In other words, it would tantamount to
denial of a settled relief. This judgment merely adds to the
existing order of the court particularly in view of the fact
that the respondents have admittedly implemented the
notification in question."
F
13. Indisputably, the Special Leave Petitions filed there- .. -;

against have been dismissed by this Court by an order dated
24.2.2003. Appellant thereafter issued two advertisements be-
ing dated 13.9.2003 and 20.8.2003 for enrolment of agencies
for provision of security coverage of FCI foodgrains stored in
G
various godowns/CAP complexes in Haryana and also for the
purpose of security of FCI building at Chandigarh. A Division
Bench of the High Court opined that the workmen were entitled y-
to the benefit of para 125(b) of the judgment in Steel Authority
of India Limited (supra) as interpreted by the Division Bench of
H
FOOD CORPORATION OF INDIA & ANR. v. PALA 567
RAM & ORS. [S.B. SINHA, J.]

- ;.. the said High Court in L. P.A. No. 742 of 1993 and Writ Petition A
No. 4695of1999. The advertisements were quashed. The main
judgment was delivered in CWP No. 15484 of 2003. That case
pertained to the State of Punjab.
14. Two other matters including one pertaining to the State
of Haryana came up for consideration before the High Court in B
CWP No. 16476 of 2003 and CWP No. 16482 of 2003. The
.,._ )' main judgment was delivered in CWP No. 15484 of 2003. The
said decision was followed in other cases. Noticing the deci-
sion of this Court in Steel Authority of India Limited (supra) as
contained in para 125(b), it was held: c
"The observations aforesaid must accordingly be applied
to the present case. The judgment of this court in the LPA
is dated 21. 7.1998. It is conceded that directions given in
that judgment had been implemented and acted uppn and
D
in view of the observations of the Supreme Court, the
-"1 petitioners herein thus fall within the exceptions. We have
also been referred to the Division Bench Judgment of this
Court passed on 22.8.2002, in Civil Writ Petition No. 4695
of 1999 Sunil Kumar and Others vs. F.C.I. and others. The
relevant observations are as under:- E

'Consequently, in view of the discussion aforestated,
we allow this writ petition, however, limited to the
extent that the petitioners would be entitled to the
relief in the light of the observations made by the F
" i Hon'ble Court in the case of Steel Authority of India
(supra). However, the parties are left to bear their
own costs.'
In the aforesaid judgment after considering the implications
of the judgment of the Supreme Court in Steel Authority of G
India's case (supra), the Division Bench granted the
--.. necessary relief to the petitioners.
We accordingly direct that the petitioners are entitled to
the same relief. The writ petition is allowed in the above
H
568 SUPREME COURT REPORTS [2008J 9 s·.c.R.

A terms. In this view of the matter, the advertisement ~
.
Annexure P12 is quashed. The respondents are directed
to take a fresh decision in the light of the observations
aforesaid within a period of four months from the day a
certified copy of the order is supplied to them."
B
Curiously, the appellants have filed only two Special Leave
Petitions bearing No. 22320-21 of 2004 and 22335-36 of 2004
questioning the decision of the High Court in CWP No. 16476
~ ...
of 2003 and CWP No. 16482 of 2003 and no Special Leave
Petition has been filed against the main judgment, viz., CWP
c No. 15484 of 2003.

15. Before, however, embarking on the contentions raised
by the parties, we may also notice that Review Petitions had
been filed thereagainst which by reason of an order dated
21.5.2004 were dismissed.
D
16. The Food Corporation of India Class IV Employees'
~-
Union filed a Writ Petition praying for the following reliefs:

"i) · a writ in the nature of mandamus or any other writ,
order of direction directing the Respondents to
E employ the persons mentioned in Annexure P/1 as
watchmen in accordance with the directions of the
Hon'ble Supreme Court of India in Steel Authority of
India's case reported as AIR 2001 SC 3527 and in

F
accordance with the directions given by this Hon'ble
Court in Civil Writ Petition No. 4695 of 1999 decided
,. ~

on 22.8.2002 (Annexure P/8)
ii) any other writ, order or direction which in the
circumstances, of this case, this Hon'ble Court
deems fit and proper be also passed;
G
iii) issuance of advance notices be dispensed with;
~
y-
iv) filing of certified copies of annexures be dispensed
j
with;

