221 GI/2026

(7)

रजजस्ट्री सं. डी.एल. (एन) 04/0007/2003—05

REGD. NO. D. L. (N) 04/0007/2003—05

xxxGIDHxxx

xxxGIDExxx

प्राजधकार से प्रकाजित

PUBLISHED BY AUTHORITY

साप् ताजहक

WEEKLY

सं. 2]

नई ददल् ली, जनवरी 18—जनवरी 24, 2026, िजनवार/पौष 28—माघ 4, 1947

No. 2]

NEW DELHI, JANUARY 18—JANUARY 24, 2026, SATURDAY/ PAUSHA 28––MAGHA 4, 1947

इस भाग में जभन् न पृ्‍ सं्‍ या दी जाती हज जजससे दक यह पृथक संकलन के प प में रखा जा सके

Separate Paging is given to this Part in order that it may be filed as a separate compilation

भाग II—खण् ड 3—उप-खण् ड (ii)

PART II—Section 3—Sub-section (ii)

भारत सरकार के मंत्रालयों (रक्षा मंत्रालय को छोड़कर) द्वारा जारी दकए गए सांजवजधक आदेि और अजधसूचनाएं

Statutory Orders and Notifications Issued by the Ministries of the Government of India

(Other than the Ministry of Defence)

जवत्त मंत्रालय

(व्यय जवभाग)

नई ददल्ली, 19 जनवरी, 2026

का.आ. 7.—केन् र सरकार, एतद् द्वारा राजभाषा (संघ के िासकीय प्रयोजनों के जलए प्रयोग) जनयमावली, 1976

के जनयम 10 के उप-जनयमों (2) एवं (4) के अनुसरण में, भारतीय लेखापरीक्षा एवं लेखा जवभाग के कायाालय प्रधान

जनदेिक लेखापरीक्षा (केन्रीय), कनााटक, बेंगलूरु जजसमें अस्ट् सी प्रजतित से अजधक अजधकाररयों/कमाचाररयों ने हहदी का

कायासाधक ज्ञान प्राप्त कर जलया हज, को अजधसूजचत करती हज।

[फा. सं. ए-12034/01/2026-ईजी]

रामेश् वर कुमार, अवर सजचव

सी.जी.-डी.एल.-सा.-29012026-269639

CG-DL-W-29012026-269639

8

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

MINISTRY OF FINANCE

(Department of Expenditure)

New Delhi, the 19th January, 2026

S.O. 7.—In exercise of the powers conferred by sub-rules (2) and (4) of rule 10 of the Official Languages

(Use for Official Purposes of the Union) Rules, 1976, the Central Government hereby notifies the office of the

Principal Director of Audit (Central), Karnataka, Bengaluru under the Indian Audit and Accounts Department

wherein eighty per cent. of the staff have acquired working knowledge of Hindi.

[F. No. A-12034/01/2026-EG]

RAMESHWAR KUMAR, Under Secy.

सहकाररता मंत्रालय

नई ददल्ली, 13 जनवरी, 2026

का.आ. 8.—केंरीय सरकार, राजभाषा (संघ के िासकीय प्रयोजनों के जलए प्रयोग) जनयम, 1976 के जनयम 10 के

उपजनयम (4) के अनुसरण में सहकाररता मंत्रालय के अधीन रा्‍ रीय सहकारी प्रजिक्षण पररषद के जन नजलजखत अधीनस्ट् थ

कायाालय में 80% से अजधक कमाचारीवृंद को हहदी का कायासाधक ज्ञान हो जाने के फलस्ट् वप प एतद् द्वारा अजधसूजचत

करती हज:

सहकारी प्रबंध संस्ट् थान

कण्णुर, केरल

[फा. सं. ई-14018/1/2024- सहकाररता मंत्रालय/098]

अफसर अहमद, जनदेिक

MINISTRY OF COOPERATION

New Delhi, the 13th January, 2026

S.O. 8.—In pursuance of sub-rule (4) of Rule 10 of the Official Languages (Use for Official Purpose of the

Union) Rules, 1976; the Central Government hereby notifies the under mentioned subordinate office of National

Council for Cooperative Training under the Ministry of Cooperation wherein more than 80% of the staff have

acquired the working knowledge of Hindi:

Institute Of Cooperative Management

Kannur, Kerala

[F. No. E-14018/1/2024-MoC/098]

AFSAR AHMED, Director

पेरोजलयम और प्राकृजतक गजस मंत्रालय

नई ददल्ली, 12 जनवरी, 2026

का.आ. 9.—पेरोजलयम और खजनज पाइपलाइन (भूजम में उपयोग के अजधकार का अजधग्रहण) अजधजनयम, 1962

(1962 का 50), (इसके बाद उक्त अजधजनयम कहा जाएगा) की धारा 2 की उपधारा (क) के अनुसरण में, केंर सरकार उक्त

अजधजनयम के अधीन नीचे दी गई ताजलका के कॉलम (1) में उजल्लजखत व्यजक्त को कॉलम (2) में उजल्लजखत क्षेत्रों के संबंध

में कॉलम (3) में उजल्लजखत इंजडयन ऑयल कॉपोरेिन जलजमटेड के पररचालन पेरोजलयम पाइपलाइनों के जलए सक्षम

प्राजधकारी के कायों को करने के जलए अजधकृत करती हज।

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

9

व्यजक्त का नाम एवं पता

क्षेत्राजधकार क्षेत्र

पेरोजलयम पाइपलाइनों का नाम

(1)

(2)

(3)

श्री सुकान्ता मण्डल,

प्रचालन प्रबंधक,

इंजडयन ऑयल कॉपोरेिन जलजमटेड,

पूवी क्षेत्र पाइपलाइन्स,

दुगाापुर

पजिम बंगाल

राज्य

1. हजल्दया

मौरीग्राम

राजबंध

पाइपलाइन

(एचएमआरबीपीएल)

2. हजल्दया बरौनी पाइपलाइन (एचबीपीएल)

3. गुवाहाटी जसलीगुड़ी पाइपलाइन (जीएसपीएल)

4. कोलकाता एटीएफ पाइपलाइन (के-एटीएफ लाइन)

5. पारादीप हजल्दया बरौनी पाइपलाइन (पीएचबीपीएल)

6. पारादीप

सोमनाथपुर

हजल्दया

पाइपलाइन

(पीएसएचपीएल)

7. 30" हजल्दया बरौनी पाइपलाइन (30" एचबीपीएल)

8. पारादीप हजल्दया बरौनी मोजतहारी पाइपलाइन

(पीएचएमबीपीएल)

इससे पुबा एस.ओ. सं्‍या 1810 ददनांक 20.11.2023 के अंतगात भारत के राजपत्र में ददनांक 25.11.2023 प्रकाजित

पजिम बंगाल राज्य में इंजडयन ऑयल कॉपोरेिन जलजमटेड के जलए पहले अजधसूजचत सक्षम प्राजधकारी, जयदेव मन्ना,

महाप्रबंधक (अनुरक्षण), इंजडयन ऑयल कॉपोरेिन जलजमटेड, पूवी क्षेत्र पाइपलाइन्स, कोलकाता को डी- नोरटफ़ाइड

समझा जाए।

यह अजधसूचना इसके जारी होने की तारीख से प्रभावी होगी।

[फा. सं. आर -11025(11)/19/2018-ओआर-I/ई-27024]

िजि िेखर हसह, अवर सजचव

MINISTRY OF PETROLEUM AND NATURAL GAS

New Delhi, the 12th January, 2026

S.O. 9.—In Pursuance of sub section (a) of section 2 of the Petroleum and Minerals Pipeline (Acquisition of

Right of Users in Land) Act 1962 (50 of 1962), (hereinafter called the said act), the Central Government hereby

authorizes the person mentioned in column (1) of the table given below to perform the functions of the Competent

authority under the said Act for IndianOil Corporation Limited in respect of areas mentioned in column (2) for its

operational petroleum pipelines laid under the said Act mentioned in column (3) of the said Table:

Name & Address of Person

Area of

Jurisdiction

Name of Petroleum Pipelines (s)

(1)

(2)

(3)

Shri Sukanta Mondal

Operations Manager,

Indian Oil Corporation Limited,

Eastern Region Pipelines, Durgapur

West Bengal

State

1. Haldia Mourigram Rajbandh Pipeline (HMRBPL)

2. Haldia Barauni Pipeline (HBPL)

3. Guwahati Siliguri Pipeline (GSPL)

4. Kolkata ATF Pipeline (Kol-ATF Line)

5. Paradip Haldia Barauni Pipeline (PHBPL)

6. Paradip Somnathpur Haldia Product Pipeline

(PSHPL)

7. 30" Haldia Barauni Pipeline (30" HBPL)

8. Paradip Haldia Barauni Motihari Pipeline

(PHBMPL)

10

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Earlier notified Competent Authority for Indian Oil Corporation Limited in West Bengal State, Shri Jayadeb Manna,

General Manager (Maintenance), Indian Oil Corporation Limited, Eastern Region Pipelines, Kolkata., vide S.O. No.

1810 dated 20.11.2023 published in the Gazette of India dated 25.11.2023 stands de-notified.

The Notification will be effective from the date of its issue.

[F. No. R -11025(11)/19/2018-OR-I/E-27024]

SHASHI SHEKHAR SINGH, Under Secy.

नई ददल्ली, 15 जनवरी, 2026

का.आ. 10. — isVªksfy;e vkSj [kfut ikbiykbu ¼Hkwfe esa mi;ksx ds vf/kdkj dk vtZu½

vf/kfu;e] 1962 ¼1962 dk 50½ ds fu;e 2 ¼d½ ds varxZr eSllZ fjyk;al bZFksu ikbiykbu fyfeVsM ¼vkj-bZ-

ih-,y½ ds }kjk egkjk’V jkT; esa bZFksu ikbiykbu fcNkbZ tkus gsrq l{ke izkf/kdkjh ds —R;ksa dk fuoZgu djus

ds fy,] Hkkjr ljdkj ds isVªksfy;e vkSj izk—frd xSl ea=ky; dh] Hkkjr ds jkti= fnukad 6 vxLr] 2022

dks izdkf”kr vf/klwpuk dk-vk- 3719 ¼v½ fnukad 4 vxLr] 2022 }kjk izkf/k—r] esSa] vfuy ukFkwjke lkoar] mi

lekgrkZ ¼lsokfuo`Rr½] isVªksfy;e vkSj [kfut ikbiykbu ¼Hkwfe esa mi;ksx ds vf/kdkj dk vtZu½ fu;ekoyh]

1963 ds fu;e 4 ds mi&fu;e ¼1½ ds uhps nh xbZ ifjHkk"kk ¼1½ ds vUrxZr vf/kdkjksa ds vuqikyu esa] eSllZ

vkj-bZ-ih-,y-] ftlesa ;FkkfLFkr] ml {ks= esa Hkwfe esa mi;ksx dk vf/kdkj fufgr fd;k x;k gS vkSj ml {ks= esa

ikbiykbu dk LokfeRo fufgr gS] ds ijke”kZ ls layXu vuqlwph ds LrEHk 4 esa egkjk’Vª jkT; ds ftyk jk;xM

esa izpkyu dh lekfIr dh rkjh[ksa ?kksf’kr djrk gw¡A

1

'ksMk'kh

1397¼v½

fnukad

07&04&2016

30&04&2018

1749¼v½

fnukad

18&04&2018

30&04&2018

2

xkxksns cqnzqd

1397¼v½

fnukad

07&04&2016

27&01&2023

2675¼v½

fnukad

08&08&2016

27&01&2023

1747¼v½

fnukad

18&04&2018

27&01&2023

1749¼v½

fnukad

18&04&2018

27&01&2023

6145¼v½

fnukad

27&12&2022

27&01&2023

3

ikusM

1397¼v½

fnukad

07&04&2016

25&07&2024

1747¼v½

fnukad

18&04&2018

25&07&2024

6145¼v½

fnukad

27&12&2022

25&07&2024

2530¼v½

fnukad

25&06&2024

25&07&2024

4

dkekyhZ

1397¼v½

fnukad

07&04&2016

31&03&2018

5

dqjeqjyh

1909¼v½

fnukad

25&05&2016

31&03&2018

1747¼v½

fnukad

18&04&2018

31&03&2018

1749¼v½

fnukad

18&04&2018

31&03&2018

6

vk/kj.ks

1909¼v½

fnukad

25&05&2016

27&01&2023

2675¼v½

fnukad

08&08&2016

27&01&2023

6145¼v½

fnukad

27&12&2022

27&01&2023

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

11

7

rGoyh

1909¼v½

fnukad

25&05&2016

25&07&2024

2675¼v½

fnukad

08&08&2016

25&07&2024

6145¼v½

fnukad

27&12&2022

25&07&2024

2530¼v½

fnukad

25&06&2024

25&07&2024

8

”ks.ks

1909¼v½

fnukad

25&05&2016

27&01&2023

1749¼v½

fnukad

18&04&2018

27&01&2023

6145¼v½

fnukad

27&12&2022

27&01&2023

9

cksjxkao

1909¼v½

fnukad

25&05&2016

25&07&2024

2675¼v½

fnukad

08&08&2016

25&07&2024

1747¼v½

fnukad

18&04&2018

25&07&2024

1749¼v½

fnukad

18&04&2018

25&07&2024

6145¼v½

fnukad

27&12&2022

25&07&2024

2530¼v½

fnukad

25&06&2024

25&07&2024

10

is.k xzkeh.k

1911¼v½

fnukad

25&05&2016

27&01&2023

3266¼v½

fnukad

20&10&2016

27&01&2023

1748¼v½

fnukad

18&04&2018

27&01&2023

6145¼v½

fnukad

27&12&2022

27&01&2023

11

jksMs

1397¼v½

fnukad

07&04&2016

31&03&2018

12

ft.ksZ

1910¼v½

fnukad

25&05&2016

31&03&2018

2207¼v½

fnukad

21&06&2016

31&03&2018

2675¼v½

fnukad

08&08&2016

31&03&2018

1747¼v½

fnukad

18&04&2018

31&03&2018

1749¼v½

fnukad

18&04&2018

31&03&2018

1750¼v½

fnukad

18&04&2018

31&03&2018

1752¼v½

fnukad

18&04&2018

31&03&2018

13

dyn

1910¼v½

fnukad

25&05&2016

27&01&2023

2207¼v½

fnukad

21&06&2016

27&01&2023

1749¼v½

fnukad

18&04&2018

27&01&2023

6145¼v½

fnukad

27&12&2022

27&01&2023

14

fuxMs

1909¼v½

fnukad

25&05&2016

30&06&2018

2207¼v½

fnukad

21&06&2016

30&06&2018

15

vkeVse

2206¼v½

fnukad

13&06&2016

30&06&2018

1747¼v½

fnukad

18&04&2018

30&06&2018

16

rGs[kkj

2206¼v½

fnukad

13&06&2016

27&01&2023

2675¼v½

fnukad

08&08&2016

27&01&2023

1747¼v½

fnukad

18&04&2018

27&01&2023

6145¼v½

fnukad

27&12&2022

27&01&2023

17

eqa<k.kh

1910¼v½

fnukad

25&05&2016

27&01&2023

12

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

2675¼v½

fnukad

08&08&2016

27&01&2023

6145¼v½

fnukad

27&12&2022

27&01&2023

18

>ksrhjikMk

2001¼v½

fnukad

02&06&2016

11&07&2024

136¼v½

fnukad

28&12&2022

11&07&2024

2283¼v½

fnukad

11&06&2024

11&07&2024

isVªksfy;e vkSj [kfut ikbiykbu ¼Hkwfe es mi;ksx ds vf/kdkj dk vtZu½ vf/kfu;e]1962 dh /kkjk 17 ds varxZr lajfpr

isVªksfy;e vkSj [kfut ikbiykbu ¼Hkwfe es mi;ksx ds vf/kdkj dk vtZu½ fu;e] 1963 ds fu;e 4 ds varxZr Hkkjr ljdkj

ds jkti= esa izdk'kukFkZ

[Qk- la- ,y--14014/49/2018-th-ih-&II(bZ%&44293)]

jketh yky ehuk, voj lfpo

New Delhi, the 15th January, 2026

S.O. 10.—In pursuance of powers conferred by Explanation 1 below sub-rule (1) of Rule 4 of the Petroleum

and Minerals Pipelines (Acquisition of Right of User in Lands) Rules, 1963, I, Anil Nathuram Sawant, Deputy

Collector (Retired), authorized by Government of India, Ministry of Petroleum & Natural Gas vide Notification

S.O.3719 (E) dated 4th Aug, 2022 (published in the Gazette of India on 6th Aug, 2022) under Section 2(a) of the

Petroleum & Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962(50 of 1962) to perform the

functions of Competent Authority for laying Ethane Pipeline by M/s Reliance Ethane Pipeline Limited (REPL) in the

State of Maharashtra, in consultation with M/s REPL, to whom the Right of User in the land in that area has been

vested and in whom the ownership of the pipeline in that area vests, hereby declare the dates, mentioned in Column 4

of the Schedule annexed herewith, as the dates of Termination of Operations in District Raigad in the State of

Maharashtra.

SCHEDULE

Mandal/Tehsil/Taluk: Pen

District : Raigad

State : Maharashtra

Sl.

No.

Village

S.O. No. and Date of Notification under sub-

section (1) & (4) of Section 6

Date of Termination

of Operation

1

2

3

4

1

Shedashi

1397(E)

Date

07-04-2016

30-04-2018

1749(E)

Date

18-04-2018

30-04-2018

2

Gagode Budruk

1397(E)

Date

07-04-2016

27-01-2023

2675(E)

Date

08-08-2016

27-01-2023

1747(E)

Date

18-04-2018

27-01-2023

1749(E)

Date

18-04-2018

27-01-2023

6145(E)

Date

27-12-2022

27-01-2023

3

Paned

1397(E)

Date

07-04-2016

25-07-2024

1747(E)

Date

18-04-2018

25-07-2024

6145(E)

Date

27-12-2022

25-07-2024

2530(E)

Date

25-06-2024

25-07-2024

4

Kamarli

1397(E)

Date

07-04-2016

31-03-2018

5

Kurmurli

1909(E)

Date

25-05-2016

31-03-2018

1747(E)

Date

18-04-2018

31-03-2018

1749(E)

Date

18-04-2018

31-03-2018

6

Adharne

1909(E)

Date

25-05-2016

27-01-2023

2675(E)

Date

08-08-2016

27-01-2023

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

13

6145(E)

Date

27-12-2022

27-01-2023

7

Talavali

1909(E)

Date

25-05-2016

25-07-2024

2675(E)

Date

08-08-2016

25-07-2024

6145(E)

Date

27-12-2022

25-07-2024

2530(E)

Date

25-06-2024

25-07-2024

8

Shene

1909(E)

Date

25-05-2016

27-01-2023

1749(E)

Date

18-04-2018

27-01-2023

6145(E)

Date

27-12-2022

27-01-2023

9

Borgaon

1909(E)

Date

25-05-2016

25-07-2024

2675(E)

Date

08-08-2016

25-07-2024

1747(E)

Date

18-04-2018

25-07-2024

1749(E)

Date

18-04-2018

25-07-2024

6145(E)

Date

27-12-2022

25-07-2024

2530(E)

Date

25-06-2024

25-07-2024

10

Pen Gramin

1911(E)

Date

25-05-2016

27-01-2023

3266(E)

Date

20-10-2016

27-01-2023

1748(E)

Date

18-04-2018

27-01-2023

6145(E)

Date

27-12-2022

27-01-2023

11

Rode

1397(E)

Date

07-04-2016

31-03-2018

12

Jirne

1910(E)

Date

25-05-2016

31-03-2018

2207(E)

Date

21-06-2016

31-03-2018

2675(E)

Date

08-08-2016

31-03-2018

1747(E)

Date

18-04-2018

31-03-2018

1749(E)

Date

18-04-2018

31-03-2018

1750(E)

Date

18-04-2018

31-03-2018

1752(E)

Date

18-04-2018

31-03-2018

13

Kalad

1910(E)

Date

25-05-2016

27-01-2023

2207(E)

Date

21-06-2016

27-01-2023

1749(E)

Date

18-04-2018

27-01-2023

6145(E)

Date

27-12-2022

27-01-2023

14

Nigade

1909(E)

Date

25-05-2016

30-06-2018

2207(E)

Date

21-06-2016

30-06-2018

15

Amtem

2206(E)

Date

13-06-2016

30-06-2018

1747(E)

Date

18-04-2018

30-06-2018

16

Talekhar

2206(E)

Date

13-06-2016

27-01-2023

2675(E)

Date

08-08-2016

27-01-2023

1747(E)

Date

18-04-2018

27-01-2023

6145(E)

Date

27-12-2022

27-01-2023

17

Mundhani

1910(E)

Date

25-05-2016

27-01-2023

2675(E)

Date

08-08-2016

27-01-2023

14

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

6145(E)

Date

27-12-2022

27-01-2023

18

Jhotirpada

2001(E)

Date

02-06-2016

11-07-2024

136(E)

Date

28-12-2022

11-07-2024

2283(E)

Date

11-06-2024

11-07-2024

Published in the Official Gazette of India under Rule 4 of the P&MP (ARUL) Rules 1963, framed under Section 17 of

P&MP (ARUL) Act, 1962

[F. No. L-14014/49/2018-GP-II(E:-44293)]

RAMJI LAL MEENA , Under Secy.

नई ददल्ली, 15 जनवरी, 2026

का.आ. 11. — isVªksfy;e vkSj [kfut ikbiykbu ¼Hkwfe esa mi;ksx ds vf/kdkj dk vtZu½

vf/kfu;e] 1962 ¼1962 dk 50½ ds fu;e 2 ¼d½ ds varxZr eSllZ fjyk;al bZFksu ikbiykbUk fyfeVsM ¼vkj-bZ-

ih-,y½ ds }kjk egkjk’V jkT; esa bZFksu ikbiykbu fcNkbZ tkus gsrq l{ke izkf/kdkjh ds —R;ksa dk fuoZgu djus

ds fy,] Hkkjr ljdkj ds isVªksfy;e vkSj izk—frd xSl ea=ky; dh] Hkkjr ds jkti= fnukad 6 vxLr] 2022

dks izdkf”kr vf/klwpuk dk-vk- 3719 ¼v½ fnukad 4 vxLr] 2022 }kjk izkf/k—r] esSa] vfuy ukFkwjke lkoar] mi

lekgrkZ ¼lsokfuo`Rr½] isVªksfy;e vkSj [kfut ikbiykbu ¼Hkwfe esa mi;ksx ds vf/kdkj dk vtZu½ fu;ekoyh]

1963 ds fu;e 4 ds mi&fu;e ¼1½ ds uhps nh xbZ ifjHkk"kk ¼1½ ds vUrxZr vf/kdkjksa ds vuqikyu esa] eSllZ

vkj-bZ-ih-,y-] ftlesa ;FkkfLFkr] ml {ks= esa Hkwfe esa mi;ksx dk vf/kdkj fufgr fd;k x;k gS vkSj ml {ks= esa

ikbiykbu dk LokfeRo fufgr gS] ds ijke”kZ ls layXu vuqlwph ds LrEHk 4 esa egkjk’Vª jkT; ds ftyk iky?kj

esa izpkyu dh lekfIr dh rkjh[ksa ?kksf’kr djrk gw¡A

1

miyV

2771¼v½

fnukad

30&09&2015

27&08&2023

1836¼v½

fnukad

01&05&2018

27&08&2023

2

ojokMk

2771¼v½

fnukad

30&09&2015

28&01&2023

138 ¼v½

fnukad

28&12&2022

28&01&2023

3

rykljh

2771¼v½

fnukad

30&09&2015

28&01&2023

1836¼v½

fnukad

01&05&2018

28&01&2023

138 ¼v½

fnukad

28&12&2022

28&01&2023

4

bZHkkMikMk

2771¼v½

fnukad

30&09&2015

31&10&2017

5

lqrkjikMk

2771¼v½

fnukad

30&09&2015

31&10&2017

6

BkdjikMk

2771¼v½

fnukad

30&09&2015

31&10&2017

1836¼v½

fnukad

01&05&2018

31&10&2017

7

oMoyh

2771¼v½

fnukad

30&09&2015

28&01&2023

138 ¼v½

fnukad

28&12&2022

28&01&2023

1

foy'ksr

2771¼v½

fnukad

30&09&2015

31&10&2017

3393¼v½

fnukad

27&10&2016

31&10&2017

1836¼v½

fnukad

01&05&2018

31&10&2017

2

dksaMxko

2771¼v½

fnukad

30&09&2015

25&07&2024

3393¼v½

fnukad

27&10&2016

25&07&2024

1609¼v½

fnukad

12&04&2018

25&07&2024

2529¼v½

fnukad

25&06&2024

25&07&2024

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

15

3

rGoyh rQsZ lkrdksj

2771¼v½

fnukad

30&09&2015

25&07&2024

3393¼v½

fnukad

27&10&2016

25&07&2024

1609¼v½

fnukad

12&04&2018

25&07&2024

2156¼v½

fnukad

28&04&2022

25&07&2024

2529¼v½

fnukad

25&06&2024

25&07&2024

4

Hkksiksyh

2771¼v½

fnukad

30&09&2015

31&10&2017

5

f'ky

2771¼v½

fnukad

30&09&2015

31&10&2017

6

Egljksyh

2771¼v½

fnukad

30&09&2015

25&07&2024

2860¼v½

fnukad

29&08&2016

25&07&2024

352¼v½

fnukad

20&01&2017

25&07&2024

1609¼v½

fnukad

12&04&2018

25&07&2024

1836¼v½

fnukad

01&05&2018

25&07&2024

138 ¼v½

fnukad

28&12&2022

25&07&2024

2529¼v½

fnukad

25&06&2024

25&07&2024

7

dq>sZ

2771¼v½

fnukad

30&09&2015

31&05&2018

1836¼v½

fnukad

01&05&2018

31&05&2018

isVªksfy;e vkSj [kfut ikbiykbu ¼Hkwfe es mi;ksx ds vf/kdkj dk vtZu½ vf/kfu;e]1962 dh /kkjk 17 ds varxZr lajfpr isVªksfy;e vkSj [kfut

ikbiykbu ¼Hkwfe es mi;ksx ds vf/kdkj dk vtZu½ fu;e] 1963 ds fu;e 4 ds varxZr Hkkjr ljdkj ds jkti= esa izdk'kukFkZ

[Qk- la- ,y-- 14014/49/2018-th-ih-&II (bZ%-44293)]

jketh yky ehuk, voj lfpo

New Delhi, the 15th January, 2026

S.O. 11.—In pursuance of powers conferred by Explanation 1 below sub-rule (1) of Rule 4 of the Petroleum

and Minerals Pipelines (Acquisition of Right of User in Lands) Rules, 1963, I, Anil Nathuram Sawant, Deputy

Collector (Retired), authorized by Government of India, Ministry of Petroleum & Natural Gas vide Notification

S.O.3719 (E) dated 4th Aug, 2022 (published in the Gazette of India on 6th Aug, 2022) under Section 2(a) of the

Petroleum & Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962(50 of 1962) to perform the

functions of Competent Authority for laying Ethane Pipeline by M/s Reliance Ethane Pipeline Limited (REPL) in the

State of Maharashtra, in consultation with M/s REPL, to whom the Right of User in the land in that area has been

vested and in whom the ownership of the pipeline in that area vests, hereby declare the dates, mentioned in Column 4

of the Schedule annexed herewith, as the dates of Termination of Operations in District Palghar in the State of

Maharashtra.

SCHEDULE

Mandal/Tehsil/ Taluk: Talasari

District : Palghar

State : Maharashtra

Sl.

No.

Village

S.O. No. and Date of Notification under

sub-section (1) & (4) of Section 6

Date of Termination

of Operation

1

2

3

4

1

Uplat

2771(E)

Date

30-09-2015

27-08-2023

1836(E)

Date

01-05-2018

27-08-2023

2

Varvade

2771(E)

Date

30-09-2015

28-01-2023

138 (E)

Date

28-12-2022

28-01-2023

3

Talasari

2771(E)

Date

30-09-2015

28-01-2023

1836(E)

Date

01-05-2018

28-01-2023

138 (E)

Date

28-12-2022

28-01-2023

4

Ibhadpada

2771(E)

Date

30-09-2015

31-10-2017

5

Sutarpada

2771(E)

Date

30-09-2015

31-10-2017

16

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

6

Thakarpada

2771(E)

Date

30-09-2015

31-10-2017

1836(E)

Date

01-05-2018

31-10-2017

7

Vadavali

2771(E)

Date

30-09-2015

28-01-2023

138 (E)

Date

28-12-2022

28-01-2023

Mandal/Tehsil/Taluk: Vikramgad

District : Palghar

State : Maharashtra

1

Vilshet

2771(E)

Date

30-09-2015

31-10-2017

3393(E)

Date

27-10-2016

31-10-2017

1836(E)

Date

01-05-2018

31-10-2017

2

Kondgaon

2771(E)

Date

30-09-2015

25-07-2024

3393(E)

Date

27-10-2016

25-07-2024

1609(E)

Date

12-04-2018

25-07-2024

2529(E)

Date

25-06-2024

25-07-2024

3

Talavali Tarf Satkor

2771(E)

Date

30-09-2015

25-07-2024

3393(E)

Date

27-10-2016

25-07-2024

1609(E)

Date

12-04-2018

25-07-2024

2156 (E)

Date

28-04-2022

25-07-2024

2529(E)

Date

25-06-2024

25-07-2024

4

Bhopoli

2771(E)

Date

30-09-2015

31-10-2017

5

Shil

2771(E)

Date

30-09-2015

31-10-2017

6

Mhasroli

2771(E)

Date

30-09-2015

25-07-2024

2860(E)

Date

29-08-2016

25-07-2024

352(E)

Date

20-01-2017

25-07-2024

1609(E)

Date

12-04-2018

25-07-2024

1836(E)

Date

01-05-2018

25-07-2024

138 (E)

Date

28-12-2022

25-07-2024

2529(E)

Date

25-06-2024

25-07-2024

7

Kurze

2771(E)

Date

30-09-2015

31-05-2018

1836(E)

Date

01-05-2018

31-05-2018

Published in the Official Gazette of India under Rule 4 of the P&MP (ARUL) Rules 1963, framed under Section 17 of P&MP (ARUL)

Act, 1962

[F.No. L-14014/49/2018-GP-II (E:-44293]

RAMJI LAL MEENA , Under Secy.

नई ददल्ली, 15 जनवरी, 2026

का.आ. 12. — isVªksfy;e vkSj [kfut ikbiykbu ¼Hkwfe esa mi;ksx ds vf/kdkj dk vtZu½

vf/kfu;e] 1962 ¼1962 dk 50½ ds fu;e 2 ¼d½ ds varxZr eSllZ fjyk;al bZFksu ikbiykbu fyfeVsM ¼vkj-bZ-

ih-,y½ ds }kjk egkjk’V jkT; esa bZFksu ikbiykbu fcNkbZ tkus gsrq l{ke izkf/kdkjh ds —R;ksa dk fuoZgu djus

ds fy,] Hkkjr ljdkj ds isVªksfy;e vkSj izk—frd xSl ea=ky; dh] Hkkjr ds jkti= fnukad 6 vxLr] 2022

dks izdkf”kr vf/klwpuk dk-vk- 3719 ¼v½ fnukad 4 vxLr] 2022 }kjk izkf/k—r] esSa] vfuy ukFkwjke lkoar] mi

lekgrkZ ¼lsokfuo`Rr½] isVªksfy;e vkSj [kfut ikbiykbu ¼Hkwfe esa mi;ksx ds vf/kdkj dk vtZu½ fu;ekoyh]

1963 ds fu;e 4 ds mi&fu;e ¼1½ ds uhps nh xbZ ifjHkk"kk ¼1½ ds vUrxZr vf/kdkjksa ds vuqikyu esa] eSllZ

vkj-bZ-ih-,y-] ftlesa ;FkkfLFkr] ml {ks= esa Hkwfe esa mi;ksx dk vf/kdkj fufgr fd;k x;k gS vkSj ml {ks= esa

ikbiykbu dk LokfeRo fufgr gS] ds ijke”kZ ls layXu vuqlwph ds LrEHk 4 esa egkjk’Vª jkT; ds ftyk Bk.ks esa

izpkyu dh lekfIr dh rkjh[ksa ?kksf’kr djrk gw¡A

1

fn?kk'kh

2669¼v½

fnukad

24&09&2015

05&05&2024

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

17

137¼v½

fnukad

28&12&2022

05&05&2024

655

fnukad

05&04&2024

05&05&2024

2

nyksaMs

2669¼v½

fnukad

24&09&2015

31&07&2018

3

[kfjoyh

2669¼v½

fnukad

24&09&2015

31&07&2018

4

xksUnzkoyh

2669¼v½

fnukad

24&09&2015

31&07&2018

5

tkafHkoyh

2669¼v½

fnukad

24&09&2015

28&01&2023

137¼v½

fnukad

28&12&2022

28&01&2023

6

nkHkkM

2669¼v½

fnukad

24&09&2015

31&07&2018

3391¼v½

fnukad

27&10&2016

31&07&2018

7

fdjoyh

2669¼v½

fnukad

24&09&2015

05&05&2024

353¼v½

fnukad

20&01&2017

05&05&2024

137¼v½

fnukad

28&12&2022

05&05&2024

655

fnukad

05&04&2024

05&05&2024

8

yki cqnzqd

2669¼v½

fnukad

24&09&2015

05&05&2024

137¼v½

fnukad

28&12&2022

05&05&2024

655

fnukad

05&04&2024

05&05&2024

9

[kkfyax cqnzqd

2669¼v½

fnukad

24&09&2015

25&07&2024

137¼v½

fnukad

28&12&2022

25&07&2024

2527¼v½

fnukad

25&06&2024

25&07&2024

10

nYgsikMk

2669¼v½

fnukad

24&09&2015

05&05&2024

137¼v½

fnukad

28&12&2022

05&05&2024

655

fnukad

05&04&2024

05&05&2024

11

dq:an

2669¼v½

fnukad

24&09&2015

28&01&2023

137¼v½

fnukad

28&12&2022

28&01&2023

12

vtqZuyh

2669¼v½

fnukad

24&09&2015

05&05&2024

655

fnukad

05&04&2024

05&05&2024

13

iM?ks

2669¼v½

fnukad

24&09&2015

31&01&2018

14

Hkknk.ks

2669¼v½

fnukad

24&09&2015

31&01&2018

isVªksfy;e vkSj [kfut ikbiykbu ¼Hkwfe es mi;ksx ds vf/kdkj dk vtZu½ vf/kfu;e]1962 dh /kkjk 17 ds varxZr lajfpr

isVªksfy;e vkSj [kfut ikbiykbu ¼Hkwfe es mi;ksx ds vf/kdkj dk vtZu½ fu;e] 1963 ds fu;e 4 ds varxZr Hkkjr ljdkj

ds jkti= esa izdk'kukFkZ

[Qk-la- ,y--14014/49/2018-th-ih-&II(bZ%&44293)]

jketh yky ehuk, voj lfpo

New Delhi, the 15th January, 2026

S.O. 12.—In pursuance of powers conferred by Explanation 1 below sub-rule (1) of Rule 4 of the Petroleum

and Minerals Pipelines (Acquisition of Right of User in Lands) Rules, 1963, I, Anil Nathuram Sawant, Deputy

Collector (Retired), authorized by Government of India, Ministry of Petroleum & Natural Gas vide Notification

S.O.3719 (E) dated 4th Aug, 2022 (published in the Gazette of India on 6th Aug, 2022) under Section 2(a) of the

Petroleum & Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962(50 of 1962) to perform the

functions of Competent Authority for laying Ethane Pipeline by M/s Reliance Ethane Pipeline Limited (REPL) in the

State of Maharashtra, in consultation with M/s REPL, to whom the Right of User in the land in that area has been

18

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

vested and in whom the ownership of the pipeline in that area vests, hereby declare the dates, mentioned in Column 4

of the Schedule annexed herewith, as the dates of Termination of Operations in District Thane in the State of

Maharashtra.

SCHEDULE

Mandal/Tehsil/ Taluk: Bhiwandi

District : Thane

State : Maharashtra

Sl.

No.

Village

S.O. No. and Date of Notification under sub-

section (1) & (4) of Section 6

Date of Termination

of Operation

1

2

3

4

1

Dighashi

2669(E)

Date

24-09-2015

05-05-2024

137 (E)

Date

28-12-2022

05-05-2024

655

Date

05-04-2024

05-05-2024

2

Dalonde

2669(E)

Date

24-09-2015

31-07-2018

3

Kharivali

2669(E)

Date

24-09-2015

31-07-2018

4

Gondravali

2669(E)

Date

24-09-2015

31-07-2018

5

Jambhivali

2669(E)

Date

24-09-2015

28-01-2023

137 (E)

Date

28-12-2022

28-01-2023

6

Dabhad

2669(E)

Date

24-09-2015

31-07-2018

3391(E)

Date

27-10-2016

31-07-2018

7

Kiravali

2669(E)

Date

24-09-2015

05-05-2024

353(E)

Date

20-01-2017

05-05-2024

137 (E)

Date

28-12-2022

05-05-2024

655

Date

05-04-2024

05-05-2024

8

Lap Budruk

2669(E)

Date

24-09-2015

05-05-2024

137 (E)

Date

28-12-2022

05-05-2024

655

Date

05-04-2024

05-05-2024

9

Khaling Budruk

2669(E)

Date

24-09-2015

25-07-2024

137 (E)

Date

28-12-2022

25-07-2024

2527(E)

Date

25-06-2024

25-07-2024

10

Dalepada

2669(E)

Date

24-09-2015

05-05-2024

137 (E)

Date

28-12-2022

05-05-2024

655

Date

05-04-2024

05-05-2024

11

Kurund

2669(E)

Date

24-09-2015

28-01-2023

137 (E)

Date

28-12-2022

28-01-2023

12

Arjunali

2669(E)

Date

24-09-2015

05-05-2024

655

Date

05-04-2024

05-05-2024

13

Padgha

2669(E)

Date

24-09-2015

31-01-2018

14

Bhadane

2669(E)

Date

24-09-2015

31-01-2018

Published in the Official Gazette of India under Rule 4 of the P&MP (ARUL) Rules 1963, framed under Section 17 of

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

19

P&MP (ARUL) Act, 1962

[F. No. L-14014/49/2018-GP-II(E:-44293)]

RAMJI LAL MEENA , Under Secy.

नई ददल्ली, 15 जनवरी, 2026

का.आ. 13.—isVªksfy;e vkSj [kfut ikbiykbu ¼Hkwfe esa mi;ksx ds vf/kdkj dk vtZu½

vf/kfu;e] 1962 ¼1962 dk 50½ ds fu;e 2 ¼d½ ds varxZr eSllZ fjyk;al bZFksu ikbiykbUk fyfeVsM ¼vkj-bZ-

ih-,y½ ds }kjk egkjk’V jkT; esa bZFksu ikbiykbu fcNkbZ tkus gsrq l{ke izkf/kdkjh ds —R;ksa dk fuoZgu djus

ds fy,] Hkkjr ljdkj ds isVªksfy;e vkSj izk—frd xSl ea=ky; dh] Hkkjr ds jkti= fnukad 6 vxLr] 2022

dks izdkf”kr vf/klwpuk dk-vk- 3719¼v½ fnukad 4 vxLr] 2022 }kjk izkf/k—r] esSa] vfuy ukFkwjke lkoar] mi

lekgrkZ ¼lsokfuo`Rr½] isVªksfy;e vkSj [kfut ikbiykbu ¼Hkwfe esa mi;ksx ds vf/kdkj dk vtZu½ fu;ekoyh]

1963 ds fu;e 4 ds mi&fu;e ¼1½ ds uhps nh xbZ ifjHkk"kk ¼1½ ds vUrxZr vf/kdkjksa ds vuqikyu esa] eSllZ

vkj-bZ-ih-,y-] ftlesa ;FkkfLFkr] ml {ks= esa Hkwfe esa mi;ksx dk vf/kdkj fufgr fd;k x;k gS vkSj ml {ks= esa

ikbiykbu dk LokfeRo fufgr gS] ds ijke”kZ ls layXu vuqlwph ds LrEHk 4 esa egkjk’Vª jkT; ds ftyk iky?kj

esa izpkyu dh lekfIr dh rkjh[ksa ?kksf’kr djrk gw¡A

1

czkEg.kxko

2771¼v½

fnukad

30&09&2015

31&05&2018

1836¼v½

fnukad

01&05&2018

31&05&2018

2

lqiksaMk

2771¼v½

fnukad

30&09&2015

31&05&2018

1836¼v½

fnukad

01&05&2018

31&05&2018

3

dyae[kkaM

2771¼v½

fnukad

30&09&2015

31&05&2018

1836¼v½

fnukad

01&05&2018

31&05&2018

4

ekaMs

2771¼v½

fnukad

30&09&2015

31&07&2018

1836¼v½

fnukad

01&05&2018

31&07&2018

5

Hkksfioyh

2771¼v½

fnukad

30&09&2015

25&07&2024

1836¼v½

fnukad

01&05&2018

25&07&2024

138¼v½

fnukad

28&12&2022

25&07&2024

2529¼v½

fnukad

25&06&2024

25&07&2024

6

[kjhoyh rQsZ dksgkst

2771¼v½

fnukad

30&09&2015

25&07&2024

1836¼v½

fnukad

01&05&2018

25&07&2024

138¼v½

fnukad

28&12&2022

25&07&2024

3446¼v½

fnukad

27&07&2023

25&07&2024

2529¼v½

fnukad

25&06&2024

25&07&2024

7

vkafcLVs [kq-

2771¼v½

fnukad

30&09&2015

28&01&2023

20

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

1836¼v½

fnukad

01&05&2018

28&01&2023

138¼v½

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28&12&2022

28&01&2023

8

vkafcLVs cqnzqd

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30&09&2015

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28&01&2023

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28&12&2022

28&01&2023

9

[kkfuoyh

2771¼v½

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30&09&2015

30&04&2018

1836¼v½

fnukad

01&05&2018

30&04&2018

10

fcyks'kh

2771¼v½

fnukad

30&09&2015

27&03&2023

2459¼v½

fnukad

05&07&2016

27&03&2023

2863¼v½

fnukad

24&08&2016

27&03&2023

1836¼v½

fnukad

01&05&2018

27&03&2023

5725¼v½

fnukad

05&12&2022

27&03&2023

1041¼v½

fnukad

27&02&2023

27&03&2023

11

[kjhoyh rQsZ

ikSyckj

1281¼v½

fnukad

23&03&2016

27&03&2023

2863¼v½

fnukad

24&08&2016

27&03&2023

2155¼v½

fnukad

25&04&2022

27&03&2023

267¼v½

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28&12&2022

27&03&2023

1041¼v½

fnukad

27&02&2023

27&03&2023

12

fpap?kj

2771¼v½

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30&09&2015

25&07&2024

1281¼v½

fnukad

23&03&2016

25&07&2024

2863¼v½

fnukad

24&08&2016

25&07&2024

1743¼v½

fnukad

17&04&2018

25&07&2024

1836¼v½

fnukad

01&05&2018

25&07&2024

1041¼v½

fnukad

27&02&2023

25&07&2024

2528¼v½

fnukad

25&06&2024

25&07&2024

13

fot;xM

2771¼v½

fnukad

30&09&2015

27&03&2023

1281¼v½

fnukad

23&03&2016

27&03&2023

1041¼v½

fnukad

27&02&2023

27&03&2023

14

eqlkj.ks

2771¼v½

fnukad

30&09&2015

27&08&2023

1836¼v½

fnukad

01&05&2018

27&08&2023

138¼v½

fnukad

28&12&2022

27&08&2023

3446¼v½

fnukad

27&07&2023

27&08&2023

15

?kksulkbZ

2771¼v½

fnukad

30&09&2015

31&07&2018

1836¼v½

fnukad

01&05&2018

31&07&2018

16

esV

2771¼v½

fnukad

30&09&2015

31&07&2018

1836¼v½

fnukad

01&05&2018

31&07&2018

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

21

isVªksfy;e vkSj [kfut ikbiykbu ¼Hkwfe es mi;ksx ds vf/kdkj dk vtZu½ vf/kfu;e]1962 dh /kkjk 17 ds varxZr lajfpr

isVªksfy;e vkSj [kfut ikbiykbu ¼Hkwfe es mi;ksx ds vf/kdkj dk vtZu½ fu;e] 1963 ds fu;e 4 ds varxZr Hkkjr

ljdkj ds jkti= esa izdk'kukFkZ

[Qk-la- ,y--14014/49/2018-th-ih-&II(bZ%&44293)]

jketh yky ehuk, voj lfpo

New Delhi, the 15th January, 2026

S.O. 13.—In pursuance of powers conferred by Explanation 1 below sub-rule (1) of Rule 4 of the Petroleum

and Minerals Pipelines (Acquisition of Right of User in Lands) Rules, 1963, I, Anil Nathuram Sawant, Deputy

Collector (Retired), authorized by Government of India, Ministry of Petroleum & Natural Gas vide Notification

S.O.3719 (E) dated 4th Aug, 2022 (published in the Gazette of India on 6th Aug, 2022) under Section 2(a) of the

Petroleum & Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962(50 of 1962) to perform the

functions of Competent Authority for laying Ethane Pipeline by M/s Reliance Ethane Pipeline Limited (REPL) in the

State of Maharashtra, in consultation with M/s REPL, to whom the Right of User in the land in that area has been

vested and in whom the ownership of the pipeline in that area vests, hereby declare the dates, mentioned in Column 4

of the Schedule annexed herewith, as the dates of Termination of Operations in District Palghar in the State of

Maharashtra.

SCHEDULE

Mandal/Tehsil/ Taluk: Wada

District : Palghar

State : Maharashtra

Sl.

No.

Village

S. O. No. and Date of Notification under sub-

section (1) & (4) of Section 6

Date of Termination

of Operation

1

2

3

4

1

Brahmangaon

2771(E)

Date

30-09-2015

31-05-2018

1836(E)

Date

01-05-2018

31-05-2018

2

Suponda

2771(E)

Date

30-09-2015

31-05-2018

1836(E)

Date

01-05-2018

31-05-2018

3

Kalamkhand

2771(E)

Date

30-09-2015

31-05-2018

1836(E)

Date

01-05-2018

31-05-2018

4

Mande

2771(E)

Date

30-09-2015

31-07-2018

1836(E)

Date

01-05-2018

31-07-2018

5

Bhopivali

2771(E)

Date

30-09-2015

25-07-2024

1836(E)

Date

01-05-2018

25-07-2024

138 (E)

Date

28-12-2022

25-07-2024

2529 (E)

Date

25-06-2024

25-07-2024

6

Kharivali Tarf Kohoj

2771(E)

Date

30-09-2015

25-07-2024

1836(E)

Date

01-05-2018

25-07-2024

138 (E)

Date

28-12-2022

25-07-2024

3446(E)

Date

27-07-2023

25-07-2024

2529 (E)

Date

25-06-2024

25-07-2024

7

Ambiste Kd

2771(E)

Date

30-09-2015

28-01-2023

1836(E)

Date

01-05-2018

28-01-2023

138(E)

Date

28-12-2022

28-01-2023

8

Ambiste Bk

2771(E)

Date

30-09-2015

28-01-2023

1836(E)

Date

01-05-2018

28-01-2023

138 (E)

Date

28-12-2022

28-01-2023

9

Khanivali

2771(E)

Date

30-09-2015

30-04-2018

1836(E)

Date

01-05-2018

30-04-2018

22

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

10

Biloshi

2771(E)

Date

30-09-2015

27-03-2023

2459(E)

Date

05-07-2016

27-03-2023

2863(E)

Date

24-08-2016

27-03-2023

1836(E)

Date

01-05-2018

27-03-2023

5725(E)

Date

05-12-2022

27-03-2023

1041 (E)

Date

27-02-2023

27-03-2023

11

Kharivali Tarf Poulbar

1281(E)

Date

23-03-2016

27-03-2023

2863(E)

Date

24-08-2016

27-03-2023

2155 (E)

Date

25-04-2022

27-03-2023

267 (E)

Date

28-12-2022

27-03-2023

1041(E)

Date

27-02-2023

27-03-2023

12

Chinchghar

2771(E)

Date

30-09-2015

25-07-2024

1281(E)

Date

23-03-2016

25-07-2024

2863(E)

Date

24-08-2016

25-07-2024

1743(E)

Date

17-04-2018

25-07-2024

1836(E)

Date

01-05-2018

25-07-2024

1041(E)

Date

27-02-2023

25-07-2024

2528 (E)

Date

25-06-2024

25-07-2024

13

Vijaygad

2771(E)

Date

30-09-2015

27-03-2023

1281(E)

Date

23-03-2016

27-03-2023

1041 (E )

Date

27-02-2023

27-03-2023

14

Musarne

2771(E)

Date

30-09-2015

27-08-2023

1836(E)

Date

01-05-2018

27-08-2023

138(E)

Date

28-12-2022

27-08-2023

3446(E)

Date

27-07-2023

27-08-2023

15

Ghonsai

2771(E)

Date

30-09-2015

31-07-2018

1836(E)

Date

01-05-2018

31-07-2018

16

Met

2771(E)

Date

30-09-2015

31-07-2018

1836(E)

Date

01-05-2018

31-07-2018

Published in the Official Gazette of India under Rule 4 of the P&MP (ARUL) Rules 1963, framed under Section 17 of

P&MP (ARUL) Act, 1962

[F. No. L-14014/49/2018-GP-II(E:-44293)]

RAMJI LAL MEENA , Under Secy.

श्रम और रोजगार मंत्रालय

नई ददल्ली, 27 नव बर, 2025

का.आ. 14.—vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa] dsUnzh;

ljdkj आरआरएल ds izca/kra= ds lac) fu;kstdksa vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V vkS|ksfxd fookn esa

–सह–

] जबलपुर dsiapkV(केस आर/39//2006 और 49/2014

) dks

izdkf”kr djrh gS] tks dsUnzh; ljdkj dks

dks izkIr gqvk FkkA

[सं. एल-42012/212/2005-आई.आर.(सी.एम-II)]

[सं. एल-42012/22/2014-आई.आर.(डीयू)]

सलोनी, उप जनदेिक/हलक अजधकारी

MINISTRY OF LABOUR AND EMPLOYMENT

New Delhi, the 27th November, 2025

S.O. 14.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Case R/39//2006And 49/2014) of the Central Government Industrial

Tribunal-cum-Labour Court, Jabalpur as shown in the Annexure, in the industrial dispute between the

Management of RRL and their workmen, received by the Central Government on 27/11/2025.

[No. L-42012/212/2005– IR (CM-II)]

[No. L-42012/22/2014– IR (DU)]

SALONI, Dy. Director/Link Officer

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

23

ANNEXURE

THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, JABALPUR

1. NO. CGIT/LC/ R/39/2006

Present: P.K.Srivastava

H.J.S..(Retd)

The President,

R.R.L.Dainik Vetan Bhogi Karmachari Sangh,

LIG-SR-541 Katara Hills, Bagh Mughalia,

Bhopal (M.P.)

Workman

Vs

The Director,

Regional Research Laboratory,

(at present,

Advanced Material & Processes Research Institute)

Habibganj Naka, Bhopal (M.P.)

Management

WITH

2. NO. CGIT/LC/ R/49/2014

Bhavani Deen Shuklware,

S/o Shrikrishna Shuklware,

Shed No. 171/5, B-Sector, 100 Quarters,

Piplani, Bhopal (M.P.)

Workman

Vs

The Director,

Advanced Material & Processes Research Institute,

(Previously Regional Research Laboratory)

Hoshnagabad Road, Habibganj Naka,

Bhopal (M.P.)

Management

(JUDGMENT)

(Passed on this 26th day of September- 2025)

In case R/39/2006,

As per letter dated 31/07/2006 by the Government of India, Ministry of Labour, New Delhi, the reference

has been made to this Tribunal under Section-10 of Industrial Disputes Act, 1947 (in short the ‗Act’) as per

Notification No.L-42012/212/2005-IR(CM-II) dt. 31/07/2006. The dispute under reference relates to:-

“Whether the demand of Shri Awadhesh Kumar Sisodia for his reinstatement and issuing of appointment

letters to him and 94 others (as per list enclosed) by the Regional Research Laboratory and declaration of

them as permanent employees is legal and justified? If yes, to what relief they are entitled?”

In case R/49/2014:-

As per letter dated 27/05/2014 by the Government of India, Ministry of Labour, New Delhi, the reference has

been made to this Tribunal under Section-10 of Industrial Disputes Act, 1947 (in short the ‗Act’) as per Notification

No.L-42012/22/2014-IR(DU) dt. 27/05/2014. The dispute under reference relates to:-

24

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

“Whether the demand of Shri Bhavani Deen Shuklware for his reinstatement alongwith backwages by

AMPRI previously RRL, is legal and justified? If yes, to what relief they are entitled for?”

After registering the case on the basis of reference, notices were issued to the parties. They appeared and

filed their respective statement of claim in defense.

According to the workman Union, the Applicant workman No.1 who is also the President of the Union

along other 94 applicant workmen are working continuously from the date of their first appointments for more than

240 days in every year and have attained the status of permanent employees. The Management did not Award them

permanent status nor did the Management regularize their services. They formed an Association in the year 2004 and

raised their demand but in order to desist the applicant workmen from raising their lawful demands, the applicant

workman No.1 who is also the President of the Association, was orally terminated by the management. He raised a

dispute in this respect. He was informed that he and other workmen have been terminated from Regional Research

Laboratory i.e. Management i.e., R.R.L. and transferred to C.M.C. i.e., Outsourcing Security Agency. According to

the Workman Union, they are employees of the Management of Regional Research Laboratory and not of any

Security Agency. When a dispute was raised before the Assistant Labour Commissioner by workman Union, the

Management took a stand that these workman are contractor‘s employees which is factually incorrect. The workmen

are engaged as helpers, peons, Technical Assistants, Chowkidars, Gardeners, Waterman, Drivers, Lab Assistants,

Sweepers, Plumber etc. by the Management of Regional Research Laboratory. According to the workman Union, the

termination of the services of the applicant workman No.1 Avdesh Kumar Sisodiya, who is also the President of the

Union, is against law because no notice or compensation was given to him. Further, the action of the Management in

not classifying and declaring the applicant workmen as their permanent employees is also against law. Accordingly, it

has been prayed that the reference be answered in favour of the applicant workmen Union.

In its written statement of defense, the case of the management is firstly, that the Management of Regional

Research Laboratory is not an ‗Industry‘ under Industrial Disputes Act. 1947, hence the reference is not maintainable

before this Tribunal. Secondly, the workmen were not employed by the Management of Regional Research

Laboratory, hence there is no question of termination of their services by the management and their reinstatement.

According to the Management, there is no relationship of workman and employer between the parties. Thirdly, that

the Union has no locus standi to raise the present dispute and Fourthly, the present dispute has been raised only with

a view to secure appointment through back door entry. According to the management, the applicant workmen are

contractor employees engaged through contractor and Management has no role to play in this respect. Accordingly

the Management has prayed that the reference be answered against the workman Union.

In case R/49/2014, the workman has additionally alleged that he was disengaged by the management from

01.03.2011 without any notice or compensation which is in violation of Section 25-F and 25-G of the Act and also in

violation of Section 33 (1)(A) inspite of the fact that he was also one of the claimants/applicants in the case R/39/2006

and was disengaged without any approval from the Tribunal, during the pendency of that case. Rest of the allegations

are the same as in R/39/2006.

These two cases have been consolidated and are being disposed by a common Judgment and Award.

The management has additionally admitted in R/49/2014 that the workman Shri Bhawani Deen is one of the

applicants in R/39/2006. Rest of the pleadings are the same as in R/39/2006.

The workman side has filed affidavit of 37 witness out of which only applicant workman witness Shri

Avdesh Kumar Sisodiya, President of the Union, Shri Ramesh Chandra Rajkumar,Shri Chandrakant Bhat, have been

cross-examined by management. Rest of the witness did not appear for the cross-examination. The workman Union

has further filed job card for workshop Exhibit W-1 four papers and also filed I.D. cards, some photographs.

The Management filed and proved documents, Exhibit M-1, letter of Director of the Management dated

31-10-2005 to Assistant Labour Commissioner seeking direction to contractor to obtain necessary license from

Management in Contract Labour (Regulation & Abolition) Act, 1970. Exhibit M-2 is the certificate of Registration of

contractors Exhibit M-3 is annual Report of Management as Principal Employer sent to Registering Office as per

contract rules. Exhibit M-4 is Annexure of annual returns. Exhibit M-5 is work order dated 5-12-2006 to Contractor

M/s Bharat Security Services for housekeeping services in the laboratory. Exhibit M-6 to M-11 are job contracts for

providing man power for horticulture, cleaning, guest house and canteen services issued to M/s Shramik Kalyan

Samiti and M/s Bharat Security Services for the year 2005-2006. Exhibit M-12 is work agreement for cleaning with

M/s Bharat Security Services executed in the year 2006 for one year. Exhibit M-13 to M-16 are letters awarding

contract to M/s Bharat Security Services for housekeeping, security services, horticulture services, cleaning, guest

house and canteen services respectively. Exhibit M-18 is another letter by Director of the Management to the

Assistant Labour Commissioner seeking direction to the Contractors to get necessary licences ExhibitM-18 to M-20

and Exhibit M-21, M-22, M-23 to M-30 are different documents of M/s Bharat Security Services showing that they

deposited employees provident fund dues of their employees and raised bills in the year 2006-2007.

The Management has filed affidavit of its witness Shri S.K. Gupta, controller of Administration who never

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

25

appeared for cross-examination, hence his affidavit cannot be read in evidence in support of management The

Management has filed another Affidavit of its witness Shri Somnath Majumdar, Administrative Officer. He has been

cross-examined by workman side. The Management has further examined its another witness Shri Radheshyam

Namdeo Waghmare, Administrative Officer, Shri Hemant Kumar Malviya, Proprietor of M/s Bharat Security

Services. These witness have also been cross-examined by the Workman Union.

Following issues were framed on the basis of pleadings-

1. Whether the Management of Regional Research Laboratory is Industry as defines under Section

2-J of the Industrial Disputes Act, 1947??

2. Whether the workman Union has locus standi to raise the present dispute?

3. Whether there exists a relationship of workman and employer between the applicant workman

and Management of Regional Research Laboratory?

4. Whether the action of Management in retiring the services of the applicant workman Mr. Avdesh

Kumar Sisodiya, the President of the Union is legal?

5. Whether the applicant workmen are entitled to be given status of permanent employee of the

Management of Regional Research Laboratory?

Issue No. 1, was answered against the management, holding the management industry as defined under

the Act.

Issue No. 2, was also in favour of the workmen.

Issue No. 3 and 4, were answered in favour of the workmen, holding their disengagement by the

management without any notice or compensation, bad in law.

Issue No. 5, the management was directed pay lump sum compensation of Rs. 2 Lac per workmen with

interest as mentioned in the judgment and award.

The management preferred a W.P. No. 19485/2023 and workmen side filed W.P. No. 12020/2023, before

Hon‘ble High Court of M.P. against the judgment and award which was decided by a Single Bench of Hon‘ble High

Court, vide order dated 22.08.2023, with following observations:-

“The reference was made as to whether a declaration can be made that employees are permanent

employees. It is the case of the parties that none of the employee except the President of Union was

removed and all the 94 employees were working. However, with passage of time, 10 expired and at present

only 64 are working. So far as other employees are concerned, it is the case of the parties that their

services have already been terminated which is not the subject matter of the present litigation. Thus, when

the services of 64 employees have not been terminated and they are still working, then the CGIT should

have considered as to whether those workmen are entitled for the status of permanent employee or not.

But the Tribunal has awarded compensation in lieu of reinstatement, under a belief that they are also out

of job. Therefore, such a finding cannot sustain.

Under these circumstances, the findings recorded by CGIT on these issues are set aside. The matter is

remanded back to CGIT to decide as to whether the respondent/laboratory is the principal employer or

not, and accordingly shall also decide as to whether the workman are entitled for the status of permanent

employee or not.

Let entire exercise be completed within a period of 6 months from today.”

It is in compliance of this remand order, the matter again proceeded before this Tribunal. Workman filed

documents vide list dated 22.02.2024, which he proved as Ex-W/2 to Ex-W/12, he was cross-examined by

management. Management did not file any affidavit.

I have heard argument of Learned Counsel for the workman Mr. Swapnil Khare, and Learned Senior

Counsel Mr. Anoop Nair, assisted by Learned Counsel Mr. Neeraj Kewat for Management. Workman side has filed

written arguments, also which are part of record. I have gone through the record as well.

As it comes out from the perusal of the aforesaid judgment of the Hon‘ble High Court, finding of this

Tribunal on the issue No. 1 and 2 have been affirmed. Findings on issue No. 3, 4 and 5 have been setaside, this

Tribunal has been directed to decide as to whether the respondent/laboratory is Principal Employer or not and whether

the workmen are entitled to status of permanent employee or not, hence, in light of these directions, issue No. 3, 4 and

5 become redundant and following issues are framed for determination.

(A)

Whether the respondent/laboratory is Principal Employer or not?

(B)

Whether the services of the workmen Avdesh Kumar Sisodiya and Bhawani Deen Shuklware

26

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

were terminated by the management in violation of the Act?

(C)

Whether the workmen are entitled for permanent status or not?

Issue (A),

The case of the workmen Union is that since 1989 till 1992, the members of the Union have been working as

contract labour on daily wages with the management of R.R.L., thereafter, they were shown to be working as

employees of security agencies who were engaged to supply manpower for different jobs, after 2005. The

management witness has filed and proved different work agreements originating in the year 2006, which are Ex-M/7,

Ex-M/8, for guest house and canteen management, Ex-M/9 for providing manpower for housekeeping, Ex-M/10 for

security, Ex-M/11 for Horticulture, Ex-M/12 for cleaning, Ex-M/13 to M/17, filed and proved by management are

letters dated 26.09.2006 issued by them to the different outsourcing agencies informing that they have been awarded

contract. There is on record the registration certificate of the management as Principal Employer issued on 14.02.1996

which shows that the contract labour is to be employed in watch and ward of the properties of the Laboratory,

maintenance, sanitation deputing skilled labour and supply of unskilled labour total 69 + 47 = 116. Ex-M/1 is the

letter of the Labour Commissioner dated 31.10.2005 informing the management regarding the amendments in the

Principal Employer, registration certificate issued on 14.02.1996, number of employees have been changed now 25 in

security services, 15 each in Horticulture, cleanliness, guest house and canteen and 100 in housekeeping. The

management witness has further filed and proved documents with respect to payment to different contractors and also

the licenses issued by the concerned Licensing Authority to the management, registering them as Principal Employer,

which are Ex-M/1 to Ex-M/4, relating to the year 2006.

The word ‗Principal Employer‘ is defined in the Contract Labour (Regulation and Abolition) Act, 1970

(the Act), Section 2(g) which is as follows:-

“principal employer means—

(i)

in relation to any office or department of the Government or a local authority, the head of

that office or department or such other officer as the Government or the local authority, as

the case may be, may specify in this behalf,

(ii)

in a factory, the owner or occupier of the factory and where a person has been named as

the manager of the factory under the Factories Act, 1948 (63 of 1948), the person so

named,

(iii)

in a Mine, the owner or agent of the mine and where a person has been named as the

manager of the mine, the person so named,

(iv)

in any other establishment, any person responsible for the supervision and control of the

establishment.”

The word ‗Workman‘ is also defined, under Section 2(i) of the ‗Act‟, which is as follows:-

―workman means,

any person employed in or in connection with the work of any establishment to do any skilled, semi-

skilled or un-skilled manual, supervisory, technical or clerical work for hire or reward, whether the

terms of employment be express or implied, but does not include any such person--

(A)

who is employed mainly in a managerial or administrative capacity; or

(B)

who, being employed in a supervisory capacity draws wages exceeding five hundred

rupees per mensem or exercises, either by the nature of the duties attached to the office or

by reason of the powers vested in him, functions mainly of a managerial nature; or

(C)

who is an out-worker, that is to say, a person to whom any articles or materials are given

out by or on behalf of the principal employer to be made up, cleaned, washed, altered,

ornamented, finished, repaired, adapted or otherwise processed for sale for the purposes of

the trade or business of the principal employer and the process is to be carried out either

in the home of the out-worker or in some other premises, not being premises under the

control and management of the principal employer.”

It is established that the management has been issued license as Principal Employer under Contract Labour

(Regulation & Abolition )Act 1970, the outsourcing agreements of 2006 have been filed and proved, hence, the

management is held to be a Principal Employer as defined under Section 2(g) of the Contract Labour

(Regulation & Abolition ) Act1970.

Issue (A) stands answered accordingly.

Issue (B) & (C)-,

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

27

Since, these two issues are interrelated, they are being taken together.

According to the allegations in the statement of claim, the workmen have been working since 1989 till 1992

and up to 2005 as contract employees on daily wages, engaged by the management directly and thereafter they have

been shown to be outsourcing employees sent by the outsourcing agencies for different works as mentioned, to work

on the sites of the management.

Further the case of the workmen side is that these outsourcing contracts are sham and bogus, a camouflage

adopted by management just to deprive the workmen of their legally admissible claims with respect to permanent

status and regularization. It has been submitted from the side of workmen Union that this action of management is

unfair labour practice as defined under Section 2(ra) of the Act r/w Fifth Schedule, which prohibits the management

to engage Badli or Contract Workers for years with the object to deprive them of the status and privileges of

permanent workman. This act is prohibited under Section 25-T of the Act and even is a crime as provided under

section 25-U of the Act. It has further been submitted that it will be in the interest of justice to undo the mischief

committed by management by way of adopting unfair labour practice under sham and bogus outsourcing contracts.

Section 2(ra), Fifth Schedule, Section 25-T and 25-U are being reproduced as under:-

―Section 2 (ra) which defines unfair labour practice is being reproduced as follows:-

“(ra)

“unfair labour practice” means any of the practices specified in the Fifth Schedule;”

Schedule 5 of the Act which enumerates unfair labour practice is

also being reproduced as follows:-

THE FIFTH SCHEDULE

See section 2(ra) UNFAIR LABOUR PRACTICES

I.—On the part of employers and trade unions of employers

1.

To interfere with, restrain from, or coerce, workmen in the exercise of their right to organise, form, join or

assist a trade union or to engage in concerted activities for the purposes of collective bargaining or other

mutual aid or protection, that is to say:—

(a)

threatening workmen with discharge or dismissal, if they join a trade union;

(b)

threatening a lock-out or closure, if a trade union is organised;

(c)

granting wage increase to workmen at crucial periods of trade union organisation, with a view to

undermining the efforts of the trade union organisation.

2.

To dominate, interfere with or contribute support, financial or otherwise, to any trade union, that is to say:—

(a)

an employer taking an active interest in organising a trade union of his workmen; and

(b)

an employer showing partiality or granting favour to one of several trade unions attempting to

organise his workmen or to its members, where such a trade union is not a recognised trade union.

3.

To establish employer sponsored trade unions of workmen.

4.

To encourage or discourage membership in any trade union by discriminating against any workman, that is

to say:—

(a)

discharging or punishing a workman, because he urged other workmen to join or organise a trade

union;

(b)

discharging or dismissing a workman for taking part in any strike (not being as trike which is

deemed to be an illegal strike under this Act);

(c)

changing seniority rating of workmen because of trade union activities;

(d)

refusing to promote workmen to higher posts on account of their trade union activities;

(e)

giving unmerited promotions to certain workmen with a view to creating discord amongst other

workmen, or to undermine the strength of their trade union;

(f)

discharging office-bearers or active members of the trade union on account of their trade union

activities.

5.

To discharge or dismiss workmen—

(a)

by way of victimisation;

28

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

(b)

not in good faith, but in the colourable exercise of the employer's rights;

(c)

by falsely implicating a workman in a criminal case on false evidence or on concocted evidence;

(d)

for patently false reasons;

(e)

on untrue or trumped up allegation of absence without leave;

(f)

in utter disregard of the principles of natural justice in the conduct of domestic enquiry or with

undue haste;

(g)

for misconduct of a minor or technical character, without having any regard to the nature of the

particular misconduct or the past record or service of the workman, thereby leading to a

disproportionate punishment.

6.

To abolish the work of a regular nature being done by workmen, and to give such work to

contractors as a measure of breaking a strike.

7.

To transfer a workman mala fide from one place to another, under the guise of following

management policy.

8.

To insist upon individual workmen, who are on a legal strike to sign a good conduct bond, as a pre-

condition to allowing them to resume work.

9.

To show favouritism or partiality to one set of workers regardless of merit.

10.

To employ workmen as “badlis”, casuals or temporaries and to continue them as such for years,

with the object of depriving them of the status and privileges of permanent workmen.

11.

To discharge or discriminate against any workman for filing charges or testifying against an

employer in any enquiry or proceeding relating to any industrial dispute.

12.

To recruit workmen during a strike which is not an illegal strike.

13.

Failure to implement award, settlement or agreement.

14.

To indulge in acts of force or violence.

15.

To refuse to bargain collectively, in good faith with the recognised trade unions.

16.

Proposing or continuing a lock-out deemed to be illegal under this Act.”

Section 25 (T & U) of the Act reads as follows:-

5T. Prohibition of unfair labour practice.—No employer or workman or a trade union, whether registered

under the Trade Unions Act, 1926 (18 of 1926), or not, shall commit any unfair labour practice.

25U. Penalty for committing unfair labour practices.—Any person who commits any unfair labour practice

shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to

one thousand rupees or with both.

From perusal of Schedule and provisions mentioned above, Act of engaging contract labours, casual or

temporaries and to continue them as such for years with the object of depriving them of status, privileges of

permanent workman is unfair labour practice adopted by management which have been prohibited under section 25-

T of the Act, section 25-U of the Act provides penal consequences for such an unfair labour practice too.

The Act may have civil penal consequences same is the case with unfair labour practice, the penal

consequences of unfair labour practice is provided in the Act but civil consequences are not provided. This fact does

not denude the Courts and Tribunals under the Act to undo the effects of such Act like unfair labour practice which is

prohibited by the Act.

It requires to be seen, whether the outsourcing contracts are sham and bogus and just with a view to

deprive workmen of their legally admissible claims. As stated above, the claim of the workmen is that before being

shown as outsourcing employees, they were working as employees of management on contract basis right since 1992

and thereafter till 2005, their this case gets support from the statement of witnesses examined by the workmen side,

the workman Shri Avdesh Kumar Sisodiya, who happens to be an office bearer of the Union states that he and other

94 workers mentioned in the list to the schedule of the reference have continuously been working since 1989 till

16.09.2004 with the management. He further states that there was no contractor engaged for outsourcing from 1989 to

2004. There is nothing in his cross-examination to discredit him on his this stand, same is with the other witness Shri

Ramesh Chandra Raikwar, who states that he has been working since last 10 years with the management, and his

affidavit was filed in 2009, which implies that he has been working since 1999 according to him. Similarly, witness,

Shri Chandrakant Bhatt, has stated that he has been working since 1997, he was issued an appointment letter also. The

workman Shri Bhawani Deen Shuklware who is in the list of the workman in the case R/39/2006, has stated on oath

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

29

in his statement in the case R/49/2014, that he has continuously been working since 02.10.1993 with the management

in its Engineering Department as Plumber/Helper. They raised a claim for their regularization which is pending as

R/39/2006. He was disengaged by the management on 01.03.2011. He has filed and proved photocopy of overtime

allowance, job card, gate card and another job card which have been issued in the year 1999, 2002-2003, they contain

his name. This establishes and corroborates his case that he was working even before 2006, when the management

awarded work contract to outsourcing agencies. Same is the case with workman Shir Avdesh Kumar Sisodiya as well

other workers.

The management has flatly denied engagement of Shri Avdesh Singh Sisodiya or any workmen by them at

any point of time, by them. The management witnesses have stated that these workmen have been working as

outsourcing employees, supplied by the outsourcing security agencies for different works as mentioned. The first

work contract filed and proved is effective from 2006 thus, it is established that before 2006, these workmen were

working as contract labourers engaged by the management directly and thereafter they worked as outsourcing

employees, supplied by the outsourcing agencies under work agreement executed between the management and

outsourcing agencies, since 2006 and thereafter.

This is also established that these workmen have been working at the sites of management and under control

and directions of the management officers, thus Ex-M/3 is the work agreement between the management and

contractor entered into on 01.10.2006, which is mentioned at Page 2, first paragraph that this contract is for providing

manpower for housekeeping at the Regional Research Laboratory. Ex-M/8 is also the work agreement dated

01.10.2006, shows that it was for providing guest house and canteen arrangement. Ex-M/10 executed on 01.10.2006,

is for security arrangement. Ex-M/11 also executed on 01.10.2006, is for Horticulture purpose. Ex-M/12 executed on

01.10.2006, is for cleaning purpose. Thus, from the statements of management witnesses as well the aforesaid

documents, coupled with registration certificates of Principal Employer, issued by Licensing Authority, as mentioned

above, establish that the contracts have been for supply of manpower for Horticulture, Security, Cleaning, Canteen,

etc.

Since, this fact is also established that these works existed even prior to the outsourcing agreements and were

done by these workmen before its services were outsourced to outsourcing agencies and also the fact that these

workers have been outsourced to the outsourcing agencies since 2006 and thereafter, it shows that these workers are

of permanent and perennial nature. Since, these works are of permanent and perennial nature, the management was

under obligation to employ regular employees for these works. By engaging contract workers/daily wagers for the

job, which are of permanent and perennial nature for years and changing the contract workers employed by

management to outsourced workers, the management is held to adopted unfair labour practice.

Since, the aforesaid outsourcing contracts have been executed with sole purpose of defeating the law or for

doing an act which is forbidden by law, they are ‗Void Agreements‟ as mentioned in Section 2(h), 2(j) & Section 23 of

The Indian Contract Act, 1872, which are being reproduced as under:-

“2(h)

An agreement enforceable by law is a contract;

2(j)

A contract which ceases to be enforceable by law becomes void when it ceases to be enforceable.

10. What agreements are contracts.—All agreements are contracts if they are made by the free consent of

parties competent to contract, for a lawful consideration and with a lawful object, and are not

hereby expressly declared to be void. Nothing herein contained shall affect any law in force in India

and not hereby expressly repealed by which any contract is required to be made in writing or in the

presence of witnesses, or any law relating to the registration of documents.

23.

What considerations and objects are lawful, and what not.—The consideration or object of an

agreement is lawful, unless—

it is forbidden by law; or

is of such a nature that if permitted, it would defeat the provisions of any law; or

is fraudulent; or

involves or implies injury to the person or property of another; or

the Court regards it as immoral, or opposed to public policy.

In each of these cases, the consideration or object of an agreement is said to be unlawful.

Every agreement of which the object or consideration is unlawful is void.

From the above description and discussion, following proposition of facts and law are established:-

i.

The work was of permanent and perennial nature.

ii.

The work was being taken by management directly till 2005 and thereafter through outsourcing

agencies.

iii.

The work agreements were, for purpose to defeat the legally admissible claims as mentioned in

Fifth Schedule to the Act.

30

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

iv.

The workers worked at the sites of the management under control and directions of the

management.

Hence, in light of these findings, the work contracts are declared sham and bogus, just a camouflage to

deprive the workmen of their legally admissible claims.

Now it is established that in the case in hand, the management has adopted unfair labour practice and

that the work agreements with outsourcing agreements are sham and bogus, just a camouflage to deprive the

workmen of their legally admissible claims, the question arises at to what will be its consequences?

Even if, it is assumed that the outsourcing agreements are not sham and bogus, the situation does not

change, still the management is guilty for adopting unfair labour practice by employing contract labours

firstly, directly and thereafter through outsourcing agencies for years and years right before 2000 till date, with

the sole purpose of depriving the workmen of their legally admissible claims.

Unfair labour practice is an offence in the Act, this is criminal consequence of the Act, and the civil

consequence of the Act is not mentioned in The Industrial Disputes Act, 1947. The Courts and Tribunals are not

without powers to undo the civil consequence of the Act, which is prohibited in law.

Learned Counsel for management has referred to judgment of Hon’ble Supreme Court in the case

of Joint Secretary, Central Board of Secondary Education v/s Raj Kumar Mishra & Ors. 2025 Live Law

(SC) 343, wherein it has been held that if there is no employer-employee relation between the parties, no

claim regarding permanency or regularization will be added in this bill.

Learned counsel as further referred to following paragraphs of the judgment referred Sudarshan

Rajpoot v/s U.P. State Road Transport Corporation (2015) II, SCC 317 which are being reproduced as

follows:-

11. It has been contended by the learned counsel for the appellant workman that the High Court has

erred in placing reliance upon the decision of this Court in Umadevi (3) case [State of Karnataka v. Umadevi

(3), (2006) 4 SCC 1 : 2006 SCC (L&S) 753] , which was distinguished inasmuch as the said case is not

applicable to the case on hand for the reason that the appellant workman is a “workman” as defined under

Section 2(z) of the UPID Act and the respondent is the statutory corporation which is an undertaking of the

State Government and therefore, as it is an instrumentality of the State Government, it will come within the

definition of “industry” as defined under Section 2(k) of the UPID Act. Therefore, the said provisions of the

UPID Act are applicable to the appellant workman as he is a “workman” as defined under Section 2(z) of

the UPID Act and Section 2(s) of the ID Act, 1947.

12. Further, it is contended that the High Court has failed to consider the “unfair labour practice”

as defined under Section 2(ra) of the ID Act, 1947 read with Sections 25-T and 25-U and Schedule V of the

ID Act. Item 10 of Schedule V of the ID Act prohibits the employer to employ workmen as badlis, casuals or

temporaries and to continue them as such for years in the Corporation, with the object of depriving them of

the status and privileges of permanent workmen is prohibited. It is further contended that the respondent

Corporation is liable for penal action under the provisions of Section 25-U of the ID Act. In support of the

above contention, reliance was placed on the three-Judge Bench decision of this Court in Chief Conservator

of Forests v. Jagannath Maruti Kondhare [Chief Conservator of Forests v. Jagannath Maruti Kondhare,

(1996) 2 SCC 293 : 1996 SCC (L&S) 500] .

13. On the other hand, the learned counsel appearing on behalf of the respondent Corporation

sought to justify the correctness of the finding and reasons recorded by the High Court in the impugned

judgment [U.P. SRTC v. Sudarshan Rajpoot, Writ-C No. 21553 of 2005, order dated 5-3-2008 (All)] .

Alternatively, it is contended that even if the order of termination is bad in law, the workman who is working

on the contract basis is not entitled for reinstatement with full back wages as per the view taken by this Court

in several decisions. Therefore, the learned counsel for the respondent Corporation submits that the

impugned judgment [U.P. SRTC v. Sudarshan Rajpoot, Writ-C No. 21553 of 2005, order dated 5-3-2008

(All)] and order need not be interfered with by this Court in exercise of its appellate jurisdiction.

14. With reference to the abovesaid rival legal contentions the following substantial questions would

arise for our consideration:

14.1.

(i) Whether the High Court is justified in passing the impugned judgment [U.P.

SRTC v. Sudarshan Rajpoot, Writ-C No. 21553 of 2005, order dated 5-3-2008 (All)] , order

and reversing the award passed by the Labour Court?

14.2.

(ii) Whether the order of termination passed against the appellant workman amounts to

retrenchment as defined under Section 2(s) of the UPID Act, 1947?

14.3. (iii) Whether non-compliance with the statutory provisions under Sections 6-N and 6-Q of the

UPID Act which are analogous with Sections 25-F and 25-H, respectively, of the ID

Act, 1947 renders the order of termination void ab initio in law?

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

31

14.4. (iv) What relief is the appellant workman entitled to?

15. To answer the above substantial questions of law it is necessary for this Court to extract the

order of termination passed by the Assistant Regional Manager of the Corporation, which reads thus:

“OFFICE OF ASSISTANT REGIONAL MANAGER,

U.P. TRANSPORT CORPORATION, AZAD NAGAR DEPOT

Letter No. ARM/A. Ngr/Bus Accident 0582/2000/3591 dated 29-7-2000

OFFICE ORDER

On 7-6-1999 vehicle bearing No. 8582 which had met with an accident which was being driven on

7-6-1999 by Shri Sudarshan Rajpoot, contractual driver and conductor Shri Kamta Prasad on Deoria to

Kanpur route and accident occurred on the way at 1.30 a.m. in the night at Village Palhari, Barabanki near

Police Station Safdarganj and due to negligent driving of the driver, department suffered heavy loss.

Hence, in order to meet departmental loss, forfeiting security of driver Shri Sudarshan Rajpoot, I

pass the order to strike off his name from the contract roll with an immediate effect. His name be struck off

from contract roll.

sd/-

(Illegible)

(Sad Sayed)

Assistant Regional Manager,

Azad Nagar, Depot”

(emphasis supplied)

In the aforesaid order of termination it is specially mentioned that the appellant workman was

appointed as a driver on contractual basis. It has been further stated that the accident occurred on 7-6-1999

due to the negligent driving of the appellant workman resulting in heavy loss to the Department of the

respondent Corporation. In order to meet the departmental loss, security amount of driver was forfeited and

Assistant Regional Manager had struck off the name of the appellant workman from the contract employees

roll with immediate effect.

16. The respondent Corporation has neither produced documentary evidence nor showed before the

Labour Court that the appellant workman was appointed on contract basis. The fact that he deposited Rs

2000 towards security amount with the respondent Corporation indicates that he was working as a driver on

a permanent basis. In view of Schedule V, Item 10 of the ID Act, 1947 the respondent Corporation is

prohibited from engaging the appellant workman as a badli, casual or temporary workman to work on

permanent basis. The fact that he had been continuously working for more than 3 years and he had rendered

more than 240 days of service as the driver in a calendar year until his termination order and yet he is being

engaged on a contractual basis in the respondent Corporation is statutorily prohibited. The same amounts to

an unfair labour practice as defined under Section 2(ra) read with Section 25-T, which action of the

Corporation is punishable under Section 25-U of the ID Act. This legal position is settled by this Court

in Chief Conservator of Forests case [Chief Conservator of Forests v. Jagannath Maruti Kondhare, (1996) 2

SCC 293 : 1996 SCC (L&S) 500] wherein it was held as under : (SCC pp. 302-03, para 22)

“22. … In our opinion, it would be permissible on facts of a particular case to draw the inference

mentioned in the second part of the item, if badlis, casuals or temporaries are continued as such for years.

We further state that the present was such a case inasmuch as from the materials on record we are satisfied

that the 25 workmen who went to the Industrial Court of Pune (and 15 to the Industrial Court, Ahmednagar)

had been kept as casuals for long years with the primary object of depriving them of the status of permanent

employees inasmuch as giving of this status would have required the employer to pay the workmen at a rate

higher than the one fixed under the Minimum Wages Act. We can think of no other possible object as, it may

be remembered, that the Pachgaon Parwati Scheme was intended to cater to the recreational and

educational aspirations also of the populace, which are not ephemeral objects, but par excellence

permanent. We would say the same about environment-pollution-care work of Ahmednagar, whose need is on

the increase because of increase in pollution. Permanency is thus writ large on the face of both the types of

work. If, even in such projects, persons are kept in jobs on casual basis for years the object manifests itself;

no scrutiny is required. We, therefore, answer the second question also against the appellants.”

25. This Court in the later judgment in Hari Nandan Prasad v. Food Corporation of India [Hari

Nandan Prasad v. Food Corporation of India, (2014) 7 SCC 190 : (2014) 2 SCC (L&S) 408] , after

adverting to the law laid down in U.P. Power Corpn. Ltd. v. Bijli Mazdoor Sangh [(2007) 5 SCC 755 :

(2007) 2 SCC (L&S) 258] and Maharashtra SRTC [Maharashtra SRTC v. Casteribe Rajya Parivahan

32

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Karmchari Sanghatana, (2009) 8 SCC 556 : (2009) 2 SCC (L&S) 513] wherein Umadevi (3) case [State of

Karnataka v. Umadevi (3), (2006) 4 SCC 1 : 2006 SCC (L&S) 753] is adverted to in both the cases, held that

on a harmonious reading of the two judgments, even when there are posts available, in the absence of any

unfair labour practice the Labour Court cannot give direction for regularisation only because a worker has

continued as daily-wage worker/ad hoc/temporary worker for number of years. Further, such a direction

cannot be given when the worker concerned does not meet the eligibility requirement of the post in question

as per the recruitment rules:

25.1. It was held at para 32 in Hari Nandan Prasad case [Hari Nandan Prasad v. Food

Corporation of India, (2014) 7 SCC 190 : (2014) 2 SCC (L&S) 408] as under : (SCC p. 211)

“32. However, the Court in Maharashtra SRTC case [Maharashtra SRTC v. Casteribe Rajya Parivahan

Karmchari Sanghatana, (2009) 8 SCC 556 : (2009) 2 SCC (L&S) 513] found that the factual position was

different in the case before it. Here the post of cleaners in the establishment were in existence. Further, there was

a finding of fact recorded that the Corporation had indulged in unfair labour practice by engaging these workers

on temporary/casual/daily-wage basis and paying them paltry amount even when they were discharging duties of

eight hours a day and performing the same duties as that of regular employees.”

25.2. Further, Hari Nandan Prasad [Hari Nandan Prasad v. Food Corporation of India, (2014) 7 SCC 190 :

(2014) 2 SCC (L&S) 408] referred at para 36, LIC v. D.J. Bahadur [(1981) 1 SCC 315 : 1981 SCC (L&S) 111 :

(1981) 1 SCR 1083] in which the relevant para 22 of LIC case [(1981) 1 SCC 315 : 1981 SCC (L&S) 111 :

(1981) 1 SCR 1083] is extracted as under : (Hari Nandan Prasad case [Hari Nandan Prasad v. Food

Corporation of India, (2014) 7 SCC 190 : (2014) 2 SCC (L&S) 408] , SCC p. 213)

“36. … „22. The Industrial Disputes Act is a benign measure which seeks to pre-empt industrial tensions,

provide the mechanics of dispute resolutions and set up the necessary infrastructure, so that the energies of the

partners in production may not be dissipated in counterproductive battles and the assurance of industrial justice

may create a climate of goodwill.‟ (D.J. Bahadur case [(1981) 1 SCC 315 : 1981 SCC (L&S) 111 : (1981) 1 SCR

1083] , SCC p. 334, per Krishna Iyer, J.)

In order to achieve the aforesaid objectives, the Labour Courts/Industrial Tribunals are given wide powers not

only to enforce the rights but even to create new rights, with the underlying objective to achieve social justice.

Way back in the year 1950 i.e. immediately after the enactment of the Industrial Disputes Act, in one of its first

and celebrated judgment in Bharat Bank Ltd. v. Employees [1950 SCC 470 : AIR 1950 SC 188 : 1950 LLJ 921 at

p. 948] this aspect was highlighted by the Court observing as under : (AIR p. 209, para 61)

„61. … In settling the disputes between the employers and the workmen, the function of the Tribunal is

not confined to administration of justice in accordance with law. It can confer rights and privileges on either

party which it considers reasonable and proper, though they may not be within the terms of any existing

agreement. It has not merely to interpret or give effect to the contractual rights and obligations of the

parties. It can create new rights and obligations between them which it considers essential for keeping

industrial peace.‟”

25.3. And again at para 37, observing that the aforesaid sweeping power conferred upon the Tribunal is not

unbridled and is circumscribed by this Court in New Maneck Chowk Spg. & Wvg. Co. Ltd. v. Textile Labour

Assn. [AIR 1961 SC 867] , the relevant para 6 of which is extracted as under : (Hari Nandan Prasad case [Hari

Nandan Prasad v. Food Corporation of India, (2014) 7 SCC 190 : (2014) 2 SCC (L&S) 408] , SCC p. 213, paras

37-38)

“37. … „6. … This, however, does not mean that an Industrial Court can do anything and everything when

dealing with an industrial dispute. This power is conditioned by the subject-matter with which it is dealing and

also by the existing industrial law and it would not be open to it while dealing with a particular matter before it

to overlook the industrial law relating to that matter as laid down by the legislature or by this Court.‟ (Textile

Labour Assn. case [AIR 1961 SC 867] , AIR p. 870)

38. It is, thus, this fine balancing which is required to be achieved while adjudicating a particular dispute,

keeping in mind that the industrial disputes are settled by industrial adjudication on principle of fair play

and justice.”

26. In view of the aforesaid statement of law laid down by this Court after adverting to the powers of the

Industrial Tribunal and the Labour Court as interpreted by this Court in the earlier decisions referred to supra,

the said principle is aptly applicable to the fact situation of the case on hand, for the reason that the Labour

Court recorded a finding of fact in favour of the workman that the termination of services of the appellant herein

is not legal and valid and further reaffirmed the said finding and also clearly held that the plea taken in the order

of termination that he was appointed on contract basis as a driver is not proved by producing cogent evidence.

Further, we hold that even if the plea of the employer is accepted, extracting work though of permanent nature

continuously for more than three years, the alleged employment on contract basis is wholly impermissible.

Therefore, we have held that it amounts to an unfair labour practice as defined under Section 2(ra) of the ID Act,

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

33

1947 read with Section 25-T which is prohibited under Section 25-U, Chapter V-C of the ID Act, 1947. We have

to hold that the judgment of the High Court in reversing the award is not legal and the same is set aside by us.

“21. Before concluding, we consider it necessary to observe that while exercising jurisdiction under Articles

226 and/or 227 of the Constitution in matters like the present one, the High Courts are duty-bound to keep in

mind that the Industrial Disputes Act and other similar legislative instruments are social welfare legislations and

the same are required to be interpreted keeping in view the goals set out in the Preamble of the Constitution and

the provisions contained in Part IV thereof in general and Articles 38, 39(a) to (e), 43 and 43-A in particular,

which mandate that the State should secure a social order for the promotion of welfare of the people, ensure

equality between men and women and equitable distribution of material resources of the community to subserve

the common good and also ensure that the workers get their dues. More than 41 years ago, Gajendragadkar, J.

opined that:

„10. … the concept of social and economic justice is a living concept of revolutionary import; it gives

sustenance to the rule of law and meaning and significance to the ideal of welfare State.‟

(State of Mysore v. Workers of Gold Mines [AIR 1958 SC 923] , AIR p. 928, para 10.)”

24. We are of the opinion that the view taken in Maharashtra SRTC [Maharashtra SRTC v. Casteribe Rajya

Parivahan Karmchari Sanghatana, (2009) 8 SCC 556 : (2009) 2 SCC (L&S) 513] at para 36 after

distinguishing Umadevi (3) case [State of Karnataka v. Umadevi (3), (2006) 4 SCC 1 : 2006 SCC (L&S) 753] is

the plausible view. Therefore, we have to hold that the finding of the High Court in setting aside the finding of

fact recorded by the Labour Court in its award by applying Umadevi (3) case [State of Karnataka v. Umadevi

(3), (2006) 4 SCC 1 : 2006 SCC (L&S) 753] is wholly untenable in law. Therefore, the same is set aside by this

Court.

23. Further, the reliance placed upon the decision of this Court on Umadevi (3) case [State of

Karnataka v. Umadevi (3), (2006) 4 SCC 1 : 2006 SCC (L&S) 753] by the High Court to reverse the finding of

fact recorded in the award in favour of the workman in answering the points of dispute in the negative, is not

tenable in law in view of the judgment of this Court in Maharashtra SRTC v. Casteribe Rajya Parivahan

Karmchari Sanghatana [Maharashtra SRTC v. Casteribe Rajya Parivahan Karmchari Sanghatana, (2009) 8

SCC 556 : (2009) 2 SCC (L&S) 513] , wherein, this Court after adverting to Umadevi (3) case [State of

Karnataka v. Umadevi (3), (2006) 4 SCC 1 : 2006 SCC (L&S) 753] at para 36, has held that the said case does

not denude the Industrial and Labour Courts of their statutory power under Section 30 read with Section 32 of

the MRTU and PULP Act to order permanency of the workers who have been victims of unfair labour practice on

the part of the employer under Item 6 of Schedule IV where the posts on which they have been working exist”.

(SCC p. 574)

Further, this Court held that : (SCC p. 574, para 36)

“36. … Umadevi (3) case [State of Karnataka v. Umadevi (3), (2006) 4 SCC 1 : 2006 SCC (L&S) 753]

cannot be held to have overridden the powers of the Industrial and Labour Courts in passing appropriate order

under Section 30 of the MRTU and PULP Act, once unfair labour practice on the part of the employer under Item

6 of Schedule IV is established.”

The principles of law laid down in the referred case is of more relevance.

Reference may be taken of judgment of Hon‘ble Supreme Court in the case of Jaggo v/s Union of India

reported in (2024) SCC Online SC 3826 , the relevant paragraphs of this judgment are being reproduced as

follows:-

“22. The pervasive misuse of temporary employment contracts, as exemplified in this case, reflects a broader

systemic issue that adversely affects workers' rights and job security. In the private sector, the rise of the gig

economy has led to an increase in precarious employment arrangements, often characterized by lack of benefits,

job security, and fair treatment. Such practices have been criticized for exploiting workers and undermining

labour standards. Government institutions, entrusted with upholding the principles of fairness and justice, bear

an even greater responsibility to avoid such exploitative employment practices. When public sector entities

engage in misuse of temporary contracts, it not only mirrors the detrimental trends observed in the gig economy

but also sets a concerning precedent that can erode public trust in governmental operations. ………

25. It is a disconcerting reality that temporary employees, particularly in government institutions, often face

multifaceted forms of exploitation. While the foundational purpose of temporary contracts may have been to

address short-term or seasonal needs, they have increasingly become a mechanism to evade long-term

obligations owed to employees. These practices manifest in several ways:

• Misuse of “Temporary” Labels:- Employees engaged for work that is essential, recurring, and integral to

the functioning of an institution are often labelled as “temporary” or “contractual,” even when their roles

mirror those of regular employees. Such misclassification deprives workers of the dignity, security, and benefits

34

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

that regular employees are entitled to, despite performing identical tasks.

• Arbitrary Termination:- Temporary employees are frequently dismissed without cause or notice, as seen in

the present case. This practice undermines the principles of natural justice and subjects workers to a state of

constant insecurity, regardless of the quality or duration of their service.

• Lack of Career Progression:- Temporary employees often find themselves excluded from opportunities for

skill development, promotions, or incremental pay raises. They remain stagnant in their roles, creating a

systemic disparity between them and their regular counterparts, despite their contributions being equally

significant.

• Using Outsourcing as a Shield:- Institutions increasingly resort to outsourcing roles performed by

temporary employees, effectively replacing one set of exploited workers with another. This practice not only

perpetuates exploitation but also demonstrates a deliberate effort to bypass the obligation to offer regular

employment.

• Denial of Basic Rights and Benefits:- Temporary employees are often denied fundamental benefits such as

pension, provident fund, health insurance, and paid leave, even when their tenure spans decades. This lack of

social security subjects them and their families to undue hardship, especially in cases of illness, retirement, or

unforeseen circumstances.”

The principle laid down in the case of Jaggo (Supra) has been followed by Hon‘ble Supreme Court in the

case of Shripal Vs. Nagar Nigam Ghaziabad in Civil Appeal No. 8157/2024 (2025 INSC 144). The relevant

portion of the said judgment is being reproduced as follows:-

“12. The evidence, including documentary material and undisputed facts, reveals that the Appellant

Workmen performed duties integral to the Respondent Employer‟s municipal functions specifically the upkeep of

parks, horticultural tasks, and city beautification efforts. Such work is evidently perennial rather than sporadic

or project-based. Reliance on a general “ban on fresh recruitment” cannot be used to deny labor protections to

long serving workmen. On the contrary, the acknowledged shortage of Gardeners in the Ghaziabad Nagar

Nigam reinforces the notion that these positions are essential and ongoing, not intermittent. By requiring the

same tasks (planting, pruning, general upkeep) from the Appellant Workmen as from regular Gardeners but still

compensating them inadequately and inconsistently the Respondent Employer has effectively engaged in an

unfair labour practice. The principle of “equal pay for equal work,” repeatedly emphasized by this Court, cannot

be casually disregarded when workers have served for extended periods in roles resembling those of permanent

employees. Long-standing assignments under the Employer‟s direct supervision belie any notion that these were

mere short-term casual engagements.

14. The Respondent Employer places reliance on Umadevi (supra) to contend that daily-wage or temporary

employees cannot claim permanent absorption in the absence of statutory rules providing such absorption.

However, as frequently reiterated, Uma Devi itself distinguishes between appointments that are “illegal” and

those that are “irregular,” the latter being eligible for regularization if they meet certain conditions. More

importantly, Uma Devi cannot serve as a shield to justify exploitative engagements persisting for years without

the Employer undertaking legitimate recruitment. Given the record which shows no true contractor based

arrangement and a consistent need for permanent horticultural staff the alleged asserted ban on fresh

recruitment, though real, cannot justify indefinite daily-wage status or continued unfair practices.

15. It is manifest that the Appellant Workmen continuously rendered their services over several years,

sometimes spanning more than a decade. Even if certain muster rolls were not produced in full, the Employer‟s

failure to furnish such records—despite directions to do so—allows an adverse inference under well-established

labour jurisprudence. Indian labour law strongly disfavors perpetual daily-wage or contractual engagements in

circumstances where the work is permanent in nature. Morally and legally, workers who fulfil ongoing municipal

requirements year after year cannot be dismissed summarily as dispensable, particularly in the absence of a

genuine contractor agreement. At this juncture, it would be appropriate to recall the broader critique of

indefinite “temporary” employment practices as done by a recent judgement of this court in Jaggo v. Union of

India

16. The High Court did acknowledge the Employer‟s inability to justify these abrupt terminations.

Consequently, it ordered re-engagement on daily wages with some measure of parity in minimum pay.

Regrettably, this only perpetuated precariousness: the Appellant Workmen were left in a marginally improved yet

still uncertain status. While the High Court recognized the importance of their work and hinted at eventual

regularization, it failed to afford them continuity of service or meaningful back wages commensurate with the

degree of statutory violation evident on record.”

As regards the matter of reinstatement of the workman Shri Avdesh Kumar Sisodiya in R/39/2006 and Shri

Bhawani Deen Shuklware in R/49/2014, case of the workman side in R/39/2006 is that the workman Shri A.K.

