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Supreme Court of India

INTERNATIONAL AIRPORTS AUTHORITY EMPLOYEES UNION AND ANR. ETC. ETC.versusAIRPORT AUTHORITY OF INDIA AND ORS. ETC. ETC.

Citation
1997 INSC 413
Decided
11 April 1997

Holding

Regularisation is to be effected from the date of the High Court judgment where it covers the workers, and from the Supreme Court judgment date where it does not, with service counted from the original contract appointment for retirement benefits.

Summary

The petitioners, workmen employed as sweepers, canteen workers and other staff at international airports, challenged their continued status as contract labour after the Supreme Court’s decision in Air India Statutory Corporation v. United Labour Union which abolished contract labour. They sought regularisation and entitlement to retirement benefits, arguing that the High Court judgment should determine the effective date of regularisation. The Court held that where the High Court judgment specifically covered the workers, regularisation would be back‑dated to that judgment; where it did not, the date of the Supreme Court judgment (9 December 1996) would apply. It also directed that the Central Advisory Board under Section 10 of the Contract Labour (Regulation and Abolition) Act, 1970 examine the remaining categories of workers and advise the Government. The Court ordered that service from the date of original contract appointment be counted for pension and gratuity calculations, and that any disputes over service dates be resolved by the respondents after giving notice. The appeals were disposed of with these directions and no costs were awarded.

Issues considered

  • Whether contract labourers employed as sweepers, canteen workers and other categories are to be regularised with effect from the High Court judgment or the Supreme Court judgment.
  • Whether the Central Advisory Board under Section 10 of the Contract Labour (Regulation and Abolition) Act, 1970 should be directed to consider the regularisation of the remaining categories of workers.
  • How the period of service for pension and gratuity should be computed for workers regularised after abolition of contract labour.

Legislation cited

Subjects

contract labourregularisationabolition of contract labourpensiongratuityCentral Advisory BoardSection 10labour lawemployment rights

Judgment

A       INTERNATIONAL AIRPORTS AUTHORITY EMPLOYEES
                  UNION AND ANR. ETC. ETC.
                                         v.
         AIRPORT AUTHORITY OF INDIA AND ORS. ETC. ETC.

                                  APRIL 11, 1997
B
                [K. RAMASWAMY AND D.P. WADHWA, JJ.j

          Labour Laws :

C         Coll/ract labou~egu/arisation of-Where the workmen who are
    covered by the High Court judgment, their regularisation to take effect from
    the date of the High Court judg111e11t-l¥here the matter is not covered by the
    High Court judgment but by judgmellt of Supreme Court abolishing contract
    labour, such workmen to be regulmised from the date of tl1e judgment viz.
    December-9, 1996-Directions issued.
D
          Air India Statutory C01poration Etc. \'. United Labour Union & Ors.
    Etc., [1996] 9 SCALE 70 and Masih Charan & 01~·. v. U.0.1. & Ors, W.P.
    (C) No. 219/1995, decided on March 10, 1997, relied on.

          CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 2987-89
E   of 1997 Etc. Etc.

         From the Judgment and Order dated 27.3.86 of the Bombay High
    Court in W.P. No. 1494/89, 2362/90 and 504 of 1991.

          T.R. An<lhyarujana, Solicitor General, Ms. InJra Jaisingh, K.K.
F Singhvi, Sanjay Parikh, Ms. Anita Shenoi, Brij Bhushan, Vineet Kumar,
    B.N. Singhvi, Sanjay Singh\~, R.N. Keshwani, P.K. Manohar, Ms. Nina
    Gupta, K.B. Swamy, Ms. Kiran and Neeraj Sharma for the appearing
    Parties.

G         The following Order of the Court was delivered :

          Leave granted.