H v) cost of the petition be awarded."
FOOD CORPORATION OF INDIA & ANR. v. PALA 569
RAM & ORS. [S.B. SINHA, J.]
- ).-
It was furthermore prayed: A
"i) that during the pendency of the writ petition, the
Respondents be restrained from employing any other
~ persons in preference to the persons mentioned in
Annexure P-1;
B
ii) and Respondents be directed to dispense with the
• y services of the SPOs/Home Guards employed as
watch and ward staff by way of a stop gap
arrangement."
17. A Division Bench of the said Court dismissed the said c
Writ Petition giving liberty to the Union to approach the Labour
Court.
18. Special Leave Petition (Civil) No. 2757 of2006 arose
out of the said order. Raj Kumar and 71 others also filed a Writ D
Petitioin before the High Court which was marked as CWP No.
~ 3945 of 2006. Therein a contention was raised that the peti-
tioners who had been working as watchmen could not have been
asked to appear at a test having regard to the directions is-
sued by this Court in Steel Authority of India Limited (supra).
Reliance therefor was placed on the decision of the Division E
Bench of the High Court in CWP No. 15484 of 2003 as also a
decision in Food Corporation of India, Class IV Employments
Union (Regd.} Sangrur v. Food Corporation of India, Chandigarh,
1999 (1) Punjab Law Reporter 35. The Division Bench opined
" "' that having regard to another Constitution Bench decision of F
this Court rendered in Secretary, State of Kamataka and oth-
ers v. Umadevi and others [JT 2006 (4) SC 420 : (2006) 4
SCC 1), the Writ Petition is not maintainable stating:
"The various grounds raised by the petitioners need not G
be separately dealt with because the Supreme Court of
-"( India in Secretary, State of Karnataka and others vs.
Umadevi and others JT 2006 (4) 420, has clarified that
the right to employment, if it is a part of right to file, would
stand denuded by preferring persons who had got in
H
570 SUPREME COURT REPORTS [2008] 9 S.C.R.

A casually or who had come through the back door. It would
be consistent with the policy of Article 39(a) of the
Constitution of India, if the Courts recognized that the
appointment to a post in government service or in the
service of its instrumentalities could only be by way of a
B proper selection in a manner recognized by legislation in
the context of the provisions of the Constitution of India.
This quite clearly would not permit FCI to recruit the
petitioners who had until 1999 worked for various period
as watchmen on contract labour. If the petitioners are
c seeking benefit of direction given by this Court in Food
Corporation of India, Class IV Employments Union (Regd.)
Sangrur Vs. Food Corporation of India, Chandigarh (1999-
1) Punjab Law Reporter 35 then in Umadevi's case (supra),
the Supreme Court had also clarified that a decision which
D ran counter to the principles settled by them shall stand
denuded of their effect as precedent.
Consequently, we have no hesitation in holding that all
judgments and directions which run counter to Umadevi's
case including judgment of this court in Food Corporation.
E of India, Class IV Employments Union (Regd.) Sangrur
(supra) and any other judgment which seems to enforce
notification of 1976 to re-employ the" contract labour stand
denuded of its effect as precedent."
F 19. Mr. Ajit Pudussery, learned counsel appearing on be-
half of the appellant would submit that the Division Bench of the
High Court misconstrued and misinterpreted the decision of this
Court in Steel Authority of India Limited (supra) as also the
decision rendered in the case of CWP Nos. 4891 and 4887 of
G 2004 as the fact thereof was confined to the District of Sangrur I
only. Each establishment being separate and distinct, the deci-
sion in CWP Nos. 4891 and 4887 of 2004 could not have been y-
applied in relation to all other godowns.
20. Mr. Dharmendra Kumar Sinha, learned counsel ap-
H pearing on behalf of the respondent, on the other hand, would
...
FOOD CORPORATION OF INDIA & ANR. v. PALA 571
RAM & ORS. [S.B. SINHA, J.]

submit that it is incorrect that the decision of the Punjab & A
>- Haryana High Court in CWP Nos. 4891 and 4887 of 2004 was
rendered only in relation to the Sangrur District inasmuch as it
was contended that from a perusal of the order passed by the
Punjab & Haryana High Court as also the Circulars issued both
by the Central Government and the Food Corporation of India B
itself would appear that the contract labour stood abolished and
in that view of the matter the impugned judgments rendered in
... r CWP No. 15484 of 2003, CWP No. 16482 of 2003 and CWP
No. 15694 of 2003 are wholly unassailable.