Sisodiya was disengaged by management from 16.09.2004. The first work agreement filed and proved by

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

35

management relates to outsourcing in 2006. Hence, undoubtedly this workman was disengaged by management

of then R.R.L. The case of workman Shri Bhawani Deen Shuklware is that he was disengaged from 01.03.2011.

According to management, workers were outsourced by agencies since 2006. The statement of Shri Bhawani

Deen Shuklware, coupled with the documents proved and referred in his statement establish that he also worked

with management of R.R.L. till 2005 as daily wage contract labour engaged by management that too in the light

of pleading and statement of management witnesses from R.R.L. in which they have denied employing this

workman in any capacity, establishes the fact that this workman had worked as daily wage contract labour of

management of R.R.L. since his first engagement in 1993 till 2005 and thereafter as an outsourced employee

engaged in the same job which he was working before, till he was disengaged.

In both the cases, it is not disputed that no notice or compensation was given to these two employees when

they were retrenched by management. Hence, their disengagement is held in violation of Section 25-F and 25-G

of the Act.

In light of these considerations, the Employer‘s discontinuation of the Appellant Workmen Shri Avdesh

Kumar Sisodiya in R/39/2006 and Shri Bhawani Deen Shuklware in R/49/2014, stands in violation of the most

basic labour law principles. Once it is established that their services were terminated without adhering to Sections

25-F and 25-G of The Industrial Disputes Act, 1947, and that all the workmen in these two cases were engaged in

essential, permanent and perennial duties, these workers cannot be relegated to perpetual uncertainty. While

concerns of budget and compliance with recruitment rules merit consideration, such concerns do not absolve the

Employer of statutory obligations or negate equitable entitlements. Indeed, bureaucratic limitations cannot trump

the legitimate rights of workmen of these two cases, who have served continuously in de facto regular roles for an

extended period. The action of management to the extent they confine the Appellant Workmen to future daily-

wage engagement without continuity or meaningful back wages, is hereby held in violation of the Act and an

unfair labour practice.

The issues B & C stands answered accordingly.

The references, therefore stand answered with the following directions:-

AWARD

The discontinuation of the services of the Applicant workmen Shri Avdesh Kumar Sisodiya and

Shri Bhawani Deen Shuklware in both the references, are held to have been effected without compliance with

Section 25-F and Section 25-G of the Industrial Disputes Act, 1947, and are held illegal. In consequence, the

Appellant Workmen shall be treated as continuing in service from thereof their termination, for all purposes,

including seniority and continuity in service.

The Employer shall reinstate the two Workmen as mentioned above in their respective posts (or posts akin

to the duties they previously performed) within 30 days from the date of publication of this Award. Their entire

period of absence (from the date of termination until actual reinstatement) shall be counted for continuity of

service and all consequential benefits, such as seniority and eligibility for promotions, if any.

Considering the length of service, the Applicant workmen Shri Avdesh Kumar Sisodiya and Shri Bhawani

Deen Shuklware shall be entitled to 25% of the back wages from the date of their discontinuation until their

actual reinstatement. The management shall clear the aforesaid dues within 30 days from the date of their

reinstatement.

The management of R.R.L. now A.M.P.R.I. is directed to initiate a fair and transparent process for

regularizing the Appellant Workmen within three months from the date of reinstatement, duly considering the

fact that they have performed perennial duties akin to permanent posts. In assessing regularization, the

management shall not impose educational or procedural criteria retroactively if such requirements were never

applied to the Workmen or to similarly situated regular employees in the past. To the extent that sanctioned

vacancies for such duties exist or are required, the management shall expedite all necessary administrative

processes to ensure these longtime employees are not indefinitely retained on daily wages contrary to statutory

and equitable norms.

The workmen in these cases are also held entitled to litigation cost computed at Rs. 50,000/- in total, to be

paid to them within 30 days from the date of publication of Award.

In case of default of payment of amounts mentioned/calculated on the basis of Award within the time

prescribed, interest @6% p.a. from the date of Award till payment.

A copy of this judgment and award be kept on the file of R/49/2014.

36

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

DATE:- 26/09/2025

P.K. SRIVASTAVA, Presiding Officer

नई ददल्ली, 17 ददस बर, 2025

का.आ. 15.—vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa] dsUnzh;

ljdkj बीसीसीएल ds izca/kra= ds lac) fu;kstdksa vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V vkS|ksfxd fookn esa

-सह-

] धनबाद-Ids iapkV (

67/2014) dks izdkf”kr

djrh gS] tks dsUnzh; ljdkj dks

dks izkIr gqvk FkkA

[सं. एल-20012/47/2014-आई.आर.(सी.एम-I)]

सलोनी, उप जनदेिक/हलक अजधकारी

New Delhi, the 17th December, 2025

S.O. 15.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref. No. 67/2014) of the Central Government Industrial Tribunal-

cum-Labour Court, Dhanbad-I as shown in the Annexure, in the industrial dispute between the Management of

BCCL. and their workmen received by the Central Government on 17/12/2025.

[No. L-20012/47/2014– IR (CM-I)]

SALONI, Dy. Director/Link Officer

ANNEXURE

BEFORE THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL NO. 1, DHANBAD

In the matter of reference U/S 10 (1) (d)& (2A) of I.D.Act. 1947.

Reference Case No. 67/2014

Parties:

Employers in relation to the management of P.B. Area

Of M/s. BCCL, Kusunda, Dhanbad.

AND

Their Workman

Present: Shri Sachindra Kumar Pandey

Presiding Officer

Appearances:

For the Employers :- Sri N. Nath, O.S. Legal H.Q

For the workman :- None.

State : Jharkhand.

Industry:-Coal

Dated 10/12/2025

AWARD.

In exercise of powers conferred under clause (d) of sub-section (1) and sub –section (2A) of Section 10 of

the Industrial Disputes Act, 1947 (14 of 1947),Government Of India through the Ministry of Labour, vide its Order

No.L-20012/47/2014 (IR(CM-I)) dated 10/06/2014 has been pleased to refer the following dispute between the

employer i.e. management of P.B. Area of M/s. BCCL, Kusunda, Dhanbad and their workman through President,

Bhartiya Mazdoor Sangh, Kusunda, Dhanbad for adjudication by this Tribunal:

SCHEDULE

―Whether the action of the Management of P.B. Area of M/s. BCCL in denial to regularize Sri

Naresh Paswan in the post of Surface Tippler Operator is fair and justified? To what relief the

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

37

concerned workman is entitled to?‖

2. On receiving order no. L-20012/47/2014 (IR(CM-I)) dated 10/06/2014 Government of India, Ministry of Labour,

New Delhi for adjudication of the dispute, Reference case no. 67 of 2014 was registered on 27.06.2014 and

thereafter the notices were sent to the parties with a direction to appear and submit their written statements along

with relevant documents and witnesses in support of their claims.

3. After issuance of regd. notice, none appeared on behalf of both the parties. It further transpires from the case

record, when the case record was put up after a long gap on 17.01.2022, registered notices were sent to both the

parties but even thereafter no step was taken from the workman side. However Sri Ranjeet Kr. Jha, Legal Inspector

for the management appeared. Thereafter on 11.07.2025 again regd. Notice was issued to workman/union but

union/workman did not appear before this Tribunal and the notice was returned with endorsement ―प्राप्तकताा का ऩता

नह ीं चऱा, वाऩस” Though on 12.09.2025, Sri N. Nath, O.S. Legal H.Q appeared before this Tribunal but

workman/union failed to appear.

4. On perusal of the entire case record it transpires that the workman never appeared before this Tribunal for a

period of 11 years which shows that the workman has lost his interest in this case and therefore, for the ends of

justice, this case deserves to be dismissed for non prosecution.

5. Hence,

ORDERED

that this case is hereby dismissed for non prosecution and a ―No Dispute Award‖ be drawn up in respect of the

above reference case. Let the copies of Award in duplicate be sent to the Ministry of Labour & Employment,

Government of India, New Delhi for information and notification.

SACHINDRA KUMAR PANDEY, Presiding Officer

नई ददल्ली, 13 जनवरी, 2026

का.आ. 16.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj

ds izca/kr=] lac) fu;kstdksa vkSj muds deZdkjksa ds chp vuqca/k esa fufnZ’V औद्योजगक fookn esa dsUnzh;

ljdkj औद्योजगक vf/kdj.k@Je U;k;ky;

ds iapkV (a32/2025) izdkf”kr djrh gSA

[सं.एल-12025/01/2026-आई.आर.(बी-I)-10]

सलोनी, उप जनदेिक

New Delhi, the 13th January, 2026

S.O. 16.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref. 32/2025) of the Cent.Govt.Indus.Tribunal-cum-Labour Court

Hyderabad as shown in the Annexure, in the industrial dispute between the management of State Bank of India

and their workmen.

[No. L-12025/01/2026- IR(B-I)-10]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: - Sri IRFAN QAMAR

Presiding Officer

Dated the 23rd day of July, 2025

INDUSTRIAL DISPUTE No. 32/2025

Between:

Shri Thommandru Pethuru,

Attender, H.No. 2-25,

38

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Mundadugu No8, Unguturu Mandalam,

Telaprolu, Dist. Krishna, AP-521109.

..….Petitioner

AND

1. Branch Manager, State Bank

Of India, Telaprolu, Krishna,

AP-521109.

2. Assistant General manager,

State Bank of India, LHO,

Amaravati, Gunfoundry,

Hyderabad-500001.

…..Respondent

Appearances:

For the Petitioner : None

For the Respondent: Shri B. Shiva Ram Sharma, advocate

AWARD

The Government of India, Ministry of Labour by its Order no. 7/29/2024-B1 dated 30.12.2024 referred the

following dispute under section 10(1)(d) of the I.D. Act, 1947 for adjudication to this Tribunal between the

management of M/s State Bank of India and their workmen. The reference is,

SCHEDULE

―Whether the action of the management of State Bank of India in terminating the services of

Shri Shri Thommandru Pethuru is legal and justified? If not, what relief the workman is entitled to?‖

The reference is numbered in this Tribunal as I.D. No 32/2025 and notices were issued to the parties concerned.

2. Petitioner absent on the date fixed for filing of claim statement and documents. Despite service of notice

and sufficient opportunity didn‘t filed any claim statement and documents. Hence, In absence of claim statement ‗no-

claim‘ Award is passed. Transmit.

Typed to my dictation by Shri Vinay Panghal, LDC corrected and signed by me on this the 23rd day of

July, 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

NIL

NIL

Documents marked for the Petitioner

NIL

Documents marked for the Respondent

NIL

नई ददल्ली, 13 जनवरी, 2026

का.आ. 17.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj

ds izca/kr=] lac) fu;kstdks vkSj muds deZdkjks ds chp vuqca/k esa fufnZ’V औद्योजगक fookn esa dsUnzh;

ljdkj औद्योजगक vf/kdj.k@Je U;k;ky;

ds iapkV (a33/2025) izdkf”kr djrh gSA

[सं.एल-12025/01/2026-आई.आर.(बी-I)-11]

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

39

सलोनी, उप जनदेिक

New Delhi, the 13th January, 2026

S.O. 17.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref. 33/2025) of the Cent.Govt.Indus.Tribunal-cum-Labour Court

Hyderabad as shown in the Annexure, in the industrial dispute between the management of State Bank of India

and their workmen.

[No. L-12025/01/2026- IR(B-I)-11]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: - Sri IRFAN QAMAR

Presiding Officer

Dated the 23rd day of July, 2025

INDUSTRIAL DISPUTE No. 33/2025

Between:

Shri Galanki Moshe Rao,

Attender, D.No.1-167,

Telaprolu, Krishna Dist.

AP-521109.

..….Petitioner

AND

1. Branch Manager, State Bank

Of India, Telaprolu, Krishna,

AP-521109.

2. Assistant General manager,

State Bank of India, LHO,

Amaravati, Gunfoundry,

Hyderabad-500001.

…..Respondent

Appearances:

For the Petitioner : None

For the Respondent: None

AWARD

The Government of India, Ministry of Labour by its Order no. 7/30/2024-B1 dated 30.12.2024 referred the

following dispute under section 10(1)(d) of the I.D. Act, 1947 for adjudication to this Tribunal between the

management of M/s State Bank of India and their workmen. The reference is,

SCHEDULE

―Whether the action of the management of State Bank of India in terminating the services of Shri Shri Galanki

Moshe Rao is legal and justified? If not, what relief the workman is entitled to?‖

The reference is numbered in this Tribunal as I.D. No 33/2025 and notices were issued to the parties concerned.

2. Petitioner absent on the date fixed for filing of claim statement and documents. Despite service of notice

and sufficient opportunity didn‘t filed any claim statement and documents. Hence, In absence of claim statement ‗no-

claim‘ Award is passed. Transmit.

Typed to my dictation by Shri Vinay Panghal, LDC corrected and signed by me on this the 23rd day of

July, 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

40

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

NIL

NIL

Documents marked for the Petitioner

NIL

Documents marked for the Respondent

NIL

नई ददल्ली, 13 जनवरी, 2026

का.आ. 18.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj

ds izca/kr=] lac) fu;kstdkas vkSj muds deZdkjksa ds chp vuqca/k esa fufnZ’V औद्योजगक fookn esa dsUnzh;

ljdkj औद्योजगक vf/kdj.k@Je U;k;ky;

ds iapkV (a34/2025) izdkf”kr djrh gSA

[सं.एल-12025/01/2026-आई.आर.(बी-I)-12]

सलोनी, उप जनदेिक

New Delhi, the 13th January, 2026

S.O. 18.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref. 34/2025) of the Cent.Govt.Indus.Tribunal-cum-Labour Court

Hyderabad as shown in the Annexure, in the industrial dispute between the management of State Bank of India

and their workmen.

[No. L-12025/01/2026- IR(B-I)-12]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: - Sri IRFAN QAMAR

Presiding Officer

Dated the 23rd day of July, 2025

INDUSTRIAL DISPUTE No. 34/2025

Between:

Shri Koyyalamudi Livingston,

Attender, D.No.42-4-27,

Ramakrishnapurma, Grandhalayam St,

Vijayawada, Krishna, AP-520003.

..….Petitioner

AND

1. Branch Manager, State Bank

Of India, Mandadam Branch,

Krishna, AP-520003.

2. Assistant General manager,

State Bank of India, LHO,

Amaravati, Gunfoundry,

Hyderabad-500001.

…..Respondent

Appearances:

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

41

For the Petitioner : None

For the Respondent: None

AWARD

The Government of India, Ministry of Labour by its Order no. 7/31/2024-B1 dated 30.12.2024 referred the

following dispute under section 10(1)(d) of the I.D. Act, 1947 for adjudication to this Tribunal between the

management of M/s State Bank of India and their workmen. The reference is,

SCHEDULE

―Whether the action of the management of State Bank of India in terminating the services of Shri Koyyalamudi

Livingston is legal and justified? If not, what relief the workman is entitled to?‖

The reference is numbered in this Tribunal as I.D. No 34/2025 and notices were issued to the parties concerned.

2. Petitioner absent on the date fixed for filing of claim statement and documents. Despite service of notice

and sufficient opportunity didn‘t filed any claim statement and documents. Hence, In absence of claim statement ‗no-

claim‘ Award is passed. Transmit.

Typed to my dictation by Shri Vinay Panghal, LDC corrected and signed by me on this the 23rd day of

July, 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

NIL

NIL

Documents marked for the Petitioner

NIL

Documents marked for the Respondent

NIL

नई ददल्ली, 13 जनवरी, 2026

का.आ. 19.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj

ds izca/kr=] lac) fu;kstdksa vkSj muds deZdkjksa ds chp vuqca/k esa fufnZ’V औद्योजगक fookn esa dsUnzh;

ljdkj औद्योजगक vf/kdj.k@Je U;k;ky;

ds iapkV (a35/2025) izdkf”kr djrh gSA

[सं.एल-12025/01/2026-आई.आर.(बी-I)-13]

सलोनी, उप जनदेिक

New Delhi, the 13th January, 2026

S.O. 19.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref. 35/2025) of the Cent.Govt.Indus.Tribunal-cum-Labour Court

Hyderabad as shown in the Annexure, in the industrial dispute between the management of State Bank of India

and their workmen.

[No. L-12025/01/2026- IR(B-I)-13]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: - Sri IRFAN QAMAR

Presiding Officer

Dated the 23rd day of July, 2025

42

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

INDUSTRIAL DISPUTE No. 35/2025

Between:

Shri Bandi Xavier,

Temporary Messenger,

9-11-4, Bandi Vari Street Kapadipalem,

Spsr Nellore, AP-524001.

..….Petitioner

AND

1. Branch Manager, State Bank

Of India, Nellore Main Branch,

Spsr Nellore, AP-524003.

2. Assistant General manager,

State Bank of India, LHO,

Amaravati, Gunfoundry,

Hyderabad-500001.

…..Respondent

Appearances:

For the Petitioner : None

For the Respondent: None

AWARD

The Government of India, Ministry of Labour by its Order no. 7/32/2024-B1 dated 30.12.2024 referred the

following dispute under section 10(1)(d) of the I.D. Act, 1947 for adjudication to this Tribunal between the

management of M/s State Bank of India and their workmen. The reference is,

SCHEDULE

―Whether the action of the management of State Bank of India in terminating the services of Shri Bandi

Xavier is legal and justified? If not, what relief the workman is entitled to?‖

The reference is numbered in this Tribunal as I.D. No 35/2025 and notices were issued to the parties concerned.

2. Petitioner absent on the date fixed for filing of claim statement and documents. Despite service of notice

and sufficient opportunity didn‘t filed any claim statement and documents. Hence, In absence of claim statement ‗no-

claim‘ Award is passed. Transmit.

Typed to my dictation by Shri Vinay Panghal, LDC corrected and signed by me on this the 23rd day of

July, 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

NIL

NIL

Documents marked for the Petitioner

NIL

Documents marked for the Respondent

NIL

नई ददल्ली, 13 जनवरी, 2026

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

43

का.आ. 20.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj

ds izca/kr=] lac) fu;kstdksa vkSj muds deZdkjksa ds chp vuqca/k esa fufnZ’V औद्योजगक fookn esa dsUnzh;

ljdkj औद्योजगक vf/kdj.k@Je U;k;ky;

ds iapkV (a92/2025) izdkf”kr djrh gSA

[सं. एल-12025/01/2026-आई.आर.(बी-I)-14]

सलोनी, उप जनदेिक

New Delhi, the 13th January, 2026

S.O. 20.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref. 92/2025) of the Cent.Govt.Indus.Tribunal-cum-Labour Court

Hyderabad as shown in the Annexure, in the industrial dispute between the management of State Bank of India

and their workmen.

[No. L-12025/01/2026- IR(B-I)-14]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: - Sri IRFAN QAMAR

Presiding Officer

Dated the 1st day of August, 2025

INDUSTRIAL DISPUTE No. 92/2025

Between:

Shri Chilapam Mallam Kondiah,

Tempory Messenger and Water Boy

Sweeper, Arundhathiwada Karatampu

Narampeta, Spsr Nellore, AP-524307.

..….Petitioner

AND

1. Branch Manager, State Bank

Of India, Adb Atmakur Branch,

Spsr Nellore, AP-524322.

2. Assistant General Manager,

State Bank of India, LHO,

Amaravati, Gunfoundry,

Hyderabad-500001.

…..Respondent

Appearances:

For the Petitioner : Ch. Venkat Raman, advocate

For the Respondent: Shri B Shiva Ram Sharma, advocate

AWARD

The Government of India, Ministry of Labour by its Order no. 7/84/2024-B1 dated 31.12.2024 referred the

following dispute under section 10(1)(d) of the I.D. Act, 1947 for adjudication to this Tribunal between the

management of M/s State Bank of India and their workmen. The reference is,

SCHEDULE

―Whether the action of the management of State Bank of India in terminating the services of Shri Chilapam

Mallam Kondiah is legal and justified? If not, what

44

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

relief the workman is entitled to?‖

The reference is numbered in this Tribunal as I.D. No 92/2025 and notices were issued to the parties concerned.

2. Petitioner absent on the date fixed for filing of claim statement and documents. Despite service of notice

and sufficient opportunity didn‘t filed any claim statement and documents. Hence, In absence of claim statement ‗no-

claim‘ Award is passed. Transmit.

Typed to my dictation by Shri Vinay Panghal, LDC corrected and signed by me on this the 1st day of

August, 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

NIL

NIL

Documents marked for the Petitioner

NIL

Documents marked for the Respondent

NIL

नई ददल्ली, 13 जनवरी, 2026

का.आ. 21.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj

ds izca/kr=] lac) fu;kstdksa vkSj muds deZdkjksa ds chp vuqca/k esa fufnZ’V औद्योजगक fookn esa dsUnzh;

ljdkj औद्योजगक vf/kdj.k@Je U;k;ky;

ds iapkV (a93/2025) izdkf”kr djrh gSA

[सं. एल-12025/01/2026-आई.आर.(बी-I)-15]

सलोनी, उप जनदेिक

New Delhi, the 13th January, 2026

S.O. 21.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref. 93/2025) of the Cent.Govt.Indus.Tribunal-cum-Labour Court

Hyderabad as shown in the Annexure, in the industrial dispute between the management of State Bank of

India and their workmen.

[No. L-12025/01/2026- IR(B-I)-15]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: - Sri IRFAN QAMAR

Presiding Officer

Dated the 1st day of August, 2025

INDUSTRIAL DISPUTE No. 93/2025

Between:

Shri Rayavarapu Ramesh Babu,

Messenger, 1-65, Madhirapadu,

Krishna, AP-521311.

..….Petitioner

AND

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

45

1. Branch Manager, State Bank

Of India, Vuyyuru Branch,

Krishna, AP-521165.

2. Assistant General manager,

State Bank of India, LHO,

Amaravati, Gunfoundry,

Hyderabad-500001.

…..Respondent

Appearances:

For the Petitioner : None

For the Respondent: Shri Y. Ranjeeth Reddy, advocate

AWARD

The Government of India, Ministry of Labour by its Order no. 7/85/2024-B1 dated 31.12.2024 referred the

following dispute under section 10(1)(d) of the I.D. Act, 1947 for adjudication to this Tribunal between the

management of M/s State Bank of India and their workmen. The reference is,

SCHEDULE

―Whether the action of the management of State Bank of India in terminating the services of Shri Rayavarapu

Ramesh Babu is legal and justified? If not, what relief the workman is entitled to?‖

The reference is numbered in this Tribunal as I.D. No 93/2025 and notices were issued to the parties concerned.

2. Petitioner absent on the date fixed for filing of claim statement and documents. Despite service of notice

and sufficient opportunity didn‘t filed any claim statement and documents. Hence, In absence of claim statement ‗no-

claim‘ Award is passed. Transmit.

Typed to my dictation by Shri Vinay Panghal, LDC corrected and signed by me on this the 1st day of

August, 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

NIL

NIL

Documents marked for the Petitioner

NIL

Documents marked for the Respondent

NIL

नई ददल्ली, 13 जनवरी, 2026

का.आ. 22.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj

जचत्तरंजन लोकोमोरटव वर्कसा ds izca/kr=] lac) fu;kstdkas vkSj muds deZdkjksa ds chp vuqca/k esa fufnZ’V औद्योजगक fookn

esa dsUnzh; ljdkj औद्योजगक vf/kdj.k@Je U;k;ky;

ds iapkV (a03/2018) izdkf”kr djrh gSA

[सं. एल-12025/01/2026-आई.आर.(बी-I)-16]

सलोनी, उप जनदेिक

New Delhi, the 13th January, 2026

S.O. 22.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref. 03/2018) of the Cent.Govt.Indus.Tribunal-cum-Labour Court

46

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Asansol as shown in the Annexure, in the industrial dispute between the management of Chittaranjan

Locomotive Works and their workmen.

[No. L-12025/01/2026- IR(B-I)-16]

SALONI, Dy. Director

ANNEXURE

BEFORE THE CENTRAL GOVT. INDUSTRIAL TRIBUNAL -CUM- LABOUR COURT,

ASANSOL.

PRESENT:

Shri Ananda Kumar Mukherjee,

Presiding Officer,

C.G.I.T-cum-L.C., Asansol.

APPLICATION NO. 03 OF 2018

PARTIES: Anubha Sen

Vs.

1. General Manager, Chittaranjan Locomotive Works

2. Chief Personnel Officer, Chittaranjan Locomotive Works

3. Chief Medical Officer, Kasturba Gandhi Hospital, CLW.

REPRESENTATIVES:

For the Applicant:

None.

For the Respondent No. 1:

None.

For the Respondent No. 2:

None.

For the Respondent No. 3:

Mr. Jayanta Goswami, Advocate.

INDUSTRY:

Railways.

STATE:

West Bengal.

Dated:

10.11.2025

AWARD

1.

Smt. Anubha Sen, the applicant as well as the Chief Personnel Officer, Chittaranjan Locomotive Works,

opposite party are found unrepresented without step. Mr. Jayanta Goswami, learned advocate appeared for the Chief

Medical Officer, Kasturba Gandhi Hospital, Chittaranjan Locomotive Works, the other opposite party.

2.

The case is fixed up today for evidence of Anubha Sen. In compliance with order dated 29.08.2025 Notice

was issued to her for appearance and hearing. I find from the record that Notice under registered post has been sent to

the petitioner at her address and same has been returned with a report that addressee has died. Let the envelope

containing Notice be kept with the record.

Petitioner filed the instant application under sub-sections 2 and 3 of Section 2A of the Industrial Disputes

(Amendment) Act, 2010 praying for a direction upon the respondent employer to allow her to join in the post of Staff

Nurse at the Hospital of the company and continue in her employment until she reached the age of superannuation

with all pay, perks and benefits to which a staff nurse is entitled with effect from 05.01.2009 and for setting aside the

order dated 21.09.2015 by which her prayer was turned down by the Competent Authority of the opposite party

establishment.

3.

Since the petitioner passed away during pendency of this case and no evidence has been adduced till date, the

Industrial Dispute raised by the petitioner in the application cannot be considered. The application is accordingly

disposed of.

Hence,

ORDERED

The Application under sub-section 2 and 3 of Section 2A of the Industrial Disputes (Amendment) Act, 2010

is disposed of due to abatement. An Award be drawn up in light of the above decision. Let copies of the Award in

duplicate be sent to the Ministry of Labour and Employment, Government of India, New Delhi for information

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

47

and Notification.

ANANDA KUMAR MUKHERJEE, Presiding Officer

नई ददल्ली, 13 जनवरी, 2026

का.आ. 23.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj

ds izca/kr=] lac) fu;kstdkas vkSj muds deZdkjksa ds chp vuqca/k esa fufnZ’V औद्योजगक fookn esa dsUnzh; ljdkj

औद्योजगक vf/kdj.k@Je U;k;ky;

ds iapkV (a80/2012) izdkf”kr djrh gSA

[सं. एल-41011/92/2012-आई.आर.(बी-I)]

सलोनी, उप जनदेिक

New Delhi, the 13th January, 2026

S.O. 23.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref.80/2012) of the Cent.Govt.Indus.Tribunal-cum-Labour Court

Lucknow as shown in the Annexure, in the industrial dispute between the management of North Eastern

Railway and their workmen.

[No. L-41011/92/2012- IR(B-I]

SALONI, Dy. Director

ANNEXURE

CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL –CUM- LABOUR COURT, LUCKNOW

PRESENT

JUSTICE ANIL KUMAR

PRESIDING OFFICER

I.D. No. 80/2012

Reference No. L-41011/92/2012-IR(B-I) dated 27.09.2012

BETWEEN

Shri Satyanam, S/o Shri Bal Govind,

C/o Madal Mantri, NE Railway Union, R/o S.S 931 Sec. HLDA Colony,

Kanpur Road, Lucknow

Versus

1. Divisional Railway Manager (Personal),

North Eastern Railway, DRM Office, Ashok Road, Lucknow

2. Sr. Section Engineer Electrical (S./C.) Lucknow Junction, Lucknow

3. The Sr. Divisional Electrical Engineer, North Eastern Railway

DRM Office, Ashok Marg, Lucknow

Judgment

By means of order/reference L-41011/92/2012-IR(B-I) dated 27.09.2012, the Central Government

considered it desirable to refer the dispute for adjudication to the following effect:-

“Whether the action of the management of North Eastern Railway, Lucknow in not promoting Shri Satyanam

S/o Shri Bal Govind by allowing him benefit of seniority from August, 1987 and promoting his juniors to the

post of Fitter Grade-II, is legal and justified? To what relief the concerned workman is entitled?"

In response, the claimant has filed his statement of claim on 10.04.2013; wherein following relief has been sought:

“अतएवीं न्यायाऱय श्रीमान जी ननवेदन है कक वाद से सींबींधधत श्रममक द्वारा प्रस्तुत वाद-ऩत्र में वर्णात प्रस्तर 1

ऱगायत 26 के तथ्यों को सींऻान में ऱेते हुये वाद से सींबींधधत श्रममक को रेऱ ऩररषद के आदेश ददनाींक 21.04.89 के ऩत्र

सींख्या ई (एन.बी. )/11/84/अ-ई (1)/1 ऩी के ऩैरा-3 के अनुसार एवीं भारतीय रेऱ ननयमावऱ के ऩैरा 311 के अनुक्रम में

48

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

प्रशासननक आधार ऩर स्थानान्तररत कमाचाररयो को समाहरण करने वाऱे सम्वगा के उऩयुाक्त ग्रेड में ऩूणा वररष्ठता के

साथ समाहररत ककया जाय तथा इस आदेश के अनुसार सींबींधधत कमाकार को ऩोसस्टींग की नतधथ-अगस्त 1983 से मूऱ

वर यता का ऱाभ देते हुये कननष्ठ कमाचाररयों सवाश्री ककताबुल्ऱा ग्रेड 1 तथा ऱल्ऱन प्रसाद ग्रेड-1 व ऩशुऩनत नाथ

ड्राइवर माऱ गाडी से ऊऩर वर यता / वररष्ठता का ऱाभ देते हुये ग्रेड-। तक के प्रोन्ननत व आधथाक ऱाभ अनुमन्य कराये

जाने का आदेश ककया जाना न्याय दहत में आवश्यक है एवीं सेवायोजक के ववरूद्ध गुण-दोषों के आधार ऩर अमभननणाय

ददया जाना न्यायोधचत व श्रममक / यूननयन द्वारा प्राथानीय है। अनत कृऩा होगी।”

The respondent has filed written statement denying the claim; and thereafter the rejoinder and documents have been

exchanged.

On behalf of respondent, raised an objection that by means of present case as the workman has sought seniority from

August, 1987 and raised the industrial dissipate on the basis of which, reference has been made in the year 2012

(27.09.2012), so the present industrial dispute filed by him is liable to be dismissed, on the ground of delay & laches.

Thus, main point to be decided ―whether the relief as claimed by workman/Shri Satyanam for promotion and benefit

of seniority from August, 1987, can be granted or not?‖ as he has challenged the same after 38 years from the date of

cause of action?

Answer to the said question find place in the judgment passed by The Hon'ble Rajasthan High Court in the case of

M.D./Chief Manager, Jaipur Agar, Rajasthan State Road Transport Corp., Jaipur v. General Secretary,

Rajasthan Transport Workers Organisation, Jaipur, 2024 (182) FLR 892, in which it has been held as under:

“6. In the case at hand, the respondent-workman was appointed on the post of Driver vide order

dated 17.12.1986. Accordingly, the benefit of first selection scale became due after nine years, sometime in

2004-2005. The same was not done and neither was the non-grant of the benefit at the time was challenged

by the respondent-workman. The benefit of first selection scale was only granted vide order dated

06.04.2004. This deferment was also not challenged immediately and was only challenged for the first time

in 2013. The first issue that is to be decided by this Court is what effect, if any, would this delay have on the

merits of the case.

7. To decide the first issue, recourse may be taken to Hon'ble Supreme Court judgment of Mohan Lal

(supra), the relevant portion of which is reproduced as under:

"19. We are clearly of the view that though the Limitation Act, 1963 is not applicable to the

reference made under the ID Act but delay in raising industrial dispute is definitely an important

circumstance which the Labour Court must keep in view at the time of exercise of discretion

irrespective of whether or not such objection has been raised by the other side. The legal position

laid down by this Court in Gitam Singh [Asstt. Eng., Rajasthan Development Corpn v. Gitam

Singh], that before exercising its judicial discretion, the Labour Court has to keep in view all

relevant factors including the mode and manner of appointment, nature of employment, length of

service, of service, the ground on which termination has been set aside and the delay in raising

industrial dispute before grant of relief in an industrial dispute, must be invariably followed.

20. Now, if the facts of the present case are seen, the position that emerges is this: the workman

worked as a work-charged employee for a period from 1.11.1984 to 17.2.1986 (in all he worked for

286 days during his employment). The services of the workman were terminated with effect from

18.2.1986. The workman raised the industrial dispute in 1992 i.e. after 6 years of termination. The

Labour Court did not keep in view admitted delay of 6 years in raising the industrial dispute by the

workman. The judicial discretion exercised by the Labour Court is, thus, flawed and unsustainable.

The Division Bench of the High Court was clearly in error in restoring the award of the Labour

Court whereby reinstatement was granted to the workman. Though, the compensation awarded by

the Single Judge was too low and needed to be enhanced by the Division Bench but surely

reinstatement of the workman in the facts and circumstances is not the appropriate relief"

Further, the Hon'ble Supreme Court in Sadhu Singh (supra), held as

under:

11. For the above reasons, we are of the view that both on the question of limitation as well as on

merits, the respondent was not entitled to the relief which was sought. The suit instituted by the

respondent resp seven years after he had demitted office was barred by limitation. That apart, the

respondent failed to meet the basic requirements for the selection grade. (Emphasis supplied)

Further, the Hon'ble Supreme Court, in Bichitrananda Behera (supra), after considering the erstwhile

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

49

judgments of Union of India v Tarsem Singh, Union of India v. N. Murugesan, and Chairman, State Bank of

India v. M.J. James, concluded that delay and laches are vital in service matters, and can be seen as

acquiescence."

Hon'ble Karnataka High Court in the case of Chamundeshwari Sugars Ltd. V. Н.Т. Raju (Since Deceased) by

L.Rs. & others 2025 (184) FLR 721 has held as under:

"7. The facts are sufficiently said and they do not require reiteration. The issue relates to the grant of

permission to prosecute the petitioner. With this background, let me consider what facts I have here. In the

present case, the proceedings began based on the complaint made by Late H.T. Raju Suffice it to note that

HT. Raju made a complaint to the Labour Commissioner on 16.05.2017. The true copy of the complaint is

furnished along with the Writ Petition and the same is marked as Annexure-M. It is dated 16.05.2017 and

H.T Raju made allegations about non-payment of HRA, medical allowance and leave wages as per

Settlement dated 21.08 1986. The Management filed its objections and brought to the notice of the Labor

Commissioner that it had settled all the dues to HT. Raju.

It is not in dispute that the Management and the Union signed a Settlement dated 21.08.1986 and thereafter,

several settlements were entered into between the Management and the respective Union from time to time.

Moreover. H.T. Raju was allotted a quarter and therefore, he was not eligible for HRA. It is pivotal to note

that H.T. Raju resigned and the same was accepted by the Management accordingly a service certificate was

also issued back in the year 2006 ie, on 04.09.2006 and the gratuity amount and leave encashment were also

paid.

If one visualizes the scenario of the facts, the settlement happened back in the year 1986 and the dues were

settled in the year 2006. Strangely, H.T. Raju made an allegation and gave a complaint. There is an

inordinate delay of almost thirty years from the date of settlement. Reckoning the date from the settlement of

dues, there is an inordinate delay of almost eleven years. The impugned order is at Annexure-Q. A perusal of

the same reflects that the Labor Commissioner has erroneously proceeded in the matter and has blindly

granted permission to prosecute the petitioner Management."

Further the Hon'ble Himanchal Pradesh High Court in the case of Slig Ram v. Executive Director (Personnel) &

another 2025 (184) 1043 has held as under:

8 It is a matter of record that according to the reference, petitioner's services were terminated w.e.f.

23/26.03.1998. The questions to be answered by the learned Labour Court were (i) whether such

termination, of petitioner's services who had raised industrial dispute after more than 16 years, without

complying the provisions of the Act is legal & justified. (ii) If not, keeping in view the delay of more than 16

years in raising the industrial dispute, to what relief petitioner would be entitled to.

9. Industrial dispute was raised by the petitioner on 11.03.2014. Admittedly cause of action had accrued to

the petitioner in the year 2007, when according to him persons disengaged alongwith him were re-instituted.

From 26.03.1998 (date of termination of petitioner's services as mentioned in the reference), there was delay

of 16 years in taking recourse to law.

Accordingly, it has been held that workman is not entitled for any relief.

In case of The State of Himachal Pradesh and other vs. Smt. Tara Devi reported in 2025 LLR(740) it has been

held as under:-

16. The issue still remains that if the workman was really aggrieved by the grant of fictitious breaks to her or

the factum of juniors allegedly being retained while she was disengaged, then, why she did not raise the

issue in between the year 2004 to 2010 and why did she rake up the issue only thereafter when she served for

16 days in the year 2010. All these aspects of the matter have been ignored by the learned Labour Court.

17. Learned Court has not appreciated that the con- duct of the workman also has to be taken into con-

sideration and in this particular case the conduct of the workman did not entail the relief as was granted to

her by the learned Labour Court.

And in case of Saryu Ravidas @ Seryu Rabidas & Others vs. Central Coalfields Ltd. and Others, reported in

2025(186) FLR (154) it has been held as under:-

15. In the case of University of Delhi v. Union of India and others [(2020)13 SCC 745], it has been held that

condonation of long delay should not be automatic as the accrued right or the adverse consequence to the

opposite party is also to be kept in perspective. While considering condonation of delay, the routine

explanation would not be enough, rather it should be in the nature of indicating "sufficient cause" to justify

the delay which will depend on the backdrop of each case and will have to be weighed carefully by the

Courts based on the fact situation.

50

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

16. In the case of Shankara Co-op. Housing Society Ltd. v. M. Prabhakar [(2011)5 SCC 607], the Hon'ble

Supreme Court has held that delay and laches is one of the factors that requires to be borne in mind by the

High Courts when they exercise their discretionary power under Article 226 of the Constitution of India. In

an appropriate case, the High Court may refuse to invoke its extra-ordinary powers, if there is such

negligence or omission on the part of the applicant to assert his rights taken in conjunction with the lapse of

time and other circumstances. Filing of representations would not be adequate explanation to justify

the delay.

17. In the case of State of M.P. and others v. Nandlal Jaiswal and others [(1986)4 SCC 566], the Hon'ble

Supreme Court has held that power of the High Court to issue an appropriate writ under Article 226 of the

Constitution of India is discretionary and the High Court in exercise of its discretionary power, does not

ordinarily assist the tardy and the indolent or the acquiescent and the lethargic. If there is inordinate delay

on the part of the petitioner in filing a writ petition and such delay is not satisfactorily explained, the High

Court may decline to intervene and grant relief in the exercise of its writ jurisdiction.

18. It is thus well settled that delay and laches is one of the factors to decline exercise of discretionary

power under Article 226 of the Constitution of India, if there is negligence or omission on the part of the

applicant to assert his rights.

19. Considering the facts and circumstances of the present case as well as the aforesaid judicial

pronouncements, this Court is of the view that the present case has been preferred after an inordinate delay

i.e. 15 years of passing the impugned order dated 03.05.2010 that too, without giving any cogent explanation

for the same. As such there is no reason to exercise discretionary jurisdiction so as to grant any relief to the

petitioners.

Recently, in the case of Amna Khatoon & Others v.s. Aligarh Muslim University Through Its Vice-Chancellor,

Aligarh & Another [2025(186)FLR 590], The Hon‘ble Allahabad Court has dismissed the claim as raised by the

claimant/Petitioner, on the ground of limitation, and also on the grounds that selection of the juniors were not

challenged by the workman/petitioner, who was superseded, relevant paragraph reads as under:-

16. At this stage, Court takes note that during pendency of this writ petition i.e., for last 5 years, much water

has flown and that posts have already been filled up and since their selection are not under challenge,

therefore, relief sought in present writ petition is rendered infructuous.

Reverting to the facts of present case, as it is not in disputed between the parties rather admitted fact, that by means of

present case, applicant/workman, has challenged his non-promotion and denial of seniority from August, 1987, by

means of present ID case after more than 38 years, so the said relief cannot be granted on the ground of delay and

laches, as per the law stated here in above.

AWARD

For the foregoing reasons the workman is not entitled for any relief, and the reference is answered accordingly.

Lucknow.

24th December, 2025.

Justice ANIL KUMAR, Presiding Officer

नई ददल्ली, 15 जनवरी, 2026

का.आ. 24.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj

ds izca/kr=] lac) fu;kstdkas vkSj muds deZdkjksa ds chp vuqca/k esa fufnZ’V औद्योजगक fookn esa dsUnzh;

ljdkj औद्योजगक vf/kdj.k@Je U;k;ky;

ds iapkV (a04/2011) izdkf”kr djrh gSA

[सं.एल-12012/83/2010-आई.आर.(बी-II)]

सलोनी, उप जनदेिक

New Delhi, the 15th January, 2026

S.O. 24.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref. 04/2011) of the Cent.Govt.Indus.Tribunal-cum-Labour Court

Lucknow as shown in the Annexure, in the industrial dispute between the management of Allahabad Bank

and their workmen.

[No. L-12012/83/2010- IR(B-II)]

SALONI, Dy. Director

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

51

ANNEXURE

CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT, LUCKNOW.

I.D. No. 04/2011

Ref No.L-12012/83/2010 (IR(B-II)) Dated: 05.01.2011

Shri Sanjay Kumar Singh

S/o Sh. Tejpal Singh

R/o Village & Post Neer,

Distt. Hardoi Hardoi (Distt.) …………Appellant

Versus

1- Asstt General Manager, Allahabad Bank,

Zonal Office, Lalbagh, Sitapur. ………Respondent no.2

2- Branch Manager, Allahabad Bank

Hardoi Branch, EDD-1,

Naumaish Chauraha, Hardoi. ………Respondent no.2

AWARD

By order No. L-12012/83/2010 (IR(B-II)) Dated: 05.01.2011, the present Industrial Dispute has been

referred for adjudication in exercise of the powers conferred by clause (d) of sub-section (1) and sub-section (2A) of

Section 10 the Industrial Disputes Act, 1947 (14 of 1947) by the Central Government, with following schedule:

"Whether the action of the management of Allahabad Bank in removing Shri Sanjay Kumar, daily wager

workman from service w.e.f.10.02.2010 is legal or justified? If not, what relief the concerned workman is

entitled to?"

Accordingly, the present I.D case no. 04/2011, registered before this tribunal.

SUBMISSION ON BEHALF OF WORKMAN

On behalf of the workman in brief it has been submitted that he was appointed as casual/daily wage worker on the

post of peon in Allahabad Bank, Hardoi Branch, EDD-1 Numainsg Chauraha, by the Branch manager in the year

2004, and the work and duties discharged by him was equalant to the work discharged by class 4th/sub staff of the

bank, further during his tenure of working at various point of time he was also deputed delivery of Dak etc to various

bank.

Further while he was working and discharging his duties without any reasons respondent no.2/Branch Manager

terminated/retrenched his service on 15.02.2010.

Accordingly it is submitted on behalf of the workman that the impugned action on the part of the respondent thereby

terminating/retrenching his service with effect from 15.02.2010, is illegal and in violation of Section 25F of the

Industrial Dispute Act, as such the relief claimed by him that the oral termination/retrenchment order dated

15.02.2010, may be set aside and reinstated in his service with all consequential benefit.

SUBMISSION ON BEHALF OF RESPONDENT

Shri SK Shukla, Advocate on behalf of respondent, on the basis of pleading in the written statement, submits as

under:-

(i). The opposite party Bank is a Government of India undertaking in public sector and recruitment of subordinate

staff therein is made strictly according to prescribed mandatory provisions of Employment Exchange (Compulsory

Notification of Vacancies) Act, 1959 as also to Rules/Regulations/Notifications/Guidelines issued time to time.

(ii). For the process of recruitment for permanent subordinate staff in the opposite party Bank, whenever needed,

vacancies are notified in newspapers of wide circulation and names of eligible candidates are also sponsored from

Local Employment Exchange. The eligible candidates are called for written test followed by interview and panel of

successful candidates is prepared. The appointment letters are issued and the incumbent is allowed to join duty at the

place of his posting only after successful medical test. The appointee is paid scaled wages/salary after statutory

deductions.

(iii). The appointee is required to endorse his attendance in the prescribed attendance register at the branch. It is

further stated that Zonal Head is only appointing authority for subordinate staff in the opposite party Bank in their

52

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

respective zones. No official other than Zonal Head is competent to appoint any subordinate staff in the Bank. The

Branch Manager was not competent to appoint any person in the branch.

(iv). Indisputedly, claimant had never under gone through above recruitment procedure for subordinate staff in

opposite party Bank.

(v). It is settled law that no back door entry is permissible in public employment and it is violation of Article-14 and

16 of Constitution of India and the law laid down by the Apex Court. However it is also settled law that any illegal

appointment, if any, would not create any right in public post. Further any employee who secures appointment in

breach of mandatory rules is not entitled for benefit of provisions of ID Act, 1947.

(vi). There was no relationship of master and servant between claimant and opposite party Bank at any point of time

and therefore present dispute is not covered within definition of Industrial Dispute under ID Act, 1947. Further there

was no vacancy of peon in the concerned branch as on date.

(vii). It is denied that claimant had completed 240 days of continuous service in the opposite party Bank. Further the

Bank documents have been manipulated for the purposes of the case and the same would not even help the case of the

claimant in any manner.

(viii). As the claimant is not covered within definition of "workman" provided under I D Act, 1947, hence no question

of violation of mandatory provisions of I D Act, 1947 would arise.

Accordingly, on behalf of respondent it has been prayed that the present ID case filed by the workman lacks merit, the

same to be dismissed.

FINDING AND CONCLUSION

I have heard the learned counsel respondent, in spite of notice none appeared on behalf of workman, and going

through the material on record, and document filed by the parties, oral and documentary etc, following points part are

to be decided in the present case.

(1). Whether the plea raised by the respondent, that the present case filed by workman/Shri Sanjay Kumar is

not maintainable, because Amendment Act 2010 would not apply?

(2). Whether Claimant/Shri Sanjay Kumar falls within the definition of workman, as per section 2(S) of the

Act, or not?

(3). whether the workman has completed 240 days continuously in the last 12 calendar months in the preceding

year as casual/daily wager on 10.02.2010, prior to terminated/retrenched of his service without following the

provision of section 25F of the Industrial Disputes Act, or not?

(4). If the workman/Shri Sanjay Kumar has completed 240 days continuously in the last 12 calendar month

prior the date of his termination/retrenchment, on 10.02.2010, without the following provision with section 25F

of the Act, his services was retrenched then for what relief he is entitled?

POINT No. (1)

Whether the plea raised by the respondent, that the present case filed by workman/Shri Sanjay Kumar is not

maintainable, because Amendment Act 2010 would not apply?

The Industrial Dispute Amendment Act 2010 has been promulgated that is Industrial Dispute Act 1947, by which

Section 2A has been amended the amended which reads as under:-

[2A. Dismissal, etc., of an individual workman to be deemed to be an industrial dispute.-[(1)] Where any

employer discharges, dismisses, retrenches or otherwise terminates the services of an individual workman,

any dispute or difference between that workman and his employer connected with, or arising out of, such

discharge, dismissal, retrenchment or termination shall be deemed to be an industrial dispute

notwithstanding that no other workman nor any union of workmen is a party to the dispute.]

[(2) Notwithstanding anything contained in section 10, any such workman as is specified in sub-section (1)

may, make an application direct to the Labour Court or Tribunal for adjudication of the dispute referred to

therein after the expiry of forty-five days from the date he has made the application to the Conciliation

Officer of the appropriate Government for conciliation of the dispute, and in receipt of such application the

Labour Court or Tribunal shall have powers and jurisdiction to adjudicate upon the dispute, as if it were a

dispute referred to it by the appropriate Government in accordance with the provisions of this Act and all the

provisions of this Act shall apply in relation to such adjudication as they apply in relation to an industrial

dispute referred to it by the appropriate Government.]

[(3) The application referred to in sub-section (2) shall be made to the Labour Court or Tribunal before the

expiry of three years from the date of discharge, dismissal, retrenchment or otherwise termination of service

as specified in sub- section (1).]

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

53

However in the present case the workman has not filed his case under the said section but the same has been referred

to this Tribunal, by way of reference dated 15.01.2011, as per clause (d) of sub-section (1) and sub- section (2A) of

Section 10 of the Industrial Disputes Act, 1947 (14 of 1947) by the appropriate government, so the argument in

question submitted on behalf of respondent by Shri SK Shukla, Advocate has got not force, and the same has been

rejected.

POINT No. (2)

Whether Claimant/Shri Sanjay Kumar falls within the definition of workman, as per section 2S of the Act, or

not?

The definition of 'workman' as given under Section 2(s) of the Industrial Disputes Act 1947. In this regard the

definition, as it stood originally when the ID Act came into force w.e.f. 1.4.1947, read as follows:-

"(s) "workman means any person employed (including an apprentice) in any industry to do any skilled or

unskilled manual or clerical work for hire or reward and includes, for the purposes of any proceeding under

this Act in relation to an industrial dispute, but does not include any person employed in the naval, military,

or air service of the Crown."

The definition was amended by Amending Act No. 36 of 1956 which came into force from 29th August, 1956 to read

as follows:-

(s) "workman" means any person (including an apprentice) employed in any industry to do any skilled or

unskilled manual, supervisory technical or clerical work for hire or reward, whether the terms of

employment be express or implied, and for the purposes of any proceeding under this Act in relation to an

industrial dispute, includes any such person who has been dismissed, discharged or retrenched in connection

with, or as a consequence of, that dispute, or whose dismissal discharge, or retrenchment has led to that

dispute, but does not include any such person -

(i) who is subject to the Army Act, 1950, or the Air Force Act, 1950, or the Navy (Discipline) Act,

1934; ог

(ii) who is employed in the police service or as an officer or other employee of a prison; or

(iii) who is employed mainly in a managerial or administrative capacity;

or

(i) who, being employed in a supervisory capacity, draws wages exceeding five hundred rupees per

mensem or exercises, either by the nature of the duties attached to the office or by reason of the

powers vested in him, functions mainly of a managerial nature."

The change brought about by this Amendment was that the persons employed to do "supervisory" and "technical"

work were also included in the definition for the first time by this Amendment, although those who were employed in

a supervisory capacity were so included in the definition provided their monthly wage did not exceed Rs.500.

The definition of 'workman' was further amended by Amending Act No.46 of 1982 which was brought into force

w.e.f. 21.8 1984 and the same reads as under:-

"(s) "workman" means any person (including an apprentice) employed in any industry to do any manual,

unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms

of employment be express or implied, and for the purposes of any proceeding under this Act in relation to an

industrial dispute, includes any such person who has been dismissed, discharged or retrenched in connection

with, or as a consequence of, that dispute, or whose dismissal discharge, or retrenchment has led to that

dispute, but does not include any such person-

(i) who is subject to the Air Force Act, 1950 (45 of 1950), or the Army Act, 1950 (46 of 1950), or

the Navy Act, 1957 (62 of 1957);

(ii) who is employed in the police service or as an officer or other employee of a prison, or

(iii) who is employed mainly in a managerial or administrative capacity,

or

(iv) who, being employed in a supervisory capacity, draws wages exceeding one thousand six

hundred rupees per mensem or exercises, either by the nature of the duties attached to the office or

by reason of the powers vested in him, functions mainly of a managerial nature."

A bare perusal of the aforementioned provision clearly indicates that a person would come within the purview of the

said definition if he: (i) is employed in any industry; and (ii) performs any manual, unskilled, skilled, technical,

operational, clerical or supervisory work.

54

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Hon'ble the Apex Court in the case of All India Reserve Bank Employees Association Versus Reserve Bank of

India reported in AIR 1966 SC 305 held as under-

23. The argument is extremely ingemous and the simile interesting but it misses the realities of the

amendment of the Industrial Disputes Act in 1956. The definition of 'workman' as it originally stood before

the amendment in 1956 was as follows :-

"2. (s) 'workman' means any person employed (including in apprentice) in any industry to do any

skilled (11) 91 L. ed. 104 or unskilled manual or clerical work for hire or reward and includes, for

the purposes of any proceedings under this Act in relation to an industrial dispute a workman

discharged during that dispute, but does not include any person employed in naval, military or air

service of the Government."

24. The amending Act of 1956 introduced among the categories of persons already mentioned persons

employed to do supervisory and technical work. So far the language of the earlier enactment was used.

When, however, exceptions were engrafted, that language was departed from in clause (iv) partly because

the draftsman followed the language of clause(iii) and partly because from persons employed on supervision

work some are to be excluded because they draw wages exceeding Rs 500 per month and some because they

function mainly in a managerial capacity or have duties of the same character. But the unity between the

opening part of the definition and clause (iv) was expressly preserved by using the word 'such' twice in the

opening part. The words, which bind the two parts, are not-"but does not include any person". They are "but

does not include any such person showing clearly that what is being excluded is a person who answers the

description" employed to do supervisory work" and he is to be excluded because being employed in a

'supervisory capacity' he draws wages exceeding Rs. 500 per month or exercises functions of a particular

character. The scheme of our Act is much simpler then that of the American statutes. No doubt like the Taft-

Hartley Act the amending Act of 1956 in our country was passed to equalize bargaining power and also to

give the power of bargaining and invoking the Industrial Disputes Act to supervisory workmen, but it gave it

only to some of the workmen employed on supervisory work 'Workman' here includes an employee employed

as supervisor. There are only two circumstances in which such a person ceases to be a workman Such a

person is not a workman if he draws wages in excess of Rs. 500 per month or if he performs managerial

functions by reason of a power vested in him or by the nature of duties attached to his office The person who

ceases to be a workman is not a person who does not answer the description "employed to do supervisory

work" but one who does answer that description. He goes out of the category of "workmen" on proof of the

circumstances excluding him from the category."

Further in the case of H.R. Adyanthaya & others Versus Sandoz India Ltd. reported in (1994) 5 SCC 373, the

Hon'ble Apex Court held as under:-

"10. It is thus obvious from the decision that the contention on behalf of the workman before the Industrial

Tribunal as well as before this Court was that the employee was doing either manual or clerical work, and

that not only he had no supervisory duties but he was doing his work under the direction of his superiors

and, therefore, he was a workman within the meaning of the definition of workman as it stood then. The

dispute in question had arisen prior to 6th January, 1956. The definition of 'workman' at the relevant time

included only those persons who were employed to do any skilled or unskilled manual or clerical work.

Hence the relevant contention on behalf of the workman which was negatived by this Court An inference

from this decision is also possible, viz., that if the employees' work was mainly manual or clerical, he would

have, even as the definition stood then, been covered by it." (See:C.G. Gupta Versus Glaxo Smith Klin

Pharmaceutical Limited reported in (2007) 7 SCC 171)

Further the Hon'ble the Apex Court in the case of Chauharya Tripathi & others Versus L.I.C. of India & others

reported in 2015 (7) SCC 263, in Para-7 held as under.-

"7. Keeping in view the question posed at the beginning, we are obligated to make a survey of the authorities

that have been pronounced by this Court specifically pertaining to the Development Officers working in LIC.

A three- Judge Bench of this Court in S.K. Verma vs. Mahesh Chandra & Anr.3, adverted to the definition of

'workman' as originally defined under Section 2(s) of the Act and the substantial amendment that was

brought in 1956 in respect of the definition of 'workman' and referred to the decision in Workmen vs. Indian

Standards Institution4 and dwelled upon the hierarchy of officers working in LIC, the duties performed by

such officers and 2 (2008) 11 SCC 319 3 (1983) 4 SCC 214 4 (1975) 2 SCC 847 eventually held thus

"A perusal of the above extracted terms and conditions of appointment shows that a development

officer is to be a whole time employee of the Life Insurance Corporation of India. that his

operations are to be restricted to a defined area and that he is liable to be transferred. He has no

authority whatsoever to bind the Corporation in anyway. His principal duty appears to be to

organise and develop the business of the Corporation in the area allotted to him and for that

purpose to recruit active and reliable agents, to train them to canvass new business and to render

post-sale services to policy-holders. He is expected to assist and inspire the agents. Even so he has

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

55

not the authority to appoint agents or to take disciplinary action against them. He does not even

supervise the work of the agents though he is required to train them and assist them. He is to be the

'friend, philosopher and guide' of the agents working within his jurisdiction and no more. He is

expected to stimulate and excite the agents to work, while exercising no administrative control over

them. The agents are not his subordinates. In fact, it is admitted that he has no subordinate staff

working under him. It is thus clear that the development officer cannot by any stretch of

imagination be said to be engaged in any administrative or managerial work. He is a workman

within the meaning of s.2(s) of the Industrial, Disputes Act."

(See also: Om Carrying Corporation Versus Tilock Narang & others reported in 2016(148) FLR 915;

T.Boby Francis Versus Lucy Varghese & others reported in 2016(149) FLR 866 & Jagdish Prasad

Sharma Versus Presiding Officer, Industrial Tribunal-cum-Labour Court-l, Gurugram & another

reported in 2023 (178) FLR 565), M/s S.K. International & another v. Ashok Tanaji Tambe & another

2024 (180) FLR 994).

Hon'ble Supreme Court by means of judgment dated 2.4.2004 passed in the case of M/s. Bharat Airtel Limited

Versus A.S. Raghavendra passed in Civil Appeal No.5187 of 2023 (2024 INSC 265) after taking into consider the

definition of 'workman' as given u/s 2 's' of the I.D. Act, 1947; and various judgments on the point in issue, held as

under:-

For the adjudication of the status of a workman, what is required to be seen is an emphasis on the actual work

performed by such an employee. In other words, if the nature of duties actually performed predominantly shows that

he discharges duties to do the work of any of the categories listed in Section 2(s). He is not covered by exceptions of

Section 2(s); it would be decisive of the matter that the employee is a workman, and the designation or salary of the

employee would be irrelevant.

It is now well settled that the adjudication of the issue as to person working within the meaning of Section 2(s) of the

I.D. Act has to be determined with reference to the principle of nature of his duties and functions. The dominant

purpose of employees must be taken into consideration, and the gloss of some additional duties must be rejected while

determining the status and character of a person.

Accordingly, in nutshell it can be said that from perusal of definition of 'workman' indicates that a person would come

within the purview of Section 2(s) of the ID. Act if he is employed in an industry and performs any manual, unskilled,

skilled, technical, operational, clerical or supervisory work.

Further, the definition also indicates exceptions as to when a person would not be covered in the aforementioned

definition. It inter alia states that a person would not be covered under the definition if (i) he is employed in a

managerial or administrative capacity or (ii) who, being employed in a supervisory capacity, draws wages exceeding

ten thousand rupees per mensem or exercises, either by the nature of the duties attached to the office or by reason of

the powers vested in him, functions mainly of a managerial nature.

From the documents which are filed by the workman in support of his case which are on record as document no.1/1 to

1/139, it is clear that he was appointed as casual worker, working on the post of peon.

Further the said fact has not been denied by the respondents by way or any cogent evidence, and the workman on the

basis of evidence filed by him on affidavit (Examination in Chief) as well as by way of cross examination clearly

established that he was engaged as casual/daily wagers on 06.04.2004.

Accordingly, after taking to consideration above said position of law as well as the pleading by the parties, and other

material on record it is clearly established that Shri Sanjay Kumar/claimant falls within the definition of workman as

given u/s 2S of the Act.

POINT No. (3)

Whether the workman has completed 240 days continuously in the last 12 calendar months in the preceding

year as casual/daily wager on 10.02.2010, prior to terminated/retrenched of his service without following the

provision of section 25F of the Industrial Disputes Act, or not?

In order to decide the point in question it is appropriate to have a glance of Section 2(oo), 2(s) and Section 25-F of

I.D. Act, 1947 which reads as under:-

"2. (00) "retrenchment" means the termination by the employer of the service of a workman for any reason

whatsoever, otherwise than as a punishment inflicted by way of disciplinary action, but does not include -

(a) voluntary retirement of the workman; or

(b) retirement of the workman on reaching the age of superannuation if the contract of employment

between the employer and the workman concerned contains a stipulation in that behalf; or

56

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

(bb) termination of the service of the workman as a result of the non-renewal of the contract of

employment between the employer and the workman concerned on its expiry or of such contract

being terminated under a stipulation in that behalf contained therein; or

(c) termination of the service of a workman on the ground of continued ill-health;

2(s) "workman" means any person (including an apprentice) employed in any industry to do any manual,

unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms

of employment be express or implied, and for the purposes of any proceeding under this Act in relation to an

industrial dispute, includes any such person who has been dismissed, discharged or retrenched in connection

with, or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to that

dispute, but does not include any such person--

(i) who is subject to the Air Force Act, 1950 (45 of 1950), or the Army Act, 1950 (46 of 1950), or

the Navy Act, 1957 (62 of 1957), or

(ii) who is employed in the police service or as an officer or other employee of a prison, or

(iii) who is employed mainly in a managerial or administrative capacity, or who, being employed in

a supervisory capacity, draws wages exceeding ten thousand rupees per mensem or exercises,

either by the nature of the duties attached to the office or by reason of the powers vested in him,

functions mainly of a managerial nature.

25F. Conditions precedent to retrenchment of workmen.-

No workman employed in any industry who has been in continuous service for not less than one year under

an employer shall be retrenched by that employer until-

(a) the workman has been given one month's notice in writing indicating the reasons for retrenchment and

the period of notice has expired, or the workman has been paid in lieu of such notice, wages for the period of

the notice,

(b) the workman has been paid, at the time of retrenchment, compensation which shall be equivalent to

fifteen days' average pay for every completed year of continuous service or any part thereof in excess of six

months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be

specified by the appropriate Government by notification in the Official Gazette."

ID.NO. 38/2009. Hon'ble Delhi High Court in the case of Sarita Tiwari Versus Aastha Garments reported in 2024

(180) FLR 649 after taking into consideration the definition of retrenchment read with provisions as provided under

Section 25-F of the Act, held as under:-

"20. It is well-settled that the burden to prove that the workman was in continuous employment of 240 days

with the management is on the workman herself. This principle was reiterated by the Hon'ble Supreme Court

in the landmark judgement of R.M. Yellatti v. Asstt.

Executive Engineer, (2006) 1 SCC 106; the relevant paragraph is extracted below:-

"17. Analysing the above decisions of this Court, it is clear that the provisions of the Evidence Act

in terms do not apply to the proceedings under Section 10 of the Industrial Disputes Act. However,

applying general principles and on reading the aforestated judgments, we find that this

By:MANISH KUMAR W.P.(C) 5369/2019 8 of 16 Court has repeatedly taken the view that the

burden of proof is on the claimant to show that he had worked for 240 days in a given year. This

burden is discharged only upon the workman stepping in the witness box. This burden is discharged

upon the workman adducing cogent evidence, both oral and documentary. In cases of termination

of services of daily-waged earners, there will be no letter of appointment or termination. There will

also be no receipt or proof of payment. Thus in most cases, the workman (the claimant) can only

call upon the employer to produce before the court the nominal muster roll for the given period, the

letter of appointment or termination, if any, the wage register, the attendance register, etc. Drawing

of adverse inference ultimately would depend thereafter on the facts of each case. The above

decisions however make it clear that mere affidavits or self-serving statements made by the

claimant workman will not suffice in the matter of discharge of the burden placed by law on the

workman to prove that he had worked for 240 days in a given year. The above judgments further lay

down that mere non-production of muster rolls per se without any plea of suppression by the

claimant workman will not be the ground for the Tribunal to draw an adverse inference against the

management. Lastly, the above judgments lay down the basic principle, namely, that the High Court

under Article 226 of the Constitution will not interfere with the concurrent findings of fact recorded

by the Labour Court unless they are perverse. This exercise will depend upon the facts of

each case."

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

57

21. These principles were reiterated by the Hon'ble Supreme Court in Krishna Bhagya Jala Nigam Ltd. v.

Mohd. Rafi, (2009) 11 SCC 522, and the law on this subject was traced as under in paragraphs 8 to 10:

"8. In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan [(2004) 8 SCC 161] the

position was again reiterated in para 6 as follows: (SCC p. 163)

'6. It was the case of the workman that he had worked for more than 240 days in the year

concerned. This claim was denied by the appellant. It was for the claimant to lead evidence to show

that he had in fact worked up to 240 days in the year preceding his termination. He has filed an

affidavit. It is only his own statement which is in his favour and that cannot be regarded as

sufficient evidence for any court or tribunal to come to the conclusion that in fact the claimant had

worked for 240 days in a year. These aspects were highlighted in Range Forest Officer v.S.T.

Hadimani [(2002) 3 SCC 25]. No proof of receipt of salary or wages for 240 days or order or

record in that regard was produced. Mere non-production of the muster roll for a particular period

was not sufficient for the Labour Court to hold that the workman had worked for 240 days as

claimed.'

9. In Municipal Corpn., Faridabad v. Siri Niwas ((2004) 8 SCC 195] it was held that the burden

was on the workman to show that he was working for more than 240 days in the preceding one year

prior to his alleged retrenchment. In M.P. Electricity Board v. Hariram [(2004) 8 SCC 246] the

position By:MANISH KUMAR W.P.(C) 5369/2019 10 of 16 was again reiterated in para 11 as

follows: (SCC p. 250)

'11. The above burden having not been discharged and the Labour Court having held so, in our

opinion, the Industrial Court and the High Court erred in basing an order of reinstatement solely

on an adverse inference drawn erroneously. At this stage it may be useful to refer to a judgment of

this Court in Municipal Corpn., Faridabad v. Siri Niwas [(2004) 8 SCC 195] wherein this Court

disagreed with the High Court's view of drawing an adverse inference in regard to the non-

production of certain relevant documents.

This is what this Court had to say in that regard: (SCC p. 198, para 15)

"15. A court of law even in a case where provisions of the Evidence Act apply, may presume or may

not presume that if a party despite possession of the best evidence had not produced the same, it

would have gone against his contentions. The matter, however, would be different where despite

direction by a court the evidence is withheld. Presumption as to adverse inference for non-

production of evidence is always optional and one of the factors which is required to be taken into

consideration is the background of facts involved in the lis. The presumption, thus, is not obligatory

because notwithstanding the intentional non- production, other circumstances may exist upon which

such intentional non-production may be found to be justifiable on some reasonable grounds. In the

instant case, the Industrial Tribunal did not draw any adverse inference against the appellant. It

was within its jurisdiction to do so particularly having regard to the nature of the evidence adduced

by the respondent."

10. In RBI v. S. Mani [(2005) 5 SCC 100] a three- Judge Bench of this Court again considered the

matter and held that the initial burden of proof was on the workman to show that he had completed

240 days of service. The Tribunal's view that the burden was on the employer was held to be

erroneous. [...]"

22. In light of the law laid down by the Hon'ble Supreme Court, the initial question to be examined is

whether the petitioner discharged her burden of proving that she was in continuous employment for at least

240 days in the year preceding her date of termination."

Reverting to the facts of the present case the workman/Shri Sanjay Kumar, has filed evidence in support of his case as

document no.1/14 to 1/166.

Further in his evidence filed on affidavit (Examination in Chief) he has established that he was engaged in the bank

the capacity of casual worker, discharged his duties up till 15.02.2010, when his services was orally

terminated/retrenched by the opposite party no.2 as per the verbal orders passed by the opposite party no.1.

Moreover during the cross examination from the side of respondent, the questions is put on him, relevant are quoted

herein below:-

प्रश्न :- आऩको कव बैंक के रखा गया था।

उत्तर :- सन् 2004.

प्रश्नः- ककस ददन व मदहने के रखा था।

उत्तर:- 04.06.2004 में रखा गया था l

58

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

प्रश्नः- साीं 2004 में आऩकी सेक्षऺत योग्ता क्या थी

उत्तर:- मैं कऺा 8th ऩास था

प्रश्नः- सजतने ददन आऩ काम कर रहे थे आऩको वाउचर के थ्रू ऩेमेंट ददया गया था

उत्तर:- हा यह कहना सह है

Moreover in spite of the repeated opportunity given to the respondent neither they are not filed any evidence on

affidavit in support of his case(examination in chief), so this Tribunal by order dated 25.11.2020 has closed the right

of the management to file its evidence, and evidence was closed.

However, respondent have not filed any document in order to revert the evidence/material file by the workman in

respect to continuous on working by him for 240 days continuously as casual/daily worker in the last proceeding 12

calendar months, i.e. attendant register, wages register etc, that workman has not work continuously 240 days in last

12 months in the preceding calendar year prior to retrenchment/termination service, taking into consideration above

said fact and the law down by The Hon'ble Apex Court in the case of Nayan Bhagwantroo Gosavi Balajiwale Vs.

Gopal Vinayak Gosavi & Ors, AIR 1960 SC 100 held that admission is best piece of evidence that opposite party

can rely upon if the same is not denied by the person who is made the same.

And, by the Hon'ble Apex Court in the case of Dharmarathmakara Raibahadur Arcot Ramashwamy Mudaliar

Educational Institution Vs. Education Appellate Tribunal & Anr. (199) 7 SCC 332, held that if the facts are

admitted by a party and same is not denied in any manner then same is binding on it and on the basis of averments if

an order is passed there is no violation of principle of natural justice.

Thus the workman/Shri Sanjay kumar, has prove that he has continuously work 240 days in last 12 months preceding

calendar year, prior to termination/retrenchment of his services.

Point No. (4)

If the workman/Shri Sanjay Kumar has completed 240 days continuously in the last 12 calendar month prior

the date of his termination/retrenchment, on 10.02.2010, without the following provision with section 25F of the

Act, his services was retrenched then for what relief he is entitled?

In order to decide the point in question, the answer filed place in the given by The Hon'ble Madhya Pradesh High

Court in the case of Branch Manager, Central Bank of India Tilak Chowk Vidisha Versus Pradeep Kumar Sen

reported in 2024 (181) FLR 809 held as under:-

"22. The Supreme Court in the case of Bharat Sanchar Nigam Limited Vs. Bhurumal, reported in (2014) 7

SCC 177 has held as under:-

"33. It is clear from the reading of the aforesaid judgments that the ordinary principle of grant of

reinstatement with full back wages, when the termination is found to be illegal is not applied

mechanically in all cases. While that may be a position where services of a regular/permanent

workman are terminated illegally and/or mala fide and/or by way of victimisation, unfair labour

practice, etc. However, when it comes to the case of termination of a daily-wage worker and where

the termination is found illegal because of a procedural defect, namely, in violation of Section 25-F

of the Industrial Disputes Act, this Court is consistent in taking the view that in such cases

reinstatement with back wages is not automatic and instead the workman should be given monetary

compensation which will meet the ends of justice. Rationale for shifting in this direction is obvious."

23. The Supreme Court in the case of Jayant Vasantrao Hiwarkar Vs. Anoop Ganpatrao Bobde and others

reported in (2017)11 SCC 244 has upheld the grant of compensation in lieu of reinstatement as the

respondent had merely worked for a period of one year.

24. The Supreme Court in the case of Hari Nandan Prasad and another Vs. Employer I/R to Management of

Food Corporation of India and another, reported in (2014) 7 SCC 190 has held as under-

"19. The following passages from the said judgment would reflect the earlier decisions of this Court

on the question of reinstatement: (BSNL case, SCC pp. 187-88, paras 29-30)

"29. The learned counsel for the appellant referred to two judgments wherein this Court granted

compensation instead of reinstatement. In BSNL v. Man Singh, this Court has held that when the

termination is set aside because of violation of Section 25-F of the Industrial Disputes Act, it is not

necessary that relief of reinstatement be also given as a matter of right. In Incharge Officer v.

Shankar Shetty, it was held that those cases where the workman had worked on daily-wage basis,

and worked merely for a period of 240 days or 2 to 3 years and where the termination had taken

place many years ago, the recent trend was to grant compensation in lieu of reinstatement.

30. In this judgment of Shankar Shetty, this trend was reiterated by referring to various judgments,

as is clear from the following discussion: (SCC pp. 127-28, paras 2-4)

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

59

'2. Should an order of reinstatement automatically follow in a case where the engagement of a

daily-wager has been brought to an end in violation of Section 25-F of the Industrial Disputes Act,

1947 (for short "the ID Act")? The course of the decisions of this Court in recent years has been

uniform on the above question.

3. In Jagbir Singh v. Haryana State Agriculture Mktg. Board, delivering the judgment of this Court,

one of us (R.M. Lodha, J.) noticed some of the recent decisions of this Court, namely, U.P. State

Brassware Corpn. Ltd. v. Uday Narain Pandey, Uttaranchal Forest Development Corpn. v. M.C.

Joshi, State of M.P. v. Lalit Kumar Verma, M.P. Admn. v. Tribhuban, Sita Ram v. Moti Lal Nehru

Farmers Training Institute, Jaipur Development Authority v. Ramsahai, GDA v. Ashok Kumar and

Mahboob Deepak v. Nagar Panchayat, Gajraula and stated as follows: (Jagbir Singh case, SCC

pp.330 & 335, paras 7 & 14)

"7. It is true that the earlier view of this Court articulated in many decisions reflected the legal

position that if the termination of an employee was found to be illegal, the relief of reinstatement

with full back wages would ordinarily follow. However, in recent past, there has been a shift in the

legal position and in a long line of cases, this Court has consistently taken the view that relief by

way of reinstatement with back wages is not automatic and may be wholly inappropriate in a given

fact situation even though the termination of an employee is in contravention of the prescribed

procedure. Compensation instead of reinstatement has been held to meet the ends of justice.

14. It would be, thus, seen that by a catena of decisions in recent time, this Court has clearly laid

down that an order of retrenchment passed in violation of Section 25-F although may be set aside

but an award of reinstatement should not, however, be automatically passed. The award of

reinstatement with full back wages in a case where the workman has completed 240 days of work in

a year preceding the date of termination, particularly, daily-wagers has not been found to be proper

by this Court and instead compensation has been awarded. This Court has distinguished between a

daily-wager who does not hold a post and a permanent employee."

4. Jagbir Singh has been applied very recently in Telegraph Deptt. v. Santosh Kumar Seal, wherein

this Court stated: (SCC p. 777, para 11)

11. In view of the aforesaid legal position and the fact that the workmen were engaged as daily-

wagers about 25 years back and they worked hardly for 2 or 3 years, relief of reinstatement and

back wages to them cannot be said to be justified and instead monetary compensation would

subserve the ends of justice"

21. We make it clear that reference to Umadevi, in the aforesaid discussion is in a situation where

the dispute referred pertained to termination alone. Going by the principles carved out above, had

it been a case where the issue is limited only to the validity of termination, Appellant

1 would not be entitled to reinstatement……….”

25. The Supreme Court in the case of O.P.Bhandari Vs. Indian Tourism Development Corporation Limited

and others reported in (1986) 4 SCC 337 has held as under :-

"6. Time is now ripe to turn to the next question as to whether it is obligatory to direct reinstatement

when the concerned regulation is found to be void. In the sphere of employer-employee relations in

public sector undertakings, to which Article 12 of the Constitution of India is attracted, it cannot be

posited that reinstatement must invariably follow as a consequence of holding that an order of

termination of service of an employee is void. No doubt in regard to "blue collar" workmen and

"white collar employees other than those belonging to the managerial or similar high level cadre,

reinstatement would be a rule, and compensation in lieu thereof a rare exception. Insofar as the

high level managerial cadre is concerned, the matter deserves to be viewed from an altogether

different perspective a larger perspective which must take into account the demands of National

Interest and the resultant compulsion to ensure the success of the public sector in its competitive co-

existence with the private sector. The public sector can never fulfil its life aim or successfully vie

with the private sector if it is not managed by capable and efficient personnel with unimpeachable

integrity and the requisite vision, who enjoy the fullest confidence of the "policy-makers" of such

undertakings. Then and then only can the public sector undertaking achieve the goals of (1)

maximum production for the benefit of the community, (2) social justice for workers, consumers and

the people, and (3) reasonable return on the public funds invested in the undertaking.

7. It is in public interest that such undertakings or their Boards of Directors are not compelled and

obliged to entrust their managements to personnel in whom, on reasonable grounds, they have no

trust or faith and with whom they are in a bona fide manner unable to function harmoniously as a

team working arm-in-arm with success in the aforesaid three-dimensional sense as their common

60

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

goal. These factors have to be taken into account by the court at the time of passing the

consequential order, for the court has full discretion in the matter of granting relief, and the court

can sculpture the relief to suit the needs of the matter at hand. The court, if satisfied that ends of

justice so demand, can certainly direct that the employer shall have the option not to reinstate

provided the employer pays reasonable compensation as indicated by the court."

A division Bench of Hon'ble Gujarat High Court in the case of Range Forest Officer Versus Virjibhai

Ranchhodbhai & another reported in 2024 (182) FLR 179 has held as under:-

6.3. In Uttaranchal Forest Development Corporation Vs. M.C.Joshi [(2007) 9 SCC 353], the Supreme Court

held that the question of grant of compensation in place of relief of reinstatement could be guided by

relevant factors to be that whether the appointment was made in accordance with the statutory Rules or not.

6.4. It is to be observed that the decisions of the Supreme Court have carved out the circumstances and

aspects which may guide the discretion of the court in awarding lump-sum compensation instead of granting

relief of reinstatement even if there is a breach of Section 25F, 25G and 25H of the Industrial Disputes Act

6.5. These factors were highlighted in Bantva Municipality Vs. Amritlal Harji Chauhan being Special Civil

Application No. 9135 of 2013 decided on 31.3.2014 as under-

"(1) The fact that the workman is daily-rated workmen, not permanently employed; (ii) He is not

holding a permanent post, (iii) Nature of his employment; (iv) Span of service, viz. The period

during which he worked upto the date of termination of services; (v) Manner and method of

appointment. Whether it was a backdoor entry; (vi) The time gap from the date of termination; (vii)

Delay in raising the Reference is also considered to be a germane factor, (viii) Any special feature

peculiar to the facts of the particular case.

For instance, in Bhurumal (supra), the Supreme Court noticed that post which the workman held was of

Lineman in the Telephone Department, and that the work of Lineman was drastically reduced in view of

advancement of the technology."

6.6. In the case of BSNL v. Bhurumal, reported in (2014) 7 SCC 177, it was categorically observed that even

after reinstatement, it is always open to the management to terminate the services of that employee by paying

him the retrenchment compensation. Even as a daily-wage worker, no useful purpose is going to be served in

reinstating such a workman and he can be given monetary compensation by the Court itself."

And, the Hon'ble Apex Court in the matter of Gopal Krishnaj Ketkar vs. Mohamed Haji Latif and others, AIR

1968 SC 1413 has held that, if a party in possession of best evidence, which would throw a light on the issue in

controversy withheld the same, Court ought to draw an adverse inference against the party notwithstanding that onus

of proof does not lie on him. The party who is in possession of best evidence cannot rely on abstract doctrine of onus

of proof or on the fact that he was not called upon to produce it.

The Hon'ble Madhya Pradesh High Court in the case of Chairman, Institute of Engineers, Jabalpur Versus

Kailash Sen reported in 2024(181) FLR 300, it has been held that it is not in dispute that workman was in

employment with respondent since the date of engagement and prior to retrenchment of his services he has

continuously worked for 240 days in the last preceding 12 months. The said plea taken by the workman has to be

categorically denied and disprove by the respondent who has sufficient documentary evidence to demonstrate that

employee has not worked for more than 240 days in a calander year by producing attendance and payment register. If

same is not done, it will be presumed that the respondent has failed to dislodge the claim of the workman that he has

worked for more than 240 days in last preceding 12 months.

A Division Bench of Hon'ble Telangana High Court in the case of S. Srinivas Versus The Union of India & others

reported in 2024 LLR 860, it has been held that it is trite law that a party invoking/relying on certain plea has to

make an averment with details to sustain such a plea and has to adduce material to establish allegations made and the

burden is on the party to lead and prove that it is right. (see State of Uttar Pradesh v. Kartar Singh, AIR 1964 SC

1135).

Hon'ble the Apex Court in the case of Pradeep v. Manganese Ore (India) Limited & ors. 2022 (3) SCC 683 has

held that as per section 106 of Indian Evidence Act, the burden lies on a party to prove and establish the plea taken by

it.

A Division Bench of Allahabad High Court in a case of Ghanshyam Prajapati Versus Union of India reported in 2024

(1) FLR 131, after taking into consideration has held that if a workman has completed 240 days in the last preceding

year is then he is entitled for the benefit of Section 25-F of the Act.

Taking to consideration the position of law on point in issue as well as the fact that the workman has established that

he worked more than 240 days in 12 months in preceding on calendar year prior to date of his retrenchment/

termination on 15.02.2010.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

61

Accordingly, workman/Shri Sanjay Kumar is entitled for retrenchment compensation but not for reinstatement in

service.

AWARD

For the forgoing reasons I.D case filed by workman/Shri Sanjay Kumar, u/s 2A of the Industrial Disputed Act 1947, is

partly allowed and workman is entitled for retrenchment compensation as his service was retrenched on 15.02.2010,

with complying the provision of Section 25F of the Act amounting to Rs. 3,00,000/-(Three Lakhs only).

However, he is not entitled of reinstatement in service.

Lucknow.

Date: 23.12.2025

Justice ANIL KUMAR, Presiding Officer

नई ददल्ली, 15 जनवरी, 2026

का.आ. 25.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj

ds izca/kr=] lac) fu;kstdkas vkSj muds deZdkjksa ds chp vuqca/k esa fufnZ’V औद्योजगक fookn esa

dsUnzh; ljdkj औद्योजगक vf/kdj.k@Je U;k;ky;

ds iapkV (a01/2019) izdkf”kr djrh gSA

[सं. एल-12025/01/2026-आई.आर.(बी-I)-17]

सलोनी, उप जनदेिक

New Delhi, the 15th January, 2026

S.O. 25.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref. 01/2019) of the Cent.Govt.Indus.Tribunal-cum-Labour Court

Bangalore as shown in the Annexure, in the industrial dispute between the management of Karnataka

Grameena Bank and their workmen.

[No. L-12025/01/2026- IR(B-I)-17]

SALONI, Dy. Director

ANNEXURE

BEFORE THE

CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT

DATED :

06th January 2026

PRESENT : Smt. K P INDIRA

Presiding Officer

Comp No. 01 / 2019

Appellant

Opposite Party

Sh. M S Mallikarjun,

S/o M C Shankarappa,

Inside Chavadi, Muttugerahalli,

B G Kere, Molakalmuru,

Chitradurga 577 529,

The Chairman / General Manager,

Karnataka Grameena Bank,

Head Office,

Gandhinara, Bellary

Appearance

Complainant

:

M Rama Rao

Authorized Representative

Opposite Party : T P Muthanna

62

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Advocate

ORDER

1.

This is a complaint filed by the complainant u/s 33A of the Industrial Disputes Act 1947 raising the

following contentions:-

The complainant was appointed by the opposite party in the post of MCS / Office Assistant

(Multipurpose) / Substaff at their B G Kere branch on 01.06.2009. He submitted application and documents and

attended interview for selection. Since then he worked continuously in the said branch till the date of his

termination / retrenchment / discharge / dismissal of his service on 20.06.2014. As a part of his job, he used to

open the branch by collecting keys from the Manager, cleaning the office, aiding the customers and the branch in

various ways. In order to avoid the extension of status and benefits of permanent workman to him, the Opposite

Party directed the B G Kere branch to debit his wages as coolie charges to the General ledger account without

obtaining his signature on the debit vouchers. The officials of the branch took his signature on the overleaf of

coolie paid debit vouchers along with the signatures of the branch officers while paying wages in cash to him. He

was the only person doing the work of the office attendant / messenger / sweeper / substaff / daily wager / MCS

etc on coolie charges. The Opposite Party was not marking attendance register for his work, not extended

payment register to him, signing debit vouchers for his wages by the officers of the bank and receiving amount

by them and then paying the amounts to him as wages, debiting the wages paid to him to General Charges

Account instead of salary paid account / Establishment charges, not issuing appointment orders or certificates for

the services rendered by him in the bank, refusal to pay wages applicable to messengers / housekeeping staff /

sub staff / MCS to him, not extending the service benefits applicable to permanent workman, taking work from

him for years together as Coolie by terming his wages as coolie charges practiced by the opposite party are all

unfair labour practices under the 5th Schedule of the ID Act 1947. The complainant along with other coolie

workers of the opposite party bank formed a union called Pragathi Grameena Bank Daily Wage Workers Union

in 2012 and he was active in the Union activities. The Union filed cases before the Central Labour Machinery for

getting the benefits for the daily wage workers of the Bank. This has caused annoyance to the then management

against him. CR 22/2013 is pending before this Tribunal in which the Union raised a dispute for regularization of

services of the workmen including him. He is directly connected with the said dispute raised by the said union.

On 20.06.2014, the Branch Manager Mr. Chinappa became hostile to him for having brought tea already kept

made from the nearby tea shop instead of fresh tea. The Branch Manager asked him not to come for work

anymore in a fit of anger. Despite his repeated request, the Manager did not change his stand. Thus he was

terminated abruptly for the above flimsy reason and without issuing any notice to him or paying any

retrenchment compensation. The opposite party has not filed any application before the appropriate Government

seeking permission to retrench him u/s 25 N of the ID Act 1947. Therefore, the retrenchment of his service is

illegal, ab-initio void and he is deemed to be in the services of the Bank as per sec 25 N(7) of the ID Act. As per

the provision of Sec 33 of the ID Act, the opposite party cannot alter or change the conditions of his service

applicable to him immediately before the commencement of the proceedings of C R 22/2013 to his prejudice ,

during the pendency of CR 22/2013 before this Tribunal without the expressed permission in writing from the

tribunal and also shall not discharge / dismiss / terminate / retrench him unless he was paid wages for one month

and without making an application for approval of the action so taken. The opposite party has not observed any

of the provisions of the ID Act 1947 and has not filed any application before the Tribunal. The action of the

opposite party is against the provisions of the ID Act, principles of natural justice, illegal, null and void. The

opposite party was paying him wages @ Rs. 3600/- per month. The opposite party has not paid any wages to him

since the retrenchment of his services. Since the opposite party has not filed any application before the Tribunal

seeking approval of their action, he is entitled for payment of full wages drawn by him every month till the

disposal of this case. Since the opposite party has not filed any application before the appropriate government for

the termination of his services, not issued any copy of such application to him nor any notice / notice pay /

compensation as required u/s 25 N of the ID Act, he is deemed to be in service for the benefits as applicable to

him prior to such cessation of his service and is entitled for wages as per sec 25N (7) of the ID Act. Due to the

illegal cessation of service imposed on him by the opposite party, the complainant and his family are suffering

economically and socially. Hence this complaint for declaring the termination / retrenchment / discharge /

dismissal of the complainant from 20.06.2014 is not in accordance with the provisions of the ID Act 1947,

against the principles of natural justice, arbitrary, unilateral, ill motivated and illegal and to direct the opposite

party to reinstate the complainant with full back wages, continuity of service with regularization, ancillary

benefits from 20.06.2014 and with cost.

2.

The opposite party at the outset has contended that the complainant has no enforceable cause of action to

raise Industrial Dispute and has no right to seek employment in the bank and there is no discharge or termination

of employment and hence no Industrial Dispute lie under Industrial Disputes Act 1947. It is equally contended

that there is no post of messenger cum sweeper in the bank. The opposite party inter alia contended that based on

the man power requirement assessed by the bank as per the guidelines issued by the Government of India at the

end of March every year, the total vacancies to be filled up by the direct recruitment and promotions will be

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

63

identified and the process of direct recruitment and promotions will be initiated after obtaining permissions from

the Sponsor Bank viz., Canara Bank and the Board of the opposite party bank. Recruitment and appointment of

employees in the Regional Rural Banks is governed by the rules framed by the Government of India vide

notification dated 13.07.2010 called ―Regional Rural Banks (Appointment and Promotions of Officers and

Employees) Rules 2010‖. As per the said rules, procedure with regard to Office Attendant (Multipurpose Group

C employees) are prescribed, the selection process being on the basis of interview to be conducted by a

Committee. The branches / offices of the bank engage coolies occasionally and intermittently as and when

necessitated for doing menial works in the branches. In order to meet the exigencies of the work, the opposite

party bank branches used to engage coolies only for few hours for such menial works like cleaning, sweeping

and watering and were paid coolie charges proportionately depending upon the number of hours they worked.

The complainant was also engaged similarly as a coolie intermittently and not continuously. Depending upon the

availability of the person in the locale, the Branch Manager engaged such person on need basis for such works.

As per the Government of India guidelines for appointment of Regular Attendants, the names should be

sponsored by the employment exchange / Sainik Board and such engagement is also subject to the conditions

stipulated in regard to educational qualification, age etc. While engaging the coolies, no educational

qualifications or age were looked into and whoever is available locally would be engaged to carry out such

emergent / menial casual work. The complainant might have been engaged by the Branch Manager for such

casual works but not continuously. Such casual engagements will not give any enforceable course of action for

the relief sought for and no locus standi to file this Complaint. They are not governed by any rules and regulation

of the bank and there is no employee employer relationship as they have not been engaged by the bank against

the post. It is the settled position in law that a person engaged intermittently on daily wages will not have the

right to be absorbed for any post. The Hon'ble Supreme Court of India in State of Karnataka vs. Uma Devi

have laid down the law relating to regularization / permanency claims of casual employees. The opposite party

bank is constituted under the RRB Act, the recruitment and appointment in the Bank is governed by the rules

framed u/s 29 of the said Act. The complainant has not undergone any process for recruitment / appointment as

per the said rules. The contention of the complainant that he was appointed by the opposite party at their B G

Kere branch on 01.06.2009 by taking application form etc. is denied. The Branch Manager has no power to

recruit / appoint any employee. The complainant was engaged only occasionally to attend to menial / urgent

works and not continuously. Since the complainant was not recruited / appointed by the opposite party anytime,

his termination / dismissal / retrenchment on 20.06.2014 did not arise. Consequently, question of issuing notice

to him, payment of retrenchment compensation, payment of wages of one month, filing of application before the

Tribunal before or during the pendency of CR 22/2013 and seeking permission u/s 25N of the Act does not arise.

Under the circumstances, sec 33 of the Industrial Disputes Act has no application in his case. He was never

engaged on a continuous basis nor for attending the regular functions of substaff. He was paid wages for the

occasional / casual works he was engaged to. He was not governed by any service conditions in the opposite

party banks and hence no question of altering or changing the conditions of service arises. Sec 33 of the ID Act,

in the circumstances has no relevance in his case. The complainant has not been appointed in the payrolls of the

opposite party at any time. Since he has not been appointed in the opposite party bank, question of marking in

the attendance register, extending payment registered to him, debiting the payment made to him to salary

account, issuing appointment orders, issuing certificates and denying benefits etc. did not arise. Hence the

allegation of unfair labour practice on the part of the II Party is untenable. The contention of the complainant that

his involvement in the union activities and filing of Industrial Dispute by the said union for getting benefits to

the daily wage workers has caused anger to the opposite party is a figment of his imagination and hence denied.

The complainant was not working in the opposite party bank on continuous basis and was engaged occasionally ,

casually for menial and urgent requirements. His contention that he was being paid wages @ Rs. 3600/- is

denied. The incident narrated in para 9 of the complaint regarding alleged fetching of rotten tea is far from truth

and is only self-serving statement. His contentions that he was deemed to be in service and entitled for benefits

are untenable and baseless. The complainant has not undergone any process of recruitment and is not entitled for

recruitment for appointment in the opposite party bank or for reinstatement or other ancillary benefits as claimed

by him. For all these reasons, the opposite party has prayed for rejection of the complaint.

3.

From the above rival pleadings, following points arise for consideration:-

1. Whether the complaint is legally and factually maintainable?

2. Whether the Complainant is proved to have been working continuously in the opposite party

establishment since 01.06.2009?

3. Whether the complainant is proved to have been discharged / terminated / retrenched / dismissed

from service as contended by him?

4. Whether the alleged contravention of the provision of sec 33 of the ID Act is proved by the

complainant?

5. Whether the complainant is entitled to get reinstatement to the service with full back wages,

64

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

continuity of service and ancillary benefits from 20.06.2014 as prayed for?

6. What is the proper Order and Award to be passed in this complaint case?

4.

Either of the parties did not prefer to adduce any evidence in the matter.

5.

Heard the oral and written arguments submitted from both sides.

6.

Points no. 1 to 4:- Since all these points are closely integrated and inter-twined, all these points are

discussed together. Alleging contravention of the provisions of sec 33 of the ID Act 1947, the complainant filed

the instant complaint u/s 33A of the Act on the factual averment that the opposite party has not filed any

application before this Tribunal seeking permission for retrenching / terminating / dismissing him on 20.06.2014

and not filing any application for approval of their said action. The complainant‘s case is that he was appointed

by the opposite party bank at their B G Kere branch on 01.06.2009 on submission of application and subjecting

him for interview and on obtaining documents from him. He claims that since then he has worked continuously

in the said branch on all working days. It is his further case that to his surprise, for just a flimsy reason that he

could not adhere to the mandate of the then Manager of the B G Kere branch to fetch fresh tea from the nearby

tea shop as the shop vendor gave him only a cup of tea already available there, he was kicked out from his job.

Without giving any prior notice and bereft of any valid reason, he was asked on 20.06.2014 not to come for work

and his services are terminated. The complainant inter alia pleaded that he is an active member in a Union under

the name and style Pragathi Grameena Bank Daily Wage Workers Union formed between himself with other

coolie workers of the opposite party bank. The said union has raised a dispute for regularization of the service of

the complainant and other similarly placed coolie before the Central Government Machinery and the same is

registered and pending before this Tribunal as CR 22/2013. It is the case of the complainant that he is directly

connected with the said dispute raised by the Union pending before this Tribunal. The disengagement of job on

20.06.2014 according to the complainant tantamounts to contravention of the provisions of sec 33 of the ID Act

as according to him it happened when the industrial dispute raised by the union for and on behalf of him and the

other coolie workers was pending adjudication. This gave way for filing this complaint u/s 33A of the ID Act.

7.

Oral and written arguments are advanced on behalf of the complainant narrating all these events by his

authorized representative.

8.

The learned counsel for the opposite party per contra put forth his rival submission that the complainant has

never ever rendered any continuous service in the opposite party bank. Instead the bank was in the practice of

engaging persons from the locale for attending menial job like sweeping, cleaning and watering when the regular

employees are absent or proceed on leave and such persons were paid coolie charges for the same. According to

the opposite party, the complainant was also so casually engaged depending on the requirement of the branch as

a coolie for doing menial works and such works carried out by him was not regular in nature, but only on need

basis. To put it differently, according to the opposite party the engagement of the complainant was not

continuous and it was only intermittent.

9.

Of course, the event of non-engagement for work said to have happened on 20.06.2014 is apparently during

the pendency of CR 22/2013. However the complainant did not prefer to bring home any proof that he was in

service in the opposite party bank even on the previous day or anytime there-before in a constant and continuous

stretch so as to establish the retrenchment / dismissal / discharge / termination alleged in the complaint. Here it is

contextually profitable to quote Sec 33 of the Act:

33. [ Conditions of service, etc., to remain unchanged under certain circumstances during pendency of

proceedings. ]

(1)During the pendency of any conciliation proceeding before a conciliation officer or a Board or of any

proceeding before ][an arbitrator or] [a Labour Court or Tribunal or National Tribunal in respect of an

industrial dispute, no employer shall- (a)in regard to any matter connected with the dispute, alter, to the

prejudice of the workmen concerned in such dispute, the conditions of service applicable to them immediately

before the commencement of such proceeding; or (b)for any misconduct connected with the dispute, discharge

or punish, whether by dismissal or otherwise, any workmen concerned in such dispute, ave with the express

permission in writing of the authority before which the proceeding is pending.(2)During the pendency of any

such proceeding in respect of an industrial dispute, the employer may, in accordance with the standing orders

applicable to a workman concerned in such dispute ] [or, where there are no such standing orders, in

accordance with the terms of the contract, whether express or implied, between him and the workman] (a)[

alter, in regard to any matter not connected with the dispute, the conditions of service applicable to that

workman immediately before the commencement of such proceeding; or (b) for any misconduct not connected

with the dispute, discharge or punish, whether by dismissal or otherwise, that workman: Provided that no such

workman shall be discharged or dismissed, unless he has been paid wages for one month and an application

has been made by the employer to the authority before which the proceeding is pending for approval of the

action taken by the employer. (3)Notwithstanding anything contained in sub-section (2), no employer shall,

during the pendency of any such proceeding in respect of an industrial dispute, take any action against any

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

65

protected workman concerned in such dispute (a) by altering, to the prejudice of such protected workman, the

conditions of service applicable to him immediately before the commencement of such proceedings; or (b) by

discharging or punishing, whether by dismissal or otherwise, such protected workman, save with the express

permission in writing of the authority before which the proceeding is pending. Explanation:-For the purposes

of this sub-section, a "protected workman ", in relation to an establishment, means a workman who, being] [a

member of the executive or other office bearer] [of a registered trade union connected with the establishment,

is recognised as such in accordance with rules made in this behalf.(4)In every establishment, the number of

workmen to be recognised as protected workmen for the purposes of sub-section (3) shall be one per cent. of

the total number of workmen employed therein subject to a minimum number of five protected workmen and a

maximum number of one hundred protected workmen and for the aforesaid purpose, the appropriate

Government may make rules providing for the distribution of such protected workmen among various trade

unions, if any, connected with the establishment and the manner in which the workmen may be chosen and

recognised as protected workmen.(5)Where an employer makes an application to a conciliation officer, Board,

] [an arbitrator, a] [Labour Court, Tribunal or National Tribunal under the proviso to sub-section (2) for

approval of the action taken by him, the authority concerned shall, without delay, hear such application and

pass, ] [within a period of three months from the date of receipt of such application] [ Substituted by Act 46 of

1982, Section 17, for " as expeditiously as possible" (w.e.f. 21.8.1984).][, such order in relation thereto as it

deems fit:]. ][Provided that where any such authority considers it necessary or expedient so to do, it may, for

reasons to be recorded in writing, extend such period by such further period as it may think fit: Provided

further that no proceedings before any such authority shall lapse merely on the ground that any period

specified in this sub-section had expired without such proceedings being completed.]