          These appeals arise from the judgment of the Division Bench of the
    Bombay High Court made on March 27, 1996 in W.P. Nos. 1494/89,
H   2362/90 and 504/1991. The appellant-workmen came to be employed as
                                       868
INTERNATIONAL AIRPORTS AUTHORITY EMPLOYEES UNION>. AIRPORT AUTHORITY OF INDIA 869


sweepers in International Airport, National Airport Cargo Complex and A
Import Warehouse. Consequent upon the abolition of the contract labour
system with effect from December 9, 1976 in the light of the judgment of
this Court in Air India Statutory Corporation Etc. v. United Labour Union
& Ors. Etc., (1996) 9 SCALE 70 they are also entitled to be regularised
with effect from the date of the judgment of the High Court and where the B
matter is not covered by the judgment with effect from the date of the
judgment rendered on December 6, 1996, as held in Masih Charan & Ors
v. U.0.1. & Ors., in Writ Petition (C) No. 219/1995 dated March 10, 1997.

       Shri Singhvi and Ms. Indira Jaising, learned senior counsel have
brought to our notice that the workmen have been working for a long time.           c
Though the regularisation of their services with effect from the date of
judgment was given by this Court since they have come in appeal by virtue
of that part of the judgment in these cases viz., they are not entitled to the
benefit from the date of the abolition of the contract labour system, the
same benefit may be given from the date of the judgment of the High                 D
Court. With a view to maintain uniformity in the orders passed, we think
that the procedure adopted earlier would be the feasible one in the fact-
situation, namely, where the matter is covered by the judgment of the High
Court, the regularisation will be with effect from the respective dates.
Where the matter is not covered by the judgment of the High Court, i.e.,            E
in the case filed under Article 32, it operates from the date of the judgment
of this Court in Air India Statutory Corpn. Etc. v. United Labour Union &
Ors., (1996) 9 SCALE 70. However, since they have been working for a
long time prior to the abolition of the contract labour system where the
principle of pension and gratuity scheme is in operation, the authorities are
directed to compute the previous length of service from the date of
                                                                                    F
appointment by contract till they retire from service for the purpose of all
retiral benefits. However, if there is any dispute as to the date from which
they are working, it is always open to the respondents to verify the same
with prior notice to the respective workmen or accredited agents, as the
case may be, and then decide that particular controversy in an individual           G
case.

      The appeals are, accordingly, disposed of. No costs.

CA. 2990@ S.L.P. (C) No. 14116196                                                   H
    870                    SUPREME COURT REPORTS                 [1997] 3 S.C.R.

A         Leave granted.

           This controversy also involves three type of workmen, namely,
    sweepers, canteen workers and cabin catering cleaners. As far as the
    sweepers are concerned, it is covered by the judgment of this Court in Air
    India Statut01y C01p11. Etc. v. United Labour U11io11 & Ors., (1996} 9 SCALE
B   70. Therefore, they are entitled tu regularisation with effect from the date
    of judgment of the High Court. Though the High Court has disallowed the
    relief since we allowed the similar benefit, they are entitled to the benefit
    from the date of the High Court judgment. With regard to canteen workers
    the matter requires remittan~e for reconsideration by the High Court in
C    the light of the judgment in Air India Statutory Corporation case and other
    cases on the subject. Therefore, the High Court is · equested to consider
    the case afresh.

          The appeal is, accordingly, disposed of. No costs.

D CA ..... @ S.L.P. (C) No. 13533/96 & S.L.P. (C) 19232/96
          Leave granted.

          We have heard learned counsel on both sides.

E          These appeals by special leave arise from the judgment of the
     Division Bench of the Bombay High Court made on March 27, 1996 in
     W.P. No. 431/92 and 1439/91.

            The appellants are challenging the order of the High Court directing
     the Central Advisory Board constituted under Section 10 of the Contract
F    Labour (Regulation and Abolition) Act, 1970 (for short, the 'Act') to go
     into the question of regularisation of the employees engaged in various
     fields. The workers represented by the appellants were employed at Staff
     Colony at Kalina, Indian Airlines buildings owned by the Air India. Their
     case is that they are employed as contract labour by the various employers
     on behalf of the principal employer, namely, Air India. The Notification
G    dated December 9, 1976 relates to the abolition of the contract labour
     engaged in sweeping, clearing, dusting and watching of buildings owned by
     Air India. As a consequence, they are also entitled to be appointed on
     regular basis. They relied upon the judgment of this Court in Air India
     Statut01y Col]m. Etc. v. U11ited Labour U11ion & Ors., (1996) 9 SCALE 70.
H    Shri Singhvi, learned senior counsel contends that in view of the above
INIBRNATIONALAIRPORTS AlJl'HORITY EMPLOYEES UNION v. AIRPORT AUTHORITY OF INDIA 871