The learned counsel would contend that the fact of the c
matters being wholly undisputed, the High Court has commit-
ted a manifest error in passing the order dated 15.9.2005 in
CWP Nos. 4891 and 4887 of 2004 which is the subject matter
of Special Leave Petition (Civil) No. 2747 of 2006. Furthermore,
the right of the workmen having been preserved and protected D
in terms of the Constitution Bench decision of this Court in Steel
-"4 Authority of India Limited (supra), the High Court manifestly
erred in dismissing the Writ Petition filed by the Raj Kumar &
ors. relxing on or on the basis of the Constitution Bench deci-

. sion in Umadevi (supra).

21. The core question involved in these appeals is the in-
terpretation of the judgment of this Court in Steel Authority of
E

· India Limited (supra) and in particular clause (b) of para 125

. ,. thereof. Air India (supra) has been overruled prospectively. What
has been directed is that despite the said judgment, if any or- F
der had been passed or any action had been taken giving ef-
feet to the Notification d~ted 9.12.1976, the same would not be
called in question in any Tribunal or Court including the High
Court subject to the condition that the same has otflerwise at-
tained finality or had been implemented. G

22. What was therefore required to be implemented or
-'"'f finality attached to any judgment delivered or action taken, re-
!ates to the Notification of the Central Government dated
9.12.1976. We do not find from the discussions in any of the
H
572 SUPREME COURT REPORTS (2008] 9 S.C.R.

A judgments of the High Court that the said Notification dated .
-1
9.12.1976 had been given effect to. We have noticed herein-
before that the Central Government upon becoming the appro-
priate Government in relation to the appellant - Corporation is-
sued a Notification on or about 28.5.1992. The validity of the
B said Notification is not in question. Once the prohibition pur-
ported to have been made by the Central Government in terms
of its Notification dated 9.12.1976 stood withdrawn with effect
from 28.5.1992, the question of prohibiting employment of con- .....
tract labour in sweeping or watching buildings owned or occu-
pied by all the establishments of Food Corporation of India, in-
c ter alia, would not arise.
It may be true that the writ petitioner in the writ application,
inter alia, contended that the Corporation had implemented the
decision both in Punjab and Haryana. What was however was
D sought to be implemented was the Circular letters issued by
the Central Government and/or the Food Corporation of India
)>--
itself, which find reference in the order of this Court dated
30.8.1999 passed in Special Leave Petition (Civil) No. 4605 of
1999.
E We may notice Circular No. 2 of 1999 as also Office
Memorandum dated 8.2.1999. By reason of the said Office
,.
Memorandum dated 8.2.1999, the Central Government acting
as the 'appropriate Government' in respect of the Food Corpo-
ration of India opined that the Notification dated 9.12.1976 is
F applicable to it and the Regional Labour Commissioner (C) ... ,

Chandigarh has initiated action to enforce the said Notifica-
tion, stating:
"In the circumstances, since the jobs in watching cif the
buildings owned or occupied by the establishment, far
G
which the Appropriate Government is the Central
Government, have been prohibited by the notification
y-
dated 9.12.1976, the Food Corporation of India would be
well advised not to engage contract labour in the jobs
specified in the notification."
H
- ,.
FOOD CORPORATION OF INDIA & ANR. v. PALA 573
RAM & ORS. [S.S. SINHA, J.]

The Circular No. 2 of 1999 dated 23.3.1999 issued by the A
Food Corporation of India is to the same effect whereby it was
directed:

"In vie.w of the above instructions of the Ministry of Labour,
you are requested not to engage the contract labour in the
jobs specified in the notification dated 9.12. 76 (copy 8
·~· ~ enclosed). Further it should be assured that the instructions
are strictly followed.

Please acknowledge the receipt."

What however has not been noticed is the Notification is- c
sued under Section 10(1) by the Central Government itself in
the year 1992. The effect of the Notification issued under sub-
Section ( 1) of Section 10 of the 1970 Act cannot be taken away
by a Circular letter issued by the Central Government or by the
-"1 appellant itself. The right of the workmen to file a writ petition for D
obtaining a writ in the nature of mandamus must be based on a
legal right. This Court in Steel Authority of India Limited (supra)
only recognized an existing right and not any future right.