10. Of course by enacting sec 33, the legislature wanted to ensure a fair and satisfactory enquiry of the

industrial dispute undisturbed by any action on the part of the employer or the employee likely to create fresh

cause for disharmony between them. The legislature visualized that during the pendency of the industrial dispute

status quo should be maintained and no further element of discord should be introduced between the employer

and the employee. The objective of the provision of sec 33 is to put a ban on the prerogative of the employer in

altering the service condition of the employee pending enquiry of the industrial dispute raised by them. The

primary principle is that if an Industrial Dispute is raised by a group of workmen acting on their own through

their union, the general conclusion is that the all those who sponsored the dispute are concerned in it. However

the very factum of raising an Industrial Dispute and pendency of such a dispute in a court of law by an individual

employee or a group of employees by itself does not lead to the inference that such an individual who alleges

retrenchment from services was a workman in continuous service under the employer, unless proved by concrete

evidence. Indeed, Sec 33A stands to the rescue of a workman who alleges alteration or cessation of service by

the employer during the pendency of an Industrial Dispute. A regular workman / employee or a casual employee

on a continuing basis under an employer who files a complaint u/s 33A certainly stands on a different footing

than the one who claims continuity of service as a casual labourer and whose claim is not accepted by the

employer.

11. The case on hand portrays the scenario the employer disowns and denies the complainant as its regular

daily wager. The alleged retrenchment of service dated 20.06.2014 averred by the complainant is not accepted or

recognized by the Oppose Party in the given case. The definite stand of the opposite party is that the complainant

had been engaged very occasionally and intermittently on need basis to attend menial works like sweeping,

cleaning etc. without touching the routine works in the office. The complainant per contra very particularly

pleaded that apart from cleaning in and around the bank office, he was entrusted with the task of assisting

customers in making challans for cash / cheque, deposits taking and keeping cash in double lock, writing

registers, collecting cash from other banks from the cheques drawn on them, printing passbooks, deposit receipts,

writing loan papers, making deposit mobilization, bundling payment slips and day book and such so many tasks.

However according to the opposite party all the above works are the routine tasks of the regular employees and

not of such casual workers engaged for attending menial jobs. Thus the factual pleadings of the complainant

indicate that his engagement in the opposite party bank was not to attend menial labour alone but higher tasks as

well, as mentioned above. It is while attending such highly responsible tasks in his so called status as MCS /

Office assistant (multipurpose) / sub-staff at the B G Kere branch of the opposite party continuously since

01.06.2009 that the opposite party has terminated / retrenched his services on 20.06.2014. This factum also the

opposite party has emphatically opposed and disputed. According to the opposite party, no such retrenchment or

termination has ever occurred nor was there any occasion for that as the bank had not engaged the complainant

in such a position at all in work continuously. In this factual background it is the primary duty of the complainant

to substantiate that his very entry in the bank was on 01.06.2009 and he continued to perform services in the

opposite party bank without any break till 20.06.2014. The complainant is equally obliged to prove that he was

disengaged from a continuous service on 20.06.2014. Inability to offer menial job on a particular date when there

was no requirement to engage a casual labourer to attend such work pleaded by the opposite party does oblige

the complainant to substantiate his specific case by adducing reliable and concrete material evidence establishing

all the aspects pleaded by him in the complaint. The mere pleading raised by him regarding the prevalence /

66

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

pendency of an Industrial Dispute and the so called termination or retrenchment of services on 20.06.2014

without bringing home any iota of evidence substantiating the above plea does not bind this Tribunal to accept

the case set forth by him as gospel truth and to draw a finding against the opposite party.

12. It is the settled position of law that u/s 33A of the Industrial Disputes Act, the complainant carries the

initial burden / onus to prove that the employer contravened sec 33 of the Act and such contravention occurred

during the pendency of a dispute, by presenting the facts supported by evidence. Once the complainant

discharges his initial burden to establish that he is an employee in continuous service within the parameters of

sec 33 of the Act and such contravention occurred as pleaded and proved, the employer must then justify their

actions especially concerning alleged dismissal / retrenchment / termination, often leading to the tribunal

deciding if the action was fair and just like any other Industrial Dispute.

13. Here in the given case, the one and only aspect accepted and admitted by the opposite party is the pendency

of CR 22/2013 raised by the Daily Workers Union. That by itself does not discharge the onus of proof cast on the

complainant to prima facie establish its case. The alleged contravention of service conditions or an illegal

cessation of the service of an employee by the employer is not an aspect to be simply inferred by the Tribunal

out of nothing but to be very precisely, meticulously and scrupulously proved and established by the aggrieved

complainant.

14. Sec 33A is designed to provide an instant remedy to a workman aggrieved by the contravention of sec 33

by filing a complaint before adjudicatory authorities or conciliatory authorities. It is trite that where such a

complaint is made to an adjudicatory authority viz. Labour Court / Tribunal, it will adjudicate upon the dispute

as if it is a dispute referred to or pending before it, so that the workman is saved of the botheration of moving the

Government for referring this dispute for adjudication.

15. The basic question to be considered by this Tribunal in the complaint on hand u/s 33A is whether there has

been a contravention by the employer of the provisions of sec 33 and in the event it is found that there has been a

contravention of the provisions, then to embark upon the exercise to adjudicate about the matter so complained

of in the complaint on its merit. No written order of termination / retrenchment is produced by the complainant to

justify his pleadings. Of course, he averred in the complaint that the termination issued by the opposite party was

only oral. If that be so, it should be proved by the complainant that he was in continuous service under the

opposite party and was subjected for a termination / retrenchment on an oral order by mounting the witness box.

Going by the proceedings underwent in the given case, it is clear that once the statement of objection is filed by

the opposite party, the matter was posted for evidence of the complainant and on the repeated request of the

complainant, evidence / enquiry was postponed by my learned predecessor by not less than 5 occasions. Then at

the whimsical stand of the complainant it is made out that there is no need to adduce evidence and the matter be

posted for arguments. In fact, as per law, before giving any relief to the aggrieved employee under the section,

the authority viz., this Tribunal has first to determine that the employee was continuously working under the

employer and the latter had surreptitiously kicked out him from the job without complying with the mandate u/s

33 of the Act. Hence a contravention of sec 33 is the foundation for exercise of the power u/s 33A of the Act. As

already observed and as rightly pointed out by the learned counsel for the opposite party, no reliable proof /

evidence is brought on record by the complainant to substantiate that there is contravention of provisions of sec

33 of the Act from the side of the opposite party.

16. In the event if the alleged factum of infraction from the provision of sec 33 is established, the matter has to

be very meticulously adjudicated on merit to examine whether the complainant is entitled to get an order of

reinstatement. It is trite that even when contravention of sec 33 is established, that does not automatically lead to

an order for reinstatement. So, at large, the complainant is at the task to prove and establish the primary elements

viz., his status as a daily wage employee under the opposite party coupled with contravention of the provisions of

sec 33 by the latter and then his eventual right to get reinstatement to service with equivalent benefits.

Determination of all these issues by the legal forum could be possible only when reliable evidence is adduced by

the complainant by offering himself for searching cross examination by the opposite party in a full-fledged trial.

It is trite that the initial burden lies on the employee to prove that he falls under the definition of a ―workman‖

under the Industrial Disputes Act. If the employee presents a strong prima facie case, the management must then

provide evidence to rebut it. Of course, the evidence to be adduced by the person claiming to be an employee

must be substantial, often a preponderance of evidence depending on the claim. It is no longer res-integra that the

burden of proving the employer-employee relationship primarily rest upon the person who asserts its existence.

In a situation where a person asserts to be an employee of the management which the management denies, the

duty primarily rests upon the person so asserting to give positive evidence in his favour and discharge his initial

burden. At the risk of repetition I say, once such a person has given such a positive evidence in his favour, only

then the burden would shift on the management to give evidence to counter such claims, because it is always

possible to prove positive facts than a negative. The Hon'ble Supreme Court in Workman of Nilgiri Co-Op

Mkt Society LTD vs. State of Tamil Nadu (AIR 2004 SC 1639) held that it is a well settled principle of law

that the person who is setting up a plea of existence of relationship of employer and employee, the burden would

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

67

be upon him. Similar view is adopted by the Hon'ble Supreme Court in Bank of Baroda vs. Ghemarabhai

Harijibhai Rabari (2005 (10) SCC 792). The complainant herein kept aloof from trial feeling shy of an

intensive quiz in the witness box. Probably, the complainant might have been misled, misguided or mal-advised

not to mount the witness box so as to avoid probable inconvenience of a grilling cross-examination. The net

result of such willful avoidance of requisite procedure by the complainant either by himself or as instilled upon

him is complete failure of the case projected by him.

17. Extensive argument is advanced on behalf of the complainant with the aid of plethora of legal authorities

canvassing for a favorable order of reinstatement with full back wages, continuity of service with regularization

and ancillary benefits from 20.06.2014. As could be heard from Learned Counsel for the opposite party, all these

wider reliefs sought for by the complainant are the main reliefs claimed in the said case CR 22/2013. By

consciously avoiding to give oral or documentary evidence in this case, what is craved for on behalf of the

complainant is to grant the above reliefs even without facing a trial. Granting such reliefs in his favour without

providing / supplementing any sort of evidentiary support would tantamount to prejudging the issue raised in the

Industrial Dispute case CR 22/2013 in a very shortcut method.

18. Argument is advanced on behalf of the complainant placing reliance upon the verdicts of the Hon'ble High

Court of Gujarat in Gujarat State Electricity Corporation LTD vs. Bhimrao Aagete (LPA 177 / 2016 dated

06.03.2018), Kalavatiben Prabhakar Patil and others vs. Managing Director (C/SCA/3189/2020 dated

17.01.2022) that while deciding a complaint u/s 33A it is not obligatory for the workman to prove that he had

worked for 240 days. Those rulings in fact do not indicate that the complainant is not at all under obligation to

substantiate his basic status under the opposite party to justify the case put forth.

19. In the peculiar facts and circumstances of the case and the very casual manner in which it is manned by the

complainant, the plethora of rulings relied upon by him viz., Hindustan Lever LTD vs. Ram Mohan Roy and

others (AIR 1973 SC 1156) by the Hon'ble Apex Court, Management of Karur Vysya Bank LTD vs.

Presiding Officer, Industrial Tribunal (2007 II LLJ 459) by the Hon'ble High Court of Madras, M M

Narayana vs. KSRTC (AIR 2012 (4) KAR R 518) and Karan Kumar vs. Divisional Controller KSRTC

(WP 203333/2019 dated 13.07.2023) by the Hon'ble High Court of Karnataka and Deutsche Lufthansa AG vs.

Nayan Pahwa & others (2025 INSC 998) by the Hon'ble High Court of Delhi are not of any help to the

complainant as in all those cases non-compliance of the provisions by the respective employers are relating to

regular employees on its payroll. Among the cases noted above, the case of Karur Vysya Bank LTD, MM

Narayana and Karan Kumar are related to the actions initiated by the respective employers based on

misconduct / misdemeanor of the respective regular employees in respect of which approval applications were

not submitted by the employers. In Hindustan Lever’s case also, the complainants were the regular employees

of the employer establishment. In principle, the fact situations contained in the afore-quoted ruling do not have

any application to the case on hand.

20. Before concluding, it is worthy to pen down that in order to avail the relief provided u/s 33 of the Act,

firstly the aggrieved party should prove himself to be a workman within the definition of u/s 2(s) of the Industrial

Disputes Act and there exists employer-employee relationship between the contesting parties. In conclusion of

the afore-discussion, I find that the complainant has miserably failed in substantiating his own case. The specific

reason for his so called expulsion from job is the personal vendetta of the then Branch Manager based on a

flimsy and flippant incident. The opposite party per contra denied and disowned happening of such an incident.

So much so, the said event being the one within the personal knowledge of the complainant ought to have been

proved and established by adducing cogent evidence by tendering oral testimony and / or by examining a co-

employee / witness to the incident. He equally failed in refuting / negating the contentions raised by the opposite

party that he is only a coolie engaged on need and requirement basis without continuity and frequency and hence

not governed by any rules and regulations of the bank. So also the complainant further failed in successfully

controverting the rival contentions of the opposite party that there is no employee-employer relationship between

himself and the opposite party or that he was not engaged by the latter against a sanctioned post. The deliberate

refusal, negligence or avoidance to prove and establish a genuine and reliable case by tendering requisite

evidence has led the complainant to face a total failure in the given case and for an eventual dismissal of the

complaint. With this view, these points are answered accordingly.

21. Point No. 5:- In view of the findings on point no. 1 to 4, it is held that the complainant is not entitled for

any reliefs sought for in this complaint.

22. Point no. 6:- In the result the following award is passed.

AWARD

The Complaint no. 01/2019 is dismissed.

(Dictated to LDC, transcribed by him, corrected and signed by me on 06th January 2026)

68

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

K P INDIRA, Presiding Officer

नई ददल्ली, 15 जनवरी, 2026

का.आ. 26.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj

ds izca/kr=] lac) fu;kstdksa vkSj muds deZdkjksa ds chp vuqca/k esa fufnZ’V औद्योजगक fookn esa

dsUnzh; ljdkj औद्योजगक vf/kdj.k@Je U;k;ky;

ds iapkV (a03/2019) izdkf”kr djrh gSA

[सं.एल-12025/01/2026-आई.आर.(बी-I)-19]

सलोनी, उप जनदेिक

New Delhi, the 15th January, 2026

S.O. 26.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref. 03/2019) of the Cent.Govt.Indus.Tribunal-cum-Labour Court

Bangalore as shown in the Annexure, in the industrial dispute between the management of Karnataka

Grameena Bank and their workmen.

[No. L-12025/01/2026- IR(B-I)-19]

SALONI, Dy. Director

ANNEXURE

BEFORE THE

CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT

DATED :

06th January 2026

PRESENT : Smt. K P INDIRA

Presiding Officer

Comp No. 03 / 2019

Appellant

Opposite Party

Sh. Siddaiah,

S/o Sannaiah,

Karakalamadahalli,

Vaddaragere,

Gundlupet, Chamarajanagara 571 123,

The Chairman / General Manager,

Karnataka Grameena Bank,

Head Office,

Gandhinagara, Bellary

Appearance

Complainant

:M Rama Rao

Authorized Representative

Opposite Party : T P Muthanna

Advocate

ORDER

1. This is a complaint filed by the complainant u/s 33A of the Industrial Disputes Act 1947 raising the

following contentions:-

The complainant was appointed by the opposite party in the post of MCS / Office Assistant

(Multipurpose) / Substaff at their Bommalapura branch on 02.12.2010. He submitted application and documents

and attended interview for selection. Since then he worked continuously in the said branch till the date of his

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

69

termination / retrenchment / discharge / dismissal of his service on 01.10.2016. As a part of his job, he used to

open the branch by collecting keys from the Manager, cleaning the office, aiding the customers and the branch in

various ways. In order to avoid the extension of status and benefits of permanent workman to him, the Opposite

Party directed the Bommalapura branch to debit his wages as coolie charges to the General ledger account

without obtaining his signature on the debit vouchers. The officials of the branch took his signature on the

overleaf of coolie paid debit vouchers along with the signatures of the branch officers while paying wages in

cash to him. He was the only person doing the work of the office attendant / messenger / sweeper / substaff /

daily wager / MCS etc on coolie charges. The Opposite Party was not marking attendance register for his work,

not extended payment register to him, signing debit vouchers for his wages by the officers of the bank and

receiving amount by them and then paying the amounts to him as wages, debiting the wages paid to him to

General Charges Account instead of salary paid account / Establishment charges, not issuing appointment orders

or certificates for the services rendered by him in the bank, refusal to pay wages applicable to messengers /

housekeeping staff / sub staff / MCS to him, not extending the service benefits applicable to permanent

workman, taking work from him for years together as Coolie by terming his wages as coolie charges practiced

by the opposite party are all unfair labour practices under the 5th Schedule of the ID Act 1947. The complainant

along with other coolie workers of the opposite party bank formed a union called Pragathi Grameena Bank Daily

Wage Workers Union in 2012 and he was active in the Union activities. The Union filed cases before the Central

Labour Machinery for getting the benefits for the daily wage workers of the Bank. This has caused annoyance to

the then management against him. CR 15/2015 is pending before this Tribunal in which the Union raised a

dispute for regularization of services of the workmen including him. He is directly connected with the said

dispute raised by the said union. On 01.10.2016, the Branch Manager Mr. Prashanth has asked the complainant

to work under a contractor Gajamukha Agencies in the Bank or not to come for work. As he was not ready to

work under the contractor and his services were terminated from 01.10.2016. His services are terminated

abruptly without any reason and without issuing any notice to him or paying any retrenchment compensation.

His repeated requests to allow him to do work in the branch were not considered by the Branch Manager. The

opposite party has not filed any application before the appropriate Government seeking permission to retrench

him u/s 25 N of the ID Act 1947. Therefore, the retrenchment of his service is illegal, ab-initio void and he is

deemed to be in the services of the Bank as per sec 25 N(7) of the ID Act. As per the provision of Sec 33 of the

ID Act, the opposite party cannot alter or change the conditions of his service applicable to him immediately

before the commencement of the proceedings of C R 15/2015 to his prejudice , during the pendency of CR

15/2015 before this Tribunal without the expressed permission in writing from the tribunal and also shall not

discharge / dismiss / terminate / retrench him unless he was paid wages for one month and without making an

application for approval of the action so taken. The opposite party has not observed any of the provisions of the

ID Act 1947 and has not filed any application before the Tribunal. The action of the opposite party is against the

provisions of the ID Act, principles of natural justice, illegal, null and void. The opposite party was paying him

wages @ Rs. 6500/- per month. The opposite party has not paid any wages to him since the retrenchment of his

services. Since the opposite party has not filed any application before the Tribunal seeking approval of their

action, he is entitled for payment of full wages drawn by him every month till the disposal of this case. Since the

opposite party has not filed any application before the appropriate government for the termination of his services,

not issued any copy of such application to him nor any notice / notice pay / compensation as required u/s 25 N of

the ID Act, he is deemed to be in service for the benefits as applicable to him prior to such cessation of his

service and is entitled for wages as per sec 25N (7) of the ID Act. Due to the illegal cessation of service imposed

on him by the opposite party, the complainant and his family are suffering economically and socially. Hence this

complaint for declaring the termination / retrenchment / discharge / dismissal of the complainant from

01.10.2016 is not in accordance with the provisions of the ID Act 1947, against the principles of natural justice,

arbitrary, unilateral, ill motivated and illegal and to direct the opposite party to reinstate the complainant with

full back wages, continuity of service with regularization, ancillary benefits from 01.10.2016 and with cost.

2.

The opposite party at the outset has contended that the complainant has no enforceable cause of action to

file this complaint and to get any relief. There is no discharge or termination of employment and no Industrial

Dispute lie under the Act 1947. Ther e is no post of messenger cum sweeper in the Bank. Recruitment and

appointment of employees in the Regional Rural Banks is governed by the rules framed by the Government of

India vide notification dated 13.07.2010 called ―Regional Rural Banks (Appointment and Promotions of Officers

and Employees) Rules 2010‖. As per the said rules, procedure with regard to Office Attendant (Multipurpose

Group C employees) are prescribed, the selection process being on the basis of interview to be conducted by a

Committee. The branches / offices of the bank engage coolies occasionally and intermittently as and when

necessitated for doing menial works in the branches. In order to meet the exigencies of the work, the opposite

party bank branches used to engage coolies only for few hours for such menial works like cleaning, sweeping

and watering and were paid coolie charges proportionately depending upon the number of hours they worked.

For such menial works in the branches, no condition regarding educational qualification or age is stipulated.

Depending upon the availability of the person in the locale, the Branch Manager engaged such person on need

basis for such works. The complainant was also engaged similarly as a coolie intermittently and not

continuously. As per the Government of India guidelines for appointment of Regular Attendants, the names

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[PART II—SEC. 3(ii)]

should be sponsored by the employment exchange and such engagement is also subject to the conditions

stipulated in regard to educational qualification, age etc. While engaging the coolies, no educational

qualifications or age were looked into and whoever is available would be engaged. They are not governed by any

rules and regulation of the bank and there is no employee employer relationship as they have not been engaged

by the bank against the post. It is the settled position in law that a person engaged intermittently on daily wages

will not have the right to be absorbed for any post. The Hon'ble Supreme Court of India in Secretary, State of

Karnataka vs. Uma Devi have laid down the law relating to regularization / permanency claims of casual

employees. In Union of India vs. A S Pillai also the Hon'ble Supreme Court held that daily wager / part time

workers not engaged in any regular cadres or any sanctioned post are not entitled for absorption. The contention

of the complainant that he was appointed by the opposite party at their Bommalapura branch on 02.12.2010 by

taking application form etc. is denied. The Branch Manager has no power to recruit / appoint any employee. The

complainant was engaged only occasionally to attend to menial / urgent works and not continuously. Since the

complainant was not recruited / appointed by the opposite party anytime, his termination / dismissal /

retrenchment on 01.10.2016 did not arise. Consequently, question of issuing notice to him, payment of

retrenchment compensation, payment of wages of one month, filing of application before the Tribunal before or

during the pendency of CR 15/2015 and seeking permission u/s 25N of the Act does not arise. Under the

circumstances, sec 33 of the Industrial Disputes Act has no application in his case. He was never engaged for

attending the regular functions of substaff. He was paid wages for the occasional / casual works he was engaged

to. The Branch Managers are not authorized to issue any certificates and question of issuing certificates to him

does not arise as he was not continuously engaged in the opposite party bank and nor was empanelled in the

daily wagers‘ list. The complainant has not been appointed in the payrolls of the opposite party at any time.

Since he has not been appointed in the opposite party bank, question of marking in the attendance register,

extending payment registered to him, debiting the payment made to him to salary account, issuing appointment

orders, issuing certificates and denying benefits etc. did not arise. Hence the allegation of unfair labour practice

on the part of the opposite party is untenable. The contention of the complainant that his involvement in the

union activities and filing of Industrial Dispute by the said union for getting benefits to the daily wage workers

has caused anger to the opposite party is a figment of his imagination and hence denied. The complainant was

not working in the opposite party bank on continuous basis and was engaged occasionally, casually for menial

and urgent requirements. His contention that he was being paid wages @ Rs. 6500/- is denied. His contentions

that he was deemed to be in service and entitled for benefits are untenable and baseless. The complainant has not

undergone any process of recruitment and is not entitled for recruitment for appointment in the opposite party

bank or for reinstatement or other ancillary benefits as claimed by him. For all these reasons, the opposite party

has prayed for rejection of the complaint.

3.

From the above rival pleadings, following points arise for consideration:-

1.

Whether the complaint is legally and factually maintainable?

2. Whether the Complainant is proved to have been working continuously in the opposite party

establishment since 02.12.2010?

3. Whether the complainant is proved to have been discharged / terminated / retrenched / dismissed

from service as contended by him?

4. Whether the alleged contravention of the provision of sec 33 of the ID Act is proved by the

complainant?

5. Whether the complainant is entitled to get reinstatement to the service with full back wages,

continuity of service and ancillary benefits from 01.10.2016 as prayed for?

6. What is the proper Order and Award to be passed in this complaint case?

4.

The complainant has got himself examined in chief as CW1 and Ex C1 is seen marked. When the stage

came for his cross-examination, the Authorized Representative of the complainant is seen to have submitted that

the affidavit filed by the complainant on 16.10.2019 in lieu of his examination in chief to be discarded and the

matter be directly heard. Accordingly, that part of the oral and documentary evidence tendered by the

complainant stood struck off from record. In effect, there is no evidence on the part of the complainant.

5.

Heard the oral and written arguments submitted from both sides.

6.

Points no. 1 to 4:- Since all these points are closely integrated and inter-twined, all these points are

discussed together. Alleging contravention of the provisions of sec 33 of the ID Act 1947, the complainant filed

the instant complaint u/s 33A of the Act on the factual averment that the opposite party has not filed any

application before this Tribunal seeking permission for retrenching / terminating / dismissing him on 01.10.2016

and not filing any application for approval of their said action. The complainant‘s case is that he was appointed

by the opposite party bank at their Bommalapura branch on 02.12.2010 on submission of application and

subjecting him for interview and on obtaining documents from him. He claims that since then he has worked

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

71

continuously in the said branch on all working days. It is his further case that to his surprise, without giving any

prior notice or without assigning any reason, he was asked on 01.10.2016 not to come for work and his services

are terminated. The complainant inter alia pleaded that he is an active member in a Union under the name and

style Pragathi Grameena Bank Daily Wage Workers Union formed between himself with other coolie workers of

the opposite party bank. The said union has raised a dispute for regularization of the service of the complainant

and other similarly placed coolie before the Central Government Machinery and the same is registered and

pending before this Tribunal as CR 15/2015. It is the case of the complainant that he is directly connected with

the said dispute raised by the Union pending before this Tribunal. The disengagement of job on 01.10.2016

according to the complainant tantamounts to contravention of the provisions of sec 33 of the ID Act as according

to him it happened when the industrial dispute raised by the union for and on behalf of him and the other coolie

workers was pending adjudication. This gave way for filing this complaint u/s 33A of the ID Act.

7.

Oral and written arguments are advanced on behalf of the complainant narrating all these events by his

authorized representative.

8.

The learned counsel for the opposite party per contra put forth his rival submission that the complainant has

never ever rendered any continuous service in the opposite party bank. Instead the bank was in the practice of

engaging persons from the locale for attending menial job like sweeping, cleaning and watering when the regular

employees are absent or proceed on leave and such persons were paid coolie charges for the same. According to

the opposite party, the complainant was also so casually engaged depending on the requirement of the branch as

a coolie for doing menial works and such works carried out by him was not regular in nature, but only on need

basis. To put it differently, according to the opposite party the engagement of the complainant was not

continuous and it was only intermittent.

9.

Of course, the event of non-engagement for work said to have happened on 01.10.2016 is apparently during

the pendency of CR 15/2015. However the complainant did not prefer to bring home any proof that he was in

service in the opposite party bank even on the previous day or anytime there-before in a constant and continuous

stretch so as to establish the retrenchment / dismissal / discharge / termination alleged in the complaint. Here it is

contextually profitable to quote Sec 33 of the Act:

33. [ Conditions of service, etc., to remain unchanged under certain circumstances during pendency of

proceedings. ]

(1)During the pendency of any conciliation proceeding before a conciliation officer or a Board or of any

proceeding before ][an arbitrator or] [a Labour Court or Tribunal or National Tribunal in respect of an

industrial dispute, no employer shall- (a)in regard to any matter connected with the dispute, alter, to the

prejudice of the workmen concerned in such dispute, the conditions of service applicable to them immediately

before the commencement of such proceeding; or (b)for any misconduct connected with the dispute, discharge

or punish, whether by dismissal or otherwise, any workmen concerned in such dispute, ave with the express

permission in writing of the authority before which the proceeding is pending.(2)During the pendency of any

such proceeding in respect of an industrial dispute, the employer may, in accordance with the standing orders

applicable to a workman concerned in such dispute ] [or, where there are no such standing orders, in

accordance with the terms of the contract, whether express or implied, between him and the workman] (a)[

alter, in regard to any matter not connected with the dispute, the conditions of service applicable to that

workman immediately before the commencement of such proceeding; or (b) for any misconduct not connected

with the dispute, discharge or punish, whether by dismissal or otherwise, that workman: Provided that no such

workman shall be discharged or dismissed, unless he has been paid wages for one month and an application

has been made by the employer to the authority before which the proceeding is pending for approval of the

action taken by the employer. (3)Notwithstanding anything contained in sub-section (2), no employer shall,

during the pendency of any such proceeding in respect of an industrial dispute, take any action against any

protected workman concerned in such dispute (a) by altering, to the prejudice of such protected workman, the

conditions of service applicable to him immediately before the commencement of such proceedings; or (b) by

discharging or punishing, whether by dismissal or otherwise, such protected workman, save with the express

permission in writing of the authority before which the proceeding is pending. Explanation:-For the purposes

of this sub-section, a "protected workman ", in relation to an establishment, means a workman who, being] [a

member of the executive or other office bearer] [of a registered trade union connected with the establishment,

is recognised as such in accordance with rules made in this behalf.(4)In every establishment, the number of

workmen to be recognised as protected workmen for the purposes of sub-section (3) shall be one per cent. of

the total number of workmen employed therein subject to a minimum number of five protected workmen and a

maximum number of one hundred protected workmen and for the aforesaid purpose, the appropriate

Government may make rules providing for the distribution of such protected workmen among various trade

unions, if any, connected with the establishment and the manner in which the workmen may be chosen and

recognised as protected workmen.(5)Where an employer makes an application to a conciliation officer, Board,

] [an arbitrator, a] [Labour Court, Tribunal or National Tribunal under the proviso to sub-section (2) for

approval of the action taken by him, the authority concerned shall, without delay, hear such application and

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[PART II—SEC. 3(ii)]

pass, ] [within a period of three months from the date of receipt of such application] [ Substituted by Act 46 of

1982, Section 17, for " as expeditiously as possible" (w.e.f. 21.8.1984).][, such order in relation thereto as it

deems fit:]. ][Provided that where any such authority considers it necessary or expedient so to do, it may, for

reasons to be recorded in writing, extend such period by such further period as it may think fit: Provided

further that no proceedings before any such authority shall lapse merely on the ground that any period

specified in this sub-section had expired without such proceedings being completed.]

10. Of course by enacting sec 33, the legislature wanted to ensure a fair and satisfactory enquiry of the

industrial dispute undisturbed by any action on the part of the employer or the employee likely to create fresh

cause for disharmony between them. The legislature visualized that during the pendency of the industrial dispute

status quo should be maintained and no further element of discord should be introduced between the employer

and the employee. The objective of the provision of sec 33 is to put a ban on the prerogative of the employer in

altering the service condition of the employee pending enquiry of the industrial dispute raised by them. The

primary principle is that if an Industrial Dispute is raised by a group of workmen acting on their own through

their union, the general conclusion is that the all those who sponsored the dispute are concerned in it. However

the very factum of raising an Industrial Dispute and pendency of such a dispute in a court of law by an individual

employee or a group of employees by itself does not lead to the inference that such an individual who alleges

retrenchment from services was a workman in continuous service under the employer, unless proved by concrete

evidence. Indeed, Sec 33A stands to the rescue of a workman who alleges alteration or cessation of service by

the employer during the pendency of an Industrial Dispute. A regular workman / employee or a casual employee

on a continuing basis under an employer who files a complaint u/s 33A certainly stands on a different footing

than the one who claims continuity of service as a casual labourer and whose claim is not accepted by the

employer.

11. The case on hand portrays the scenario the employer disowns and denies the complainant as its regular

daily wager. The alleged retrenchment of service dated 01.10.2016 averred by the complainant is not accepted or

recognized by the Oppose Party in the given case. The definite stand of the opposite party is that the complainant

had been engaged very occasionally and intermittently on need basis to attend menial works like sweeping,

cleaning etc. without touching the routine works in the office. The complainant per contra very particularly

pleaded that apart from cleaning in and around the bank office, he was entrusted with the task of assisting

customers in making challans for cash / cheque, deposits taking and keeping cash in double lock, writing

registers, collecting cash from other banks from the cheques drawn on them, printing passbooks, deposit receipts,

writing loan papers, making deposit mobilization, bundling payment slips and day book and such so many tasks.

However according to the opposite party all the above works are the routine tasks of the regular employees and

not of such casual workers engaged for attending menial jobs. Thus the factual pleadings of the complainant

indicate that his engagement in the opposite party bank was not to attend menial labour alone but higher tasks as

well, as mentioned above. It is while attending such highly responsible tasks in his so called status as MCS /

Office assistant (multipurpose) / sub-staff at the Bomallapura branch of the opposite party continuously since

02.10.2010 that the opposite party has terminated / retrenched his services on 01.10.2016. This factum also the

opposite party has emphatically opposed and disputed. According to the opposite party, no such retrenchment or

termination has ever occurred nor was there any occasion for that as the bank had not engaged the complainant

in such a position at all in work continuously. In this factual background it is the primary duty of the complainant

to substantiate that his very entry in the bank was on 02.12.2010 and he continued to perform services in the

opposite party bank without any break till 01.10.2016. The complainant is equally obliged to prove that he was

disengaged from a continuous service on 01.10.2016. Inability to offer menial job on a particular date when there

was no requirement to engage a casual labourer to attend such work pleaded by the opposite party does oblige

the complainant to substantiate his specific case by adducing reliable and concrete material evidence establishing

all the aspects pleaded by him in the complaint. The mere pleading raised by him regarding the prevalence /

pendency of an Industrial Dispute and the so called termination or retrenchment of services on 01.10.2016

without bringing home any iota of evidence substantiating the above plea does not bind this Tribunal to accept

the case set forth by him as gospel truth and to draw a finding against the opposite party.

12. It is the settled position of law that u/s 33A of the Industrial Dispute Act, the complainant carries the initial

burden / onus to prove that the employer contravened sec 33 of the Act and such contravention occurred during

the pendency of a dispute, by presenting the facts supported by evidence. Once the complainant discharges his

initial burden to establish that he is an employee in continuous service within the parameters of sec 33 of the Act

and such contravention occurred as pleaded and proved, the employer must then justify their actions especially

concerning alleged dismissal / retrenchment / termination, often leading to the tribunal deciding if the action was

fair and just like any other Industrial Dispute.

13. Here in the given case, the one and only aspect accepted and admitted by the opposite party is the pendency

of CR 15/2015 raised by the Daily Workers Union. That by itself does not discharge the onus of proof cast on the

complainant to prima facie establish its case. The alleged contravention of service conditions or an illegal

cessation of the service of an employee by the employer is not an aspect to be simply inferred by the Tribunal

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

73

out of nothing but to be very precisely, meticulously and scrupulously proved and established by the aggrieved

complainant.

14. Sec 33A is designed to provide an instant remedy to a workman aggrieved by the contravention of sec 33

by filing a complaint before adjudicatory authorities or conciliatory authorities. It is trite that where such a

complaint is made to an adjudicatory authority viz. Labour Court / Tribunal, it will adjudicate upon the dispute

as if it is a dispute referred to or pending before it, so that the workman is saved of the botheration of moving the

Government for referring this dispute for adjudication.

15. The basic question to be considered by this Tribunal in the complaint on hand u/s 33A is whether there has

been a contravention by the employer of the provisions of sec 33 and in the event it is found that there has been a

contravention of the provisions, then to embark upon the exercise to adjudicate about the matter so complained

of in the complaint on its merit. No written order of termination / retrenchment is produced by the complainant to

justify his pleadings. Of course, he averred in the complaint that the termination issued by the opposite party was

only oral. If that be so, it should be proved by the complainant that he was in continuous service under the

opposite party and was subjected for a termination / retrenchment on an oral order by mounting the witness box.

Going by the proceedings underwent in the given case, it is clear that once the statement of objection is filed by

the opposite party, the matter was posted for evidence of the complainant. Though initially the complainant has

got himself examined in chief as CW1 and Ex C1 is seen marked, when the stage came for his cross-

examination, the Authorized Representative of the complainant is seen to have submitted that the affidavit filed

by the complainant on 16.10.2019 in lieu of his examination in chief is to be discarded and the matter be directly

heard. Accordingly, that part of the oral and documentary evidence tendered by the complainant stood struck off

from record. In effect, there is no evidence on the part of the complainant. In fact, as per law, before giving any

relief to the aggrieved employee under the section, the authority viz., this Tribunal has first to determine that the

employee was continuously working under the employer and the latter had surreptitiously kicked out him from

the job without complying with the mandate u/s 33 of the Act. Hence a contravention of sec 33 is the foundation

for exercise of the power u/s 33A of the Act. As already observed and as rightly pointed out by the learned

counsel for the opposite party, no reliable proof / evidence is brought on record by the complainant to

substantiate that there is contravention of provisions of sec 33 of the Act from the side of the opposite party.

16. In the event if the alleged factum of infraction from the provision of sec 33 is established, the matter has to

be very meticulously adjudicated on merit to examine whether the complainant is entitled to get an order of

reinstatement. It is trite that even when contravention of sec 33 is established, that does not automatically lead to

an order for reinstatement. So, at large, the complainant is at the task to prove and establish the primary elements

viz., his status as a daily wage employee under the opposite party coupled with contravention of the provisions of

sec 33 by the latter and then his eventual right to get reinstatement to service with equivalent benefits.

Determination of all these issues by the legal forum could be possible only when reliable evidence is adduced by

the complainant by offering himself for searching cross examination by the opposite party in a full-fledged trial.

It is trite that the initial burden lies on the employee to prove that he falls under the definition of a ―workman‖

under the Industrial Dispute Act. If the employee presents a strong prima facie case, the management must then

provide evidence to rebut it. Of course, the evidence to be adduced by the person claiming to be an employee

must be substantial, often a preponderance of evidence depending on the claim. It is no longer res-integra that the

burden of proving the employer-employee relationship primarily rest upon the person who asserts its existence.

In a situation where a person asserts to be an employee of the management which the management denies, the

duty primarily rests upon the person so asserting to give positive evidence in his favour and discharge his initial

burden. At the risk of repetition I say, once such a person has given such a positive evidence in his favour, only

then the burden would shift on the management to give evidence to counter such claims, because it is always

possible to prove positive facts than a negative. The Hon'ble Supreme Court in Workman of Nilgiri Co-Op

Mkt Society LTD vs. State of Tamil Nadu (AIR 2004 SC 1639) held that it is a well settled principle of law

that the person who is setting up a plea of existence of relationship of employer and employee, the burden would

be upon him. Similar view is adopted by the Hon'ble Supreme Court in Bank of Baroda vs. Ghemarabhai

Harijibhai Rabari (2005 (10) SCC 792). The complainant herein kept aloof from trial feeling shy of an

intensive quiz in the witness box. Probably, the complainant might have been misled, misguided or mal-advised

not to mount the witness box so as to avoid probable inconvenience of a grilling cross-examination. The net

result of such willful avoidance of requisite procedure by the complainant either by himself or as instilled upon

him is complete failure of the case projected by him.

17. Extensive argument is advanced on behalf of the complainant with the aid of plethora of legal authorities

canvassing for a favorable order of reinstatement with full back wages, continuity of service with regularization

and ancillary benefits from 01.10.2016. As could be heard from Learned Counsel for the opposite party, all these

wider reliefs sought for by the complainant are the main reliefs claimed in the said case CR 15/2015. By

consciously avoiding to give oral or documentary evidence in this case, what is craved for on behalf of the

complainant is to grant the above reliefs even without facing a trial. Granting such reliefs in his favour without

providing / supplementing any sort of evidentiary support would tantamount to prejudging the issue raised in the

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[PART II—SEC. 3(ii)]

Industrial Dispute case CR 15/2015 in a very shortcut method.

18. Argument is advanced on behalf of the complainant placing reliance upon the verdicts of the Hon'ble High

Court of Gujarat in Gujarat State Electricity Corporation LTD vs. Bhimrao Aagete (LPA 177 / 2016 dated

06.03.2018), Kalavatiben Prabhakar Patil and others vs. Managing Director (C/SCA/3189/2020 dated

17.01.2022) that while deciding a complaint u/s 33A it is not obligatory for the workman to prove that he had

worked for 240 days. Those rulings in fact do not indicate that the complainant is not at all under obligation to

substantiate his basic status under the opposite party to justify the case put forth.

19. In the peculiar facts and circumstances of the case and the very casual manner in which it is manned by the

complainant, the plethora of rulings relied upon by him viz., Hindustan Lever LTD vs. Ram Mohan Roy and

others (AIR 1973 SC 1156) by the Hon'ble Apex Court, Management of Karur Vysya Bank LTD vs.

Presiding Officer, Industrial Tribunal (2007 II LLJ 459) by the Hon'ble High Court of Madras, M M

Narayana vs. KSRTC (AIR 2012 (4) KAR R 518) and Karan Kumar vs. Divisional Controller KSRTC

(WP 203333/2019 dated 13.07.2023) by the Hon'ble High Court of Karnataka and Deutsche Lufthansa AG vs.

Nayan Pahwa & others (2025 INSC 998) by the Hon'ble High Court of Delhi are not of any help to the

complainant as in all those cases non-compliance of the provisions by the respective employers are relating to

regular employees on its payroll. Among the cases noted above, the case of Karur Vysya Bank LTD, MM

Narayana and Karan Kumar are related to the actions initiated by the respective employers based on

misconduct / misdemeanor of the respective regular employees in respect of which approval applications were

not submitted by the employers. In Hindustan Lever’s case also, the complainants were the regular employees

of the employer establishment. In principle, the fact situations contained in the afore-quoted ruling do not have

any application to the case on hand.

20. Before concluding, it is worthy to pen down that in order to avail the relief provided u/s 33 of the Act,

firstly the aggrieved party should prove himself to be a workman within the definition of u/s 2(s) of the Industrial

Dispute Act and there exists employer-employee relationship between the contesting parties. In conclusion of the

afore-discussion, I find that the complainant has miserably failed in substantiating his own case. He equally

failed in refuting / negating the contentions raised by the opposite party that he is only a coolie engaged on need

and requirement basis without continuity and frequency and hence not governed by any rules and regulations of

the bank. So also the complainant further failed in successfully controverting the rival contentions of the

opposite party that there is no employee-employer relationship between himself and the opposite party or that he

was not engaged by the latter against a sanctioned post. The deliberate refusal, negligence or avoidance to prove

and establish a genuine and reliable case by tendering requisite evidence has led the complainant to face a total

failure in the given case and for an eventual dismissal of the complaint. With this view, these points are

answered accordingly.

21. Point No. 5:- In view of the findings on point no. 1 to 4, it is held that the complainant is not entitled for

any reliefs sought for in this complaint.

22. Point no. 6:- In the result the following award is passed.

AWARD

The Complaint no. 03/2019 is dismissed.

(Dictated to LDC, transcribed by him, corrected and signed by me on 06th January 2026)

K P INDIRA, Presiding Officer

नई ददल्ली, 15 जनवरी, 2026

का.आ. 27.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj

ds izca/kr=] lac) fu;kstdksa vkSj muds deZdkjksa ds chp vuqca/k esa fufnZ’V औद्योजगक fookn esa

dsUnzh; ljdkj औद्योजगक vf/kdj.k@Je U;k;ky;

ds iapkV (a02/2019) izdkf”kr djrh gSA

[सं. एल-12025/01/2026-आई.आर.(बी-I)-18]

सलोनी, उप जनदेिक

New Delhi, the 15th January, 2026

S.O. 27.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref. 02/2019) of the Cent.Govt.Indus.Tribunal-cum-Labour Court

Bangalore as shown in the Annexure, in the industrial dispute between the management of Karnataka

Grameena Bank and their workmen.

[No. L-12025/01/2026- IR(B-I)-18]

SALONI, Dy. Director

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

75

ANNEXURE

BEFORE THE

CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT

DATED :

06th January 2026

PRESENT : Smt. K P INDIRA

Presiding Officer

Comp No. 02 / 2019

Appellant

Opposite Party

Sh. K. Nagaraj,

S/o Krishnappa,

H Mallandahalli,

Post : Harati 563 103,

Kolar,

The Chairman / General Manager,

Karnataka Grameena Bank,

Head Office,

Gandhinagara, Bellary

Appearance

Complainant

:M Rama Rao

Authorized Representative

Opposite Party : T P Muthanna

Advocate

ORDER

1. This is a complaint filed by the complainant u/s 33A of the Industrial Disputes Act 1947 raising the

following contentions:-

The complainant was appointed by the opposite party in the post of MCS / Office Assistant

(Multipurpose) / Substaff at their Kolar office on 01.08.1992. He submitted application and documents and

attended interview for selection. Since then he worked continuously in the said branch till the date of his

termination / retrenchment / discharge / dismissal of his service on 21.03.2015. As a part of his job, he used to

open the branch by collecting keys from the Manager, cleaning the office, aiding the customers and the branch in

various ways. In order to avoid the extension of status and benefits of permanent workman to him, the Opposite

Party directed the Kolar office to debit his wages as coolie charges to the General ledger account without

obtaining his signature on the debit vouchers. The officials of the branch took his signature on the overleaf of

coolie paid debit vouchers along with the signatures of the branch officers while paying wages in cash to him. He

was the only person doing the work of the office attendant / messenger / sweeper / substaff / daily wager / MCS

etc on coolie charges. The Opposite Party was not marking attendance register for his work, not extended

payment register to him, signing debit vouchers for his wages by the officers of the bank and receiving amount

by them and then paying the amounts to him as wages, debiting the wages paid to him to General Charges

Account instead of salary paid account / Establishment charges, not issuing appointment orders or certificates for

the services rendered by him in the bank, refusal to pay wages applicable to messengers / housekeeping staff /

sub staff / MCS to him, not extending the service benefits applicable to permanent workman, taking work from

him for years together as Coolie by terming his wages as coolie charges practiced by the opposite party are all

unfair labour practices under the 5th Schedule of the ID Act 1947. The complainant along with other coolie

workers of the opposite party bank formed a union called Pragathi Grameena Bank Daily Wage Workers Union

in 2012 and he was active in the Union activities. The Union filed cases before the Central Labour Machinery for

getting the benefits for the daily wage workers of the Bank. This has caused annoyance to the then management

against him. CR 22/2013 is pending before this Tribunal in which the Union raised a dispute for regularization of

services of the workmen including him and his name appears at Sl no. 69 in the list of workmen in the said case.

He is directly connected with the said dispute raised by the said union. On 21.03.2015, the Branch Manager Mr.

Venkatesh asked the complainant not to come for work as his services are terminated abruptly without any

reason and without issuing any notice to him or paying any retrenchment compensation. His repeated requests to

allow him to do work in the branch were not considered by the Branch Manager. The opposite party has not filed

any application before the appropriate Government seeking permission to retrench him u/s 25 N of the ID Act

1947. Therefore, the retrenchment of his service is illegal, ab-initio void and he is deemed to be in the services of

the Bank as per sec 25 N(7) of the ID Act. As per the provision of Sec 33 of the ID Act, the opposite party

cannot alter or change the conditions of his service applicable to him immediately before the commencement of

the proceedings of C R 22/2013 to his prejudice , during the pendency of CR 22/2013 before this Tribunal

without the expressed permission in writing from the tribunal and also shall not discharge / dismiss / terminate /

retrench him unless he was paid wages for one month and without making an application for approval of the

action so taken. The opposite party has not observed any of the provisions of the ID Act 1947 and has not filed

76

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

any application before the Tribunal. The action of the opposite party is against the provisions of the ID Act,

principles of natural justice, illegal, null and void. The opposite party was paying him wages @ Rs. 7100/- per

month. The opposite party has not paid any wages to him since the retrenchment of his services. Since the

opposite party has not filed any application before the Tribunal seeking approval of their action, he is entitled for

payment of full wages drawn by him every month till the disposal of this case. Since the opposite party has not

filed any application before the appropriate government for the termination of his services, not issued any copy

of such application to him nor any notice / notice pay / compensation as required u/s 25 N of the ID Act, he is

deemed to be in service for the benefits as applicable to him prior to such cessation of his service and is entitled

for wages as per sec 25N (7) of the ID Act. Due to the illegal cessation of service imposed on him by the

opposite party, the complainant and his family are suffering economically and socially. Hence this complaint for

declaring the termination / retrenchment / discharge / dismissal of the complainant from 21.03.2015 is not in

accordance with the provisions of the ID Act 1947, against the principles of natural justice, arbitrary, unilateral,

ill motivated and illegal and to direct the opposite party to reinstate the complainant with full back wages,

continuity of service with regularization, ancillary benefits from 21.03.2015 and with cost.

2.

The opposite party at the outset has contended that the complainant has no enforceable cause of action to

file this complaint and to get any relief. Recruitment and appointment of employees in the Regional Rural Banks

is governed by the rules framed by the Government of India vide notification dated 13.07.2010 called ―Regional

Rural Banks (Appointment and Promotions of Officers and Employees) Rules 2010‖. As per the said rules,

procedure with regard to Office Attendant (Multipurpose Group C employees) are prescribed, the selection

process being on the basis of interview to be conducted by a Committee. The branches / offices of the bank

engage coolies occasionally and intermittently as and when necessitated for doing menial works in the branches.

In order to meet the exigencies of the work, the opposite party bank branches used to engage coolies only for few

hours for such menial works like cleaning, sweeping and watering and were paid coolie charges proportionately

depending upon the number of hours they worked. The complainant was also engaged similarly as a coolie

intermittently and not continuously. Depending upon the availability of the person in the locale, the Branch

Manager engaged such person on need basis for such works. As per the Government of India guidelines for

appointment of Regular Attendants, the names should be sponsored by the employment exchange and such

engagement is also subject to the conditions stipulated in regard to educational qualification, age etc. While

engaging the coolies, no educational qualifications or age were looked into and whoever is available would be

engaged. They are not governed by any rules and regulation of the bank and there is no employee employer

relationship as they have not been engaged by the bank against the post. It is the settled position in law that a

person engaged intermittently on daily wages will not have the right to be absorbed for any post. The Hon'ble

Supreme Court of India in Secretary, State of Karnataka vs. Uma Devi have laid down the law relating to

regularization / permanency claims of casual employees. The contention of the complainant that he was

appointed by the opposite party at their Kolar office on 01.08.1992 by taking application form etc. is denied. The

Branch Manager has no power to recruit / appoint any employee. The complainant was engaged only

occasionally to attend to menial / urgent works and not continuously. Since the complainant was not recruited /

appointed by the opposite party anytime, his termination / dismissal / retrenchment on 21.03.2015 did not arise.

Consequently, question of issuing notice to him, payment of retrenchment compensation, payment of wages of

one month, filing of application before the Tribunal before or during the pendency of CR 22/2013 and seeking

permission u/s 25N of the Act does not arise. Under the circumstances, sec 33 of the Industrial Disputes Act has

no application in his case. He was never engaged for attending the regular functions of substaff. He was paid

wages for the occasional / casual works he was engaged to. The Branch Managers are not authorized to issue any

certificates and question of issuing certificates to him does not arise as he was not continuously engaged in the

opposite party bank and nor was empanelled in the daily wagers‘ list. The complainant has not been appointed in

the payrolls of the opposite party at any time. Since he has not been appointed in the opposite party bank,

question of marking in the attendance register, extending payment registered to him, debiting the payment made

to him to salary account, issuing appointment orders, issuing certificates and denying benefits etc. did not arise.

Hence the allegation of unfair labour practice on the part of the opposite party is untenable. The contention of the

complainant that his involvement in the union activities and filing of Industrial Dispute by the said union for

getting benefits to the daily wage workers has caused anger to the opposite party is a figment of his imagination

and hence denied. The complainant was not working in the opposite party bank on continuous basis and was

engaged occasionally , casually for menial and urgent requirements. His contention that he was being paid wages

@ Rs. 7100/- is denied. His contentions that he was deemed to be in service and entitled for benefits are

untenable and baseless. The complainant has not undergone any process of recruitment and is not entitled for

recruitment for appointment in the opposite party bank or for reinstatement or other ancillary benefits as claimed

by him. For all these reasons, the opposite party has prayed for rejection of the complaint.

3.

From the above rival pleadings, following points arise for consideration:-

1.

Whether the complaint is legally and factually maintainable?

2. Whether the Complainant is proved to have been working continuously in the opposite party

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

77

establishment since 01.08.1992?

3. Whether the complainant is proved to have been discharged / terminated / retrenched / dismissed

from service as contended by him?

4. Whether the alleged contravention of the provision of sec 33 of the ID Act is proved by the

complainant?

5. Whether the complainant is entitled to get reinstatement to the service with full back wages,

continuity of service and ancillary benefits from 21.03.2015 as prayed for?

6. What is the proper Order and Award to be passed in this complaint case?

4.

The complainant has got himself examined in chief as CW1 and Ex C1 and C2 are seen marked. When the

stage came for his cross-examination, the Authorized Representative of the complainant is seen to have

submitted that the affidavit filed by the complainant on 16.10.2019 in lieu of his examination in chief to be

discarded and the matter be directly heard. Accordingly, that part of the oral and documentary evidence tendered

by the complainant stood struck off from record. In effect, there is no evidence on the part of the complainant.

5.

No evidence is adduced from the side of the opposite party as well.

6.

Heard the oral and written arguments submitted from both sides.

7.

Points no. 1 to 4:- Since all these points are closely integrated and inter-twined, all these points are

discussed together. Alleging contravention of the provisions of sec 33 of the ID Act 1947, the complainant filed

the instant complaint u/s 33A of the Act on the factual averment that the opposite party has not filed any

application before this Tribunal seeking permission for retrenching / terminating / dismissing him on 21.03.2015

and not filing any application for approval of their said action. The complainant‘s case is that he was appointed

by the opposite party bank at their Kolar branch on 01.08.1992 on submission of application and subjecting him

for interview and on obtaining documents from him. He claims that since then he has worked continuously in the

said branch on all working days. It is his further case that to his surprise, without giving any prior notice or

without assigning any reason, he was asked on 21.03.2015 not to come for work and his services are terminated.

The complainant inter alia pleaded that he is an active member in a Union under the name and style Pragathi

Grameena Bank Daily Wage Workers Union formed between himself with other coolie workers of the opposite

party bank. The said union has raised a dispute for regularization of the service of the complainant and other

similarly placed coolie before the Central Government Machinery and the same is registered and pending before

this Tribunal as CR 22/2013. It is the case of the complainant that he is directly connected with the said dispute

raised by the Union pending before this Tribunal. The disengagement of job on 21.03.2015 according to the

complainant tantamounts to contravention of the provisions of sec 33 of the ID Act as according to him it

happened when the industrial dispute raised by the union for and on behalf of him and the other coolie workers

was pending adjudication. This gave way for filing this complaint u/s 33A of the ID Act.

8.

Oral and written arguments are advanced on behalf of the complainant narrating all these events by his

authorized representative.

9.

The learned counsel for the opposite party per contra put forth his rival submission that the complainant has

never ever rendered any continuous service in the opposite party bank. Instead the bank was in the practice of

engaging persons from the locale for attending menial job like sweeping, cleaning and watering when the regular

employees are absent or proceed on leave and such persons were paid coolie charges for the same. According to

the opposite party, the complainant was also so casually engaged depending on the requirement of the branch as

a coolie for doing menial works and such works carried out by him was not regular in nature, but only on need

basis. To put it differently, according to the opposite party the engagement of the complainant was not

continuous and it was only intermittent.

10. Of course, the event of non-engagement for work said to have happened on 21.03.2015 is apparently during

the pendency of CR 22/2013. However the complainant did not prefer to bring home any proof that he was in

service in the opposite party bank even on the previous day or anytime there-before in a constant and continuous

stretch so as to establish the retrenchment / dismissal / discharge / termination alleged in the complaint. Here it is

contextually profitable to quote Sec 33 of the Act:

33. [ Conditions of service, etc., to remain unchanged under certain circumstances during pendency of

proceedings. ]

(1)During the pendency of any conciliation proceeding before a conciliation officer or a Board or of any

proceeding before ][an arbitrator or] [a Labour Court or Tribunal or National Tribunal in respect of an

industrial dispute, no employer shall- (a)in regard to any matter connected with the dispute, alter, to the

prejudice of the workmen concerned in such dispute, the conditions of service applicable to them immediately

before the commencement of such proceeding; or (b)for any misconduct connected with the dispute, discharge

78

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

or punish, whether by dismissal or otherwise, any workmen concerned in such dispute, ave with the express

permission in writing of the authority before which the proceeding is pending.(2)During the pendency of any

such proceeding in respect of an industrial dispute, the employer may, in accordance with the standing orders

applicable to a workman concerned in such dispute ] [or, where there are no such standing orders, in

accordance with the terms of the contract, whether express or implied, between him and the workman] (a)[

alter, in regard to any matter not connected with the dispute, the conditions of service applicable to that

workman immediately before the commencement of such proceeding; or (b) for any misconduct not connected

with the dispute, discharge or punish, whether by dismissal or otherwise, that workman: Provided that no such

workman shall be discharged or dismissed, unless he has been paid wages for one month and an application

has been made by the employer to the authority before which the proceeding is pending for approval of the

action taken by the employer. (3)Notwithstanding anything contained in sub-section (2), no employer shall,

during the pendency of any such proceeding in respect of an industrial dispute, take any action against any

protected workman concerned in such dispute (a) by altering, to the prejudice of such protected workman, the

conditions of service applicable to him immediately before the commencement of such proceedings; or (b) by

discharging or punishing, whether by dismissal or otherwise, such protected workman, save with the express

permission in writing of the authority before which the proceeding is pending. Explanation:-For the purposes

of this sub-section, a "protected workman ", in relation to an establishment, means a workman who, being] [a

member of the executive or other office bearer] [of a registered trade union connected with the establishment,

is recognised as such in accordance with rules made in this behalf.(4)In every establishment, the number of

workmen to be recognised as protected workmen for the purposes of sub-section (3) shall be one per cent. of

the total number of workmen employed therein subject to a minimum number of five protected workmen and a

maximum number of one hundred protected workmen and for the aforesaid purpose, the appropriate

Government may make rules providing for the distribution of such protected workmen among various trade

unions, if any, connected with the establishment and the manner in which the workmen may be chosen and

recognised as protected workmen.(5)Where an employer makes an application to a conciliation officer, Board,

] [an arbitrator, a] [Labour Court, Tribunal or National Tribunal under the proviso to sub-section (2) for

approval of the action taken by him, the authority concerned shall, without delay, hear such application and

pass, ] [within a period of three months from the date of receipt of such application] [ Substituted by Act 46 of

1982, Section 17, for " as expeditiously as possible" (w.e.f. 21.8.1984).][, such order in relation thereto as it

deems fit:]. ][Provided that where any such authority considers it necessary or expedient so to do, it may, for

reasons to be recorded in writing, extend such period by such further period as it may think fit: Provided

further that no proceedings before any such authority shall lapse merely on the ground that any period

specified in this sub-section had expired without such proceedings being completed.]

11. Of course by enacting sec 33, the legislature wanted to ensure a fair and satisfactory enquiry of the

industrial dispute undisturbed by any action on the part of the employer or the employee likely to create fresh

cause for disharmony between them. The legislature visualized that during the pendency of the industrial dispute

status quo should be maintained and no further element of discord should be introduced between the employer

and the employee. The objective of the provision of sec 33 is to put a ban on the prerogative of the employer in

altering the service condition of the employee pending enquiry of the industrial dispute raised by them. The

primary principle is that if an Industrial Dispute is raised by a group of workmen acting on their own through

their union, the general conclusion is that the all those who sponsored the dispute are concerned in it. However

the very factum of raising an Industrial Dispute and pendency of such a dispute in a court of law by an individual

employee or a group of employees by itself does not lead to the inference that such an individual who alleges

retrenchment from services was a workman in continuous service under the employer, unless proved by concrete

evidence. Indeed, Sec 33A stands to the rescue of a workman who alleges alteration or cessation of service by

the employer during the pendency of an Industrial Dispute. A regular workman / employee or a casual employee

on a continuing basis under an employer who files a complaint u/s 33A certainly stands on a different footing

than the one who claims continuity of service as a casual labourer and whose claim is not accepted by the

employer.

12. The case on hand portrays the scenario the employer disowns and denies the complainant as its regular

daily wager. The alleged retrenchment of service dated 21.03.2015 averred by the complainant is not accepted or

recognized by the Oppose Party in the given case. The definite stand of the opposite party is that the complainant

had been engaged very occasionally and intermittently on need basis to attend menial works like sweeping,

cleaning etc. without touching the routine works in the office. The complainant per contra very particularly

pleaded that apart from cleaning in and around the bank office, he was entrusted with the task of assisting

customers in making challans for cash / cheque, deposits taking and keeping cash in double lock, writing

registers, collecting cash from other banks from the cheques drawn on them, printing passbooks, deposit receipts,

writing loan papers, making deposit mobilization, bundling payment slips and day book and such so many tasks.

However according to the opposite party all the above works are the routine tasks of the regular employees and

not of such casual workers engaged for attending menial jobs. Thus the factual pleadings of the complainant

indicate that his engagement in the opposite party bank was not to attend menial labour alone but higher tasks as

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

79

well, as mentioned above. It is while attending such highly responsible tasks in his so called status as MCS /

Office assistant (multipurpose) / sub-staff at the Kolar office of the opposite party continuously since 01.08.1992

that the opposite party has terminated / retrenched his services on 21.03.2015. This factum also the opposite

party has emphatically opposed and disputed. According to the opposite party, no such retrenchment or

termination has ever occurred nor was there any occasion for that as the bank had not engaged the complainant

in such a position at all in work continuously. In this factual background it is the primary duty of the complainant

to substantiate that his very entry in the bank was on 01.08.1992 and he continued to perform services in the

opposite party bank without any break till 21.03.2015. The complainant is equally obliged to prove that he was

disengaged from a continuous service on 21.03.2015. Inability to offer menial job on a particular date when there

was no requirement to engage a casual labourer to attend such work pleaded by the opposite party does oblige

the complainant to substantiate his specific case by adducing reliable and concrete material evidence establishing

all the aspects pleaded by him in the complaint. The mere pleading raised by him regarding the prevalence /

pendency of an Industrial Dispute and the so called termination or retrenchment of services on 21.03.2015

without bringing home any iota of evidence substantiating the above plea does not bind this Tribunal to accept

the case set forth by him as gospel truth and to draw a finding against the opposite party.

13. It is the settled position of law that u/s 33A of the Industrial Disputes Act, the complainant carries the

initial burden / onus to prove that the employer contravened sec 33 of the Act and such contravention occurred

during the pendency of a dispute, by presenting the facts supported by evidence. Once the complainant

discharges his initial burden to establish that he is an employee in continuous service within the parameters of

sec 33 of the Act and such contravention occurred as pleaded and proved, the employer must then justify their

actions especially concerning alleged dismissal / retrenchment / termination, often leading to the tribunal

deciding if the action was fair and just like any other Industrial Dispute.

14. Here in the given case, the one and only aspect accepted and admitted by the opposite party is the pendency

of CR 22/2013 raised by the Daily Workers Union. That by itself does not discharge the onus of proof cast on the

complainant to prima facie establish its case. The alleged contravention of service conditions or an illegal

cessation of the service of an employee by the employer is not an aspect to be simply inferred by the Tribunal

out of nothing but to be very precisely, meticulously and scrupulously proved and established by the aggrieved

complainant.

15. Sec 33A is designed to provide an instant remedy to a workman aggrieved by the contravention of sec 33

by filing a complaint before adjudicatory authorities or conciliatory authorities. It is trite that where such a

complaint is made to an adjudicatory authority viz. Labour Court / Tribunal, it will adjudicate upon the dispute

as if it is a dispute referred to or pending before it, so that the workman is saved of the botheration of moving the

Government for referring this dispute for adjudication.

16. The basic question to be considered by this Tribunal in the complaint on hand u/s 33A is whether there has

been a contravention by the employer of the provisions of sec 33 and in the event it is found that there has been a

contravention of the provisions, then to embark upon the exercise to adjudicate about the matter so complained

of in the complaint on its merit. No written order of termination / retrenchment is produced by the complainant to

justify his pleadings. Of course, he averred in the complaint that the termination issued by the opposite party was

only oral. If that be so, it should be proved by the complainant that he was in continuous service under the

opposite party and was subjected for a termination / retrenchment on an oral order by facing trial. Going by the

proceedings underwent in the given case, it is clear that the complainant himself has done away with and

discarded that part of his examination in chief once tendered on record thereby getting the same struck off from

record. So in effect, no reliable evidence is forthcoming from his side to substantiate his case of continuous

service under the opposite party from 01.08.1992 to 21.03.2015.

17. In fact, as per law, before giving any relief to the aggrieved employee under the section, the authority viz.,

this Tribunal has first to determine that the employee was continuously working under the employer and the

latter had surreptitiously kicked out him from the job without complying with the mandate u/s 33 of the Act.

Hence a contravention of sec 33 is the foundation for exercise of the power u/s 33A of the Act. As already

observed and as rightly pointed out by the learned counsel for the opposite party, no reliable proof / evidence is

brought on record by the complainant to substantiate that there is contravention of provisions of sec 33 of the Act

from the side of the opposite party.

18. In the event if the alleged factum of infraction from the provision of sec 33 is established, the matter has to

be very meticulously adjudicated on merit to examine whether the complainant is entitled to get an order of

reinstatement. It is trite that even when contravention of sec 33 is established, that does not automatically lead to

an order for reinstatement. So, at large, the complainant is at the task to prove and establish the primary elements

viz., his status as a daily wage employee under the opposite party coupled with contravention of the provisions of

sec 33 by the latter and then his eventual right to get reinstatement to service with equivalent benefits.

Determination of all these issues by the legal forum could be possible only when reliable evidence is adduced by

the complainant by offering himself for searching cross examination by the opposite party in a full-fledged trial.

80

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

It is trite that the initial burden lies on the employee to prove that he falls under the definition of a ―workman‖

under the Industrial Disputes Act. If the employee presents a strong prima facie case, the management must then

provide evidence to rebut it. Of course, the evidence to be adduced by the person claiming to be an employee

must be substantial, often a preponderance of evidence depending on the claim. It is no longer res-integra that the

burden of proving the employer-employee relationship primarily rest upon the person who asserts its existence.

In a situation where a person asserts to be an employee of the management which the management denies, the

duty primarily rests upon the person so asserting to give positive evidence in his favour and discharge his initial

burden. At the risk of repetition I say, once such a person has given such a positive evidence in his favour, only

then the burden would shift on the management to give evidence to counter such claims, because it is always

possible to prove positive facts than a negative. The Hon'ble Supreme Court in Workman of Nilgiri Co-Op

Mkt Society LTD vs. State of Tamil Nadu (AIR 2004 SC 1639) held that it is a well settled principle of law

that the person who is setting up a plea of existence of relationship of employer and employee, the burden would

be upon him. Similar view is adopted by the Hon'ble Supreme Court in Bank of Baroda vs. Ghemarabhai

Harijibhai Rabari (2005 (10) SCC 792). The complainant herein kept aloof from trial feeling shy of an

intensive quiz in the witness box. Probably, the complainant might have been misled, misguided or mal-advised

not to mount the witness box so as to avoid probable inconvenience of a grilling cross-examination. The net

result of such willful avoidance of requisite procedure by the complainant either by himself or as instilled upon

him is complete failure of the case projected by him.

19. Extensive argument is advanced on behalf of the complainant with the aid of plethora of legal authorities

canvassing for a favorable order of reinstatement with full back wages, continuity of service with regularization

and ancillary benefits from 21.03.2015. As could be heard from Learned Counsel for the opposite party, all these

wider reliefs sought for by the complainant are the main reliefs claimed in the said case CR 22/2013. By

consciously avoiding to give oral or documentary evidence in this case, what is craved for on behalf of the

complainant is to grant the above reliefs even without facing a trial. Granting such reliefs in his favour without

providing / supplementing any sort of evidentiary support would tantamount to prejudging the issue raised in the

Industrial Dispute case CR 22/2013 in a very shortcut method.

20. Argument is advanced on behalf of the complainant placing reliance upon the verdicts of the Hon'ble High

Court of Gujarat in Gujarat State Electricity Corporation LTD vs. Bhimrao Aagete (LPA 177 / 2016 dated

06.03.2018), Kalavatiben Prabhakar Patil and others vs. Managing Director (C/SCA/3189/2020 dated

17.01.2022) that while deciding a complaint u/s 33A it is not obligatory for the workman to prove that he had

worked for 240 days. Those rulings in fact do not indicate that the complainant is not at all under obligation to

substantiate his basic status under the opposite party to justify the case put forth.

21. In the peculiar facts and circumstances of the case and the very casual manner in which it is manned by the

complainant, the plethora of rulings relied upon by him viz., Hindustan Lever LTD vs. Ram Mohan Roy and

others (AIR 1973 SC 1156) by the Hon'ble Apex Court, Management of Karur Vysya Bank LTD vs.

Presiding Officer, Industrial Tribunal (2007 II LLJ 459) by the Hon'ble High Court of Madras, M M

Narayana vs. KSRTC (AIR 2012 (4) KAR R 518) and Karan Kumar vs. Divisional Controller KSRTC

(WP 203333/2019 dated 13.07.2023) by the Hon'ble High Court of Karnataka and Deutsche Lufthansa AG vs.

Nayan Pahwa & others (2025 INSC 998) by the Hon'ble High Court of Delhi are not of any help to the

complainant as in all those cases non-compliance of the provisions by the respective employers are relating to

regular employees on its payroll. Among the cases noted above, the case of Karur Vysya Bank LTD, MM

Narayana and Karan Kumar are related to the actions initiated by the respective employers based on

misconduct / misdemeanor of the respective regular employees in respect of which approval applications were

not submitted by the employers. In Hindustan Lever’s case also, the complainants were the regular employees

of the employer establishment. In principle, the fact situations contained in the afore-quoted ruling do not have

any application to the case on hand.

22. Before concluding, it is worthy to pen down that in order to avail the relief provided u/s 33 of the Act,

firstly the aggrieved party should prove himself to be a workman within the definition of u/s 2(s) of the Industrial

Disputes Act and there exists employer-employee relationship between the contesting parties. In conclusion of

the afore-discussion, I find that the complainant has miserably failed in substantiating his own case. He equally

failed in refuting / negating the contentions raised by the opposite party that he is only a coolie engaged on need

and requirement basis without continuity and frequency and hence not governed by any rules and regulations of

the bank. So also the complainant further failed in successfully controverting the rival contentions of the

opposite party that there is no employee-employer relationship between himself and the opposite party or that he

was not engaged by the latter against a sanctioned post. The deliberate refusal, negligence or avoidance to prove

and establish a genuine and reliable case by tendering requisite evidence has led the complainant to face a total

failure in the given case and for an eventual dismissal of the complaint. With this view, these points are

answered accordingly.

23. Point No. 5:- In view of the findings on point no. 1 to 4, it is held that the complainant is not entitled for

any reliefs sought for in this complaint.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

81

24. Point no. 6:- In the result the following award is passed.

AWARD

The Complaint no. 02/2019 is dismissed.

(Dictated to LDC, transcribed by him, correct and signed by me on 6th January, 2026)

K P INDIRA, Presiding Officer

नई ददल्ली, 15 जनवरी, 2026

का.आ. 28.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj

ds izca/kr=] lac) fu;kstdksa vkSj muds deZdkjksa ds chp vuqca/k esa fufnZ’V औद्योजगक fookn esa

dsUnzh; ljdkj औद्योजगक vf/kdj.k@Je U;k;ky;

ds iapkV (a01/2017) izdkf”kr djrh gSA

[सं. एल-12025/01/2026-आई.आर.(बी-I)-20]

सलोनी, उप जनदेिक

New Delhi, the 15th January, 2026

S.O. 28.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref. 01/2017) of the Cent.Govt.Indus.Tribunal-cum-Labour Court

Bangalore as shown in the Annexure, in the industrial dispute between the management of Karnataka

Grameena Bank and their workmen.

[No. L-12025/01/2026- IR(B-I)-20]

SALONI, Dy. Director

ANNEXURE

BEFORE THE

CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT

DATED :

06th January 2026

PRESENT : Smt. K P INDIRA

Presiding Officer

Comp No. 01 / 2017

Appellant

Opposite Party

Sh. M A Mahesh,

S/o Aswathanarayana,

Malligurki – 561 207

Tal : Bagepalli

Dist: Chikkaballapur

The Chairman / General Manager,

Karnataka Grameena Bank,

Head Office,

Gandhi Nagar, Bellary

Appearance

Complainant

:M Rama Rao

Authorized Representative

Opposite Party : B C Prabhakar

Advocate

ORDER

1. This is a complaint filed by the complainant u/s 33A of the Industrial Disputes Act 1947 raising the

following contentions:-

The complainant was appointed by the opposite party in the post of MCS / Office Assistant (Multipurpose) /

Substaff at their Mittemari branch on 08.12.2008. He submitted application and documents and attended interview

for selection. Since then he worked continuously in the said branch till the date of his termination / retrenchment /

discharge / dismissal of his service on 29.05.2014. As a part of his job, he used to open the branch by collecting

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[PART II—SEC. 3(ii)]

keys from the Manager, cleaning the office, aiding the customers and the branch in various ways. In order to avoid

the extension of status and benefits of permanent workman to him, the Opposite Party directed the Mittemari

branch to debit his wages as coolie charges to the General ledger account without obtaining his signature on the

debit vouchers. The officials of the branch took his signature on the overleaf of coolie paid debit vouchers along

with the signatures of the branch officers while paying wages in cash to him. He was the only person doing the

work of the office attendant / messenger / sweeper / substaff / daily wager / MCS etc on coolie charges. The

Opposite Party was not marking attendance register for his work, not extended payment register to him, signing

debit vouchers for his wages by the officers of the bank and receiving amount by them and then paying the

amounts to him as wages, debiting the wages paid to him to General Charges Account instead of salary paid

account / Establishment charges, not issuing appointment orders or certificates for the services rendered by him in

the bank, refusal to pay wages applicable to messengers / housekeeping staff / sub staff / MCS to him, not

extending the service benefits applicable to permanent workman, taking work from him for years together as

Coolie by terming his wages as coolie charges practiced by the opposite party are all unfair labour practices under

the 5th Schedule of the ID Act 1947. The complainant along with other coolie workers of the opposite party bank

formed a union called Pragathi Grameena Bank Daily Wage Workers Union in 2012 and he was active in the

Union activities. The Union filed cases before the Central Labour Machinery for getting the benefits for the daily

wage workers of the Bank. This has caused annoyance to the then management against him. CR 22/2013 is

pending before this Tribunal in which the Union raised a dispute for regularization of services of the workmen

including him. He is directly connected with the said dispute raised by the said union. On 29.05.2014, the Branch

Manager Mr. Udaya Narayana Bhatt asked the complainant not to come for work as his services are terminated

abruptly without any reason and without issuing any notice to him or paying any retrenchment compensation. His

repeated requests to allow him to do work in the branch were not considered by the Branch Manager. The opposite

party has not filed any application before the appropriate Government seeking permission to retrench him u/s 25 N

of the ID Act 1947. Therefore, the retrenchment of his service is illegal, ab-initio void and he is deemed to be in

the services of the Bank as per sec 25 N(7) of the ID Act. As per the provision of Sec 33 of the ID Act, the

opposite party cannot alter or change the conditions of his service applicable to him immediately before the

commencement of the proceedings of C R 22/2013 to his prejudice , during the pendency of CR 22/2013 before

this Tribunal without the expressed permission in writing from the tribunal and also shall not discharge / dismiss /

terminate / retrench him unless he was paid wages for one month and without making an application for approval

of the action so taken. The opposite party has not observed any of the provisions of the ID Act 1947 and has not

filed any application before the Tribunal. The action of the opposite party is against the provisions of the ID Act,

principles of natural justice, illegal, null and void. The opposite party was paying him wages @ Rs. 7100/- per

month. The opposite party has not paid any wages to him since the retrenchment of his services. Since the

opposite party has not filed any application before the Tribunal seeking approval of their action, he is entitled for

payment of full wages drawn by him every month till the disposal of this case. Since the opposite party has not

filed any application before the appropriate government for the termination of his services, not issued any copy of

such application to him nor any notice / notice pay / compensation as required u/s 25 N of the ID Act, he is

deemed to be in service for the benefits as applicable to him prior to such cessation of his service and is entitled

for wages as per sec 25N (7) of the ID Act. Due to the illegal cessation of service imposed on him by the opposite

party, the complainant and his family are suffering economically and socially. Hence this complaint for declaring

the termination / retrenchment / discharge / dismissal of the complainant from 25.09.2014 is not in accordance

with the provisions of the ID Act 1947, against the principles of natural justice, arbitrary, unilateral, ill motivated

and illegal and to direct the opposite party to reinstate the complainant with full back wages, continuity of service

with regularization, ancillary benefits from 25.09.2014 and with cost.

2.

The opposite party filed statement of objection resisting the factual averments and relief sought in the

complaint. It is inter alia contended that the complaint is not maintainable either in law or on facts as there is no

contravention of the provision of Sec 33 of the ID Act. The opposite party by way of subsequent amalgamations

is now called as Karnataka Grameena Bank, the service conditions of the employees are governed by Pragathi

Grameena Bank (Officers and Employees) Service Regulations 2010. The bank used to engage services of the

workmen occasionally as and when necessitated for doing menial works in the branches when regular office

attendants remained absent or proceed on leave and for excess work. In order to meet the exigencies of the work,

the opposite party bank branches used to engage coolies only for few hours for such menial works like cleaning,

sweeping and watering and were paid coolie charges proportionately depending upon the number of hours they

worked. The complainant was also engaged similarly as a coolie intermittently and not continuously. Depending

upon the availability of the person in the locale, the Branch Manager engaged such person on need basis for such

works. As per the Government of India guidelines for appointment of Regular Attendants, the names should be

sponsored by the employment exchange and such engagement is also subject to the conditions stipulated in regard

to educational qualification, age etc. While engaging the coolies, no educational qualifications or age were looked

into and whoever is available would be engaged. The persons so engaged are at liberty to work elsewhere after

completion of the menial works entrusted to them. They are not governed by any rules and regulation of the bank

and there is no employee employer relationship as they have not been engaged by the bank against the post. As

there was no requirement at the branch concerned on 25.09.2014, the complainant was not engaged for work and

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

83

that cannot be said as refusal of work. The complainant thereafter stopped approaching bank for work. After lapse

of 3 years, he has filed this complaint alleging violation of the provisions of the sec 33 of the ID Act. The daily

workers union raised a dispute against the opposite party bank in CR 22/2013 claiming regularization of coolies

including the complainant. The complaint is not maintainable as there is no refusal of work or termination of the

services of the complainant. Considering the nature of the engagement of the complainant, it cannot be said that

his services came to be terminated or his non engagement on a particular day for want of work be treated as

refusal of work. The opposite party bank followed the procedures in respect of engagement and payment of the

daily wagers. In a case of casual employee, the concept of retrenchment is not attracted if the casual is not

engaged for want of work on a particular day. Therefore sec 25N of the ID Act referred to in the complaint is not

attracted. There is no violation of provisions of sec 33 as alleged. The question of filing approval application

arises only when the termination is for misconduct. In this case there is no termination of complainant or any

allegation of misconduct against him. Hence the question of filing approval application does not arise. The

averment that the complainant was paid the wages of Rs. 7100/- per month is not correct. He was paid wages by

calculating the number of days of his engagement. The averment that there is cessation of service by the opposite

party is not correct. It is the complainant who stopped approaching the bank for work. Hence it is not open for him

to contend that he and his family members are suffering. The complainant is thus not entitled for any of the reliefs

prayed for and hence the opposite party sought for rejecting the complaint.

3.

From the above rival pleadings, following points arise for consideration:-

1. Whether the complaint is legally and factually maintainable?

2. Whether the Complainant is proved to have been working continuously in the opposite party

establishment since 08.12.2008?

3. Whether the complainant is proved to have been discharged / terminated / retrenched / dismissed

from service as contended by him?

4. Whether the alleged contravention of the provision of sec 33 of the ID Act is proved by the

complainant?

5. Whether the complainant is entitled to get reinstatement to the service with full back wages,

continuity of service and ancillary benefits from 25.09.2014 as prayed for?

6. What is the proper Order and Award to be passed in this complaint case?

4.

Either of the parties did not prefer to adduce any evidence in the matter.

5.

Heard the oral and written arguments submitted from both sides.

6.

Points no. 1 to 4:- Since all these points are closely integrated and inter-twined, all these points are

discussed together. Alleging contravention of the provisions of sec 33 of the ID Act 1947, the complainant filed

the instant complaint u/s 33A of the Act on the factual averment that the opposite party has not filed any

application before this Tribunal seeking permission for retrenching / terminating / dismissing him on 25.09.2014

and not filing any application for approval of their said action. The complainant‘s case is that he was appointed by

the opposite party bank at their Mittemari branch on 08.12.2008 on submission of application and subjecting him

for interview and on obtaining documents from him. He claims that since then he has worked continuously in the

said branch on all working days. It is his further case that to his surprise, without giving any prior notice or

without assigning any reason, he was asked on 25.09.2014 not to come for work and his services are terminated.

The complainant inter alia pleaded that he is an active member in a Union under the name and style Pragathi

Grameena Bank Daily Wage Workers Union formed between himself with other coolie workers of the opposite

party bank. The said union has raised a dispute for regularization of the service of the complainant and other

similarly placed coolie before the Central Government Machinery and the same is registered and pending before

this Tribunal as CR 22/2013. It is the case of the complainant that he is directly connected with the said dispute

raised by the Union pending before this Tribunal. The disengagement of job on 25.09.2014 according to the

complainant tantamounts to contravention of the provisions of sec 33 of the ID Act as according to him it

happened when the industrial dispute raised by the union for and on behalf of him and the other coolie workers

was pending adjudication. This gave way for filing this complaint u/s 33A of the ID Act.

7.

Oral and written arguments are advanced on behalf of the complainant narrating all these events by his

authorized representative.

8.

The learned counsel for the opposite party per contra put forth his rival submission that the complainant has

never ever rendered any continuous service in the opposite party bank. Instead the bank was in the practice of

engaging persons from the locale for attending menial job like sweeping, cleaning and watering when the regular

employees are absent or proceed on leave and such persons were paid coolie charges for the same. According to

the opposite party, the complainant was also so casually engaged depending on the requirement of the branch as a

coolie for doing menial works and such works carried out by him was not regular in nature, but only on need

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[PART II—SEC. 3(ii)]

basis. To put it differently, according to the opposite party the engagement of the complainant was not continuous

and it was only intermittent.

9.

Of course, the event of non-engagement for work said to have happened on 25.09.2014 is apparently during

the pendency of CR 22/2013. However the complainant did not prefer to bring home any proof that he was in

service in the opposite party bank even on the previous day or anytime there-before in a constant and continuous

stretch so as to establish the retrenchment / dismissal / discharge / termination alleged in the complaint. Here it is

contextually profitable to quote Sec 33 of the Act:

33. [ Conditions of service, etc., to remain unchanged under certain circumstances during pendency of

proceedings. ]

(1)During the pendency of any conciliation proceeding before a conciliation officer or a Board or of any

proceeding before ][an arbitrator or] [a Labour Court or Tribunal or National Tribunal in respect of an

industrial dispute, no employer shall- (a)in regard to any matter connected with the dispute, alter, to the

prejudice of the workmen concerned in such dispute, the conditions of service applicable to them immediately

before the commencement of such proceeding; or (b)for any misconduct connected with the dispute, discharge

or punish, whether by dismissal or otherwise, any workmen concerned in such dispute, ave with the express

permission in writing of the authority before which the proceeding is pending.(2)During the pendency of any

such proceeding in respect of an industrial dispute, the employer may, in accordance with the standing orders

applicable to a workman concerned in such dispute ] [or, where there are no such standing orders, in

accordance with the terms of the contract, whether express or implied, between him and the workman] (a)[

alter, in regard to any matter not connected with the dispute, the conditions of service applicable to that

workman immediately before the commencement of such proceeding; or (b) for any misconduct not connected

with the dispute, discharge or punish, whether by dismissal or otherwise, that workman: Provided that no such

workman shall be discharged or dismissed, unless he has been paid wages for one month and an application has

been made by the employer to the authority before which the proceeding is pending for approval of the action

taken by the employer. (3)Notwithstanding anything contained in sub-section (2), no employer shall, during the

pendency of any such proceeding in respect of an industrial dispute, take any action against any protected

workman concerned in such dispute (a) by altering, to the prejudice of such protected workman, the conditions

of service applicable to him immediately before the commencement of such proceedings; or (b) by discharging

or punishing, whether by dismissal or otherwise, such protected workman, save with the express permission in

writing of the authority before which the proceeding is pending. Explanation:-For the purposes of this sub-

section, a "protected workman ", in relation to an establishment, means a workman who, being] [a member of

the executive or other office bearer] [of a registered trade union connected with the establishment, is recognised

as such in accordance with rules made in this behalf.(4)In every establishment, the number of workmen to be

recognised as protected workmen for the purposes of sub-section (3) shall be one per cent. of the total number of

workmen employed therein subject to a minimum number of five protected workmen and a maximum number of

one hundred protected workmen and for the aforesaid purpose, the appropriate Government may make rules

providing for the distribution of such protected workmen among various trade unions, if any, connected with the

establishment and the manner in which the workmen may be chosen and recognised as protected

workmen.(5)Where an employer makes an application to a conciliation officer, Board, ] [an arbitrator,

a] [Labour Court, Tribunal or National Tribunal under the proviso to sub-section (2) for approval of the action

taken by him, the authority concerned shall, without delay, hear such application and pass, ] [within a period of

three months from the date of receipt of such application] [ Substituted by Act 46 of 1982, Section 17, for " as

expeditiously as possible" (w.e.f. 21.8.1984).][, such order in relation thereto as it deems fit:]. ][Provided that

where any such authority considers it necessary or expedient so to do, it may, for reasons to be recorded in

writing, extend such period by such further period as it may think fit: Provided further that no proceedings

before any such authority shall lapse merely on the ground that any period specified in this sub-section had

expired without such proceedings being completed.]

10. Of course by enacting sec 33, the legislature wanted to ensure a fair and satisfactory enquiry of the industrial

dispute undisturbed by any action on the part of the employer or the employee likely to create fresh cause for

disharmony between them. The legislature visualized that during the pendency of the industrial dispute status quo

should be maintained and no further element of discord should be introduced between the employer and the

employee. The objective of the provision of sec 33 is to put a ban on the prerogative of the employer in altering

the service condition of the employee pending enquiry of the industrial dispute raised by them. The primary

principle is that if an Industrial Dispute is raised by a group of workmen acting on their own through their union,

the general conclusion is that the all those who sponsored the dispute are concerned in it. However the very

factum of raising an Industrial Dispute and pendency of such a dispute in a court of law by an individual employee

or a group of employees by itself does not lead to the inference that such an individual who alleges retrenchment

from services was a workman in continuous service under the employer, unless proved by concrete evidence.

Indeed, Sec 33A stands to the rescue of a workman who alleges alteration or cessation of service by the employer

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

85

during the pendency of an Industrial Dispute. A regular workman / employee or a casual employee on a

continuing basis under an employer who files a complaint u/s 33A certainly stands on a different footing than the

one who claims continuity of service as a casual labourer and whose claim is not accepted by the employer.

11. The case on hand portrays the scenario the employer disowns and denies the complainant as its regular daily

wager. The alleged retrenchment of service dated 25.09.2014 averred by the complainant is not accepted or

recognized by the Oppose Party in the given case. The definite stand of the opposite party is that the complainant

had been engaged very occasionally and intermittently on need basis to attend menial works like sweeping,

cleaning etc. without touching the routine works in the office. The complainant per contra very particularly

pleaded that apart from cleaning in and around the bank office, he was entrusted with the task of assisting

customers in making challans for cash / cheque, deposits taking and keeping cash in double lock, writing registers,

collecting cash from other banks from the cheques drawn on them, printing passbooks, deposit receipts, writing

loan papers, making deposit mobilization, bundling payment slips and day book and such so many tasks. However

according to the opposite party all the above works are the routine tasks of the regular employees and not of such

casual workers engaged for attending menial jobs. Thus the factual pleadings of the complainant indicate that his

engagement in the opposite party bank was not to attend menial labour alone but higher tasks as well, as

mentioned above. It is while attending such highly responsible tasks in his so called status as MCS / Office

assistant (multipurpose) / sub-staff at the Mittemari branch of the opposite party continuously since 08.12.2008

that the opposite party has terminated / retrenched his services on 25.09.2014. This factum also the opposite party

has emphatically opposed and disputed. According to the opposite party, no such retrenchment or termination has

ever occurred nor was there any occasion for that as the bank had not engaged the complainant in such a position

at all in work continuously. In this factual background it is the primary duty of the complainant to substantiate that

his very entry in the bank was on 08.10.2008 and he continued to perform services in the opposite party bank

without any break till 25.09.2014. The complainant is equally obliged to prove that he was disengaged from a

continuous service on 25.09.2014. Inability to offer menial job on a particular date when there was no requirement

to engage a casual labourer to attend such work pleaded by the opposite party does oblige the complainant to

substantiate his specific case by adducing reliable and concrete material evidence establishing all the aspects

pleaded by him in the complaint. The mere pleading raised by him regarding the prevalence / pendency of an

Industrial Dispute and the so called termination or retrenchment of services on 25.09.2014 without bringing home

any iota of evidence substantiating the above plea does not bind this Tribunal to accept the case set forth by him as

gospel truth and to draw a finding against the opposite party.

12. It is the settled position of law that u/s 33A of the Industrial Disputes Act, the complainant carries the initial

burden / onus to prove that the employer contravened sec 33 of the Act and such contravention occurred during

the pendency of a dispute, by presenting the facts supported by evidence. Once the complainant discharges his

initial burden to establish that he is an employee in continuous service within the parameters of sec 33 of the Act

and such contravention occurred as pleaded and proved, the employer must then justify their actions especially

concerning alleged dismissal / retrenchment / termination, often leading to the tribunal deciding if the action was

fair and just like any other Industrial Dispute.

13. Here in the given case, the one and only aspect accepted and admitted by the opposite party is the pendency

of CR 22/2013 raised by the Daily Workers Union. That by itself does not discharge the onus of proof cast on the

complainant to prima facie establish its case. The alleged contravention of service conditions or an illegal

cessation of the service of an employee by the employer is not an aspect to be simply inferred by the Tribunal out

of nothing but to be very precisely, meticulously and scrupulously proved and established by the aggrieved

complainant.

14. Sec 33A is designed to provide an instant remedy to a workman aggrieved by the contravention of sec 33 by

filing a complaint before adjudicatory authorities or conciliatory authorities. It is trite that where such a complaint

is made to an adjudicatory authority viz. Labour Court / Tribunal, it will adjudicate upon the dispute as if it is a

dispute referred to or pending before it, so that the workman is saved of the botheration of moving the

Government for referring this dispute for adjudication.

15. The basic question to be considered by this Tribunal in the complaint on hand u/s 33A is whether there has

been a contravention by the employer of the provisions of sec 33 and in the event it is found that there has been a

contravention of the provisions, then to embark upon the exercise to adjudicate about the matter so complained of

in the complaint on its merit. No written order of termination / retrenchment is produced by the complainant to

justify his pleadings. Of course, he averred in the complaint that the termination issued by the opposite party was

only oral. If that be so, it should be proved by the complainant that he was in continuous service under the

opposite party and was subjected for a termination / retrenchment on an oral order by mounting the witness box.

Going by the proceedings underwent in the given case, it is clear that once the statement of objection is filed by

the opposite party, the matter was posted for evidence of the complainant and on the repeated request of the

complainant, evidence / enquiry was postponed by my learned predecessor by not less than 5 occasions. Then at

the whimsical stand of the complainant it is made out that there is no need to adduce evidence and the matter be

posted for arguments. In fact, as per law, before giving any relief to the aggrieved employee under the section, the

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[PART II—SEC. 3(ii)]

authority viz., this Tribunal has first to determine that the employee was continuously working under the employer

and the latter had surreptitiously kicked out him from the job without complying with the mandate u/s 33 of the

Act. Hence a contravention of sec 33 is the foundation for exercise of the power u/s 33A of the Act. As already

observed and as rightly pointed out by the learned counsel for the opposite party, no reliable proof / evidence is

brought on record by the complainant to substantiate that there is contravention of provisions of sec 33 of the Act

from the side of the opposite party.

16. In the event if the alleged factum of infraction from the provision of sec 33 is established, the matter has to

be very meticulously adjudicated on merit to examine whether the complainant is entitled to get an order of

reinstatement. It is trite that even when contravention of sec 33 is established, that does not automatically lead to

an order for reinstatement. So, at large, the complainant is at the task to prove and establish the primary elements

viz., his status as a daily wage employee under the opposite party coupled with contravention of the provisions of

sec 33 by the latter and then his eventual right to get reinstatement to service with equivalent benefits.

Determination of all these issues by the legal forum could be possible only when reliable evidence is adduced by

the complainant by offering himself for searching cross examination by the opposite party in a full-fledged trial. It

is trite that the initial burden lies on the employee to prove that he falls under the definition of a ―workman‖ under

the Industrial Disputes Act. If the employee presents a strong prima facie case, the management must then provide

evidence to rebut it. Of course, the evidence to be adduced by the person claiming to be an employee must be

substantial, often a preponderance of evidence depending on the claim. It is no longer res-integra that the burden

of proving the employer-employee relationship primarily rest upon the person who asserts its existence. In a

situation where a person asserts to be an employee of the management which the management denies, the duty

primarily rests upon the person so asserting to give positive evidence in his favour and discharge his initial burden.

At the risk of repetition I say, once such a person has given such a positive evidence in his favour, only then the

burden would shift on the management to give evidence to counter such claims, because it is always possible to

prove positive facts than a negative. The Hon'ble Supreme Court in Workman of Nilgiri Co-Op Mkt Society

LTD vs. State of Tamil Nadu (AIR 2004 SC 1639) held that it is a well settled principle of law that the person

who is setting up a plea of existence of relationship of employer and employee, the burden would be upon him.

Similar view is adopted by the Hon'ble Supreme Court in Bank of Baroda vs. Ghemarabhai Harijibhai Rabari

(2005 (10) SCC 792). The complainant herein kept aloof from trial feeling shy of an intensive quiz in the witness

box. Probably, the complainant might have been misled, misguided or mal-advised not to mount the witness box

so as to avoid probable inconvenience of a grilling cross-examination. The net result of such willful avoidance of

requisite procedure by the complainant either by himself or as instilled upon him is complete failure of the case

projected by him.

17. Extensive argument is advanced on behalf of the complainant with the aid of plethora of legal authorities

canvassing for a favorable order of reinstatement with full back wages, continuity of service with regularization

and ancillary benefits from 25.09.2014. As could be heard from Learned Counsel for the opposite party, all these

wider reliefs sought for by the complainant are the main reliefs claimed in the said case CR 22/2013. By

consciously avoiding to give oral or documentary evidence in this case, what is craved for on behalf of the

complainant is to grant the above reliefs even without facing a trial. Granting such reliefs in his favour without

providing / supplementing any sort of evidentiary support would tantamount to prejudging the issue raised in the

Industrial Dispute case CR 22/2013 in a very shortcut method.

18. Argument is advanced on behalf of the complainant placing reliance upon the verdicts of the Hon'ble High

Court of Gujarat in Gujarat State Electricity Corporation LTD vs. Bhimrao Aagete (LPA 177 / 2016 dated

06.03.2018), Kalavatiben Prabhakar Patil and others vs. Managing Director (C/SCA/3189/2020 dated

17.01.2022) that while deciding a complaint u/s 33A it is not obligatory for the workman to prove that he had

worked for 240 days. Those rulings in fact do not indicate that the complainant is not at all under obligation to

substantiate his basic status under the opposite party to justify the case put forth.

19. In the peculiar facts and circumstances of the case and the very casual manner in which it is manned by the

complainant, the plethora of rulings relied upon by him viz., Hindustan Lever LTD vs. Ram Mohan Roy and

others (AIR 1973 SC 1156) by the Hon'ble Apex Court, Management of Karur Vysya Bank LTD vs.

Presiding Officer, Industrial Tribunal (2007 II LLJ 459) by the Hon'ble High Court of Madras, M M

Narayana vs. KSRTC (AIR 2012 (4) KAR R 518) and Karan Kumar vs. Divisional Controller KSRTC (WP

203333/2019 dated 13.07.2023) by the Hon'ble High Court of Karnataka and Deutsche Lufthansa AG vs. Nayan

Pahwa & others (2025 INSC 998) by the Hon'ble High Court of Delhi are not of any help to the complainant as

in all those cases non-compliance of the provisions by the respective employers are relating to regular employees

on its payroll. Among the cases noted above, the case of Karur Vysya Bank LTD, MM Narayana and Karan

Kumar are related to the actions initiated by the respective employers based on misconduct / misdemeanor of the

respective regular employees in respect of which approval applications were not submitted by the employers. In

Hindustan Lever’s case also, the complainants were the regular employees of the employer establishment. In

principle, the fact situations contained in the afore-quoted ruling do not have any application to the case on hand.

20. Before concluding, it is worthy to pen down that in order to avail the relief provided u/s 33 of the Act, firstly

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

87

the aggrieved party should prove himself to be a workman within the definition of u/s 2(s) of the Industrial

Disputes Act and there exists employer-employee relationship between the contesting parties. In conclusion of the

afore-discussion, I find that the complainant has miserably failed in substantiating his own case. He equally failed

in refuting / negating the contentions raised by the opposite party that he is only a coolie engaged on need and

requirement basis without continuity and frequency and hence not governed by any rules and regulations of the

bank. So also the complainant further failed in successfully controverting the rival contentions of the opposite

party that there is no employee-employer relationship between himself and the opposite party or that he was not

engaged by the latter against a sanctioned post. The deliberate refusal, negligence or avoidance to prove and

establish a genuine and reliable case by tendering requisite evidence has led the complainant to face a total failure

in the given case and for an eventual dismissal of the complaint. With this view, these points are answered

accordingly.

21. Point No. 5:- In view of the findings on point no. 1 to 4, it is held that the complainant is not entitled for any

reliefs sought for in this complaint.

22. Point no. 6:- In the result the following award is passed.

AWARD

The Complaint no. 01/2017 is dismissed.

(Dictated to LDC, transcribed by him, correct and signed by me on 6th January, 2026)

K P INDIRA, Presiding Officer

नई ददल्ली, 15 जनवरी, 2026

का.आ. 29.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj

ds izca/kr=] lac) fu;kstdksa vkSj muds deZdkjksa ds chp vuqca/k esa fufnZ’V औद्योजगक fookn esa

dsUnzh; ljdkj औद्योजगक vf/kdj.k@Je U;k;ky;

ds iapkV (a02/2017) izdkf”kr djrh gSA

[सं. एल-12025/01/2026-आई.आर.(बी-I)-21]

सलोनी, उप जनदेिक

New Delhi, the 15th January, 2026

S.O. 29.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref. 02/2017) of the Cent.Govt.Indus.Tribunal-cum-Labour Court

Bangalore as shown in the Annexure, in the industrial dispute between the management of Karnataka

Grameena Bank and their workmen.