decision and in view of the notification they are entitled to the same benefit A
which was given to the employees who were directed to be regularised in
the above judgment. The High Court has not examined the matter in true
perspective. Instead of directing Central Advisory Board to go into the
question, the High Court would go into and decide the matter in accord-
ance with law. We decline to express any opinion on merits since we are
remitting the matter to the High Court for reconsideration. We would,
                                                                               B
therefore, request the High Court to dispose of the matter as expeditiously
as possible.

     The appeal~ are, accordingly, allowed. No costs. Status quo as on
today shall continue.                                                                 C
C.A . ...... @ S.L.P. (C) Nos. 4088-4093/97

       Delay condoned. Leave granted.

      In view of the decision taken by this Court in Air India Statutory              D
Corpn. v. United Labour Union & Ors., .(19%) 9 SCALE 70 since National
Labour Advisory Board constituted under Section 10 of the Act has not
opined for abolition of posts in which these workers employed on contract
labour in the Trolley Retrievers (W.P. No. 1494/89), Loaders (W.P. No.
1494/89, Bird Chasers (W.P. No. 1263/91), Conveyor Belt Workers (W.P.
Nos. 2641/92, 1256/96), Car-parking Clerks (W.P. No. 2362/90) (Employed               E
at International and National Airports of Airport Authority of India),
Electrical Maintenance Workers (W.P. No. 430/92) and Civil Maintenance
Workers (Employed at Staff Colony at Kalina, Indian Airlines) (W.P. No.
430/92), we think that the appropriate course to be adopted by he High
Court would be to direct that the Board to examine the matters and then               p
give necessary advice to the Government of India for taking appropriate
action under Section 10.

      The appeals are accordingly dismissed but they will be subject to
decision by the Board. No costs. Status quo would continue. Those who
were dismissed earlier are directed to be reinstated.                                 G
C.A . ... @ S.L.P. (C) No. 13055/96

       Leave granted.

       This appeal arises from the judgment of the Division Bench of the              H
    872                   SUPREME COURT REPORTS                    (1997) 3 S.C.R.

A Bombay High Court in W.P. No. 498/87 dated February 28,1996. The
    controversy raised in this case is squarely covered by the judgment of this
    Court in Air India Statutory Corporatio11 Etc. v. United Labour U11io11 & Ors.,
    (1996) 9 SCALE 70. Their contract was terminated in December 1983 and
    they challenged the writ petition in 1987 and High Court, therefore was
B   justified in dismissing the writ petition on the ground of limitation. We find
    no force in the contention. They worked for 12 years upto December 1983
    and thereafter when they were sought to be terminated they filed a com-
    plaint on December 18, 1983 under the Act against the contractor. They
    obtained interim order from the competent authority restraining the first
    respondent from terminating the contract of workers. Before receipt there-
C   of, they served the termination order dated December 19-20, 1983 and
    effected termination. Consequently, they filed a fresh application on
    December 22, 1983. Therein they sought reinstatement. The High Court of
    Bombay in the similar matter has held that since the notification applies
    only to the Central Government and the State Government has not issued
D   the notification, the termination order was upheld. When the matter was
    initiated in the M.R.T.P. Act the Labour Court also took the same view.
    Under these circumstances, they came to be filed. Thus, it could be seen
    that the Government have not considered every matter. They have been
    agitating the rights in one form or the other. As a consequence, they are
    entitled to the same benefit as was given in the earlier appeals.
E
         The appeal is accordingly, allowed. They are entitled to be reinstated
    and have their services regularised. No costs.

    IA. Nos. 8-1011997 ill C.A. Nos. 15523-34/96

F          I As. are dismissed.                                                       •
    Contempt Petition (C) Nos. 235-237197

           No contempt in view of the above clarifications.

G   G.N.                                          CA. Nos. 2987-89/97, 2990/97
                                                             Appeal disposed of.
                                       C.A. Nos. 2991, 2992 and 2999/97 allowed.
                                                 C.A. Nos. 2993-98/97 dismissed.


H


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