Such a right was to be existing as on 30.8.2001 when the
E
judgment in Steel Authority of India Limited (supra) was ren-
dered and not thereafter. Any decision rendered thereafter could
not confer a right much less any other right. In terms of the afore-
mentioned judgment, what has been done is to recognize such
-1
a right and not declaring the same afresh. The law as enunci-
ated in Steel Authority of India Limited (supra) is very clear. F
Even the provisions of 1970 Act are unambiguous and explicit.
There has to be a Notification abolishing contract labour as re-
gards watching of the buildings or godowns belonging to the
Corporation for the purpose of storage of foodgrains.
G
-"{ 23. Whether as on 9.12.1976 the Central Government was
the appropriate Government or not as opined by this Court in
Food Corporation of India Workers'. Union (supra) may not be
of much significance as the Central Government admittedly
became the appropriate Government with effect from 28.1.1986.
H
574 SUPREME COURT REPORTS (2008] 9 S.C.R.
... ...
A 24. Clause (b) of Para 125 uses the word 'establishments'
in plural. A Corporation therefore may have more than one es-
tablishment. We may notice hereinbefore the differences of
opinion amongst the Benches of the Punjab & Haryana High
Court itself.
B Whereas in the case of 'Sunil Kumar' a Division Bench
opined that the establishment which was the subject matter of .... '
LP.A. No. 742of1993 was confined to the district of Sangrur, a
different view is sought to be projected before us.

c It is, however, evident from the decision in LP.A. No. 742
of 1993 dated 21. 7 .1998 that the petitioner therein confined its
case to Sangrur. It was the Sangrur branch of the Union which
filed the application. The learned counsel may be correct that
while allowing the Writ Petition, no distinction was made be-
tween one or the other godowns or one or the other Regional
D ~-
Offices situated either in the State of Punjab or in the State of
Haryana. But as is well known, a judgment must be construed
on its own facts. Application of the said judgment in relation to
the Sangrur establishment of the Corporation is not in dispute.
But the question as to whether in absence of any valid Notifica-
E tion abolishing contract labour the same could be held to be
binding on other establishments or not required serious con-
sideration. The High Court unfortunately in its judgment did not
pose any such question. ~

F It is interesting to notice that the writ petition filed by the
Union and of the Raj Kumar apparently proceeded on the basis
that they were appointed by the Corporation. In the writ petition
filed by Raj Kumar and others, camouflage was pleaded.
What was sought to be contended was that the contractor
G was supplier of labour. It was not the contention that the watch-
men had been deployed by the contractor. The gravamen of the
... -
contention is that for all intent and purport they have been ap-
pointed by the Corporation itself. It was stated that the Assis-
tant Manager used to prepare the duty list of the watchmen. It
H has categorically been averred:
FOOD CORPORATION OF INDIA & ANR. v. PALA 575

. >-
RAM & ORS. [S.B. SINHA, J.]

"That although the petitioners were shown to _have been A
employed through the contractor yet the petitioners worked
under the direct supervision and control of the officials of
the respondent - Corporation."
This Court in Steel Authority of India Ltd. v. Union of India
& ors. [2006 (9) SCALE 597] held: B

... )- "22. We may reiterate that neither the Labour Court nor
the writ court could determine the question as to whether
the contract labour should be abolished or not, the same
being within the exclusive domain of the Appropriate c
Government.
23. A decision in that behalf undoubtedly is required to
be taken upon following the procedure laid down in Sub-
section (1) of Section 10 of the 1947 Act. A notification
can be issued by an appropriate Government prohibiting D
~-1 employment of contract labour if the factors enumerated
in Sub-section (2) of Section 10 of the 1970 Act are
satisfied.
24. When, however, a contention is raised that the contract
E
entered into by and between the management and the
contractor is a sham one, in view of the decision of this
Court in Steel Authority of India Limited (supra), an industrial
adjudicator would be entitled to determine the said issue.
i The industrial adjudicator would have jurisdiction to
determine the said issue as in the event if it be held that F
the contract purportedly awarded by the management in
favour of the contractor was really a camouflage or a sham
one, the employees appointed by the contractor would, in
effect and substance, be held to be direct employees of
the management. The view taken in the Steel Authority of G
~-....
India Limited (supra) has been reiterated by this Court
subsequently. [See e.g. Nitinkumar Nathalal Joshi and
Ors. v. Oil and Natural Gas Corporation Ltd. and Ors.
and Municipal Corporation of Greater Mumbai v. K. V
Shramik Sangh and Ors:._ H
576 SUPREME COURT REPORTS [2008] 9 S.C.R.

The writ petition, therefore, was not maintainable.
~
.
A
Our attention, however, has been drawn to the fact that the
direction of the High Court in L. P.A. No. 742 of 1993 was app Ii-
cable both to Punjab as well as Haryana which had not been
denied or disputed. We may notice the following contention
B raised in the petition in this regard.