[No. L-12025/01/2026- IR(B-I)-21]

SALONI, Dy. Director

ANNEXURE

BEFORE THE

CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT

DATED :

06th January 2026

PRESENT : Smt. K P INDIRA

Presiding Officer

Comp No. 02 / 2017

Appellant

Opposite Party

Sh. J Venkatareddy

S/o Jayaramareddy

Near Water Tank

Gaunavarapalli 563 124

The Chairman / General Manager,

Karnataka Grameena Bank,

Head Office,

Gandhi Nagar, Bellar

Appearance

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[PART II—SEC. 3(ii)]

Complainant

:

M Rama Rao

Authorized Representative

Opposite Party :

B C Prabhakar

Advocate

ORDER

1. This is a complaint filed by the complainant u/s 33A of the Industrial Disputes Act 1947 raising the

following contentions:-

The complainant was appointed by the opposite party in the post of MCS / Office Assistant

(Multipurpose) / Substaff at their Chelur branch on 09.03.2003 and he worked there for 3 months. Later, on

09.09.2008 the Branch Manager of Chelur Branch called him to the branch to work by taking application from

him, interviewing him and on taking documents. Since then he worked continuously in the said branch till the date

of his termination / retrenchment / discharge / dismissal of his service on 07.04.2013 and asked to work at

Chilakalanerup branch from 08.04.2013 and he worked in the said branch. Later on 04.09.2014 the Branch

Manager Mr. Prasad told him that since he filed a case for regularization of service against the Bank through his

union before this Tribunal, services of the complainant are being terminated and his services are thus terminated.

Again he was asked to report for work at Chelur Branch by the Branch Manager, Sh. B V Nagaraja, in December

2015 and the complainant reported for work at the said branch from 20.12.2015. In December 2016 the Branch

Manager raised an allegation against the complainant that he has stolen a cheque leaf and forged a signature of the

customer Sh. Reddappa and filled up the cheque and tried to encash the same. On that allegation, the Branch

Manager Mr. B V Nagaraja, dismissed the service es of the complainant on 12.12.2016. The Branch Manager also

filed a police complaint against the complainant whereon a criminal case was registered against him. Later based

on the statement of customer Sh., Reddappa that he had sent the cheque for collection through the complainant,

the complaint was dismissed. As a part of his job, he used to open the branch by collecting keys from the

Manager, cleaning the office, aiding the customers and the branch in various ways. In order to avoid the extension

of status and benefits of permanent workman to him, the Opposite Party directed the Chelur and Chilakalanerup

branch to debit his wages as coolie charges to the General ledger account without obtaining his signature on the

debit vouchers. The officials of the branches took his signature on the overleaf of coolie paid debit vouchers along

with the signatures of the branch officers while paying wages in cash to him. He was the only person doing the

work of the office attendant / messenger / sweeper / substaff / daily wager / MCS etc on coolie charges. The

Opposite Party was not marking attendance register for his work, not extended payment register to him, signing

debit vouchers for his wages by the officers of the bank and receiving amount by them and then paying the

amounts to him as coolie charges, debiting the wages paid to him to General Ledger Account of the Bank instead

of salary paid account / Establishment charges, not issuing appointment orders or certificates for the services

rendered by him in the bank, refusal to pay wages applicable to messengers / housekeeping staff / sub staff / MCS

to him, not extending the service benefits applicable to permanent workman, taking work from him for years

together as Coolie by terming his wages as coolie charges practiced by the opposite party are all unfair labour

practices under the 5th Schedule of the ID Act 1947. The complainant along with other coolie workers of the

opposite party bank formed a union called Pragathi Grameena Bank Daily Wage Workers Union in 2012 and he

was active in the Union activities. The Union filed cases before the Central Labour Machinery for getting the

benefits for the daily wage workers of the Bank. This has caused annoyance to the then management against him.

CR 22/2013 is pending before this Tribunal in which the Union raised a dispute for regularization of services of

the workmen including him. He is directly connected with the said dispute raised by the said union. On

04.09.2014, the Branch Manager asked the complainant not to come for work as his services are terminated

abruptly without any reason and without issuing any notice to him or paying any retrenchment compensation,

without following the principles of natural justice. His repeated requests to allow him to do work in the branch

were not considered by the Branch Manager. The opposite party has not filed any application before the

appropriate Government seeking permission to retrench him u/s 25 N of the ID Act 1947 nor filed any application

before this Tribunal for approval of their action in dismissing / discharging / terminating / retrenching his services

from 12.12.2016. Therefore, the retrenchment of his service is illegal, ab-initio void and he is deemed to be in the

services of the Bank as per sec 25 N(7) of the ID Act. As per the provision of Sec 33 of the ID Act, the opposite

party cannot alter or change the conditions of his service applicable to him immediately before the commencement

of the proceedings of C R 22/2013 to his prejudice, during the pendency of CR 22/2013 before this Tribunal

without the expressed permission in writing from the tribunal and also shall not discharge / dismiss / terminate /

retrench him unless he was paid wages for one month and without making an application for approval of the

action so taken. The opposite party has not complied with any of the provisions of the ID Act 1947 in terminating

his services. The opposite party was paying him wages @ Rs. 6500/- per month. The opposite party has not paid

any wages to him since the retrenchment of his services. Since the opposite party has not filed any application

before the Tribunal seeking approval of their action, he is entitled for payment of full wages drawn by him every

month till the disposal of this case. He is entitled for wages as per sec 25N (7) of the ID Act. Due to the illegal

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

89

cessation of service imposed on him by the opposite party, the complainant and his family are suffering

economically and socially. Hence this complaint for declaring the termination / retrenchment / discharge /

dismissal of the complainant from 12.12.2016 is not in accordance with the provisions of the ID Act 1947, against

the principles of natural justice, arbitrary, unilateral, ill motivated and illegal and to direct the opposite party to

reinstate the complainant with full back wages, continuity of service with regularization, ancillary benefits from

12.12.2016 and with cost.

2.

The opposite party filed statement of objection resisting the factual averments and relief sought in the

complaint. It is inter alia contended that the complaint is not maintainable either in law or on facts as there is no

contravention of the provision of Sec 33 of the ID Act. The opposite party by way of subsequent amalgamations

is now called as Karnataka Grameena Bank. The service conditions of the employees are governed by Pragathi

Grameena Bank (Officers and Employees) Service Regulations 2010. The bank used to engage services of the

workmen occasionally as and when necessitated for doing menial works in the branches when regular office

attendants remained absent or proceed on leave and for excess work. In order to meet the exigencies of the work,

the opposite party bank branches used to engage coolies only for few hours for such menial works like cleaning,

sweeping and watering and were paid coolie charges proportionately depending upon the number of hours they

worked. The complainant was also engaged similarly as a coolie intermittently and not continuously. Depending

upon the availability of the person in the locale, the Branch Manager engaged such person on need basis for such

works. As per the Government of India guidelines for appointment of Regular Attendants, the names should be

sponsored by the Employment Exchange and such engagement is also subject to the conditions stipulated in

regard to educational qualification, age etc. While engaging the coolies, no educational qualifications or age were

looked into and whoever is available would be engaged. The persons so engaged are at liberty to work elsewhere

after completion of the menial works entrusted to them. They are not governed by any rules and regulation of the

bank and there is no employee employer relationship as they have not been engaged by the bank against the post.

There was no requirement at Chilakalanerup branch on 04.09.2014 and he was not engaged for work on that day

and that cannot be said as refusal of work. The complainant thereafter stopped approaching bank for work. After

lapse of 3 years, he has filed this complaint alleging violation of the provisions of the sec 33 of the ID Act. The

daily workers union raised a dispute against the opposite party bank in CR 22/2013 claiming regularization of

coolies including the complainant. The complaint is not maintainable as there is no refusal of work or termination

of the services of the complainant. He might have approached the Chelur branch on 20.12.2015 and would have

been engaged based on requirement. His averment about alleged stealing of a cheque leaf and lodging of police

complaint and alleged termination on 12.12.2016 are incorrect. On 12.12.2016 he was engaged as there was no

requirement. Non engagement of the complainant on 12.12.2016 also cannot be characterized as refusal of work or

termination of his services. The opposite party bank followed the procedures in respect of engagement of and

payment to the daily wagers. In a case of casual employee, the concept of retrenchment is not attracted if the

casual is not engaged for want of work on a particular day. Therefore sec 25N of the ID Act referred to in the

complaint is not attracted. There is no violation of provisions of sec 33 as alleged. The question of filing approval

application arises only when the termination is for misconduct. In this case there is no termination of complainant

or any allegation of misconduct against him. Hence the question of filing approval application does not arise. The

averment that the complainant was paid wages of Rs. 6500/- per month is not correct. He was paid wages by

calculating the number of days of his engagement. The averment that there is cessation of service by the opposite

party is not correct. It is the complainant who stopped approaching the bank for work. Hence it is not open for him

to contend that he and his family members are suffering. The complainant is thus not entitled for any of the reliefs

prayed for and hence the opposite party sought for rejecting the complaint.

3.

From the above rival pleadings, following points arise for consideration:-

1.

Whether the complaint is legally and factually maintainable?

2. Whether the Complainant is proved to have been working continuously in the opposite party

establishment since 20.12.2015?

3. Whether the complainant is proved to have been discharged / terminated / retrenched / dismissed

from service on 12.12.2016 as contended by him?

4. Whether the alleged contravention of the provision of sec 33 of the ID Act is proved by the

complainant?

5. Whether the complainant is entitled to get reinstatement to the service with full back wages,

continuity of service and ancillary benefits from 12.12.2016 as prayed for?

6. What is the proper Order and Award to be passed in this complaint case?

4.

Either of the parties did not prefer to adduce any evidence in the matter.

5.

Heard the oral and written arguments submitted from both sides.

6.

Points no. 1 to 4:- Since all these points are closely integrated and inter-twined, all these points are

discussed together. Alleging contravention of the provisions of sec 33 of the ID Act 1947, the complainant filed

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THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

the instant complaint u/s 33A of the Act on the factual averment that the opposite party has not filed any

application before this Tribunal seeking permission for retrenching / terminating / dismissing him on 12.12.2016

and not filing any application for approval of their said action. The complainant‘s case is that he was appointed by

the opposite party bank at their Chelur branch continuously from 20.12.2015. He claims that since then he has

worked continuously in the said branch on all working days. It is his further case that to his surprise, without

giving any prior notice or without assigning any reason, he was asked on 12.12.2016 not to come for work and his

services are terminated. The complainant inter alia pleaded that he is an active member in a Union under the name

and style Pragathi Grameena Bank Daily Wage Workers Union formed between himself with other coolie workers

of the opposite party bank. The said union has raised a dispute for regularization of the service of the complainant

and other similarly placed coolie before the Central Government Machinery and the same is registered and

pending before this Tribunal as CR 22/2013. It is the case of the complainant that he is directly connected with the

said dispute raised by the Union pending before this Tribunal. The disengagement of job on 12.12.2016 according

to the complainant tantamount to contravention of the provisions of sec 33 of the ID Act as according to him it

happened when the industrial dispute raised by the union for and on behalf of him and the other coolie workers

was pending adjudication. According to him the cause for his termination on 12.12.2016 is an alleged stealing and

forging of a cheque by him, which the opposite party specifically denied. This gave way for filing this complaint

u/s 33A of the ID Act.

7.

Oral and written arguments are advanced on behalf of the complainant narrating all these events by his

authorized representative.

8.

The learned counsel for the opposite party per contra put forth his rival submission that the complainant has

never ever rendered any continuous service in the opposite party bank. Instead the bank was in the practice of

engaging persons from the locale for attending menial job like sweeping, cleaning and watering when the regular

employees are absent or proceed on leave and such persons were paid coolie charges for the same. According to

the opposite party, the complainant was also so casually engaged depending on the requirement of the branch as a

coolie for doing menial works and such works carried out by him was not regular in nature, but only on need

basis. To put it differently, according to the opposite party the engagement of the complainant was not continuous

and it was only intermittent.

9.

Of course, the event of non-engagement for work said to have happened on 12.12.2016 is apparently during

the pendency of CR 22/2013. However the complainant did not prefer to bring home any proof that he was in

service in the opposite party bank even on the previous day or anytime there-before in a constant and continuous

stretch so as to establish the retrenchment / dismissal / discharge / termination alleged in the complaint. Here it is

contextually profitable to quote Sec 33 of the Act:

33. [ Conditions of service, etc., to remain unchanged under certain circumstances during pendency of

proceedings. ]

(1)During the pendency of any conciliation proceeding before a conciliation officer or a Board or of any

proceeding before ][an arbitrator or] [a Labour Court or Tribunal or National Tribunal in respect of an

industrial dispute, no employer shall- (a)in regard to any matter connected with the dispute, alter, to the

prejudice of the workmen concerned in such dispute, the conditions of service applicable to them immediately

before the commencement of such proceeding; or (b)for any misconduct connected with the dispute, discharge

or punish, whether by dismissal or otherwise, any workmen concerned in such dispute, ave with the express

permission in writing of the authority before which the proceeding is pending.(2)During the pendency of any

such proceeding in respect of an industrial dispute, the employer may, in accordance with the standing orders

applicable to a workman concerned in such dispute ] [or, where there are no such standing orders, in

accordance with the terms of the contract, whether express or implied, between him and the workman] (a)[

alter, in regard to any matter not connected with the dispute, the conditions of service applicable to that

workman immediately before the commencement of such proceeding; or (b) for any misconduct not connected

with the dispute, discharge or punish, whether by dismissal or otherwise, that workman: Provided that no such

workman shall be discharged or dismissed, unless he has been paid wages for one month and an application has

been made by the employer to the authority before which the proceeding is pending for approval of the action

taken by the employer. (3)Notwithstanding anything contained in sub-section (2), no employer shall, during the

pendency of any such proceeding in respect of an industrial dispute, take any action against any protected

workman concerned in such dispute (a) by altering, to the prejudice of such protected workman, the conditions

of service applicable to him immediately before the commencement of such proceedings; or (b) by discharging

or punishing, whether by dismissal or otherwise, such protected workman, save with the express permission in

writing of the authority before which the proceeding is pending. Explanation:-For the purposes of this sub-

section, a "protected workman ", in relation to an establishment, means a workman who, being] [a member of

the executive or other office bearer] [of a registered trade union connected with the establishment, is recognised

as such in accordance with rules made in this behalf.(4)In every establishment, the number of workmen to be

recognised as protected workmen for the purposes of sub-section (3) shall be one per cent. of the total number of

workmen employed therein subject to a minimum number of five protected workmen and a maximum number of

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

91

one hundred protected workmen and for the aforesaid purpose, the appropriate Government may make rules

providing for the distribution of such protected workmen among various trade unions, if any, connected with the

establishment and the manner in which the workmen may be chosen and recognised as protected

workmen.(5)Where an employer makes an application to a conciliation officer, Board, ] [an arbitrator,

a] [Labour Court, Tribunal or National Tribunal under the proviso to sub-section (2) for approval of the action

taken by him, the authority concerned shall, without delay, hear such application and pass, ] [within a period of

three months from the date of receipt of such application] [ Substituted by Act 46 of 1982, Section 17, for " as

expeditiously as possible" (w.e.f. 21.8.1984).][, such order in relation thereto as it deems fit:]. ][Provided that

where any such authority considers it necessary or expedient so to do, it may, for reasons to be recorded in

writing, extend such period by such further period as it may think fit: Provided further that no proceedings

before any such authority shall lapse merely on the ground that any period specified in this sub-section had

expired without such proceedings being completed.]

10. Of course by enacting sec 33, the legislature wanted to ensure a fair and satisfactory enquiry of the industrial

dispute undisturbed by any action on the part of the employer or the employee likely to create fresh cause for

disharmony between them. The legislature visualized that during the pendency of the industrial dispute status quo

should be maintained and no further element of discord should be introduced between the employer and the

employee. The objective of the provision of sec 33 is to put a ban on the prerogative of the employer in altering

the service condition of the employee pending enquiry of the industrial dispute raised by them. The primary

principle is that if an Industrial Dispute is raised by a group of workmen acting on their own through their union,

the general conclusion is that the all those who sponsored the dispute are concerned in it. However the very

factum of raising an Industrial Dispute and pendency of such a dispute in a court of law by an individual employee

or a group of employees by itself does not lead to the inference that such an individual who alleges retrenchment

from services was a workman in continuous service under the employer, unless proved by concrete evidence.

Indeed, Sec 33A stands to the rescue of a workman who alleges alteration or cessation of service by the employer

during the pendency of an Industrial Dispute. A regular workman / employee or a casual employee on a

continuing basis under an employer who files a complaint u/s 33A certainly stands on a different footing than the

one who claims continuity of service as a casual labourer and whose claim is not accepted by the employer.

11. The case on hand portrays the scenario the employer disowns and denies the complainant as its regular daily

wager. The alleged retrenchment of service dated 12.12.2016 averred by the complainant is not accepted or

recognized by the Oppose Party in the given case. The definite stand of the opposite party is that the complainant

had been engaged very occasionally and intermittently on need basis to attend menial works like sweeping,

cleaning etc. without touching the routine works in the office. The complainant per contra very particularly

pleaded that apart from cleaning in and around the bank office, he was entrusted with the task of assisting

customers in making challans for cash / cheque, deposits taking and keeping cash in double lock, writing registers,

collecting cash from other banks from the cheques drawn on them, printing passbooks, deposit receipts, writing

loan papers, making deposit mobilization, bundling payment slips and day book and such so many tasks. However

according to the opposite party all the above works are the routine tasks of the regular employees and not of such

casual workers engaged for attending menial jobs. Thus the factual pleadings of the complainant indicate that his

engagement in the opposite party bank was not to attend menial labour alone but higher tasks also, as mentioned

above. It is while attending such highly responsible tasks in his so called status as MCS / Office assistant

(multipurpose) / sub-staff at the Chelur branch of the opposite party continuously since 20.12.2015 that the

opposite party has terminated / retrenched his services on 12.12.2016. This factum also the opposite party has

emphatically opposed and disputed. According to the opposite party, no such retrenchment or termination has ever

occurred nor was there any occasion for that as the bank had not engaged the complainant in such a position at all

in work continuously. In this factual background it is the primary duty of the complainant to substantiate that his

very entry in the bank was on 09.03.2003 and he continued to perform services in the opposite party bank without

any break till 04.09.2014 and again got inducted on 20.12.2015 and continued upto 12.12.2016. The complainant

is obliged to prove that he was disengaged from a continuous service on 12.12.2016. Inability to offer menial job

on a particular date when there was no requirement to engage a casual labourer to attend such work pleaded by the

opposite party does oblige the complainant to substantiate his specific case by adducing reliable and concrete

material evidence establishing all the aspects pleaded by him in the complaint. The mere pleading raised by him

regarding the prevalence / pendency of an Industrial Dispute and the so called termination or retrenchment of

services on 12.12.2016 without bringing home any iota of evidence substantiating the above plea does not bind

this Tribunal to accept the case set forth by him as gospel truth and to draw a finding against the opposite party.

12. It is the settled position of law that u/s 33A of the Industrial Disputes Act, the complainant carries the initial

burden / onus to prove that the employer contravened sec 33 of the Act and such contravention occurred during

the pendency of a dispute, by presenting the facts supported by evidence. Once the complainant discharges his

initial burden to establish that he is an employee in continuous service within the parameters of sec 33 of the Act

and such contravention occurred as pleaded and proved, the employer must then justify their actions especially

concerning alleged dismissal / retrenchment / termination, often leading to the tribunal deciding, if the action was

fair and just like any other Industrial Dispute.

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[PART II—SEC. 3(ii)]

13. Here in the given case, the one and only aspect accepted and admitted by the opposite party is the pendency

of CR 22/2013 raised by the Daily Workers Union. That by itself does not discharge the onus of proof cast on the

complainant to prima facie establish its case. The alleged contravention of service conditions or an illegal

cessation of the service of an employee by the employer is not an aspect to be simply inferred by the Tribunal out

of nothing but to be very precisely, meticulously and scrupulously proved and established by the aggrieved

complainant.

14. Sec 33A is designed to provide an instant remedy to a workman aggrieved by the contravention of sec 33 by

filing a complaint before adjudicatory authorities or conciliatory authorities. It is trite that where such a complaint

is made to an adjudicatory authority viz. Labour Court / Tribunal, it will adjudicate upon the dispute as if it is a

dispute referred to or pending before it, so that the workman is saved of the botheration of moving the

Government for referring this dispute for adjudication.

15. The basic question to be considered by this Tribunal in the complaint on hand u/s 33A is whether there has

been a contravention by the employer of the provisions of sec 33 and in the event it is found that there has been a

contravention of the provisions, then to embark upon the exercise to adjudicate about the matter so complained of

in the complaint on its merit. No written order of termination / retrenchment is produced by the complainant to

justify his pleadings. Of course, he averred in the complaint that the termination issued by the opposite party was

only oral. If that be so, it should be proved by the complainant that he was in continuous service under the

opposite party and was subjected for a termination / retrenchment on an oral order by mounting the witness box.

Going by the proceedings underwent in the given case, it is clear that once the statement of objection is filed by

the opposite party, the matter was posted for evidence of the complainant and on the repeated request of the

complainant, evidence / enquiry was postponed by my learned predecessor by not less than 5 occasions. Then at

the whimsical stand of the complainant it is made out that there is no need to adduce evidence and the matter be

posted for arguments. In fact, as per law, before giving any relief to the aggrieved employee under the section, the

authority viz., this Tribunal has first to determine that the employee was continuously working under the employer

and the latter had surreptitiously kicked out him from the job without complying with the mandate u/s 33 of the

Act. Hence a contravention of sec 33 is the foundation for exercise of the power u/s 33A of the Act. As already

observed and as rightly pointed out by the learned counsel for the opposite party, no reliable proof / evidence is

brought on record by the complainant to substantiate that there is contravention of provisions of sec 33 of the Act

from the side of the opposite party.

16. In the event if the alleged factum of infraction from the provision of sec 33 is established, the matter has to

be very meticulously adjudicated on merit to examine whether the complainant is entitled to get an order of

reinstatement. It is trite that even when contravention of sec 33 is established, that does not automatically lead to

an order for reinstatement. So, at large, the complainant is at the task to prove and establish the primary elements

viz., his status as a daily wage employee under the opposite party coupled with contravention of the provisions of

sec 33 by the latter and then his eventual right to get reinstatement to service with equivalent benefits.

Determination of all these issues by the legal forum could be possible only when reliable evidence is adduced by

the complainant by offering himself for searching cross examination by the opposite party in a full-fledged trial. It

is trite that the initial burden lies on the employee to prove that he falls under the definition of a ―workman‖ under

the Industrial Disputes Act. If the employee presents a strong prima facie case, the management must then provide

evidence to rebut it. Of course, the evidence to be adduced by the person claiming to be an employee must be

substantial, often a preponderance of evidence depending on the claim. It is no longer res-integra that the burden

of proving the employer-employee relationship primarily rest upon the person who asserts its existence. In a

situation where a person asserts to be an employee of the management which the management denies, the duty

primarily rests upon the person so asserting to give positive evidence in his favour and discharge his initial burden.

At the risk of repetition I say, once such a person has given such a positive evidence in his favour, only then the

burden would shift on the management to give evidence to counter such claims, because it is always possible to

prove positive facts than a negative. The Hon'ble Supreme Court in Workman of Nilgiri Co-Op Mkt Society

LTD vs. State of Tamil Nadu (AIR 2004 SC 1639) held that it is a well settled principle of law that the person

who is setting up a plea of existence of relationship of employer and employee, the burden would be upon him.

Similar view is adopted by the Hon'ble Supreme Court in Bank of Baroda vs. Ghemarabhai Harijibhai Rabari

(2005 (10) SCC 792). The complainant herein kept aloof from trial feeling shy of an intensive quiz in the witness

box. Probably, the complainant might have been misled, misguided or mal-advised not to mount the witness box

so as to avoid probable inconvenience of a grilling cross-examination. The net result of such willful avoidance of

requisite procedure by the complainant either by himself or as instilled upon him is complete failure of the case

projected by him.

17. Extensive argument is advanced on behalf of the complainant with the aid of plethora of legal authorities

canvassing for a favorable order of reinstatement with full back wages, continuity of service with regularization

and ancillary benefits from 12.12.2016. As could be heard from Learned Counsel for the opposite party, all these

wider reliefs sought for by the complainant are the main reliefs claimed in the said case CR 22/2013. By

consciously avoiding to give oral or documentary evidence in this case, what is craved for on behalf of the

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

93

complainant is to grant the above reliefs even without facing a trial. Granting such reliefs in his favour without

providing / supplementing any sort of evidentiary support would tantamount to prejudging the issue raised in the

Industrial Dispute case CR 22/2013 in a very shortcut method.

18. Argument is advanced on behalf of the complainant placing reliance upon the verdicts of the Hon'ble High

Court of Gujarat in Gujarat State Electricity Corporation LTD vs. Bhimrao Aagete (LPA 177 / 2016 dated

06.03.2018), Kalavatiben Prabhakar Patil and others vs. Managing Director (C/SCA/3189/2020 dated

17.01.2022) that while deciding a complaint u/s 33A it is not obligatory for the workman to prove that he had

worked for 240 days. Those rulings in fact do not indicate that the complainant is not at all under obligation to

substantiate his basic status under the opposite party to justify the case put forth.

19. In the peculiar facts and circumstances of the case and the very casual manner in which it is manned by the

complainant, the plethora of rulings relied upon by him viz., Hindustan Lever LTD vs. Ram Mohan Roy and

others (AIR 1973 SC 1156) by the Hon'ble Apex Court, Management of Karur Vysya Bank LTD vs.

Presiding Officer, Industrial Tribunal (2007 II LLJ 459) by the Hon'ble High Court of Madras, M M

Narayana vs. KSRTC (AIR 2012 (4) KAR R 518) and Karan Kumar vs. Divisional Controller KSRTC (WP

203333/2019 dated 13.07.2023) by the Hon'ble High Court of Karnataka and Deutsche Lufthansa AG vs. Nayan

Pahwa & others (2025 INSC 998) by the Hon'ble High Court of Delhi are not of any help to the complainant as

in all those cases non-compliance of the provisions by the respective employers are relating to regular employees

on its payroll. Among the cases noted above, the case of Karur Vysya Bank LTD, MM Narayana and Karan

Kumar are related to the actions initiated by the respective employers based on misconduct / misdemeanor of the

respective regular employees in respect of which approval applications were not submitted by the employers. In

the given case though the complainant preferred to contend that his so called retrenchment / termination was

pursuant to an alleged theft and forging of the cheque leaf of a customer, which factum the opposite part denied

and disowned, he did not prefer to bring home any reliable evidence to substantiate the said plea. In Hindustan

Lever’s case also, the complainants were the regular employees of the employer establishment. In principle, the

fact situations contained in the afore-quoted ruling do not have any application to the case on hand.

20. Before parting, it is worthy to pen down that in order to avail the relief provided u/s 33 of the Act, firstly the

aggrieved party should prove himself to be a workman within the definition of u/s 2(s) of the Industrial Disputes

Act and there exists employer-employee relationship between the contesting parties. In conclusion of the afore-

discussion, I find that the complainant has miserably failed in substantiating his own case. He equally failed in

refuting / negating the contentions raised by the opposite party that he is only a coolie engaged on need and

requirement basis without continuity and frequency and hence not governed by any rules and regulations of the

bank. So also the complainant further failed in successfully controverting the rival contentions of the opposite

party that there is no employee-employer relationship between himself and the opposite party or that he was not

engaged by the latter against a sanctioned post. The deliberate refusal, negligence or avoidance to prove and

establish a genuine and reliable case by tendering requisite evidence has led the complainant to face a total failure

in the given case and for an eventual dismissal of the complaint. With this view, these points are answered

accordingly.

21. Point No. 5:- In view of the findings on point no. 1 to 4, it is held that the complainant is not entitled for any

reliefs sought for in this complaint.

22. Point no. 6:- In the result the following award is passed.

AWARD

The Complaint no. 02/2017 is dismissed.

K P INDIRA, Presiding Officer

नई ददल्ली, 16 जनवरी, 2026

का.आ. 30.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj

Hkkjrh; LVsV cSad ds izca/kr=] lac) fu;kstdkas vkSj muds deZdkjksa ds chp vuqca/k esa fufnZ’V औद्योजगक fookn esa dsUnzh;

ljdkj औद्योजगक vf/kdj.k@Je U;k;ky; चंडीगढ़-II ds iapkV (46/2024) izdkf”kr djrh gSA

[सं. एल-12025/01/2026-आई.आर.(बी-I)-23]

सलोनी, उप जनदेिक

New Delhi, the 16th January, 2026

S.O. 30.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

94

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Government hereby publishes the Award (Ref. 46/2024) of the Cent.Govt.Indus.Tribunal-cum-Labour Court

Chandigarh-II as shown in the Annexure, in the industrial dispute between the management of State Bank of

India and their workmen.

[No. L-12025/01/2026- IR(B-I)-23]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT-II,

CHANDIGARH

(Present:- Mr. Kamal Kant, Presiding Officer).

ID No. 46/2024

Registered on:-11.12.2024

Ajay Kumar Arya (Deputy Secretary) SBISA (State Bank of India Staff Association) Branch Unit Nraingarh Branch

(00614)

-------- Workman

Versus

Chief General Manager, State Bank of India, Chandigarh Circle, Local Head Office, Sector 17, Chandigarh-160017

----Management

Present:-

Workmen in person.

Sh. Azad Singh, Deputy Branch Manager, AR for management.

Award : 03.12.2025

Central Government vide Notification No.7(S-05)/2024/ALK dated 27.11.2024, under sub-section (5) of

Sewction 12 read with sub-section (2A) of Section 10 of the Industrial Disputes Act, 1947 (hereinafter called the

Act), has referred the following Industrial dispute for adjudication to this Tribunal:-

“Whether the management of State Bank of India, Ambala was engaged in unfair labour practice by

transferring the workman on ground of misbehavior?”

1.

The case is fixed for filing written statement on behalf of management. However today, workman moved an

application stating there that he would like to withdraw this matter in mutual consent with his management and will

sort out this matter with discussion with the management and requested to close this matter.

2.

In view of the above mentioned application moved by workman, this Tribunal is left with no choice, except

to pass a 'No Claim Award'. Accordingly, 'No Claim Award' is passed in the present reference.

3.

Let copy of this award be sent to the Appropriate Government as required under Section 17 of the Act for

publication.

KAMAL KANT, Presiding Officer

नई ददल्ली, 16 जनवरी, 2026

का.आ. 31.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj

Hkkjrh; LVsV cSad ds izca/kr=] lac) fu;kstdksa vkSj muds deZdkjksa ds chp vuqca/k esa fufnZ’V औद्योजगक fookn esa dsUnzh;

ljdkj औद्योजगक vf/kdj.k@Je U;k;ky; चंडीगढ़-II ds iapkV (07/2017) izdkf”kr djrh gSA

[सं.एल-12025/01/2026-आई.आर.(बी-I)-24]

सलोनी, उप जनदेिक

New Delhi, the 16th January, 2026

S.O. 31.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref. 07/2017) of the Cent.Govt.Indus.Tribunal-cum-Labour Court

Chandigarh-II as shown in the Annexure, in the industrial dispute between the management of State Bank of

India and their workmen.

[No. L-12025/01/2026- IR(B-I)-24]

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

95

SALONI, Dy. Director

ANNEXURE

In the Central Government Industrial Tribunal-cum-Labour Court-II, Chandigarh

(Present:- Mr. Kamal Kant, Presiding Officer).

ID No. 07/2017

Registered on:-05.07.2017

Sh. Baljit Singh S/o Sh. Mahabir Singh, Mohalla Mullu Pura, VPO Koshli, Distt. Rewari (Haryana)

-------- Workman

Versus

1.

The Branch Manager, State Bank of India, Koshli, Distt. Rewari.

2.

The Regional Manager, State Bank of India, Region-7, Regional Business Office, Rewari (Haryana).

----Respondents

Present:-

Sh. S C Gupta, AR for workmen.

Sh. S K Gupta, AR for respondent no.1 & 2.

Award :08.12.2025

1.

Workman Sh. Baljit Singh has filed the present application directly under Section 2(A)2 of the Industrial

Dispute Act, 1947 (hereinafter called as the Act) against his termination on 19.01.2015 and praying his reinstatement

into service with full back wages with continuity in service with all consequential benefits.

2.

The brief facts related to the case are that the workman was appointed by the manager of State Bank of

India, Koshli as peon w.e.f. 12.07.2009 after completing all formalities and after verifying the bio data submitted by

him. The Branch Manager assured him that his services would be made permanent and he would be paid full salary

and allowances as to be paid to the other permanent peon in the bank with all benefits applicable to the post of peon

as per the service conditions. He was not paid full salary by the branch manager rather a consolidated amount of

salary was paid per month. He requested many times to the concerned branch manager for regularization of his

services and payment of full salary also. The workman continued working as peon as well as messenger till

19.01.2015.

3.

The respondents terminated his services without disclosing any reason without one month notice or pay in

lieu of notice and without payment of any retrenchment compensation, though he has completed more than five years

continuously w.e.f. 12.07.2009 to 19.01.2015 without any break and put in more than 240 days of service prior to

date of his termination. Thus, violated the provisions of Section 25F of the Act.

4.

The respondents also violated the mandatory provisions of Section 25G and 25H of the Act, as juniors have

been retained in service and fresh hands were engaged by the respondents.

5.

The work and conduct of the workman remained above board during his entire service and there was no

complaint against him. He used to work about 10 hours daily from 8 AM to 5:45 PM on all working days from

Monday to Friday and from 8Am to 3:45 PM on Saturday. He was performing all sort of duties, which were to be

performed by a regular employee, yet he was deprived of all kind of leave, leave travel concession, encashment of

leave and medical facility and all other benefits, which are available to the regular/permanent employees of the bank.

6.

The workman raised a demand notice regarding his illegal termination from the service by the respondents

before the Assistant Labour Commissioner (Central) Karnal and upon failure of conciliation proceedings, he filed the

present claim. It is prayed that he be reinstated in service with full back wages with continuity in service and

consequential benefits from 19.01.2015 onwards.

7.

Notice of claim was given to the respondents, who filed reply thereof maintaining therein that there is no

relationship of employer and employee between the workman and respondents. The workman was never appointed by

the respondent as peon as alleged. There is no post of peon in the bank. The services of applicant were availed by the

branch manager as a casual labour from time to time on requirement basis. The workman was engaged for the first

time on 12.07.2009 as daily wager. The workman was never assured by the manager that he will be made permanent

as there was no post of peon. One Smt. Anita W/o Sanjay of Kosli was an employee of Care Enterprises, who has

been outsourced by the bank for cleaning the bank premises. The workman was not entitled for regular salary and was

paid at daily rates for the number of days for which his services were availed by the branch. The workman was

disengaged when the casual work was not needed. The workman was never appointed by the bank on regular, adhoc

or temporary basis, hence the provisions of the Act are not attracted in case of workman. The workman did not work

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THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

continuously and has not completed 240 days of service prior to date of his termination. No notice pay and

compensation is required to be paid to the workman as prescribed under Section 25F of the Act. It is prayed that the

claim may be answered in favor of the respondent and against the workman.

8.

A replication was also filed by the workman rebutting the respondents as has been stated in the written

statement.

Evidence of workman:-

9.

In order to prove his case, the workman examined himself as WW1 and tendered into evidence his affidavit

WW1/A and was cross examined by the AR for respondents. The AR for workman closed the evidence on behalf of

workman on 18.12.2019.

Evidence of respondents:-

10.

The respondents examined Sh. Pankaj Yadav, Branch Manager, State Bank of India, Kosli and tendered into

evidence his affidavit Ex.MW1/A and was cross examined by the AR for workman. The AR for respondents closed

the evidence on 26.10.2023 and the case was fixed for arguments.

11.

During the recording of evidence, workman summoned the record pertaining to his case and respondents

placed on file various documents, which are having 316 pages.

Arguments by parties:-

12.

While arguing the case, AR for workman contended that branch of Kosli was opened on 12.07.2009 and the

workman was engaged on that very day by the branch manager and worked as such till 19.01.2015 without any single

break as is clear from the record produced by the respondents. Workman was paid salary firstly @Rs.4500/- per

month and later on @Rs.5500/- per month till August, 2014. Services of the workman were terminated on

19.01.2015. The workman was not paid salary for the period 09/2014 to 12/2014 and he filed application before the

Labour Conciliation Officer and he was paid the salary from 09/2014 to 19.01.2015 vide Cheque no.396321542 dated

21.07.2015 amounting Rs.30721/-, which include Rs.25371/- as salary for the period 09/2014 to 19.01.2015 @5500/-

per month and Rs.5350/- as local collection and conveyance charges from 08.11.2014 till 19.01.2015. Thus it is

proved that workman worked continuously from 12.07.2009 till 19.01.2015 and he was not paid retrenchment

compensation and salary of one month in lieu of notice, which is violation of Section 25F of the Act and even letter

dated 08.01.2015 was written by the Chief Manager to the Branch Manager maintaining therein that fresh workman

be employed through contractor, which is in violation of Section 25G of the Act.

13.

Even it has been admitted by Sh. Pankaj Yadav MW1 in para no.5 of his affidavit that Smt. Anita W/o Sh.

Sanjay of Kosli has also been outsourced in place of the workman. AR for workman placed reliance upon judgment

of Division Bench of Hon'ble Himachal Pradesh High Court in LPA No.258 of 2012 State Bank of India and

another versus Puja W/o Sh. Makhan Singh in which the Hon'ble High Court has granted relief to the workmen by

reinstated him along with back wages. Thus, AR for the workman contended that workman be reinstated with full

back wages.

14.

On the other hand, AR for respondents contended that the workman was purely engaged on daily wage basis

and he was not entitled for regularization and was not required to give any notice under Section 25F of the Act being

daily wager. However, it is submitted that he has worked 240 days prior to his termination. He also contended that

since workman was purely on daily wages, he was not entitled for reinstatement with back wages. To support this

view, he placed reliance upon case law titled as Jasbir Singh Vs Haryana State Agriculture Marketing Board,

2009(3) SCT 790 and District Development Officer & Anr. V/s Satish Kantilal Amrelia, Civil Appeal Nos. 19857-

19858 of 2017; decided on 28 November , 2017.

Findings:-

15.

I have given due consideration to the arguments advanced by AR for both the parties.

16.

First this Tribunal is to decide is whether the workman comes within the definition of "workman" as is

defined in Section 2(s) of the Act. It is mentioned here that applicant was in service of bank w.e.f. 12.07.2009 and

continuously worked till 19.01.2015 as peon. This fact has been admitted by Mr. Pankaj Yadav MW1 in his cross

examination in his affidavit that services of the applicant were availed by the branch manager as casual labour for

menial jobs from time to time on requirement basis of the branch and he was engaged for the first time on 12.07.2009

as daily wager. Thus workman was not performing the work of regular employee. Even this witness in his cross

examination has admitted that workman was engaged on 12.07.2009 in Kosli Branch of SBI. He has also admitted

that entries regarding payment of wages on pages 174 to 176 are correct. It is an admitted fact that there was no peon

working with the bank and applicant/workman was doing the work as daily wager. In plain words, from the adduced

evidence, it emerges that he was performing his duty as labourer of unskilled workers. He was not in supervisory or

administrative post requiring him to perform only administrative post requiring him to perform only administrative

duties. While interpreting Section 2(s) Hon'ble Supreme Court in the case of Devinder Singh V/s Municipal Council,

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

97

Sanaur AlR 2011 Supreme Court 2532, has observed as follows:-

"The source of employment, the quantum of recruitment, the terms and conditions of employment/contract of

service, the quantum of wages/ pay and mode of payment are not at all relevant for deciding whether or not a

person is a workman within the meaning of Section 2(s) of Act. The definition of workman also does not make

any distinction between full time and part time employee or a person appointed on contract basis. There is

nothing in the plain language of Section 2(s) from which it can be inferred that only person employed on

regular basis or a person employed for doing whole time job is a workman and the one employed on

temporary, part time or contract basis on fixed wages or as a causal employee or for doing duty for fixed hours

is not a workman.”

17.

Thus, Hon'ble Supreme Court has clarified that the definition of workman also does not make any distinction

between full time or part time or a person appointed on contract basis. There is nothing in employee plain language of

Section 2(s) from which it can be infer that only person employed on regular basis or a person employed for doing

whole time job is a workman and the one employed temporary, part time or contract basis or daily wager on fixed

wages or as a casual employee or for doing duty for fixed hours is not a workman. In view of the ratio of law

enunciated in the above ruling, in my considered opinion, the claimant herein admittedly falls within the definition of

'workman' under Section 2(s) of the Act.

18.

Workman has claimed that at the time of his removal, he was getting Rs.5500/- per month and he had

worked 240 days prior to his termination. As per record placed on file by the respondent, a perusal of page no.176

and 177 reveals that workman was paid Rs.5000/- and Rs.5500/- as salary, details of which are as under:

Sr. No.

Month

Salary paid (in Rupees)

1.

January 2014

5000/-

2.

February 2014

5000/-

3.

April 2014

5500/-

4.

May 2014

5500/-

5.

June 2014

5500/-

6.

July 2014

5500/-

7.

August 2014

5500/-

and thereafter he was paid salary from 09/2014 to 19.01.2015 vide Cheque no.396321542 dated 21.07.2015

amounting Rs.30721/-, which include Rs.25371/- as salary for the period 09/2014 to 19.01.2015 @5500/- per month

and Rs.5350/- as local collection and conveyance charges from 08.11.2014 till 19.01.2015. Thus, it emerges that prior

to his termination from 19.01.2015, he worked 240 days continuously.

19.

Admittedly, the respondent is an industry and there was non- compliance of Section 25-F of the Act and as

per record, the workman had worked intermittently during the period 12.07.2009 till 19.01.2015 and in place of him

as per affidavit of MW1, Smt. Anita W/o Sanjay of Kosli was an employee of Care Enterprises which has been

outsourced by the bank for cleaning the bank premises. Thus, there was violation of Section 25G of the Act.

20.

Admittedly, the respondent is an industry and there was non- compliance of Section 25-F of the Act. The

workman has already been able to prove that she worked continuously for a period of 240 days prior to her

termination of her services by respondent on 16.11.2017. It is proved as per statement of Mr. Mohit Dalak, MW1. It

is added here that the applicant worked as daily wager w.e.f. 12.07.2009 till 19.01.2015 casually. Admittedly, in this

case, applicant was not paid retrenchment compensation as per Section 25F of the ID Act and in place of him, Smt.

Anita W/o Sanjay was engaged. Thus, there was violation of Section 25F and 25G of the ID Act.

21.

Admittedly, there is violation of Section 25F of the Act and in view of the judgment of Hon'ble Apex Court

in Bharat Sanchar Nigam Ltd.Vs Man Singh, 2012(1) SCT 641, it is not necessary that relief of reinstatement has to

be given as a matter of right. Reliance can also be placed upon Jasbir Singh Vs Haryana State Agriculture

Marketing Board (supra), under which it has been held that in the legal position and the Court had recent past, there

had been a shift in consistently taken the view that relief by way of reinstatement with back wages is not automatic

and may she wholly inappropriate in a given fact situation, even though termination of an employee was in

98

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

contravention of the prescribed procedure. Compensation instead of reinstatement was held to be the prudent relief to

meet the ends of justice. Moreover, Hon'ble Supreme Court of India in case titled as District Development Officer &

Anr. V/s Satish Kantilal Amrelia (supra), has held as follow:

"that the reasons for denying the relief of reinstatement in such cases are obvious, It is trite law that when the

termination is found to be illegal because of non-payment of retrenchment compensation and notice pay as

mandatorily required under Section 25-F of the Industrial Disputes Act, even after reinstatement, it is always

open to the management to terminate the services of that employee by paying him the retrenchment

compensation. Since such a workman was working on daily-wage basis and even after he is reinstated, he has no

right to seek regularization. Thus he cannot claim regularization and he has no right to continue even as daily-

wage worker, no useful purpose is going to be served in reinstatement such a workman and he can be given

monetary compensation by the Court itself inasmuch as if he is terminated again after reinstatement, he would

receive monetary compensation only in the form of retrenchment compensation and notice pay. In such a

situation, giving the relief of reinstatement, that too after a long gap, would not serve any purpose".

In view of facts discussed above workman entitled for compensation as he was working on temporary basis

intermittently.

22.

Since the workman has stated in his claim that he worked as peon with the management and was getting

Rs.5500/- per month and was appointed by the Branch Manager. In this regard, it is pertinent to mention here that

Branch Manager is not appointing authority for appointing the workman. He was not given any appointment letter

and was daily wager and was not appointed on substantive post.

23.

As regards case law State Bank of India and another versus Puja W/o Sh. Makhan Singh(supra) cited by

AR for workman is concerned, in that case, bank has concealed facts from the court and has pleaded incorrect stand

before the court and was held to practicing unfair labour practice. Under these circumstances, the workman was given

reinstatement. Extract of relevant para 15 of the judgment in above case is reproduced as under:-

15. Analyzing the facts of instant case, in light of the exposition of law discussed hereinabove, it can safely be

held to be falling in the zone of exception. The bank being a public sector undertaking was expected to place on

record true and correct facts. The stand of the bank that workman was not its employee and also having been

deployed casually, as noticed above, is belied by record and proved otherwise. Considering the incorrect stand

having been taken by the bank, there is no hesitation to infer unfair labour practice having been applied by the

bank.

24.

But in the present case, there is no concealment of the facts by the respondent bank. Rather, bank has

categorically held that workman has worked as daily wager with the bank casually on requirement basis and thus

under these circumstances, the case of workman is entirely different from the case of State Bank of India and

another versus Puja W/o Sh. Makhan Singh (supra) relied upon by the AR for workman. Moreover, Hon'ble

Supreme Court in catena of judgment has held that relief by way of back wages is not automatic and compensation

instead of reinstatement was held to be the prudent relief to meet the ends of justice.

25.

In view of legal position discussed above, this Court is of the considered view that the workman herein was

not holding a regular or permanent post nor he was recruited against the post in a regular manner. In such

circumstances, it is appropriate to grant reasonable compensation instead of reinstatement with back wages.

26.

As such, having due regard to the facts and circumstances, an amount of Rs.2,00,000/- (Rupees Two Lacs)

appears to be reasonable to which the workman is entitled. In case, the amount of Rs.2,00,000/- (Rupees Two Lacs)

not paid within one month from the date of publication of the award, the workman is held to be entitled to 6% interet

from the date of award till payment. File after completion be consigned to the record room.

27.

Let copy of this award be sent to the Appropriate Government as required under Section 17 of the Act for

publication.

KAMAL KANT, Presiding Officer

नई ददल्ली, 16 जनवरी, 2026

का.आ. 32.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj

ds izca/kr=] lac) fu;kstdksa vkSj muds deZdkjkas ds chp vuqca/k esa fufnZ’V औद्योजगक fookn esa dsUnzh;

ljdkj औद्योजगक vf/kdj.k@Je U;k;ky;

ds iapkV (a69/2021) izdkf”kr djrh gSA

[सं. एल-39025/01/2026-आई.आर.(बी-II)-01]

सलोनी, उप जनदेिक

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

99

New Delhi, the 16th January, 2026

S.O. 32.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref. 69/2021) of the Cent.Govt.Indus.Tribunal-cum-Labour Court

Lucknow as shown in the Annexure, in the industrial dispute between the management of Indian Bank and

their workmen.

[No. L-39025/01/2026- IR(B-II)-01]

SALONI, Dy. Director

ANNEXURE

CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT, LUCKNOW

I.D. No. 69/2021

Ref No.K-10/1-4/2021-IR Dated: 27.05.2021

Shri Ashish Yadav

S/o Shri Jagannath Yadav,

643-A/33,PaltanChawni, Aliganj,

Lucknow-226021. .…………...Appellant

Versus

The Assistant General Manager, Indian Bank

(formerly known as Allahabad Bank) Staff College,

Sector 21, Ring Road, Indira Nagar Lucknow - 226016.

The Proprietor, M/s R.K.Associates,

631/106,Ajay Nagar, Surendra Nagar,

Lucknow-226028. …………..Respondent

AWARD

By order No.K-10/1-4/2021-IR Dated: 27.05.2021, the present industrial dispute has been referred for

adjudication in exercise of the powers conferred by clause (d) of sub-section (1) and sub-section (2A) of Section 10

the Industrial Disputes Act, 1947 (14 of 1947) by the Central Government, with following schedule:

"Whether the action of management of Indian Bank Staff College, Lucknow in terminating the services of

Shri Ashish Yadav S/O Shri Jagannath Yadav, Receptionist w.e.f. 01.07.2020 who was engaged through

contractor M/s R.K.Associates, without following the provisions of Section 25 F of I.D. Act, 1947, is Legal

and justified? If not, to what relief the workman is entitled to and from which date?

Accordingly, an I.D. Case No. 69/2021 has been registered.

Thereafter claimant/workman filed a claim statement on 27.05.2021.

Shri SK Shukla Advocate on behalf of respondent file written statement on 22.04.2022, to which rejoinder affidavit

has been filed on 24.11.2022.

Thereafter workman filed his evidence on affidavit (Examination in Chief) on 07.06.2023.

From the perusal of the record it transpired that in spite of repeated opportunity given to the workman, Shri Ashish

Yadav who has filed evidence on affidavit (Examination in chief) does not turn up for his cross examination.

So by order dated 14.03.2024, right to get him cross examine (Shri Ashish yadav/workman) was closed.

Thereafter on 22.11.2024, an application moved for recall of the order dated 14.03.2024, supported by affidavit, titled

as “APPLICATION FOR RECALL OF ORDER DATED 14.03.2024”.

Further time was granted to the claimant/workman to press the same.

However none appeared on behalf of workman to press the same, so by order dated 23.01.2025, application for recall

of order dated 14.03.2024, moved on 22.11.2024 by claimant/workman was rejected.

Further perusal from record the position which emerged out, on 03.10.2025 the matter was fixed for ex parte hearing

and notice was send to claimant/workman.

As none appeared on behalf of the workman, so the matter was adjourned and one more opportunity was granted to

100

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

workman, and matter was fixed for ex parte hearing on 25.11.2025, notice was send to him.

In spite of the said facts i.e. service of the notice for proceeding ex parte, today when the matter listed for hearing,

none appeared on behalf of the workman.

Shri SK Shukla learned counsel for respondent has appeared.

I have heard Shri SK Shukla Advocate for respondent and perused the record.

Keeping in view the above said facts, this is a case of no evidence because worker did not cross examined himself on

the evidence filed by him on affidavit (examination in chief) so the same in not proved as per the relevant provision

Evidence Act, so keeping the said facts and the law as laid by the Hon'ble High Court in the case of V. K. Raj

Industries v. Labour Court (1) and others 1981 (29) FLR 194 as under:

"It is well settled that if a party challenges the legality of an order, the burden lies upon him to prove

illegality of the order and if no evidence is produced the party invoking jurisdiction of the Court must fail

Whenever a workman raises a dispute challenging the validity of the termination of service if is imperative

for him to file written statement before the Industrial Court setting out grounds on which the order is

challenged and he must also produce evidence to prove his case. If the workman fails to appear or to file

written statement or produce evidence, the dispute referred by the State Government cannot be answered in

favour of the workman and he would not be entitled to any relief."

In the case of M/s Uptron Powertronics Employees' Union, Ghaziabad through its Secretary v. Presiding

Officer, Labour Court (II), Ghaziabad and others 2008 (118) FLR 1164 Hon'ble Allahabad High Court has held

as under:

"The law has been settled by the Apex Court in case of Shanker Chakravarti v. Britannia Biscuit Co. Ltd.,

V.K. Raj Industries v. Labour Court and Ors., Airtech Private Limited v. State of U.P. and Ors. 1984 (49)

FLR 38 and Meritech India Ltd. v. State of U.P. and Ors. 1996 FLR that in the absence of any evidence led

by or on behalf of the workman the reference is bound to be answered by the court against the workman. In

such a situation it is not necessary for the employers to lead any evidence at all. The obligation to lead

evidence to establish an allegation made by a party is on the party making the allegation. The test would be,

who would fail if no evidence is led."

And by the Hon'ble Allahabad High Court in the case of District Administrative Committee, U.P. P.A.C.C.S.C.

Services v. Secretary-cum-G.M. District Co- operative Bank Ltd. 2010 (126) FLR 519; wherein it has been held

as under:

"The submission is that even if the petitioner failed to lead the evidence, burden was on the shoulders of the

respondent to prove the termination order as illegal. He was required to lead evidence first which he failed.

A perusal of the impugned award also does not show that any evidence either oral or documentary was led

by the respondent. In the case of no evidence, the reference has to be dismissed."

AWARD

For the foregoing reasons, the case is dismissed and; and the workman is not entitled for any relief.

Award as above.

Lucknow.

06th January, 2026.

Justice ANIL KUMAR, Presiding Officer

नई ददल्ली, 16 जनवरी, 2026

का.आ. 33.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj

ds izca/kr=] lac) fu;kstdksa vkSj muds deZdkjksa ds chp vuqca/k esa fufnZ’V औद्योजगक fookn esa dsUnzh; ljdkj

औद्योजगक vf/kdj.k@Je U;k;ky;

ds iapkV (a18/2017) izdkf”kr djrh gSA

[सं.एल-12012/06/2017-आई.आर.(बी-II)]

सलोनी, उप जनदेिक

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

101

New Delhi, the 16th January, 2026

S.O. 33.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref. 18/2017) of the Cent.Govt.Indus.Tribunal-cum-Labour Court

Bhubaneswar as shown in the Annexure, in the industrial dispute between the management of UCO Bank

and their workmen.

[No. L-12012/06/2017- IR(B-II)]

SALONI, Dy. Director

ANNEXURE

CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR

COURT BHUBANESWAR

Present:

Sri Dinesh Kumar Singh,

Presiding Officer, C.G.I.T.-cum-Labour

Court, Bhubaneswar.

INDUSTRIAL DISPUTE CASE NO. 18/2017

Date of Passing Award – 26thNovember, 2025

Between:

The Branch Manager,

UCO Bank, Bagedia Branch,

At./Po. Bagedia, Dist. Angul, Odisha.

…

1st Party-Management.

(And)

Smt. Kalpana Pradhan,

At. Tentulikhandahata, Po. Kishore Nagar,

Sub. Div. Athmalik, Dist. Angul, Odisha.

…

2nd Party-Work-Woman.

Appearances:

Sri Subrat Mishra,

…

For the 1st Party-Management.

Advocate.

Sri Amar Sahoo,

…

For the 2nd Party-Work Woman.

Advocate.

AWARD

The Government of India in the Ministry of Labour &Employment in exercising its power conferred under

clause (d) of sub-section (1) and sub-section (2-A) of Section 10 of the Industrial Disputes Act, 1947 (14 of 1947)

have referred a dispute between the Management of UCO Bank, Begedia Branch and allegedly its workmen vide

letter No. L-12012/06/2017 – IR(B-II), dated 20.03.2017 for its adjudication and the schedule of the reference is as

follows:-

―Whether the action of the management of UCO Bank, Bagedia Branch, Dist. Angul, Odisha in terminating

Smt. Kalpana Pradhan w.e.f. 19.01.2016 without assigning any reason and without following the provisions

of I.D. Act, 1947 is legal & justified? If not, to what relief the workman is entitled to?‖

2.

The case of the 2nd party-work woman as per her statement of claim is as follows:-

That, her husband late Saudagar Pradhan was a sub-staff of the Bagadia Branch of UCO Bank and he died on

24.03.2010. Thereafter she was employed as a daily labourer since 26.04.2010 and she was assured for her regular

employment. She was discharging her duties continuously in the Bank but on 19.01.2016, the Branch Manager of

102

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Bagadia branch of UCO Bank had terminated her services without any prior notice resulting financial loss and mental

agony. Thereafter she approached the A.L.C.(Central), Angul and on failure of conciliation the matter was referred to

as a reference to this Tribunal for adjudication. The action of the Management, Branch Manager, UCO Bank is highly

illegal and arbitrary as it had been terminated her services without any notice or retrenchment benefit.

A prayer has been made to pass an award declaring her retrenchment by the Management of UCO Bank as

null and void with a direction to reappoint her with full back wages.

3.

The 1st Party-Management through the Branch Manager, UCO Bank, Bagadia Branch has appeared and filed

written statement.

4.

The case of the 1st Party-Management as per its written statement is as follows:-

That, the 2nd party is not a ―workman‖ of the management-Bank and there was no ―employer and employee‖

relationship existed between the Management with the 2nd Party-work-woman at any point of time, so there is no

industrial dispute exists in this case. The 2nd party is not a workman within the meaning of Section 2(s) of the

Industrial Disputes Act, so the present reference is bad in law. The services of the 2nd party-work-woman Smt.

Kalpana Pradhan was availed in the Bank as occasionally on as and when basis so it cannot be decided how many

days she had worked in the Bank. Moreover, the Bank has never issued any appointment letter or termination letter to

the workwoman, so the compliance of Section 25-F of the I.D. Act does not arise in this case. She had never

completed continuous service in the Bank for more than 240 days in a year preceding to her termination. The 2nd party

workwoman after the death of her husband had approached the Branch Manager of the Bagadia Branch of UCO Bank

for providing her some part time miscellaneous work and the Branch Manager on humanitarian ground offered her

some miscellaneous work as and when required. The 2nd party-work-woman was not an employee of the Bank so she

had not marked her presence in the attendance register and she had never worked continuously in any year of her

contractual engagement continuously and uninterruptedly. The Management-Bank is not under any obligation to

serve any notice and no illegal & arbitrary action had been taken by the Management against her.

A prayer has been made by the 1st Party-Management to dismiss the claim of the 2nd party-work-woman as

she is not entitled for any relief.

5.

The 2nd party-workman has filed rejoinder to the written statement filed by the 1st Party-Management

denying all the averments made by the 1st Party-Management.

6.

On the basis of the pleadings of both the parties following issues are framed.

ISSUES

i)

Whether the reference is maintainable?

ii) Whether any action of the management of UCO Bank, Bagadia Branch, Dist. Angul, Odisha in terminating

Smt. Kalpana Pradhan w.e.f. 19.01.2016 without assigning any reason and without following the provisions

of I.D. Act, 1947 is legal & Justified?

iii) If not, to what relief the workman is entitled to?

7.

The 2nd party-workman has examined only one witness. She is the workwoman herself Kalpana Pradhan as

W.W.-1 and she has proved the following documents which are marked as hereunder:-

Ext.-1 – Copy of the application filed by the applicant before the A.L.C©, Angul.

Ext.-2 – Copy of the Statement of claim.

Ext.-3 – Copy of representation to the Management by the applicant on dated 03.02.2016.

Ext.-4 – Copy of the request letter to the concerned B.M., UCO Bank, Bagadia Branch, Angul.

Ext.-5 Series – Copies of the payment receipts.

Ext.-6 – Copy of the death certificate of Late Soudagar Pradhan husband of the 2nd Party-workman.

Ext.-7 – Copy of the HSC pass Certificate issued by the BSE, Odisha, Cuttack in favour of the 2nd Party-Workman.

Ext.-8 series – Copies of the Debit vouchers.

Ext.-9 series – Copies of the vouchers entry register containing entries from January, 2010 to January, 2016,

8.

On the other-hand the 1st Party-Management has examined only one witness. He is Ashish Kumar Behera

Asst. Manager, UCO Bank, Bagadia Branch of Angul.

9.

In course of his evidence he has proved the following documents which are marked as :-

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

103

Ext.-A – Copy of the representation of the work-woman dated 04.05.2011 for placement under rehabilitation.

FINDINGS

ISSUE NO. I & II

10.

Both the issues are taken up together for the sake of convenience.

11.

At the outset of discussions it is required to mention here that it is an admitted fact that late Saudagar

Pradhan, husband of the 2nd party-work-work-woman was a sub-staff of the Management-Bank at Bagadia Branch

and he died on 24.04.2010. Further it is also admitted fact that after the death of late Saudagar Pradhan his wife 2nd

party workwoman was engaged by the Management-Bank occasionally as and when basis.

12.

It is the case of the 2nd Party-workman that after the death of late Saudagar Pradhan, his wife Kalpana

Pradhan was employed as a daily labourer since 26.04.2010 till 19.01.2016. However, the 1st Party-Management has

denied that the 2nd party-work-woman was engaged on daily wage basis regularly.

13.

Now in the light of the above discussions, the Tribunal thinks it proper to discuss the oral and documentary

evidence available in the record.

14.

The most competent witness in this case is W.W.-1. Smt. Kalpana Pradhan who has fully supported her case

in the evidence. She has categorically deposed that she was employed as a daily l abourer with effect from

26.04.2010 on post of her husband under the Management and she performed her duty continuously and

uninterruptedly under the 1st Party-Management till the date of her illegal termination. She has also stated

that during her service tenure her work was fixed from 9.30 A.M. till closure of the Bank and she was paid monthly

salary by the Management on the first week of the subsequent month by signing on cash vouchers on the head

of wage of casual labourers. She has also stated that while receiving payments of monthly wages she had signed at

the back side of the cash voucher in respect of token of receipt of her wages. She has also stated that after the death of

her husband she was allowed by the Bank authority to work in place of her husband and she was discharging all the

duties what her husband was doing. She has further stated that she had discharged her duties by sorting of daily

vouchers by entering total number of vouchers in the register provided by the Bank authority on date-wise and

supplied necessary forms to the customers. She has also stated that she had discharged her duties on the direction

of the Bank authority. She has further stated that she had continuously discharging her duties uninterruptedly and

performed her duty from 26.04.2010 till 19.01.2016 under the 1st Party-Management but she had been terminated

from the services without assigning any reason and without giving any prior notice, so she was illegally terminated

from her services. She has also deposed that she had raised the dispute before the labour authorities and on failure

of the conciliation proceeding the present reference arose. She has proved the documents which are marked as

Ext.-1 to Ext.-9.

In the cross examination she has stated that after the death of her husband she was paid around Rs.

35,000/- towards the death benefit of her husband. She has also deposed that on 04.05.2011 she has made

representation to the Zonal Manager, Sambalpur for her rehabilitation appointment as she was working for a long

period on daily wage basis. She has also deposed that she used to sign on each voucher when salary was paid to

her and she had worked in the same capacity in the branch when her husband was alive. She has also deposed that

she was not engaged in the branch in January 2010 to 25.04.2010. She has also deposed that she had collected the

documents on the instruction of the Branch Manager. She has denied the fact that the assertions made in Para-6, 7

and 8 of the affidavit evidence were baseless and false and the assertions made in Para-5, 6, 7, 8, 9, 10, 11, 12, 15,

16, 18 and 19 in the affidavit evidence were beyond the pleadings. She has denied the suggestion that she was not

a workman of the 1st Party-management and there was no employee and employer relationship between the

Management and her.

15.

The Management witness No. 1 Sri Asish Kumar Behera who is the Assistant Manager of UCO Bank,

Bagadia Branch has deposed that the services of the 2nd party-workwoman Smt. Kalpana Prahan was availed by

the Bank occasionally on as and when basis and it cannot be said that that how many days she had worked in the

branch and how many days she had worked for other organization. He has also deposed that Smt. Kalpana Pradhan

was not an employee of the Bank and neither any appointment letter nor termination letter was issued to her.

He has further stated that the 2nd party-work-woman had never made any application for her appointment or

engagement in the Bank and the documents which are marked a Ext.-1, 2 3 & 4 are forged and created document for

the purpose of this case. That the 2nd party-woman had never rendered continuous service in the Bank for 240 days in

any calendar year preceding of her termination, so the provisions of Section- 25 of the I.D. Act is not

applicable. He has further deposed that on the death of husband of the 2nd party-workwoman, she approached the

Branch Manager and considering her request she was offered some miscellaneous job as and when required. He has

also deposed that the disputant workwoman had never worked continuously and uninterruptedly for 240 days

preceding to the date of her alleged termination. He has also stated that the disputant work-woman had submitted a

representation on 04.05.2011 to the Zonal Manager, Sambalpur for her placement on the ground that she was doing

some part time work in the branch since 11.06.2010. He had also stated that the Management is not under any

104

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

obligation to serve any notice and there is no illegal and arbitrary action against the 2nd party workwoman. He

has proved the photocopy of the representation of the workwoman dated 04.05.2011 which is marked as Ext.-A.

In the cross examination he has deposed that he has no direct knowledge about engagement and

disengagement of the workwoman at the Bagadia Branch. He has further stated that after going through the

written statement filed in this case and the other documents I am deposing before this Tribunal. He has also deposed

that he had no knowledge and he had not gone through the documents showing how many days the workwoman had

worked for any other organization. He has also deposed that on the basis of earlier affidavit filed by the

Management he can say Ext.-1 to Ex.-4 are forged and created for the purpose of this case. He has also deposed that

nothing has been mentioned in the written statement of the Management regarding letter of the representation of

the workman dated 04.05.2011. He has denied the suggestion that Smt. Kalpana Pradhan was not working since

26.04.2010 to 18.01.2016.

16.

Now coming to the documentary evidence of the work-woman it appears that Ext.-4 is a request letter

submitted to the Branch Manager, Bagadia Branch of UCO Bank, Angul for considering her case as she was

working as a daily wager employed since 2010 after death of her husband. Further Ext.-5 series are the vouchers

containing 41 sheets showing payment of coolie charges and on the back of it the name of the work-woman

Smt. Kalpana Pradhan was mentioned. Ext.-8 series are the debit vouchers for the period 2011, 2012 showing

payment and on the back of the said debit vouchers there is signature of the work-woman Smt. Kalpana Pradhan

showing payment in cash. Ext.-9 series are the copies of the vouchers entry register containing entries from

January, 2010 to January, 2016. However, the Management has proved the representation of the work-

workman Smt. Kalpana Pradhan which is Ext.-A for her placement under the rehabilitation in which it has been

mentioned that she was doing some job as part time in banking hours since 11.06.2010.

17.

At this stage, it is important to mention here that the definition of workman has been defined U/s 2(s) of

the Industrial Dispute Act, 1947 (14 of 1947) which reads as follows:-

―workman‖ means any person (including an apprentice) employed in any industry to do any manual,

unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the

terms of employment be express or implied, and for the purposes of any proceeding under this

Act in relation to an industrial dispute, includes any such person who has been dismissed, discharged

or retrenched in connection with, or as a consequence of, that dispute, or whose dismissal,

discharge or retrenchment has led to that dispute, but does not include any such person-

(i)

who is subject to the Air Force Act, 1950 (45 of 1950), or the Army Act, 1950 (46 of 1950), or

the Navy Act, 1957 (62 of 1957); or

(ii)

who is employed in the police service or as an officer or other employee of a person, or

(iii) who is employed mainly in a managerial or administrative capacity, or

(iv) who, being employed in a supervisory capacity, draws wages exceeding (ten thousand rupees)

per mensem or exercises, either by the nature of the duties attached to the office or by reason of the

powers vested in him, functions mainly of a managerial nature

18.

It is relevant to mention here that the Hon‘ble Supreme Court in a case as reported in 2011 LAB. I. C.

2799 (S.C) has been pleased to observe as follows:-

―14. It is apposite to observe that the definition of workman also does not make any distinction

between full-time and part-time employee or a person appointed on contract basis. There is nothing

in the plain language of Section 2(s) from which it can be inferred that only a person employed on

regular basis or a person employed for doing whole-time job is a workman and the one employed

on temporary, part-time or contract basis on fixed wages or as a casual employee or for doing

duty for fixed hours is not a workman.

15.

Whenever an employer challenges the maintainability ground that the employee is not a

workman within the meaning of Section 2(s) of the Act, what the Labour Court/Industrial Tribunal is

required to consider is whether the person is employed in an industry for hire or reward for

doing manual, unskilled, skilled, operational, technical or clerical work in an industry. Once the test

of employment for hire or reward for doing the specified type of work is satisfied, the employee

would fall within the definition of ‗workman‖.

19.

Now in this case there is a consistent oral and documentary evidence on behalf of the 2nd party-workman

that she was working as a daily wage employee in the Bagadia Branch of UCO Bank at Angul since

26.04.2010 after death of her husband. Moreover Ext.-5 series and Ext.-8 series show payment of wages to the

work-woman and receiving of the same after making endorsement on the back side of the payment vouchers as

well as debit vouchers. Further, it is the admission on behalf of the Management that the services of the 2nd party-

workwoman Smt. Kalpana Pradhan was availed by the Bank occasionally as and when basis.

20.

In view of the above discussions and in view of the decisions of the Hon‘ble Supreme Court as

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

105

discussed (supra) the Tribunal finds and holds that the concerned workman Smt. Kalpana Pradhan was a

work-woman under section 2(s) of the I.D. Act and there is an industrial dispute.

21.

At this stage, it is required to mention here that the there is consistent oral and documentary evidence of

the W.W.-1 Smt. Kalpana Pradhan that she had worked under the 1st Party-Management

since 26.04.2010 to 19.01.2016 which is more than the 240 days in a calendar year. However, the M.W.-1 in his

evidence has denied that the 2nd party-workwoman had discharged her duties in the Bank continuously for 240

days in a calendar year.

22.

In this regard it is relevant to mention here that the Ext.-5, shows that 2nd Party-workwoman Smt.

Kalpana Pradhan had received her payment through vouchers by the 1st Party-Management for the period 2011-

2012 and onwards. Further Ext.-8 also shows that she had been paid through debit vouchers for the period

2011-2012 and there-after the payment made through vouchers. Ext.-5 & Ext.-8 establishes the fact that the 2nd

party work-woman was working under the 1st Party-Management otherwise why the 1st Party-Management

had made payment to her through vouchers. After making calculations of the period it appears that the 2nd party-

workwoman Smt. Kalpana Pradhan had worked for more than 240 days in a calendar year.

23.

Further when the 2nd party-workwoman has raised that she had worked for 240 days in a calendar

year then the burden of proof lies on the Management to disprove that she had not worked for more than

240 days in any calendar year. However, the Management has proved Ext.-A which is a representation

submitted by the workman in which it has been categorically mentioned that she had been working in the

Bagadia branch of UCO Bank, Angul since 10.06.2010.

24.

In view of the above discussions the Tribunal finds and holds that the 2nd party-work woman Smt.

Kalpana Pradhan had worked under the 1st Party-Management-Bank for more than 240 days in each

and every calendar year and she had been terminated from service with effect from 19.10.2016.

25.

It is relevant to mention here that the word retrenchment has been defined U/s. 2(oo) of the I.D. Act, the

definition of Continuous service has been mentioned u/s 25-B of I.D. Act and the Condition Precedent to

Retrenchment have been mentioned U/s 25-F of I.D. Act.

Section 2(oo) of the I.D. Act reads as follows:-

Section 2(oo) -―retrenchment‖ means the termination by the employer of the service of a workman for

any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action but

does not include-

(a) Voluntary retirement of the workman; or

(b) Retirement of the workman on reaching the age of superannuation if the contract of employment

between the employer and the workman concerned contains a stipulation in that behalf; or

(bb) Termination of the service of the workman as a result of the non-renewal of contract of

employment between the employer and the workman concerned on its expiry or of such contract being

terminated under a stipulation in that behalf contained therein; or

(c) Termination of the service of a workman on the ground of continued ill-health.

25-B. Definition of continuous service – For the purpose of this Chapter,-

(1) a workman shall be said to be in continuous service for a period if he is, for that period, in

uninterrupted service, including service which may be interrupted on account of sickness or

authorized leave or an accident or a strike which is not illegal, or a lock-out or a cessation of work

which is not due to any fault on the part of the workman;

(2) Where a workman is not in continuous service within the meaning of clause (1) for a period of one

year or six months, he shall be deemed to be in continuous service under an employer-

(a) for a period one year, if the workman, during a period of twelve calendar months preceding the date

with reference to which calculation is to be made, has actually worked under the employer for not

less than –

(i) one hundred and ninety days in the case of a workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

(b)…………………………………..

Section 25-F of the Industrial Dispute Act reads as follows:-

25-F Conditions precedent to retrenchment of workmen- No workman employed in any industry who

106

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

has been in continuous service for not less than one year under an employer shall be retrenched

by that employer until-

(a)

The workman has been given one month‟s notice in writing indicating the reasons for

retrenchment and the period of notice has expired, or the workman has been paid in lieu of

such notice, wages for the period of the notice:

(b)

The workman has been paid, at the time of retrenchment, compensation which shall be

equivalent to fifteen days‟ average pay (for Every completed year of continuous service) or any

part thereof in excess of six months; and

(c)

Notice in the prescribed manner is served on the appropriate Government (or such authority as

may be specified by the appropriate Government by notification in the Official Gazette.)

26.

In this case it has been held earlier (supra) by this Tribunal that the concerned work-woman Smt. Kalpana

Pradhan had worked in the Bagadia Branch of UCO Bank, Angul since 26.04.2010 continuously till 19.01.2016

the date in which she was terminated so she had worked under the management of the Bagadia Branch of UCO

Bank, Angul for more than 240 days in each and every calendar year. Therefore, the concerned work- woman

was in continuous service under the management of Bagadia Branch of UCO Bank, Angul as per definition

mentioned u/s 25-B of I.D. Act. Moreover, there is also evidence that the concerned workman was terminated

from her service w.e.f. 19.01.2016. Further there is no evidence before the Tribunal that the concerned work-

woman had been given any notice in writing indicating the reasons for her termination or had been paid

compensation equivalent to 15 days of average pay as per provision of 25-F of the I.D. Act.

27.

Now, in this case the concerned workman had been engaged on daily wages in the Bagadia Branch of UCO

Bank for about five years and her service was terminated by the Bagadia Branch of UCO Bank on 19.01.2016 without

complying the provisions of section 25-F of the I.D. Act. Hence, the action of the management in terminating the

services of concerned work-woman w.e.f. 19.01.2016 is not legal and justified. Hence the concerned workman

is entitled for relief. In view of such the Issue No. I & II are answered in favour of the 2nd Party-Work-woman.

ISSUE NO. III

28.

After considering all the facts and circumstances it appears that about nine years have elapsed after

termination of the concerned work-woman in the year 2016, so giving relief of reinstatement after long gap would

not serve any purpose.

29.

In view of such fact the Tribunal comes to the conclusion that it would be just, proper and reasonable to

Award lump-sum monetary compensation to the concerned work-woman in place of her claim of reinstatement

and other benefits.

30.

Hence, the management of UCO Bank, Bagadia Branch is directed to pay a sum of Rs. 5,00,000 (five

lakhs) to the concerned workwoman as compensation. The dictates of the award shall be complied with within two

months from the date of publication of the award failing which the 1st Party-Management shall also be liable to pay

interest on the amount of compensation at the rate of 6% per annum.

Accordingly, this Issue is answered in favour of the 2nd Party-Work- woman.

31.

This is the Award of the Tribunal. The reference is answered accordingly.

32.

Office is directed to send the copy of the Award to the Ministry of Labour for publishing the Award in

the official gazette.

33.

Case record be consigned to record room.

Dictated & Corrected by me.

DINESH KUMAR SINGH, Presiding Officer

नई ददल्ली, 14 जनवरी, 2026

का.आ. 34.—औद्योजगक जववाद अजधजनयम (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

के प्रबंधतंत्र के संबद्ध जनयोजकों और अजय के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार

औद्योजगक अजधकरण एवं श्रम न्यायालय-2, , पंचाट (ररफरेन्स न.- 46/2019) को जजसा दक अनुलग्नक में ददखाया

गया हज, प्रकाजित करती हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/04/2026-आईआर( )]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

107

S.O. 34.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. 46/2019) of the Central Government Industrial Tribunal

cum Labour Court-2, Chandigarh as shown in the Annexure, in the Industrial dispute between the employers in

relation to IOCL Refinery and Shri Ajay Kumar which was received along with soft copy of the award by the

Central Government on 14.01.2026.

[No. Z-16025/04/2026-IR(M)]

SALONI, Dy. Director

ANNEXURE

In the Central Government Industrial Tribunal-cum-Labour Court-II, Chandigarh.

Present: Mr. Kamal Kant, Presiding Officer.

ID No.46/2019

Registered on:- 05.08.2019

Ajay Kumar S/o Sh. Baidnath Raj Janardan, R/o Village Singhpura Sithana, Tehsil Madlauda, District

Panipat.

….……....Workman

Versus

1.

The Manager, IOCL Refinery, Bohali, Panipat.

2.

The Constructer, Ambedkar Construction, 4 Vishwas Duplex, Mahadev Nagar at Ladraa,

Vadodara, Gujrat.

…..Respondents

Present: Sh. Sanjay Kohli, AR for workman.

Sh. Paul S Saini, AR for respondent no.1.

Respondent no.2 already ex parte.

Award

Passed on:- 29.12.2025

1.

The workman Sh. Ajay Kumar has filed the present claim petition directly under Section 2A of

the Industrial Disputes Act, 1947 (hereinafter called as the Act) claiming his reinstatement with full back

wages along with consequential benefits.

2.

It is maintained in the claim petition by the workman that he was appointed as a Rigger under

respondent no.1 through respondent no.2 and worked as such w.e.f. 23.10.2015 to 06.09.2017. His services

were terminated on 07.09.2017 without assigning any reasonable cause. He was drawing Rs.11,500/- per

month as salary. He has completed more than 240 days in a calendar year from the date of termination. No

notice was given to him and no inquiry was held by the respondents at the time of his termination. The

respondents have also appointed juniors to him namely Jai Parkash and Satpal, thus contravened the

Section 25H of the Act. He represented against his termination, but to no effect. It is prayed that he may be

reinstated with full back wages and all consequential benefits.

3.

Notice of the claim petition was given to the respondents.

4.

Respondent no.1 filed reply maintaining therein that the workman was never employed by

respondent no.1. Respondent no.1 being a Public Sector Undertaking employs persons in accordance with

the recruitment Rules/Regulations/Policies/Instruction of the respondent corporation. The workman never

applied for any post with respondent no.1 nor he appeared for any written test or interview or trade test for

recruitment of any post. The workman was never called for any interview, nor he ever underwent any

medical test. He was never issued any appointment letter or employee number. There is no relationship of

employer-employee between the management and the workman as the workman was engaged by the

contractor i.e. respondent no.2. The workman by means of his frivolous and malafide intentions is trying to

gain a back door entry into a public employment. The management award the contract for work, which is

non-perennial in nature, non-core, not of sufficient duration, incidental/temporary. After awarding the

contract, the contractor employs his own workers to carry out the contract and the management has

absolutely no role in that process. The contract was awarded to the respondent no.2 by executing a formal

108

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

contract dated 31.07.2015 for 12 months and on expiry of the said contract, the same was duly extended for

a further period of 12 months on the same terms and conditions and was expired on 31.05.2017. The

contractor exercises the complete administrative control and supervision over the workers employed by

him for the performance of his contractual obligation and respondent no.1 has no role to play in the

process. The entire service conditions viz. selection, recruitment, appointment, attendance, duty roaster,

weekly off, shift, leave, wages, ESI, EPF, bonus etc. are managed by the contractor. Hence, question of

terminating the services of workman or assigning any reasons by respondent no.1 does not arise at all as

the workman was engaged by respondent no.2. Respondent no.2 had engaged/employed less than 20

workmen during the entire tenure of the contract, therefore, he was not required to obtain any license for

engaging/employing workmen for performing the said contract. It is prayed that the claim may be rejected

with cost.

5.

Respondent no.2 also filed written statement maintaining therein that it had contract (work

order) with respondent no.1. As per work order no.24406167, the contract was completed and it had paid

all the wages to the labour and nothing is pending due of any labour. It is prayed that the case may be

dismissed.

Evidence of workman:-

6.

In order to prove case, workman examined himself as WW1 and tendered into evidence his

affidavit Ex.WW1/A along with documents Ex.WW1/1 (Bank Account Statement), Ex.WW1/2 (entry cum

safety pass for contractor‘s workers) and Mark A (attendance card). AR for workman closed the evidence

on behalf of workman on 17.07.2023.

Evidence of respondent no.1:-

7.

Thereafter, respondent no.1 has examined Sh. P K Sinha, Chief General Manager (Project),

Indian Oil Corporation Limited Panipat Refinery as MW1, who tendered her affidavit as MW1/A.

Thereafter, ld. counsel for management closed evidence on 04.04.2025 on behalf of respondent no.1. He

relied upon the following documents:-

Sr. no.

Document

Dated

Exhibit

1.

Certificate of registration

21.08.1995

M-1

2.

Letter of acceptance

28.03.2015

M-2

3.

Work order

28.03.2015

M-3

4.

Contract agreement

31.07.2015

M-4

5.

Letter of extension of contract

29.04.2016

M-5

6.

Register of wages

June 2015

M-6

7.

Register of wages

March 2017

M-7

8.

Register of wages

April 2017

M-8

8.

It is pertinent to mention here that respondent no.2 already ex parte on 04.04.2025.

9.

AR for workman contended that workman worked w.e.f. 23.10.2015 to 06.09.2017 under the

respondent no.1 through respondent no.2 and he was removed from service without assigning any reason

on 07.09.2017. He was getting salary of Rs.11,500/- per month. The workman has completed more than

240 days in a calendar year preceding the date of termination and the termination is in violation of Section

25F of the Act. Further, in place of him, Parkash and Satpal were appointed, which is in violation of

Section 25H of the Act.

10.

On the other hand, AR for respondent no.1 contended that workman was never engaged by

respondent no.1 and was engaged through contractor i.e. respondent no.2, who was awarded contract by

respondent no.1 for its work. Aforesaid contractor is not having license to supply the work force as it was

engaging less than 20 employees at the time of contract. Thus, no liability of respondent no.1 is made out

and therefore, workman is not entitled for any claim from respondent no.1. Whatever claim made out by

the workman is against respondent no.2 i.e. contractor, who has already been proceeded ex parte due to

non-appearance.

11.

I have given due consideration to the arguments advanced by AR for both the parties.

12.

The first contention regarding the claimant is that whether he comes within the definition of

workman as is defined in Section 2(s) of the Act. I may mention that claimant was appointed as rigger as

per his claim petition and affidavit submitted before the Tribunal. In plain words the claimant was

performing his duties as labourer/unskilled worker. He was not in supervisory or administrative post

requiring him to perform only administrative duties. While interpreting Section 2(s) Hon‘ble Supreme

Court in the case of Devinder Singh Vs. Municipal Council, Sanaur, AIR 2011 Supreme Court 2532, has

observed as follows:-

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

109

“The source of employment, the quantum of recruitment, the terms & conditions of

employment/ contract of service, the quantum of wages/ pay and mode of payment

are not at all relevant for deciding whether or not a person is a workman within the

meaning of Section 2(s) of the Act. The definition of workman also does not make

any distinction between full time and part time employee or a person appointed on

contract basis. There is nothing in the plain language of Section 2(s) from which it

can be inferred that only person employed on regular basis or a person employed for

doing whole time job is a workman and the one employed on temporary, part time or

contract basis on fixed wages or as a casual employee or for doing duty for fixed

hours is not a workman.”

13.

Thus Hon‘ble Supreme Court has clarified that the definition of workman also does not make

any distinction between full time or part time employee or a person appointed on contract basis. There is

nothing in plain language of Section 2(s) from which it can be infer that only person employed on regular

basis or a person employed for doing whole time job is a workman and the one employed on temporary,

part time or contract basis on fixed wages or as a casual employee or for doing duty for fixed hours is not a

workman. In view of the ratio of law enunciated in the above ruling, in my considered opinion the claimant

herein admittedly falls within the definition of ‗workman‘ under Section 2(s) of the Act.

14.

The Hon‘ble Supreme Court after analyzing the catena of cases has laid down in Balwant Raj

Saluja Vs. Air India Limited in Civil Appeal No.10266 dated 25.08.2014, two well recognized tests to find

out whether the labours are the contract employees of the principal employer are:-

1) Whether the principal employer pays the salary instead of contractor and

2) Whether the principal employer controls and supervise the work of the employees?

15.

The facts regarding the payment of salary by the management or contractor has not been stated

in the claim petition of the workman. In fact, claim petition is totally silent regarding the payment of

wages, salary, letter of appointment by respondent no.1 or by contractor or anything likewise. Thus, this

basic feature for holding the relationship of employer and employee i.e. between respondent no.1 and

workman totally lacking not in the pleading but also in the evidence submitted by the workman. However,

MW1 Sh. PK Sinha in his cross examination has stated that contract for project was given to the

respondent no.2 i.e. Ambedkar Construction. The contract was awarded for the period March 2015 to

March 2017. Payment to the employees of the contractor was paid by the contractor. EPF and ESI were

paid by the contractor and not by the respondent no.1. Supervision and control of workers remained with

the contractor. Thus, it was the respondent no.2 who was required to ensure the payment of wages to the

workers engaged by him from time to time.

16.

It is also added here that respondent no.1 has also placed on record documents Ex.M1 to Ex.M8.

Ex.M4 is the contract agreement and Ex.M5 is the extension of contract and Ex.M6 to Ex.M8 are the

register of wages. Thus, from the adduced evidence, it emerges that workman was paid salary by the

contractor and he was being controlled and supervised by the contractor. Thus, there does not exist any

relationship of employee and employer between the workman and respondent no.1. However, there exists

relation of employee and employer between the workman and respondent no.2.

17.

It is also added here that as per definition of contractor as given in the Section 2(c) of the

Contract Labour (Regulation and Abolition) Act, 1970 (hereinafter called as Contract Act), respondent no.2

was supplying contract labour to the respondent no.1. Thus, he would fall under the definition of

contractor. Section 2(c) of the Contract Act is reproduced as under:

“Contractor”, in relation to an establishment, means a person who undertakes to

produce a given result for the establishment, other than a mere supply of goods or

articles of manufacture to such establishment, through contract labour or who supplies

contract labour for any work of the establishment and includes a sub-contractor;

18.

The Hon‘ble Apex Court in the case of Banglore Water Supply & Sewerage Board Vs. A.

Rajappa 1978(36) FLR 266 dealt at length with the ambit and scope of expression ―industry‖ as defined in

Section 2(j) of the Act, and has laid down triple test for determining whether a particular establishment is

industry or not. The triple test is where (a) systematic activity (b) organized by cooperation between

employer and employee (the direct and substantial element is commercial (c) for the production or

distribution of goods and services to calculated to satisfy human wants and wishes prima facie is an

―Industry‖ in that enterprise. The workman was doing work i.e. systematic activity for respondent no.1 at

the asking of respondent no.2 and there was cooperation between the workman and respondent no.2, which

involve substantial commercial element for rendering service to satisfy human wants. Thus, respondent

no.2 would be termed as industry.

19.

Workman in his deposition has clearly stated that there was non-compliance of Section 25F of

the Act. To prove this, he come to the witness box and stated that he has worked with Ambedkar

110

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Construction since September 2015 to September 2017. Thus, there was non-compliance of Section 25F of

the Act and for that respondent no.2 is liable. However, it is added here that currently contractor is not

working with the respondent no.2. Thus only remedy left with the Tribunal is to grant compensation to the

workman.

20.

In view of above discussion, keeping in view the tenure of service rendered by the workman and

salary given to him during the period of his stay with the contractor and non-compliance of Section 25F of

the Act, this Tribunal is of the considered opinion that workman is entitled for compensation of Rs.50,000/-

and respondent no.2 is directed to pay the workman Rs.50,000/- within one month from the date of the

notification of the award failing which the respondent no.2 shall further pay interest @6% per annum from

the date of award till the date of making payment.

21.

Let copy of this award be sent to Central Government for publication as required under Section

17 of the Act.

KAMAL KANT, Presiding Officer

नई ददल्ली, 14 जनवरी, 2026

का.आ. 35.—औद्योजगक जववाद अजधजनयम (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

के प्रबंधतंत्र के संबद्ध जनयोजकों और के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार

औद्योजगक अजधकरण एवं श्रम न्यायालय-2, , पंचाट (ररफरेन्स न.- 48/2019) को जजसा दक अनुलग्नक में ददखाया

गया हज, प्रकाजित करती हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/04/2026-आईआर( )-1]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 35.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. 48/2019) of the Central Government Industrial

Tribunal cum Labour Court-2, Chandigarh as shown in the Annexure, in the Industrial dispute between the

employers in relation to IOCL Refinery and Shri Umesh Kumar which was received along with soft copy of the

award by the Central Government on 14.01.2026.

[No. Z-16025/04/2026-IR(M)-1]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT-II,

CHANDIGARH.

Present: Mr. Kamal Kant, Presiding Officer.

ID No.48/2019

Registered on:- 05.08.2019

Umesh Kumar S/o Sh. Raj Narayan Yadav, R/o Village Singhpura Sithana, Tehsil Madlauda, District

Panipat.

….……....Workman

Versus

1. The Manager, IOCL Refinery, Bohali, Panipat.

2. The Constructer, Ambedkar Construction, 4 Vishwas Duplex, Mahadev Nagar at Ladraa, Vadodara, Gujrat.

…..Respondents

Present: Sh. Sanjay Kohli, AR for workman.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

111

Sh. Paul S Saini, AR for respondent no.1.

Respondent no.2 already ex parte.

Award

Passed on:-29.12.2025

1.

The workman Sh. Umesh Kumar has filed the present claim petition directly under Section 2A

of the Industrial Disputes Act, 1947 (hereinafter called as the Act) claiming his reinstatement with full

back wages along with consequential benefits.

2.

It is maintained in the claim petition by the workman that he was appointed as a Rigger under

respondent no.1 through respondent no.2 and worked as such w.e.f. 23.10.2015 to 06.09.2017. His services

were terminated on 07.09.2017 without assigning any reasonable cause. He was drawing Rs.11,500/- per

month as salary. He has completed more than 240 days in a calendar year from the date of termination. No

notice was given to him and no inquiry was held by the respondents at the time of his termination. The

respondents have also appointed juniors to him namely Jai Parkash and Satpal, thus contravened the

Section 25H of the Act. He represented against his termination, but to no effect. It is prayed that he may be

reinstated with full back wages and all consequential benefits.

3.

Notice of the claim petition was given to the respondents.

4.

Respondent no.1 filed reply maintaining therein that the workman was never employed by

respondent no.1. Respondent no.1 being a Public Sector Undertaking employs persons in accordance with

the recruitment Rules/Regulations/Policies/Instruction of the respondent corporation. The workman never

applied for any post with respondent no.1 nor he appeared for any written test or interview or trade test for

recruitment of any post. The workman was never called for any interview, nor he ever underwent any

medical test. He was never issued any appointment letter or employee number. There is no relationship of

employer-employee between the management and the workman as the workman was engaged by the

contractor i.e. respondent no.2. The workman by means of his frivolous and malafide intentions is trying to

gain a back door entry into a public employment. The management award the contract for work, which is

non-perennial in nature, non-core, not of sufficient duration, incidental/temporary. After awarding the

contract, the contractor employs his own workers to carry out the contract and the management has

absolutely no role in that process. The contract was awarded to the respondent no.2 by executing a formal

contract dated 31.07.2015 for 12 months and on expiry of the said contract, the same was duly extended for

a further period of 12 months on the same terms and conditions and was expired on 31.05.2017. The

contractor exercises the complete administrative control and supervision over the workers employed by

him for the performance of his contractual obligation and respondent no.1 has no role to play in the

process. The entire service conditions viz. selection, recruitment, appointment, attendance, duty roaster,

weekly off, shift, leave, wages, ESI, EPF, bonus etc. are managed by the contractor. Hence, question of

terminating the services of workman or assigning any reasons by respondent no.1 does not arise at all as

the workman was engaged by respondent no.2. Respondent no.2 had engaged/employed less than 20

workmen during the entire tenure of the contract, therefore, he was not required to obtain any license for

engaging/employing workmen for performing the said contract. It is prayed that the claim may be rejected

with cost.

5.

Respondent no.2 also filed written statement maintaining therein that it had contract (work

order) with respondent no.1. As per work order no.24406167, the contract was completed and it had paid

all the wages to the labour and nothing is pending due of any labour. It is prayed that the case may be

dismissed.

Evidence of workman:-

6.

In order to prove case, workman examined himself as WW1 and tendered into evidence his

affidavit Ex.WW1/A along with documents Ex.WW1/1 (Bank Account Statement), Ex.WW1/2 (entry cum

safety pass for contractor‘s workers) and Mark A (attendance card). AR for workman closed the evidence

on behalf of workman on 17.07.2023.

Evidence of respondent no.1:-

7.

Thereafter, respondent no.1 has examined Sh. P K Sinha, Chief General Manager (Project),

Indian Oil Corporation Limited Panipat Refinery as MW1, who tendered her affidavit as MW1/A.

Thereafter, ld. counsel for management closed evidence on 04.04.2025 on behalf of respondent no.1. He

relied upon the following documents:-

Sr. no.

Document

Dated

Exhibit

1.

Certificate of registration

21.08.1995

M-1

112

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

2.

Letter of acceptance

28.03.2015

M-2

3.

Work order

28.03.2015

M-3

4.

Contract agreement

31.07.2015

M-4

5.

Letter of extension of contract

29.04.2016

M-5

6.

Register of wages

June 2015

M-6

7.

Register of wages

March 2017

M-7

8.

Register of wages

April 2017

M-8

8.

It is pertinent to mention here that respondent no.2 already ex parte on 04.04.2025.

9.

AR for workman contended that workman worked w.e.f. 23.10.2015 to 06.09.2017 under the

respondent no.1 through respondent no.2 and he was removed from service without assigning any reason

on 07.09.2017. He was getting salary of Rs.11,500/- per month. The workman has completed more than

240 days in a calendar year preceding the date of termination and the termination is in violation of Section

25F of the Act. Further, in place of him, Jai Parkash and Satpal were appointed, which is in violation of

Section 25H of the Act.

10.

On the other hand, AR for respondent no.1 contended that workman was never engaged by

respondent no.1 and was engaged through contractor i.e. respondent no.2, who was awarded contract by

respondent no.1 for its work. Aforesaid contractor is not having license to supply the work force as it was

engaging less than 20 employees at the time of contract. Thus, no liability of respondent no.1 is made out

and therefore, workman is not entitled for any claim from respondent no.1. Whatever claim made out by

the workman is against respondent no.2 i.e. contractor, who has already been proceeded ex parte due to

non-appearance.

11.

I have given due consideration to the arguments advanced by AR for both the parties.

12.

The first contention regarding the claimant is that whether he comes within the definition of

workman as is defined in Section 2(s) of the Act. I may mention that claimant was appointed as rigger as

per his claim petition and affidavit submitted before the Tribunal. In plain words the claimant was

performing his duties as labourer/unskilled worker. He was not in supervisory or administrative post

requiring him to perform only administrative duties. While interpreting Section 2(s) Hon‘ble Supreme

Court in the case of Devinder Singh Vs. Municipal Council, Sanaur, AIR 2011 Supreme Court 2532, has

observed as follows:-

“The source of employment, the quantum of recruitment, the terms & conditions of

employment/ contract of service, the quantum of wages/ pay and mode of payment

are not at all relevant for deciding whether or not a person is a workman within the

meaning of Section 2(s) of the Act. The definition of workman also does not make

any distinction between full time and part time employee or a person appointed on

contract basis. There is nothing in the plain language of Section 2(s) from which it

can be inferred that only person employed on regular basis or a person employed for

doing whole time job is a workman and the one employed on temporary, part time or

contract basis on fixed wages or as a casual employee or for doing duty for fixed

hours is not a workman.”

13.

Thus Hon‘ble Supreme Court has clarified that the definition of workman also does not make

any distinction between full time or part time employee or a person appointed on contract basis. There is

nothing in plain language of Section 2(s) from which it can be infer that only person employed on regular

basis or a person employed for doing whole time job is a workman and the one employed on temporary,

part time or contract basis on fixed wages or as a casual employee or for doing duty for fixed hours is not a

workman. In view of the ratio of law enunciated in the above ruling, in my considered opinion the claimant

herein admittedly falls within the definition of ‗workman‘ under Section 2(s) of the Act.

14.

The Hon‘ble Supreme Court after analyzing the catena of cases has laid down in Balwant Raj

Saluja Vs. Air India Limited in Civil Appeal No.10266 dated 25.08.2014, two well recognized tests to find

out whether the labours are the contract employees of the principal employer are:-

1) Whether the principal employer pays the salary instead of contractor and

2) Whether the principal employer controls and supervise the work of the employees?

15.

The facts regarding the payment of salary by the management or contractor has not been stated

in the claim petition of the workman. In fact, claim petition is totally silent regarding the payment of

wages, salary, letter of appointment by respondent no.1 or by contractor or anything likewise. Thus, this

basic feature for holding the relationship of employer and employee i.e. between respondent no.1 and

workman totally lacking not in the pleading but also in the evidence submitted by the workman. However,

MW1 Sh. PK Sinha in his cross examination has stated that contract for project was given to the

respondent no.2 i.e. Ambedkar Construction. The contract was awarded for the period March 2015 to

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

113

March 2017. Payment to the employees of the contractor was paid by the contractor. EPF and ESI were

paid by the contractor and not by the respondent no.1. Supervision and control of workers remained with

the contractor. Thus, it was the respondent no.2 who was required to ensure the payment of wages to the

workers engaged by him from time to time.

16.

It is also added here that respondent no.1 has also placed on record documents Ex.M1 to Ex.M8.

Ex.M4 is the contract agreement and Ex.M5 is the extension of contract and Ex.M6 to Ex.M8 are the

register of wages. Thus, from the adduced evidence, it emerges that workman was paid salary by the

contractor and he was being controlled and supervised by the contractor. Thus, there does not exist any

relationship of employee and employer between the workman and respondent no.1. However, there exists

relation of employee and employer between the workman and respondent no.2.

17.

It is also added here that as per definition of contractor as given in the Section 2(c) of the

Contract Labour (Regulation and Abolition) Act, 1970 (hereinafter called as Contract Act), respondent no.2

was supplying contract labour to the respondent no.1. Thus, he would fall under the definition of

contractor. Section 2(c) of the Contract Act is reproduced as under:

“Contractor”, in relation to an establishment, means a person who undertakes to

produce a given result for the establishment, other than a mere supply of goods or

articles of manufacture to such establishment, through contract labour or who supplies

contract labour for any work of the establishment and includes a sub-contractor;

18.

The Hon‘ble Apex Court in the case of Banglore Water Supply & Sewerage Board Vs. A.

Rajappa 1978(36) FLR 266 dealt at length with the ambit and scope of expression ―industry‖ as defined in

Section 2(j) of the Act, and has laid down triple test for determining whether a particular establishment is

industry or not. The triple test is where (a) systematic activity (b) organized by cooperation between

employer and employee (the direct and substantial element is commercial (c) for the production or

distribution of goods and services to calculated to satisfy human wants and wishes prima facie is an

―Industry‖ in that enterprise. The workman was doing work i.e. systematic activity for respondent no.1 at

the asking of respondent no.2 and there was cooperation between the workman and respondent no.2, which

involve substantial commercial element for rendering service to satisfy human wants. Thus, respondent

no.2 would be termed as industry.

19.

Workman in his deposition has clearly stated that there was non-compliance of Section 25F of

the Act. To prove this, he come to the witness box and stated that he has worked with Ambedkar

Construction since 23.10.2015 to September 2017. Thus, there was non-compliance of Section 25F of the

Act and for that respondent no.2 is liable. However, it is added here that currently contractor is not working

with the respondent no.2. Thus only remedy left with the Tribunal is to grant compensation to the

workman.

20.

In view of above discussion, keeping in view the tenure of service rendered by the workman and

salary given to him during the period of his stay with the contractor and non-compliance of Section 25F of

the Act, this Tribunal is of the considered opinion that workman is entitled for compensation of Rs.50,000/-

and respondent no.2 is directed to pay the workman Rs.50,000/- within one month from the date of the

notification of the award failing which the respondent no.2 shall further pay interest @6% per annum from

the date of award till the date of making payment.

21.

Let copy of this award be sent to Central Government for publication as required under Section

17 of the Act.

KAMAL KANT, Presiding Officer

नई ददल्ली, 14 जनवरी, 2026

का.आ. 36.—औद्योजगक जववाद अजधजनयम (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

य ऑय ; ज के प्रबंधतंत्र के संबद्ध जनयोजकों और ज

के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण एवं श्रम न्यायालय-2, , पंचाट (ररफरेन्स

न.- 02/2021) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित करती हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ

14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/04/2026-आईआर( )-2]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

114

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

S.O. 36.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. 02/2021) of the Central Government Industrial

Tribunal cum Labour Court-2, Chandigarh as shown in the Annexure, in the Industrial dispute between the

employers in relation to Indian Oil Corporation Limited; M/s Indus Project Limited and Shri Rajesh Kumar

which was received along with soft copy of the award by the Central Government on 14.01.2026.

[No. Z-16025/04/2026-IR(M)-2]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT-II,

CHANDIGARH.

Present: Mr. Kamal Kant, Presiding Officer.

ID No.02/2021

Registered on:- 21.04.2021

Rajesh Kumar S/o Sh. Rajender Kumar, R/o Village Ahar, Tehsil Israna, District Panipat.

….……....Workman

Versus

1.

Indian Oil Corporation Limited, Refinery, Panipat through its Managing Director.

2.

M/s Indus Project Ltd., Administration Office, Marol Naka, Andheri Kurla Road, Mumbai-

400059 through Managing Director.

…..Respondents

Present: Sh. Sanjay Kohli, AR for workman.

Sh. Paul S Saini, AR for respondent no.1.

Respondent no.2 already ex parte.

Award

Passed on:- 30.12.2025

1.

The workman Sh. Rajesh Kumar has filed the present claim petition directly under Section 2A

of the Industrial Disputes Act, 1947 (hereinafter called as the Act) claiming his reinstatement with full

back wages along with consequential benefits.

2.

It is maintained in the claim petition by the workman that he was appointed as a feeter under

respondent no.1 through respondent no.2 and worked as such w.e.f. 09.04.2016 to 31.08.2019. His services

were terminated on 01.09.2019 without assigning any reasonable cause. He was drawing Rs. 17,600/- per

month as salary. He has completed more than 240 days in a calendar year from the date of termination. No

notice was given to him and no inquiry was held by the respondents at the time of his termination. The

respondents have also appointed juniors to him namely Ram Kumar and Deepak, thus contravened the

Section 25F and Section 25H of the Act. He represented against his termination, but to no effect. It is

prayed that he may be reinstated with full back wages and all consequential benefits.

3.

Notice of the claim petition was given to the respondents.

4.

Respondent no.1 filed reply maintaining therein that the workman was never employed by

respondent no.1. Respondent no.1 being a Public Sector Undertaking employs persons in accordance with

the recruitment Rules/Regulations/Policies/Instruction of the respondent corporation. The workman never

applied for any post with respondent no.1 nor he appeared for any written test or interview or trade test for

recruitment of any post. The workman was never called for any interview, nor he ever underwent any

medical test. He was never issued any appointment letter or employee number. There is no relationship of

employer-employee between the management and the workman as the workman was engaged by the

contractor i.e. respondent no.2. The workman by means of his frivolous and malafide intentions is trying to

gain a back door entry into a public employment. The management award the contract for work, which is

non-perennial in nature, non-core, not of sufficient duration, incidental/temporary. After awarding the

contract, the contractor employs his own workers to carry out the contract and the management has

absolutely no role in that process. The contract was awarded to the respondent no.2 by executing a formal

contract dated 26.06.2015 for 12 months and on expiry of the said contract, the same was duly extended for

a further period of 12 months on the same terms and conditions and was expired on 31.05.2017. The

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

115

contractor exercises the complete administrative control and supervision over the workers employed by

him for the performance of his contractual obligation and respondent no.1 has no role to play in the

process. The entire service conditions viz. selection, recruitment, appointment, attendance, duty roaster,

weekly off, shift, leave, wages, ESI, EPF, bonus etc. are managed by the contractor. Hence, question of

terminating the services of workman or assigning any reasons by respondent no.1 does not arise at all as

the workman was engaged by respondent no.2. Respondent no.2 is having its independent ESI code

number and independent PF Code No.HRKNL1396939000. It is prayed that the claim may be rejected with

cost.

Evidence of workman:-

5.

In order to prove case, workman examined himself as WW1 and tendered into evidence his

affidavit Ex.WW1/A along with documents Ex.WW1/1 (Entry cum safety pass for contractor‘s worker)

and Ex.WW1/2 (Bank Account Statement). AR for workman closed the evidence on behalf of workman on

12.11.2024.

Evidence of respondent no.1:-

6.

Thereafter, respondent no.1 has examined Sh. Ujjwal Mishra, Chief Employee Relations

Manager, Indian Oil Corporation Limited Panipat Refinery as MW1, who tendered her affidavit as

MW1/A. Thereafter, ld. counsel for management closed evidence on 07.08.2025 on behalf of respondent

no.1.

Sr. no.

Document

Dated

Exhibit

1.

Certificate of registration

27.03.2025

M-1

2.

Fax of acceptance

06.04.2015

M-2

3.

Detailed letter of acceptance

12.05.2025

M-3

4.

Work order

17.08.2015

M-4

5.

Contract agreement

26.06.2015

M-5

6.

Undertaking by contractor

28.07.2017

M-6

7.

Undertaking by contractor

15.05.2018

M-7

8.

General power of attorney

28.05.2024

M-8

7.

It is pertinent to mention here that respondent no.2 already ex parte on 07.07.2023.

8.

AR for workman contended that workman worked w.e.f. 09.04.2016 to 31.08.2019 under the

respondent no.1 through respondent no.2 and he was removed from service without assigning any reason

on 01.09.2019. He was getting salary of Rs.17,600/- per month. The workman has completed more than

240 days in a calendar year preceding the date of termination and the termination is in violation of Section

25F of the Act. Further, in place of him, Ram Kumar and Deepak were appointed, which is in violation of

Section 25H of the Act.

9.

On the other hand, AR for respondent no.1 contended that workman was never engaged by

respondent no.1 and was engaged through contractor i.e. respondent no.2, who was awarded contract by

respondent no.1 for its work and agreement in this regard is Ex.M5. Aforesaid contractor is having license

to supply the work force under Section 12(1) of the Contract Labour (Regulation and Abolition) Act, 1970.

Respondent no.2 was having independent ESI number and also PF Code No.HRKNL1396939000. Thus,

no liability of respondent no.1 is made out and therefore, workman is not entitled for any claim from

respondent no.1. Whatever claim made out by the workman is against respondent no.2 i.e. contractor, who

has already been proceeded ex parte due to non-appearance.

10.

I have given due consideration to the arguments advanced by AR for both the parties.

11.

The first contention regarding the claimant is that whether he comes within the definition of

workman as is defined in Section 2(s) of the Act. I may mention that claimant was appointed as fitter as per

his claim petition and affidavit submitted before the Tribunal. In plain words the workman was performing

his duties as labourer/unskilled worker. He was not in supervisory or administrative post requiring him to

perform only administrative duties. While interpreting Section 2(s) Hon‘ble Supreme Court in the case of

Devinder Singh Vs. Municipal Council, Sanaur, AIR 2011 Supreme Court 2532, has observed as

follows:-

“The source of employment, the quantum of recruitment, the terms & conditions of

employment/ contract of service, the quantum of wages/ pay and mode of payment

are not at all relevant for deciding whether or not a person is a workman within the

meaning of Section 2(s) of the Act. The definition of workman also does not make

any distinction between full time and part time employee or a person appointed on

contract basis. There is nothing in the plain language of Section 2(s) from which it

can be inferred that only person employed on regular basis or a person employed for

doing whole time job is a workman and the one employed on temporary, part time or

contract basis on fixed wages or as a casual employee or for doing duty for fixed

hours is not a workman.”

116

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

12.

Thus Hon‘ble Supreme Court has clarified that the definition of workman also does not make

any distinction between full time or part time employee or a person appointed on contract basis. There is

nothing in plain language of Section 2(s) from which it can be infer that only person employed on regular

basis or a person employed for doing whole time job is a workman and the one employed on temporary,

part time or contract basis on fixed wages or as a casual employee or for doing duty for fixed hours is not a

workman. In view of the ratio of law enunciated in the above ruling, in my considered opinion the claimant

herein admittedly falls within the definition of ‗workman‘ under Section 2(s) of the Act.

13.

The Hon‘ble Supreme Court after analyzing the catena of cases has laid down in Balwant Raj

Saluja Vs. Air India Limited in Civil Appeal No.10266 dated 25.08.2014, two well recognized tests to find

out whether the labours are the contract employees of the principal employer are:-

1) Whether the principal employer pays the salary instead of contractor and

2) Whether the principal employer controls and supervise the work of the employees?

14.

The facts regarding the payment of salary by the management or contractor has not been stated

in the claim petition of the workman. In fact, claim petition is totally silent regarding the payment of

wages, salary, letter of appointment by respondent no.1 or by contractor or anything likewise. Thus, this

basic feature for holding the relationship of employer and employee i.e. between respondent no.1 and

workman totally lacking not in the pleading but also in the evidence submitted by the workman. However,

MW1 Sh. Ujjwal Mishra in his cross examination has stated that contract for project was given to the

respondent no.2 i.e. M/s Indus Project Ltd. The contract was awarded for the period from April 2015 for 18

months which was extended from time to time and is still continuing. Payment to the employees of the

contractor was paid by the contractor. EPF and ESI were paid by the contractor and not by the respondent

no.1. Supervision and control of workers remained with the contractor. Thus, it was the respondent no.2,

who was required to ensure the payment of wages to the workers engaged by him from time to time.

15.

It is also added here that respondent no.1 has also placed on record documents Ex.M1 to Ex.M8.

Ex.M5 is the contract agreement. Thus, from the adduced evidence, it emerges that workman was paid

salary by the contractor and he was being controlled and supervised by the contractor. Thus, there does not

exist any relationship of employee and employer between the workman and respondent no.1. However,

there exists relation of employee and employer between the workman and respondent no.2.

16.

It is also added here that as per definition of contractor as given in the Section 2(c) of the

Contract Labour (Regulation and Abolition) Act, 1970 (hereinafter called as Contract Act), respondent no.2

was supplying contract labour to the respondent no.1. Thus, he would fall under the definition of

contractor. Section 2(c) of the Contract Act is reproduced as under:

“Contractor”, in relation to an establishment, means a person who undertakes to

produce a given result for the establishment, other than a mere supply of goods or

articles of manufacture to such establishment, through contract labour or who supplies

contract labour for any work of the establishment and includes a sub-contractor;

17.

The Hon‘ble Apex Court in the case of Banglore Water Supply & Sewerage Board Vs. A.

Rajappa 1978(36) FLR 266 dealt at length with the ambit and scope of expression ―industry‖ as defined in

Section 2(j) of the Act, and has laid down triple test for determining whether a particular establishment is

industry or not. The triple test is where (a) systematic activity (b) organized by cooperation between

employer and employee (the direct and substantial element is commercial (c) for the production or

distribution of goods and services to calculated to satisfy human wants and wishes prima facie is an

―Industry‖ in that enterprise. The workman was doing work i.e. systematic activity for respondent no.1 at

the asking of respondent no.2 and there was cooperation between the workman and respondent no.2, which

involve substantial commercial element for rendering service to satisfy human wants. Thus, respondent

no.2 would be termed as industry.

18.

Workman in his deposition has clearly stated that there was non-compliance of Section 25F of

the Act. To prove this, he has stated in his affidavit that he has worked with respondent no.2 from

09.04.2016 to 31.08.2019. Thus, there was non-compliance of Section 25F of the Act and for that

respondent no.2 is liable. Since, respondent no.2 is still working with the respondent no.1, so due to non-

compliance of Section 25F of the Act, workman is entitled for reinstatement.

19.

Hon'ble Apex Court in the case General Manager, Haryana Roadways Vs. Rudan Singh,

reported as 2005 SCC (L&S)_716 observed as under :-

"8. There is no rule of thumb that in every case where the Industrial Tribunal gives a

finding that the termination of service was in violation of Section 25-F of the Act, entire

back wages should be awarded. A host of factors like the manner and method of selection

appointment i.e. whether after proper and advertisement of the vacancy or inviting

applications from the employment exchange, nature of appointment namely, whether ad

hoc, short term, daily wage, temporary or permanent in character, any special

qualification required for the job and the like should be weighed and balanced in taking

a decision regarding award of back wages. One of the important factors which has to be

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

117

taken into consideration is the length of service, which the workman had rendered with

the employer. If the workman has rendered a considerable period of service and his

services are wrongfully terminated, he may be awarded full or partial back wages

keeping in view the fact that at this age and the qualification possessed by him he may

not be in a position to get another employment. However, where the total length of

service rendered by a workman is very small, the award of back wages for the complete

period i.e. from the date of termination till the date of the award, which our experience

shows is often quite large, would be wholly inappropriate. A regular service of

permanent character cannot be compared to short or intermittent daily wage employment

though it may be for 240 days in a calendar year.”

20.

Having regard to the legal position as discussed above and the facts, this Tribunal is of the firm

view that the workman has been terminated without following the procedure laid down under Section 25F

of the Act. It is pertinent to mention that he has specifically not pleaded that he is not working anywhere.

Moreover, nothing has been asked from this witness regarding his employment/termination as such, it

cannot be decided conclusively with respect to his future employment after the alleged termination. Hence,

the workman is entitled for reinstatement into service on the same post from the date of his termination

with 50% back wages in as much as termination of workman is per-se illegal. Respondent no.2 is directed

to pay 50% back wages and reinstate the workman forthwith.

21.

Let copy of this award be sent to Central Government for publication as required under Section

17 of the Act.

KAMAL KANT, Presiding Officer

नई ददल्ली, 14 जनवरी, 2026

का.आ. 37.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय

सरकार य अ ऑ य ; ज य ; य ; अ

के प्रबंधतंत्र के संबद्ध जनयोजकों और ज य य , य

य के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण एवं श्रम न्यायालय, , पंचाट (ररफरेन्स

न.- 110/2024) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित करती हज जो केन्रीय सरकार को सॉफ्ट कॉपी के

साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/04/2026-आईआर( )-3]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 37.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. 110/2024) of the Central Government Industrial

Tribunal cum Labour Court, Chennai as shown in the Annexure, in the Industrial dispute between the employers

in relation to Airport Authority of India; M/s BVG India; M/s QPMS; M/s Aroon Aviation Service Pvt. Ltd.

and Tamilnadu General Workers Union, Chennai Airport Contract Workers Unit which was received along

with soft copy of the award by the Central Government on 14.01.2026.

[No. Z-16025/04/2026-IR(M)-3]

SALONI, Dy. Director

ANNEXURE

BEFORE THE CENTRAL GOVERNMENT INDUSTRIAL

TRIBUNAL- CUM - LABOUR COURT

CHENNAI

ID No. 110/2024

118

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Present: SUSHIL KUMAR, PRESIDING OFFICER

Date: 26-12-2025

The General Secretary,

Tamilnadu General Workers Union,

Chennai Airport Contract Workers Unit,

Chennai, KTK Thangamani Illam,

No.2/1, Kovur Vaithiyanathan Street,

Chindadripet, Chennai – 600 002. :

1st Party/Petitioner

AND

1.The Airport Director,

Airport Authority of India,

Chennai Airport, Meenambakkam,

Chennai – 600 027.

:

2nd Party / 1st Respondent

2.The Managing Director,

M/s BVG India,

No.3/20, Balaraman Garden Road,

Parthasarathy Nagar,

Manapakkam,

Chennai – 600 116.

:

2nd Party / 2nd Respondent

3.The General Manager,

M/s QPMS, No.86, Sundharshan Building,

3rd Floor, Chamiers Road, Nandanam,

Chennai – 600 018.

:

2nd Party / 3rd Respondent

4.The General Manager,

M/s Aroon Aviation Service Pvt. Ltd.,

A-113, Road, No.2, Mahipalapur Extension,

New Delhi – 110 037.

:

2nd Party / 4th Respondent

Appearance:

For the 1st Party/Petitioner

:

None

For the Respondent No.1

:

M/s. R. Parthiban, Adv

For the Respondent No.2

:

M/s. P. Alexander , Adv

For the Respondent No.3 & 4

:

None

Award

The

Central

Government,

Ministry

of

Labour&

Employment

vide

its

Order

No. 8/21/2024/B3/300079464/ADJ/A1, dated 03.12.2024 referred the following Industrial Dispute to this Tribunal for

adjudication.

The schedule mentioned in that order is:

―Whether the demand raised by the petitioner union (Tamilnadu General Workers Union, Chennai Airport Contract

Workers Unit, Chennai) against the respondent management (M/s Airports Authority of India, Chennai and their

Contractors M/s BVG India Limited, M/s QPMS, M/s Aroon Aviation Services P Ltd) to provide 12 days casual leave

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

119

per year, earned leave and medical leave is legal and justified? If not, to what relief the petitioner union is entitled

to?‖

2.

Onreceipt of the above reference dated 03.12.2024 from the appropriate Government, the dispute was

registered as ID No. 110/2024 and due notices were issued to both the parties for their appearance fixing the case to

19.02.2025. Neither the Petitioner nor any Counsel / Authorized Representative turned up resulting further

adjournments to 14.05.2025, 14.07.2025, 01.09.2025 and 27.10.2025. The Petitioner did not turn up whereas the

Respondent No.1 and 2 filed Vakalat Namas. It reveals from the body of reference that while the appropriate Govt.

sent the reference dated 03.12.2024 to this Tribunal for adjudication, copies of the reference were sent to the

Petitioner and all the opposite parties. It is therefore well presumed that both parties must have received the

reference. Even then, in the interest of justice, the Petitioner was once again directed to appear and to file claim

statement fixing the case to 22.12.2025. The Petitioner did not turn up nor was any authorized representative of the

counsel on his behalf present. The claim statement was not furnished in any manner by the Petitioner. The

Respondents (R1 and R2) were present. It reveals the Petitioner, despite of sufficient opportunity choose not to appear

or to file claim statement and documents.

3.

In the circumstance it deems proper not to re-list the case for the same purpose to any other date which

would be wastage of the valuable time of this Tribunal. The case was reserved for Final Order.

4.

In view of the discussion held supra, it is crystal clear that the petitioner has got no interest to proceed with

the case. Thus, the Tribunal is not in a position to adjudicate the dispute as referred by the Appropriate Government,

as there exists no Industrial Dispute for adjudication as per the reference.

5. In the result the reference is answered against the petitioner.

An Award is passed accordingly.

SUSHIL KUMAR-II, Presiding Officer

नई ददल्ली, 14 जनवरी, 2026

का.आ. 38.—औद्योजगक जववाद अजधजनयम (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार य

; ज ; के प्रबंधतंत्र के संबद्ध जनयोजकों

और . य के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण एवं श्रम न्यायालय, , पंचाट (ररफरेन्स

न.- 2/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित करती हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ

14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 38.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 2/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri P. Nallayya which was received along with soft copy of the award by the Central

Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: - Shri Irfan Qamar,

Presiding Officer

Dated the 1st day of December, 2025

M.P. No. 2/2017

Between:

P. Nallayya,

S/o. P. Simhachalam,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

120

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Visakhapatnam – 530031.

…..Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 which is corresponding section 59 (2) under the Industrial Relation Code 2020 for the

recovery of the amount of Rs.83,630.77/- with regard to legitimate dues of full and final payments including

retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that 1st

Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the 2nd

Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and 3rd

Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further, it is

averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated 12th September

2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent accepted the work

contract initially for a period of 24 months from 16th August 2009, and later it was extended for another 12 months,

vide letter dated 17th October 2012, confirming the work contract extension up to 15th August 2012, by (Annexure

8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as contact labour upon

receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent vide agreement

between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated 12th September 2009.

According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield Industries Limited," and

3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August 2009, and same is

binding agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the claim application

for the recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has contended that

Annexure-20 confirms that the 3rd Respondent Rishita Associates, received photo gate pass under (Annexure 11) in

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

121

favour of the 86-contract labour including the Petitioner engaged by the 3rd Respondent between the period of

contract, i.e., 16th August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and (Annexure

20) is the photo identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon completion

of the work contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and terminal

benefits upon the completion of the work contract, as contracted and settled under (annexure 11) between the second

and 3rd Respondents for executing the work contract of the first Respondent and Petitioner is entitled to receive

retrenchment allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The Petitioner

is unskilled and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay for 900

working days, amounting to Rs.83,633.77/-. Since both third Respondent as well as the 2nd Respondent failed to pay

the terminal benefits upon the completion of the work contract on 15th August 2012, Petitioner workman demanded

the legal dues with interest from all Respondent collectively but they did not pay. Further, it is submitted that after a

lapse of nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make all the

labour benefits payments directly to the workman such of that amount to be cleared against the work contract dated

12th September 2009, from pending amount due to the 2nd Respondent's account with the 1st Respondent. 1st

Respondent acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter

(annexure 6) dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and 1st

Respondent acknowledged the same but it was in vain. Further, it is averred that the 2nd Respondent, vide (annexure

5) dated 12th January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the Petitioner

contract labour and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all the

contract labour including Petitioner made representation through their union before the Regional Labour

Commissioner Central Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July

2015. The concerned authority issued notices to all Respondents, but no relief was granted to the workman.

Therefore, Petitioner has moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues

from Respondent. Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract

labour vide (Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract

Labour (Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with

interest at the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against 2nd

Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work. 1st

Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September 2009,

approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter dated

15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-contractor

does not establish any contractual relationship between the sub-contractor Rishita Associates and Respondent No.1

Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved from the

Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract labour

are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled

by the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

122

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was

completed on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the 1st

Respondent/RINL processed the bill exparte. Respondent contended that as directions issued by the Income Tax

Authorities to the Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as

dues to be paid to the Income Tax Department from the pending bills of the second Respondent/contractor M/s

Midfield Industries and accordingly, this Respondent deducted appropriate amount and paid to the Income Tax

Department. Further, Respondent contended that the terminal benefit claimed by the Petitioner does not form part of

wages and, as such the contractor as a direct employer is legally responsible to make all other payments if any to the

Petitioner. Therefore, the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012

the obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No.3

submits that Respondent contractors have not terminated or retrenched the services of workers at any point in respect

of the said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

123

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of "Sham" mean to

avoid direct employment by the contractor. Further, it is submitted that the second Respondent never settled the

claim of final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and

Petitioner insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the

Petitioner. The copy of the payment particular brought on record is not a genuine document and is disputed altogether.

Further, it is contended that the averment made by the third Respondent that this Petitioner is continuing employment

with another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has

been terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no

break in the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is

ridiculous. Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract

Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No.3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages to

him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from 16th

August 2009 to 15th August 2011 and later it was extended for one more year, i.e, up to 15th August 2012." Further,

MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of labour for

the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the request of R1

has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-. It is true that

after completion of the work, a letter dated 19th February, 2014 was addressed by R2 to R1 to release the amount

equivalent to the full and final amount as a special case by making partial modifications to the agreement between it

and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and the date

of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and final

payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

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THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for

the recovery of full and final payment amounting to Rs.83,630.77 ps. along with the interest for the work under

contract is not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from

Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable of being

computed in terms of money, and if any question arises as to the amount of money due or as to the amount at

which such benefit should be computed, then the question may, subject to any rules that may be wait under this

act, be decided by such labour court as may be specified in this behalf by the appropriate government within a

period of not exceeding three month."

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner

is entitle to receive from employer any money or benefit which is capable of being computed in terms of money. In

this context Petitioner has filed documents in evidence which has been exhibited by witness WW1. The perusal of

these document reveals that the document Ex.W1 is the form of certificate issued by principal employer i.e., Deputy

General Manager, Visakhapatnam Steel Plant, Visakhapatnam to the effect that it has engaged M/s. Midfield

industries Ltd Respondent No.2 for the work of strapping of mill product in WRM as contractor at Steel Plant,

Visakhapatnam vide certificate dated 14th August, 2009. Further, Document Ex.W8 is the letter dated 15th

September, 2009, issued by AGM works contract of Respondent No.1 addressed to M/s. Midfield Industries Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009- 10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on M's

Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex.W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September, 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging M/s.

Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the order

under reference above this document. Therefore, according to Ex.W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex.W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex.W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex.W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in WRM‖

of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6 it is

mentioned that approved time extension period 12 months upto 15th August 2012. Further Ex.W12 is the document

wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-contractor,

for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are mentioned

in the column of Retrenchment allowances for workers and the calculation has been shown as actual working days/26

x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances to the tune of

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

125

Rs.83,630.77/- for the period of 3 years of his employment with Respondent No.3. Further, in the agreement clause 7

it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced until the end of

15th August 2011. This time of contract was further extended up to 15th August 2012. Document Ex.W14 is the

statement showing actual working days of the contract labour including Petitioner and that has been prepared and

signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August 2012. The

statement of actual working days goes to show that the Petitioner's name is mentioned at serial No. 33 and against his

name the total number of working days 900 has been recorded. Further, document Ex. W15 is the statement of full

and final amount calculation, and these details has been prepared and signed by the authorized signatories of

Respondent No.2. This document goes to show that at Sl.No.33 name of the Petitioner, Sri P. Nallaya, unskilled

workman is recorded and against his name amount due towards full and final amount is shown as Rs.83,630.77/-.

Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General Manager Vishakhapatnam

Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment directly which is to be cleared

by Respondent No.2 in respect of contract labour for the period from 16th August 2009 to 15th August 2012.

Similarly, documents Ex.W17 and W20 are the letters addressed to Respondent No.1 by Respondent No.2 for release

of amount equivalent to full and final benefit due to contract labour. Thus, on going oral and documentary evidence

produced by the Petitioner, it is established that Petitioner was engaged by the Respondent No.3 as contract labour for

the work of Respondent No.1 on behalf of Respondent No.2 during the period from 12.8.2009 to 12.8.2012 and he is

entitled to receive Rs. 86,630.77ps. towards full and final payment as terminal benefit from Respondent No.3 as per

terms of contract Ex.W8, W9, and Ex. W12. Further, it is established that Petitioner was engaged for work by

Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to 15.8.2012 to work in industry of R-1

Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, on going oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs. 86,630.77 ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No.1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by 2nd

Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to the

workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and relevant

evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence. Moreover,

the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder, therefore,

burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he failed to

discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated 10th

March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

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[PART II—SEC. 3(ii)]

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

127

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by

the Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances

as per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates,

and Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the

establishment of Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such

contractor for Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It

has come on record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3

and Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No.3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract of

employment between the employer and the workman concerned contains a stipulation in

that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the contract

of employment between the employer and the stipulation in that behalf contained therein;

or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service w.e.f

16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

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[PART II—SEC. 3(ii)]

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No. 3 as sub-contractor of Respondent No.2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 corresponding section 59 (2) under

the Industrial Relation Code is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 83,630.77 ps. to the Petitioner within 30 days from the date of

this order. Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of

due i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this the

2nd day of December, 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri P. Nallayya

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner (Central) Visakhapatnam dt: 18.11.2015.

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central) To Respondents Two and Three

dt: 10.09.2015.

Ex.W3:

Photostat copy of union representation before Regional Labour Commissioner (Central) Visakhapatnam

dt:19.08.2015

Ex.W4:

Photostat copy of union representation before Regional Labour Commissioner (Central) Visakhapatnam

dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by Principal Employer 1st Respondent

dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by 1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent dt:28.11.2011.

Ex.W10: Photostat copy of extension of work contract by 2nd Respondent Dt:22.03.2012.

Ex.W11: Photostat copy of agreement between 2nd and 3rd Respondent (Basis of Claim) dt: 16.8.2009.

Ex.W12: Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor Of 2nd Respondent by Principal

Employer 1st Respondent dt:15.9.2009.

Ex.W13: Photostat copy of Form-V issued by Principal Employer 1st Respondent To 2nd Respondent under Contract

Labour (Regulation and Abolition) Act, 1970 dt: 14.08.2009.

Ex.W14: Photostat copy of Undertaking given to 2nd Respondent by 1st Respondent dt: 29.07.2011.

Ex.W15: Photostat copy of Licence issued to 3rd Respondent by Licencing Officer under CL (R&A) Act, 1970

dt:06.11.2009.

Ex.W16: Photostat copy of Licence issued to 3rd Respondent by Licencing Officer under CL (R&A) Act, 1970 dt:

16.08.2009.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

129

Ex.W17: Photostat copy of of Licence issued to 3rd Respondent by Licencing Officer under CL (R&A) Act, 1970

dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fun Commissioner of 3rd Respondent

establishment under E.P.F & MPAct, dt:03.08.2004.

Ex.W19 Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay All due of Petitioner workmen

dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel Gate passes of all Petitioner workmen

dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of Rs. 2,84,86,336/- by RINL to

Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax, Hyderabad to RINL dt:

07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer, It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT Department Enclosing

Demand Draft No. 512832 Dt.04.12.2015 Rs. 7,82,321/- dt: 17.12.2015

Ex.M6:

Photostat copy of Statement showing the amounts paid by the 2nd Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

का.आ. 39.—औद्योजगक जववाद अजधजनयम (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार य

; ज ; के प्रबंधतंत्र

के संबद्ध जनयोजकों और . के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण एवं श्रम

न्यायालय, , पंचाट (ररफरेन्स न.- 3/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित करती हज

जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-1]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 39.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 3/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri K. Narasing Reddy which was received along with soft copy of the award by the

Central Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-1]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Judicial Member

Dated the 2nd day of December 2025

M.P. No. 3/2017

Between:

K. Narasing Reddy,

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THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

S/o K. Somu Naidu,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

…..Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 which is corresponding section 59 (2) under the Industrial Relation Code 2020 for the

recovery of the amount of Rs.81,679.38ps with regard to legitimate dues of full and final payments including

retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that 1st

Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the 2nd

Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and 3rd

Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further, it is

averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated 12th September

2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent accepted the work

contract initially for a period of 24 months from 16th August 2009, and later it was extended for another 12 months,

vide letter dated 17th October 2012, confirming the work contract extension up to 15th August 2012, by (Annexure

8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as contact labour upon

receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent vide agreement

between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated 12th September 2009.

According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield Industries Limited," and

3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August 2009, and same is binding

agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the claim application for the

[भाग II—खण् ड 3(ii)]

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131

recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has contended that Annexure-20

confirms that the 3rd Respondent Rishita Associates, received photo gate pass under (Annexure 11) in favour of the

86-contract labour including the Petitioner engaged by the 3rd Respondent between the period of contract, i.e., 16th

August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and (Annexure 20) is the photo

identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon completion of the work

contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and terminal benefits upon

the completion of the work contract, as contracted and settled under (annexure 11) between the second and 3rd

Respondents for executing the work contract of the first Respondent and Petitioner is entitled to receive retrenchment

allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The Petitioner is unskilled

and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay for 879 working days,

amounting to Rs. 81,679.38ps Since both third Respondent as well as the 2nd Respondent failed to pay the terminal

benefits upon the completion of the work contract on 15th August 2012, Petitioner workman demanded the legal dues

with interest from all Respondent collectively, but they did not pay. Further, it is submitted that after a lapse of

nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make all the labour

benefits payments directly to the workman such of that amount to be cleared against the work contract dated 12th

September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent. 1st Respondent

acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter (annexure 6)

dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and 1st Respondent

acknowledged the same but it was in vain. Further, it is averred that the 2nd Respondent, vide (annexure 5) dated 12th

January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the Petitioner contract labour

and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all the contract labour

including Petitioner made representation through their union before the Regional Labour Commissioner Central

Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July 2015. The concerned

authority issued notices to all Respondents, but no relief was granted to the workman. Therefore, Petitioner has

moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues from Respondent.

Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract labour vide

(Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract Labour

(Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with interest at

the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against 2nd

Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work. 1st

Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September 2009,

approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter dated

15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-contractor does

not establish any contractual relationship between the sub-contractor Rishita Associates and Respondent No.1

Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved from the

Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract labour

are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

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[PART II—SEC. 3(ii)]

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was

completed on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the 1st

Respondent/RINL processed the bill exparte. Respondent contended that as directions issued by the Income Tax

Authorities to the Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as

dues to be paid to the Income Tax Department from the pending bills of the second Respondent/contractor M/s

Midfield Industries and accordingly, this Respondent deducted appropriate amount and paid to the Income Tax

Department. Further, Respondent contended that the terminal benefit claimed by the Petitioner does not form part of

wages and, as such the contractor as a direct employer is legally responsible to make all other payments if any to the

Petitioner. Therefore, the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No.3

submits that Respondent contractors have not terminated or retrenched the services of workers at any point in respect

of the said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

133

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of "Sham" mean to

avoid direct employment by the contractor. Further, it is submitted that the second Respondent never settled the

claim of final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and

Petitioner insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the

Petitioner. The copy of the payment particular brought on record is not a genuine document and is disputed altogether.

Further, it is contended that the averment made by the third Respondent that this Petitioner is continuing employment

with another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has

been terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no

break in the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is

ridiculous. Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract

Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No.3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages to

him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from 16th

August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012." Further,

MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of labour for

the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the request of R1

has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-. It is true that

after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the amount

equivalent to the full and final amount as a special case by making partial modifications to the agreement between it

and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and the date

of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and final

payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

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[PART II—SEC. 3(ii)]

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for

the recovery of full and final payment amounting to Rs.81,679.38ps. along with the interest for the work under

contract is not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from

Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable

of being computed in terms of money, and if any question arises as to the amount of money due or as to

the amount at which such benefit should be computed, then the question may, subject to any rules that

may be wait under this act, be decided by such labour court as may be specified in this behalf by the

appropriate government within a period of not exceeding three month."

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner

is entitled to receive from employer any money or benefit which is capable of being computed in terms of money. In

this context Petitioner has filed documents in evidence which has been exhibited by witness WW1. The perusal of

these document reveals that the document Ex. W1 is the form of certificate issued by principal employer i.e., Deputy

General Manager, Visakhapatnam Steel Plant, Visakhapatnam to the effect that it has engaged M/s. Midfield

industries Ltd Respondent No.2 for the work of strapping of mill product in WRM as contractor at Steel Plant,

Visakhapatnam vide certificate dated 14th August 2009. Further, Document Ex. W8 is the letter dated 15th

September, 2009, issued by AGM works contract of Respondent No.1 addressed to M/s. Midfield Industries Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009- 10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on M's

Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging M/s.

Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the order

under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-

contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are

mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.81,679.38ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

135

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at serial No. 24 and

against his name the total number of working days 879 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl.No.24 name of the Petitioner, Sri K. Narasing

Reddy, unskilled workman is recorded and against his name amount due towards full and final amount is shown as

Rs.81,679.38ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General Manager

Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment directly which

is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th August 2009 to 15th August

2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent No.1 by Respondent No.2 for

release of amount equivalent to full and final benefit due to contract labour. Thus, on going oral and documentary

evidence produced by the Petitioner, it is established that Petitioner was engaged by the Respondent No.3 as contract

labour for the work of Respondent No.1 on behalf of Respondent No.2 during the period from 12.8.2009 to 12.8.2012

and he is entitled to receive Rs. 81,679.38ps. towards full and final payment as terminal benefit from Respondent

No.3 as per terms of contract Ex.W8, W9, and Ex. W12. Further, it is established that Petitioner was engaged for

work by Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to 15.8.2012 to work in industry of

R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, on going oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.81,679.38ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No.1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by 2nd

Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to the

workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and relevant

evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence. Moreover,

the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder, therefore,

burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he failed to

discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated 10th

March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

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[PART II—SEC. 3(ii)]

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

137

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by

the Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances

as per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates,

and Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the

establishment of Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such

contractor for Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It

has come on record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3

and Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No.3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract of

employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service w.e.f

16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

138

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No.2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 corresponding section 59 (2) under

the Industrial Relation Code is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 81,679.38ps. to the Petitioner within 30 days from the date of this

order. Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of due

i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this the

2nd day of December, 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri K. Narasing Reddy

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner (Central) Visakhapatnam

dt: 18.11.2015.

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central) To Respondents Two and

Three dt: 10.09.2015.

Ex.W3:

Photostat copy of union representation before Regional Labour Commissioner (Central)

Visakhapatnam dt:19.08.2015

Ex.W4:

Photostat copy of union representation before Regional Labour Commissioner (Central)

Visakhapatnam dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by Principal Employer 1st Respondent

dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by 1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent dt:28.11.2011.

Ex.W10:

Photostat copy of extension of work contract by 2nd Respondent Dt:22.03.2012.

Ex.W11:

Photostat copy of agreement between 2nd and 3rd Respondent (Basis of Claim) dt: 16.8.2009.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

139

Ex.W12:

Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor Of 2nd Respondent by Principal

Employer 1st Respondent dt:15.9.2009.

Ex.W13:

Photostat copy of Form-V issued by Principal Employer 1st Respondent To 2nd Respondent under

Contract Labour (Regulation and Abolition) Act, 1970 dt: 14.08.2009.

Ex.W14:

Photostat copy of Undertaking given to 2nd Respondent by 1st Respondent dt: 29.07.2011.

Ex.W15:

Photostat copy of Licence issued to 3rd Respondent by Licencing Officer under CL (R&A) Act, 1970

dt:06.11.2009.

Ex.W16:

Photostat copy of Licence issued to 3rd Respondent by Licencing Officer under CL (R&A) Act, 1970

dt: 16.08.2009.

Ex.W17: Photostat copy of of Licence issued to 3rd Respondent by Licencing Officer under CL (R&A) Act,

1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund Commissioner of 3rd Respondent

establishment under E.P.F & MP Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay All due of Petitioner workmen

dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel Gate passes of all Petitioner

workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of Rs. 2,84,86,336/- by RINL to

Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax, Hyderabad to RINL

dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer, It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT Department Enclosing

Demand Draft No. 512832 Dt.04.12.2015 for Rs. 7,82,321/- dt: 17.12.2015

Ex.M6:

Photostat copy of Statement showing the amounts paid by the 2nd Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

का.आ. 40.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

राष्ट्रीय इस्ट्पात जनगम जलजमट जविाखापत्तनम स्ट्टील प्लांट; जमडफील्ड इंडस्ट्रीज जलजमटेड; मेससा ऋजषता एसोजसएट्स के

प्रबंधतंत्र के संबद्ध जनयोजकों और श्री ए.एन.आर. कृ्‍णा के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण

एवं श्रम न्यायालय, हजदराबाद, पंचाट (ररफरेन्स न.- एमपी 4/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित

करती हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/04/2026-आईआर( )-2]

सलोनी, उप जनदेिक

140

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

New Delhi, the 14th January, 2026

S.O. 40.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 4/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri A.N.R. Krishna which was received along with soft copy of the award by the

Central Government on 14.01.2026.

[No. Z-16025/04/2026-IR(M)-2]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Presiding Officer

Dated the 3rd day of December 2025

M.P. No. 4/2017

Between:

A.N.R. Krishna,

S/o A. Venku Naidu,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

…..Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

141

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 which is corresponding section 59 (2) under the Industrial Relation Code 2020 for the

recovery of the amount Rs. 82,144.00ps with regard to legitimate dues of full and final payments including

retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that 1st

Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the 2nd

Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and 3rd

Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further, it is

averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated 12th September

2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent accepted the work

contract initially for a period of 24 months from 16th August 2009, and later it was extended for another 12 months,

vide letter dated 17th October 2012, confirming the work contract extension up to 15th August 2012, by (Annexure

8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as contact labour upon

receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent vide agreement

between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated 12th September 2009.

According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield Industries Limited," and

3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August 2009, and same is binding

agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the claim application for the

recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has contended that Annexure-20

confirms that the 3rd Respondent Rishita Associates, received photo gate pass under (Annexure 11) in favour of the

86-contract labour including the Petitioner engaged by the 3rd Respondent between the period of contract, i.e.,

16th August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and (Annexure 20) is the

photo identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon completion of the

work contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and terminal benefits

upon the completion of the work contract, as contracted and settled under (annexure 11) between the second and 3rd

Respondents for executing the work contract of the first Respondent and Petitioner is entitled to receive retrenchment

allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The Petitioner is unskilled

and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay for 884 working days,

amounting to Rs. 82,144.00ps Since both third Respondent as well as the 2nd Respondent failed to pay the terminal

benefits upon the completion of the work contract on 15th August 2012, Petitioner workman demanded the legal dues

with interest from all Respondent collectively, but they did not pay. Further, it is submitted that after a lapse of

nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make all the labour

benefits payments directly to the workman such of that amount to be cleared against the work contract dated

12th September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent.

1st Respondent acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter

(annexure 6) dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and

1st Respondent acknowledged the same but it was in vain. Further, it is averred that the 2nd Respondent, vide

(annexure 5) dated 12th January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the

Petitioner contract labour and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all

the contract labour including Petitioner made representation through their union before the Regional Labour

Commissioner Central Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July

2015. The concerned authority issued notices to all Respondents, but no relief was granted to the workman.

Therefore, Petitioner has moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues

from Respondent. Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract

labour vide (Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract

Labour (Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with

interest at the rate of 18% per annum.

142

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against 2nd

Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work. 1st

Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September 2009,

approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter dated

15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-contractor does

not establish any contractual relationship between the sub-contractor Rishita Associates and Respondent No.1

Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved from the

Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract labour

are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was

completed on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the 1st

Respondent/RINL processed the bill exparte. Respondent contended that as directions issued by the Income Tax

Authorities to the Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as

dues to be paid to the Income Tax Department from the pending bills of the second Respondent/contractor M/s

Midfield Industries and accordingly, this Respondent deducted appropriate amount and paid to the Income Tax

Department. Further, Respondent contended that the terminal benefit claimed by the Petitioner does not form part of

wages and, as such the contractor as a direct employer is legally responsible to make all other payments if any to the

Petitioner. Therefore, the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

143

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No.3

submits that Respondent contractors have not terminated or retrenched the services of workers at any point in respect

of the said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of "Sham" mean to

avoid direct employment by the contractor. Further, it is submitted that the second Respondent never settled the

claim of final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and

Petitioner insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the

Petitioner. The copy of the payment particular brought on record is not a genuine document and is disputed altogether.

Further, it is contended that the averment made by the third Respondent that this Petitioner is continuing employment

with another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has

been terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no

break in the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is

ridiculous. Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per

contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

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[PART II—SEC. 3(ii)]

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No.3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages

to him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from 16th

August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012." Further,

MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of labour for

the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the request of R1

has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-. It is true that

after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the amount

equivalent to the full and final amount as a special case by making partial modifications to the agreement between it

and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and the date

of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and final

payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for

the recovery of full and final payment amounting to Rs.82,144.00ps. along with the interest for the work under

contract is not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from

Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable of

being computed in terms of money, and if any question arises as to the amount of money due or as to the

amount at which such benefit should be computed, then the question may, subject to any rules that may be

wait under this act, be decided by such labour court as may be specified in this behalf by the appropriate

government within a period of not exceeding three month."

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner

is entitled to receive from employer any money or benefit which is capable of being computed in terms of money. In

this context Petitioner has filed documents in evidence which has been exhibited by witness WW1. The perusal of

these document reveals that the document Ex. W1 is the form of certificate issued by principal employer i.e., Deputy

General Manager, Visakhapatnam Steel Plant, Visakhapatnam to the effect that it has engaged M/s. Midfield

industries Ltd Respondent No.2 for the work of strapping of mill product in WRM as contractor at Steel Plant,

Visakhapatnam vide certificate dated 14th August 2009. Further, Document Ex. W8 is the letter dated 15th

September, 2009, issued by AGM works contract of Respondent No.1 addressed to M/s. Midfield Industries Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009- 10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

145

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on M's

Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging M/s.

Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the order

under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP

sub-contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment

are mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs. 82,144.00ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at serial No. 24 and

against his name the total number of working days 884 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl.No.76 name of the Petitioner, Sri A.N.R.

Krishna, unskilled workman is recorded and against his name amount due towards full and final amount is shown as

Rs.82,144.00ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General Manager

Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment directly which

is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th August 2009 to 15th August

2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent No.1 by Respondent No.2 for

release of amount equivalent to full and final benefit due to contract labour. Thus, on going oral and documentary

evidence produced by the Petitioner, it is established that Petitioner was engaged by the Respondent No.3 as contract

labour for the work of Respondent No.1 on behalf of Respondent No.2 during the period from 12.8.2009 to 12.8.2012

and he is entitled to receive Rs. 82,144.00ps. towards full and final payment as terminal benefit from Respondent

No.3 as per terms of contract Ex.W8, W9, and Ex. W12. Further, it is established that Petitioner was engaged for

work by Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to 15.8.2012 to work in industry of

R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, on going oral and documentary evidence on record, it is established that the

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[PART II—SEC. 3(ii)]

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs. 82,144.00ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No.1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by 2nd

Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to the

workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and relevant

evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence. Moreover,

the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder, therefore,

burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he failed to

discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated 10th

March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

147

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by

the Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances

as per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates,

and Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the

establishment of Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such

contractor for Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It

has come on record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3

and Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No.3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract of employment between

the employer and the workman concerned contains a stipulation in that behalf; or

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[PART II—SEC. 3(ii)]

(bb) termination of the service of the workman as a result of the non-renewal of the contract of

employment between the employer and the stipulation in that behalf contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service w.e.f

16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No.2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 corresponding section 59 (2) under

the Industrial Relation Code is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 82,144.00ps. to the Petitioner within 30 days from the date of this

order. Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of due

i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this the

3rd day of December, 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

149

Petitioner

Respondent

WW1: Sri A.K.R Krishna

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

Ex.W3:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10:

Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11:

Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

Ex.W12:

Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13:

Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14:

Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15:

Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16:

Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

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[PART II—SEC. 3(ii)]

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512832 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6: Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

का.आ. 41.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

राष्ट्रीय इस्ट्पात जनगम जलजमट जविाखापत्तनम स्ट्टील प्लांट; जमडफील्ड इंडस्ट्रीज जलजमटेड; मेससा ऋजषता एसोजसएट्स के

प्रबंधतंत्र के संबद्ध जनयोजकों और श्री के. िंकर रेड्डी के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण एवं

श्रम न्यायालय, हजदराबाद, पंचाट (ररफरेन्स न.- एमपी 5/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित

करती हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-3]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 41.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 5/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri K. Sankar Reddy which was received along with soft copy of the award by the

Central Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-3]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

151

Present: -

Shri Irfan Qamar,

Presiding Officer

Dated the 3rd day of December 2025

M.P. No. 5/2017

Between:

K. Sankar Reddy,

S/o K. Pradesi,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

…..Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 which is corresponding section 59 (2) under the Industrial Relation Code 2020 for the

recovery of the amount Rs. 62,444.31ps with regard to legitimate dues of full and final payments including

retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

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[PART II—SEC. 3(ii)]

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that 1st

Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the 2nd

Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and 3rd

Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further, it is

averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated 12th September

2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent accepted the work

contract initially for a period of 24 months from 16th August 2009, and later it was extended for another 12 months,

vide letter dated 17th October 2012, confirming the work contract extension up to 15th August 2012, by (Annexure

8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as contact labour upon

receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent vide agreement

between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated 12th September 2009.

According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield Industries Limited," and

3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August 2009, and same is binding

agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the claim application for the

recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has contended that Annexure-20

confirms that the 3rd Respondent Rishita Associates, received photo gate pass under (Annexure 11) in favour of the

86-contract labour including the Petitioner engaged by the 3rd Respondent between the period of contract, i.e., 16th

August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and (Annexure 20) is the photo

identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon completion of the work

contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and terminal benefits upon

the completion of the work contract, as contracted and settled under (annexure 11) between the second and 3rd

Respondents for executing the work contract of the first Respondent and Petitioner is entitled to receive retrenchment

allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The Petitioner is unskilled

and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay for 672 working days,

amounting to Rs. 62,444.31ps Since both third Respondent as well as the 2nd Respondent failed to pay the terminal

benefits upon the completion of the work contract on 15th August 2012, Petitioner workman demanded the legal dues

with interest from all Respondent collectively, but they did not pay. Further, it is submitted that after a lapse of

nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make all the labour

benefits payments directly to the workman such of that amount to be cleared against the work contract dated

12th September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent. 1st

Respondent acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter

(annexure 6) dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and 1st

Respondent acknowledged the same but it was in vain. Further, it is averred that the 2nd Respondent, vide (annexure

5) dated 12th January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the Petitioner

contract labour and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all the

contract labour including Petitioner made representation through their union before the Regional Labour

Commissioner Central Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July

2015. The concerned authority issued notices to all Respondents, but no relief was granted to the workman.

Therefore, Petitioner has moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues

from Respondent. Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract

labour vide (Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract

Labour (Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with

interest at the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against 2nd

Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work. 1st

Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September 2009,

approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter dated

15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-contractor does

not establish any contractual relationship between the sub-contractor Rishita Associates and Respondent No.1

Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved from the

Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract labour

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

153

are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was

completed on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the 1st

Respondent/RINL processed the bill exparte. Respondent contended that as directions issued by the Income Tax

Authorities to the Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as

dues to be paid to the Income Tax Department from the pending bills of the second Respondent/contractor M/s

Midfield Industries and accordingly, this Respondent deducted appropriate amount and paid to the Income Tax

Department. Further, Respondent contended that the terminal benefit claimed by the Petitioner does not form part of

wages and, as such the contractor as a direct employer is legally responsible to make all other payments if any to the

Petitioner. Therefore, the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No.3

submits that Respondent contractors have not terminated or retrenched the services of workers at any point in respect

of the said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

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[PART II—SEC. 3(ii)]

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of "Sham" mean to

avoid direct employment by the contractor. Further, it is submitted that the second Respondent never settled the

claim of final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and

Petitioner insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the

Petitioner. The copy of the payment particular brought on record is not a genuine document and is disputed altogether.

Further, it is contended that the averment made by the third Respondent that this Petitioner is continuing employment

with another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has

been terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no

break in the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is

ridiculous. Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per

contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No.3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages

to him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2

was given contract for the purpose of strapping of mill product in the WRM department of R1 initially for a period of

[भाग II—खण् ड 3(ii)]

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155

two years with effect from 16th August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up

to 15th August 2012." Further, MW1 states "It is true that permission has been taken from R1 to give sub-contract to

R3 for the supply of labour for the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is

true that R2 on the request of R1 has released the part payment to R3 and R1 has released the same to R2, an amount

of Rs.28,58,522/-. It is true that after completion of the work, a letter dated 19th February 2014 was addressed by R2

to R1 to release the amount equivalent to the full and final amount as a special case by making partial modifications

to the agreement between it and R1." Further, Witness MW1 states that, "I am not aware of how much amount has

been paid to R2 and the date of release towards full and final payment." Further, MW1 states that "It is not true to

suggest that full and final payment was not made to R2 and as such I am not in a position to say the date and amount

of release and hence deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to

suggest that full and final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is

true that he has not filed any document in support of his contention made in his affidavit and evidence especially with

regard to the payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary

evidence to prove his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for

the payment of total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.62,444.31ps. along with the interest for the work under contract is

not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable of being

computed in terms of money, and if any question arises as to the amount of money due or as to the amount at

which such benefit should be computed, then the question may, subject to any rules that may be wait under this

act, be decided by such labour court as may be specified in this behalf by the appropriate government within a

period of not exceeding three month."

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner is

entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

both the petition. Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in

support of claim of Petitioner. In this context Petitioner has filed documents in evidence which has been exhibited by

witness WW1.The perusal of these document reveals that the document Ex. W1 is the form of certificate issued by

principal employer i.e., Deputy General Manager

Visakhapatnam Steel Plant, Visakhapatnam to the effect that it has engaged M/s. Midfield industries Ltd Respondent

No.2 for the work of strapping of mill product in WRM as contractor at Steel Plant, Visakhapatnam vide certificate

dated 14th August 2009. Further, Document Ex. W8 is the letter dated 15th September 2009, issued by AGM works

contract of Respondent No.1 addressed to M/s. Midfield Industries Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009-10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

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[PART II—SEC. 3(ii)]

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on M's

Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging M/s.

Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the order

under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-

contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are

mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs. 62,444.31ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at serial No. 24 and

against his name the total number of working days 672 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl.No.39 name of the Petitioner, Sri K. Sankar

Reddy, unskilled workman is recorded and against his name amount due towards full and final amount is shown as

Rs.62,444.31ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General Manager

Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment directly which

is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th August 2009 to 15th August

2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent No.1 by Respondent No.2 for

release of amount equivalent to full and final benefit due to contract labour. Thus, on going oral and documentary

evidence produced by the Petitioner, it is established that Petitioner was engaged by the Respondent No.3 as contract

labour for the work of Respondent No.1 on behalf of Respondent No.2 during the period from 12.8.2009 to 12.8.2012

and he is entitled to receive Rs. 62,444.31ps. towards full and final payment as terminal benefit from Respondent

No.3 as per terms of contract Ex.W8, W9, and Ex. W12. Further, it is established that Petitioner was engaged for

work by Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to 15.8.2012 to work in industry of

R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, on going oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.62,444.31ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No.1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

[भाग II—खण् ड 3(ii)]

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157

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by 2nd

Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to the

workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and relevant

evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence. Moreover,

the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder, therefore,

burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he failed to

discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated 10th

March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

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[PART II—SEC. 3(ii)]

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by

the Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances

as per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates,

and Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the

establishment of Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such

contractor for Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It

has come on record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3

and Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No.3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

159

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service w.e.f

16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No.2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 corresponding section 59 (2) under

the Industrial Relation Code is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 62,444.31ps. to the Petitioner within 30 days from the date of this

order. Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of due

i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this the

3rd day of December, 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri K. Sankar Reddy.

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

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THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

Ex.W3:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10: Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11: Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

Ex.W12: Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13: Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14: Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

161

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512832 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6:

Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

का.आ. 42.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

राष्ट्रीय इस्ट्पात जनगम जलजमट जविाखापत्तनम स्ट्टील प्लांट; जमडफील्ड इंडस्ट्रीज जलजमटेड; मेससा ऋजषता एसोजसएट्स के

प्रबंधतंत्र के संबद्ध जनयोजकों और श्री डी. रामाराव के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण एवं

श्रम न्यायालय, हजदराबाद, पंचाट (ररफरेन्स न.- एमपी 8/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित

करती हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-4]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 42.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 8/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri D. Rama Rao which was received along with soft copy of the award by the Central

Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-4]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Presiding Officer

162

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Dated the 5th day of December 2025

M.P. No. 8/2017

Between:

D. Rama Rao,

S/o. D. Paidayya,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

…..Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 which is corresponding section 59 (2) under the Industrial Relation Code 2020 for the

recovery of the amount Rs. 77,312.00ps with regard to legitimate dues of full and final payments including

retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that 1st

Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the 2nd

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

163

Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and 3rd

Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further, it is

averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated 12th September

2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent accepted the work

contract initially for a period of 24 months from 16th August 2009, and later it was extended for another 12 months,

vide letter dated 17th October 2012, confirming the work contract extension up to 15th August 2012, by (Annexure

8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as contact labour upon

receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent vide agreement

between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated 12th September 2009.

According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield Industries Limited," and

3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August 2009, and same is binding

agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the claim application for the

recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has contended that Annexure-20

confirms that the 3rd Respondent Rishita Associates, received photo gate pass under (Annexure 11) in favour of the

86-contract labour including the Petitioner engaged by the 3rd Respondent between the period of contract, i.e., 16th

August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and (Annexure 20) is the photo

identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon completion of the work

contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and terminal benefits upon

the completion of the work contract, as contracted and settled under (annexure 11) between the second and 3rd

Respondents for executing the work contract of the first Respondent and Petitioner is entitled to receive retrenchment

allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The Petitioner is unskilled

and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay for 832 working days,

amounting to Rs. 77,312.00ps Since both third Respondent as well as the 2nd Respondent failed to pay the terminal

benefits upon the completion of the work contract on 15th August 2012, Petitioner workman demanded the legal dues

with interest from all Respondent collectively, but they did not pay. Further, it is submitted that after a lapse of

nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make all the labour

benefits payments directly to the workman such of that amount to be cleared against the work contract dated 12th

September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent. 1st Respondent

acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter (annexure 6)

dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and 1st Respondent

acknowledged the same, but it was in vain. Further, it is averred that the 2nd Respondent, vide (annexure 5) dated 12th

January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the Petitioner contract labour

and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all the contract labour

including Petitioner made representation through their union before the Regional Labour Commissioner Central

Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July 2015. The concerned

authority issued notices to all Respondents, but no relief was granted to the workman. Therefore, Petitioner has

moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues from Respondent.

Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract labour vide

(Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract Labour

(Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with interest at

the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against 2nd

Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work. 1st

Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September 2009,

approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter dated

15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-contractor does

not establish any contractual relationship between the sub-contractor Rishita Associates and Respondent No.1

Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved from the

Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract labour

are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

164

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was

completed on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the 1st

Respondent/RINL processed the bill exparte. Respondent contended that as directions issued by the Income Tax

Authorities to the Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as

dues to be paid to the Income Tax Department from the pending bills of the second Respondent/contractor M/s

Midfield Industries and accordingly, this Respondent deducted appropriate amount and paid to the Income Tax

Department. Further, Respondent contended that the terminal benefit claimed by the Petitioner does not form part of

wages and, as such the contractor as a direct employer is legally responsible to make all other payments if any to the

Petitioner. Therefore, the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No.3

submits that Respondent contractors have not terminated or retrenched the services of workers at any point in respect

of the said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

165

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No.3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages to

him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from 16th

August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012." Further,

MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of labour for

the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the request of R1

has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-. It is true that

after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the amount

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[PART II—SEC. 3(ii)]

equivalent to the full and final amount as a special case by making partial modifications to the agreement between it

and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and the date

of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and final

payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.77,312.00ps. along with the interest for the work under contract is

not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable of

being computed in terms of money, and if any question arises as to the amount of money due or as to the

amount at which such benefit should be computed, then the question may, subject to any rules that may be

wait under this act, be decided by such labour court as may be specified in this behalf by the appropriate

government within a period of not exceeding three month."

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner is

entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

both the petition. Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in

support of claim of Petitioner. In this context Petitioner has filed documents in evidence which has been exhibited by

witness WW1.The perusal of these document reveals that the document Ex. W1 is the form of certificate issued by

principal employer i.e., Deputy General Manager Visakhapatnam Steel Plant, Visakhapatnam to the effect that it has

engaged M/s. Midfield industries Ltd Respondent No.2 for the work of strapping of mill product in WRM as

contractor at Steel Plant, Visakhapatnam vide certificate dated 14th August 2009. Further, Document Ex. W8 is the

letter dated 15th September 2009, issued by AGM works contract of Respondent No.1 addressed to M/s. Midfield

Industries Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009- 10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on M's

Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

167

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging M/s.

Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the order

under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-

contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are

mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.77,312.00ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at serial No. 24 and

against his name the total number of working days 832 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl.No.51 name of the Petitioner, Sri D. Rama

Rao, unskilled workman is recorded and against his name amount due towards full and final amount is shown as

Rs.77,312.00ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General Manager

Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment directly which

is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th August 2009 to 15th August

2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent No.1 by Respondent No.2 for

release of amount equivalent to full and final benefit due to contract labour. Thus, on going oral and documentary

evidence produced by the Petitioner, it is established that Petitioner was engaged by the Respondent No.3 as contract

labour for the work of Respondent No.1 on behalf of Respondent No.2 during the period from 12.8.2009 to 12.8.2012

and he is entitled to receive Rs. 77,312.00ps. towards full and final payment as terminal benefit from Respondent

No.3 as per terms of contract Ex.W8, W9, and Ex. W12. Further, it is established that Petitioner was engaged for

work by Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to 15.8.2012 to work in industry of

R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, on going oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.77,312.00ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No.1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by 2nd

Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to the

workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and relevant

evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence. Moreover,

the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder, therefore,

burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he failed to

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THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated 10th

March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

169

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No.3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service w.e.f

16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

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THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No.2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 corresponding section 59 (2) under

the Industrial Relation Code is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 77,312.00ps. to the Petitioner within 30 days from the date of this

order. Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of due

i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this the

5th day of December, 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri D. Rama Rao .

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

Ex.W3:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

171

Ex.W4:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10: Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11: Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

Ex.W12: Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13: Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14: Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16:

Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

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[PART II—SEC. 3(ii)]

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512832 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6:

Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

का.आ. 43.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

राष्ट्रीय इस्ट्पात जनगम जलजमट जविाखापत्तनम स्ट्टील प्लांट; जमडफील्ड इंडस्ट्रीज जलजमटेड; मेससा ऋजषता एसोजसएट्स के

प्रबंधतंत्र के संबद्ध जनयोजकों और श्री एन. जगन्नाथ राव के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण

एवं श्रम न्यायालय, हजदराबाद, पंचाट (ररफरेन्स न.- एमपी 9/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित

करती हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-5]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 43.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 9/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri N. Jaganadha Rao which was received along with soft copy of the award by the

Central Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-5]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Presiding Officer

Dated the 5th day of December 2025

M.P. No. 9/2017

Between:

N. Jaganadha Rao,

S/o. N. Ramu,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

…..Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

173

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 which is corresponding section 59 (2) under the Industrial Relation Code 2020 for the

recovery of the amount Rs. 82,051.08ps with regard to legitimate dues of full and final payments including

retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that 1st

Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the 2nd

Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and 3rd

Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further, it is

averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated 12th September

2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent accepted the work

contract initially for a period of 24 months from 16th August 2009, and later it was extended for another 12 months,

vide letter dated 17th October 2012, confirming the work contract extension up to 15th August 2012, by (Annexure

8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as contact labour upon

receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent vide agreement

between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated 12th September 2009.

According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield Industries Limited," and

3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August 2009, and same is binding

agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the claim application for the

recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has contended that Annexure-20

confirms that the 3rd Respondent Rishita Associates, received photo gate pass under (Annexure 11) in favour of the

86-contract labour including the Petitioner engaged by the 3rd Respondent between the period of contract, i.e., 16th

August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and (Annexure 20) is the photo

identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon completion of the work

contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and terminal benefits upon

the completion of the work contract, as contracted and settled under (annexure 11) between the second and 3rd

Respondents for executing the work contract of the first Respondent and Petitioner is entitled to receive retrenchment

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[PART II—SEC. 3(ii)]

allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The Petitioner is unskilled

and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay for 883 working days,

amounting to Rs. 82,051.08ps Since both third Respondent as well as the 2nd Respondent failed to pay the terminal

benefits upon the completion of the work contract on 15th August 2012, Petitioner workman demanded the legal dues

with interest from all Respondent collectively, but they did not pay. Further, it is submitted that after a lapse of

nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make all the labour

benefits payments directly to the workman such of that amount to be cleared against the work contract dated 12th

September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent. 1st Respondent

acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter (annexure 6)

dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and 1st Respondent

acknowledged the same, but it was in vain. Further, it is averred that the 2nd Respondent, vide (annexure 5) dated 12th

January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the Petitioner contract labour

and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all the contract labour

including Petitioner made representation through their union before the Regional Labour Commissioner Central

Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July 2015. The concerned

authority issued notices to all Respondents, but no relief was granted to the workman. Therefore, Petitioner has

moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues from Respondent.

Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract labour vide

(Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract Labour

(Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with interest at

the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against 2nd

Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work. 1st

Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September 2009,

approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter dated

15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-contractor does

not establish any contractual relationship between the sub-contractor Rishita Associates and Respondent No.1

Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved from the

Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract labour

are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was

completed on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the 1st

Respondent/RINL processed the bill exparte. Respondent contended that as directions issued by the Income Tax

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

175

Authorities to the Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as

dues to be paid to the Income Tax Department from the pending bills of the second Respondent/contractor M/s

Midfield Industries and accordingly, this Respondent deducted appropriate amount and paid to the Income Tax

Department. Further, Respondent contended that the terminal benefit claimed by the Petitioner does not form part of

wages and, as such the contractor as a direct employer is legally responsible to make all other payments if any to the

Petitioner. Therefore, the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No.3

submits that Respondent contractors have not terminated or retrenched the services of workers at any point in respect

of the said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

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[PART II—SEC. 3(ii)]

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No. 3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No. 2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages

to him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from 16th

August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012." Further,

MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of labour for

the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the request of R1

has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-. It is true that

after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the amount

equivalent to the full and final amount as a special case by making partial modifications to the agreement between it

and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and the date

of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and final

payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.82,051.08ps. along with the interest for the work under contract is

not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable

of being computed in terms of money, and if any question arises as to the amount of money due or as to the

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

177

amount at which such benefit should be computed, then the question may, subject to any rules that may be

wait under this act, be decided by such labour court as may be specified in this behalf by the appropriate

government within a period of not exceeding three month."

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner is

entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

both the petition. It is settled law that the rule of evidence Act do not apply strictly to the matter under I.D. Act.

Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in support of claim

of Petitioner. In this context Petitioner has filed documents in evidence

which has been exhibited by witness WW1.The perusal of these document reveals that the document Ex. W1 is the

form of certificate issued by principal employer i.e., Deputy General Manager Visakhapatnam Steel Plant,

Visakhapatnam to the effect that it has engaged M/s. Midfield industries Ltd Respondent No.2 for the work of

strapping of mill product in WRM as contractor at Steel Plant, Visakhapatnam vide certificate dated 14th August

2009. Further, Document Ex. W8 is the letter dated 15th September 2009, issued by AGM works contract of

Respondent No.1 addressed to M/s. Midfield Industries Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009-10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on M's

Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging M/s.

Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the order

under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-

contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are

mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.82,051.08ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document Ex.

W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

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[PART II—SEC. 3(ii)]

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at serial No. 24 and

against his name the total number of working days 883 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl. No.78 name of the Petitioner, Sri N.

Jagandha Rao, unskilled workman is recorded and against his name amount due towards full and final amount is

shown as Rs.82,051.08ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General

Manager Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment

directly which is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th August

2009 to 15th August 2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent No.1 by

Respondent No.2 for release of amount equivalent to full and final benefit due to contract labour. Thus, on going

oral and documentary evidence produced by the Petitioner, it is established that Petitioner was engaged by the

Respondent No.3 as contract labour for the work of Respondent No.1 on behalf of Respondent No.2 during the period

from 12.8.2009 to 12.8.2012 and he is entitled to receive Rs. 82,051.08ps. towards full and final payment as terminal

benefit from Respondent No.3 as per terms of contract Ex.W8, W9, and Ex. W12. Further, it is established that

Petitioner was engaged for work by Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to

15.8.2012 to work in industry of R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, on going oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.82,051.08ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No.1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by 2nd

Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to the

workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and relevant

evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence. Moreover,

the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder, therefore,

burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he failed to

discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated 10th

March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

179

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

180

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[PART II—SEC. 3(ii)]

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No.3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service

w.e.f 16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No.2,

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

181

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 corresponding section 59 (2) under

the Industrial Relation Code is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 82,051.08ps. to the Petitioner within 30 days from the date of this

order Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of due

i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this the

5th day of December, 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri N. Jaganadha Rao .

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

Ex.W3:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent

182

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

dt:28.11.2011.

Ex.W10: Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11: Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

Ex.W12: Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13: Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14: Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15:

Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16:

Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512832 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6:

Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

183

नई ददल्ली, 14 जनवरी, 2026

का.आ. 44.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

राष्ट्रीय इस्ट्पात जनगम जलजमट जविाखापत्तनम स्ट्टील प्लांट; जमडफील्ड इंडस्ट्रीज जलजमटेड; मेससा ऋजषता एसोजसएट्स के

प्रबंधतंत्र के संबद्ध जनयोजकों और श्री जगत हसह के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण एवं श्रम

न्यायालय, हजदराबाद, पंचाट (ररफरेन्स न.- एमपी 12/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित करती

हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-7]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 44.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 12/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri Jagat Singh which was received along with soft copy of the award by the Central

Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-7]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Presiding Officer

Dated the 9th day of December 2025

M.P. No. 12/2017

Between:

Jagat Singh,

S/o. Sankar Sing

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

…..Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

184

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 which is corresponding section 59 (2) under the Industrial Relation Code 2020 for the

recovery of the amount Rs. 80,657.23ps with regard to legitimate dues of full and final payments including

retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that 1st

Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the 2nd

Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and 3rd

Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further, it is

averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated 12th September

2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent accepted the work

contract initially for a period of 24 months from 16th August 2009, and later it was extended for another 12 months,

vide letter dated 17th October 2012, confirming the work contract extension up to 15th August 2012, by (Annexure

8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as contact labour upon

receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent vide agreement

between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated 12th September 2009.

According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield Industries Limited," and

3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August 2009, and same is binding

agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the claim application for the

recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has contended that Annexure-20

confirms that the 3rd Respondent Rishita Associates, received photo gate pass under (Annexure 11) in favour of the

86-contract labour including the Petitioner engaged by the 3rd Respondent between the period of contract, i.e., 16th

August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and (Annexure 20) is the photo

identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon completion of the work

contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and terminal benefits upon

the completion of the work contract, as contracted and settled under (annexure 11) between the second and 3rd

Respondents for executing the work contract of the first Respondent and Petitioner is entitled to receive retrenchment

allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The Petitioner is unskilled

and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay for 814 working days,

amounting to Rs. 80,657.23ps Since both third Respondent as well as the 2nd Respondent failed to pay the terminal

benefits upon the completion of the work contract on 15th August 2012, Petitioner workman demanded the legal dues

with interest from all Respondent collectively, but they did not pay. Further, it is submitted that after a lapse of

nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make all the labour

benefits payments directly to the workman such of that amount to be cleared against the work contract dated 12th

September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent. 1st Respondent

acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter (annexure 6)

dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and 1st Respondent

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

185

acknowledged the same, but it was in vain. Further, it is averred that the 2nd Respondent, vide (annexure 5) dated 12th

January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the Petitioner contract labour

and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all the contract labour

including Petitioner made representation through their union before the Regional Labour Commissioner Central

Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July 2015. The concerned

authority issued notices to all Respondents, but no relief was granted to the workman. Therefore, Petitioner has

moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues from Respondent.

Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract labour vide

(Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract Labour

(Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with interest at

the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against

2nd Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work.

1st Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September

2009, approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter

dated 15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging

sub-contractor does not establish any contractual relationship between the sub-contractor Rishita Associates and

Respondent No.1 Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved

from the Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract

labour are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was

completed on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the 1st

Respondent/RINL processed the bill exparte. Respondent contended that as directions issued by the Income Tax

Authorities to the Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as

dues to be paid to the Income Tax Department from the pending bills of the second Respondent/contractor M/s

Midfield Industries and accordingly, this Respondent deducted appropriate amount and paid to the Income Tax

Department. Further, Respondent contended that the terminal benefit claimed by the Petitioner does not form part of

wages and, as such the contractor as a direct employer is legally responsible to make all other payments if any to the

Petitioner. Therefore, the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

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[PART II—SEC. 3(ii)]

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No.3 submits

that Respondent contractors have not terminated or retrenched the services of workers at any point in respect of the

said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

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भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

187

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No.3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages to

him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from

16th August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012."

Further, MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of

labour for the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the

request of R1 has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-.

It is true that after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the

amount equivalent to the full and final amount as a special case by making partial modifications to the agreement

between it and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and

the date of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and

final payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.80,657.23ps. along with the interest for the work under contract is

not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable

of being computed in terms of money, and if any question arises as to the amount of money due or as to

the amount at which such benefit should be computed, then the question may, subject to any rules that

may be wait under this act, be decided by such labour court as may be specified in this behalf by the

appropriate government within a period of not exceeding three month."

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner is

entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

both the petition. It is settled law that the rule of evidence Act do not apply strictly to the matter under I.D. Act.

Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in support of claim

of Petitioner. In this context Petitioner has filed documents in evidence which has been exhibited by witness

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[PART II—SEC. 3(ii)]

WW1.The perusal of these document reveals that the document Ex. W1 is the form of certificate issued by principal

employer i.e., Deputy General Manager Visakhapatnam Steel Plant, Visakhapatnam to the effect that it has engaged

M/s. Midfield industries Ltd Respondent No.2 for the work of strapping of mill product in WRM as contractor at

Steel Plant, Visakhapatnam vide certificate dated 14th August 2009. Further, Document Ex. W8 is the letter dated

15th September 2009, issued by AGM works contract of Respondent No.1 addressed to M/s. Midfield Industries

Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009- 10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on M's

Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging M/s.

Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the order

under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-

contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are

mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.80,657.23ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at Sl. No. 38 and

against his name the total number of working days 868 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl. No. 38 name of the Petitioner, Sri Jagat

Singh, unskilled workman is recorded and against his name amount due towards full and final amount is shown as

Rs.80,657.23ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General Manager

Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment directly which

is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th August 2009 to 15th August

2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent No.1 by Respondent No.2 for

release of amount equivalent to full and final benefit due to contract labour. Thus, ongoing oral and documentary

evidence produced by the Petitioner, it is established that Petitioner was engaged by the Respondent No.3 as contract

labour for the work of Respondent No.1 on behalf of Respondent No.2 during the period from 12.8.2009 to 12.8.2012

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

189

and he is entitled to receive Rs. 80,657.23ps. towards full and final payment as terminal benefit from Respondent

No.3 as per terms of contract Ex.W8, W9, and Ex. W12. Further, it is established that Petitioner was engaged for

work by Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to 15.8.2012 to work in industry of

R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, ongoing oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.80,657.23ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No.1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by

2nd Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to

the workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and

relevant evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence.

Moreover, the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder,

therefore, burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he

failed to discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated 10th

March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

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[PART II—SEC. 3(ii)]

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

191

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No.3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service

w.e.f 16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No.2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

192

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 corresponding section 59 (2) under

the Industrial Relation Code is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 80,657.23ps. to the Petitioner within 30 days from the date of this

order Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of due

i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this the

9th day of December, 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri G. Laxman Rao

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

Ex.W3:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10: Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11: Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

Ex.W12:

Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13:

Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

193

Act, 1970 dt: 14.08.2009.

Ex.W14: Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15:

Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512814 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6:

Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

का.आ. 45.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

राष्ट्रीय इस्ट्पात जनगम जलजमट जविाखापत्तनम स्ट्टील प्लांट; जमडफील्ड इंडस्ट्रीज जलजमटेड; मेससा ऋजषता एसोजसएट्स के

प्रबंधतंत्र के संबद्ध जनयोजकों और श्री बी. जग्गू नायडू के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण एवं

श्रम न्यायालय, हजदराबाद, पंचाट (ररफरेन्स न.- एमपी 14/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित

करती हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-8]

194

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 45.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 14/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri B. Jaggu Naidu which was received along with soft copy of the award by the

Central Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-8]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Presiding Officer

Dated the 9th day of December 2025

M.P. No. 14/2017

Between:

B. Jaggu Naidu,

S/o. B. Swamy Naidu,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

…..Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

195

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 which is corresponding section 59 (2) under the Industrial Relation Code 2020 for the

recovery of the amount Rs. 75,639.38ps with regard to legitimate dues of full and final payments including

retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that 1st

Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the 2nd

Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and 3rd

Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further, it is

averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated 12th September

2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent accepted the work

contract initially for a period of 24 months from 16th August 2009, and later it was extended for another 12 months,

vide letter dated 17th October 2012, confirming the work contract extension up to 15th August 2012, by (Annexure

8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as contact labour upon

receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent vide agreement

between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated 12th September 2009.

According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield Industries Limited," and

3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August 2009, and same is binding

agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the claim application for the

recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has contended that Annexure-20

confirms that the 3rd Respondent Rishita Associates, received photo gate pass under (Annexure 11) in favour of the

86-contract labour including the Petitioner engaged by the 3rd Respondent between the period of contract, i.e., 16th

August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and (Annexure 20) is the photo

identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon completion of the work

contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and terminal benefits upon

the completion of the work contract, as contracted and settled under (annexure 11) between the second and 3rd

Respondents for executing the work contract of the first Respondent and Petitioner is entitled to receive retrenchment

allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The Petitioner is unskilled

and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay for 814 working days,

amounting to Rs. 75,639.38ps Since both third Respondent as well as the 2nd Respondent failed to pay the terminal

benefits upon the completion of the work contract on 15th August 2012, Petitioner workman demanded the legal dues

with interest from all Respondent collectively, but they did not pay. Further, it is submitted that after a lapse of

nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make all the labour

benefits payments directly to the workman such of that amount to be cleared against the work contract dated 12th

September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent. 1st Respondent

acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter (annexure 6)

dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and 1st Respondent

acknowledged the same, but it was in vain. Further, it is averred that the 2nd Respondent, vide (annexure 5) dated 12th

January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the Petitioner contract labour

and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all the contract labour

including Petitioner made representation through their union before the Regional Labour Commissioner Central

Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July 2015. The concerned

authority issued notices to all Respondents, but no relief was granted to the workman. Therefore, Petitioner has

moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues from Respondent.

Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract labour vide

(Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract Labour

(Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with interest at

the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against 2nd

196

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work. 1st

Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September 2009,

approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter dated

15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-contractor does

not establish any contractual relationship between the sub-contractor Rishita Associates and Respondent No.1

Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved from the

Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract labour

are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was

completed on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the 1st

Respondent/RINL processed the bill exparte. Respondent contended that as directions issued by the Income Tax

Authorities to the Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as

dues to be paid to the Income Tax Department from the pending bills of the second Respondent/contractor M/s

Midfield Industries and accordingly, this Respondent deducted appropriate amount and paid to the Income Tax

Department. Further, Respondent contended that the terminal benefit claimed by the Petitioner does not form part of

wages and, as such the contractor as a direct employer is legally responsible to make all other payments if any to the

Petitioner. Therefore, the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

197

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No.3

submits that Respondent contractors have not terminated or retrenched the services of workers at any point in respect

of the said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No.3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

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working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages to

him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from 16th

August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012." Further,

MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of labour for

the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the request of R1

has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-. It is true that

after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the amount

equivalent to the full and final amount as a special case by making partial modifications to the agreement between it

and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and the date

of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and final

payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.75,639.38ps. along with the interest for the work under contract is

not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable

of being computed in terms of money, and if any question arises as to the amount of money due or as to the

amount at which such benefit should be computed, then the question may, subject to any rules that may be

wait under this act, be decided by such labour court as may be specified in this behalf by the appropriate

government within a period of not exceeding three month."

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner is

entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

both the petition. It is settled law that the rule of evidence Act do not apply strictly to the matter under I.D. Act.

Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in support of claim

of Petitioner. In this context Petitioner has filed documents in evidence which has been exhibited by witness

WW1.The perusal of these document reveals that the document Ex. W1 is the form of certificate issued by principal

employer i.e., Deputy General Manager Visakhapatnam Steel Plant, Visakhapatnam to the effect that it has engaged

M/s. Midfield industries Ltd Respondent No.2 for the work of strapping of mill product in WRM as contractor at

Steel Plant, Visakhapatnam vide certificate dated 14th August 2009. Further, Document Ex. W8 is the letter dated

15th September 2009, issued by AGM works contract of Respondent No.1 addressed to M/s. Midfield Industries

Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009- 10/8090000359 dt: 12/09/2009

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

199

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on M's

Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging M/s.

Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the order

under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-

contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are

mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.75,639.38ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at Sl. No. 60 and

against his name the total number of working days 814 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl. No. 60 name of the Petitioner, Sri B. Jaggu

Naidu, unskilled workman is recorded and against his name amount due towards full and final amount is shown as

Rs.75,639.38ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General Manager

Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment directly which

is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th August 2009 to 15th August

2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent No.1 by Respondent No.2 for

release of amount equivalent to full and final benefit due to contract labour. Thus, on going oral and documentary

evidence produced by the Petitioner, it is established that Petitioner was engaged by the Respondent No.3 as contract

labour for the work of Respondent No.1 on behalf of Respondent No.2 during the period from 12.8.2009 to 12.8.2012

and he is entitled to receive Rs. 75,639.38ps. towards full and final payment as terminal benefit from Respondent

No.3 as per terms of contract Ex.W8, W9, and Ex. W12. Further, it is established that Petitioner was engaged for

work by Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to 15.8.2012 to work in industry of

R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

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[PART II—SEC. 3(ii)]

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, on going oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.75,639.38ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No.1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by

2nd Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to

the workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and

relevant evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence.

Moreover, the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder,

therefore, burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he

failed to discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated 10th

March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

201

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No.3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

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[PART II—SEC. 3(ii)]

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service w.e.f

16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No.2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 corresponding section 59 (2) under

the Industrial Relation Code is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 75,639.38ps. to the Petitioner within 30 days from the date of this

order Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of due

i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this the

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

203

9th day of December, 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri B. Jaggu Naidu .

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

Ex.W3:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10: Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11: Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

Ex.W12: Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13: Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14: Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of Licence issued to 3rd Respondent by Licencing

204

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512814 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6:

Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

का.आ. 46.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

राष्ट्रीय इस्ट्पात जनगम जलजमट जविाखापत्तनम स्ट्टील प्लांट; जमडफील्ड इंडस्ट्रीज जलजमटेड; मेससा ऋजषता एसोजसएट्स के

प्रबंधतंत्र के संबद्ध जनयोजकों और श्री ए. अप्पा राव के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण एवं

श्रम न्यायालय, हजदराबाद, पंचाट (ररफरेन्स न.- एमपी 16/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित

करती हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-9]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 46.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 16/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri A. Appa Rao which was received along with soft copy of the award by the Central

Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-9]

SALONI, Dy. Director

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

205

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Presiding Officer

Dated the 10th day of December 2025

M.P. No. 16/2017

Between:

A. Appa Rao,

S/o. A. Somulu,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

…..Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 for the recovery of the amount Rs. 79,913.85ps with regard to legitimate dues of full

and final payments including retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

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[PART II—SEC. 3(ii)]

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that

1st Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the

2nd Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and

3rd Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further,

it is averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated

12th September 2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent

accepted the work contract initially for a period of 24 months from 16th August 2009, and later it was extended for

another 12 months, vide letter dated 17th October 2012, confirming the work contract extension up to 15th August

2012, by (Annexure 8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as

contact labour upon receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent

vide agreement between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated

12th September 2009. According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield

Industries Limited," and 3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August

2009, and same is binding agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the

claim application for the recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has

contended that Annexure-20 confirms that the 3rd Respondent Rishita Associates, received photo gate pass under

(Annexure 11) in favour of the 86-contract labour including the Petitioner engaged by the 3rd Respondent between the

period of contract, i.e., 16th August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and

(Annexure 20) is the photo identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon

completion of the work contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and

terminal benefits upon the completion of the work contract, as contracted and settled under (annexure 11) between the

second and 3rd Respondents for executing the work contract of the first Respondent and Petitioner is entitled to

receive retrenchment allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The

Petitioner is unskilled and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay

for 860 working days, amounting to Rs. 79,913.85ps Since both third Respondent as well as the 2nd Respondent

failed to pay the terminal benefits upon the completion of the work contract on 15th August 2012, Petitioner workman

demanded the legal dues with interest from all Respondent collectively, but they did not pay. Further, it is submitted

that after a lapse of nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make

all the labour benefits payments directly to the workman such of that amount to be cleared against the work contract

dated 12th September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent. 1st

Respondent acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter

(annexure 6) dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and 1st

Respondent acknowledged the same, but it was in vain. Further, it is averred that the 2nd Respondent, vide (annexure

5) dated 12th January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the Petitioner

contract labour and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all the

contract labour including Petitioner made representation through their union before the Regional Labour

Commissioner Central Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July

2015. The concerned authority issued notices to all Respondents, but no relief was granted to the workman.

Therefore, Petitioner has moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues

from Respondent. Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract

labour vide (Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract

Labour (Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with

interest at the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against 2nd

Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work. 1st

Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September 2009,

approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter dated

15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-contractor does

not establish any contractual relationship between the sub-contractor Rishita Associates and Respondent No.1

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

207

Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved from the

Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract labour

are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was

completed on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the 1st

Respondent/RINL processed the bill exparte. Respondent contended that as directions issued by the Income Tax

Authorities to the Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as

dues to be paid to the Income Tax Department from the pending bills of the second Respondent/contractor

M/s Midfield Industries and accordingly, this Respondent deducted appropriate amount and paid to the Income Tax

Department. Further, Respondent contended that the terminal benefit claimed by the Petitioner does not form part of

wages and, as such the contractor as a direct employer is legally responsible to make all other payments if any to the

Petitioner. Therefore, the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No.3

submits that Respondent contractors have not terminated or retrenched the services of workers at any point in respect

of the said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

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[PART II—SEC. 3(ii)]

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No.3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages to

him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from 16th

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

209

August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012." Further,

MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of labour for

the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the request of R1

has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-. It is true that

after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the amount

equivalent to the full and final amount as a special case by making partial modifications to the agreement between it

and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and the date

of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and final

payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.79,913.85ps. along with the interest for the work under contract is

not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable

of being computed in terms of money, and if any question arises as to the amount of money due or as to the

amount at which such benefit should be computed, then the question may, subject to any rules that may be

wait under this act, be decided by such labour court as may be specified in this behalf by the appropriate

government within a period of not exceeding three month."

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner is

entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

both the petition. It is settled law that the rule of evidence Act do not apply strictly to the matter under I.D. Act.

Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in support of claim

of Petitioner. In this context Petitioner has filed documents in evidence

which has been exhibited by witness WW1.The perusal of these document reveals that the document Ex. W1 is the

form of certificate issued by principal employer i.e., Deputy General Manager Visakhapatnam Steel Plant,

Visakhapatnam to the effect that it has engaged M/s. Midfield industries Ltd Respondent No.2 for the work of

strapping of mill product in WRM as contractor at Steel Plant, Visakhapatnam vide certificate dated 14th August

2009. Further, Document Ex. W8 is the letter dated 15th September 2009, issued by AGM works contract of

Respondent No.1 addressed to M/s. Midfield Industries Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009-10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on M's

210

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging

M/s. Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the

order under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-

contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are

mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.79,913.85ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to

15th August 2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at

Sl. No. 63 and against his name the total number of working days 860 has been recorded. Further, document Ex. W15

is the statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl. No. 63 name of the Petitioner, Sri A. Appa

Rao, unskilled workman is recorded and against his name amount due towards full and final amount is shown as

Rs.79,913.85ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General Manager

Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment directly which

is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th August 2009 to 15th August

2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent No.1 by Respondent No.2 for

release of amount equivalent to full and final benefit due to contract labour. Thus, on going oral and documentary

evidence produced by the Petitioner, it is established that Petitioner was engaged by the Respondent No.3 as contract

labour for the work of Respondent No.1 on behalf of Respondent No.2 during the period from 12.8.2009 to 12.8.2012

and he is entitled to receive Rs. 79,913.85ps. towards full and final payment as terminal benefit from Respondent

No.3 as per terms of contract Ex.W8, W9, and Ex. W12. Further, it is established that Petitioner was engaged for

work by Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to 15.8.2012 to work in industry of

R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, on going oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.79,913.85ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No.1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by 2nd

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

211

Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to the

workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and relevant

evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence. Moreover,

the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder, therefore,

burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he failed to

discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated 10th

March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

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THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No.3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service w.e.f

16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

213

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No. 2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 79,913.85ps. to the Petitioner within 30 days from the date of this

order Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of due

i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this the

10th day of December 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri A. Appa Rao .

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

214

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

Ex.W3:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10: Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11: Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

Ex.W12: Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13: Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14: Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

215

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512814 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6:

Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

का.आ. 47.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

राष्ट्रीय इस्ट्पात जनगम जलजमट जविाखापत्तनम स्ट्टील प्लांट; जमडफील्ड इंडस्ट्रीज जलजमटेड; मेससा ऋजषता एसोजसएट्स के

प्रबंधतंत्र के संबद्ध जनयोजकों और श्री ए.वी. सुब्बा राजू के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण

एवं श्रम न्यायालय, हजदराबाद, पंचाट (ररफरेन्स न.- एमपी 17/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित

करती हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-10]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 47.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 17/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri A.V. Subba Raju which was received along with soft copy of the award by the

Central Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-10]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Presiding Officer

Dated the 10th day of December 2025

M.P. No. 17/2017

Between:

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THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

A.V. Subba Raju,

S/o. A. Krishnam Raju,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

…..Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 for the recovery of the amount Rs. 1,04,909.54ps with regard to legitimate dues of

full and final payments including retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that

1st Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the

2nd Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and

3rd Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further,

it is averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated

12th September 2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent

accepted the work contract initially for a period of 24 months from 16th August 2009, and later it was extended for

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

217

another 12 months, vide letter dated 17th October 2012, confirming the work contract extension up to 15th August

2012, by (Annexure 8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as

contact labour upon receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent

vide agreement between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated 12th

September 2009. According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield

Industries Limited," and 3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August

2009, and same is binding agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the

claim application for the recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has

contended that Annexure-20 confirms that the 3rd Respondent Rishita Associates, received photo gate pass under

(Annexure 11) in favour of the 86-contract labour including the Petitioner engaged by the 3rd Respondent between the

period of contract, i.e., 16th August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and

(Annexure 20) is the photo identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon

completion of the work contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and

terminal benefits upon the completion of the work contract, as contracted and settled under (annexure 11) between the

second and 3rd Respondents for executing the work contract of the first Respondent and Petitioner is entitled to

receive retrenchment allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The

Petitioner is unskilled and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay

for 902 working days, amounting to Rs. 1,04,909.54ps Since both third Respondent as well as the 2nd Respondent

failed to pay the terminal benefits upon the completion of the work contract on 15th August 2012, Petitioner workman

demanded the legal dues with interest from all Respondent collectively, but they did not pay. Further, it is submitted

that after a lapse of nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make

all the labour benefits payments directly to the workman such of that amount to be cleared against the work contract

dated 12th September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent.

1st Respondent acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter

(annexure 6) dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and

1st Respondent acknowledged the same, but it was in vain. Further, it is averred that the 2nd Respondent, vide

(annexure 5) dated 12th January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the

Petitioner contract labour and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all

the contract labour including Petitioner made representation through their union before the Regional Labour

Commissioner Central Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July

2015. The concerned authority issued notices to all Respondents, but no relief was granted to the workman.

Therefore, Petitioner has moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues

from Respondent. Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract

labour vide (Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract

Labour (Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with

interest at the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against

2nd Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work.

1st Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September

2009, approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter

dated 15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging

sub-contractor does not establish any contractual relationship between the sub-contractor Rishita Associates and

Respondent No.1 Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved

from the Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract

labour are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

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[PART II—SEC. 3(ii)]

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was completed

on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the 1st Respondent/RINL

processed the bill exparte. Respondent contended that as directions issued by the Income Tax Authorities to the

Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as dues to be paid to

the Income Tax Department from the pending bills of the second Respondent/contractor M/s Midfield Industries and

accordingly, this Respondent deducted appropriate amount and paid to the Income Tax Department. Further,

Respondent contended that the terminal benefit claimed by the Petitioner does not form part of wages and, as such the

contractor as a direct employer is legally responsible to make all other payments if any to the Petitioner. Therefore,

the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No.3

submits that Respondent contractors have not terminated or retrenched the services of workers at any point in respect

of the said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

219

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No.3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages

to him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from 16th

August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012." Further,

MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of labour for

the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the request of R1

has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-. It is true that

after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the amount

equivalent to the full and final amount as a special case by making partial modifications to the agreement between it

and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and the date

of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and final

payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

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[PART II—SEC. 3(ii)]

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.1,04,909.54ps. along with the interest for the work under contract

is not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from

Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable

of being computed in terms of money, and if any question arises as to the amount of money due or as to the

amount at which such benefit should be computed, then the question may, subject to any rules that may be

wait under this act, be decided by such labour court as may be specified in this behalf by the appropriate

government within a period of not exceeding three month."

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner is

entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

both the petition. It is settled law that the rule of evidence Act do not apply strictly to the matter under I.D. Act.

Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in support of claim

of Petitioner. In this context Petitioner has filed documents in evidence

which has been exhibited by witness WW1.The perusal of these document reveals that the document Ex. W1 is the

form of certificate issued by principal employer i.e., Deputy General Manager Visakhapatnam Steel Plant,

Visakhapatnam to the effect that it has engaged M/s. Midfield industries Ltd Respondent No.2 for the work of

strapping of mill product in WRM as contractor at Steel Plant, Visakhapatnam vide certificate dated 14th August

2009. Further, Document Ex. W8 is the letter dated 15th September 2009, issued by AGM works contract of

Respondent No.1 addressed to M/s. Midfield Industries Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009-10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on M's

Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging

M/s. Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the

order under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

221

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP

sub-contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment

are mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.1,04,909.54ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at Sl. No. 71 and

against his name the total number of working days 902 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl. No. 71 name of the Petitioner, Sri A.V. Subba

Raju, unskilled workman is recorded and against his name amount due towards full and final amount is shown as

Rs.1,04,909.54ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General

Manager Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment

directly which is to be cleared by Respondent No.2 in respect of contract labour for the period from

16th August 2009 to 15th August 2012. Similarly, documents Ex. W17 and W20 are the letters addressed to

Respondent No.1 by Respondent No.2 for release of amount equivalent to full and final benefit due to contract labour.

Thus, on going oral and documentary evidence produced by the Petitioner, it is established that Petitioner was

engaged by the Respondent No.3 as contract labour for the work of Respondent No.1 on behalf of Respondent No.2

during the period from 12.8.2009 to 12.8.2012 and he is entitled to receive Rs. 1,04,909.54ps. towards full and final

payment as terminal benefit from Respondent No.3 as per terms of contract Ex.W8, W9, and Ex. W12. Further, it is

established that Petitioner was engaged for work by Respondent No. 3 i.e., Rishitha Associates for the period from

16.8.2009 to 15.8.2012 to work in industry of R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam

Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, on going oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.1,04,909.54ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No.1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by 2nd

Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to the

workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and relevant

evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence. Moreover,

the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder, therefore,

burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he failed to

discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

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[PART II—SEC. 3(ii)]

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated 10th

March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

223

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No.3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service w.e.f

16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

224

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No.2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 1,04,909.54ps. to the Petitioner within 30 days from the date of

this order Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of

due i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this the

10th day of December 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri A.V. Subba Raju .

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

Ex.W3:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

225

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10: Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11:

Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

Ex.W12: Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13: Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14: Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

226

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512814 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6:

Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

का.आ. 48.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

राष्ट्रीय इस्ट्पात जनगम जलजमट जविाखापत्तनम स्ट्टील प्लांट; जमडफील्ड इंडस्ट्रीज जलजमटेड; मेससा ऋजषता एसोजसएट्स के

प्रबंधतंत्र के संबद्ध जनयोजकों और श्री डी. माधव राव के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण एवं

श्रम न्यायालय, हजदराबाद, पंचाट (ररफरेन्स न.- एमपी 18/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित

करती हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-11]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 48.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 18/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri D. Madhava Rao which was received along with soft copy of the award by the

Central Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-11]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Presiding Officer

Dated the 10th day of December 2025

M.P. No. 18/2017

Between:

D. Madhava Rao,

S/o. D. Appa Rao,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

…..Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

227

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 for the recovery of the amount Rs. 73,595.08ps with regard to legitimate dues of full

and final payments including retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that

1st Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the

2nd Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and

3rd Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further,

it is averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated

12th September 2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent

accepted the work contract initially for a period of 24 months from 16th August 2009, and later it was extended for

another 12 months, vide letter dated 17th October 2012, confirming the work contract extension up to 15th August

2012, by (Annexure 8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as

contact labour upon receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent

vide agreement between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated

12th September 2009. According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield

Industries Limited," and 3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August

2009, and same is binding agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the

claim application for the recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has

contended that Annexure-20 confirms that the 3rd Respondent Rishita Associates, received photo gate pass under

(Annexure 11) in favour of the 86-contract labour including the Petitioner engaged by the 3rd Respondent between the

period of contract, i.e., 16th August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and

(Annexure 20) is the photo identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon

completion of the work contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and

terminal benefits upon the completion of the work contract, as contracted and settled under (annexure 11) between the

second and 3rd Respondents for executing the work contract of the first Respondent and Petitioner is entitled to

receive retrenchment allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The

Petitioner is unskilled and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay

for 900 working days, amounting to Rs. 73,595.08ps Since both third Respondent as well as the 2nd Respondent

failed to pay the terminal benefits upon the completion of the work contract on 15th August 2012, Petitioner workman

demanded the legal dues with interest from all Respond83ent collectively, but they did not pay. Further, it is

submitted that after a lapse of nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19)

to make all the labour benefits payments directly to the workman such of that amount to be cleared against the work

contract dated 12th September 2009, from pending amount due to the 2nd Respondent‘s account with the

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[PART II—SEC. 3(ii)]

1st Respondent. 1st Respondent acknowledged the letter, but no payment was made. Moreover, Petitioner union also

addressed a letter (annexure 6) dated 24th March 2014, directly to 1st Respondent to release all the contract labour

legal dues, and 1st Respondent acknowledged the same, but it was in vain. Further, it is averred that the

2nd Respondent, vide (annexure 5) dated 12th January 2015, addressed letter to the 1st Respondent requesting to settle

all legal dues to the Petitioner contract labour and 1st Respondent acknowledged the receipt of this letter but did not

pay dues. Further, all the contract labour including Petitioner made representation through their union before the

Regional Labour Commissioner Central Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4)

dated 20th July 2015. The concerned authority issued notices to all Respondents, but no relief was granted to the

workman. Therefore, Petitioner has moved this petition under section 33C (2) of the ID Act for recovery of his

legitimate dues from Respondent. Petitioner submitted that the 1st Respondent is legally bound to pay all the legal

dues to the contract labour vide (Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4)

of the Contract Labour (Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate

dues with interest at the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against

2nd Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work.