"This direction it is submitted is applicable both to Punjab -f
...
as well as Haryana as both fall within the jurisdiction of this
Hon'ble Court."
c The said statement therefore was primarily made for in-
voking the jurisdiction of the High Court. In any event, if a deci-
sion is not applicable as has been found by one Bench of the
High Court, the same would not become applicable only be-
cause the Corporation failed to rebut the said contention. It is a
D question of jurisdiction.
)>- -
25. The writ petitions of the workmen do not disclose the
names of the contractors. It has not been disclosed as to whether
the contractors were registered or not. What are the terms and
conditions of employment have also not been stated. On and
E from which date each individual was appointed and by which
contractor and in respect of which establishment has not been
disclosed.
The writ petition filed by the Raj Kumar and others cat-
F egorically show that the averments made therein proceeded on '"
the basis that the actual employer was the Corporation. If that
be so, having regard to the decision of this Court in Steel Au-
thority of India Limited (supra}, the writ petition could not have
been entertained. No authority or forum has scrutinized the
records. The registers maintained by the so-called contractors
G
had not been scrutinized. It was obligatory on the part of the
High Court to take recourse thereto. The benefit of any order or ,---
action taken will bear a repetition to state, be a reputation to
State must have a direct nexus with the Notification dated
9.12.1976, that 9.12.1976 Notification ceased to have any ap-
H
FOOD CORPORATION OF INDIA & ANR. v. PALA 577
RAM & ORS. [S.B. SINHA; J.]
~
plication, question of its attained finality in law would not arise. A
26. Our attention has been drawn to the Order dated
23.1.2004 passed in CWP No. 15484 of 2003 wherein it was
recorded:
"It is the conceded position that the matter was taken by B
the Food Corporation of India in a special Leave Petition
.... before the Supreme Court which too was dismissed on
30.08.1999. It is further conceded that the directions of
the Division Bench were subsequently complied with by
the Food Corporation of India." c
What was conceded was the implementation of the order
in relation to Sangrur District and not others. We therefore do
not find any illegality in the order dated 15.9.2005 passed in
CWP No. 4891 of 2004. So far as the order passed in CWP
No. 3945 of 2006 is concerned we again do not find any illegal- D
ity therein apart from the fact that on their own showing, the writ
petition was not maintainable.
27. Keeping in view the decision of this Court in Steel Au-
thority of India Limited (supra), it is evident from the writ peti-
tion itself that another right, viz., a right under Section 25(h) of E
the Industrial Disputes Act, 1947 had been claimed. The ben-
efit of Steel Authority of India Limited (supra) was sought to.be
invoked without stating the requisite foundational facts therefor.
..
They were asked to appear in the written test. They were F
asked to do so for judging their eligibility. They must know how
to read and write. They were required to show that they were in
a position to perform their duties as watchmen. Their conten-
tion that they should be exempted from appearing at the written
test was wholly unfounded. The High Court may not be correct
G
in following the Constitution Bench decision of this Court in
~"'
Umadevi (supra), but there cannot be any doubt whatsoever
thatthe ultimate conclusion of the High Court is correct; particu-
larly, when it had categorically been stated in the written reply of
the Corporation that the recruitment for the post provided for a
H
578 SUPREME COURT REPORTS [2008] 9 S.C.R.

...
A test so that it could be determined as to whether the candidates
were literate or not. We may furthermore notice that in para 3 of
the said written reply it was stated by the Corporation :
"... Some persons were employed as Watchmen/security
guards through contractors/security agencies. It is wrong
B that the appointment was shown to be through contractor.
The correct position is that the said workmen were
employees of the contractor. No watchman who was the
employee of the contractor was given appointment letter
by the answering respondent. Whether the contractor
c -, concerned issued any appointment letter or not in the
knowledge of the answering respondent. This fact can be
disclosed by the contractor."
[See Bharat Heavy Electric Ltd. v. E.S.I. Corporation, AIR
2008 sew 14941
0
A series of disputed questions offact therefore was raised. ~
Even on that premise, the writ petition was, thus, not maintain-
able.
28. We therefore allow the appeals arising out of Petition
E for Special Leave to Appeal (Civil) Nos. 22320-22321 of 2004
and 22335-22336 of 2004 and dismiss the appeals arising out
of Petition for Special Leave to Appeal (Civil) Nos. 1742 of 2008
and 2757 of 2006.
~
F 29. In view of the fact that the order dated 23.1.2004 passed
in CWP No. 15484 of 2003 is not in question, the same must
be held to have attained finality. In the facts and circumstances
of the case, however, there shall be no order as to costs.
K.K.T. Appeals disposed of.