1st Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September

2009, approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter

dated 15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-

contractor does not establish any contractual relationship between the sub-contractor Rishita Associates and

Respondent No.1 Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved

from the Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract

labour are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was

completed on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the 1st

Respondent/RINL processed the bill exparte. Respondent contended that as directions issued by the Income Tax

Authorities to the Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as

dues to be paid to the Income Tax Department from the pending bills of the second Respondent/contractor M/s

Midfield Industries and accordingly, this Respondent deducted appropriate amount and paid to the Income Tax

Department. Further, Respondent contended that the terminal benefit claimed by the Petitioner does not form part of

wages and, as such the contractor as a direct employer is legally responsible to make all other payments if any to the

Petitioner. Therefore, the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

229

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No. 3 submits

that Respondent contractors have not terminated or retrenched the services of workers at any point in respect of the

said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

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[PART II—SEC. 3(ii)]

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No.3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages

to him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from 16th

August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012." Further,

MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of labour for

the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the request of R1

has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-. It is true that

after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the amount

equivalent to the full and final amount as a special case by making partial modifications to the agreement between it

and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and the date

of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and final

payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.73,595.08ps. along with the interest for the work under contract is

not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable

of being computed in terms of money, and if any question arises as to the amount of money due or as to the

amount at which such benefit should be computed, then the question may, subject to any rules that may be

wait under this act, be decided by such labour court as may be specified in this behalf by the appropriate

government within a period of not exceeding three month."

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner is

entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

231

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

both the petition. It is settled law that the rule of evidence Act do not apply strictly to the matter under I.D. Act.

Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in support of claim

of Petitioner. In this context Petitioner has filed documents in evidence

which has been exhibited by witness WW1.The perusal of these document reveals that the document Ex. W1 is the

form of certificate issued by principal employer i.e., Deputy General Manager Visakhapatnam Steel Plant,

Visakhapatnam to the effect that it has engaged M/s. Midfield industries Ltd Respondent No.2 for the work of

strapping of mill product in WRM as contractor at Steel Plant, Visakhapatnam vide certificate dated 14th August

2009. Further, Document Ex. W8 is the letter dated 15th September 2009, issued by AGM works contract of

Respondent No.1 addressed to M/s. Midfield Industries Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009- 10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on M's

Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging M/s.

Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the order

under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-

contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are

mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.73,595.08ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No. 2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at Sl. No. 75 and

against his name the total number of working days 900 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl. No. 75 name of the Petitioner, Sri D.

Madhava Rao, unskilled workman is recorded and against his name amount due towards full and final amount is

shown as Rs.73,595.08ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General

232

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[PART II—SEC. 3(ii)]

Manager Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment

directly which is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th August

2009 to 15th August 2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent No.1 by

Respondent No.2 for release of amount equivalent to full and final benefit due to contract labour. Thus, on going

oral and documentary evidence produced by the Petitioner, it is established that Petitioner was engaged by the

Respondent No.3 as contract labour for the work of Respondent No.1 on behalf of Respondent No.2 during the period

from 12.8.2009 to 12.8.2012 and he is entitled to receive Rs. 73,595.08ps. towards full and final payment as terminal

benefit from Respondent No.3 as per terms of contract Ex.W8, W9, and Ex. W12. Further, it is established that

Petitioner was engaged for work by Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to

15.8.2012 to work in industry of R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, on going oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.73,595.08ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No. 1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No. 3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No. 1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by 2nd

Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to the

workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and relevant

evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence. Moreover,

the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder, therefore,

burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he failed to

discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated 10th

March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

233

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

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[PART II—SEC. 3(ii)]

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No.3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service w.e.f

16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No.2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

235

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 73,595.08ps. to the Petitioner within 30 days from the date of this

order Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of due

i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this the

10th day of December 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri D. Madhava Rao .

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

Ex.W3:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10:

Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11: Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

Ex.W12: Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

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THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Ex.W13: Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14: Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512814 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6:

Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

का.आ. 49.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

राष्ट्रीय इस्ट्पात जनगम जलजमट जविाखापत्तनम स्ट्टील प्लांट; जमडफील्ड इंडस्ट्रीज जलजमटेड; मेससा ऋजषता एसोजसएट्स के

प्रबंधतंत्र के संबद्ध जनयोजकों और श्री जी. दकरण के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण एवं श्रम

न्यायालय, हजदराबाद, पंचाट (ररफरेन्स न.- एमपी 19/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित करती

हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-12]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

237

S.O. 49.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 19/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri G. Kiran which was received along with soft copy of the award by the Central

Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-12]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Presiding Officer

Dated the 10th day of December 2025

M.P. No. 19/2017

Between:

G. Kiran,

S/o. G. Ramana,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

…..Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

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THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

the Industrial Dispute Act 1947 for the recovery of the amount Rs. 93,278.77ps with regard to legitimate dues of full

and final payments including retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that 1st

Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the 2nd

Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and 3rd

Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further, it is

averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated 12th September

2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent accepted the work

contract initially for a period of 24 months from 16th August 2009, and later it was extended for another 12 months,

vide letter dated 17th October 2012, confirming the work contract extension up to 15th August 2012, by (Annexure

8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as contact labour upon

receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent vide agreement

between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated 12th September 2009.

According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield Industries Limited," and

3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August 2009, and same is binding

agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the claim application for the

recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has contended that Annexure-20

confirms that the 3rd Respondent Rishita Associates, received photo gate pass under (Annexure 11) in favour of the

86-contract labour including the Petitioner engaged by the 3rd Respondent between the period of contract,

i.e., 16th August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and (Annexure 20) is the

photo identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon completion of the

work contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and terminal benefits

upon the completion of the work contract, as contracted and settled under (annexure 11) between the second and 3rd

Respondents for executing the work contract of the first Respondent and Petitioner is entitled to receive retrenchment

allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The Petitioner is unskilled

and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay for 802 working days,

amounting to Rs. 93,278.77ps Since both third Respondent as well as the 2nd Respondent failed to pay the terminal

benefits upon the completion of the work contract on 15th August 2012, Petitioner workman demanded the legal dues

with interest from all Respondent collectively, but they did not pay. Further, it is submitted that after a lapse of

nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make all the labour

benefits payments directly to the workman such of that amount to be cleared against the work contract dated

12th September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent. 1st

Respondent acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter

(annexure 6) dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and 1st

Respondent acknowledged the same, but it was in vain. Further, it is averred that the 2nd Respondent, vide (annexure

5) dated 12th January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the Petitioner

contract labour and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all the

contract labour including Petitioner made representation through their union before the Regional Labour

Commissioner Central Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July

2015. The concerned authority issued notices to all Respondents, but no relief was granted to the workman.

Therefore, Petitioner has moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues

from Respondent. Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract

labour vide (Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract

Labour (Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with

interest at the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against 2nd

Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8080200359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

239

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work. 1st

Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September 2009,

approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter dated

15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-contractor does

not establish any contractual relationship between the sub-contractor Rishita Associates and Respondent No.1

Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved from the

Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract labour

are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was

completed on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the 1st

Respondent/RINL processed the bill exparte. Respondent contended that as directions issued by the Income Tax

Authorities to the Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as

dues to be paid to the Income Tax Department from the pending bills of the second Respondent/contractor M/s

Midfield Industries and accordingly, this Respondent deducted appropriate amount and paid to the Income Tax

Department. Further, Respondent contended that the terminal benefit claimed by the Petitioner does not form part of

wages and, as such the contractor as a direct employer is legally responsible to make all other payments if any to the

Petitioner. Therefore, the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

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[PART II—SEC. 3(ii)]

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No.3

submits that Respondent contractors have not terminated or retrenched the services of workers at any point in respect

of the said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No.3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

241

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages to

him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from 16th

August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012." Further,

MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of labour for

the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the request of R1

has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-. It is true that

after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the amount

equivalent to the full and final amount as a special case by making partial modifications to the agreement between it

and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and the date

of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and final

payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.93,278.77ps. along with the interest for the work under contract is

not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable

of being computed in terms of money, and if any question arises as to the amount of money due or as to the

amount at which such benefit should be computed, then the question may, subject to any rules that may be

wait under this act, be decided by such labour court as may be specified in this behalf by the appropriate

government within a period of not exceeding three month."

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner is

entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

both the petition. It is settled law that the rule of evidence Act do not apply strictly to the matter under I.D. Act.

Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in support of claim

of Petitioner. In this context Petitioner has filed documents in evidence

which has been exhibited by witness WW1.The perusal of these document reveals that the document Ex. W1 is the

form of certificate issued by principal employer i.e., Deputy General Manager Visakhapatnam Steel Plant,

Visakhapatnam to the effect that it has engaged M/s. Midfield industries Ltd Respondent No.2 for the work of

strapping of mill product in WRM as contractor at Steel Plant, Visakhapatnam vide certificate dated 14th August

2009. Further, Document Ex. W8 is the letter dated 15th September 2009, issued by AGM works contract of

Respondent No.1 addressed to M/s. Midfield Industries Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009-10/8080200359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

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[PART II—SEC. 3(ii)]

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on M's

Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging M/s.

Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the order

under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-

contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are

mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.93,278.77ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at Sl. No. 81 and

against his name the total number of working days 802 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl. No. 81 name of the Petitioner, Sri G. Kiran,

unskilled workman is recorded and against his name amount due towards full and final amount is shown as

Rs.93,278.77ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General Manager

Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment directly which

is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th August 2009 to 15th August

2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent No.1 by Respondent No.2 for

release of amount equivalent to full and final benefit due to contract labour. Thus, on going oral and documentary

evidence produced by the Petitioner, it is established that Petitioner was engaged by the Respondent No.3 as contract

labour for the work of Respondent No.1 on behalf of Respondent No.2 during the period from 12.8.2009 to 12.8.2012

and he is entitled to receive Rs. 93,278.77ps. towards full and final payment as terminal benefit from Respondent

No.3 as per terms of contract Ex.W8, W9, and Ex. W12. Further, it is established that Petitioner was engaged for

work by Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to 15.8.2012 to work in industry of

R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, on going oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.93,278.77ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No.1.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

243

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by 2nd

Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to the

workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and relevant

evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence. Moreover,

the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder, therefore,

burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he failed to

discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated 10th

March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

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[PART II—SEC. 3(ii)]

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No.3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

245

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service

w.e.f 16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No. 3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No. 2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 93,278.77ps. to the Petitioner within 30 days from the date of this

order Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of due

i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this the

10th day of December 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

246

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Petitioner

Respondent

WW1: Sri G. Kiran .

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

Ex.W3:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10:

Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11: Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

Ex.W12: Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13:

Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14: Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

247

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512814 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6:

Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

का.आ. 50.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

राष्ट्रीय इस्ट्पात जनगम जलजमट जविाखापत्तनम स्ट्टील प्लांट; जमडफील्ड इंडस्ट्रीज जलजमटेड; मेससा ऋजषता एसोजसएट्स के

प्रबंधतंत्र के संबद्ध जनयोजकों और श्री जी. दकरण के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण एवं श्रम

न्यायालय, हजदराबाद, पंचाट (ररफरेन्स न.- एमपी 20/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित करती

हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-13]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 50.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 20/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri G. Kiran which was received along with soft copy of the award by the Central

Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-13]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Presiding Officer

248

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Dated the 10th day of December 2025

M.P. No. 20/2017

Between:

K.V. Appa Rao,

S/o. K. Suryanarayana,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

…..Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 for the recovery of the amount Rs. 83,816.62ps with regard to legitimate dues of full

and final payments including retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that

1st Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the

2nd Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

249

3rd Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further,

it is averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated

12th September 2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent

accepted the work contract initially for a period of 24 months from 16th August 2009, and later it was extended for

another 12 months, vide letter dated 17th October 2012, confirming the work contract extension up to 15th August

2012, by (Annexure 8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as

contact labour upon receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent

vide agreement between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated 12th

September 2009. According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield

Industries Limited," and 3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August

2009, and same is binding agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the

claim application for the recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has

contended that Annexure-20 confirms that the 3rd Respondent Rishita Associates, received photo gate pass under

(Annexure 11) in favour of the 86-contract labour including the Petitioner engaged by the 3rd Respondent between the

period of contract, i.e., 16th August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and

(Annexure 20) is the photo identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon

completion of the work contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and

terminal benefits upon the completion of the work contract, as contracted and settled under (annexure 11) between the

second and 3rd Respondents for executing the work contract of the first Respondent and Petitioner is entitled to

receive retrenchment allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The

Petitioner is unskilled and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay

for 902 working days, amounting to Rs. 83,816.62ps Since both third Respondent as well as the 2nd Respondent

failed to pay the terminal benefits upon the completion of the work contract on 15th August 2012, Petitioner workman

demanded the legal dues with interest from all Respondent collectively, but they did not pay. Further, it is submitted

that after a lapse of nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make

all the labour benefits payments directly to the workman such of that amount to be cleared against the work contract

dated 12th September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent.

1st Respondent acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter

(annexure 6) dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and 1st

Respondent acknowledged the same, but it was in vain. Further, it is averred that the 2nd Respondent, vide (annexure

5) dated 12th January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the Petitioner

contract labour and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all the

contract labour including Petitioner made representation through their union before the Regional Labour

Commissioner Central Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July

2015. The concerned authority issued notices to all Respondents, but no relief was granted to the workman.

Therefore, Petitioner has moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues

from Respondent. Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract

labour vide (Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract

Labour (Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with

interest at the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against 2nd

Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work. 1st

Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September 2009,

approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter dated

15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-contractor does

not establish any contractual relationship between the sub-contractor Rishita Associates and Respondent No.1

Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved from the

Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract labour

are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

250

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was

completed on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the 1st

Respondent/RINL processed the bill exparte. Respondent contended that as directions issued by the Income Tax

Authorities to the Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as

dues to be paid to the Income Tax Department from the pending bills of the second Respondent/contractor M/s

Midfield Industries and accordingly, this Respondent deducted appropriate amount and paid to the Income Tax

Department. Further, Respondent contended that the terminal benefit claimed by the Petitioner does not form part of

wages and, as such the contractor as a direct employer is legally responsible to make all other payments if any to the

Petitioner. Therefore, the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on

sub-contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for

engaging the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield

Industries Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved

from the contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This

clearly establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the

Second Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by

the Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein

have worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract

period of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor

and thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This

Respondent was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on

15.08.2012 the obligations under sub-contract of the Respondent with the second Respondent came to end.

Respondent No.3 submits that Respondent contractors have not terminated or retrenched the services of workers at

any point in respect of the said contract including the Petitioner herein and obligations on completion of the contract

period does not arise. Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment

compensation as his employment is still continuing under the subsequent contractors without any break in service.

Further, it is contended that first Respondent RINL continued the second Respondent/contractor under a fresh work

order with effect from 16.08.2012 and contract labour including the Petitioner herein continued his services under the

second Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the

Petitioner, it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and

this Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

251

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No. 3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages

to him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from

16th August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012."

Further, MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of

labour for the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the

request of R1 has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-.

It is true that after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the

amount equivalent to the full and final amount as a special case by making partial modifications to the agreement

between it and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and

the date of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and

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[PART II—SEC. 3(ii)]

final payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.83,816.62ps. along with the interest for the work under contract is

not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable of

being computed in terms of money, and if any question arises as to the amount of money due or as to the

amount at which such benefit should be computed, then the question may, subject to any rules that may be wait

under this act, be decided by such labour court as may be specified in this behalf by the appropriate government

within a period of not exceeding three month."

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner is

entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

both the petition. It is settled law that the rule of evidence Act do not apply strictly to the matter under I.D. Act.

Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in support of claim

of Petitioner. In this context Petitioner has filed documents in evidenc which has been exhibited by witness

WW1.The perusal of these document reveals that the document Ex. W1 is the form of certificate issued by principal

employer i.e., Deputy General Manager Visakhapatnam Steel Plant, Visakhapatnam to the effect that it has engaged

M/s. Midfield industries Ltd Respondent No.2 for the work of strapping of mill product in WRM as contractor at

Steel Plant, Visakhapatnam vide certificate dated 14th August 2009. Further, Document Ex. W8 is the letter dated

15th September 2009, issued by AGM works contract of Respondent No.1 addressed to M/s. Midfield Industries

Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009- 10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on M's

Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging

M/s. Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

253

order under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-

contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are

mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.83,816.62ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at Sl. No. 19 and

against his name the total number of working days 902 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl. No. 19 name of the Petitioner, Sri K.V. Appa

Rao, unskilled workman is recorded and against his name amount due towards full and final amount is shown as

Rs.83,816.62ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General Manager

Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment directly which

is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th August 2009 to 15th August

2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent No.1 by Respondent No. 2

for release of amount equivalent to full and final benefit due to contract labour. Thus, on going oral and documentary

evidence produced by the Petitioner, it is established that Petitioner was engaged by the Respondent No.3 as contract

labour for the work of Respondent No.1 on behalf of Respondent No.2 during the period from 12.8.2009 to 12.8.2012

and he is entitled to receive Rs. 83,816.62ps. towards full and final payment as terminal benefit from Respondent

No.3 as per terms of contract Ex.W8, W9, and Ex. W12. Further, it is established that Petitioner was engaged for

work by Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to 15.8.2012 to work in industry of

R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, on going oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.83,816.62ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No.1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by 2nd

Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to the

workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and relevant

evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence. Moreover,

the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder, therefore,

burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he failed to

discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

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[PART II—SEC. 3(ii)]

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated 10th

March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

255

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No.3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service w.e.f

16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

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[PART II—SEC. 3(ii)]

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No.2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 83,816.62ps. to the Petitioner within 30 days from the date of this

order Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of due

i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this the

10th day of December 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri K.V. Appa Rao .

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1: Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2: Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

Ex.W3:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

[भाग II—खण् ड 3(ii)]

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257

Ex.W4:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10:

Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11:

Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

Ex.W12:

Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13:

Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14:

Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15:

Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

258

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512814 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6:

Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

का.आ. 51.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

राष्ट्रीय इस्ट्पात जनगम जलजमट जविाखापत्तनम स्ट्टील प्लांट; जमडफील्ड इंडस्ट्रीज जलजमटेड; मेससा ऋजषता एसोजसएट्स के

प्रबंधतंत्र के संबद्ध जनयोजकों और श्री ए. दुगाा प्रसाद के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण एवं

श्रम न्यायालय, हजदराबाद, पंचाट (ररफरेन्स न.- एमपी 21/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित

करती हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-14]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 51.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 21/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri A. Durga Prasad which was received along with soft copy of the award by the

Central Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-14]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Presiding Officer

Dated the 11th day of December 2025

M.P. No. 21/2017

Between:

A. Durga Prasad,

S/o. Ranga Ro,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

259

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

…..Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 for the recovery of the amount Rs. 1,02,932.31ps with regard to legitimate dues of

full and final payments including retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that

1st Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the

2nd Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and

3rd Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further,

it is averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated

12th September 2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent

accepted the work contract initially for a period of 24 months from 16th August 2009, and later it was extended for

another 12 months, vide letter dated 17th October 2012, confirming the work contract extension up to 15th August

2012, by (Annexure 8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as

contact labour upon receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent

vide agreement between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated 12th

September 2009. According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield

260

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Industries Limited," and 3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August

2009, and same is binding agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the

claim application for the recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has

contended that Annexure-20 confirms that the 3rd Respondent Rishita Associates, received photo gate pass under

(Annexure 11) in favour of the 86-contract labour including the Petitioner engaged by the 3rd Respondent between the

period of contract, i.e., 16th August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and

(Annexure 20) is the photo identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon

completion of the work contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and

terminal benefits upon the completion of the work contract, as contracted and settled under (annexure 11) between the

second and 3rd Respondents for executing the work contract of the first Respondent and Petitioner is entitled to

receive retrenchment allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The

Petitioner is unskilled and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay

for 885 working days, amounting to Rs. 1,02,932.31ps Since both third Respondent as well as the 2nd Respondent

failed to pay the terminal benefits upon the completion of the work contract on 15th August 2012, Petitioner workman

demanded the legal dues with interest from all Respondent collectively, but they did not pay. Further, it is submitted

that after a lapse of nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make

all the labour benefits payments directly to the workman such of that amount to be cleared against the work contract

dated 12th September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent. 1st

Respondent acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter

(annexure 6) dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and

1st Respondent acknowledged the same, but it was in vain. Further, it is averred that the 2nd Respondent, vide

(annexure 5) dated 12th January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the

Petitioner contract labour and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all

the contract labour including Petitioner made representation through their union before the Regional Labour

Commissioner Central Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July

2015. The concerned authority issued notices to all Respondents, but no relief was granted to the workman.

Therefore, Petitioner has moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues

from Respondent. Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract

labour vide (Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract

Labour (Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with

interest at the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against 2nd

Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work.

1st Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September

2009, approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter

dated 15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-

contractor does not establish any contractual relationship between the sub-contractor Rishita Associates and

Respondent No.1 Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved

from the Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract

labour are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/

sub-contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of

the contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

261

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was

completed on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the 1st

Respondent/RINL processed the bill exparte. Respondent contended that as directions issued by the Income Tax

Authorities to the Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as

dues to be paid to the Income Tax Department from the pending bills of the second Respondent/contractor M/s

Midfield Industries and accordingly, this Respondent deducted appropriate amount and paid to the Income Tax

Department. Further, Respondent contended that the terminal benefit claimed by the Petitioner does not form part of

wages and, as such the contractor as a direct employer is legally responsible to make all other payments if any to the

Petitioner. Therefore, the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No.3

submits that Respondent contractors have not terminated or retrenched the services of workers at any point in respect

of the said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

262

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No. 3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No. 2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages

to him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from 16th

August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012." Further,

MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of labour for

the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the request of R1

has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-. It is true that

after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the amount

equivalent to the full and final amount as a special case by making partial modifications to the agreement between it

and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and the date

of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and final

payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

263

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.1,02,932.31ps. along with the interest for the work under contract

is not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from

Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable

of being computed in terms of money, and if any question arises as to the amount of money due or as to

the amount at which such benefit should be computed, then the question may, subject to any rules that

may be wait under this act, be decided by such labour court as may be specified in this behalf by the

appropriate government within a period of not exceeding three month."

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner is

entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

both the petition. It is settled law that the rule of evidence Act do not apply strictly to the matter under I.D. Act.

Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in support of claim

of Petitioner. In this context Petitioner has filed documents in evidence which has been exhibited by witness

WW1.The perusal of these document reveals that the document Ex. W1 is the form of certificate issued by principal

employer i.e., Deputy General Manager Visakhapatnam Steel Plant, Visakhapatnam to the effect that it has engaged

M/s. Midfield industries Ltd Respondent No.2 for the work of strapping of mill product in WRM as contractor at

Steel Plant, Visakhapatnam vide certificate dated 14th August 2009. Further, Document Ex. W8 is the letter dated

15th September 2009, issued by AGM works contract of Respondent No.1 addressed to M/s. Midfield Industries

Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009-10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on M's

Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging

M/s. Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the

order under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

264

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-

contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are

mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.1,02,932.31ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at Sl. No. 1 and

against his name the total number of working days 885 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl. No. 1 name of the Petitioner, Sri A. Durga

Prasad, unskilled workman is recorded and against his name amount due towards full and final amount is shown as

Rs.1,02,932.31ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General

Manager Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment

directly which is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th August

2009 to 15th August 2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent No.1 by

Respondent No.2 for release of amount equivalent to full and final benefit due to contract labour. Thus, on going

oral and documentary evidence produced by the Petitioner, it is established that Petitioner was engaged by the

Respondent No.3 as contract labour for the work of Respondent No.1 on behalf of Respondent No.2 during the period

from 12.8.2009 to 12.8.2012 and he is entitled to receive Rs. 1,02,932.31ps. towards full and final payment as

terminal benefit from Respondent No.3 as per terms of contract Ex.W8, W9, and Ex. W12. Further, it is established

that Petitioner was engaged for work by Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to

15.8.2012 to work in industry of R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, on going oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.1,02,932.31ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No.1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by 2nd

Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to the

workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and relevant

evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence. Moreover,

the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder, therefore,

burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he failed to

discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated 10th

March 2025, the Hon‘ble High Court of Kolkata has held:

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

265

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

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THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No.3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service w.e.f

16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

267

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No.2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 1,02,932.31ps. to the Petitioner within 30 days from the date of

this order Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of

due i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to

Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this

the 11th day of December 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri A. Durga Prasad .

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

Ex.W3:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent

268

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10:

Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11:

Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

Ex.W12:

Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13:

Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14:

Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15:

Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16:

Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512814 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

269

Ex.M6: Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

का.आ. 52.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

राष्ट्रीय इस्ट्पात जनगम जलजमट जविाखापत्तनम स्ट्टील प्लांट; जमडफील्ड इंडस्ट्रीज जलजमटेड; मेससा ऋजषता एसोजसएट्स के

प्रबंधतंत्र के संबद्ध जनयोजकों और श्री डी. नूका राजू के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण एवं

श्रम न्यायालय, हजदराबाद, पंचाट (ररफरेन्स न.- एमपी 22/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित

करती हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-15]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 52.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 22/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri D. Nooka Raju which was received along with soft copy of the award by the

Central Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-15]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Presiding Officer

Dated the 11th day of December 2025

M.P. No. 22/2017

Between:

D. Nooka Raju,

S/o. D. Durayya,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

…..Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

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[PART II—SEC. 3(ii)]

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 for the recovery of the amount Rs. 83,166.15ps with regard to legitimate dues of full

and final payments including retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that

1st Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the

2nd Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and

3rd Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further,

it is averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated

12th September 2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent

accepted the work contract initially for a period of 24 months from 16th August 2009, and later it was extended for

another 12 months, vide letter dated 17th October 2012, confirming the work contract extension up to 15th August

2012, by (Annexure 8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as

contact labour upon receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent

vide agreement between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated 12th

September 2009. According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield

Industries Limited," and 3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August

2009, and same is binding agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the

claim application for the recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has

contended that Annexure-20 confirms that the 3rd Respondent Rishita Associates, received photo gate pass under

(Annexure 11) in favour of the 86-contract labour including the Petitioner engaged by the 3rd Respondent between the

period of contract, i.e., 16th August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and

(Annexure 20) is the photo identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon

completion of the work contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and

terminal benefits upon the completion of the work contract, as contracted and settled under (annexure 11) between the

second and 3rd Respondents for executing the work contract of the first Respondent and Petitioner is entitled to

receive retrenchment allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The

Petitioner is unskilled and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay

for 895 working days, amounting to Rs. 83,166.15ps Since both third Respondent as well as the 2nd Respondent

failed to pay the terminal benefits upon the completion of the work contract on 15th August 2012, Petitioner workman

demanded the legal dues with interest from all Respondent collectively, but they did not pay. Further, it is submitted

that after a lapse of nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make

all the labour benefits payments directly to the workman such of that amount to be cleared against the work contract

dated 12th September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent. 1st

Respondent acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter

(annexure 6) dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and 1st

Respondent acknowledged the same, but it was in vain. Further, it is averred that the 2nd Respondent, vide (annexure

5) dated 12th January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the Petitioner

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

271

contract labour and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all the

contract labour including Petitioner made representation through their union before the Regional Labour

Commissioner Central Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July

2015. The concerned authority issued notices to all Respondents, but no relief was granted to the workman.

Therefore, Petitioner has moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues

from Respondent. Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract

labour vide (Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract

Labour (Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with

interest at the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against 2nd

Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work. 1st

Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September 2009,

approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter dated

15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-contractor does

not establish any contractual relationship between the sub-contractor Rishita Associates and Respondent No. 1

Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved from the

Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract labour are

the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was

completed on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the 1st

Respondent/RINL processed the bill exparte. Respondent contended that as directions issued by the Income Tax

Authorities to the Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as

dues to be paid to the Income Tax Department from the pending bills of the second Respondent/contractor M/s

Midfield Industries and accordingly, this Respondent deducted appropriate amount and paid to the Income Tax

Department. Further, Respondent contended that the terminal benefit claimed by the Petitioner does not form part of

wages and, as such the contractor as a direct employer is legally responsible to make all other payments if any to the

Petitioner. Therefore, the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

272

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No.3

submits that Respondent contractors have not terminated or retrenched the services of workers at any point in respect

of the said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

273

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No.3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages

to him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from

16th August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012."

Further, MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of

labour for the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the

request of R1 has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-.

It is true that after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the

amount equivalent to the full and final amount as a special case by making partial modifications to the agreement

between it and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and

the date of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and

final payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.83,166.15ps. along with the interest for the work under contract is

not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable

of being computed in terms of money, and if any question arises as to the amount of money due or as to

the amount at which such benefit should be computed, then the question may, subject to any rules that

may be wait under this act, be decided by such labour court as may be specified in this behalf by the

appropriate government within a period of not exceeding three month."

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner is

entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

both the petition. It is settled law that the rule of evidence Act do not apply strictly to the matter under I.D. Act.

Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in support of claim

of Petitioner. In this context Petitioner has filed documents in evidence which has been exhibited by witness

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THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

WW1.The perusal of these document reveals that the document Ex. W1 is the form of certificate issued by principal

employer i.e., Deputy General Manager Visakhapatnam Steel Plant, Visakhapatnam to the effect that it has engaged

M/s. Midfield industries Ltd Respondent No.2 for the work of strapping of mill product in WRM as contractor at

Steel Plant, Visakhapatnam vide certificate dated 14th August 2009. Further, Document Ex. W8 is the letter dated

15th September 2009, issued by AGM works contract of Respondent No.1 addressed to M/s. Midfield Industries

Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009-10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on M's

Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging M/s.

Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the order

under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-

contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are

mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.83,166.15ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at Sl. No. 55 and

against his name the total number of working days 895 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl. No. 55 name of the Petitioner, Sri D. Nooka

Raju, unskilled workman is recorded and against his name amount due towards full and final amount is shown as

Rs.83,166.15ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General Manager

Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment directly which

is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th August 2009 to 15th August

2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent No.1 by Respondent No.2 for

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

275

release of amount equivalent to full and final benefit due to contract labour. Thus, on going oral and documentary

evidence produced by the Petitioner, it is established that Petitioner was engaged by the Respondent No.3 as contract

labour for the work of Respondent No.1 on behalf of Respondent No.2 during the period from 12.8.2009 to 12.8.2012

and he is entitled to receive Rs. 83,166.15ps. towards full and final payment as terminal benefit from Respondent

No.3 as per terms of contract Ex.W8, W9, and Ex. W12. Further, it is established that Petitioner was engaged for

work by Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to 15.8.2012 to work in industry of

R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, on going oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.83,166.15ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No. 1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by

2nd Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to

the workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and

relevant evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence.

Moreover, the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder,

therefore, burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he

failed to discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated 10th

March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

276

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

277

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No. 3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service w.e.f

16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No.2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

278

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 83,166.15ps. to the Petitioner within 30 days from the date of this

order Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of due

i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this the

11th day of December 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri D. Nooka Raju .

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

Ex.W3:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10: Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11: Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

Ex.W12: Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13: Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

279

Act, 1970 dt: 14.08.2009.

Ex.W14: Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512814 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6:

Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

का.आ. 53.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

राष्ट्रीय इस्ट्पात जनगम जलजमट जविाखापत्तनम स्ट्टील प्लांट; जमडफील्ड इंडस्ट्रीज जलजमटेड; मेससा ऋजषता एसोजसएट्स के

प्रबंधतंत्र के संबद्ध जनयोजकों और श्री एम. प्रकाि राव के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण एवं

श्रम न्यायालय, हजदराबाद, पंचाट (ररफरेन्स न.- एमपी 23/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित

करती हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

280

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

[सं. ज -16025/03/2026-आईआर( )-16]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 53.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 23/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri M. Prakash Rao which was received along with soft copy of the award by the

Central Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-16]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Presiding Officer

Dated the 11th day of December 2025

M.P. No. 23/2017

Between:

M. Prakash Rao,

S/o. M. Appala Naidu,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

…..Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

281

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 for the recovery of the amount Rs. 83,909.54ps with regard to legitimate dues of full

and final payments including retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that

1st Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the

2nd Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and

3rd Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further,

it is averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated

12th September 2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent

accepted the work contract initially for a period of 24 months from 16th August 2009, and later it was extended for

another 12 months, vide letter dated 17th October 2012, confirming the work contract extension up to 15th August

2012, by (Annexure 8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as

contact labour upon receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent

vide agreement between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated 12th

September 2009. According to (Annexure 11) which is the agreement between the 2nd Respondent,

"Midfield Industries Limited," and 3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated

16th August 2009, and same is binding agreement/settlement between the 2nd and 3rd Respondents and is the

foundation for the claim application for the recovery of the arrears as settled under (Annexure 11) settlement. Further,

Petitioner has contended that Annexure-20 confirms that the 3rd Respondent Rishita Associates, received photo gate

pass under (Annexure 11) in favour of the 86-contract labour including the Petitioner engaged by the 3rd Respondent

between the period of contract, i.e., 16th August 2009, to 15th August 2012, for 36 months on behalf of the 2nd

Respondent and (Annexure 20) is the photo identity gate pass cancellation order issued by 1st Respondent for 86

contract labour upon completion of the work contract. Further, it is averred that the Petitioner workmen are entitled

to receive wages and terminal benefits upon the completion of the work contract, as contracted and settled under

(annexure 11) between the second and 3rd Respondents for executing the work contract of the first Respondent and

Petitioner is entitled to receive retrenchment allowances for contract labour at the rate of "actual working days/26 x

month" 8 days. The Petitioner is unskilled and is entitled for the arrear of the amount due to words notice pay, service

pay, and leave pay for 903 working days, amounting to Rs. 83,909.54ps Since both third Respondent as well as the

2nd Respondent failed to pay the terminal benefits upon the completion of the work contract on 15th August 2012,

Petitioner workman demanded the legal dues with interest from all Respondent collectively, but they did not pay.

Further, it is submitted that after a lapse of nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent

(annexure 19) to make all the labour benefits payments directly to the workman such of that amount to be cleared

against the work contract dated 12th September 2009, from pending amount due to the 2nd Respondent‘s account with

the 1st Respondent. 1st Respondent acknowledged the letter, but no payment was made. Moreover, Petitioner union

also addressed a letter (annexure 6) dated 24th March 2014, directly to 1st Respondent to release all the contract

labour legal dues, and 1st Respondent acknowledged the same, but it was in vain. Further, it is averred that the 2nd

Respondent, vide (annexure 5) dated 12th January 2015, addressed letter to the 1st Respondent requesting to settle all

legal dues to the Petitioner contract labour and 1st Respondent acknowledged the receipt of this letter but did not pay

dues. Further, all the contract labour including Petitioner made representation through their union before the

Regional Labour Commissioner Central Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4)

dated 20th July 2015. The concerned authority issued notices to all Respondents, but no relief was granted to the

workman. Therefore, Petitioner has moved this petition under section 33C (2) of the ID Act for recovery of his

legitimate dues from Respondent. Petitioner submitted that the 1st Respondent is legally bound to pay all the legal

dues to the contract labour vide (Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4)

of the Contract Labour (Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate

dues with interest at the rate of 18% per annum.

282

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against 2nd

Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work.

1st Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September

2009, approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter

dated 15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-

contractor does not establish any contractual relationship between the sub-contractor Rishita Associates and

Respondent No.1 Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved

from the Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract

labour are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was

completed on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the 1st

Respondent/RINL processed the bill exparte. Respondent contended that as directions issued by the Income Tax

Authorities to the Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as

dues to be paid to the Income Tax Department from the pending bills of the second Respondent/contractor M/s

Midfield Industries and accordingly, this Respondent deducted appropriate amount and paid to the Income Tax

Department. Further, Respondent contended that the terminal benefit claimed by the Petitioner does not form part of

wages and, as such the contractor as a direct employer is legally responsible to make all other payments if any to the

Petitioner. Therefore, the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

[भाग II—खण् ड 3(ii)]

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contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No. 3 submits

that Respondent contractors have not terminated or retrenched the services of workers at any point in respect of the

said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

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[PART II—SEC. 3(ii)]

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No. 3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages

to him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from 16th

August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012." Further,

MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of labour for

the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the request of R1

has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-. It is true that

after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the amount

equivalent to the full and final amount as a special case by making partial modifications to the agreement between it

and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and the date

of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and final

payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.83,909.54ps. along with the interest for the work under contract is

not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable

of being computed in terms of money, and if any question arises as to the amount of money due or as to the

amount at which such benefit should be computed, then the question may, subject to any rules that may be

wait under this act, be decided by such labour court as may be specified in this behalf by the appropriate

government within a period of not exceeding three month."

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner is

entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

both the petition. It is settled law that the rule of evidence Act do not apply strictly to the matter under I.D. Act.

Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in support of claim

of Petitioner. In this context Petitioner has filed documents in evidence which has been exhibited by witness

WW1.The perusal of these document reveals that the document Ex. W1 is the form of certificate issued by principal

employer i.e., Deputy General Manager Visakhapatnam Steel Plant, Visakhapatnam to the effect that it has engaged

M/s. Midfield industries Ltd Respondent No.2 for the work of strapping of mill product in WRM as contractor at

Steel Plant, Visakhapatnam vide certificate dated 14th August 2009. Further, Document Ex. W8 is the letter dated

15th September 2009, issued by AGM works contract of Respondent No.1 addressed to M/s. Midfield Industries

Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

285

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009-10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on M's

Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging M/s.

Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the order

under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-

contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are

mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.83,909.54ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at Sl. No. 66 and

against his name the total number of working days 903 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl. No. 66 name of the Petitioner, Sri M.

Prakash Rao, unskilled workman is recorded and against his name amount due towards full and final amount is shown

as Rs.83,909.54ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General

Manager Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment

directly which is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th August

2009 to 15th August 2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent No.1 by

Respondent No.2 for release of amount equivalent to full and final benefit due to contract labour. Thus, on going

oral and documentary evidence produced by the Petitioner, it is established that Petitioner was engaged by the

Respondent No.3 as contract labour for the work of Respondent No.1 on behalf of Respondent No.2 during the period

from 12.8.2009 to 12.8.2012 and he is entitled to receive Rs. 83,909.54ps. towards full and final payment as terminal

benefit from Respondent No.3 as per terms of contract Ex.W8, W9, and Ex. W12. Further, it is established that

Petitioner was engaged for work by Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to

15.8.2012 to work in industry of R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

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[PART II—SEC. 3(ii)]

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, on going oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.83,909.54ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No.1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by 2nd

Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to the

workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and relevant

evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence. Moreover,

the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder, therefore,

burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he failed to

discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated 10th

March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

[भाग II—खण् ड 3(ii)]

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287

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No.3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

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[PART II—SEC. 3(ii)]

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service w.e.f

16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No.2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 83,909.54ps. to the Petitioner within 30 days from the date of this

order Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of due

i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

289

Dictated to Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this the

11th day of December 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri M. Prakash Rao .

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

Ex.W3:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10:

Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11: Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

Ex.W12: Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13: Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14: Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of Licence issued to 3rd Respondent by Licencing

290

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[PART II—SEC. 3(ii)]

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512814 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6:

Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

का.आ. 54.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

राष्ट्रीय इस्ट्पात जनगम जलजमट जविाखापत्तनम स्ट्टील प्लांट; जमडफील्ड इंडस्ट्रीज जलजमटेड; मेससा ऋजषता एसोजसएट्स के

प्रबंधतंत्र के संबद्ध जनयोजकों और श्री के.पी. पेंटय्या के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण एवं

श्रम न्यायालय, हजदराबाद, पंचाट (ररफरेन्स न.- एमपी 24/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित

करती हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-17]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 54.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 24/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri K.P. Pentayya which was received along with soft copy of the award by the

Central Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-17]

SALONI, Dy. Director

ANNEXURE

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

291

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Presiding Officer

Dated the 11th day of December 2025

M.P. No. 24/2017

Between:

K.P. Pentayya,

S/o. K. Ramulu,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

…..Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 for the recovery of the amount Rs. 79,263.38ps with regard to legitimate dues of full

and final payments including retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

292

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that

1st Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the

2nd Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and

3rd Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further,

it is averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated

12th September 2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent

accepted the work contract initially for a period of 24 months from 16th August 2009, and later it was extended for

another 12 months, vide letter dated 17th October 2012, confirming the work contract extension up to 15th August

2012, by (Annexure 8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as

contact labour upon receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent

vide agreement between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated

12th September 2009. According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield

Industries Limited," and 3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August

2009, and same is binding agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the

claim application for the recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has

contended that Annexure-20 confirms that the 3rd Respondent Rishita Associates, received photo gate pass under

(Annexure 11) in favour of the 86-contract labour including the Petitioner engaged by the 3rd Respondent between the

period of contract, i.e., 16th August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and

(Annexure 20) is the photo identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon

completion of the work contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and

terminal benefits upon the completion of the work contract, as contracted and settled under (annexure 11) between the

second and 3rd Respondents for executing the work contract of the first Respondent and Petitioner is entitled to

receive retrenchment allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The

Petitioner is unskilled and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay

for 853 working days, amounting to Rs. 79,263.38ps Since both third Respondent as well as the 2nd Respondent

failed to pay the terminal benefits upon the completion of the work contract on 15th August 2012, Petitioner workman

demanded the legal dues with interest from all Respondent collectively, but they did not pay. Further, it is submitted

that after a lapse of nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make

all the labour benefits payments directly to the workman such of that amount to be cleared against the work contract

dated 12th September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent.

1st Respondent acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter

(annexure 6) dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and 1st

Respondent acknowledged the same, but it was in vain. Further, it is averred that the 2nd Respondent, vide (annexure

5) dated 12th January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the Petitioner

contract labour and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all the

contract labour including Petitioner made representation through their union before the Regional Labour

Commissioner Central Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July

2015. The concerned authority issued notices to all Respondents, but no relief was granted to the workman.

Therefore, Petitioner has moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues

from Respondent. Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract

labour vide (Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract

Labour (Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with

interest at the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against 2nd

Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work. 1st

Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September 2009,

approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter dated

15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-contractor does

not establish any contractual relationship between the sub-contractor Rishita Associates and Respondent No. 1

Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved from the

Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract labour

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

293

are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was

completed on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the

1st Respondent/RINL processed the bill exparte. Respondent contended that as directions issued by the Income Tax

Authorities to the Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as

dues to be paid to the Income Tax Department from the pending bills of the second Respondent/contractor

M/s Midfield Industries and accordingly, this Respondent deducted appropriate amount and paid to the Income Tax

Department. Further, Respondent contended that the terminal benefit claimed by the Petitioner does not form part of

wages and, as such the contractor as a direct employer is legally responsible to make all other payments if any to the

Petitioner. Therefore, the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No.3

submits that Respondent contractors have not terminated or retrenched the services of workers at any point in respect

of the said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

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[PART II—SEC. 3(ii)]

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No. 3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages

to him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from 16th

August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012." Further,

MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of labour for

the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the request of R1

[भाग II—खण् ड 3(ii)]

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295

has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-. It is true that

after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the amount

equivalent to the full and final amount as a special case by making partial modifications to the agreement between it

and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and the date

of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and final

payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.79,263.38ps. along with the interest for the work under contract is

not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable

of being computed in terms of money, and if any question arises as to the amount of money due or as to

the amount at which such benefit should be computed, then the question may, subject to any rules that

may be wait under this act, be decided by such labour court as may be specified in this behalf by the

appropriate government within a period of not exceeding three month."

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner is

entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

both the petition. It is settled law that the rule of evidence Act do not apply strictly to the matter under I.D. Act.

Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in support of claim

of Petitioner. In this context Petitioner has filed documents in evidence which has been exhibited by witness

WW1.The perusal of these document reveals that the document Ex. W1 is the form of certificate issued by principal

employer i.e., Deputy General Manager Visakhapatnam Steel Plant, Visakhapatnam to the effect that it has engaged

M/s. Midfield industries Ltd Respondent No.2 for the work of strapping of mill product in WRM as contractor at

Steel Plant, Visakhapatnam vide certificate dated 14th August 2009. Further, Document Ex. W8 is the letter dated

15th September 2009, issued by AGM works contract of Respondent No.1 addressed to M/s. Midfield Industries

Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009- 10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on M's

Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

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[PART II—SEC. 3(ii)]

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging M/s.

Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the order

under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-

contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are

mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.79,263.38ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at Sl. No. 5 and

against his name the total number of working days 853 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl. No. 5 name of the Petitioner, Sri K.P.

Pentayya, unskilled workman is recorded and against his name amount due towards full and final amount is shown as

Rs.79,263.38ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General Manager

Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment directly which

is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th August 2009 to 15th August

2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent No.1 by Respondent No.2 for

release of amount equivalent to full and final benefit due to contract labour. Thus, on going oral and documentary

evidence produced by the Petitioner, it is established that Petitioner was engaged by the Respondent No.3 as contract

labour for the work of Respondent No.1 on behalf of Respondent No.2 during the period from 12.8.2009 to 12.8.2012

and he is entitled to receive Rs. 79,263.38ps. towards full and final payment as terminal benefit from Respondent

No.3 as per terms of contract Ex.W8, W9, and Ex. W12. Further, it is established that Petitioner was engaged for

work by Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to 15.8.2012 to work in industry of

R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, on going oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.79,263.38ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No.1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by 2nd

Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to the

workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and relevant

evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence. Moreover,

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297

the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder, therefore,

burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he failed to

discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated 10th

March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

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[PART II—SEC. 3(ii)]

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No.3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service

w.e.f 16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

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reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No. 2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 79,263.38ps. to the Petitioner within 30 days from the date of this

order Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of due

i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this the

11th day of December 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri K.P. Pentayya .

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

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[PART II—SEC. 3(ii)]

Ex.W3:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10: Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11: Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

Ex.W12: Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13: Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14: Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

301

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512814 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6:

Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

का.आ. 55.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

राष्ट्रीय इस्ट्पात जनगम जलजमट जविाखापत्तनम स्ट्टील प्लांट; जमडफील्ड इंडस्ट्रीज जलजमटेड; मेससा ऋजषता एसोजसएट्स के

प्रबंधतंत्र के संबद्ध जनयोजकों और श्री जी. श्रीजनवास राव के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण

एवं श्रम न्यायालय, हजदराबाद, पंचाट (ररफरेन्स न.- एमपी 25/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित

करती हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-18]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 55.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 25/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri G. Srinivasa Rao which was received along with soft copy of the award by the

Central Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-18]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Presiding Officer

302

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[PART II—SEC. 3(ii)]

Dated the 11th day of December 2025

M.P. No. 25/2017

Between:

G. Srinivasa Rao,

S/o. G. Satya Rao,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

…..Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 for the recovery of the amount Rs. 1,05,142.15ps with regard to legitimate dues of

full and final payments including retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that

1st Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the

2nd Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

303

3rd Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further,

it is averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated

12th September 2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent

accepted the work contract initially for a period of 24 months from 16th August 2009, and later it was extended for

another 12 months, vide letter dated 17th October 2012, confirming the work contract extension up to 15th August

2012, by (Annexure 8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as

contact labour upon receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent

vide agreement between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated

12th September 2009. According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield

Industries Limited," and 3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August

2009, and same is binding agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the

claim application for the recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has

contended that Annexure-20 confirms that the 3rd Respondent Rishita Associates, received photo gate pass under

(Annexure 11) in favour of the 86-contract labour including the Petitioner engaged by the 3rd Respondent between the

period of contract, i.e., 16th August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and

(Annexure 20) is the photo identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon

completion of the work contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and

terminal benefits upon the completion of the work contract, as contracted and settled under (annexure 11) between the

second and 3rd Respondents for executing the work contract of the first Respondent and Petitioner is entitled to

receive retrenchment allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The

Petitioner is unskilled and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay

for 604 working days, amounting to Rs. 1,05,142.15ps Since both third Respondent as well as the 2nd Respondent

failed to pay the terminal benefits upon the completion of the work contract on 15th August 2012, Petitioner workman

demanded the legal dues with interest from all Respondent collectively, but they did not pay. Further, it is submitted

that after a lapse of nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make

all the labour benefits payments directly to the workman such of that amount to be cleared against the work contract

dated 12th September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent. 1st

Respondent acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter

(annexure 6) dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and

1st Respondent acknowledged the same, but it was in vain. Further, it is averred that the 2nd Respondent, vide

(annexure 5) dated 12th January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the

Petitioner contract labour and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all

the contract labour including Petitioner made representation through their union before the Regional Labour

Commissioner Central Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July

2015. The concerned authority issued notices to all Respondents, but no relief was granted to the workman.

Therefore, Petitioner has moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues

from Respondent. Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract

labour vide (Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract

Labour (Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with

interest at the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against

2nd Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work.

1st Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September

2009, approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter

dated 15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-

contractor does not establish any contractual relationship between the sub-contractor Rishita Associates and

Respondent No.1 Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved

from the Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract

labour are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

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[PART II—SEC. 3(ii)]

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was

completed on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the

1st Respondent/RINL processed the bill exparte. Respondent contended that as directions issued by the Income Tax

Authorities to the Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as

dues to be paid to the Income Tax Department from the pending bills of the second Respondent/contractor M/s

Midfield Industries and accordingly, this Respondent deducted appropriate amount and paid to the Income Tax

Department. Further, Respondent contended that the terminal benefit claimed by the Petitioner does not form part of

wages and, as such the contractor as a direct employer is legally responsible to make all other payments if any to the

Petitioner. Therefore, the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No.3

submits that Respondent contractors have not terminated or retrenched the services of workers at any point in respect

of the said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

305

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No.3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages

to him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from 16th

August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012." Further,

MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of labour for

the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the request of R1

has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-. It is true that

after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the amount

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[PART II—SEC. 3(ii)]

equivalent to the full and final amount as a special case by making partial modifications to the agreement between it

and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and the date

of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and final

payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.1,05,142.15ps. along with the interest for the work under contract

is not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from

Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable

of being computed in terms of money, and if any question arises as to the amount of money due or as to

the amount at which such benefit should be computed, then the question may, subject to any rules that

may be wait under this act, be decided by such labour court as may be specified in this behalf by the

appropriate government within a period of not exceeding three month."

12.

Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner

is entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

both the petition. It is settled law that the rule of evidence Act do not apply strictly to the matter under I.D. Act.

Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in support of claim

of Petitioner. In this context Petitioner has filed documents in evidence which has been exhibited by witness

WW1.The perusal of these document reveals that the document Ex. W1 is the form of certificate issued by principal

employer i.e., Deputy General Manager Visakhapatnam Steel Plant, Visakhapatnam to the effect that it has engaged

M/s. Midfield industries Ltd Respondent No.2 for the work of strapping of mill product in WRM as contractor at

Steel Plant, Visakhapatnam vide certificate dated 14th August 2009. Further, Document Ex. W8 is the letter dated

15th September 2009, issued by AGM works contract of Respondent No.1 addressed to M/s. Midfield Industries

Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009- 10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on M's

Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

307

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging M/s.

Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the order

under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-

contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are

mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.1,05,142.15ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011.This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at Sl. No. 58 and

against his name the total number of working days 604 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl. No. 58 name of the Petitioner, Sri G.

Srinivasa Rao, unskilled workman is recorded and against his name amount due towards full and final amount is

shown as Rs.1,05,142.15ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the

General Manager Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit

payment directly which is to be cleared by Respondent No.2 in respect of contract labour for the period from

16th August 2009 to 15th August 2012. Similarly, documents Ex. W17 and W20 are the letters addressed to

Respondent No. 1 by Respondent No.2 for release of amount equivalent to full and final benefit due to contract

labour. Thus, on going oral and documentary evidence produced by the Petitioner, it is established that Petitioner

was engaged by the Respondent No.3 as contract labour for the work of Respondent No.1 on behalf of Respondent

No.2 during the period from 12.8.2009 to 12.8.2012 and he is entitled to receive Rs. 1,05,142.15ps. towards full and

final payment as terminal benefit from Respondent No.3 as per terms of contract Ex.W8, W9, and Ex. W12.

Further, it is established that Petitioner was engaged for work by Respondent No. 3 i.e., Rishitha Associates for the

period from 16.8.2009 to 15.8.2012 to work in industry of R-1 Principal Employer Rashtriya Ispat Nigam Ltd,

Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, on going oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.1,05,142.15ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No. 1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by 2nd

Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to the

workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and relevant

evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence. Moreover,

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[PART II—SEC. 3(ii)]

the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder, therefore,

burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he failed to

discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated

10th March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

309

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No. 3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No.3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service

w.e.f 16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

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[PART II—SEC. 3(ii)]

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No. 2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 1,05,142.15ps. to the Petitioner within 30 days from the date of

this order Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of

due i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this the

11th day of December 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri G. Srinivasa Rao .

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

311

Ex.W3:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10: Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11: Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

Ex.W12: Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13: Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14: Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

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[PART II—SEC. 3(ii)]

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512814 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6:

Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

का.आ. 56.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

राष्ट्रीय इस्ट्पात जनगम जलजमट जविाखापत्तनम स्ट्टील प्लांट; जमडफील्ड इंडस्ट्रीज जलजमटेड; मेससा ऋजषता एसोजसएट्स के

प्रबंधतंत्र के संबद्ध जनयोजकों और श्री वाई. अजचला नायडू के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण

एवं श्रम न्यायालय, हजदराबाद, पंचाट (ररफरेन्स न.- एमपी 26/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित

करती हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-19]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 56.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 26/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri Y. Achila Naidu which was received along with soft copy of the award by the

Central Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-19]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Presiding Officer

Dated the 11th day of December 2025

M.P. No. 26/2017

Between:

Y. Achila Naidu,

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

313

S/o. Y. Sanyasulu,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

…..Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 for the recovery of the amount Rs. 74,338.46ps with regard to legitimate dues of full

and final payments including retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that 1st

Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the 2nd

Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and 3rd

Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further, it is

averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated 12th September

2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent accepted the work

contract initially for a period of 24 months from 16th August 2009, and later it was extended for another 12 months,

vide letter dated 17th October 2012, confirming the work contract extension up to 15th August 2012, by (Annexure

8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as contact labour upon

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[PART II—SEC. 3(ii)]

receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent vide agreement

between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated 12th September 2009.

According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield Industries Limited," and

3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August 2009, and same is binding

agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the claim application for the

recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has contended that Annexure-20

confirms that the 3rd Respondent Rishita Associates, received photo gate pass under (Annexure 11) in favour of the

86-contract labour including the Petitioner engaged by the 3rd Respondent between the period of contract, i.e., 16th

August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and (Annexure 20) is the photo

identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon completion of the work

contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and terminal benefits upon

the completion of the work contract, as contracted and settled under (annexure 11) between the second and 3rd

Respondents for executing the work contract of the first Respondent and Petitioner is entitled to receive retrenchment

allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The Petitioner is unskilled

and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay for 800 working days,

amounting to Rs. 74,338.46ps Since both third Respondent as well as the 2nd Respondent failed to pay the terminal

benefits upon the completion of the work contract on 15th August 2012, Petitioner workman demanded the legal dues

with interest from all Respondent collectively, but they did not pay. Further, it is submitted that after a lapse of nearly

15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make all the labour benefits

payments directly to the workman such of that amount to be cleared against the work contract dated

12th September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent.

1st Respondent acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter

(annexure 6) dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and

1st Respondent acknowledged the same, but it was in vain. Further, it is averred that the 2nd Respondent, vide

(annexure 5) dated 12th January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the

Petitioner contract labour and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all

the contract labour including Petitioner made representation through their union before the Regional Labour

Commissioner Central Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July

2015. The concerned authority issued notices to all Respondents, but no relief was granted to the workman.

Therefore, Petitioner has moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues

from Respondent. Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract

labour vide (Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract

Labour (Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with

interest at the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against 2nd

Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work. 1st

Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September 2009,

approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter dated

15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-contractor does

not establish any contractual relationship between the sub-contractor Rishita Associates and Respondent No.1

Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved from the

Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract labour

are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

315

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was

completed on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the 1st

Respondent/RINL processed the bill exparte. Respondent contended that as directions issued by the Income Tax

Authorities to the Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as

dues to be paid to the Income Tax Department from the pending bills of the second Respondent/contractor

M/s Midfield Industries and accordingly, this Respondent deducted appropriate amount and paid to the Income Tax

Department. Further, Respondent contended that the terminal benefit claimed by the Petitioner does not form part of

wages and, as such the contractor as a direct employer is legally responsible to make all other payments if any to the

Petitioner. Therefore, the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No.3

submits that Respondent contractors have not terminated or retrenched the services of workers at any point in respect

of the said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

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[PART II—SEC. 3(ii)]

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No. 3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages

to him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from 16th

August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012." Further,

MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of labour for

the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the request of R1

has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-. It is true that

after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the amount

equivalent to the full and final amount as a special case by making partial modifications to the agreement between it

and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and the date

of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and final

payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

317

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.74,338.46ps. along with the interest for the work under contract is

not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable

of being computed in terms of money, and if any question arises as to the amount of money due or as to

the amount at which such benefit should be computed, then the question may, subject to any rules that

may be wait under this act, be decided by such labour court as may be specified in this behalf by the

appropriate government within a period of not exceeding three month."

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner is

entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

both the petition. It is settled law that the rule of evidence Act do not apply strictly to the matter under I.D. Act.

Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in support of claim

of Petitioner. In this context Petitioner has filed documents in evidence which has been exhibited by witness

WW1.The perusal of these document reveals that the document Ex. W1 is the form of certificate issued by principal

employer i.e., Deputy General Manager Visakhapatnam Steel Plant, Visakhapatnam to the effect that it has engaged

M/s. Midfield industries Ltd Respondent No.2 for the work of strapping of mill product in WRM as contractor at

Steel Plant, Visakhapatnam vide certificate dated 14th August 2009. Further, Document Ex. W8 is the letter dated

15th September 2009, issued by AGM works contract of Respondent No.1 addressed to M/s. Midfield Industries

Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009-10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on M's

Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging M/s.

Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the order

under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

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[PART II—SEC. 3(ii)]

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-

contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are

mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.74,338.46ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at Sl. No. 30 and

against his name the total number of working days 800 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl. No. 30 name of the Petitioner, Sri Y. Achila

Naidu, unskilled workman is recorded and against his name amount due towards full and final amount is shown as

Rs.74,338.46ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General Manager

Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment directly which

is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th August 2009 to 15th August

2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent No.1 by Respondent No. 2

for release of amount equivalent to full and final benefit due to contract labour. Thus, on going oral and documentary

evidence produced by the Petitioner, it is established that Petitioner was engaged by the Respondent No.3 as contract

labour for the work of Respondent No.1 on behalf of Respondent No.2 during the period from 12.8.2009 to 12.8.2012

and he is entitled to receive Rs. 74,338.46ps. towards full and final payment as terminal benefit from Respondent

No.3 as per terms of contract Ex.W8, W9, and Ex. W12. Further, it is established that Petitioner was engaged for

work by Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to 15.8.2012 to work in industry of

R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, on going oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.74,338.46ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No.1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by 2nd

Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to the

workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and relevant

evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence. Moreover,

the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder, therefore,

burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he failed to

discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

319

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated 10th

March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

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[PART II—SEC. 3(ii)]

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No.3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service w.e.f

16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

321

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No.2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 74,338.46ps. to the Petitioner within 30 days from the date of this

order Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of due

i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to

Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this

the 11th day of December 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri Y. Achila Naidu.

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

Ex.W3:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

322

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Ex.W6:

Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10: Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11: Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

Ex.W12: Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13: Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14: Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

323

Department Enclosing Demand Draft No. 512814 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6:

Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

का.आ. 57.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

राष्ट्रीय इस्ट्पात जनगम जलजमट जविाखापत्तनम स्ट्टील प्लांट; जमडफील्ड इंडस्ट्रीज जलजमटेड; मेससा ऋजषता एसोजसएट्स के

प्रबंधतंत्र के संबद्ध जनयोजकों और श्री जी. दकरण के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण एवं श्रम

न्यायालय, हजदराबाद, पंचाट (ररफरेन्स न.- एमपी 20/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित करती

हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-13]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 57.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 20/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri G. Kiran which was received along with soft copy of the award by the Central

Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-13]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Presiding Officer

Dated the 10th day of December 2025

M.P. No. 20/2017

Between:

K.V. Appa Rao,

S/o. K. Suryanarayana,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

…..Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

324

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 for the recovery of the amount Rs. 83,816.62ps with regard to legitimate dues of full

and final payments including retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that

1st Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the

2nd Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and

3rd Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further,

it is averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated

12th September 2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent

accepted the work contract initially for a period of 24 months from 16th August 2009, and later it was extended for

another 12 months, vide letter dated 17th October 2012, confirming the work contract extension up to 15th August

2012, by (Annexure 8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as

contact labour upon receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent

vide agreement between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated 12th

September 2009. According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield

Industries Limited," and 3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August

2009, and same is binding agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the

claim application for the recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has

contended that Annexure-20 confirms that the 3rd Respondent Rishita Associates, received photo gate pass under

(Annexure 11) in favour of the 86-contract labour including the Petitioner engaged by the 3rd Respondent between the

period of contract, i.e., 16th August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and

(Annexure 20) is the photo identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon

completion of the work contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and

terminal benefits upon the completion of the work contract, as contracted and settled under (annexure 11) between the

second and 3rd Respondents for executing the work contract of the first Respondent and Petitioner is entitled to

receive retrenchment allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The

Petitioner is unskilled and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay

for 902 working days, amounting to Rs. 83,816.62ps Since both third Respondent as well as the 2nd Respondent

failed to pay the terminal benefits upon the completion of the work contract on 15th August 2012, Petitioner workman

demanded the legal dues with interest from all Respondent collectively, but they did not pay. Further, it is submitted

that after a lapse of nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make

all the labour benefits payments directly to the workman such of that amount to be cleared against the work contract

dated 12th September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent. 1st

Respondent acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter

(annexure 6) dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and

[भाग II—खण् ड 3(ii)]

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325

1st Respondent acknowledged the same, but it was in vain. Further, it is averred that the 2nd Respondent, vide

(annexure 5) dated 12th January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the

Petitioner contract labour and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all

the contract labour including Petitioner made representation through their union before the Regional Labour

Commissioner Central Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July

2015. The concerned authority issued notices to all Respondents, but no relief was granted to the workman.

Therefore, Petitioner has moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues

from Respondent. Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract

labour vide (Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract

Labour (Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with

interest at the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against 2nd

Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work.

1st Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September

2009, approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter

dated 15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-

contractor does not establish any contractual relationship between the sub-contractor Rishita Associates and

Respondent No. 1 Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved

from the Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract

labour are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was

completed on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the 1st

Respondent/RINL processed the bill exparte. Respondent contended that as directions issued by the Income Tax

Authorities to the Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as

dues to be paid to the Income Tax Department from the pending bills of the second Respondent/contractor M/s

Midfield Industries and accordingly, this Respondent deducted appropriate amount and paid to the Income Tax

Department. Further, Respondent contended that the terminal benefit claimed by the Petitioner does not form part of

wages and, as such the contractor as a direct employer is legally responsible to make all other payments if any to the

Petitioner. Therefore, the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

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[PART II—SEC. 3(ii)]

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No. 3 submits

that Respondent contractors have not terminated or retrenched the services of workers at any point in respect of the

said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

[भाग II—खण् ड 3(ii)]

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327

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No.3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages

to him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from

16th August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012."

Further, MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of

labour for the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the

request of R1 has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-.

It is true that after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the

amount equivalent to the full and final amount as a special case by making partial modifications to the agreement

between it and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and

the date of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and

final payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.83,816.62ps. along with the interest for the work under contract is

not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable

of being computed in terms of money, and if any question arises as to the amount of money due or as to

the amount at which such benefit should be computed, then the question may, subject to any rules that

may be wait under this act, be decided by such labour court as may be specified in this behalf by the

appropriate government within a period of not exceeding three month."

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner is

entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

both the petition. It is settled law that the rule of evidence Act do not apply strictly to the matter under I.D. Act.

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[PART II—SEC. 3(ii)]

Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in support of claim

of Petitioner. In this context Petitioner has filed documents in evidence which has been exhibited by witness

WW1.The perusal of these document reveals that the document Ex. W1 is the form of certificate issued by principal

employer i.e., Deputy General Manager Visakhapatnam Steel Plant, Visakhapatnam to the effect that it has engaged

M/s. Midfield industries Ltd Respondent No.2 for the work of strapping of mill product in WRM as contractor at

Steel Plant, Visakhapatnam vide certificate dated 14th August 2009. Further, Document Ex. W8 is the letter dated

15th September 2009, issued by AGM works contract of Respondent No.1 addressed to M/s. Midfield Industries

Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009-10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on M's

Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging M/s.

Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the order

under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-

contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are

mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.83,816.62ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at Sl. No. 19 and

against his name the total number of working days 902 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl. No. 19 name of the Petitioner, Sri K.V. Appa

Rao, unskilled workman is recorded and against his name amount due towards full and final amount is shown as

Rs.83,816.62ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General Manager

Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment directly which

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

329

is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th August 2009 to 15th August

2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent No.1 by Respondent No.2 for

release of amount equivalent to full and final benefit due to contract labour. Thus, on going oral and documentary

evidence produced by the Petitioner, it is established that Petitioner was engaged by the Respondent No.3 as contract

labour for the work of Respondent No.1 on behalf of Respondent No.2 during the period from 12.8.2009 to 12.8.2012

and he is entitled to receive Rs. 83,816.62ps. towards full and final payment as terminal benefit from Respondent

No.3 as per terms of contract Ex.W8, W9, and Ex. W12. Further, it is established that Petitioner was engaged for

work by Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to 15.8.2012 to work in industry of

R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, on going oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.83,816.62ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No.1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by

2nd Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to

the workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and

relevant evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence.

Moreover, the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder,

therefore, burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he

failed to discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated 10th

March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

330

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application

u/s 13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

331

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No. 3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service

w.e.f 16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No. 2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No.2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

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[PART II—SEC. 3(ii)]

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 83,816.62ps. to the Petitioner within 30 days from the date of this

order Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of due

i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this the

10th day of December 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri K.V. Appa Rao .

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

Ex.W3:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10: Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11: Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

Ex.W12: Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

333

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13: Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14: Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512814 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6:

Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

का.आ. 58.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

राष्ट्रीय इस्ट्पात जनगम जलजमट जविाखापत्तनम स्ट्टील प्लांट; जमडफील्ड इंडस्ट्रीज जलजमटेड; मेससा ऋजषता एसोजसएट्स के

प्रबंधतंत्र के संबद्ध जनयोजकों और श्री के. अप्पा राव के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण एवं

334

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

श्रम न्यायालय, हजदराबाद, पंचाट (ररफरेन्स न.- एमपी 28/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित

करती हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-21]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 58.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 28/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri K. Appa Rao which was received along with soft copy of the award by the Central

Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-21]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Presiding Officer

Dated the 12th day of December 2025

M.P. No. 28/2017

Between:

K. Appa Rao,

S/o. K. Guruvulu,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

…..Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

335

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 for the recovery of the amount Rs. 83,909.54ps with regard to legitimate dues of full

and final payments including retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that

1st Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the

2nd Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and

3rd Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further,

it is averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated

12th September 2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent

accepted the work contract initially for a period of 24 months from 16th August 2009, and later it was extended for

another 12 months, vide letter dated 17th October 2012, confirming the work contract extension up to 15th August

2012, by (Annexure 8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as

contact labour upon receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent

vide agreement between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated

12th September 2009. According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield

Industries Limited," and 3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August

2009, and same is binding agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the

claim application for the recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has

contended that Annexure-20 confirms that the 3rd Respondent Rishita Associates, received photo gate pass under

(Annexure 11) in favour of the 86-contract labour including the Petitioner engaged by the 3rd Respondent between the

period of contract, i.e., 16th August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and

(Annexure 20) is the photo identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon

completion of the work contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and

terminal benefits upon the completion of the work contract, as contracted and settled under (annexure 11) between the

second and 3rd Respondents for executing the work contract of the first Respondent and Petitioner is entitled to

receive retrenchment allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The

Petitioner is unskilled and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay

for 903 working days, amounting to Rs. 83,909.54ps Since both third Respondent as well as the 2nd Respondent

failed to pay the terminal benefits upon the completion of the work contract on 15th August 2012, Petitioner workman

demanded the legal dues with interest from all Respondent collectively, but they did not pay. Further, it is submitted

that after a lapse of nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make

all the labour benefits payments directly to the workman such of that amount to be cleared against the work contract

dated 12th September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent.

1st Respondent acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter

(annexure 6) dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and

1st Respondent acknowledged the same, but it was in vain. Further, it is averred that the 2nd Respondent, vide

(annexure 5) dated 12th January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the

Petitioner contract labour and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all

the contract labour including Petitioner made representation through their union before the Regional Labour

Commissioner Central Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July

2015. The concerned authority issued notices to all Respondents, but no relief was granted to the workman.

Therefore, Petitioner has moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues

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[PART II—SEC. 3(ii)]

from Respondent. Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract

labour vide (Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract

Labour (Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with

interest at the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against 2nd

Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work.

1st Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September

2009, approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter

dated 15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-

contractor does not establish any contractual relationship between the sub-contractor Rishita Associates and

Respondent No.1 Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved

from the Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract

labour are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was

completed on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the 1st

Respondent/RINL processed the bill exparte. Respondent contended that as directions issued by the Income Tax

Authorities to the Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as

dues to be paid to the Income Tax Department from the pending bills of the second Respondent/contractor

M/s Midfield Industries and accordingly, this Respondent deducted appropriate amount and paid to the Income Tax

Department. Further, Respondent contended that the terminal benefit claimed by the Petitioner does not form part of

wages and, as such the contractor as a direct employer is legally responsible to make all other payments if any to the

Petitioner. Therefore, the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

337

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No.3

submits that Respondent contractors have not terminated or retrenched the services of workers at any point in respect

of the said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

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[PART II—SEC. 3(ii)]

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No.3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages

to him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from 16th

August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012." Further,

MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of labour for

the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the request of R1

has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-. It is true that

after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the amount

equivalent to the full and final amount as a special case by making partial modifications to the agreement between it

and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and the date

of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and final

payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.83,909.54ps. along with the interest for the work under contract is

not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable

of being computed in terms of money, and if any question arises as to the amount of money due or as to the

amount at which such benefit should be computed, then the question may, subject to any rules that may be

wait under this act, be decided by such labour court as may be specified in this behalf by the appropriate

government within a period of not exceeding three month."

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner is

entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

both the petition. It is settled law that the rule of evidence Act do not apply strictly to the matter under I.D. Act.

Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in support of claim

of Petitioner. In this context Petitioner has filed documents in evidenc which has been exhibited by witness

WW1.The perusal of these document reveals that the document Ex. W1 is the form of certificate issued by principal

employer i.e., Deputy General Manager Visakhapatnam Steel Plant, Visakhapatnam to the effect that it has engaged

M/s. Midfield industries Ltd Respondent No.2 for the work of strapping of mill product in WRM as contractor at

Steel Plant, Visakhapatnam vide certificate dated 14th August 2009. Further, Document Ex. W8 is the letter dated

15th September 2009, issued by AGM works contract of Respondent No.1 addressed to M/s. Midfield Industries

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

339

Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009-10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on M's

Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging M/s.

Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the order

under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No. 1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-

contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are

mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.83,909.54ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at Sl. No. 35 and

against his name the total number of working days 903 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl. No. 35 name of the Petitioner, Sri K. Appa

Rao, unskilled workman is recorded and against his name amount due towards full and final amount is shown as

Rs.83,909.54ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General Manager

Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment directly which

is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th August 2009 to 15th August

2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent No.1 by Respondent No. 2

for release of amount equivalent to full and final benefit due to contract labour. Thus, on going oral and documentary

evidence produced by the Petitioner, it is established that Petitioner was engaged by the Respondent No.3 as contract

labour for the work of Respondent No.1 on behalf of Respondent No.2 during the period from 12.8.2009 to 12.8.2012

and he is entitled to receive Rs. 83,909.54ps. towards full and final payment as terminal benefit from Respondent

No.3 as per terms of contract Ex.W8, W9, and Ex. W12. Further, it is established that Petitioner was engaged for

work by Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to 15.8.2012 to work in industry of

R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

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[PART II—SEC. 3(ii)]

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, on going oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.83,909.54ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No.1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by 2nd

Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to the

workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and relevant

evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence. Moreover,

the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder, therefore,

burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he failed to

discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated 10th

March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

341

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No.3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

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[PART II—SEC. 3(ii)]

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service w.e.f

16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No. 3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No.2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 83,909.54ps. to the Petitioner within 30 days from the date of this

order Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of due

i.e., 16-08-2012 up to the date of payment.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

343

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this the

10th day of December 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri K. Appa Rao.

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

Ex.W3:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10: Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11: Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

Ex.W12: Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13: Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14: Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15: Photostat copy of Licence issued to 3rd Respondent by Licencing

344

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16:

Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512814 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6:

Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

का.आ. 59.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

राष्ट्रीय इस्ट्पात जनगम जलजमट जविाखापत्तनम स्ट्टील प्लांट; जमडफील्ड इंडस्ट्रीज जलजमटेड; मेससा ऋजषता एसोजसएट्स के

प्रबंधतंत्र के संबद्ध जनयोजकों और श्री एस. देमुडु के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण एवं श्रम

न्यायालय, हजदराबाद, पंचाट (ररफरेन्स न.- एमपी 31/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित करती

हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-22]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 59.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 31/2017) of the Central Government Industrial

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

345

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri S. Demudu which was received along with soft copy of the award by the Central

Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-22]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Presiding Officer

Dated the 15th day of December 2025

M.P. No. 31/2017

Between:

S. Demudu,

S/o. S. Salya,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

…..Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

346

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 for the recovery of the amount Rs. 83,630.77ps with regard to legitimate dues of full

and final payments including retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that

1st Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the

2nd Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and

3rd Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further,

it is averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated

12th September 2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent

accepted the work contract initially for a period of 24 months from 16th August 2009, and later it was extended for

another 12 months, vide letter dated 17th October 2012, confirming the work contract extension up to 15th August

2012, by (Annexure 8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as

contact labour upon receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent

vide agreement between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated 12th

September 2009. According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield

Industries Limited," and 3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August

2009, and same is binding agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the

claim application for the recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has

contended that Annexure-20 confirms that the 3rd Respondent Rishita Associates, received photo gate pass under

(Annexure 11) in favour of the 86-contract labour including the Petitioner engaged by the 3rd Respondent between the

period of contract, i.e., 16th August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and

(Annexure 20) is the photo identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon

completion of the work contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and

terminal benefits upon the completion of the work contract, as contracted and settled under (annexure 11) between the

second and 3rd Respondents for executing the work contract of the first Respondent and Petitioner is entitled to

receive retrenchment allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The

Petitioner is unskilled and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay

for 900 working days, amounting to Rs. 83,630.77ps Since both third Respondent as well as the 2nd Respondent

failed to pay the terminal benefits upon the completion of the work contract on 15th August 2012, Petitioner workman

demanded the legal dues with interest from all Respondent collectively, but they did not pay. Further, it is submitted

that after a lapse of nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make

all the labour benefits payments directly to the workman such of that amount to be cleared against the work contract

dated 12th September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent. 1st

Respondent acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter

(annexure 6) dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and 1st

Respondent acknowledged the same, but it was in vain. Further, it is averred that the 2nd Respondent, vide (annexure

5) dated 12th January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the Petitioner

contract labour and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all the

contract labour including Petitioner made representation through their union before the Regional Labour

Commissioner Central Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July

2015. The concerned authority issued notices to all Respondents, but no relief was granted to the workman.

Therefore, Petitioner has moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues

from Respondent. Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract

labour vide (Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract

Labour (Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with

interest at the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against

2nd Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

347

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work.

1st Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September

2009, approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter

dated 15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-

contractor does not establish any contractual relationship between the sub-contractor Rishita Associates and

Respondent No.1 Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved

from the Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract

labour are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was

completed on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the

1st Respondent/RINL processed the bill exparte. Respondent contended that as directions issued by the Income Tax

Authorities to the Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as

dues to be paid to the Income Tax Department from the pending bills of the second Respondent/contractor M/s

Midfield Industries and accordingly, this Respondent deducted appropriate amount and paid to the Income Tax

Department. Further, Respondent contended that the terminal benefit claimed by the Petitioner does not form part of

wages and, as such the contractor as a direct employer is legally responsible to make all other payments if any to the

Petitioner. Therefore, the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

348

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No.3

submits that Respondent contractors have not terminated or retrenched the services of workers at any point in respect

of the said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No. 3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

[भाग II—खण् ड 3(ii)]

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349

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages

to him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from

16th August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012."

Further, MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of

labour for the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the

request of R1 has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-.

It is true that after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the

amount equivalent to the full and final amount as a special case by making partial modifications to the agreement

between it and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and

the date of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and

final payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.83,630.77ps. along with the interest for the work under contract is

not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable

of being computed in terms of money, and if any question arises as to the amount of money due or as to

the amount at which such benefit should be computed, then the question may, subject to any rules that

may be wait under this act, be decided by such labour court as may be specified in this behalf by the

appropriate government within a period of not exceeding three month."

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner is

entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

both the petition. It is settled law that the rule of evidence Act do not apply strictly to the matter under I.D. Act.

Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in support of claim

of Petitioner. In this context Petitioner has filed documents in evidence which has been exhibited by witness

WW1.The perusal of these document reveals that the document Ex. W1 is the form of certificate issued by principal

employer i.e., Deputy General Manager Visakhapatnam Steel Plant, Visakhapatnam to the effect that it has engaged

M/s. Midfield industries Ltd Respondent No.2 for the work of strapping of mill product in WRM as contractor at

Steel Plant, Visakhapatnam vide certificate dated 14th August 2009. Further, Document Ex. W8 is the letter dated

15th September 2009, issued by AGM works contract of Respondent No.1 addressed to M/s. Midfield Industries

Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009-10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

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[PART II—SEC. 3(ii)]

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on

M's Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging

M/s. Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the

order under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-

contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are

mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.83,630.77ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at Sl. No. 68 and

against his name the total number of working days 900 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl. No. 68 name of the Petitioner, Sri S.

Demudu, unskilled workman is recorded and against his name amount due towards full and final amount is shown as

Rs.83,630.77ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General Manager

Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment directly which

is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th August 2009 to 15th August

2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent No.1 by Respondent No.2 for

release of amount equivalent to full and final benefit due to contract labour. Thus, ongoing oral and documentary

evidence produced by the Petitioner, it is established that Petitioner was engaged by the Respondent No.3 as contract

labour for the work of Respondent No.1 on behalf of Respondent No.2 during the period from 12.8.2009 to 12.8.2012

and he is entitled to receive Rs. 83,630.77ps. towards full and final payment as terminal benefit from Respondent

No.3 as per terms of contract Ex. W8, Ex.W9, and Ex. W12. Further, it is established that Petitioner was engaged for

work by Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to 15.8.2012 to work in industry of

R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, on going oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.83,630.77ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

351

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No. 1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by

2nd Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to

the workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and

relevant evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence.

Moreover, the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder,

therefore, burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he

failed to discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated

10th March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

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[PART II—SEC. 3(ii)]

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No.3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

[भाग II—खण् ड 3(ii)]

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353

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service w.e.f

16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No.2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 83,630.77ps. to the Petitioner within 30 days from the date of this

order Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of due

i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to

Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this

the 15th day of December 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

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[PART II—SEC. 3(ii)]

Petitioner

Respondent

WW1: Sri S. Demudu.

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

Ex.W3:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10: Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11: Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

Ex.W12: Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13: Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14: Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

355

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512814 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6:

Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

का.आ. 60.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

राष्ट्रीय इस्ट्पात जनगम जलजमट जविाखापत्तनम स्ट्टील प्लांट; जमडफील्ड इंडस्ट्रीज जलजमटेड; मेससा ऋजषता एसोजसएट्स के

प्रबंधतंत्र के संबद्ध जनयोजकों और श्री एम. रमना के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण एवं श्रम

न्यायालय, हजदराबाद, पंचाट (ररफरेन्स न.- एमपी 32/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित करती

हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-23]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 60.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 32/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri M. Ramana which was received along with soft copy of the award by the Central

Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-23]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

356

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Presiding Officer

Dated the 15th day of December 2025

M.P. No. 32/2017

Between:

M. Ramana,

S/o. M. Appa Rao,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

…..Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 for the recovery of the amount Rs. 82,887.38ps with regard to legitimate dues of full

and final payments including retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that 1st

Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the 2nd

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

357

Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and 3rd

Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further, it is

averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated 12th September

2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent accepted the work

contract initially for a period of 24 months from 16th August 2009, and later it was extended for another 12 months,

vide letter dated 17th October 2012, confirming the work contract extension up to 15th August 2012, by (Annexure

8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as contact labour upon

receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent vide agreement

between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated 12th September 2009.

According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield Industries Limited," and

3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August 2009, and same is binding

agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the claim application for the

recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has contended that Annexure-20

confirms that the 3rd Respondent Rishita Associates, received photo gate pass under (Annexure 11) in favour of the

86-contract labour including the Petitioner engaged by the 3rd Respondent between the period of contract, i.e., 16th

August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and (Annexure 20) is the photo

identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon completion of the work

contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and terminal benefits upon

the completion of the work contract, as contracted and settled under (annexure 11) between the second and 3rd

Respondents for executing the work contract of the first Respondent and Petitioner is entitled to receive retrenchment

allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The Petitioner is unskilled

and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay for 892 working days,

amounting to Rs. 82,887.38ps Since both third Respondent as well as the 2nd Respondent failed to pay the terminal

benefits upon the completion of the work contract on 15th August 2012, Petitioner workman demanded the legal dues

with interest from all Respondent collectively, but they did not pay. Further, it is submitted that after a lapse of

nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make all the labour

benefits payments directly to the workman such of that amount to be cleared against the work contract dated 12th

September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent. 1st Respondent

acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter (annexure 6)

dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and 1st Respondent

acknowledged the same, but it was in vain. Further, it is averred that the 2nd Respondent, vide (annexure 5) dated

12th January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the Petitioner contract

labour and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all the contract

labour including Petitioner made representation through their union before the Regional Labour Commissioner

Central Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July 2015. The

concerned authority issued notices to all Respondents, but no relief was granted to the workman. Therefore, Petitioner

has moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues from Respondent.

Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract labour vide

(Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract Labour

(Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with interest at

the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against 2nd

Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work.

1st Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September

2009, approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter

dated 15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging

sub-contractor does not establish any contractual relationship between the sub-contractor Rishita Associates and

Respondent No.1 Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved

from the Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract

labour are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

358

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was

completed on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the 1st

Respondent/RINL processed the bill exparte. Respondent contended that as directions issued by the Income Tax

Authorities to the Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as

dues to be paid to the Income Tax Department from the pending bills of the second Respondent/contractor M/s

Midfield Industries and accordingly, this Respondent deducted appropriate amount and paid to the Income Tax

Department. Further, Respondent contended that the terminal benefit claimed by the Petitioner does not form part of

wages and, as such the contractor as a direct employer is legally responsible to make all other payments if any to the

Petitioner. Therefore, the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No.3

submits that Respondent contractors have not terminated or retrenched the services of workers at any point in respect

of the said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

359

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No. 3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages

to him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from 16th

August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012." Further,

MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of labour for

the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the request of R1

has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-. It is true that

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[PART II—SEC. 3(ii)]

after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the amount

equivalent to the full and final amount as a special case by making partial modifications to the agreement between it

and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and the date

of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and final

payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.82,887.38ps. along with the interest for the work under contract is

not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable of

being computed in terms of money, and if any question arises as to the amount of money due or as to the

amount at which such benefit should be computed, then the question may, subject to any rules that may be

wait under this act, be decided by such labour court as may be specified in this behalf by the appropriate

government within a period of not exceeding three month."

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner is

entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

both the petition. It is settled law that the rule of evidence Act do not apply strictly to the matter under I.D. Act.

Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in support of claim

of Petitioner. In this context Petitioner has filed documents in evidence which has been exhibited by witness

WW1.The perusal of these document reveals that the document Ex. W1 is the form of certificate issued by principal

employer i.e., Deputy General Manager Visakhapatnam Steel Plant, Visakhapatnam to the effect that it has engaged

M/s. Midfield industries Ltd Respondent No.2 for the work of strapping of mill product in WRM as contractor at

Steel Plant, Visakhapatnam vide certificate dated 14th August 2009. Further, Document Ex. W8 is the letter dated

15th September 2009, issued by AGM works contract of Respondent No.1 addressed to M/s. Midfield Industries

Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009-10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on

M's Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

361

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging

M/s. Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the

order under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-

contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are

mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.82,887.38ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at Sl. No. 77 and

against his name the total number of working days 892 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl. No. 77 name of the Petitioner,

Sri M. Ramana, unskilled workman is recorded and against his name amount due towards full and final amount is

shown as Rs.82,887.38ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General

Manager Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment

directly which is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th August

2009 to 15th August 2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent No.1 by

Respondent No.2 for release of amount equivalent to full and final benefit due to contract labour. Thus, ongoing oral

and documentary evidence produced by the Petitioner, it is established that Petitioner was engaged by the Respondent

No.3 as contract labour for the work of Respondent No.1 on behalf of Respondent No.2 during the period from

12.8.2009 to 12.8.2012 and he is entitled to receive Rs. 82,887.38ps. towards full and final payment as terminal

benefit from Respondent No.3 as per terms of contract Ex. W8, Ex.W9, and Ex. W12. Further, it is established that

Petitioner was engaged for work by Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to

15.8.2012 to work in industry of R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, on going oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.82,887.38ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No. 1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by

2nd Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to

the workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and

relevant evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence.

Moreover, the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder,

362

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

therefore, burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he

failed to discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated 10th

March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

363

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No.3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service

w.e.f 16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

364

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No.2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 82,887.38ps. to the Petitioner within 30 days from the date of this

order Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of due

i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this the

15th day of December 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri M. Ramana.

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

365

Ex.W3:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10: Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11: Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

Ex.W12: Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13: Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14: Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

366

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512814 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6: Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

का.आ. 61.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

य ; ज ; के

प्रबंधतंत्र के संबद्ध जनयोजकों और . के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण

एवं श्रम न्यायालय, , पंचाट (ररफरेन्स न.- 33/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित

करती हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-24]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 61.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 33/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri M. Tripathi Rao which was received along with soft copy of the award by the

Central Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-24]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: - Shri Irfan Qamar,

Presiding Officer

Dated the 15th day of December 2025

M.P. No. 33/2017

Between:

M. Tripathi Rao,

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

367

S/o. M. Suryanrayana,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

…..Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 for the recovery of the amount Rs. 83,166.15ps with regard to legitimate dues of full

and final payments including retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that

1st Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the

2nd Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and

3rd Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further,

it is averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated

12th September 2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent

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accepted the work contract initially for a period of 24 months from 16th August 2009, and later it was extended for

another 12 months, vide letter dated 17th October 2012, confirming the work contract extension up to 15th August

2012, by (Annexure 8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as

contact labour upon receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent

vide agreement between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated

12th September 2009. According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield

Industries Limited," and 3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August

2009, and same is binding agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the

claim application for the recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has

contended that Annexure-20 confirms that the 3rd Respondent Rishita Associates, received photo gate pass under

(Annexure 11) in favour of the 86-contract labour including the Petitioner engaged by the 3rd Respondent between the

period of contract, i.e., 16th August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and

(Annexure 20) is the photo identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon

completion of the work contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and

terminal benefits upon the completion of the work contract, as contracted and settled under (annexure 11) between the

second and 3rd Respondents for executing the work contract of the first Respondent and Petitioner is entitled to

receive retrenchment allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The

Petitioner is unskilled and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay

for 895 working days, amounting to Rs. 83,166.15ps Since both third Respondent as well as the 2nd Respondent

failed to pay the terminal benefits upon the completion of the work contract on 15th August 2012, Petitioner workman

demanded the legal dues with interest from all Respondent collectively, but they did not pay. Further, it is submitted

that after a lapse of nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make

all the labour benefits payments directly to the workman such of that amount to be cleared against the work contract

dated 12th September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent. 1st

Respondent acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter

(annexure 6) dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and 1st

Respondent acknowledged the same, but it was in vain. Further, it is averred that the 2nd Respondent, vide (annexure

5) dated 12th January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the Petitioner

contract labour and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all the

contract labour including Petitioner made representation through their union before the Regional Labour

Commissioner Central Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated

20th July 2015. The concerned authority issued notices to all Respondents, but no relief was granted to the workman.

Therefore, Petitioner has moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues

from Respondent. Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract

labour vide (Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract

Labour (Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with

interest at the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against 2nd

Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work.

1st Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September

2009, approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter

dated 15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-

contractor does not establish any contractual relationship between the sub-contractor Rishita Associates and

Respondent No.1 Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved

from the Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract

labour are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

369

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was

completed on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the 1st

Respondent/RINL processed the bill exparte. Respondent contended that as directions issued by the Income Tax

Authorities to the Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as

dues to be paid to the Income Tax Department from the pending bills of the second Respondent/contractor

M/s Midfield Industries and accordingly, this Respondent deducted appropriate amount and paid to the Income Tax

Department. Further, Respondent contended that the terminal benefit claimed by the Petitioner does not form part of

wages and, as such the contractor as a direct employer is legally responsible to make all other payments if any to the

Petitioner. Therefore, the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No. 3 submits

that Respondent contractors have not terminated or retrenched the services of workers at any point in respect of the

said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

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[PART II—SEC. 3(ii)]

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No. 3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No. 2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages to

him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from

16th August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012."

Further, MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of

labour for the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the

request of R1 has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-.

It is true that after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the

amount equivalent to the full and final amount as a special case by making partial modifications to the agreement

between it and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and

the date of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and

final payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

371

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.83,166.15ps. along with the interest for the work under contract is

not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable

of being computed in terms of money, and if any question arises as to the amount of money due or as to the

amount at which such benefit should be computed, then the question may, subject to any rules that may be

wait under this act, be decided by such labour court as may be specified in this behalf by the appropriate

government within a period of not exceeding three month."

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner is

entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

both the petition. It is settled law that the rule of evidence Act do not apply strictly to the matter under I.D. Act.

Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in support of claim

of Petitioner. In this context Petitioner has filed documents in evidence

which has been exhibited by witness WW1.The perusal of these document reveals that the document Ex. W1 is the

form of certificate issued by principal employer i.e., Deputy General Manager Visakhapatnam Steel Plant,

Visakhapatnam to the effect that it has engaged M/s. Midfield industries Ltd Respondent No.2 for the work of

strapping of mill product in WRM as contractor at Steel Plant, Visakhapatnam vide certificate dated 14th August

2009. Further, Document Ex. W8 is the letter dated 15th September 2009, issued by AGM works contract of

Respondent No.1 addressed to M/s. Midfield Industries Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009-10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on M's

Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging M/s.

Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the order

under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

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[PART II—SEC. 3(ii)]

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-

contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are

mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.83,166.15ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at Sl. No. 36 and

against his name the total number of working days 895 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl. No. 36 name of the Petitioner, Sri M.

Tripathi Rao, unskilled workman is recorded and against his name amount due towards full and final amount is shown

as Rs.83,166.15ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General

Manager Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment

directly which is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th August

2009 to 15th August 2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent No.1 by

Respondent No.2 for release of amount equivalent to full and final benefit due to contract labour. Thus, ongoing oral

and documentary evidence produced by the Petitioner, it is established that Petitioner was engaged by the Respondent

No.3 as contract labour for the work of Respondent No.1 on behalf of Respondent No.2 during the period from

12.8.2009 to 12.8.2012 and he is entitled to receive Rs. 83,166.15ps. towards full and final payment as terminal

benefit from Respondent No.3 as per terms of contract Ex. W8, Ex.W9, and Ex. W12. Further, it is established that

Petitioner was engaged for work by Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to

15.8.2012 to work in industry of R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, on going oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.83,166.15ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No. 1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by

2nd Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to

the workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and

relevant evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence.

Moreover, the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder,

therefore, burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he

failed to discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

373

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No. 2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated 10th

March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

374

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[PART II—SEC. 3(ii)]

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No.3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service

w.e.f 16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

375

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No.2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 83,166.15ps. to the Petitioner within 30 days from the date of this

order Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of due

i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this the

15th day of December 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri M. Tripathi Rao.

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

376

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Ex.W3:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10:

Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11: Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

Ex.W12:

Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13: Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14: Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

377

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512814 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6:

Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

का.आ. 62.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

य ; ज ; के

प्रबंधतंत्र के संबद्ध जनयोजकों और . अ के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण

एवं श्रम न्यायालय, , पंचाट (ररफरेन्स न.- 34/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित

करती हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-25]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 62.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 34/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri Y. Appala Reddy which was received along with soft copy of the award by the

Central Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-25]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Presiding Officer

Dated the 16th day of December 2025

M.P. No. 34/2017

Between:

378

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Y. Appala Reddy,

S/o. Y. Pydi Reddy,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

…..Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 for the recovery of the amount Rs. 83,909.54ps with regard to legitimate dues of full

and final payments including retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that 1st

Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the 2nd

Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and

3rd Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further,

it is averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated 12th

September 2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent

accepted the work contract initially for a period of 24 months from 16th August 2009, and later it was extended for

another 12 months, vide letter dated 17th October 2012, confirming the work contract extension up to 15th August

2012, by (Annexure 8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as

contact labour upon receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent

vide agreement between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated 12th

September 2009. According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield

Industries Limited," and 3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August

2009, and same is binding agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the

claim application for the recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

379

contended that Annexure-20 confirms that the 3rd Respondent Rishita Associates, received photo gate pass under

(Annexure 11) in favour of the 86-contract labour including the Petitioner engaged by the 3rd Respondent between the

period of contract, i.e., 16th August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and

(Annexure 20) is the photo identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon

completion of the work contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and

terminal benefits upon the completion of the work contract, as contracted and settled under (annexure 11) between the

second and 3rd Respondents for executing the work contract of the first Respondent and Petitioner is entitled to

receive retrenchment allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The

Petitioner is unskilled and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay

for 903 working days, amounting to Rs. 83,909.54ps Since both third Respondent as well as the 2nd Respondent

failed to pay the terminal benefits upon the completion of the work contract on 15th August 2012, Petitioner workman

demanded the legal dues with interest from all Respondent collectively, but they did not pay. Further, it is submitted

that after a lapse of nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make

all the labour benefits payments directly to the workman such of that amount to be cleared against the work contract

dated 12th September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent.

1st Respondent acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter

(annexure 6) dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and

1st Respondent acknowledged the same, but it was in vain. Further, it is averred that the 2nd Respondent, vide

(annexure 5) dated 12th January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the

Petitioner contract labour and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all

the contract labour including Petitioner made representation through their union before the Regional Labour

Commissioner Central Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July

2015. The concerned authority issued notices to all Respondents, but no relief was granted to the workman.

Therefore, Petitioner has moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues

from Respondent. Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract

labour vide (Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract

Labour (Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with

interest at the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against

2nd Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work. 1st

Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September 2009,

approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter dated

15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-contractor does

not establish any contractual relationship between the sub-contractor Rishita Associates and Respondent No.1

Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved from the

Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract labour

are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

380

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was

completed on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the

1st Respondent/RINL processed the bill exparte. Respondent contended that as directions issued by the Income Tax

Authorities to the Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as

dues to be paid to the Income Tax Department from the pending bills of the second Respondent/contractor

M/s Midfield Industries and accordingly, this Respondent deducted appropriate amount and paid to the Income Tax

Department. Further, Respondent contended that the terminal benefit claimed by the Petitioner does not form part of

wages and, as such the contractor as a direct employer is legally responsible to make all other payments if any to the

Petitioner. Therefore, the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No.3 submits

that Respondent contractors have not terminated or retrenched the services of workers at any point in respect of the

said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

381

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No. 3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages to

him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from

16th August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012."

Further, MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of

labour for the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the

request of R1 has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-.

It is true that after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the

amount equivalent to the full and final amount as a special case by making partial modifications to the agreement

between it and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and

the date of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and

final payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

382

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.83,909.54ps. along with the interest for the work under contract is

not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable of

being computed in terms of money, and if any question arises as to the amount of money due or as to the amount

at which such benefit should be computed, then the question may, subject to any rules that may be wait under

this act, be decided by such labour court as may be specified in this behalf by the appropriate government within

a period of not exceeding three month."

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner is

entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

both the petition. It is settled law that the rule of evidence Act do not apply strictly to the matter under I.D. Act.

Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in support of claim

of Petitioner. In this context Petitioner has filed documents in evidence

which has been exhibited by witness WW1.The perusal of these document reveals that the document Ex. W1 is the

form of certificate issued by principal employer i.e., Deputy General Manager Visakhapatnam Steel Plant,

Visakhapatnam to the effect that it has engaged M/s. Midfield industries Ltd Respondent No.2 for the work of

strapping of mill product in WRM as contractor at Steel Plant, Visakhapatnam vide certificate dated 14th August

2009. Further, Document Ex. W8 is the letter dated 15th September 2009, issued by AGM works contract of

Respondent No.1 addressed to M/s. Midfield Industries Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009- 10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on

M's Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging M/s.

Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the order

under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

383

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-

contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are

mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.83,909.54ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at Sl. No. 7 and

against his name the total number of working days 903 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl. No. 7 name of the Petitioner, Sri Y. Appala

Reddy, unskilled workman is recorded and against his name amount due towards full and final amount is shown as

Rs.83,909.54ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General Manager

Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment directly which

is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th August 2009 to 15th August

2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent No.1 by Respondent No. 2

for release of amount equivalent to full and final benefit due to contract labour. Thus, ongoing oral and documentary

evidence produced by the Petitioner, it is established that Petitioner was engaged by the Respondent No.3 as contract

labour for the work of Respondent No.1 on behalf of Respondent No.2 during the period from 12.8.2009 to 12.8.2012

and he is entitled to receive Rs. 83,909.54ps. towards full and final payment as terminal benefit from Respondent

No.3 as per terms of contract Ex. W8, Ex.W9, and Ex. W12. Further, it is established that Petitioner was engaged for

work by Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to 15.8.2012 to work in industry of

R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, on going oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.83,909.54ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No.1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by 2nd

Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to the

workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and relevant

evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence. Moreover,

the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder, therefore,

burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he failed to

discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

384

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated 10th

March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

385

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No. 3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service w.e.f

16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

386

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No. 2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 83,909.54ps. to the Petitioner within 30 days from the date of this

order Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of due

i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this the

16th day of December 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri Y. Appala Reddy.

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1: Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2: Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

Ex.W3: Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4: Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5: Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6: Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7: Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

387

Ex.W8: Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9: Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10: Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11: Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

Ex.W12: Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13: Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14: Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1: Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2: Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3: Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4: Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5: Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512814 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6: Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

का.आ. 63.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

य ; ज ; के

प्रबंधतंत्र के संबद्ध जनयोजकों और . के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण

एवं श्रम न्यायालय, , पंचाट (ररफरेन्स न.- 35/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित

करती हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-26]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 63.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 35/2017) of the Central Government Industrial

388

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri M. Tripathi Rao which was received along with soft copy of the award by the

Central Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-26]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Presiding Officer

Dated the 16th day of December 2025

M.P. No. 35/2017

Between:

N.V. Appala Reddy,

S/o. N. Nagi Reddy,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

…..Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 for the recovery of the amount Rs. 84,002.46ps with regard to legitimate dues of full

and final payments including retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

389

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that

1st Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the

2nd Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and

3rd Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further,

it is averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated

12th September 2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent

accepted the work contract initially for a period of 24 months from 16th August 2009, and later it was extended for

another 12 months, vide letter dated 17th October 2012, confirming the work contract extension up to 15th August

2012, by (Annexure 8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as

contact labour upon receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent

vide agreement between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated

12th September 2009. According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield

Industries Limited," and 3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August

2009, and same is binding agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the

claim application for the recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has

contended that Annexure-20 confirms that the 3rd Respondent Rishita Associates, received photo gate pass under

(Annexure 11) in favour of the 86-contract labour including the Petitioner engaged by the 3rd Respondent between the

period of contract, i.e., 16th August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and

(Annexure 20) is the photo identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon

completion of the work contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and

terminal benefits upon the completion of the work contract, as contracted and settled under (annexure 11) between the

second and 3rd Respondents for executing the work contract of the first Respondent and Petitioner is entitled to

receive retrenchment allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The

Petitioner is unskilled and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay

for 904 working days, amounting to Rs. 84,002.46ps Since both third Respondent as well as the 2nd Respondent

failed to pay the terminal benefits upon the completion of the work contract on 15th August 2012, Petitioner workman

demanded the legal dues with interest from all Respondent collectively, but they did not pay. Further, it is submitted

that after a lapse of nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make

all the labour benefits payments directly to the workman such of that amount to be cleared against the work contract

dated 12th September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent. 1st

Respondent acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter

(annexure 6) dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and 1st

Respondent acknowledged the same, but it was in vain. Further, it is averred that the 2nd Respondent, vide (annexure

5) dated 12th January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the Petitioner

contract labour and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all the

contract labour including Petitioner made representation through their union before the Regional Labour

Commissioner Central Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July

2015. The concerned authority issued notices to all Respondents, but no relief was granted to the workman.

Therefore, Petitioner has moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues

from Respondent. Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract

labour vide (Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract

Labour (Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with

interest at the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against 2nd

Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work.

1st Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September

2009, approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter

dated 15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-

contractor does not establish any contractual relationship between the sub-contractor Rishita Associates and

390

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Respondent No.1 Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved

from the Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract

labour are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was completed

on

15.08.2012

but

2nd

Respondent/contractor

did

not

respond

to

the

same

therefore,

the

1st Respondent/RINL processed the bill exparte. Respondent contended that as directions issued by the Income Tax

Authorities to the Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as

dues to be paid to the Income Tax Department from the pending bills of the second Respondent/contractor

M/s Midfield Industries and accordingly, this Respondent deducted appropriate amount and paid to the Income Tax

Department. Further, Respondent contended that the terminal benefit claimed by the Petitioner does not form part of

wages and, as such the contractor as a direct employer is legally responsible to make all other payments if any to the

Petitioner. Therefore, the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No.3

submits that Respondent contractors have not terminated or retrenched the services of workers at any point in respect

of the said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

391

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No.3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages to

him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from

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[PART II—SEC. 3(ii)]

16th August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012."

Further, MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of

labour for the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the

request of R1 has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-.

It is true that after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the

amount equivalent to the full and final amount as a special case by making partial modifications to the agreement

between it and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and

the date of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and

final payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.84,002.46ps. along with the interest for the work under contract is

not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable of

being computed in terms of money, and if any question arises as to the amount of money due or as to the amount

at which such benefit should be computed, then the question may, subject to any rules that may be wait under

this act, be decided by such labour court as may be specified in this behalf by the appropriate government within

a period of not exceeding three month."

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner is

entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

both the petition. It is settled law that the rule of evidence Act do not apply strictly to the matter under I.D. Act.

Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in support of claim

of Petitioner. In this context Petitioner has filed documents in evidence which has been exhibited by witness

WW1.The perusal of these document reveals that the document Ex. W1 is the form of certificate issued by principal

employer i.e., Deputy General Manager Visakhapatnam Steel Plant, Visakhapatnam to the effect that it has engaged

M/s. Midfield industries Ltd Respondent No.2 for the work of strapping of mill product in WRM as contractor at

Steel Plant, Visakhapatnam vide certificate dated 14th August 2009. Further, Document Ex. W8 is the letter dated

15th September 2009, issued by AGM works contract of Respondent No.1 addressed to M/s. Midfield Industries

Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009- 10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

393

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on M's

Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging M/s.

Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the order

under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-

contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are

mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.84,002.46ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at Sl. No. 32 and

against his name the total number of working days 904 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl. No. 32 name of the Petitioner,

Sri N.V. Appala Reddy, unskilled workman is recorded and against his name amount due towards full and final

amount is shown as Rs.84,002.46ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to

the General Manager Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit

payment directly which is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th

August 2009 to 15th August 2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent

No.1 by Respondent No.2 for release of amount equivalent to full and final benefit due to contract labour. Thus,

ongoing oral and documentary evidence produced by the Petitioner, it is established that Petitioner was engaged by

the Respondent No.3 as contract labour for the work of Respondent No.1 on behalf of Respondent No. 2 during the

period from 12.8.2009 to 12.8.2012 and he is entitled to receive Rs. 84,002.46ps. towards full and final payment as

terminal benefit from Respondent No.3 as per terms of contract Ex. W8, Ex.W9, and Ex. W12. Further, it is

established that Petitioner was engaged for work by Respondent No. 3 i.e., Rishitha Associates for the period from

16.8.2009 to 15.8.2012 to work in industry of R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam

Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, on going oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs. 84,002.46ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No.1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

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[PART II—SEC. 3(ii)]

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by 2nd

Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to the

workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and relevant

evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence. Moreover,

the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder, therefore,

burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he failed to

discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No. 2 and Respondent No. 3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated 10th

March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

395

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No. 3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

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THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service

w.e.f 16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour

i.e. Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No. 3 of

the Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No.2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 84,002.46ps. to the Petitioner within 30 days from the date of this

order Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of due

i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this the

16th day of December 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri N.V. Appala Reddy.

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

397

Ex.W1: Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2: Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

Ex.W3: Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4: Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5: Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6: Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7: Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8: Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9: Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10: Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11: Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

Ex.W12: Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13: Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14: Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3: Photostat copy of Letter from Deputy Commissioner of Income Tax,

398

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Hyderabad to RINL dt: 07.11.2013.

Ex.M4: Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5: Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512814 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6: Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

का.आ. 64.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

य ; ज ; के

प्रबंधतंत्र के संबद्ध जनयोजकों और के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण एवं

श्रम न्यायालय, , पंचाट (ररफरेन्स न.- 36/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित

करती हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-27]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 64.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 36/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri Tulasi Ram Sahua which was received along with soft copy of the award by the

Central Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-27]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Presiding Officer

Dated the 17th day of December 2025

M.P. No. 36/2017

Between:

Tulasi Ram Sahua,

S/o. Sukram Sahu,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

…..Petitioner

And

1. Chairman & Managing Director

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

399

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 for the recovery of the amount Rs. 82,144.00ps with regard to legitimate dues of full

and final payments including retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that

1st Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the

2nd Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and

3rd Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further,

it is averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated

12th September 2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent

accepted the work contract initially for a period of 24 months from 16th August 2009, and later it was extended for

another 12 months, vide letter dated 17th October 2012, confirming the work contract extension up to 15th August

2012, by (Annexure 8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as

contact labour upon receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent

vide agreement between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated

12th September 2009. According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield

Industries Limited," and 3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August

2009, and same is binding agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the

claim application for the recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has

contended that Annexure-20 confirms that the 3rd Respondent Rishita Associates, received photo gate pass under

(Annexure 11) in favour of the 86-contract labour including the Petitioner engaged by the 3rd Respondent between the

period of contract, i.e., 16th August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and

(Annexure 20) is the photo identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon

completion of the work contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and

terminal benefits upon the completion of the work contract, as contracted and settled under (annexure 11) between the

second and 3rd Respondents for executing the work contract of the first Respondent and Petitioner is entitled to

receive retrenchment allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The

Petitioner is unskilled and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay

for 884 working days, amounting to Rs. 82,144.00ps Since both third Respondent as well as the 2nd Respondent

failed to pay the terminal benefits upon the completion of the work contract on 15th August 2012, Petitioner workman

400

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

demanded the legal dues with interest from all Respondent collectively, but they did not pay. Further, it is submitted

that after a lapse of nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make

all the labour benefits payments directly to the workman such of that amount to be cleared against the work contract

dated 12th September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent.

1st Respondent acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter

(annexure 6) dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and 1st

Respondent acknowledged the same, but it was in vain. Further, it is averred that the 2nd Respondent, vide (annexure

5) dated 12th January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the Petitioner

contract labour and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all the

contract labour including Petitioner made representation through their union before the Regional Labour

Commissioner Central Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July

2015. The concerned authority issued notices to all Respondents, but no relief was granted to the workman.

Therefore, Petitioner has moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues

from Respondent. Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract

labour vide (Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract

Labour (Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with

interest at the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against 2nd

Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work.

1st Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September

2009, approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter

dated 15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-

contractor does not establish any contractual relationship between the sub-contractor Rishita Associates and

Respondent No.1 Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved

from the Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract

labour are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was

completed on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the 1st

Respondent/RINL processed the bill exparte. Respondent contended that as directions issued by the Income Tax

Authorities to the Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as

dues to be paid to the Income Tax Department from the pending bills of the second Respondent/contractor M/s

Midfield Industries and accordingly, this Respondent deducted appropriate amount and paid to the Income Tax

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

401

Department. Further, Respondent contended that the terminal benefit claimed by the Petitioner does not form part of

wages and, as such the contractor as a direct employer is legally responsible to make all other payments if any to the

Petitioner. Therefore, the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No.3 submits

that Respondent contractors have not terminated or retrenched the services of workers at any point in respect of the

said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

402

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No.3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages to

him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from 16th

August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012." Further,

MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of labour for

the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the request of R1

has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-. It is true that

after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the amount

equivalent to the full and final amount as a special case by making partial modifications to the agreement between it

and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and the date

of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and final

payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.82,144.00ps. along with the interest for the work under contract is

not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable

of being computed in terms of money, and if any question arises as to the amount of money due or as to the

amount at which such benefit should be computed, then the question may, subject to any rules that may be

wait under this act, be decided by such labour court as may be specified in this behalf by the appropriate

government within a period of not exceeding three month."

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

403

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner is

entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

both the petition. It is settled law that the rule of evidence Act do not apply strictly to the matter under I.D. Act.

Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in support of claim

of Petitioner. In this context Petitioner has filed documents in evidence

which has been exhibited by witness WW1.The perusal of these document reveals that the document Ex. W1 is the

form of certificate issued by principal employer i.e., Deputy General Manager Visakhapatnam Steel Plant,

Visakhapatnam to the effect that it has engaged M/s. Midfield industries Ltd Respondent No.2 for the work of

strapping of mill product in WRM as contractor at Steel Plant, Visakhapatnam vide certificate dated 14th August

2009. Further, Document Ex. W8 is the letter dated 15th September 2009, issued by AGM works contract of

Respondent No.1 addressed to M/s. Midfield Industries Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009- 10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on

M's Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging

M/s. Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the

order under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-

contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are

mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.82,144.00ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at Sl. No. 48 and

against his name the total number of working days 884 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl. No. 48 name of the Petitioner, Sri Tulasi

Ram Sahua, unskilled workman is recorded and against his name amount due towards full and final amount is shown

as Rs.82,144.00ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General

404

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Manager Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment

directly which is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th August

2009 to 15th August 2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent No. 1 by

Respondent No.2 for release of amount equivalent to full and final benefit due to contract labour. Thus, ongoing oral

and documentary evidence produced by the Petitioner, it is established that Petitioner was engaged by the Respondent

No.3 as contract labour for the work of Respondent No.1 on behalf of Respondent No.2 during the period from

12.8.2009 to 12.8.2012 and he is entitled to receive Rs. 82,144.00ps. towards full and final payment as terminal

benefit from Respondent No.3 as per terms of contract Ex. W8, Ex.W9, and Ex. W12. Further, it is established that

Petitioner was engaged for work by Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to

15.8.2012 to work in industry of R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, on going oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.82,144.00ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No.1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by

2nd Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to

the workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and

relevant evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence.

Moreover, the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder,

therefore, burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he

failed to discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated

10th March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

405

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

406

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No.3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service w.e.f

16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No.2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

407

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 82,144.00ps. to the Petitioner within 30 days from the date of this

order Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of due

i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this the

17th day of December 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri Tulasi Ram Sahua.

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1: Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2: Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

Ex.W3: Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4: Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5: Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6: Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7: Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8: Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9: Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10: Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11: Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

Ex.W12: Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13: Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14: Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of Licence issued to 3rd Respondent by Licencing

408

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512814 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6:

Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

का.आ. 65.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

य ; ज ; के

प्रबंधतंत्र के संबद्ध जनयोजकों और . य के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण एवं श्रम

न्यायालय, , पंचाट (ररफरेन्स न.- 37/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित करती

हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-28]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 65.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 37/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri K. Pentayya which was received along with soft copy of the award by the Central

Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-28]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Presiding Officer

Dated the 17th day of December 2025

M.P. No. 37/2017

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

409

Between:

K. Pentayya,

S/o. K. Venkataswamy,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

…..Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 for the recovery of the amount Rs. 81,679.38ps with regard to legitimate dues of full

and final payments including retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that

1st Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the

2nd Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and

3rd Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further,

it is averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated

12th September 2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent

accepted the work contract initially for a period of 24 months from 16th August 2009, and later it was extended for

another 12 months, vide letter dated 17th October 2012, confirming the work contract extension up to 15th August

2012, by (Annexure 8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as

contact labour upon receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent

vide agreement between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated 12th

September 2009. According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield

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[PART II—SEC. 3(ii)]

Industries Limited," and 3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August

2009, and same is binding agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the

claim application for the recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has

contended that Annexure-20 confirms that the 3rd Respondent Rishita Associates, received photo gate pass under

(Annexure 11) in favour of the 86-contract labour including the Petitioner engaged by the 3rd Respondent between the

period of contract, i.e., 16th August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and

(Annexure 20) is the photo identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon

completion of the work contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and

terminal benefits upon the completion of the work contract, as contracted and settled under (annexure 11) between the

second and 3rd Respondents for executing the work contract of the first Respondent and Petitioner is entitled to

receive retrenchment allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The

Petitioner is unskilled and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay

for 879 working days, amounting to Rs. 81,679.38ps Since both third Respondent as well as the 2nd Respondent

failed to pay the terminal benefits upon the completion of the work contract on 15th August 2012, Petitioner workman

demanded the legal dues with interest from all Respondent collectively, but they did not pay. Further, it is submitted

that after a lapse of nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make

all the labour benefits payments directly to the workman such of that amount to be cleared against the work contract

dated 12th September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent.

1st Respondent acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter

(annexure 6) dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and

1st Respondent acknowledged the same, but it was in vain. Further, it is averred that the 2nd Respondent, vide

(annexure 5) dated 12th January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the

Petitioner contract labour and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all

the contract labour including Petitioner made representation through their union before the Regional Labour

Commissioner Central Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July

2015. The concerned authority issued notices to all Respondents, but no relief was granted to the workman.

Therefore, Petitioner has moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues

from Respondent. Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract

labour vide (Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract

Labour (Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with

interest at the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against 2nd

Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work. 1st

Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September 2009,

approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter dated

15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-contractor does

not establish any contractual relationship between the sub-contractor Rishita Associates and Respondent No.1

Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved from the

Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract labour

are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

[भाग II—खण् ड 3(ii)]

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411

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was

completed on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the 1st

Respondent/RINL processed the bill exparte. Respondent contended that as directions issued by the Income Tax

Authorities to the Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as

dues to be paid to the Income Tax Department from the pending bills of the second Respondent/contractor M/s

Midfield Industries and accordingly, this Respondent deducted appropriate amount and paid to the Income Tax

Department. Further, Respondent contended that the terminal benefit claimed by the Petitioner does not form part of

wages and, as such the contractor as a direct employer is legally responsible to make all other payments if any to the

Petitioner. Therefore, the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No.3

submits that Respondent contractors have not terminated or retrenched the services of workers at any point in respect

of the said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

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[PART II—SEC. 3(ii)]

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No. 3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages to

him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from

16th August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012."

Further, MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of

labour for the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the

request of R1 has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-.

It is true that after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the

amount equivalent to the full and final amount as a special case by making partial modifications to the agreement

between it and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and

the date of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and

final payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

[भाग II—खण् ड 3(ii)]

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413

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.81,679.38ps. along with the interest for the work under contract is

not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable

of being computed in terms of money, and if any question arises as to the amount of money due or as to the

amount at which such benefit should be computed, then the question may, subject to any rules that may be

wait under this act, be decided by such labour court as may be specified in this behalf by the appropriate

government within a period of not exceeding three month."

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner is

entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

both the petition. It is settled law that the rule of evidence Act do not apply strictly to the matter under I.D. Act.

Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in support of claim

of Petitioner. In this context Petitioner has filed documents in evidence

which has been exhibited by witness WW1.The perusal of these document reveals that the document Ex. W1 is the

form of certificate issued by principal employer i.e., Deputy General Manager Visakhapatnam Steel Plant,

Visakhapatnam to the effect that it has engaged M/s. Midfield industries Ltd Respondent No.2 for the work of

strapping of mill product in WRM as contractor at Steel Plant, Visakhapatnam vide certificate dated 14th August

2009. Further, Document Ex. W8 is the letter dated 15th September 2009, issued by AGM works contract of

Respondent No.1 addressed to M/s. Midfield Industries Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009- 10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on M's

Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging M/s.

Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the order

under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-

contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are

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[PART II—SEC. 3(ii)]

mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.81,679.38ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at Sl. No. 18 and

against his name the total number of working days 879 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl. No. 18 name of the Petitioner, Sri K.

Pentayya, unskilled workman is recorded and against his name amount due towards full and final amount is shown as

Rs.81,679.38ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General Manager

Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment directly which

is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th August 2009 to 15th August

2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent No.1 by Respondent No.2 for

release of amount equivalent to full and final benefit due to contract labour. Thus, ongoing oral and documentary

evidence produced by the Petitioner, it is established that Petitioner was engaged by the Respondent No.3 as contract

labour for the work of Respondent No.1 on behalf of Respondent No.2 during the period from 12.8.2009 to 12.8.2012

and he is entitled to receive Rs. 81,679.38ps. towards full and final payment as terminal benefit from Respondent

No.3 as per terms of contract Ex. W8, Ex.W9, and Ex. W12. Further, it is established that Petitioner was engaged for

work by Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to 15.8.2012 to work in industry of

R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, on going oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.81,679.38ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No.1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by 2nd

Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to the

workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and relevant

evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence. Moreover,

the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder, therefore,

burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he failed to

discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated 10th

March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

415

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

416

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No.3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service w.e.f

16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

417

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No.2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 81,679.38ps. to the Petitioner within 30 days from the date of this

order Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of due

i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this the

17th day of December 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri K. Pentayya.

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

Ex.W3:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10:

Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11:

Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

Ex.W12:

Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

418

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Ex.W13:

Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14:

Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15:

Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16:

Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512814 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6:

Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

का.आ. 66.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

य ; ज ; के

प्रबंधतंत्र के संबद्ध जनयोजकों और . के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण एवं श्रम

न्यायालय, , पंचाट (ररफरेन्स न.- 38/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित करती

हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-29]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 66.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 38/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri K. Demudu which was received along with soft copy of the award by the Central

Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-29]

SALONI, Dy. Director

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

419

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Presiding Officer

Dated the 18th day of December 2025

M.P. No. 38/2017

Between:

K. Demudu,

S/o. K. Simhachalam,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

…..Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 for the recovery of the amount Rs. 71,829.54ps with regard to legitimate dues of full

and final payments including retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that

420

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

1st Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the

2nd Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and

3rd Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further,

it is averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated

12th September 2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent

accepted the work contract initially for a period of 24 months from 16th August 2009, and later it was extended for

another 12 months, vide letter dated 17th October 2012, confirming the work contract extension up to 15th August

2012, by (Annexure 8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as

contact labour upon receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent

vide agreement between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated

12th September 2009. According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield

Industries Limited," and 3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August

2009, and same is binding agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the

claim application for the recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has

contended that Annexure-20 confirms that the 3rd Respondent Rishita Associates, received photo gate pass under

(Annexure 11) in favour of the 86-contract labour including the Petitioner engaged by the 3rd Respondent between the

period of contract, i.e., 16th August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and

(Annexure 20) is the photo identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon

completion of the work contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and

terminal benefits upon the completion of the work contract, as contracted and settled under (annexure 11) between the

second and 3rd Respondents for executing the work contract of the first Respondent and Petitioner is entitled to

receive retrenchment allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The

Petitioner is unskilled and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay

for 773 working days, amounting to Rs. 71,829.54ps Since both third Respondent as well as the 2nd Respondent

failed to pay the terminal benefits upon the completion of the work contract on 15th August 2012, Petitioner workman

demanded the legal dues with interest from all Respondent collectively, but they did not pay. Further, it is submitted

that after a lapse of nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make

all the labour benefits payments directly to the workman such of that amount to be cleared against the work contract

dated 12th September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent.

1st Respondent acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter

(annexure 6) dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and 1st

Respondent acknowledged the same, but it was in vain. Further, it is averred that the 2nd Respondent, vide (annexure

5) dated 12th January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the Petitioner

contract labour and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all the

contract labour including Petitioner made representation through their union before the Regional Labour

Commissioner Central Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July

2015. The concerned authority issued notices to all Respondents, but no relief was granted to the workman.

Therefore, Petitioner has moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues

from Respondent. Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract

labour vide (Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract

Labour (Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with

interest at the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against

2nd Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work. 1st

Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September 2009,

approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter dated

15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-contractor does

not establish any contractual relationship between the sub-contractor Rishita Associates and Respondent No. 1

Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved from the

Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract labour

are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

[भाग II—खण् ड 3(ii)]

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421

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was completed

on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the 1st Respondent/RINL

processed the bill exparte. Respondent contended that as directions issued by the Income Tax Authorities to the

Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as dues to be paid to

the Income Tax Department from the pending bills of the second Respondent/contractor M/s Midfield Industries and

accordingly, this Respondent deducted appropriate amount and paid to the Income Tax Department. Further,

Respondent contended that the terminal benefit claimed by the Petitioner does not form part of wages and, as such the

contractor as a direct employer is legally responsible to make all other payments if any to the Petitioner. Therefore,

the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No.3

submits that Respondent contractors have not terminated or retrenched the services of workers at any point in respect

of the said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

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[PART II—SEC. 3(ii)]

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No. 3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages to

him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from 16th

August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012." Further,

MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of labour for

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

423

the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the request of R1

has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-. It is true that

after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the amount

equivalent to the full and final amount as a special case by making partial modifications to the agreement between it

and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and the date

of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and final

payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.71,829.54ps. along with the interest for the work under contract is

not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable

of being computed in terms of money, and if any question arises as to the amount of money due or as to the

amount at which such benefit should be computed, then the question may, subject to any rules that may be

wait under this act, be decided by such labour court as may be specified in this behalf by the appropriate

government within a period of not exceeding three month."

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner is

entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

both the petition. It is settled law that the rule of evidence Act do not apply strictly to the matter under I.D. Act.

Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in support of claim

of Petitioner. In this context Petitioner has filed documents in evidence

which has been exhibited by witness WW1.The perusal of these document reveals that the document Ex. W1 is the

form of certificate issued by principal employer i.e., Deputy General Manager Visakhapatnam Steel Plant,

Visakhapatnam to the effect that it has engaged M/s. Midfield industries Ltd Respondent No.2 for the work of

strapping of mill product in WRM as contractor at Steel Plant, Visakhapatnam vide certificate dated 14th August

2009. Further, Document Ex. W8 is the letter dated 15th September 2009, issued by AGM works contract of

Respondent No.1 addressed to M/s. Midfield Industries Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009- 10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on M's

Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging M/s.

Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the order

under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

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[PART II—SEC. 3(ii)]

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-

contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are

mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.71,829.54ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at Sl. No. 67 and

against his name the total number of working days 773 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl. No. 67 name of the Petitioner, Sri K.

Demudu, unskilled workman is recorded and against his name amount due towards full and final amount is shown as

Rs.71,829.54ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General Manager

Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment directly which

is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th August 2009 to 15th August

2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent No.1 by Respondent No.2 for

release of amount equivalent to full and final benefit due to contract labour. Thus, ongoing oral and documentary

evidence produced by the Petitioner, it is established that Petitioner was engaged by the Respondent No.3 as contract

labour for the work of Respondent No.1 on behalf of Respondent No.2 during the period from 12.8.2009 to 12.8.2012

and he is entitled to receive Rs. 71,829.54ps. towards full and final payment as terminal benefit from Respondent

No.3 as per terms of contract Ex. W8, Ex.W9, and Ex. W12. Further, it is established that Petitioner was engaged for

work by Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to 15.8.2012 to work in industry of

R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, on going oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.71,829.54ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No. 1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by

2nd Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to

the workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and

relevant evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence.

Moreover, the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder,

therefore, burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he

failed to discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

425

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated 10th

March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

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[PART II—SEC. 3(ii)]

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No. 3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service w.e.f

16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

427

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No.2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 71,829.54ps. to the Petitioner within 30 days from the date of this

order Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of due

i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this the

18th day of December 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri K. Demudu.

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

Ex.W3:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent

428

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10:

Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11:

Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

Ex.W12:

Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13:

Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14:

Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15:

Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16:

Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

429

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512814 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6:

Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

का.आ. 67.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

राष्ट्रीय इस्ट्पात जनगम जलजमट जविाखापत्तनम स्ट्टील प्लांट; जमडफील्ड इंडस्ट्रीज जलजमटेड; मेससा ऋजषता एसोजसएट्स के

प्रबंधतंत्र के संबद्ध जनयोजकों और श्री के. वासुदेव राव के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण एवं

श्रम न्यायालय, हजदराबाद, पंचाट (ररफरेन्स न.- एमपी 39/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित

करती हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-30]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 67.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 39/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri K. Vasudeva Rao which was received along with soft copy of the award by the

Central Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-30]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Presiding Officer

Dated the 18th day of December 2025

M.P. No. 39/2017

Between:

K. Vasudeva Rao,

S/o. K. Sanyasi Rao,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

…..Petitioner

And

430

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 for the recovery of the amount Rs. 1,03,397.54ps with regard to legitimate dues of

full and final payments including retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that 1st

Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the 2nd

Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and 3rd

Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further, it is

averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated 12th September

2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent accepted the work

contract initially for a period of 24 months from 16th August 2009, and later it was extended for another 12 months,

vide letter dated 17th October 2012, confirming the work contract extension up to 15th August 2012, by (Annexure

8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as contact labour upon

receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent vide agreement

between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated 12th September 2009.

According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield Industries Limited," and

3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August 2009, and same is binding

agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the claim application for the

recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has contended that Annexure-20

confirms that the 3rd Respondent Rishita Associates, received photo gate pass under (Annexure 11) in favour of the

86-contract labour including the Petitioner engaged by the 3rd Respondent between the period of contract, i.e., 16th

August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and (Annexure 20) is the photo

identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon completion of the work

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

431

contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and terminal benefits upon

the completion of the work contract, as contracted and settled under (annexure 11) between the second and 3rd

Respondents for executing the work contract of the first Respondent and Petitioner is entitled to receive retrenchment

allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The Petitioner is unskilled

and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay for 889 working days,

amounting to Rs. 1,03,397.54ps Since both third Respondent as well as the 2nd Respondent failed to pay the terminal

benefits upon the completion of the work contract on 15th August 2012, Petitioner workman demanded the legal dues

with interest from all Respondent collectively, but they did not pay. Further, it is submitted that after a lapse of

nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make all the labour

benefits payments directly to the workman such of that amount to be cleared against the work contract dated

12th September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent. 1st

Respondent acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter

(annexure 6) dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and 1st

Respondent acknowledged the same, but it was in vain. Further, it is averred that the 2nd Respondent, vide (annexure

5) dated 12th January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the Petitioner

contract labour and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all the

contract labour including Petitioner made representation through their union before the Regional Labour

Commissioner Central Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July

2015. The concerned authority issued notices to all Respondents, but no relief was granted to the workman.

Therefore, Petitioner has moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues

from Respondent. Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract

labour vide (Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract

Labour (Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with

interest at the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against

2nd Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work. 1st

Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September 2009,

approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter dated

15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-contractor does

not establish any contractual relationship between the sub-contractor Rishita Associates and Respondent No.1

Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved from the

Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract labour

are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

432

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was

completed on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the

1st Respondent/RINL processed the bill exparte. Respondent contended that as directions issued by the Income Tax

Authorities to the Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as

dues to be paid to the Income Tax Department from the pending bills of the second Respondent/contractor

M/s Midfield Industries and accordingly, this Respondent deducted appropriate amount and paid to the Income Tax

Department. Further, Respondent contended that the terminal benefit claimed by the Petitioner does not form part of

wages and, as such the contractor as a direct employer is legally responsible to make all other payments if any to the

Petitioner. Therefore, the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No.3 submits

that Respondent contractors have not terminated or retrenched the services of workers at any point in respect of the

said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

433

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No.3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages

to him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from 16th

August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012." Further,

MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of labour for

the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the request of R1

has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-. It is true that

after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the amount

equivalent to the full and final amount as a special case by making partial modifications to the agreement between it

and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and the date

of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and final

payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.1,03,397.54ps. along with the interest for the work under contract

is not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from

Respondent.

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[PART II—SEC. 3(ii)]

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable

of being computed in terms of money, and if any question arises as to the amount of money due or as to

the amount at which such benefit should be computed, then the question may, subject to any rules that

may be wait under this act, be decided by such labour court as may be specified in this behalf by the

appropriate government within a period of not exceeding three month."

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner is

entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

both the petition. It is settled law that the rule of evidence Act do not apply strictly to the matter under I.D. Act.

Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in support of claim

of Petitioner. In this context Petitioner has filed documents in evidence which has been exhibited by witness

WW1.The perusal of these document reveals that the document Ex. W1 is the form of certificate issued by principal

employer i.e., Deputy General Manager Visakhapatnam Steel Plant, Visakhapatnam to the effect that it has engaged

M/s. Midfield industries Ltd Respondent No.2 for the work of strapping of mill product in WRM as contractor at

Steel Plant, Visakhapatnam vide certificate dated 14th August 2009. Further, Document Ex. W8 is the letter dated

15th September 2009, issued by AGM works contract of Respondent No.1 addressed to M/s. Midfield Industries

Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009-10/8090000359 dt: 12/09/2009

3. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on M's

Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging

M/s. Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the

order under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP

sub-contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment

are mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

435

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.1,03,397.54ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at Sl. No. 46 and

against his name the total number of working days 889 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl. No. 46 name of the Petitioner,

Sri K. Vasudeva Rao, unskilled workman is recorded and against his name amount due towards full and final amount

is shown as Rs.1,03,397.54ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the

General Manager Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit

payment directly which is to be cleared by Respondent No.2 in respect of contract labour for the period from

16th August 2009 to 15th August 2012. Similarly, documents Ex. W17 and W20 are the letters addressed to

Respondent No.1 by Respondent No.2 for release of amount equivalent to full and final benefit due to contract labour.

Thus, ongoing oral and documentary evidence produced by the Petitioner, it is established that Petitioner was engaged

by the Respondent No.3 as contract labour for the work of Respondent No.1 on behalf of Respondent No.2 during the

period from 12.8.2009 to 12.8.2012 and he is entitled to receive Rs. 1,03,397.54ps. towards full and final payment as

terminal benefit from Respondent No.3 as per terms of contract Ex. W8, Ex. W9, and Ex. W12. Further, it is

established that Petitioner was engaged for work by Respondent No. 3 i.e., Rishitha Associates for the period from

16.8.2009 to 15.8.2012 to work in industry of R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam

Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, ongoing oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.1,03,397.54ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No.1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No. 3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by

2nd Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to

the workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and

relevant evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence.

Moreover, the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder,

therefore, burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No. 1 which he

failed to discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated 10th

March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

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THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

437

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No.3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service w.e.f

16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

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[PART II—SEC. 3(ii)]

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No.2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 1,03,397.54ps. to the Petitioner within 30 days from the date of

this order Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of

due i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this the

18th day of December 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri K. Vasudeva Rao

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

Ex.W3:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

439

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10:

Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11:

Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

Ex.W12:

Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13:

Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14:

Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15:

Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16:

Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512814 Dt.04.12.2015 for

440

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6: Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

का.आ. 68.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

राष्ट्रीय इस्ट्पात जनगम जलजमट जविाखापत्तनम स्ट्टील प्लांट; जमडफील्ड इंडस्ट्रीज जलजमटेड; मेससा ऋजषता एसोजसएट्स के

प्रबंधतंत्र के संबद्ध जनयोजकों और श्री के. दास के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण एवं श्रम

न्यायालय, हजदराबाद, पंचाट (ररफरेन्स न.- एमपी 40/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित करती

हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-31]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 68.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 40/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri K. Das which was received along with soft copy of the award by the Central

Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-31]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Presiding Officer

Dated the 19th day of December 2025

M.P. No. 40/2017

Between:

K. Das,

S/o. K. Bandayya,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

….Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

441

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 for the recovery of the amount Rs. 83,909.54ps with regard to legitimate dues of full

and final payments including retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that 1st

Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the 2nd

Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and 3rd

Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further, it is

averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated 12th September

2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent accepted the work

contract initially for a period of 24 months from 16th August 2009, and later it was extended for another 12 months,

vide letter dated 17th October 2012, confirming the work contract extension up to 15th August 2012, by (Annexure

8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as contact labour upon

receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent vide agreement

between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated 12th September 2009.

According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield Industries Limited," and

3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August 2009, and same is binding

agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the claim application for the

recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has contended that Annexure-20

confirms that the 3rd Respondent Rishita Associates, received photo gate pass under (Annexure 11) in favour of the

86-contract labour including the Petitioner engaged by the 3rd Respondent between the period of contract, i.e., 16th

August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and (Annexure 20) is the photo

identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon completion of the work

contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and terminal benefits upon

the completion of the work contract, as contracted and settled under (annexure 11) between the second and

3rd Respondents for executing the work contract of the first Respondent and Petitioner is entitled to receive

retrenchment allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The Petitioner

is unskilled and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay for 903

working days, amounting to Rs. 83,909.54ps Since both third Respondent as well as the 2nd Respondent failed to pay

the terminal benefits upon the completion of the work contract on 15th August 2012, Petitioner workman demanded

the legal dues with interest from all Respondent collectively, but they did not pay. Further, it is submitted that after a

442

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

lapse of nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make all the

labour benefits payments directly to the workman such of that amount to be cleared against the work contract dated

12th September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent.

1st Respondent acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter

(annexure 6) dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and

1st Respondent acknowledged the same, but it was in vain. Further, it is averred that the 2nd Respondent, vide

(annexure 5) dated 12th January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the

Petitioner contract labour and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all

the contract labour including Petitioner made representation through their union before the Regional Labour

Commissioner Central Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July

2015. The concerned authority issued notices to all Respondents, but no relief was granted to the workman.

Therefore, Petitioner has moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues

from Respondent. Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract

labour vide (Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract

Labour (Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with

interest at the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against 2nd

Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work.

1st Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September

2009, approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter

dated 15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-

contractor does not establish any contractual relationship between the sub-contractor Rishita Associates and

Respondent No.1 Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved

from the Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract

labour are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was completed

on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the 1st Respondent/RINL

processed the bill exparte. Respondent contended that as directions issued by the Income Tax Authorities to the

Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as dues to be paid to

the Income Tax Department from the pending bills of the second Respondent/contractor M/s Midfield Industries and

accordingly, this Respondent deducted appropriate amount and paid to the Income Tax Department. Further,

Respondent contended that the terminal benefit claimed by the Petitioner does not form part of wages and, as such the

contractor as a direct employer is legally responsible to make all other payments if any to the Petitioner. Therefore,

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

443

the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No.3

submits that Respondent contractors have not terminated or retrenched the services of workers at any point in respect

of the said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

444

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No.3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages

to him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from

16th August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012."

Further, MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of

labour for the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the

request of R1 has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-.

It is true that after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the

amount equivalent to the full and final amount as a special case by making partial modifications to the agreement

between it and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and

the date of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and

final payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.83,909.54ps. along with the interest for the work under contract is

not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable

of being computed in terms of money, and if any question arises as to the amount of money due or as to the

amount at which such benefit should be computed, then the question may, subject to any rules that may be

wait under this act, be decided by such labour court as may be specified in this behalf by the appropriate

government within a period of not exceeding three month."

12.

Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner

is entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

445

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

both the petition. It is settled law that the rule of evidence Act do not apply strictly to the matter under I.D. Act.

Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in support of claim

of Petitioner. In this context Petitioner has filed documents in evidence which has been exhibited by witness

WW1.The perusal of these document reveals that the document Ex. W1 is the form of certificate issued by principal

employer i.e., Deputy General Manager Visakhapatnam Steel Plant, Visakhapatnam to the effect that it has engaged

M/s. Midfield industries Ltd Respondent No.2 for the work of strapping of mill product in WRM as contractor at

Steel Plant, Visakhapatnam vide certificate dated 14th August 2009. Further, Document Ex. W8 is the letter dated

15th September 2009, issued by AGM works contract of Respondent No.1 addressed to M/s. Midfield Industries

Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009-10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on M's

Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging M/s.

Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the order

under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP

sub-contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment

are mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.83,909.54ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at Sl. No. 25 and

against his name the total number of working days 903 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

446

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

signatories of Respondent No.2. This document goes to show that at Sl. No. 25 name of the Petitioner, Sri K. Das,

unskilled workman is recorded and against his name amount due towards full and final amount is shown as

Rs.83,909.54ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General Manager

Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment directly which

is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th August 2009 to 15th August

2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent No.1 by Respondent No.2 for

release of amount equivalent to full and final benefit due to contract labour. Thus, ongoing oral and documentary

evidence produced by the Petitioner, it is established that Petitioner was engaged by the Respondent No.3 as contract

labour for the work of Respondent No.1 on behalf of Respondent No.2 during the period from 12.8.2009 to 12.8.2012

and he is entitled to receive Rs. 83,909.54ps. towards full and final payment as terminal benefit from Respondent

No.3 as per terms of contract Ex. W8, Ex. W9, and Ex. W12. Further, it is established that Petitioner was engaged

for work by Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to 15.8.2012 to work in industry

of R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, ongoing oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.83,909.54ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No. 1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by 2nd

Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to the

workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and relevant

evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence. Moreover,

the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder, therefore,

burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he failed to

discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated 10th

March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

447

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

448

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No.3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service

w.e.f 16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour

i.e. Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of

the Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No. 2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

449

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 83,909.54ps. to the Petitioner within 30 days from the date of this

order Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of due

i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to

Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this

the 19th day of December 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri K. Das

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

Ex.W3:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10: Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11: Photostat copy of agreement between 2nd and 3rd Respondent

450

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

(Basis of Claim) dt: 16.8.2009.

Ex.W12: Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13: Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14: Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512814 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6: Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

451

का.आ. 69.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

राष्ट्रीय इस्ट्पात जनगम जलजमट जविाखापत्तनम स्ट्टील प्लांट; जमडफील्ड इंडस्ट्रीज जलजमटेड; मेससा ऋजषता एसोजसएट्स के

प्रबंधतंत्र के संबद्ध जनयोजकों और श्री पी. अपन्ना के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण एवं श्रम

न्यायालय, हजदराबाद, पंचाट (ररफरेन्स न.- एमपी 41/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित करती

हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-32]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 69.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 41/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri P. Appanna which was received along with soft copy of the award by the Central

Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-32]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Presiding Officer

Dated the 19th day of December 2025

M.P. No. 41/2017

Between:

P. Appanna,

S/o. P. Simhachalam,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

….Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

452

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 for the recovery of the amount Rs. 78,520.00ps with regard to legitimate dues of full

and final payments including retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that

1st Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the

2nd Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and

3rd Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further,

it is averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated

12th September 2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent

accepted the work contract initially for a period of 24 months from 16th August 2009, and later it was extended for

another 12 months, vide letter dated 17th October 2012, confirming the work contract extension up to 15th August

2012, by (Annexure 8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as

contact labour upon receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent

vide agreement between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated 12th

September 2009. According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield

Industries Limited," and 3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August

2009, and same is binding agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the

claim application for the recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has

contended that Annexure-20 confirms that the 3rd Respondent Rishita Associates, received photo gate pass under

(Annexure 11) in favour of the 86-contract labour including the Petitioner engaged by the 3rd Respondent between the

period of contract, i.e., 16th August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and

(Annexure 20) is the photo identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon

completion of the work contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and

terminal benefits upon the completion of the work contract, as contracted and settled under (annexure 11) between the

second and 3rd Respondents for executing the work contract of the first Respondent and Petitioner is entitled to

receive retrenchment allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The

Petitioner is unskilled and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay

for 845 working days, amounting to Rs. 78,520.00ps Since both third Respondent as well as the 2nd Respondent

failed to pay the terminal benefits upon the completion of the work contract on 15th August 2012, Petitioner workman

demanded the legal dues with interest from all Respondent collectively, but they did not pay. Further, it is submitted

that after a lapse of nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make

all the labour benefits payments directly to the workman such of that amount to be cleared against the work contract

dated

12th September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent.

1st Respondent acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter

(annexure 6) dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and

1st Respondent acknowledged the same, but it was in vain. Further, it is averred that the 2nd Respondent, vide

(annexure 5) dated 12th January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

453

Petitioner contract labour and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all

the contract labour including Petitioner made representation through their union before the Regional Labour

Commissioner Central Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July

2015. The concerned authority issued notices to all Respondents, but no relief was granted to the workman.

Therefore, Petitioner has moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues

from Respondent. Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract

labour vide (Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract

Labour (Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with

interest at the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against

2nd Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work. 1st

Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September 2009,

approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter dated

15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-contractor does

not establish any contractual relationship between the sub-contractor Rishita Associates and Respondent No.1

Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved from the

Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract labour

are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was

completed on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the 1st

Respondent/RINL processed the bill exparte. Respondent contended that as directions issued by the Income Tax

Authorities to the Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as

dues to be paid to the Income Tax Department from the pending bills of the second Respondent/contractor M/s

Midfield Industries and accordingly, this Respondent deducted appropriate amount and paid to the Income Tax

Department. Further, Respondent contended that the terminal benefit claimed by the Petitioner does not form part of

wages and, as such the contractor as a direct employer is legally responsible to make all other payments if any to the

Petitioner. Therefore, the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

454

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No.3

submits that Respondent contractors have not terminated or retrenched the services of workers at any point in respect

of the said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

455

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No. 3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages

to him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from

16th August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012."

Further, MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of

labour for the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the

request of R1 has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-.

It is true that after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the

amount equivalent to the full and final amount as a special case by making partial modifications to the agreement

between it and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and

the date of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and

final payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.78,520.00ps. along with the interest for the work under contract is

not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable of

being computed in terms of money, and if any question arises as to the amount of money due or as to the amount

at which such benefit should be computed, then the question may, subject to any rules that may be wait under

this act, be decided by such labour court as may be specified in this behalf by the appropriate government within

a period of not exceeding three month."

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner is

entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

both the petition. It is settled law that the rule of evidence Act do not apply strictly to the matter under I.D. Act.

Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in support of claim

of Petitioner. In this context Petitioner has filed documents in evidence which has been exhibited by witness

WW1.The perusal of these document reveals that the document Ex. W1 is the form of certificate issued by principal

456

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

employer i.e., Deputy General Manager Visakhapatnam Steel Plant, Visakhapatnam to the effect that it has engaged

M/s. Midfield industries Ltd Respondent No.2 for the work of strapping of mill product in WRM as contractor at

Steel Plant, Visakhapatnam vide certificate dated 14th August 2009. Further, Document Ex. W8 is the letter dated

15th September 2009, issued by AGM works contract of Respondent No.1 addressed to M/s. Midfield Industries

Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009- 10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on

M's Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging

M/s. Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the

order under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No. 3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-

contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are

mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.78,520.00ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at Sl. No. 21 and

against his name the total number of working days 845 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl. No. 21 name of the Petitioner, Sri P.

Appanna, unskilled workman is recorded and against his name amount due towards full and final amount is shown as

Rs.78,520.00ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General Manager

Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment directly which

is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th August 2009 to 15th August

2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent No.1 by Respondent No.2 for

release of amount equivalent to full and final benefit due to contract labour. Thus, ongoing oral and documentary

evidence produced by the Petitioner, it is established that Petitioner was engaged by the Respondent No.3 as contract

labour for the work of Respondent No.1 on behalf of Respondent No.2 during the period from 12.8.2009 to 12.8.2012

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

457

and he is entitled to receive Rs. 78,520.00ps. towards full and final payment as terminal benefit from Respondent

No.3 as per terms of contract Ex. W8, Ex. W9, and Ex. W12. Further, it is established that Petitioner was engaged

for work by Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to 15.8.2012 to work in industry

of R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, ongoing oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.78,520.00ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No. 1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by 2nd

Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to the

workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and relevant

evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence. Moreover,

the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder, therefore,

burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he failed to

discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No. 2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated

10th March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

458

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

459

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No.3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service w.e.f

16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No. 2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 is allowed.

460

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 78,520.00ps. to the Petitioner within 30 days from the date of this

order Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of due

i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to

Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this

the 19th day of December 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri P. Appanna

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

Ex.W3:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10: Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11: Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

Ex.W12: Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13: Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14:

Photostat copy of Undertaking given to 2nd Respondent by 1st

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

461

Respondent dt: 29.07.2011.

Ex.W15: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512814 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6:

Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

का.आ. 70.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

राष्ट्रीय इस्ट्पात जनगम जलजमट जविाखापत्तनम स्ट्टील प्लांट; जमडफील्ड इंडस्ट्रीज जलजमटेड; मेससा ऋजषता एसोजसएट्स के

प्रबंधतंत्र के संबद्ध जनयोजकों और श्री ओ. पल्लजया के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण एवं श्रम

न्यायालय, हजदराबाद, पंचाट (ररफरेन्स न.- एमपी 42/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित करती

हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-33]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 70.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 42/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

462

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri O. Pallayya which was received along with soft copy of the award by the Central

Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-33]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Presiding Officer

Dated the 19th day of December 2025

M.P. No. 42/2017

Between:

O. Pallayya,

S/o. O. Yerrayya,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

….Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 for the recovery of the amount Rs. 84,002.46ps with regard to legitimate dues of full

and final payments including retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

463

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that

1st Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the

2nd Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and

3rd Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further,

it is averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated

12th September 2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent

accepted the work contract initially for a period of 24 months from 16th August 2009, and later it was extended for

another 12 months, vide letter dated 17th October 2012, confirming the work contract extension up to 15th August

2012, by (Annexure 8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as

contact labour upon receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent

vide agreement between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated

12th September 2009. According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield

Industries Limited," and 3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August

2009, and same is binding agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the

claim application for the recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has

contended that Annexure-20 confirms that the 3rd Respondent Rishita Associates, received photo gate pass under

(Annexure 11) in favour of the 86-contract labour including the Petitioner engaged by the 3rd Respondent between the

period of contract, i.e., 16th August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and

(Annexure 20) is the photo identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon

completion of the work contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and

terminal benefits upon the completion of the work contract, as contracted and settled under (annexure 11) between the

second and 3rd Respondents for executing the work contract of the first Respondent and Petitioner is entitled to

receive retrenchment allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The

Petitioner is unskilled and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay

for 904 working days, amounting to Rs. 84,002.46ps Since both third Respondent as well as the 2nd Respondent

failed to pay the terminal benefits upon the completion of the work contract on 15th August 2012, Petitioner workman

demanded the legal dues with interest from all Respondent collectively, but they did not pay. Further, it is submitted

that after a lapse of nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make

all the labour benefits payments directly to the workman such of that amount to be cleared against the work contract

dated 12th September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent.

1st Respondent acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter

(annexure 6) dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and

1st Respondent acknowledged the same, but it was in vain. Further, it is averred that the 2nd Respondent, vide

(annexure 5) dated 12th January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the

Petitioner contract labour and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all

the contract labour including Petitioner made representation through their union before the Regional Labour

Commissioner Central Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July

2015. The concerned authority issued notices to all Respondents, but no relief was granted to the workman.

Therefore, Petitioner has moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues

from Respondent. Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract

labour vide (Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract

Labour (Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with

interest at the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against 2nd

Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work. 1st

Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September 2009,

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[PART II—SEC. 3(ii)]

approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter dated

15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-contractor does

not establish any contractual relationship between the sub-contractor Rishita Associates and Respondent No.1

Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved from the

Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract labour

are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was completed

on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the 1st Respondent/RINL

processed the bill exparte. Respondent contended that as directions issued by the Income Tax Authorities to the

Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as dues to be paid to

the Income Tax Department from the pending bills of the second Respondent/contractor M/s Midfield Industries and

accordingly, this Respondent deducted appropriate amount and paid to the Income Tax Department. Further,

Respondent contended that the terminal benefit claimed by the Petitioner does not form part of wages and, as such the

contractor as a direct employer is legally responsible to make all other payments if any to the Petitioner. Therefore,

the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No.3

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

465

submits that Respondent contractors have not terminated or retrenched the services of workers at any point in respect

of the said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No. 3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages

to him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

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THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from

16th August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012."

Further, MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of

labour for the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the

request of R1 has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-.

It is true that after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the

amount equivalent to the full and final amount as a special case by making partial modifications to the agreement

between it and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and

the date of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and

final payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.84,002.46ps. along with the interest for the work under contract is

not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable of

being computed in terms of money, and if any question arises as to the amount of money due or as to the amount

at which such benefit should be computed, then the question may, subject to any rules that may be wait under

this act, be decided by such labour court as may be specified in this behalf by the appropriate government within

a period of not exceeding three month."

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner is

entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1

in evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as

evidence of Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment

and evidence in both the petition. It is settled law that the rule of evidence Act do not apply strictly to the matter

under I.D. Act. Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition

in support of claim of Petitioner. In this context Petitioner has filed documents in evidence which has been

exhibited by witness WW1.The perusal of these document reveals that the document Ex. W1 is the form of

certificate issued by principal employer i.e., Deputy General Manager Visakhapatnam Steel Plant,

Visakhapatnam to the effect that it has engaged M/s. Midfield industries Ltd Respondent No.2 for the work of

strapping of mill product in WRM as contractor at Steel Plant, Visakhapatnam vide certificate dated 14th August

2009. Further, Document Ex. W8 is the letter dated 15th September 2009, issued by AGM works contract of

Respondent No.1 addressed to M/s. Midfield Industries Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009-10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

467

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on M's

Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging M/s.

Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the order

under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-

contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are

mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.84,002.46ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at Sl. No. 53 and

against his name the total number of working days 904 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl. No. 53 name of the Petitioner,

Sri O. Pallayya, unskilled workman is recorded and against his name amount due towards full and final amount is

shown as Rs.84,002.46ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General

Manager Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment

directly which is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th August

2009 to 15th August 2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent No.1 by

Respondent No.2 for release of amount equivalent to full and final benefit due to contract labour. Thus, ongoing oral

and documentary evidence produced by the Petitioner, it is established that Petitioner was engaged by the Respondent

No.3 as contract labour for the work of Respondent No.1 on behalf of Respondent No.2 during the period from

12.8.2009 to 12.8.2012 and he is entitled to receive Rs. 84,002.46ps. towards full and final payment as terminal

benefit from Respondent No.3 as per terms of contract Ex. W8, Ex. W9, and Ex. W12. Further, it is established that

Petitioner was engaged for work by Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to

15.8.2012 to work in industry of R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, ongoing oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.84,002.46ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No.1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

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THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by

2nd Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to

the workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and

relevant evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence.

Moreover, the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder,

therefore, burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he

failed to discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated 10th

March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

469

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No.3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

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[PART II—SEC. 3(ii)]

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service w.e.f

16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No.2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 84,002.46ps. to the Petitioner within 30 days from the date of this

order Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of due

i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this the

19th day of December 2025.

IRFAN QAMAR Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri O. Pallayya

MW1: Sri Bammadi Joga Rao

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

471

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

Ex.W3: Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10: Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11: Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

Ex.W12:

Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13: Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14: Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

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THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512814 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6:

Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

का.आ. 71.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

राष्ट्रीय इस्ट्पात जनगम जलजमट जविाखापत्तनम स्ट्टील प्लांट; जमडफील्ड इंडस्ट्रीज जलजमटेड; मेससा ऋजषता एसोजसएट्स के

प्रबंधतंत्र के संबद्ध जनयोजकों और श्री वी. सुररबाबू के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण एवं श्रम

न्यायालय, हजदराबाद, पंचाट (ररफरेन्स न.- एमपी 43/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित करती

हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-34]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 71.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 43/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri V. Suribabu which was received along with soft copy of the award by the Central

Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-34]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Presiding Officer

Dated the 19th day of December 2025

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

473

M.P. No. 43/2017

Between:

V. Suribabu,

S/o. V. Buchi Raju,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

….Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 for the recovery of the amount Rs. 83,352.10ps with regard to legitimate dues of full

and final payments including retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that

1st Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the

2nd Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and

3rd Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further,

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[PART II—SEC. 3(ii)]

it is averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated

12th September 2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent

accepted the work contract initially for a period of 24 months from 16th August 2009, and later it was extended for

another 12 months, vide letter dated 17th October 2012, confirming the work contract extension up to 15th August

2012, by (Annexure 8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as

contact labour upon receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent

vide agreement between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated

12th September 2009. According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield

Industries Limited," and 3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August

2009, and same is binding agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the

claim application for the recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has

contended that Annexure-20 confirms that the 3rd Respondent Rishita Associates, received photo gate pass under

(Annexure 11) in favour of the 86-contract labour including the Petitioner engaged by the 3rd Respondent between the

period of contract, i.e., 16th August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and

(Annexure 20) is the photo identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon

completion of the work contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and

terminal benefits upon the completion of the work contract, as contracted and settled under (annexure 11) between the

second and 3rd Respondents for executing the work contract of the first Respondent and Petitioner is entitled to

receive retrenchment allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The

Petitioner is unskilled and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay

for 897 working days, amounting to Rs. 83,352.10ps Since both third Respondent as well as the 2nd Respondent

failed to pay the terminal benefits upon the completion of the work contract on 15th August 2012, Petitioner workman

demanded the legal dues with interest from all Respondent collectively, but they did not pay. Further, it is submitted

that after a lapse of nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make

all the labour benefits payments directly to the workman such of that amount to be cleared against the work contract

dated 12th September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent.

1st Respondent acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter

(annexure 6) dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and

1st Respondent acknowledged the same, but it was in vain. Further, it is averred that the 2nd Respondent, vide

(annexure 5) dated 12th January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the

Petitioner contract labour and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all

the contract labour including Petitioner made representation through their union before the Regional Labour

Commissioner Central Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July

2015. The concerned authority issued notices to all Respondents, but no relief was granted to the workman.

Therefore, Petitioner has moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues

from Respondent. Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract

labour vide (Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract

Labour (Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with

interest at the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against 2nd

Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work.

1st Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September

2009, approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter

dated 15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-

contractor does not establish any contractual relationship between the sub-contractor Rishita Associates and

Respondent No.1 Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved

from the Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract

labour are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

475

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was

completed on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the

1st Respondent/RINL processed the bill exparte. Respondent contended that as directions issued by the Income Tax

Authorities to the Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as

dues to be paid to the Income Tax Department from the pending bills of the second Respondent/contractor

M/s Midfield Industries and accordingly, this Respondent deducted appropriate amount and paid to the Income Tax

Department. Further, Respondent contended that the terminal benefit claimed by the Petitioner does not form part of

wages and, as such the contractor as a direct employer is legally responsible to make all other payments if any to the

Petitioner. Therefore, the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No.3 submits

that Respondent contractors have not terminated or retrenched the services of workers at any point in respect of the

said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

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[PART II—SEC. 3(ii)]

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No.3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages

to him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from

16th August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012."

Further, MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of

labour for the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the

request of R1 has released the part payment to R3 and R1 has released the same to R2, an amount of Rs. 28,58,522/-.

It is true that after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

477

amount equivalent to the full and final amount as a special case by making partial modifications to the agreement

between it and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and

the date of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and

final payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.83,352.10ps. along with the interest for the work under contract is

not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable

of being computed in terms of money, and if any question arises as to the amount of money due or as to the

amount at which such benefit should be computed, then the question may, subject to any rules that may be

wait under this act, be decided by such labour court as may be specified in this behalf by the appropriate

government within a period of not exceeding three month."

12.

Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner

is entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

both the petition. It is settled law that the rule of evidence Act do not apply strictly to the matter under I.D. Act.

Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in support of claim

of Petitioner. In this context Petitioner has filed documents in evidence which has been exhibited by witness

WW1.The perusal of these document reveals that the document Ex. W1 is the form of certificate issued by principal

employer i.e., Deputy General Manager Visakhapatnam Steel Plant, Visakhapatnam to the effect that it has engaged

M/s. Midfield industries Ltd Respondent No.2 for the work of strapping of mill product in WRM as contractor at

Steel Plant, Visakhapatnam vide certificate dated 14th August 2009. Further, Document Ex. W8 is the letter dated

15th September 2009, issued by AGM works contract of Respondent No.1 addressed to M/s. Midfield Industries

Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009-10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on

M's Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

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[PART II—SEC. 3(ii)]

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging M/s.

Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the order

under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-

contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are

mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.83,352.10ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at Sl. No. 12 and

against his name the total number of working days 897 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl. No. 12 name of the Petitioner, Sri V.

Suribabu, unskilled workman is recorded and against his name amount due towards full and final amount is shown as

Rs.83,352.10ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General Manager

Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment directly which

is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th August 2009 to 15th August

2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent No.1 by Respondent No.2 for

release of amount equivalent to full and final benefit due to contract labour. Thus, ongoing oral and documentary

evidence produced by the Petitioner, it is established that Petitioner was engaged by the Respondent No.3 as contract

labour for the work of Respondent No.1 on behalf of Respondent No.2 during the period from 12.8.2009 to 12.8.2012

and he is entitled to receive Rs. 83,352.10ps. towards full and final payment as terminal benefit from Respondent

No.3 as per terms of contract Ex. W8, Ex. W9, and Ex. W12. Further, it is established that Petitioner was engaged

for work by Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to 15.8.2012 to work in industry

of R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, ongoing oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.83,352.10ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No.1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by

2nd Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to

the workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and

relevant evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence.

Moreover, the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder,

therefore, burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

479

failed to discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated 10th

March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

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[PART II—SEC. 3(ii)]

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No. 3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service

w.e.f 16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

481

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No.2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 83,352.10ps. to the Petitioner within 30 days from the date of this

order Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of due

i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this the

19th day of December 2025.

IRFAN QAMAR Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri V. Suribabu

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

Ex.W3:

Photostat copy of union representation before Regional Labour

482

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10: Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11: Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

Ex.W12: Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13: Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14: Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

483

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512814 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6:

Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

का.आ. 72.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

राष्ट्रीय इस्ट्पात जनगम जलजमट जविाखापत्तनम स्ट्टील प्लांट; जमडफील्ड इंडस्ट्रीज जलजमटेड; मेससा ऋजषता एसोजसएट्स के

प्रबंधतंत्र के संबद्ध जनयोजकों और श्री सीएच. सूरी बाबू के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण

एवं श्रम न्यायालय, हजदराबाद, पंचाट (ररफरेन्स न.- एमपी 44/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित

करती हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-35]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 72.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 44/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri CH. Suri babu which was received along with soft copy of the award by the

Central Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-35]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Presiding Officer

Dated the 22nd day of December 2025

M.P. No. 44/2017

Between:

CH. Suri babu,

S/o. Appa Rao,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

…. Petitioner

And

1. Chairman & Managing Director

484

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 for the recovery of the amount Rs. 81,586.46ps with regard to legitimate dues of full

and final payments including retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that

1st Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the

2nd Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and

3rd Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further,

it is averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated

12th September 2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent

accepted the work contract initially for a period of 24 months from 16th August 2009, and later it was extended for

another 12 months, vide letter dated 17th October 2012, confirming the work contract extension up to 15th August

2012, by (Annexure 8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as

contact labour upon receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent

vide agreement between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated

12th September 2009. According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield

Industries Limited," and 3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August

2009, and same is binding agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the

claim application for the recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has

contended that Annexure-20 confirms that the 3rd Respondent Rishita Associates, received photo gate pass under

(Annexure 11) in favour of the 86-contract labour including the Petitioner engaged by the 3rd Respondent between the

period of contract, i.e., 16th August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and

(Annexure 20) is the photo identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon

completion of the work contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and

terminal benefits upon the completion of the work contract, as contracted and settled under (annexure 11) between the

second and 3rd Respondents for executing the work contract of the first Respondent and Petitioner is entitled to

receive retrenchment allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

485

Petitioner is unskilled and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay

for 878 working days, amounting to Rs. 81,586.46ps Since both third Respondent as well as the 2nd Respondent

failed to pay the terminal benefits upon the completion of the work contract on 15th August 2012, Petitioner workman

demanded the legal dues with interest from all Respondent collectively, but they did not pay. Further, it is submitted

that after a lapse of nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make

all the labour benefits payments directly to the workman such of that amount to be cleared against the work contract

dated 12th September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent. 1st

Respondent acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter

(annexure 6) dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and 1st

Respondent acknowledged the same, but it was in vain. Further, it is averred that the 2nd Respondent, vide (annexure

5) dated 12th January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the Petitioner

contract labour and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all the

contract labour including Petitioner made representation through their union before the Regional Labour

Commissioner Central Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July

2015. The concerned authority issued notices to all Respondents, but no relief was granted to the workman.

Therefore, Petitioner has moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues

from Respondent. Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract

labour vide (Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract

Labour (Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with

interest at the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against 2nd

Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work.

1st Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September

2009, approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter

dated 15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-

contractor does not establish any contractual relationship between the sub-contractor Rishita Associates and

Respondent No.1 Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved

from the Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract

labour are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was completed

on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the 1st Respondent/RINL

processed the bill exparte. Respondent contended that as directions issued by the Income Tax Authorities to the

Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as dues to be paid to

486

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

the Income Tax Department from the pending bills of the second Respondent/contractor M/s Midfield Industries and

accordingly, this Respondent deducted appropriate amount and paid to the Income Tax Department. Further,

Respondent contended that the terminal benefit claimed by the Petitioner does not form part of wages and, as such the

contractor as a direct employer is legally responsible to make all other payments if any to the Petitioner. Therefore,

the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No. 3 submits

that Respondent contractors have not terminated or retrenched the services of workers at any point in respect of the

said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

487

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No.3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No. 2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages

to him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from

16th August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012."

Further, MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of

labour for the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the

request of R1 has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-.

It is true that after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the

amount equivalent to the full and final amount as a special case by making partial modifications to the agreement

between it and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and

the date of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and

final payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.81,586.46ps. along with the interest for the work under contract is

not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable of

being computed in terms of money, and if any question arises as to the amount of money due or as to the amount

at which such benefit should be computed, then the question may, subject to any rules that may be wait under

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[PART II—SEC. 3(ii)]

this act, be decided by such labour court as may be specified in this behalf by the appropriate government within

a period of not exceeding three month."

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner is

entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

both the petition. It is settled law that the rule of evidence Act do not apply strictly to the matter under I.D. Act.

Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in support of claim

of Petitioner. In this context Petitioner has filed documents in evidence which has been exhibited by witness

WW1.The perusal of these document reveals that the document Ex. W1 is the form of certificate issued by principal

employer i.e., Deputy General Manager Visakhapatnam Steel Plant, Visakhapatnam to the effect that it has engaged

M/s. Midfield industries Ltd Respondent No.2 for the work of strapping of mill product in WRM as contractor at

Steel Plant, Visakhapatnam vide certificate dated 14th August 2009. Further, Document Ex. W8 is the letter dated

15th September 2009, issued by AGM works contract of Respondent No.1 addressed to M/s. Midfield Industries

Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009-10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on

M's Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging M/s.

Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the order

under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-

contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are

mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.81,586.46ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

489

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at Sl. No. 3 and

against his name the total number of working days 878 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl. No. 3 name of the Petitioner,

Sri Ch. Suribabu, unskilled workman is recorded and against his name amount due towards full and final amount is

shown as Rs.81,586.46ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General

Manager Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment

directly which is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th August

2009 to 15th August 2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent No.1 by

Respondent No.2 for release of amount equivalent to full and final benefit due to contract labour. Thus, ongoing oral

and documentary evidence produced by the Petitioner, it is established that Petitioner was engaged by the Respondent

No.3 as contract labour for the work of Respondent No.1 on behalf of Respondent No.2 during the period from

12.8.2009 to 12.8.2012 and he is entitled to receive Rs. 81,586.46ps. towards full and final payment as terminal

benefit from Respondent No.3 as per terms of contract Ex. W8, Ex. W9, and Ex. W12. Further, it is established that

Petitioner was engaged for work by Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to

15.8.2012 to work in industry of R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, ongoing oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.81,586.46ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No. 1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by 2nd

Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to the

workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and relevant

evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence. Moreover,

the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder, therefore,

burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he failed to

discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated 10th

March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

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[PART II—SEC. 3(ii)]

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

491

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No.3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service w.e.f

16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

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[PART II—SEC. 3(ii)]

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No.2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 81,586.46ps. to the Petitioner within 30 days from the date of this

order Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of due

i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to

Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this

the 22nd day of December 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri CH. Suri babu

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

Ex.W3:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

[भाग II—खण् ड 3(ii)]

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493

Ex.W10: Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11: Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

Ex.W12: Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13: Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14: Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512814 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6:

Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

494

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

नई ददल्ली, 14 जनवरी, 2026

का.आ. 73.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

राष्ट्रीय इस्ट्पात जनगम जलजमट जविाखापत्तनम स्ट्टील प्लांट; जमडफील्ड इंडस्ट्रीज जलजमटेड; मेससा ऋजषता एसोजसएट्स के

प्रबंधतंत्र के संबद्ध जनयोजकों और श्री एम.सी. नायडू के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण एवं

श्रम न्यायालय, हजदराबाद, पंचाट (ररफरेन्स न.- एमपी 45/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित

करती हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-36]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 73.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 45/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri M.C. Naidu which was received along with soft copy of the award by the Central

Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-36]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Presiding Officer

Dated the 22nd day of December 2025

M.P. No. 45/2017

Between:

M.C. Naidu,

S/o. M. Appala Naidu,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

…. Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

495

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 for the recovery of the amount Rs. 83,816.62ps with regard to legitimate dues of full

and final payments including retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that

1st Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the

2nd Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and

3rd Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further,

it is averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated

12th September 2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent

accepted the work contract initially for a period of 24 months from 16th August 2009, and later it was extended for

another 12 months, vide letter dated 17th October 2012, confirming the work contract extension up to 15th August

2012, by (Annexure 8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as

contact labour upon receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent

vide agreement between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated

12th September 2009. According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield

Industries Limited," and 3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August

2009, and same is binding agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the

claim application for the recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has

contended that Annexure-20 confirms that the 3rd Respondent Rishita Associates, received photo gate pass under

(Annexure 11) in favour of the 86-contract labour including the Petitioner engaged by the 3rd Respondent between the

period of contract, i.e., 16th August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and

(Annexure 20) is the photo identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon

completion of the work contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and

terminal benefits upon the completion of the work contract, as contracted and settled under (annexure 11) between the

second and 3rd Respondents for executing the work contract of the first Respondent and Petitioner is entitled to

receive retrenchment allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The

Petitioner is unskilled and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay

for 902 working days, amounting to Rs. 83,816.62ps Since both third Respondent as well as the 2nd Respondent

failed to pay the terminal benefits upon the completion of the work contract on 15th August 2012, Petitioner workman

demanded the legal dues with interest from all Respondent collectively, but they did not pay. Further, it is submitted

that after a lapse of nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make

all the labour benefits payments directly to the workman such of that amount to be cleared against the work contract

496

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

dated 12th September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent.

1st Respondent acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter

(annexure 6) dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and 1st

Respondent acknowledged the same, but it was in vain. Further, it is averred that the 2nd Respondent, vide (annexure

5) dated 12th January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the Petitioner

contract labour and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all the

contract labour including Petitioner made representation through their union before the Regional Labour

Commissioner Central Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July

2015. The concerned authority issued notices to all Respondents, but no relief was granted to the workman.

Therefore, Petitioner has moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues

from Respondent. Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract

labour vide (Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract

Labour (Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with

interest at the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against

2nd Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work. 1st

Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September 2009,

approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter dated

15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-contractor does

not establish any contractual relationship between the sub-contractor Rishita Associates and Respondent No.1

Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved from the

Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract labour

are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was

completed on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the

1st Respondent/RINL processed the bill exparte. Respondent contended that as directions issued by the Income Tax

Authorities to the Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as

dues to be paid to the Income Tax Department from the pending bills of the second Respondent/contractor M/s

Midfield Industries and accordingly, this Respondent deducted appropriate amount and paid to the Income Tax

Department. Further, Respondent contended that the terminal benefit claimed by the Petitioner does not form part of

wages and, as such the contractor as a direct employer is legally responsible to make all other payments if any to the

Petitioner. Therefore, the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

497

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No.3

submits that Respondent contractors have not terminated or retrenched the services of workers at any point in respect

of the said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

498

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No.3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages

to him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from

16th August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012."

Further, MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of

labour for the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the

request of R1 has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-.

It is true that after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the

amount equivalent to the full and final amount as a special case by making partial modifications to the agreement

between it and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and

the date of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and

final payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.83,816.62ps. along with the interest for the work under contract is

not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable

of being computed in terms of money, and if any question arises as to the amount of money due or as to

the amount at which such benefit should be computed, then the question may, subject to any rules that

may be wait under this act, be decided by such labour court as may be specified in this behalf by the

appropriate government within a period of not exceeding three month."

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner is

entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

499

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

both the petition. It is settled law that the rule of evidence Act do not apply strictly to the matter under I.D. Act.

Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in support of claim

of Petitioner. In this context Petitioner has filed documents in evidence which has been exhibited by witness

WW1.The perusal of these document reveals that the document Ex. W1 is the form of certificate issued by principal

employer i.e., Deputy General Manager Visakhapatnam Steel Plant, Visakhapatnam to the effect that it has engaged

M/s. Midfield industries Ltd Respondent No.2 for the work of strapping of mill product in WRM as contractor at

Steel Plant, Visakhapatnam vide certificate dated 14th August 2009. Further, Document Ex. W8 is the letter dated

15th September 2009, issued by AGM works contract of Respondent No.1 addressed to M/s. Midfield Industries

Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009-10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on

M's Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging M/s.

Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the order

under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-

contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are

mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.83,816.62ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at Sl. No. 10 and

against his name the total number of working days 902 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl. No. 10 name of the Petitioner, Sri M.C.

Naidu, unskilled workman is recorded and against his name amount due towards full and final amount is shown as

Rs.83,816.62ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General Manager

Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment directly which

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THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th August 2009 to 15th August

2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent No.1 by Respondent No.2 for

release of amount equivalent to full and final benefit due to contract labour. Thus, ongoing oral and documentary

evidence produced by the Petitioner, it is established that Petitioner was engaged by the Respondent No.3 as contract

labour for the work of Respondent No.1 on behalf of Respondent No.2 during the period from 12.8.2009 to 12.8.2012

and he is entitled to receive Rs. 83,816.62ps. towards full and final payment as terminal benefit from Respondent

No.3 as per terms of contract Ex. W8, Ex. W9, and Ex. W12. Further, it is established that Petitioner was engaged

for work by Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to 15.8.2012 to work in industry

of R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, ongoing oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.83,816.62ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No. 1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by 2nd

Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to the

workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and relevant

evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence. Moreover,

the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder, therefore,

burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he failed to

discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated 10th

March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

501

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

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[PART II—SEC. 3(ii)]

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No.3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service

w.e.f 16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No.2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

503

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 83,816.62ps. to the Petitioner within 30 days from the date of this

order Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of due

i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this the

22nd day of December 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri M.C. Naidu

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

Ex.W3:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10: Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11: Photostat copy of agreement between 2nd and 3rd Respondent

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THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

(Basis of Claim) dt: 16.8.2009.

Ex.W12: Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13:

Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14:

Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15:

Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512814 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6:

Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

505

का.आ. 74.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

राष्ट्रीय इस्ट्पात जनगम जलजमट जविाखापत्तनम स्ट्टील प्लांट; जमडफील्ड इंडस्ट्रीज जलजमटेड; मेससा ऋजषता एसोजसएट्स के

प्रबंधतंत्र के संबद्ध जनयोजकों और श्री एस. जनादान राव के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण

एवं श्रम न्यायालय, हजदराबाद, पंचाट (ररफरेन्स न.- एमपी 46/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित

करती हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-37]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 74.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 46/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri S. Janardhan Rao which was received along with soft copy of the award by the

Central Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-37]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Presiding Officer

Dated the 22nd day of December 2025

M.P. No. 46/2017

Between:

S. Janardhan Rao,

S/o S. Narasinga Rao,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

…. Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

506

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Plot No.6, Phase-IV Extn. I.D.A.

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 for the recovery of the amount Rs. 79,356.31ps with regard to legitimate dues of full

and final payments including retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that 1st

Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the 2nd

Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and 3rd

Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further, it is

averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated 12th September

2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent accepted the work

contract initially for a period of 24 months from 16th August 2009, and later it was extended for another 12 months,

vide letter dated 17th October 2012, confirming the work contract extension up to 15th August 2012, by (Annexure

8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as contact labour upon

receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent vide agreement

between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated 12th September 2009.

According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield Industries Limited," and

3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August 2009, and same is binding

agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the claim application for the

recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has contended that Annexure-20

confirms that the 3rd Respondent Rishita Associates, received photo gate pass under (Annexure 11) in favour of the

86-contract labour including the Petitioner engaged by the 3rd Respondent between the period of contract, i.e., 16th

August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and (Annexure 20) is the photo

identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon completion of the work

contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and terminal benefits upon

the completion of the work contract, as contracted and settled under (annexure 11) between the second and 3rd

Respondents for executing the work contract of the first Respondent and Petitioner is entitled to receive retrenchment

allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The Petitioner is unskilled

and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay for 854 working days,

amounting to Rs. 79,356.31ps Since both third Respondent as well as the 2nd Respondent failed to pay the terminal

benefits upon the completion of the work contract on 15th August 2012, Petitioner workman demanded the legal dues

with interest from all Respondent collectively, but they did not pay. Further, it is submitted that after a lapse of

nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make all the labour

benefits payments directly to the workman such of that amount to be cleared against the work contract dated 12th

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507

September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent. 1st Respondent

acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter (annexure 6)

dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and 1st Respondent

acknowledged the same, but it was in vain. Further, it is averred that the 2nd Respondent, vide (annexure 5) dated 12th

January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the Petitioner contract labour

and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all the contract labour

including Petitioner made representation through their union before the Regional Labour Commissioner Central

Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July 2015. The concerned

authority issued notices to all Respondents, but no relief was granted to the workman. Therefore, Petitioner has

moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues from Respondent.

Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract labour vide

(Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract Labour

(Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with interest at

the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against 2nd

Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work. 1st

Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September 2009,

approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter dated

15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-contractor does

not establish any contractual relationship between the sub-contractor Rishita Associates and Respondent No.1

Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved from the

Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract labour

are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was

completed on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the

1st Respondent/RINL processed the bill exparte. Respondent contended that as directions issued by the Income Tax

Authorities to the Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as

dues to be paid to the Income Tax Department from the pending bills of the second Respondent/contractor

M/s Midfield Industries and accordingly, this Respondent deducted appropriate amount and paid to the Income Tax

Department. Further, Respondent contended that the terminal benefit claimed by the Petitioner does not form part of

wages and, as such the contractor as a direct employer is legally responsible to make all other payments if any to the

Petitioner. Therefore, the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

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[PART II—SEC. 3(ii)]

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No.3

submits that Respondent contractors have not terminated or retrenched the services of workers at any point in respect

of the said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

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509

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No.3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages

to him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from

16th August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012."

Further, MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of

labour for the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the

request of R1 has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-.

It is true that after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the

amount equivalent to the full and final amount as a special case by making partial modifications to the agreement

between it and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and

the date of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and

final payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.79,356.31ps. along with the interest for the work under contract is

not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable

of being computed in terms of money, and if any question arises as to the amount of money due or as to

the amount at which such benefit should be computed, then the question may, subject to any rules that

may be wait under this act, be decided by such labour court as may be specified in this behalf by the

appropriate government within a period of not exceeding three month."

12.

Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner

is entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

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[PART II—SEC. 3(ii)]

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

both the petition. It is settled law that the rule of evidence Act do not apply strictly to the matter under I.D. Act.

Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in support of claim

of Petitioner. In this context Petitioner has filed documents in evidence which has been exhibited by witness

WW1.The perusal of these document reveals that the document Ex. W1 is the form of certificate issued by principal

employer i.e., Deputy General Manager Visakhapatnam Steel Plant, Visakhapatnam to the effect that it has engaged

M/s. Midfield industries Ltd Respondent No.2 for the work of strapping of mill product in WRM as contractor at

Steel Plant, Visakhapatnam vide certificate dated 14th August 2009. Further, Document Ex. W8 is the letter dated

15th September 2009, issued by AGM works contract of Respondent No.1 addressed to M/s. Midfield Industries

Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009- 10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on M's

Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging M/s.

Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the order

under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-

contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are

mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.79,356.31ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at Sl. No. 27 and

against his name the total number of working days 854 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl. No. 27 name of the Petitioner, Sri S.

Janardhan Rao, unskilled workman is recorded and against his name amount due towards full and final amount is

shown as Rs.79,356.31ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General

[भाग II—खण् ड 3(ii)]

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511

Manager Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment

directly which is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th August

2009 to 15th August 2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent No.1 by

Respondent No.2 for release of amount equivalent to full and final benefit due to contract labour. Thus, ongoing oral

and documentary evidence produced by the Petitioner, it is established that Petitioner was engaged by the Respondent

No.3 as contract labour for the work of Respondent No.1 on behalf of Respondent No.2 during the period from

12.8.2009 to 12.8.2012 and he is entitled to receive Rs. 79,356.31ps. towards full and final payment as terminal

benefit from Respondent No.3 as per terms of contract Ex. W8, Ex. W9, and Ex. W12. Further, it is established that

Petitioner was engaged for work by Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to

15.8.2012 to work in industry of R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, ongoing oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.79,356.31ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No.1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by

2nd Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to

the workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and

relevant evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence.

Moreover, the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder,

therefore, burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he

failed to discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated

10th March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

512

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

513

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No.3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service

w.e.f 16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No.2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

514

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 79,356.31ps. to the Petitioner within 30 days from the date of this

order Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of due

i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this the

22nd day of December 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri S. Janardhan Rao

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

Ex.W3:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10:

Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

515

Ex.W11: Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

Ex.W12: Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13: Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14: Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512814 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6:

Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

516

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

नई ददल्ली, 14 जनवरी, 2026

का.आ. 75.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

राष्ट्रीय इस्ट्पात जनगम जलजमट जविाखापत्तनम स्ट्टील प्लांट; जमडफील्ड इंडस्ट्रीज जलजमटेड; मेससा ऋजषता एसोजसएट्स के

प्रबंधतंत्र के संबद्ध जनयोजकों और श्री एम.बी. मूर्तत के बीच अनुबंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण एवं

श्रम न्यायालय, हजदराबाद, पंचाट (ररफरेन्स न.- एमपी 47/2017) को जजसा दक अनुलग्नक में ददखाया गया हज, प्रकाजित

करती हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ था l

[सं. ज -16025/03/2026-आईआर( )-38]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 75.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. MP 47/2017) of the Central Government Industrial

Tribunal cum Labour Court, Hyderabad as shown in the Annexure, in the Industrial dispute between the

employers in relation to Rashtriya Ispat Nigam Limit Visakhapatnam Steel Plant; Midfield Industries Limited;

M/s Rishita Associates and Shri M.B. Murthy which was received along with soft copy of the award by the Central

Government on 14.01.2026.

[No. Z-16025/03/2026-IR(M)-38]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD

Present: -

Shri Irfan Qamar,

Presiding Officer

Dated the 22nd day of December 2025

M.P. No. 47/2017

Between:

M.B. Murthy,

S/o M. Sanni Babu,

Walzen Strips Pvt. Ltd., Wire Rod Mill-1,

Visakhapatnam Steel Plant,

Visakhapatnam – 530031.

…. Petitioner

And

1. Chairman & Managing Director

Rastriya Ispat Nigam Limit

Visakhapatnam Steel Plant,

Visakhapatnam – 530 031.

Andhra Pradesh.

2. Chairman & Managing Director,

Midfield Industries Limited

Plot No.6, Phase-IV Extn. I.D.A.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

517

Jeedimetla,

Hyderabad – 500 055 (Telangana)

3. M/s. Rishita Associates,

Rep. By Smt. J. Vijaya

Proprietrix,

Door No. 57-24-79/3,

Tummadapalem, Kancharapalem,

Visakhapatnam – 530008.

Andhra Pradesh.

…..

Respondents

Appearance:

For the Petitioner :

Sri B.V. Rao, Advocate

For the Respondent-I :

M/s. Saibaba & Srinivas, Advocates

For the Respondent -III:

Sri K. Appa Rao, Advocate

ORDER

This petition has been filed by the Petitioner against the Respondent Management under section 33-C (2) of

the Industrial Dispute Act 1947 for the recovery of the amount Rs. 62,444.31ps with regard to legitimate dues of full

and final payments including retrenchment allowances as per contract.

2.

Petitioner in his petition has averred that the 1st Respondent Visakhapatnam Steel Plant, got registered itself

as Principal Employer under Central Legislative Enactment, "Contract Labour (Regulation and Abolition) Act, 1970."

(Annexure 13) dated 14th August 2009, and (Annexure 14) dated 29th July 2011. The 2nd Respondent "Midfield

Industries Limited," is licensed contractor under the Contract Labour (Regulation and Abolition) Act, 1970, and copy

of the license is Annexure 17, dated 19th August 2009, confirming that the 2nd Respondent is licensed to work as a

contractor in the 1st Respondent industry establishment at Visakhapatnam. The 3rd Respondent "M/s Rishita

Associates," is also licensed contractor by Contract Labour (Regulation and Abolition) Act 1970, and the license

issued to the 3rd Respondent is (Annexure 15) dated 6th November 2000. Further, Petitioner has averred that

1st Respondent acknowledged and accepted the 3rd Respondent, Rishita Associates, as sub-contractor for the

2nd Respondent, Midfield Industries Limited, vide annexure 12, dated 15th September 2009. The 2nd Respondent and

3rd Respondent are licensed to work for the first Respondent, Visakhapatnam Steel Plant, at Visakhapatnam. Further,

it is averred that the 1st Respondent issued the work order to the 2nd Respondent vide work contract, dated

12th September 2009, under later of acceptance by the 2nd Respondent, vide (Annexure 7) and the 2nd Respondent

accepted the work contract initially for a period of 24 months from 16th August 2009, and later it was extended for

another 12 months, vide letter dated 17th October 2012, confirming the work contract extension up to 15th August

2012, by (Annexure 8). Further, Petitioner averred that the 2nd Respondent who engaged the Petitioner workmen as

contact labour upon receiving the work contract (Annexure 7), later shifted all contact labour to the 3rd Respondent

vide agreement between the 2nd and 3rd Respondents meant to execute work order of the 1st Respondent dated

12th September 2009. According to (Annexure 11) which is the agreement between the 2nd Respondent, "Midfield

Industries Limited," and 3rd Respondent, "Rishita Associates," dated 12.9.2009 for the work order dated 16th August

2009, and same is binding agreement/settlement between the 2nd and 3rd Respondents and is the foundation for the

claim application for the recovery of the arrears as settled under (Annexure 11) settlement. Further, Petitioner has

contended that Annexure-20 confirms that the 3rd Respondent Rishita Associates, received photo gate pass under

(Annexure 11) in favour of the 86-contract labour including the Petitioner engaged by the 3rd Respondent between the

period of contract, i.e., 16th August 2009, to 15th August 2012, for 36 months on behalf of the 2nd Respondent and

(Annexure 20) is the photo identity gate pass cancellation order issued by 1st Respondent for 86 contract labour upon

completion of the work contract. Further, it is averred that the Petitioner workmen are entitled to receive wages and

terminal benefits upon the completion of the work contract, as contracted and settled under (annexure 11) between the

second and 3rd Respondents for executing the work contract of the first Respondent and Petitioner is entitled to

receive retrenchment allowances for contract labour at the rate of "actual working days/26 x month" 8 days. The

Petitioner is unskilled and is entitled for the arrear of the amount due to words notice pay, service pay, and leave pay

for 672 working days, amounting to Rs. 62,444.31ps Since both third Respondent as well as the 2nd Respondent

failed to pay the terminal benefits upon the completion of the work contract on 15th August 2012, Petitioner workman

demanded the legal dues with interest from all Respondent collectively, but they did not pay. Further, it is submitted

that after a lapse of nearly 15 months, 2nd Respondent addressed a letter to the 1st Respondent (annexure 19) to make

all the labour benefits payments directly to the workman such of that amount to be cleared against the work contract

dated 12th September 2009, from pending amount due to the 2nd Respondent‘s account with the 1st Respondent.

518

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

1st Respondent acknowledged the letter, but no payment was made. Moreover, Petitioner union also addressed a letter

(annexure 6) dated 24th March 2014, directly to 1st Respondent to release all the contract labour legal dues, and

1st Respondent acknowledged the same, but it was in vain. Further, it is averred that the 2nd Respondent, vide

(annexure 5) dated 12th January 2015, addressed letter to the 1st Respondent requesting to settle all legal dues to the

Petitioner contract labour and 1st Respondent acknowledged the receipt of this letter but did not pay dues. Further, all

the contract labour including Petitioner made representation through their union before the Regional Labour

Commissioner Central Vishakhapatnam, vide (annexure 3) dated 19th August 2015, and (annexure 4) dated 20th July

2015. The concerned authority issued notices to all Respondents, but no relief was granted to the workman.

Therefore, Petitioner has moved this petition under section 33C (2) of the ID Act for recovery of his legitimate dues

from Respondent. Petitioner submitted that the 1st Respondent is legally bound to pay all the legal dues to the contract

labour vide (Annexure 13) the undertaking given by the 1st Respondent, and under section 21(4) of the Contract

Labour (Regulation and Abolition) Act 1970 and Petitioner is also entitled to receive all the legitimate dues with

interest at the rate of 18% per annum.

3.

Notice were issued to all Respondent. Respondent No.1 and Respondent No. 3 has filed their counter, but

Respondent No. 2 did not file any counter despite service of notice. Therefore, case is proceeding ex-parte against 2nd

Respondent.

4.

In response to notice Respondent No. 1 has filed counter and therein, he has contended that the petition filed

by the Petitioner is not maintainable and is liable to be dismissed in limine. Further, it is contended that this

Respondent awarded a contract to the 2nd Respondent, Midfield Industry Limited, Hyderabad, a licensed contractor

for the work of "strapping of mill products‖ vide work order No. VSP/WC/WRM/58485-0/OT/2009-10/8090000359

dated 12th August 2009, for the period of 24 month, commencing from 16th August 2009 to 15th August 2011. This

contract was further extended for another period of 12 months with effect from 16th August 2011 to 15th August 2012.

The 2nd Respondent contractor vide letter dated 12th August 2009, requested Respondent No. 1 to permit it to engage

M/s Rishita Associates, Vishakhapatnam, sub/contractor, for supply of the labour for the subject contract work.

1st Respondent considered request made by the 2nd Respondent-contractor and, vide its letter dated 15th September

2009, approved the engagement of M/s Rishita Associates by the 2nd Respondent as its sub-contractor. In the letter

dated 15th September 2009, 1st Respondent clearly mentioned that clearance approved by it for engaging sub-

contractor does not establish any contractual relationship between the sub-contractor Rishita Associates and

Respondent No.1 Vishakhapatnam Steel Plant. It was clarified further that 2nd Respondent contractor is not relieved

from the Contractual obligations, responsibilities, and liabilities, etc. Further, Respondent contended that 86 contract

labour are the contract labour of M/s Midfield Industries. The 2nd Respondent and as per the approval given by this

Respondent, 2nd Respondent has subcontracted the work awarded to it to the third Respondent Rishita Associates

vide Agreement Dt 16.8.2009 for execution of the work on behalf of the second Respondent/contractor and for

purpose of execution of the contract work on behalf of the main contractor/second Respondent gate passes were also

issued to the third Respondent/sub-contractor for the manpower engaged by it. As per the procedure, the gate passes

should be cancelled immediately when once the contract comes to an end and full and final amounts will be settled by

the contracting, agency, the second Respondent. Further, Respondent No. 2 should submit a proof to the Principal

Employer/RINI, claiming reimbursement of the same. Respondent contended that third Respondent/sub-

contractor/Rishita Associates had paid the wages to the contract labour for the total contract period after expiry of the

contract period with the second Respondent, and entire contract labour including the Petitioner herein continued to

work under a new contractor for the same work as the work of Strapping of Mill Products in WRM" is a continuous

process. Further, it is submitted that second Respondent/contractor/Mid Field Industries submitted a request to RINL

stating that it is entangled in income tax problems and requested to make payment in full and final due to its

contractor labour, from out of the amounts due to it and pending with RINL. Accordingly, after obtaining due

approvals and based on the amount due it was released by 1st Respondent/RINL to 2nd Respondent/contractor paid an

amount of Rs.28.58.522/- to the contract labour towards partial disbursement of terminal benefits. A copy of the

payment particulars to contract labour in enclosed herewith and Petitioner has been paid Rs. 33,272/- out of the

amount of Rs. 46,836/-. The 2nd Respondent/contractor addressed a Letter di 19.02.2014 requesting the Principal

Employer/RINL to release the amount equivalent to full and final amount as a special case by making partial

modifications to the agreement entered between it and 1st Respondent/RINL. Respondent made several reminders to

the second Respondent/ contractor to submit its final bill till February 2013. Though the contract work was

completed on 15.08.2012 but 2nd Respondent/contractor did not respond to the same therefore, the 1st

Respondent/RINL processed the bill exparte. Respondent contended that as directions issued by the Income Tax

Authorities to the Finance Department, this Respondent was supposed to deduct an amount of Rs 14,34,52,643/- as

dues to be paid to the Income Tax Department from the pending bills of the second Respondent/contractor M/s

Midfield Industries and accordingly, this Respondent deducted appropriate amount and paid to the Income Tax

Department. Further, Respondent contended that the terminal benefit claimed by the Petitioner does not form part of

wages and, as such the contractor as a direct employer is legally responsible to make all other payments if any to the

Petitioner. Therefore, the petition is devoid of any merit and not legally maintainable, and it is liable to be dismissed.

5.

Respondent No. 2 did not turn up despite service of notice and nor filed any counter. Therefore, case is

proceeding ex-parte against Respondent No. 2 vide order dated 20th September 2017 and being heard and decided

[भाग II—खण् ड 3(ii)]

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519

exparte.

6.

Respondent No. 3 has filed his counter and therein it is contended that the averments made by the Petitioner

in the petition are not true, valid, tenable, and petition filed by the Petitioner under section 33C(2) of the Industrial

Disputes Act is not maintainable under law, as no amount is due and payable by this Respondent to the Petitioner.

Further, Respondent No.3 contended that the first Respondent Rashtriya Ispat Nigam Limited/Visakhapatnam Steel

Plant vide its Work Order dated 12th September 2009 awarded a contract for the work of "Scrapping of Mill Products

in Wire Rod MHL to the second Respondent/Midfield Industries Limited, Hyderabad. Initially, contract period to

work was for 24 months from 16.08.2009 to 15.08 2011 and later on it was extended for further period of 12 months

commencing from 16.08.2011 to 15.08.2012. Further, it is contended that after obtaining approval from the first

Respondent/ RINL, 2nd Respondent/Midfield Industries Limited of labour to carry out the contract work entrusted the

work to Respondent No.3 on sub-contract basis i.e. for supply of contract labour between the first Respondent/RINL

and second Respondent, work on commission basis and this Respondent has no other role in respect of Midfield

Industries Ltd. While approving/permitting the second Respondent for giving the work to this Respondent on sub-

contract basis, the first Respondent has clearly stated in their Letter dt. 15.09.2009 that the permission for engaging

the sub-contractor does not establish or create between their Respondent and 2nd Respondent/Midfield Industries

Limited any contractual relationship or obligation between RINL and Respondent No. 2 is not relieved from the

contractual obligations, liabilities and other responsibilities and he is alone responsible for any claim. This clearly

establish that any dispute or claim by any third party, the first Respondent a Principal Employer and the Second

Respondent as main Contractor are liable/responsible, and this Respondent is not liable for any claim made by the

Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have

worked under the previous contract by name M/s. Walzen Strips Private Limited and on completion of contract period

of Mis Walzen Strips Private Limited on 15.08.2009 this work was awarded to the 2nd Respondent/Contractor and

thereafter to Respondent No.3 with prior approval of Respondent No.1 as mentioned in work order. This Respondent

was engaged as sub-contractor and after completion of the period of the Work Order dt. 16.08.2009 on 15.08.2012 the

obligations under sub-contract of the Respondent with the second Respondent came to end. Respondent No.3

submits that Respondent contractors have not terminated or retrenched the services of workers at any point in respect

of the said contract including the Petitioner herein and obligations on completion of the contract period does not arise.

Respondent contractors have no obligation and Petitioner is not entitled to claim retrenchment compensation as his

employment is still continuing under the subsequent contractors without any break in service. Further, it is contended

that first Respondent RINL continued the second Respondent/contractor under a fresh work order with effect from

16.08.2012 and contract labour including the Petitioner herein continued his services under the second

Respondent/contractor. Hence in case of any claim by any contract labour much less the claim made by the Petitioner,

it is for the first Respondent/RINL and the second Respondent/contractor to answer/respond the same and this

Respondent is no way concerned with the claim of the contract labour. Further, Respondent submitted that on

payment of amount made by the second Respondent/contractor, this Respondent paid the wages to all the contract

labour including the Petitioner herein within time for the entire contract period of three years. There are no arrears of

salary or any dues payable to the contract labour including the Petitioner herein. Further, it is contended that the first

Respondent/RINL during the period of contract work under the Work Order Dt.16.08.2009 deducted amounts from

time to time from RA Bill amounts payable to the second Respondent/contractor under the head of "Other recoveries"

pertaining to retrenchment compensation, etc. Therefore, in case of any legally valid claim for retrenchment

compensation raised by the contract labour, the first Respondent/RINL and the second Respondent/contractor are

responsible/liable to pay the same. Copy of a Running Account Bill Report Dt.11.08.10 and details of other recoveries

dt.11.08.2010 of the first Respondent/RINL are filed herewith and the same may be read as part of this Counter.

Further, it is submitted that the calculation made by the Petitioner for dues is not correct and binding and Petitioner is

not entitled to claim retrenchment compensation as their services were not terminated and they are still continuing

without any break under the new contractor. Therefore, prayed to dismiss the petition.

7.

Petitioner has also filed a rejoinder in response to the contention of the Respondent made in their counter

Petitioner submitted that no full and final settlements were made by any of the Respondents to date. Further, para 6

of the counter of Respondent No. 3 is the admission of the employment of contract labour including this Petitioner

between 16th August 2009 to 15th August 2012, and all contractual obligations are specifically required to be fulfilled

by the 3rd Respondent. Petitioner submits that the law enforced under section 21(4) of the Contract Labor

(Regulation & Abolition) Act, 1970 contemplate that it is the statutory duty of the principal employer to redeem the

losses on failure of the contractor to pay the due wages to the contract labour. Further, Petitioner submits that the

claim amount of this Petitioner is covered within the definition of clause H of wages of Section 2 of the Contract

Labour (Regulation & Abolition) Act, 1970. Further, it is submitted that the Respondent No.1 has admitted that they

changed the 3rd Respondent after the expiry of the contract period. Continuation of contract labour employment by

another contractor leads to the conclusion that the 1st Respondent (RINL) is implying the contract labour by changing

the contact at their will, and as such, changing of contract means that such contract is a form of ―Sham" mean to avoid

direct employment by the contractor. Further, it is submitted that the second Respondent never settled the claim of

final settlement. The Petitioner' monthly wages were directly credited to the Petitioner bank account, and Petitioner

insists proof of payment of full and final settlement. It is repeated that not a single rupee was paid to the Petitioner.

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[PART II—SEC. 3(ii)]

The copy of the payment particular brought on record is not a genuine document and is disputed altogether. Further, it

is contended that the averment made by the third Respondent that this Petitioner is continuing employment with

another contractor under RINL is sufficient proof that the Petitioner's employment with the 3rd Respondent has been

terminated, and third Respondent is bound to pay settlement terminal benefits. The averment that there is no break in

the service of the Petitioner since the Petitioner is continuing in the employment Respondent No. 1 is ridiculous.

Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.

8. In support of the averments made in the petition, Petitioner has examined himself as WW1 and in his chief

examination affidavit, witness has re-iterated the averments made in the petition for recovery of the terminal benefits

from Respondent WW1 has also exhibited documents Exhibit W1 to W22, Witness WW1 was cross-examined by

Respondent No. 1 as well as Respondent No. 3. In his cross-examination, this witness has stated that after completion

of the one contract work, he used to continue under subsequent contractor in the same Steel Plant till date. Further,

witness WW1 states that he has not received wages from the contractor after completion of the contract work period.

Further, in cross-examination, WW1 states that he is the contract worker and not an employee of Steel Plant. The

work has been awarded to the 2nd Respondent by Respondent No.1 and under the supervision of Respondent No.3

work was carried out by him within the premises of Steel Plant of Respondent No.1. Further, witness states that he is

working in the Steel Plant of Respondent No.1 under different contractors for the last 25 years. The 2nd Respondent

did his contract work for three years under Respondent No.1. Further, witness states that Respondent No.2 has

appointed him under Respondent No. 3 and he has not filed any document that well show that he has been appointed

by Respondent. Further, witness states that he has not filed any document to show that his services had been

terminated. Further, witness stated that at paragraph three of Exhibit-W2 it has been clearly stated that the entrustment

of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be

liable for any contractual obligations. It is not true to say that Respondent No.3 has paid amount to him on receipt

the amount from R2, and as such R2 is real contractor and R3 contractor is no way responsible to pay the wages

to him.

9.

On the other hand, Respondent No.1 has examined witness MW1 in support of his contention and in his

chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by

the Petitioner counsel and in cross-examination MW1 states that "It is true that R2 was given contract for the purpose

of strapping of mill product in the WRM department of R1 initially for a period of two years with effect from 16th

August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012." Further,

MW1 states "It is true that permission has been taken from R1 to give sub-contract to R3 for the supply of labour for

the same period. Sub-contact has been given to M/s. Rishita Associates (R3). It is true that R2 on the request of R1

has released the part payment to R3 and R1 has released the same to R2, an amount of Rs.28,58,522/-. It is true that

after completion of the work, a letter dated 19th February 2014 was addressed by R2 to R1 to release the amount

equivalent to the full and final amount as a special case by making partial modifications to the agreement between it

and R1." Further, Witness MW1 states that, "I am not aware of how much amount has been paid to R2 and the date

of release towards full and final payment." Further, MW1 states that "It is not true to suggest that full and final

payment was not made to R2 and as such I am not in a position to say the date and amount of release and hence

deposing false with regard to full and final payment.‖ Further, MW1 state that "it is not true to suggest that full and

final payment was made to R2 by R1 after completion of the work.‖ Further, he stated that it is true that he has not

filed any document in support of his contention made in his affidavit and evidence especially with regard to the

payment mentioned in para 8. Further, MW1 has admitted that he has not filed any documentary evidence to prove

his statement. Further, MW1 states that ―It is not true to suggest that the Petitioners are eligible for the payment of

total dues from R1 as claimed in the petition along with 24% interest."

10. Heard the argument of learned counsel for either parties.

11. Perused the record. At the outset, Respondent counsel urged that present petition filed by the Petitioner for the

recovery of full and final payment amounting to Rs.62,444.31ps. along with the interest for the work under contract is

not maintainable under section 33-C(2) of ID Act 1947 as there is no amount due to the Petitioner from Respondent.

Firstly, we have to examine provision contained under section 33 C (2) of the ID Act. Section 33 C (2) of ID Act

provides :-

"Where any workman is entitled to receive from the employer any money or any benefit which is capable

of being computed in terms of money, and if any question arises as to the amount of money due or as to

the amount at which such benefit should be computed, then the question may, subject to any rules that

may be wait under this act, be decided by such labour court as may be specified in this behalf by the

appropriate government within a period of not exceeding three month."

12. Thus, in view of provision contained u/s 33-C (2) we proceed to examine the question whether the Petitioner is

entitled to receive from employer any money or benefit which is capable of being computed in terms of money.

Petitioner has filed affidavit therein he has disposed that in MP. No. 2/2017 Co-workman has disposed as WW1 in

evidence and exhibited document W1 to W22. The evidence recorded in said petition may be treated as evidence of

Petitioner in this case including cross examination of WW1. Since Petitioner has similar averment and evidence in

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

521

both the petition. It is settled law that the rule of evidence Act do not apply strictly to the matter under I.D. Act.

Therefore, evidence recorded in MPNo.2-2017 is taken on record and considered in this Petition in support of claim

of Petitioner. In this context Petitioner has filed documents in evidence which has been exhibited by witness

WW1.The perusal of these document reveals that the document Ex. W1 is the form of certificate issued by principal

employer i.e., Deputy General Manager Visakhapatnam Steel Plant, Visakhapatnam to the effect that it has engaged

M/s. Midfield industries Ltd Respondent No.2 for the work of strapping of mill product in WRM as contractor at

Steel Plant, Visakhapatnam vide certificate dated 14th August 2009. Further, Document Ex. W8 is the letter dated

15th September 2009, issued by AGM works contract of Respondent No.1 addressed to M/s. Midfield Industries

Limited.

The contents of Ex. W8, is extracted here under: -

―Dear sir

Sub:- Strapping of Mill products in wire Rod Mill (T.no:58495-0)

Ref:- 1. Letter of Acceptance vide ref no: VSP/WC/WRM/58495-0/OT/2009- 10/8090000359 dt: 12/09/2009

2. Your letter dt: 21/08/2009

“1. This has reference to your letter under ref(2) above seeking approval for engaging M/s Rishita

Associates as your subcontractor for supply of labour for the subject work.

2. Your proposal has been considered and approval is hereby accorded for engaging M/s Rishitha! Associates as

your subcontractor for supply of labour for the subject work against the order license reference above. Your

subcontractor shall adhere to all statutory regulations like PF.

3. This clearance does not establish any contractual relationship between your subcontractor and the Employer

(RINL/VSP) and shall not relieve you from any of your obligations. responsibilities, liabilities etc, as per clause no

3.2 of General Conditions of Contract (GCC)

4. In this connection you are requested to kindly note the following points for compliance

a) To submit to VSP a copy of the kindly order/Letter of Intent placed by M's Midfield Industries Limited on

M's Rishita Associates

b) To submit performance details of M/s Rishita Associates including the value of work done with reference to the

above said W.O/LOL”

Thus, document Ex. W8, which has been proved by WW1 and admitted by Respondent No. 1 reveals that vide letter

dated 15th September 2009 Respondent No. 1 has approved the proposal of Respondent No. 2 for engaging M/s.

Rishitha Associates‘ Respondent No.3 as sub-contractor for supply of labour for the subject work against the order

under reference above this document. Therefore, according to Ex. W12 the supply of labour was to be made by

Respondent No.3 M/s. Rishitha Associates for the subject work and Respondent Rishitha Associates was the

employer contractor of the Petitioner workman. Further, document Ex. W10 is letter dated 28th November 2011

addressed to the Respondent No. 2-Midfield Industries Limited by the Respondent No. 1 for extension of time of

contract for the work up to 29th February 2012. Document Ex. W11 is letter addressed to Respondent No. 2 Midfield

industries by Respondent No.1 in reference to further extension of time of contract up to 15th August 2012.

Document Ex. W9 is the Note for the approval of final deviation for the work of ―Strapping of mills product in

WRM‖ of Respondent No. 1 and this work was awarded to M/s. Midfield Industries Respondent No.2. In the clause 6

it is mentioned that approved time extension period 12 months up to 15th August 2012. Further Ex. W12 is the

document wherein the terms of the payment/Mode of payment by M/s. Rishitha Associates as approved by VSP sub-

contractor, for Labour supply by the Respondent No.2 is mentioned. The terms of payment and mode of payment are

mentioned in the column of Retrenchment allowances for workers and the calculation has been shown as actual

working days/26 x month / 8 days. Thus, as per this calculation Petitioner has calculated his retrenchment allowances

to the tune of Rs.62,444.31ps. for the period of 3 years of his employment with Respondent No.3. Further, in the

agreement clause 7 it is mentioned that the agreement shall come into force on 16th August 2009 and shall be enforced

until the end of 15th August 2011. This time of contract was further extended up to 15th August 2012. Document

Ex. W14 is the statement showing actual working days of the contract labour including Petitioner and that has been

prepared and signed by Respondent No.2 Mid-field Industries, for the period from 16th August 2009 to 15th August

2012. The statement of actual working days goes to show that the Petitioner's name is mentioned at Sl. No. 22 and

against his name the total number of working days 672 has been recorded. Further, document Ex. W15 is the

statement of full and final amount calculation, and these details has been prepared and signed by the authorized

signatories of Respondent No.2. This document goes to show that at Sl. No. 22 name of the Petitioner, Sri M.B.

Murthy, unskilled workman is recorded and against his name amount due towards full and final amount is shown as

Rs.62,444.31ps Further, document Ex. W16 is the letter dated 3rd December 2013, addressed to the General Manager

Vishakhapatnam Steel Plant, Respondent No.1 by Respondent No.2 regarding labour benefit payment directly which

522

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[PART II—SEC. 3(ii)]

is to be cleared by Respondent No.2 in respect of contract labour for the period from 16th August 2009 to 15th August

2012. Similarly, documents Ex. W17 and W20 are the letters addressed to Respondent No.1 by Respondent No.2 for

release of amount equivalent to full and final benefit due to contract labour. Thus, ongoing oral and documentary

evidence produced by the Petitioner, it is established that Petitioner was engaged by the Respondent No.3 as contract

labour for the work of Respondent No.1 on behalf of Respondent No.2 during the period from 12.8.2009 to 12.8.2012

and he is entitled to receive Rs. 62,444.31ps. towards full and final payment as terminal benefit from Respondent

No.3 as per terms of contract Ex. W8, Ex. W9, and Ex. W12. Further, it is established that Petitioner was engaged

for work by Respondent No. 3 i.e., Rishitha Associates for the period from 16.8.2009 to 15.8.2012 to work in industry

of R-1 Principal Employer Rashtriya Ispat Nigam Ltd, Vishakpatnam Steel Plant.

13.

Although Respondent has contended that all the wages and dues towards the final settlement have been paid

to the Petitioner workman but in support of his contention Respondent has not filed any document to corroborate it.

Respondent No. 1 has also examined witness MW2 Sri K. Sudhakar Rao who has produced and exhibited document

Ex.M1 to Ex.M6 and states that Ex. M6 is showing the amount paid by 2nd Respondent to claimants but in cross

examination MW2 states that it is true that Ex.M6 relates to amount Rs. 28,58,522/- which is mentioned in para 5 of

chief statement of MW1 and he is not aware that Rs. 61,76,628/- is still balance due to be paid to workman. Thus, the

testimony of MW2 is not direct evidence in respect of payment of claimed amount in the petition, hence his evidence

is not relevant in this regard. Therefore, contention of the Respondent No.1 in this context is untenable for the want

of cogent and relevant evidence. Thus, ongoing oral and documentary evidence on record, it is established that the

Petitioner workman is entitled to receive from the employer Respondent No.3 the amount of Rs.62,444.31ps. for the

period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.

14.

Now, question arises that who is liable to pay the said retrenchment allowances to the Petitioner as per

contract. Admittedly, Petitioner workman was engaged by Respondent No.3 for the work of Respondent No.1.

Respondent No.1 has admitted that the Petitioner had worked in the work of Strapping Mills Products WRM in its

industry during the period from 16.8.2009 to 15.8.2012 as contract labour engaged by Respondent No.3. Since the

Respondent No. 3 was sub-contractor for labour supply for the work order Ex. W8 of Respondent No.2, therefore,

Respondent No.1, Respondent No.2 and Respondent No.3 are jointly and severally liable to pay retrenchment

allowances towards the full and final payment to the Petitioner as per contract. Although Respondent No.3 contended

that it has paid all the money due to the Petitioner, but Respondent No.3 has not produced any document to establish

that full and final payment as claimed by the Petitioner towards retrenchment allowances has been paid by 2nd

Respondent or 3rd Respondent. However, Respondent has filed photocopies of documents as proof of payment to the

workman by R-2. The perusal of these photocopies goes to show that these are not proved by any cogent and relevant

evidence of witness. Therefore, these photocopies in respect of payment are not admissible in evidence. Moreover,

the genuineness of these document photocopies has been challenged by the Petitioner in his rejoinder, therefore,

burden of proof to prove the factum of payment to the Petitioner lies on the Respondent No.1 which he failed to

discharge. Thus, it is established that Petitioner is entitled to receive the amount towards benefits upon his

retrenchment from service by R-3. Moreover, Respondent No.1 is the Principal Employer of Petitioner contract

labour, therefore, Respondent No.1 is also liable to pay retrenchment allowances to Petitioner along with Respondent

No.2 and Respondent No.3 jointly and severally.

15.

In this context, relevant decisions of the Hon‘ble Supreme Court and High Court, are discussed as

hereunder: -

(a) In the case of Sail Growth Works versus Nilmani Lal and others, Writ Petition Number 386 of 2025, dated 10th

March 2025, the Hon‘ble High Court of Kolkata has held:

19. Gratuity, payable under the Payment of Gratuity Act, 1972, is a gratuitous payment required to be

made by an employer to his employee at the time of termination of services of the employee or upon such

employee’s death.

Section 21 (4) of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), mandates that a

principal employer is responsible for the payment of 'wages' to a contract employee in the event of a contractor's

failure to pay within the stipulated timelines or in the event of a contractor making a short payment. The principal

employer then has the ability to recover the amount paid as 'wages', from the contractor. Section 2(h) of the CLRA

defines the term 'wages' as all remuneration (whether by salary, allowances or otherwise) expressed in terms of

money or capable of being so expressed, which would if the terms of employment, expressed or implied, were

fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and

includes, among others, "(d) any sum which by reason of the termination of employment of the person employed is

payable under any law, contract or instrument which provides for the payment...". However, it excludes "(6) any

gratuity payable on the termination of employees in cases other than those specified in (d)." In Superintending

Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Page 11 Authority, Joint Commissioner of Labour,

Coimbatore & Anr, 2012 LLR 1160, it has been held by the Madras High Court that gratuity payable under the

Payment of Gratuity Act, 1972 falls within this definition of 'wages'. The principal employer or the contractor may

be liable to pay gratuity to contract employees, depending on the circumstances. Principal employer The principal

employer is liable to pay gratuity to contract employees if the contractor fails to pay. The principal employer is

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

523

liable to pay gratuity if the contractor makes a short payment.

The principal employer is liable to pay gratuity if the contractor terminates the services of the contract

employee. The principal employer is liable to pay gratuity if the contract employee works for multiple contractors.

Contractor The contractor is liable to pay gratuity to contract employees if they have worked for at least five years

and the contract is separate from the company.

(b) In the case of Hindustan Steel Works Construction Limited versus Commissioner of Labour, Appeal Civil

Number 11355 of 1996, dated 3rd September 1996, the Hon‘ble Court have held: -

“The short question that arises for determination is whether the appellant who the principal employer is liable to

pay to the contract workers any amount which constitutes the difference between the wages payable to the contract

labour by the contractor and the wages paid by the appellant to its own employees doing similar work. The Division

Bench seems to have relied upon Section 21(4) of the said Act for this purpose. Section 21(1), however, provides

that the contractor shall be responsible for the payment of wages to each worker employed by his. Section 21(4)

provides that if the contractor fails to make this payment or any part thereof, the principal employer is liable to

make this payment and may recover the same from the contractor as set out in that sub-section. Looking to the

definition of wages Under the said Act read with the definition of wages in the payment of Wages Act, which we

have set out earlier, it is clear that Section 21 only deals with the payment of contractual wages by the contractor to

each of his worker; The definition of wages would cover within its scope, inter alia, also those amounts which the

contractor is liable to pay his workers under any award, settlement or order of court as well as other amounts

falling within the definition of wages under the payment of Wages Act Subjection (2) provides for a representative

of the principal employer supervising this payment. Clearly, therefore, the wages which are the subject-matter of

Section 21 are specified sums which are payable in present by the contractor under the terms of his contract of

employment with each worker as well as under any existing award, settlement or order of the court. -Section 21

does not deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section

21(4) will not apply to such obligations of the contractor which may be the subject-matter of dispute between the

contractor and his workers at time of disbursement of wages and which do not fall within the definition of “wages”

under the Act.”

(c) Further, Hon‘ble Supreme Court in the case of M/s. Bombay Industries Chemical Industries Vs Deputy

Labour Commissioner, Civil Appeal Number 813 of 2022, D.O.D dated 4th February 2022, the Hon‘ble Supreme

Court has held that the benefit sought to be enforced under Section 33C (2) of the ID Act is necessarily a pre-existing

benefit or one flowing from a pre-existing right. The Hon‘ble Court added that in the case of Kanku Ben, it is

observed and held that whenever a workman is entitled to receive from his employer any money or any benefit which

is capable of being computed in terms of money and which he is entitled to receive from his employer and is denied

of such benefit can approach Labour Court Under section 33-C(2) of the ID Act. It is further observed that the benefit

sought to be enforced Under Section 33C (2) of the ID Act is necessarily a preexisting benefit or one flowing from a

preexisting right. The difference between a preexisting right or benefit on one hand and the right or benefit, which is

considered just and fair on the other hand is vital. The former falls within jurisdiction of Labour Court exercising

powers under Section 33C (2) of the ID Act, while the latter does not.

(d) In the case of Jeet Lal Sharma versus Presiding Officer, 2001 VAD Delhi One, dated 15th March 2000, the

Hon‘ble High Court of Delhi have held:-

“15. The point which is emphasised is that entitlement to receive money the pre-existing right can the

based on (1) adjudication (2) settlement (3) service conditions. If the right to get a particular benefit is there, the

application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because

employer has denied the same

16. What is the meaning of the expression "entitlement in receive". No doubt it is referable to pre-existing

right. However where the workman claims a benefit flowing from a pre-existing right and approaches the Labour

Courts 33-612) for computation of the right in term of money and the employer disputes the existences of the right,

the Labour Court will have the jurisdiction to determine the question, whether the right exists and if the existence

of right is established than in proceed in compute the benefit flowing therefrom in terms of money or on its

decisions recovery proceedings start (New Taj Mahal Cafe Private Limited versus Labour Court reported in 1970

(2) LLN 51 and East India Coal Company Limited (supra) In deciding the maintainability of the application u/s

13-(12) what is in be looked at is the clans set up in the application and not what the other side contends in its

reply. The fact that the employer by his plea rises some dispute, does not mean that Jurisdiction of Labour Court to

deal with the question is taken away.”

16. Thus, in view of forgone discussion and law laid down by Hon‘ble Court as discussed above, Petition filed by the

Petitioner under Section 33-C(2) of ID Act,1947 against the Respondents for recovery of retrenchment allowances as

per Ex. W12 is acceptable. Undisputedly, Petitioner was engaged by Respondent No.3 M/s Rishitha Associates, and

Respondent No.2 has engaged Respondent No. 3 as sub-contractor for Labour supply to work in the establishment of

Respondent No.1 with prior approval vide document Ex. W8. Therefore, Respondent No.3 as such contractor for

524

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Labour supply for the work is responsible for payment of retrenchment allowances to the Petitioner. It has come on

record Respondent No.3 has not paid the claimed amount to the Petitioner. Therefore, Respondent No. 3 and

Respondent No.2 as main contractor is jointly and severally liable for payment of the claimed amount to the

Petitioner. However, Respondent No.3 has contended that the Petitioner has not been retrenched by him and

Petitioner is still continuing work with the Respondent No.1 under new contractor. Therefore, Petitioner is not entitled

to recover retrenchment allowances from Respondent. Undisputedly, Petitioner was engaged by Respondent No.3 to

work in the establishment of Respondent No.1 for the period from 16.08.2009 to 15.08.2012 as per Ex. W8.

Respondent No.3 is no more employer of Petitioner after 15.08.2012 of the petitioner w.e.f 16-08-2012 and it makes

no difference whether petitioner is still working with Respondent No.1 under some other contention. Thus,

Respondent No.3 has retrenched services of Petitioner w.e.f 16.08.2012.

The definition of retrenchment as provided under Section 2 (oo) is extracted as here under: -

―2(00) ―retrenchment ―means the termination by the employer f the service of a workman for any reason

whatsoever, otherwise than as punishment inflicted by way of disciplinary action but does not include---

(a) Voluntary retirement of the workman: or

(b) Retirement of the workman on reaching the age of superannuation if the contract

of employment between the employer and the workman concerned contains a

stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the

contract of employment between the employer and the stipulation in that behalf

contained therein; or‖

Although Petitioner might be working with Respondent No.1 even after 15.08.2012 but Respondent No.3 is no more

employer of workman. Therefore, only conclusion can be drawn in such circumstances that Respondent No. 3 has

terminated the service of Petitioner w.e.f 16.08.2012. Thus, Petitioner is entitled to receive retrenchment/allowance as

per Ex. W12. Thus, the contention of R3 in this context is untenable. Therefore, the plea of Petitioner that Petitioner

worker is working now under new contractor is untenable as the Respondent No. 3 is no more employer of the

Petitioner after 15-08-2012 meaning thereby Petitioner has been terminated by Respondent No. 3 from service

w.e.f 16.08.2012 and is entitled to receive retrenchment allowances as per terns of the contract.

17. However, Respondent No. 1 has contended that terminal benefits claimed by the Petitioner do not form part of

wages and as such the contractor as direct employer is responsible to make all other payments. In this context, the

reference of definition of wages u/s 2 (IV) Payment of Wages Act, 1936 is relevant. Therein it is provided that wages

mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable

of being so expressed which would if the terms of employment, expressed or employed were fulfilled be payable to

person employed in respect of his employer or of work done in such employer and includes.

(d) Any sum which by reason of termination of employment of the person employed is payable under any law

contract or instrument which provides for the payment of such sum whether with nor without deduction but does not

provide for the time within which the payment is to be made.

Thus, in view of the above definition of wages the retrenchment allowances are very much covered under the

definition of wages and the contention of the Respondent No.1 that retrenchment allowances are not included under

the wages is untenable. According to Ex. W12 the term of payment/mode of payment has been agreed upon between

Respondent No.2 the main contractor and Respondent No.3 sub-contractor, to be paid to the contract Labour i.e.

Petitioner for doing the work at Respondent No.1 industry. The employment of Petitioner by Respondent No.3 of the

Petitioner has been admitted by Respondent No. 1 & 2 and it is also admitted that retrenchment allowances of the

Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent

No.1 is liable to pay retrenchment allowance to the Petitioner in view of the provision contained under Section 21 (4)

of Contract Labour (Regulation and Abolition) Act, 1970 and he may recover the said amount of retrenchment

allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent

No. 1 in this context is untenable.

18. Therefore, in view of foregone discussion and law laid down by Hon‘ble Court as discussed in preceding

paragraph of this order, I come to irresistible conclusion that as per document Ex. W8 and W12 Petitioner had worked

with the Respondent No. 1 as contract labour employed by Respondent No.3 as sub-contractor of Respondent No.2,

during the period from 16-08-2009 to 15-08-2012 and Respondent No.3 the employer has terminated the services of

Petitioner w.e.f 16-08-2012. Therefore, Petitioner is entitled for payment of retrenchment allowances as per

document Ex. W12 which has been proved by the oral and documentary evidence of Petitioner and also admitted by

Respondent No. 3 it is undisputed that none of the Respondents has paid such retrenchment allowance to the

Petitioner. Therefore, as per provision contained under section 21 (4) of contract labour (Regulation and Abolition)

Act, 1970 the Respondent No. 1 being principal employer is responsible for payment of retrenchment allowance to

Petitioner, and he may recover said amount paid to Petitioner from Respondent No. 1 and 2 jointly and severally.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

525

Thus, the Petition filed by the Petitioner has merits and deserved to be allowed.

ORDER

The Petition filed by the Petitioner under section 33C(2) of ID Act 1947 is allowed.

Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,

Visakhapatnam is directed to pay the amount of Rs. 62,444.31ps. to the Petitioner within 30 days from the date of this

order Respondent No.1 is further directed to pay the interest @ 12% per annum on this amount from the date of due

i.e., 16-08-2012 up to the date of payment.

It is further directed that Respondent No.1 is entitled to recover the said amount paid to Petitioner from

Respondent No.2 the main contractor and Respondent No. 3 the sub-contractor jointly and severally.

Ordered accordingly.

Dictated to Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this the

22nd day of December 2025.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri M.B. Murthy

MW1: Sri Bammadi Joga Rao

MW2: Sri K. Sudhakara Rao

Documents marked for the Petitioner

Ex.W1:

Photostat copy of proceedings of Regional Labour Commissioner

(Central) Visakhapatnam dt: 18.11.2015.

Ex.W2:

Photostat copy of notice by Regional Labour Commissioner (Central)

To Respondents Two and Three dt: 10.09.2015.

Ex.W3:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt:19.08.2015

Ex.W4:

Photostat copy of union representation before Regional Labour

Commissioner (Central) Visakhapatnam dt: 20.07.2015

Ex.W5:

Photostat copy of Second Respondents letter to first Respondent

Principal Employer dt: 12.01.2015.

Ex.W6:

Photostat copy of Union Representation before 1st Respondent

Principal Employer dt: 24.03.2014.

Ex.W7:

Photostat copy of Work contract issued to second Respondent by

Principal Employer 1st Respondent dt: 12.09.2009.

Ex.W8:

Photostat copy of extension of work contract to 2nd Respondent by

1st Respondent dt: 28.11.2011.

Ex.W9:

Photostat copy of extension of work contract by 2nd Respondent

dt:28.11.2011.

Ex.W10: Photostat copy of extension of work contract by 2nd Respondent

Dt:22.03.2012.

Ex.W11: Photostat copy of agreement between 2nd and 3rd Respondent

(Basis of Claim) dt: 16.8.2009.

526

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Ex.W12: Photostat copy of Acceptance of 3rd Respondent as Sub-Contractor

Of 2nd Respondent by Principal Employer 1st Respondent dt:15.9.2009.

Ex.W13: Photostat copy of Form-V issued by Principal Employer 1st Respondent

To 2nd Respondent under Contract Labour (Regulation and Abolition)

Act, 1970 dt: 14.08.2009.

Ex.W14: Photostat copy of Undertaking given to 2nd Respondent by 1st

Respondent dt: 29.07.2011.

Ex.W15: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:06.11.2009.

Ex.W16: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt: 16.08.2009.

Ex.W17: Photostat copy of Licence issued to 3rd Respondent by Licencing

Officer under CL (R&A) Act, 1970 dt:19.08.2009.

Ex.W18: Photostat copy of Coverage Intimation by Regional provident Fund

Commissioner of 3rd Respondent establishment under E.P.F & MP

Act, dt:03.08.2004.

Ex.W19: Photostat copy of 2nd Respondent‘s letter to 1st Respondent to pay

All due of Petitioner workmen dt:03.11.2013.

Ex.W20: Photostat copy of 3rd Respondent‘s letter to 1st Respondent to cancel

Gate passes of all Petitioner workmen dt:13.08.2012.

Ex.W21: Photostat copy of statement of actual working days

Ex.W22: Photostat copy of Statement of full and final amount calculation details.

Documents marked for the Respondent

Ex.M1:

Photostat copy of notice sent by Income Tax Dept. dt: 07.11.2012.

Ex.M2:

Photostat copy of demand draft No.002716 showing Payment of

Rs. 2,84,86,336/- by RINL to Income Tax Department dt: 07.03.2013.

Ex.M3:

Photostat copy of Letter from Deputy Commissioner of Income Tax,

Hyderabad to RINL dt: 07.11.2013.

Ex.M4:

Photostat copy of letter sent by RINL to the Tax Recovery Officer,

It Department dt: 22.08.2015.

Ex.M5:

Photostat copy of Letter sent by RINL to the Tax Recovery Officer, IT

Department Enclosing Demand Draft No. 512814 Dt.04.12.2015 for

Rs. 7,82,321/- dt: 17.12.2015

Ex.M6:

Photostat copy of Statement showing the amounts paid by the 2nd

Respondent to the claimants

नई ददल्ली, 14 जनवरी, 2026

का.आ. 76.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय सरकार

मेससा राउरकेला स्ट्टील प्लांट, सेल के प्रबंधतंत्र के संबद्ध जनयोजकों और राउरकेला श्रजमक संघ के बीच अनुबंध में जनर्ददष्ट

केन्रीय सरकार औद्योजगक अजधकरण एवं श्रम न्यायालय, भुवनेश्वर, पंचाट (ररफरेन्स न.- 52/2018) को जजसा दक

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

527

अनुलग्नक में ददखाया गया हज, प्रकाजित करती हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त हुआ

था l

[सं. एल-26011/21/2018-आईआर( )]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 76.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. 52/2018) of the Central Government Industrial

Tribunal cum Labour Court, Bhubaneswar as shown in the Annexure, in the Industrial dispute between the

employers in relation to M/s Rourkela Steel Plant, SAIL and Rourkela Shramik Sangh which was received

along with soft copy of the award by the Central Government on 14.01.2026.

[No. L-26011/21/2018-IR(M)]

SALONI, Dy. Director

ANNEXURE

CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT BHUBANESWAR

Present:

Sri Dinesh Kumar Singh,

Presiding Officer, C.G.I.T.-cum-LabourCourt,

Bhubaneswar.

INDUSTRIAL DISPUTE CASE NO. 52/2018

Date of Passing Order – 15th October, 2025

Between :-

The General Manager (P & A),

M/s. Rourkela Steel Plant, SAIL,

Rourkela, District – Sundargarh, Odisha.

…

1st Party-Management.

(And)

The General Secretary,

Rourkela Shramik Sangh, A-141.

Sector - 18, Rourkela, (Odisha).

…

2nd Party-Union.

Appearances:

None.

…

For the 1st Party-Management.

None.

…

For the 2nd Party-Union.

ORDER

In the present case, a reference was received from the Under Secretary to the Government of India, Ministry of

Labour & Employment, New Delhi vide order No. L-26011/21/2018 – IR(M), dated 29.10.2018 under clause (d) of

sub-section (1) and sub-section (2A) of Section 10 of the Industrial Disputes Act, 1947 for adjudication of a dispute,

under the following schedule:-

―Whether the removal of Shri Sushil Kerketta, Ex-Shunting Porter, by the management of Rourkela Steel

Plant, SAIL, Rourkela vide letter dated 20.09.2018 is proper, legal and justified?

528

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Whether denial of re-employment to Shri Sushil Kerketta, Ex-Shunting Porter is justified when as alleged by

Rourkela Shramik Sangh vide letter dated 08.05.2018, similar 6 workmen have been re-employed in past

through mutual settlement? If not, what relief the concerned workman is entitled to?‖

2.

In the reference order, the Under Secretary to Government of India, Ministry of Labour & Employment,

New Delhi commanded the parties raising the dispute to file statement of claim, complete with relevant documents, list

of reliance and witnesses with this Tribunal within 15 days of receipt of the reference order and to forward a copy of

such statement of claim to each one of the opposite parties involved in the dispute.

3.

Despite directions so given, no statement of claim is received from the 2nd party-Union.

4.

On receipt of the above reference, notices were sent to the 2nd Party-Union on 29.01.2019, 04.06.2019 and on

dated 05.09.2023 for appearance and for filing of statement of claim. Neither the postal article sent to the 2nd Party-

Union, referred to above, was received back nor was it observed by the Tribunal that postal services remained unserved

in the period, referred to above. Therefore, every presumption lies in favour of the fact that the above notices were

served upon the 2nd Party-Union. Despite service of the notice, the 2nd Party-Union opted to abstain away from the

proceedings. No claim statement was filed on its behalf. Thus, it is clear that the 2nd Party-Union is not interested in

adjudication of the reference on merits.

5.

Since the 2nd Party-Union has neither filed statement of claim nor has led any evidence so as to prove its cause

against the Management, it is presumed that there is no claim of workman against the Management.

6.

In view of such, no claim Order is passed by this Tribunal.

7.

Let this order be sent to the appropriate Government, as required under Section 17 of the Industrial Disputes

Act, 1947, for publication.

Dictated & Corrected by me.

DINESH KUMAR SINGH, Presiding Officer

नई ददल्ली, 14 जनवरी, 2026

का.आ. 77.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय

सरकार मेससा राउरकेला स्ट्टील प्लांट, सेल के प्रबंधतंत्र के संबद्ध जनयोजकों और राउरकेला श्रजमक संघ के बीच अनुबंध में

जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण एवं श्रम न्यायालय, भुवनेश्वर, पंचाट (ररफरेन्स न.- 54/2018) को जजसा

दक अनुलग्नक में ददखाया गया हज, प्रकाजित करती हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त

हुआ था l

[सं. एल-26011/22/2018-आईआर( )]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 77.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. 54/2018) of the Central Government Industrial

Tribunal cum Labour Court, Bhubaneswar as shown in the Annexure, in the Industrial dispute between the

employers in relation to M/s Rourkela Steel Plant, SAIL and Rourkela Shramik Sangh which was received

along with soft copy of the award by the Central Government on 14.01.2026.

[No. L-26011/22/2018-IR(M)]

SALONI, Dy. Director

ANNEXURE

CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT BHUBANESWAR

Present:

Sri Dinesh Kumar Singh,

Presiding Officer, C.G.I.T.-cum-LabourCourt,

Bhubaneswar.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

529

INDUSTRIAL DISPUTE CASE NO. 54/2018

Date of Passing Order – 15th October, 2025

Between :-

The General Manager (P & A),

M/s. Rourkela Steel Plant, SAIL,

Rourkela, District – Sundargarh, Odisha.

…

1st Party-Management.

(And)

The General Secretary,

Rourkela Shramik Sangh,

Shramik Mandir, D-81, Sector-18, Rourkela, (Odisha)

…

2nd Party-Union.

Appearances:

None.

…

For the 1st Party-Management.

None.

…

For the 2nd Party-Union.

ORDER

In the present case, a reference was received from the Under Secretary to the Government of India, Ministry

of Labour & Employment, New Delhi vide order No. L-26011/22/2018 – IR(M), dated 29.10.2018 under clause (d) of

sub-section (1) and sub-section (2A) of Section 10 of the Industrial Disputes Act, 1947 for adjudication of a dispute,

under the following schedule:-

―Whether the request of Rourkela Shramik Sangh vide letter dated 12.06.2016 to the management of

Rourkela Steel Plant, SAIL, Rourkela to consider the case pertaining to Shri J.K. Mohini Pl.

No. 873138, Technician for reviewing the punishment meted to Shri J.K. Mohini and substituting with

warning letter in light of similar cases (enumerated in the letter dated 12.02.2016) considered earlier by

RSP management, is correct, proper and justified? If yes, what relief the concerned workman is entitled

to and what directions, if any, are necessary in the matter?

2.

In the reference order, the Under Secretary to Government of India, Ministry of Labour & Employment, New

Delhi commanded the parties raising the dispute to file statement of claim, complete with relevant documents, list of

reliance and witnesses with this Tribunal within 15 days of receipt of the reference order and to forward a copy of

such statement of claim to each one of the opposite parties involved in the dispute.

3.

Despite directions so given, no statement of claim is received from the 2nd party-Union.

4.

On receipt of the above reference, notices were sent to the 2nd Party-Union on 29.01.2019, 04.06.2019 and on

05.09.2023 for appearance and for filing of statement of claim. Neither the postal article sent to the 2nd Party-Union,

referred to above, was received back nor was it observed by the Tribunal that postal services remained unserved in the

period, referred to above. Therefore, every presumption lies in favour of the fact that the above notices were served

upon the 2nd Party-Union. Despite service of the notice, the 2nd Party-Union opted to abstain away from the

proceedings. No claim statement was filed on its behalf. Thus, it is clear that the 2nd Party-Union is not interested in

adjudication of the reference on merits.

5.

Since the 2nd Party-Union has neither filed statement of claim nor has led any evidence so as to prove its

cause against the Management, it is presumed that there is no claim of workman against the Management.

6.

In view of such, no claim Order is passed by this Tribunal.

7.

Let this order be sent to the appropriate Government, as required under Section 17 of the Industrial Disputes

Act, 1947, for publication.

Dictated & Corrected by me.

DINESH KUMAR SINGH, Presiding Officer

530

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

नई ददल्ली, 14 जनवरी, 2026

का.आ. 78.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय

सरकार मेससा राउरकेला स्ट्टील प्लांट, सेल के प्रबंधतंत्र के संबद्ध जनयोजकों और राउरकेला श्रजमक संघ के बीच अनुबंध में

जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण एवं श्रम न्यायालय, भुवनेश्वर, पंचाट (ररफरेन्स न.- 55/2018) को जजसा

दक अनुलग्नक में ददखाया गया हज, प्रकाजित करती हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त

हुआ था l

[सं. एल-26011/23/2018-आईआर( )]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 78.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. 55/2018) of the Central Government Industrial Tribunal

cum Labour Court, Bhubaneswar as shown in the Annexure, in the Industrial dispute between the employers in

relation to M/s Rourkela Steel Plant, SAIL and Rourkela Shramik Sangh which was received along with soft copy

of the award by the Central Government on 14.01.2026.

[No. L-26011/23/2018-IR(M)]

SALONI, Dy. Director

ANNEXURE

CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT BHUBANESWAR

Present:

Sri Dinesh Kumar Singh,

Presiding Officer, C.G.I.T.-cum-LabourCourt,

Bhubaneswar.

INDUSTRIAL DISPUTE CASE NO. 55/2018

Date of Passing Order – 15th October, 2025

Between :-

The General Manager (P & A),

M/s. Rourkela Steel Plant, SAIL,

Rourkela, District – Sundargarh, Odisha.

…

1st Party-Management.

(And)

The General Secretary,

Rourkela Shramik Sangh,

Shramik Mandir, D-81, Sector-18

Rourkela, (Odisha).

…

2nd Party-Union.

Appearances:

None.

…

For the 1st Party-Management.

None.

…

For the 2nd Party-Workman.

ORDER

In the present case, a reference was received from the Under Secretary to the Government of India, Ministry of

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

531

Labour & Employment, New Delhi vide order No. L-26011/23/2018 – IR(M), dated 29.10.2018 under clause (d) of sub-

section (1) and sub-section (2A) of Section 10 of the Industrial Disputes Act, 1947 for adjudication of a dispute, under

the following schedule:-

―Whether the demand of Rourkela Shramik Sangh dt 12.02.2016 to the management of Rourkela Steel

Plant, SAIL to consider to review the punishment on Md. F. Khan (Pl No. 42357) and substituting with

warning letter is proper and justified? If yes, what reliefs Md. F. Khan are entitled to?‖

2.

In the reference order, the Under Secretary to Government of India, Ministry of Labour & Employment, New

Delhi commanded the parties raising the dispute to file statement of claim, complete with relevant documents, list of

reliance and witnesses with this Tribunal within 15 days of receipt of the reference order and to forward a copy of such

statement of claim to each one of the opposite parties involved in the dispute.

3.

Despite directions so given, no statement of claim is received from the 2nd party-Union.

4.

On receipt of the above reference, notice was sent to the 2nd Party-Union on 29.01.2019, 04.06.2019 and on

dated 05.09.2023 for appearance and for filing of statement of claim. Neither the postal article sent to the 2nd Party-

Union, referred to above, was received back nor was it observed by the Tribunal that postal services remained unserved

in the period, referred to above. Therefore, every presumption lies in favour of the fact that the above notices were

served upon the 2nd Party-Union. Despite service of the notice, the 2nd Party-Union opted to abstain away from the

proceedings. No claim statement was filed on its behalf. Thus, it is clear that the 2nd Party-Union is not interested in

adjudication of the reference on merits.

5.

Since the 2nd Party-Union has neither filed statement of claim nor has led any evidence so as to prove its

cause against the Management, it is presumed that there is no claim of workman against the Management.

6.

In view of such, no claim Order is passed by this Tribunal.

7.

Let this order be sent to the appropriate Government, as required under Section 17 of the Industrial Disputes

Act, 1947, for publication.

Dictated & Corrected by me.

DINESH KUMAR SINGH, Presiding Officer

नई ददल्ली, 14 जनवरी, 2026

का.आ. 79.—औद्योजगक जववाद अजधजनयम, 1947 (1947 का 14) की धारा 17 के अनुसरण में, केन्रीय

सरकार मेससा राउरकेला स्ट्टील प्लांट, सेल के प्रबंधतंत्र के संबद्ध जनयोजकों और राउरकेला श्रजमक संघ के बीच अनुबंध में

जनर्ददष्ट केन्रीय सरकार औद्योजगक अजधकरण एवं श्रम न्यायालय, भुवनेश्वर, पंचाट (ररफरेन्स न.- 56/2018) को जजसा

दक अनुलग्नक में ददखाया गया हज, प्रकाजित करती हज जो केन्रीय सरकार को सॉफ्ट कॉपी के साथ 14.01.2026 को प्राप्त

हुआ था l

[सं. एल-26011/24/2018-आईआर( )]

सलोनी, उप जनदेिक

New Delhi, the 14th January, 2026

S.O. 79.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. 56/2018) of the Central Government Industrial

Tribunal cum Labour Court, Bhubaneswar as shown in the Annexure, in the Industrial dispute between the

employers in relation to M/s Rourkela Steel Plant, SAIL and Rourkela Shramik Sangh which was received

along with soft copy of the award by the Central Government on 14.01.2026.

[No. L-26011/24/2018-IR(M)]

SALONI, Dy. Director

ANNEXURE

CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT BHUBANESWAR

Present:

Sri Dinesh Kumar Singh,

Presiding Officer, C.G.I.T.-cum-LabourCourt,

532

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

Bhubaneswar.

INDUSTRIAL DISPUTE CASE NO. 56/2018

Date of Passing Order – 15th October, 2025

Between :-

The General Manager (P & A),

M/s. Rourkela Steel Plant, SAIL,

Rourkela, District – Sundargarh, Odisha.

…

1st Party-Management.

(And)

The General Secretary,

Rourkela Shramik Sangh,

D-81, Sector-18

Rourkela, (Odisha).

…

2nd Party-Union.

Appearances:

None.

…

For the 1st Party-Management.

None.

…

For the 2nd Party-Union.

ORDER

In the present case, a reference was received from the Under Secretary to the Government of India, Ministry of

Labour & Employment, New Delhi vide order No. L-26011/24/2018 – IR(M), dated 29.10.2018 under clause (d) of sub-

section (1) and sub-section (2A) of Section 10 of the Industrial Disputes Act, 1947 for adjudication of a dispute, under the

following schedule:-

―Whether the action of the management of Rourkela Steel Plant in recovering the paid house rent from

the salary of the workmen is proper, legal and justified? If no, what relief the workman is entitled to?‖

2.

In the reference order, the Under Secretary to Government of India, Ministry of Labour & Employment,

New Delhi commanded the parties raising the dispute to file statement of claim, complete with relevant documents,

list of reliance and witnesses with this Tribunal within 15 days of receipt of the reference order and to forward a

copy of such statement of claim to each one of the opposite parties involved in the dispute.

3.

Despite directions so given, no statement of claim is received from the 2nd party-Union.

4.

On receipt of the above reference, notice was sent to the 2nd Party-Union on 29.01.2019, 04.06.2019 and on

dated 05.09.2023 for appearance and for filing of statement of claim. Neither the postal article sent to the 2nd Party-

Union, referred to above, was received back nor was it observed by the Tribunal that postal services remained

unserved in the period, referred to above. Therefore, every presumption lies in favour of the fact that the above

notices were served upon the 2nd Party-Union. Despite service of the notice, the 2nd Party-Union opted to abstain away

from the proceedings. No claim statement was filed on its behalf. Thus, it is clear that the 2nd Party-Union is not

interested in adjudication of the reference on merits.

5.

Since the 2nd Party-Union has neither filed statement of claim nor has led any evidence so as to prove its

cause against the Management, it is presumed that there is no claim of workman against the Management.

6.

In view of such, no claim Order is passed by this Tribunal.

7.

Let this order be sent to the appropriate Government, as required under Section 17 of the Industrial Disputes

Act, 1947, for publication.

Dictated & Corrected by me.

DINESH KUMAR SINGH, Presiding Officer

नई ददल्ली, 19 जनवरी, 2026

का.आ. 80.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj

ds izca/kr=] lac) fu;kstdksa vkSj muds deZdkjksa ds chp vuqca/k esa fufnZ’V औद्योजगक fookn esa

dsUnzh; ljdkj औद्योजगक vf/kdj.k@Je U;k;ky;

ds iapkV (a62/2025) izdkf”kr djrh gSA

[सं. एल-12025/01/2026-आईआर(बी-I)-25]

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

533

सलोनी, उप जनदेिक

New Delhi, the 19th January, 2026

S.O. 80.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref. 62/2025) of the Cent.Govt.Indus.Tribunal-cum-Labour Court

Bangalore as shown in the Annexure, in the industrial dispute between the management of Karnataka

Grameena Bank and their workmen.

[No. L-12025/01/2026- IR(B-I)-25]

SALONI, Dy. Director

ANNEXURE

BEFORE THE

CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT, BANGALORE, CAMP

COURT At HYDERABAD

DATED

: 26th DECEMBER 2025

PRESENT : Smt. K P INDIRA B.A., LLB.

Presiding Officer

C R No. 62/2025

I Party

II Party

The President,

Grameena Bank Naukarara Okkoota,

Shanthagiri, 2nd Cross, Sri Raghavendra

Colony, Vidyanagara, HUBLI – 580 031.

1. The Chairman, Karnataka Gramin Bank, Head

Office, Gandhinagar, Bellary – 583 101.

2. The Propreitor, Gajmukh Security & Utility

Services, Sunny Centre, no. 374, New Kalidasa

Road, Vijaynagar 1st Stage, Mysore – 570 017.

Appearances

I Party :

Sri M Rama Rao

Authorized Representative

II Party :

1. Sri M D Rangaswamy

Advocate

2. Self

1.

The Office of the Deputy Chief Labour Commissioner (C), Government of India, Ministry of Labour,

Bengaluru vide Order No. 95(FOC/55)2025-B4 dated 29.09.2025 in exercise of the power conferred by clause

(d) of sub-section (1) and sub-section (2A) of Section 10 of the Industrial Disputes Act, 1947 (hereinafter

referred as ―The Act‖) (14 of 1947) referred the following Industrial Dispute to this Tribunal for adjudication:

SCHEDULE

―Whether the application filed by the Grameena Bank Naukarara Okkoota regarding non payment of

bonus to the contractual workers employment through contractor M/s. Gajmukh Security Utility

Services, for the financial years 2017-18 to 2022-23 is time barred? If no, whether the contractor

M/s. Gajmukh Security Utility Services or management of Karnataka Grameena Bank is liable to pay

bonus? If yes, what relief the workmen are entitled to?‖

2.

After registering the case the date of hearing was fixed as 09.12.2025 and then posted to 23.12.2025.

In the meanwhile a letter has been received in this Office on 17.10.2025 from II Party No. 2 stating that the

Bonus has been paid to every individual workman and requested for resolution of the dispute. On 23.12.2025

when the matter was called Advocate M D Rangaswamy filed vakalath for II Party No. 1. The Authorised

Representative of the 1st Party filed an Application stating that the Contractor has paid Bonus to all the

Contract Workers on 24.04.2025, whereby the dispute has been settled and therefore, I Party is not intending

to continue with the dispute and prayed for treating the dispute as settled and sought the matter to be posted

for passing of Award in the interest of justice.

534

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

3.

Perused the records. The petitioner has filed an Application dated 09/23-12-2025 which bears the

signature of the 1st Party. Therefore, in view of the above, the Application is allowed. The Reference is thus

dismissed as settled.

AWARD

Reference is dismissed as settled. Transmit

(Dictated to Secretary to Court, transcribed by him, corrected and signed by me on 26th December 2025)

K P INDIRA, Presiding Officer

नई ददल्ली, 15 जनवरी, 2026

का.आ. 81.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj

ds izca/kr=] lac) fu;kstdksa vkSj muds deZdkjksa ds chp vuqca/k esa fufnZ’V औद्योजगक fookn esa

dsUnzh; ljdkj औद्योजगक vf/kdj.k@Je U;k;ky;

ds iapkV (a03/2017) izdkf”kr djrh gSA

[सं. एल-12025/01/2026-आईआर(बी-I)-22]

सलोनी, उप जनदेिक

New Delhi, the 15th January, 2026

S.O. 81.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref. 03/2017) of the Cent.Govt.Indus.Tribunal-cum-Labour Court

Bangalore as shown in the Annexure, in the industrial dispute between the management of Karnataka

Grameena Bank and their workmen.

[No. L-12025/01/2026- IR(B-I)-22]

SALONI, Dy. Director

ANNEXURE

BEFORE THE

CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT

DATED :

06th January 2026

PRESENT : Smt. K P INDIRA

Presiding Officer

Comp No. 03 / 2017

Appellant

Opposite Party

Sh. Girish Aradhya B.S.,

S/o Somaradhya,

H.No. 2148/4000/18,

Opp: Hunsur Gas Office,

Manjunath Extn., BM Road,

Hunsur 571 105

The Chairman / General Manager,

Karnataka Grameena Bank,

Head Office,

Head Office - Bellary

Appearance

Complainant

:

M Rama Rao

Authorized Representative

Opposite Party : T P Muthanna

Advocate

ORDER

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

535

1.

This is a complaint filed by the complainant u/s 33A of the Industrial Disputes Act 1947 raising the

following contentions:-

The complainant was appointed by the opposite party in the post of MCS / Office Assistant (Multipurpose) /

Substaff at their Hunsur branch on 10.12.2004. He submitted application and documents and attended interview for

selection. Since then he worked continuously in the said branch till the date of his termination / retrenchment /

discharge / dismissal of his service on 20.10.2016. As a part of his job, he used to open the branch by collecting keys

from the Manager, cleaning the office, aiding the customers and the branch in various ways. In order to avoid the

extension of status and benefits of permanent workman to him, the Opposite Party directed the Hunsur branch to debit

his wages as coolie charges to the General ledger account without obtaining his signature on the debit vouchers. The

officials of the branch took his signature on the overleaf of coolie paid debit vouchers along with the signatures of the

branch officers while paying wages in cash to him. He was the only person doing the work of the office attendant /

messenger / sweeper / substaff / daily wager / MCS etc on coolie charges. The Opposite Party was not marking

attendance register for his work, not extended payment register to him, signing debit vouchers for his wages by the

officers of the bank and receiving amount by them and then paying the amounts to him as wages, debiting the wages

paid to him to General Charges Account instead of salary paid account / Establishment charges, not issuing

appointment orders or certificates for the services rendered by him in the bank, refusal to pay wages applicable to

messengers / housekeeping staff / sub staff / MCS to him, not extending the service benefits applicable to permanent

workman, taking work from him for years together as Coolie by terming his wages as coolie charges practiced by the

opposite party are all unfair labour practices under the 5th Schedule of the ID Act 1947. The complainant along with

other coolie workers of the opposite party bank formed a union called Pragathi Grameena Bank Daily Wage Workers

Union in 2012 and he was active in the Union activities. The Union filed cases before the Central Labour Machinery

for getting the benefits for the daily wage workers of the Bank. This has caused annoyance to the then management

against him. CR 15/2015 is pending before this Tribunal in which the Union raised a dispute for regularization of

services of the workmen including him. He is directly connected with the said dispute and his name appears at Sl. No.

34 in the list of workers. On 20.10.2016, the Branch Manager Mrs. S M Mamatha asked the complainant to work

under a contractor Gajamukha Agencies in the Bank and on failure his service would be terminated. The complainant

was not ready to work under a contractor and hence his services are terminated. No other reasons are told by the

Manager for the termination for his services. Before retrenching his services, the opposite party has not issued any

notice to him, nor paid any retrenchment compensation, nor paid wages for one month nor conducted any enquiry

against him. His repeated requests to allow him to do work in the branch were not considered by the Branch Manager.

The opposite party has not filed any application before the appropriate Government seeking permission to retrench

him u/s 25 N of the ID Act 1947. Therefore, the retrenchment of his service is illegal, ab-initio void and he is deemed

to be in the services of the Bank as per sec 25 N(7) of the ID Act. As per the provision of Sec 33 of the ID Act, the

opposite party cannot alter or change the conditions of his service applicable to him immediately before the

commencement of the proceedings of C R 15/2015 to his prejudice , during the pendency of CR 15/2015 before this

Tribunal without the expressed permission in writing from the tribunal and also shall not discharge / dismiss /

terminate / retrench him unless he was paid wages for one month and without making an application for approval of

the action so taken. The opposite party has not observed any of the provisions of the ID Act 1947 and has not filed

any application before the Tribunal. The action of the opposite party is against the provisions of the ID Act, principles

of natural justice, illegal, null and void. The opposite party was paying him wages @ Rs. 7368/- per month. The

opposite party has not paid any wages to him since the retrenchment of his services. Since the opposite party has not

filed any application before the Tribunal seeking approval of their action, he is entitled for payment of full wages

drawn by him every month till the disposal of this case. Since the opposite party has not filed any application before

the appropriate government for the termination of his services, not issued any copy of such application to him nor any

notice / notice pay / compensation as required u/s 25 N of the ID Act, he is deemed to be in service for the benefits as

applicable to him prior to such cessation of his service and is entitled for wages as per sec 25N (7) of the ID Act. Due

to the illegal cessation of service imposed on him by the opposite party, the complainant and his family are suffering

economically and socially. Hence this complaint for declaring the termination / retrenchment / discharge / dismissal

of the complainant from 20.10.2016 is not in accordance with the provisions of the ID Act 1947, against the principles

of natural justice, arbitrary, unilateral, ill motivated and illegal and to direct the opposite party to reinstate the

complainant with full back wages, continuity of service with regularization, ancillary benefits from 20.10.2016 and

with cost.

2.

The opposite party at the outset has contended that the complainant has no enforceable cause of action to

raise Industrial Dispute and has no right to seek employment in the bank and there is no discharge or termination of

employment and hence no Industrial Dispute lie under Industrial Disputes Act 1947. It is equally contended that there

is no post of messenger cum sweeper in the bank. The opposite party inter alia contended that based on the man

power requirement assessed by the bank as per the guidelines issued by the Government of India at the end of March

every year, the total vacancies to be filled up by the direct recruitment and promotions will be identified and the

process of direct recruitment and promotions will be initiated after obtaining permissions from the Sponsor Bank viz.,

Canara Bank and the Board of the opposite party bank. Recruitment and appointment of employees in the Regional

Rural Banks is governed by the rules framed by the Government of India vide notification dated 13.07.2010 called

536

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

―Regional Rural Banks (Appointment and Promotions of Officers and Employees) Rules 2010‖. As per the said rules,

procedure with regard to Office Attendant (Multipurpose Group C employees) are prescribed, the selection process

being on the basis of interview to be conducted by a Committee. The branches / offices of the bank engage coolies

occasionally and intermittently as and when necessitated for doing menial works in the branches. In order to meet the

exigencies of the work, the opposite party bank branches used to engage coolies only for few hours for such menial

works like cleaning, sweeping and watering and were paid coolie charges proportionately depending upon the number

of hours they worked. The complainant was also engaged similarly as a coolie intermittently and not continuously.

Depending upon the availability of the person in the locale, the Branch Manager engaged such person on need basis

for such works. As per the Government of India guidelines for appointment of Regular Attendants, the names should

be sponsored by the employment exchange and such engagement is also subject to the conditions stipulated in regard

to educational qualification, age etc. While engaging the coolies, no educational qualifications or age were looked into

and whoever is available would be engaged. The persons so engaged are at liberty to work elsewhere after completion

of the menial works entrusted to them. They are not governed by any rules and regulation of the bank and there is no

employee employer relationship as they have not been engaged by the bank against the post. It is the settled position

in law that a person engaged intermittently on daily wages will not have the right to be absorbed for any post. The

Hon'ble Supreme Court of India in State of Karnataka vs. Uma Devi held that there is no right to those who have

been engaged as daily wagers temporarily or on contractual basis to claim that they have the right to be absorbed in

service as they cannot be said to be holders of post. In Union of India vs. A S Pillai also the Hon'ble Supreme Court

held that daily wager / part time workers not engaged in any regular cadres or any sanctioned post are not entitled for

absorption. The contention of the complainant that he was appointed by the opposite party at their Hunsur branch on

10.12.2004 by taking application form etc. is denied. The Branch Manager has no power to recruit / appoint any

employee. The complainant was engaged only occasionally to attend to menial / urgent works and not continuously.

Since the complainant was not recruited / appointed by the opposite party anytime, his termination / dismissal /

retrenchment on 20.10.2016 did not arise. Consequently, question of issuing notice to him, payment of retrenchment

compensation, payment of wages of one month, filing of application before the Tribunal before or during the

pendency of CR 15/2015 and seeking permission u/s 25N of the Act does not arise. Under the circumstances, sec 33

of the Industrial Disputes Act has no application in his case. He was never engaged for attending the regular functions

of substaff. He was paid wages for the occasional / casual works he was engaged to. The Branch Managers are not

authorized to issue any certificates and question of issuing certificates to him does not arise as he was not

continuously engaged in the opposite party bank and nor was empanelled in the daily wagers‘ list. The complainant

has not been appointed in the payrolls of the opposite party at any time. Since he has not been appointed in the

opposite party bank, question of marking in the attendance register, extending payment registered to him, debiting the

payment made to him to salary account, issuing appointment orders, issuing certificates and denying benefits etc. did

not arise. Hence the allegation of unfair labour practice on the part of the II Party is untenable. The contention of the

complainant that his involvement in the union activities and filing of Industrial Dispute by the said union for getting

benefits to the daily wage workers has caused anger to the opposite party is a figment of his imagination and hence

denied. The complainant was not working in the opposite party bank on continuous basis and was engaged

occasionally, casually for menial and urgent requirements. His contention that he was being paid wages @ Rs. 7368/-

is denied. His contentions that he was deemed to be in service and entitled for benefits are untenable and baseless.

The complainant has not undergone any process of recruitment and is not entitled for recruitment for appointment in

the opposite party bank or for reinstatement or other ancillary benefits as claimed by him. For all these reasons, the

opposite party has prayed for rejection of the complaint.

3.

From the above rival pleadings, following points arise for consideration:-

1.

Whether the complaint is legally and factually maintainable?

2.

Whether the Complainant is proved to have been working continuously in the opposite party establishment

since 10.12.2004?

3.

Whether the complainant is proved to have been discharged / terminated / retrenched / dismissed from

service as contended by him?

4.

Whether the alleged contravention of the provision of sec 33 of the ID Act is proved by the complainant?

5.

Whether the complainant is entitled to get reinstatement to the service with full back wages, continuity of

service and ancillary benefits from 20.10.2016 as prayed for?

6.

What is the proper Order and Award to be passed in this complaint case?

4.

Either of the parties did not prefer to adduce any evidence in the matter. Though the complainant is seen to

have filed an affidavit dated 07.01.2021 in lieu of his examination in chief and sought time for further examination in

chief, he did not thenceforth prefer to make him available for further examination in chief or cross-examination.

5.

Heard the oral and written arguments submitted from both sides.

6.

Points no. 1 to 4:- Since all these points are closely integrated and inter-twined, all these points are

discussed together. Alleging contravention of the provisions of sec 33 of the ID Act 1947, the complainant filed the

instant complaint u/s 33A of the Act on the factual averment that the opposite party has not filed any application

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

537

before this Tribunal seeking permission for retrenching / terminating / dismissing him on 20.10.2016 and not filing

any application for approval of their said action. The complainant‘s case is that he was appointed by the opposite

party bank at their Hunsur branch on 10.12.2004 on submission of application and subjecting him for interview and

on obtaining documents from him. He claims that since then he has worked continuously in the said branch on all

working days. It is his further case that on 20.10.2014, the then Branch Manager asked him to work under a contractor

Gajamukha Agencies and in the event he does not heed to that, not to come for work anymore and eventually he

services are terminated by the opposite party as he was not ready to work under a contractor. This particular averment,

the opposite party emphatically disputed. The complainant inter alia pleaded that he is an active member in a Union

under the name and style Pragathi Grameena Bank Daily Wage Workers Union formed between himself with other

coolie workers of the opposite party bank. The said union has raised a dispute for regularization of the service of the

complainant and other similarly placed coolie before the Central Government Machinery and the same is registered

and pending before this Tribunal as CR 15/2015. It is the case of the complainant that he is directly connected with

the said dispute raised by the Union pending before this Tribunal. The disengagement of job on 20.10.2016 according

to the complainant tantamounts to contravention of the provisions of sec 33 of the ID Act as according to him, it

happened when the industrial dispute raised by the union for and on behalf of him and the other coolie workers was

pending adjudication. This gave way for filing this complaint u/s 33A of the ID Act.

7.

Oral and written arguments are advanced on behalf of the complainant narrating all these events by his

authorized representative.

8.

The learned counsel for the opposite party per contra put forth his rival submission that the complainant has

never ever rendered any continuous service in the opposite party bank. Instead the bank was in the practice of

engaging persons from the locale for attending menial job like sweeping, cleaning and watering whenever so

necessitated and such persons were paid coolie charges for the same. According to the opposite party, the complainant

was also so casually engaged occasionally and intermittently depending on the requirement of the branch as a coolie

for doing menial works and such works carried out by him was not regular in nature, but only on need basis.

9.

Of course, the event of non-engagement for work said to have happened on 20.10.2016 is apparently during

the pendency of CR 15/2015. However the complainant did not prefer to bring home any proof that he was in service

in the opposite party bank even on the previous day or anytime there-before in a constant and continuous stretch so as

to establish the retrenchment / dismissal / discharge / termination alleged in the complaint. Here it is contextually

profitable to quote Sec 33 of the Act:-

33. [ Conditions of service, etc., to remain unchanged under certain circumstances during pendency of

proceedings. ]

(1)During the pendency of any conciliation proceeding before a conciliation officer or a Board or of any

proceeding before ][an arbitrator or] [a Labour Court or Tribunal or National Tribunal in respect of an

industrial dispute, no employer shall- (a)in regard to any matter connected with the dispute, alter, to the

prejudice of the workmen concerned in such dispute, the conditions of service applicable to them immediately

before the commencement of such proceeding; or (b)for any misconduct connected with the dispute, discharge

or punish, whether by dismissal or otherwise, any workmen concerned in such dispute, ave with the express

permission in writing of the authority before which the proceeding is pending.(2)During the pendency of any

such proceeding in respect of an industrial dispute, the employer may, in accordance with the standing orders

applicable to a workman concerned in such dispute ] [or, where there are no such standing orders, in

accordance with the terms of the contract, whether express or implied, between him and the workman] (a)[

alter, in regard to any matter not connected with the dispute, the conditions of service applicable to that

workman immediately before the commencement of such proceeding; or (b) for any misconduct not connected

with the dispute, discharge or punish, whether by dismissal or otherwise, that workman: Provided that no such

workman shall be discharged or dismissed, unless he has been paid wages for one month and an application

has been made by the employer to the authority before which the proceeding is pending for approval of the

action taken by the employer. (3)Notwithstanding anything contained in sub-section (2), no employer shall,

during the pendency of any such proceeding in respect of an industrial dispute, take any action against any

protected workman concerned in such dispute (a) by altering, to the prejudice of such protected workman, the

conditions of service applicable to him immediately before the commencement of such proceedings; or (b) by

discharging or punishing, whether by dismissal or otherwise, such protected workman, save with the express

permission in writing of the authority before which the proceeding is pending. Explanation:-For the purposes of

this sub-section, a "protected workman ", in relation to an establishment, means a workman who, being] [a

member of the executive or other office bearer] [of a registered trade union connected with the establishment, is

recognised as such in accordance with rules made in this behalf.(4)In every establishment, the number of

workmen to be recognised as protected workmen for the purposes of sub-section (3) shall be one per cent. of the

total number of workmen employed therein subject to a minimum number of five protected workmen and a

maximum number of one hundred protected workmen and for the aforesaid purpose, the appropriate

Government may make rules providing for the distribution of such protected workmen among various trade

unions, if any, connected with the establishment and the manner in which the workmen may be chosen and

538

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

recognised as protected workmen.(5)Where an employer makes an application to a conciliation officer, Board,

] [an arbitrator, a] [Labour Court, Tribunal or National Tribunal under the proviso to sub-section (2) for

approval of the action taken by him, the authority concerned shall, without delay, hear such application and

pass, ] [within a period of three months from the date of receipt of such application] [ Substituted by Act 46 of

1982, Section 17, for " as expeditiously as possible" (w.e.f. 21.8.1984).][, such order in relation thereto as it

deems fit:]. ][Provided that where any such authority considers it necessary or expedient so to do, it may, for

reasons to be recorded in writing, extend such period by such further period as it may think fit: Provided

further that no proceedings before any such authority shall lapse merely on the ground that any period

specified in this sub-section had expired without such proceedings being completed.]

10.

Of course by enacting sec 33, the legislature wanted to ensure a fair and satisfactory enquiry of the industrial

dispute undisturbed by any action on the part of the employer or the employee likely to create fresh cause for

disharmony between them. The legislature visualized that during the pendency of the industrial dispute status quo

should be maintained and no further element of discord should be introduced between the employer and the

employee. The objective of the provision of sec 33 is to put a ban on the prerogative of the employer in altering the

service condition of the employee pending enquiry of the industrial dispute raised by them. The primary principle is

that if an Industrial Dispute is raised by a group of workmen acting on their own through their union, the general

conclusion is that the all those who sponsored the dispute are concerned in it. However the very factum of raising an

Industrial Dispute and pendency of such a dispute in a court of law by an individual employee or a group of

employees by itself does not lead to the inference that such an individual who alleges retrenchment from services was

a workman in continuous service under the employer, unless proved by concrete evidence. Indeed, Sec 33A stands to

the rescue of a workman who alleges alteration or cessation of service by the employer during the pendency of an

Industrial Dispute. A regular workman / employee or a casual employee on a continuing basis under an employer who

files a complaint u/s 33A certainly stands on a different footing than the one who claims continuity of service as a

casual labourer and whose claim is not accepted by the employer.

11.

The case on hand portrays the scenario the employer disowns and denies the complainant as its regular daily

wager. The alleged retrenchment of service dated 20.10.2016 averred by the complainant is not accepted or

recognized by the Oppose Party in the given case. The definite stand of the opposite party is that the complainant had

been engaged very occasionally and intermittently on need basis to attend menial works like sweeping, cleaning etc.

without touching the routine works in the office. The complainant per contra very particularly pleaded that apart from

cleaning in and around the bank office, he was entrusted with the task of assisting customers in making challans for

cash / cheque, deposits taking and keeping cash in double lock, writing registers, collecting cash from other banks

from the cheques drawn on them, printing passbooks, deposit receipts, writing loan papers, making deposit

mobilization, bundling payment slips and day book and such so many tasks. However according to the opposite party

all the above works are the routine tasks of the regular employees and not of such casual workers engaged for

attending menial jobs. Thus the factual pleadings of the complainant indicate that his engagement in the opposite

party bank was not to attend menial labour alone but higher tasks as well, as mentioned above. It is while attending

such highly responsible tasks in his so called status as MCS / Office assistant (multipurpose) / sub-staff at the Hunsur

branch of the opposite party continuously since 10.12.2004 that the opposite party has terminated / retrenched his

services on 20.10.2016. This factum also the opposite party has emphatically opposed and disputed. According to the

opposite party, no such retrenchment or termination has ever occurred nor was there any occasion for that as the bank

had not engaged the complainant in such a position at all in work continuously. In this factual background it is the

primary duty of the complainant to substantiate that his very entry in the bank was on 10.12.2004 and he continued to

perform services in the opposite party bank without any break till 20.10.2016. The complainant is equally obliged to

prove that he was disengaged from a continuous service on 20.10.2016. Inability to offer menial job on a particular

date when there was no requirement to engage a casual labourer to attend such work pleaded by the opposite party

does oblige the complainant to substantiate his specific case by adducing reliable and concrete material evidence

establishing all the aspects pleaded by him in the complaint. The mere pleading raised by him regarding the

prevalence / pendency of an Industrial Dispute and the so called termination or retrenchment of services on

20.10.2016 without bringing home any iota of evidence substantiating the above plea does not bind this Tribunal to

accept the case set forth by him as gospel truth and to draw a finding against the opposite party.

12.

It is the settled position of law that u/s 33A of the Industrial Disputes Act, the complainant carries the initial

burden / onus to prove that the employer contravened sec 33 of the Act and such contravention occurred during the

pendency of a dispute, by presenting the facts supported by evidence. Once the complainant discharges his initial

burden to establish that he is an employee in continuous service within the parameters of sec 33 of the Act and such

contravention occurred as pleaded and proved, the employer must then justify their actions especially concerning

alleged dismissal / retrenchment / termination, often leading to the tribunal deciding if the action was fair and just like

any other Industrial Dispute.

13.

Here in the given case, the one and only aspect accepted and admitted by the opposite party is the pendency

of CR 15/2015 raised by the Daily Workers Union. That by itself does not discharge the onus of proof cast on the

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

539

complainant to prima facie establish its case. The alleged contravention of service conditions or an illegal cessation of

the service of an employee by the employer is not an aspect to be simply inferred by the Tribunal out of nothing but to

be very precisely, meticulously and scrupulously proved and established by the aggrieved complainant.

14.

Sec 33A is designed to provide an instant remedy to a workman aggrieved by the contravention of sec 33 by

filing a complaint before adjudicatory authorities or conciliatory authorities. It is trite that where such a complaint is

made to an adjudicatory authority viz. Labour Court / Tribunal, it will adjudicate upon the dispute as if it is a dispute

referred to or pending before it, so that the workman is saved of the botheration of moving the Government for

referring this dispute for adjudication.

15.

The basic question to be considered by this Tribunal in the complaint on hand u/s 33A is whether there has

been a contravention by the employer of the provisions of sec 33 and in the event it is found that there has been a

contravention of the provisions, then to embark upon the exercise to adjudicate about the matter so complained of in

the complaint on its merit. No written order of termination / retrenchment is produced by the complainant to justify

his pleadings. Of course, he averred in the complaint that the termination issued by the opposite party was only oral.

If that be so, it should be proved by the complainant that he was in continuous service under the opposite party and

was subjected for a termination / retrenchment on an oral order by mounting the witness box. Going by the

proceedings underwent in the given case, it is clear that once the statement of objection is filed by the opposite party,

the matter was posted for evidence of the complainant. The latter though filed an affidavit dated 07.01.2021 in lieu of

his examination in chief and sought time for further examination in chief, he did not thenceforth prefer to make

himself available for further examination in chief or cross-examination. Then at the whimsical stand of the

complainant it is made out that there is no need to adduce evidence and the matter be posted for arguments. In fact, as

per law, before giving any relief to the aggrieved employee under the section, the authority viz., this Tribunal has first

to determine that the employee was continuously working under the employer and the latter had surreptitiously kicked

out him from the job without complying with the mandate u/s 33 of the Act. Hence a contravention of sec 33 is the

foundation for exercise of the power u/s 33A of the Act. As already observed and as rightly pointed out by the learned

counsel for the opposite party, no reliable proof / evidence is brought on record by the complainant to substantiate that

there is contravention of the provisions of sec 33 of the Act from the side of the opposite party.

16.

In the event if the alleged factum of infraction from the provision of sec 33 is established, the matter has to

be very meticulously adjudicated on merit to examine whether the complainant is entitled to get an order of

reinstatement. It is trite that even when contravention of sec 33 is established, that does not automatically lead to an

order for reinstatement. So, at large, the complainant is at the task to prove and establish the primary elements viz.,

his status as a daily wage employee under the opposite party coupled with contravention of the provisions of sec 33

by the latter and then his eventual right to get reinstatement to service with equivalent benefits. Determination of all

these issues by the legal forum could be possible only when reliable evidence is adduced by the complainant by

offering himself for searching cross examination by the opposite party in a full-fledged trial. It is trite that the initial

burden lies on the employee to prove that he falls under the definition of a ―workman‖ under the Industrial Disputes

Act. If the employee presents a strong prima facie case, the management must then provide evidence to rebut it. Of

course, the evidence to be adduced by the person claiming to be an employee must be substantial, often a

preponderance of evidence depending on the claim. It is no longer res-integra that the burden of proving the

employer-employee relationship primarily rest upon the person who asserts its existence. In a situation where a person

asserts to be an employee of the management which the management denies, the duty primarily rests upon the person

so asserting to give positive evidence in his favour and discharge his initial burden. At the risk of repetition I say,

once such a person has given such a positive evidence in his favour, only then the burden would shift on the

management to give evidence to counter such claims, because it is always possible to prove positive facts than a

negative. The Hon'ble Supreme Court in Workman of Nilgiri Co-Op Mkt Society LTD vs. State of Tamil Nadu

(AIR 2004 SC 1639) held that it is a well settled principle of law that the person who is setting up a plea of existence

of relationship of employer and employee, the burden would be upon him. Similar view is adopted by the Hon'ble

Supreme Court in Bank of Baroda vs. Ghemarabhai Harijibhai Rabari (2005 (10) SCC 792). Though the

complainant is seen to have filed an affidavit dated 07.01.2021 in lieu of his examination in chief and sought time for

further examination in chief, he did not thenceforth prefer to make him available for further examination in chief or

cross-examination and thereby kept aloof from trial, feeling shy of an intensive quiz in the witness box. Probably, the

complainant might have been misled, misguided or mal-advised not to mount the witness box so as to avoid probable

inconvenience of a grilling cross-examination. The net result of such willful avoidance of requisite procedure by the

complainant either by himself or as instilled upon him is complete failure of the case projected by him.

17.

Extensive argument is advanced on behalf of the complainant with the aid of plethora of legal authorities

canvassing for a favorable order of reinstatement with full back wages, continuity of service with regularization and

ancillary benefits from 20.10.2016. As could be heard from Learned Counsel for the opposite party, all these wider

reliefs sought for by the complainant are the main reliefs claimed in the said case CR 15/2015. By consciously

avoiding to give oral or documentary evidence in this case, what is craved for and on behalf of the complainant is to

grant the above reliefs even without facing a trial. Granting such reliefs in his favour without providing /

540

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

supplementing any sort of evidentiary support would tantamount to prejudging the issue raised in the Industrial

Dispute case CR 15/2015 in a very shortcut method.

18.

Argument is advanced on behalf of the complainant placing reliance upon the verdicts of the Hon'ble High

Court of Gujarat in Gujarat State Electricity Corporation LTD vs. Bhimrao Aagete (LPA 177 / 2016 dated

06.03.2018), Kalavatiben Prabhakar Patil and others vs. Managing Director (C/SCA/3189/2020 dated

17.01.2022) that while deciding a complaint u/s 33A it is not obligatory for the workman to prove that he had worked

for 240 days. Those rulings in fact do not indicate that the complainant is not at all under obligation to substantiate his

basic status under the opposite party to justify the case put forth.

19.

In the peculiar facts and circumstances of the case and the very casual manner in which it is manned by the

complainant, the plethora of rulings relied upon by him viz., Hindustan Lever LTD vs. Ram Mohan Roy and

others (AIR 1973 SC 1156) by the Hon'ble Apex Court, Management of Karur Vysya Bank LTD vs. Presiding

Officer, Industrial Tribunal (2007 II LLJ 459) by the Hon'ble High Court of Madras, M M Narayana vs. KSRTC

(AIR 2012 (4) KAR R 518) and Karan Kumar vs. Divisional Controller KSRTC (WP 203333/2019 dated

13.07.2023) by the Hon'ble High Court of Karnataka and Deutsche Lufthansa AG vs. Nayan Pahwa & others

(2025 INSC 998) by the Hon'ble High Court of Delhi are not of any help to the complainant as in all those cases non-

compliance of the provisions by the respective employers are relating to regular employees on its payroll. Among the

cases noted above, the case of Karur Vysya Bank LTD, MM Narayana and Karan Kumar are related to the

actions initiated by the respective employers based on misconduct / misdemeanor of the respective regular employees

in respect of which approval applications were not submitted by the employers. In Hindustan Lever’s case also, the

complainants were the regular employees of the employer establishment. In principle, the fact situations contained in

the afore-quoted ruling do not have any application to the case on hand.

20.

Before concluding, it is worthy to pen down that in order to avail the relief provided u/s 33 of the Act, firstly

the aggrieved party should prove himself to be a workman within the definition of u/s 2(s) of the Industrial Disputes

Act and there exists employer-employee relationship between the contesting parties. In conclusion of the afore-

discussion, I find that the complainant has miserably failed in substantiating his own case. He equally failed in

refuting / negating the contentions raised by the opposite party that he is only a coolie engaged on need and

requirement basis without continuity and frequency and hence not governed by any rules and regulations of the bank.

So also, the complainant further failed in successfully controverting the rival contentions of the opposite party that

there is no employee-employer relationship between himself and the opposite party or that he was not engaged by the

latter against a sanctioned post. The deliberate refusal, negligence or avoidance to prove and establish a genuine and

reliable case by tendering requisite evidence has led the complainant to face a total failure in the given case and for an

eventual dismissal of the complaint. With this view, these points are answered accordingly.

21.

Point No. 5:- In view of the findings on point no. 1 to 4, it is held that the complainant is not entitled for any

reliefs sought for in this complaint.

22.

Point no. 6:- In the result the following award is passed.

AWARD

The Complaint no. 03/2017 is dismissed.

(Dictated to LDC, transcribed by him, corrected and signed by me on 06th January 2026)

K P INDIRA, Presiding Officer

नई ददल्ली, 19 जनवरी, 2026

का.आ. 82.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj

सवा हररयाणा ग्रामीण बैंक

)

ई

-

गुड़गांव ग्रामीण बैंक

(

ds izca/kr=] lac) fu;kstdksa vkSj muds deZdkjksa ds chp vuqca/k esa

fufnZ’V औद्योजगक fookn esa dsUnzh; ljdkj औद्योजगक vf/kdj.k@Je U;k;ky; चंडीगढ़- II ds iapkV (117/2014)

izdkf”kr djrh gSA

[सं. एल-12012/05/2015-आईआर(बी-I)]

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

541

सलोनी, उप जनदेिक

New Delhi, the 19th January, 2026

S.O. 82.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref. 117/2014) of the Cent.Govt.Indus.Tribunal-cum-Labour Court

Chandigarh-II as shown in the Annexure, in the industrial dispute between the management of Serva Haryana

Gramin Bnak (e- Gurgaon Gramin Bank ) and their workmen.

[No. L-12012/05/2015- IR(B-I)]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT-II,

CHANDIGARH.

Present: Sh. Kamal Kant, Presiding Officer.

ID No. 117/2014

Registered on:-02.03.2015

Sh. Devender S/o Sh. Om Parkash, R/o H.No.439, near Kalra Colony, Ekta Nagar, Palwal, District Palwal

(Haryana).

…......Workman

Versus

1.

The Chairman, Serva Haryana Gramin Bank (e-Gurgaon Gramin Bank), H.O.-Near Bajrang Bhawan, Delhi

Road, Rohtak (HR)-124001.

2.

The Nodal/Regional Officer, Serve Haryana Gramin Bank (e-Gurgaon Gramin Bank), Pargati Bhawan,

Institutional Area, Sector-44, Gurgaon (Haryana).

3.

The Sr. Manager, Serve Haryana Gramin Bank (e-Gurgaon Gramin Bank), Branch RM Office, Palwal,

Haryana.

........…Respondents/Management

Award

Passed on:-30.12.2025

Present:- Sh. Arun Batra, AR for workman.

Sh. Tarun Dhingra, AR for respondent no.1 to 3.

Central Government vide Notification No. L-12012/05/2015-IR(B-I) Dated 03.02.2015, under clause (d) of

sub-section (1) and sub-section (2A) of Section 10 of the Industrial Disputes Act, 1947 (hereinafter called the Act),

has referred the following Industrial dispute for adjudication to this Tribunal:-

―Whether the action of the management of Serve Haryana Gramin Bank (formerly known as Gurgaon

Gramin Bank), Gurgaon in terminating the services of Shri Devender S/o Late Shri Om Parkash

w.e.f. 05.12.2013 is valid, just and legal? If not to what relief the concerned workman is entitled to and

from which date?”

1.

Both the parties were served with notices. The workman filed his statement of claim with the averment that

he was appointed as Peon by the respondents/managements on 21.09.2010 at the payment of Rs.280/- per day with

542

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

respondent no.3. Respondents had not provided any appointment letter, PF, ESI Card or any other documents by

using unfair labour practice. The respondents has obtained workman‘s signature on some printed documents by

stating that it shall be used as a record of service. The record of the workman relating to his salary is reserved in the

contingency account section of respondent which is available with the respondents. The workman rendered his

services with utmost honesty without any complaint but in spite of that, management began to harass the workman

when the name of Gurgaon Gramin Bank is changed as Serve Haryana Gramin Bank. Ultimately, against the

provision of Section 25-F of the Industrial Dispute Act, management retrenched the services of the workman on

05.12.2013 without any enquiry or without giving any retrenchment compensation while he had worked more than

240 days on each calendar year before his retrenchment. Workman worked from 21.09.2010 upto 2013 in Dasuya,

Faridabad Branch under the Manager ML Aggarwal. The workman moved an application before the Assistant

Labour Commissioner (Central) Karnal for conciliation but of no result. The workman is unemployed from the date

of retrenchment till date. It is therefore, prayed that workman be ordered to be reappointed with all benefits with

continuous service.

2.

Respondent no.1 to 3 has filed its written statement, alleging therein that petition moved by

claimant/workman is not maintainable because there is no Industrial Dispute between the parties. The workman was

a daily wager and engaged for a day and the services of the workman starts from morning and come to an end in the

evening. The workman was never engaged as daily worker for regular work. The engagement of the workman was

not under any recruitment process. The workman was engaged as daily wager by erstwhile Gurgaon Gramin Bank.

The Gurgaon Gramin Bank with its Head Office at Gurgaon and erstwhile Haryana Gramin Bank with its Head

Office at Rohtak have been amalgamated and a new entity has come into being know as Sarva Haryana Gramin

Bank vide Notification dated 29.11.2013 of Govt. of India, Ministry of Finance, Department of Financial Services,

New Delhi. After the amalgamation, respondent-management of Sarva Haryana Gramin Bank did not engage the

workman because his hiring as daily wager not under the prescribed lawful recruitment process as provided in the

Regional Rural Banks (Appointment and Promotion of Officers and Employees) Rules, 2010. In view of the facts

and circumstances mentioned above, it is therefore, respectfully prayed that the case of the workman may kindly be

dismissed with heavy costs, being devoid of merits in the interest of justice.

3.

Parties were given opportunity to lead evidence.

4.

The workman has examined himself as WW1 and filed his affidavit in evidence as Ex.WW1/A along with

documents Ex.W-1 bearing page no.1 to 38 and has been cross-examined by the AR for respondents. AR for

workman closed the evidence on 12.02.2020.

5.

The respondents have filed affidavit of Sh. Rajinder Kumar Goyal, Senior Manager, Sarva Haryana Gramin

Bank, who filed his affidavit in evidence as Ex.MW1/A along with documents MW1/1 (Reply dated 13.03.2025)

and Ex.MW1/2 (Email received from Head Office dated 17.03.2025) and has been cross-examined by the learned

AR of workman. AR for respondents closed the evidence on 19.03.2025.

6.

The workman filed written arguments, alleging therein that he was appointed as Peon on 21.09.2010 in the

office of Manager of Sarva Haryana Gramin Bank (previously known as Gurgaon Gramin Bank) at Branch NIT

Faridabad. The workman was drawing a salary of Rs.280/- per day from the management. The workman was

granted TA, DA for his travel allowance by the management. The management violated the provisions of the Act

and did not supply appointment letter, PF account number, ESI card to the workman. The management got sign from

the workman on plain papers on the pretext of using these papers for the service record and workman did sign these

blank papers on the asking of the officials of the bank as the requirement of the service of the workman. The

workman did not protest against the official for getting the signatures on the blank papers, being afraid of losing the

job. The record pertaining to the salary of workman is available with the concerned-branch of the bank in the shape

of debit slips and contingency account. The work of the workman was satisfactory and at no point of time any

complaint was made against the work of the workman. On the change of the name of the bank to Sarva Haryana

Gramin Bank, management started harassing the workman on one pretext or the other. The services of the workman

were terminated orally on 05.12.2013 without issuing any notice or retrenchment compensation. The workman has

completed more than 240 days in a calendar year in the employment of the management without any break. The

work is still available with the management and the workman is no where gainfully employed. The workman filed

an application for summoning the attendance record, salary record, provident fund details and ESI details of the

workman but the management failed to supply the record. Adverse inference may kindly be drawn against the

management for not producing the summoned record. The management paid salary to the workman against

signatures and receipts. On 28.04.2014, after terminating the services of workman, management advertised 175 post

of Office Attendant (Multipurpose) Group C whereas workman is available to serve on this post. Workman along

with others challenged this advertisement before the Hon‘ble Punjab & Haryana High Court by filing CWP No.9254

of 2014 and the Hon‘ble High Court directed that in the meanwhile, the applications made by the workmen for the

above said posts shall be accepted by the respondent-bank subject to the decision of the writ petition. The

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

543

management decided to withdraw the advertisement dated 28.04.2014 on 26.04.2016 and the said writ petition was

disposed of as become infructuous. Earlier the management has issued letter dated 25.11.2009 raising requirement

of Part Time worker for the smooth working of the branch. On 14.09.2010, a letter was issued by the General

Manger of Gurgaon Gramin Bank directing not to engage a particular person for more than 55 days in continuity and

to ensure that the person engaged as per point no.1 mentioned above is not engaged for more that 230 days in a year,

whereas the workman had worked more than 240 days in many calendar years. On 08.11.2011, a letter was issued to

the workman by the management to appear for the post of office attendant on 17.11.2011 at 01.00 pm but the

workman was not allowed to attend the interview for the reason best known to the management. The workman

applied for the post advertised vide advertisement dated 28.04.2014. During the pendency of the present case, the

management issued circular dated 23.06.2023, wherein offices/branches has been directed to fix the charges of the

daily wagers. It is maintained that the workman is entitled to reinstatement with all back wages.

7.

Management has not filed any written argument but has argued orally. It is maintained by the AR for

management that workman has never completed 240 days in year and was called on the necessity basis on a

particular day. No record was being maintained by the management of the workman as he was not even part time

employee and further if the workman was paid through his bank account as alleged by the workman, he should have

placed on record original record to satisfy his case that he has worked 240 days in a year prior to his termination and

he has not placed the same. Thus, the reference is not maintainable and is liable to be dismissed.

8.

I have heard learned AR for the parties and have gone through the entire evidence placed on file by the

parties.

9.

There is no dispute about the preposition of law that onus to prove that workman was in the employment of

management is always on the workman/claimant and it is for the workman to adduce evidence to prove factum of

his employment with the management. Such evidence may be in the form of receipt of salary of wages for 240 days

or record of his/her appointment or engagement for that year to show that he/she has worked with the employer for

240 days or more in a calendar year. In this regard, reference may be made to Batala Coop. Sugar Mills Ltd. Vs.

Sowaran Singh(2005) 8 Supreme Court cases 481 as well as Director Fisheries Terminated Division Vs.

Bhikubhai Meghajibhai Gavda(2012) 1 SCC 47.

10.

In his affidavit Ex.WW1/A the workman has reiterated his case that he was appointed as Peon on

21.09.2010 in the office of Manager of Sarva Haryana Gramin Bank, previously known as Gurgaon Gramin Bank, at

Branch NIT Faridabad and used to work for the whole day. He was drawing salary @Rs.280/- per day from the

management. He had completed more than 240 days in the management without any break and his services were

terminated orally on 05.12.2013. During his cross-examination, he has admitted that a few times payments were

made by vouchers and sometime through his bank account. He has no original documents issued by the bank.

11.

It was incumbent upon the workman to prove that he had worked for 240 days preceding the year of his

alleged termination on 05.12.2013. Except his bald statement, there is nothing on the record to prove that he had

worked for 240 days with the respondent-bank. Even in his cross-examination, the workman had admitted that a few

times payments were made by vouchers and sometime through his bank account. He has no original documents from

the bank. When he was being paid through vouchers and sometime through his bank account, payment made to him

is surely reflected in his bank account. He has placed on record photocopy of saving bank account in which some

amount has been credited but it is not clear that the amount credited by the respondent-bank. Similarly he has placed

on record photocopy of some vouchers and from these vouchers it cannot be said that he has received some payment

from the bank as these have not been proved by calling some person from the bank. Thus, it cannot be conclusively

proved that prior to his termination on 05.12.2013 in the preceding year he has worked for 240 days in that year.

Thus, his bald statement maintaining that he worked from 21.09.2010 to 05.12.2013 is not proved when the

workman was having best evidence in his possession.

12.

It is added here that workman had moved an application on 23.02.2021 for issuing direction to the

respondent-bank to place on record the following documents i.e. attendance record, salary record, provident fund

details and ESI details of the workman. In reply thereto, it is maintained by the management that since the workman

was only daily wager so the above said record of the workman is not with the respondent as the workman was paid

through debit voucher. Even in the affidavit of the management witness Sh. Rajinder Kumar Goyal filed as

Ex.MW1/A, the management has stated that the workman was engaged for daily basis and was called on daily basis

on a day from morning and his services ends in the evening on the same day and engagement of the workman was

for a day. There was no provision of maintaining record or ACR of the workman because his engagement was on

daily basis as and when necessity arose. He has not worked continuously for 240 days in a calendar year. This

witness in his cross-examination has also stated that no attendance register was maintained by the branch with

544

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

regard to the attendance of workman.

13.

In this case, non-production of the above said record by the respondent-bank as asked by the workman was

not necessary as there was no record of the workman with the bank. Moreover, workman is having best evidence

with him in the shape of his bank account where his salary was deposited by the bank which he has not produced in

the Tribunal. Thus, rather adverse inference can be drawn against the workman.

14.

In his written argument, the workman has placed on record certain documents which are irrelevant for

proving that workman had worked for 240 days preceding the year of his termination. These documents which he

has attached with his written argument are not admissible in evidence because these documents were never exhibited

by the workman in his statement or by calling any other person.

15.

It is entirely for workman to prove the completion of 240 days of his service with the respondent-bank prior

to his retrenchment and onus to prove this fact is always on the workman which the workman has failed to prove it.

Thus, protection under Section 25-F of the Act is not available to the workman.

16.

In view of my findings on the above discussed issues as discussed in the preceding paragraphs, this

reference is decided against the workman.

17.

Let copy of this award be sent to Central Government for publication as required under Section 17 of the

Act.

KAMAL KANT, Presiding Officer

नई ददल्ली, 21 जनवरी, 2026

का.आ. 83.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj

ds izca/kr=] lac) fu;kstdksa vkSj muds deZdkjkas ds chp vuqca/k esa fufnZ’V औद्योजगक fookn esa dsUnzh; ljdkj

औद्योजगक vf/kdj.k@Je U;k;ky;

ds iapkV (71/2013) izdkf”kr djrh gSA

[सं. एल-41011/89/2013-आईआर(बी-I)]

सलोनी, उप जनदेिक

New Delhi, the 21st January, 2026

S.O. 83.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref. 71/2013) of the Cent.Govt.Indus.Tribunal-cum-Labour Court

Lucknow as shown in the Annexure, in the industrial dispute between the management of Uttar Railway and

their workmen.

[No. L-41011/89/2013- IR(B-I)]

SALONI, Dy. Director

ANNEXURE

CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT, LUCKNOW

I.D. No. 71/2013

Ref No. L-41011/89/2013(IR(B-I)) Dated: 13.11.2013

Mandal Sangathan Mantri,

Uttar Railway Karmachari Union,

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : जनवरी 24, 2026/माघ 4, 1947

545

283/63KH Garhi Kannora (Premvati Nagar),

P.O. Manak Nagar, Lucknow – 11. …………...Appellant

Versus

Assistant Divisional Mechanical Engineer (O. &F.),

Uttar Railway, DRM Office,

Hazratganj, Lucknow. …………..Respondent

AWARD

By order No. L-41011/89/2013(IR(B-I)) Dated: 13.11.2013, the present industrial dispute has been referred

for adjudication in exercise of the powers conferred by clause (d) of sub-section (1) and sub-section (2A) of Section

10 the Industrial Disputes Act, 1947 (14 of 1947) by the Central Government, with following schedule:

“क्या प्रबींधन, उत्तर रेऱवे, ऱखनऊ द्वारा श्री सईदुरहमान को ददए गए दींडादेश ददनाक 06/05/2008 व अऩीऱ य आदेश

दद० 06/08/2008 को ननरस्त ककया जाना न्यायोधचत एवीं बैध है? यदद नह ीं तो वाद ककस राहत को ऩाने का हकदार है?"

Accordingly, an I.D. Case No. 71/2013 has been registered.

On 27.01.2014, workman filed a claim statement fact in brief as stated by him that are he was engaged as substitute

cleaner by respondent, while he was working in a said capacity a medical memo issued to him for medical

examination to which he filed his objection.

Aggrieved by the said facts a charge sheet dated 17.03.2007, issued to him as per para 514(F) of India Railway

Medical Manual-2000 Volume-I., to which he submitted his reply on 08.03.2008.

Thereafter on 05.05.2008, a punishment was awarded to him, aggrieved by the same he preferred an appeal dismissed

by order dated 06.08.2008.

Accordingly it is prayed by the workman that the impugned punishment order dated 05.05.2008, and appellate order

dated 06.08.2008, may be set aside, and he may be reinstated in service.

On behalf of the respondent a written statement was filed to which the workman has filed his reply.

Thereafter the workman file evidence in support of his case affidavit/examination in chief on 05.09.2016(W7).

In spite of the repeat opportunity given to him he refused/did not turn up to get him cross examined on his

examination in chief, filed by way of evidence on affidavit.

So by order dated 29.06.2018, this Tribunal has closed the right of his cross examine.

Thereafter management/respondent filed its evidence on affidavit.

In spite of the opportunity given to the worker, he did not cross examine the management witness, so the same was

closed.

On 19.01.2021; matter was fixed for hearing, since then the case is lingering due to delay on the part of the workman,

as he has not put his appearance in person or through its legal representation to argue the matter.

Keeping in view the above said facts, this is a case of no evidence because worker did not cross examined himself on

the evidence filed by him on affidavit (examination in chief) so the same in not proved as per the relevant provision

Evidence Act, so keeping the said facts and the law as laid by the Hon'ble High Court in the case of V. K. Raj

Industries v. Labour Court (1) and others 1981 (29) FLR 194 as under:

"It is well settled that if a party challenges the legality of an order, the burden lies upon him to prove illegality

of the order and if no evidence is produced the party invoking jurisdiction of the Court must fail Whenever a

workman raises a dispute challenging the validity of the termination of service if is imperative for him to file

written statement before the Industrial Court setting out grounds on which the order is challenged and he must

also produce evidence to prove his case. If the workman fails to appear or to file written statement or produce

evidence, the dispute referred by the State Government cannot be answered in favour of the workman and he

would not be entitled to any relief."

In the case of M/s Uptron Powertronics Employees' Union, Ghaziabad through its Secretary v. Presiding

Officer, Labour Court (II), Ghaziabad and others 2008 (118) FLR 1164 Hon'ble Allahabad High Court has held

as under:

"The law has been settled by the Apex Court in case of Shanker Chakravarti v. Britannia Biscuit Co. Ltd., V.K. Raj

Industries v. Labour Court and Ors., Airtech Private Limited v. State of U.P. and Ors. 1984 (49) FLR 38 and

Meritech India Ltd. v. State of U.P. and Ors. 1996 FLR that in the absence of any evidence led by or on behalf of the

546

THE GAZETTE OF INDIA : JANUARY 24, 2026/MAGHA 4, 1947

[PART II—SEC. 3(ii)]

workman the reference is bound to be answered by the court against the workman. In such a situation it is not

necessary for the employers to lead any evidence at all. The obligation to lead evidence to establish an allegation

made by a party is on the party making the allegation. The test would be, who would fail if no evidence is led."

And by the Hon'ble Allahabad High Court in the case of District Administrative Committee, U.P. P.A.C.C.S.C.

Services v. Secretary-cum-G.M. District Co- operative Bank Ltd. 2010 (126) FLR 519; wherein it has been held

as under:

"The submission is that even if the petitioner failed to lead the evidence, burden was on the shoulders of the

respondent to prove the termination order as illegal. He was required to lead evidence first which he failed. A

perusal of the impugned award also does not show that any evidence either oral or documentary was led by the

respondent. In the case of no evidence, the reference has to be dismissed."

AWARD

For the foregoing reasons, the case is dismissed and; and the workman is not entitled for any relief.

Award as above.

Lucknow.

10th December, 2025

Justice ANIL KUMAR, Presiding Officer

Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064

and Published by the Controller of Publications, Delhi-110054.

GORAKHA NATH

YADAVA

Digitally signed by GORAKHA

NATH YADAVA

Date: 2026.01.29 15:56:54 +05'30'