1315 GI/2026
(949)
रजिस्ट्री 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 ताजिक
WEEKLY
सं. 8]
नइ ददल् ली, मार्च 1—मार्च 7, 2026, िजनवार/फाल् गुन 10—फाल् गुन 16, 1947
No. 8]
NEW DELHI, MARCH 1— MARCH 7, 2026, SATURDAY/PHALGUNA 10––PHALGUNA 16, 1947
आस भाग में जभन् न ृृ् सं् या दी िाती िज जिससे दक यि ृृथक संकलन के प ृ में रखा िा सके
Separate Paging is given to this Part in order that it may be filed as a separate compilation
भाग II—खण् ड 3—ईृ-खण् ड (ii)
PART II—Section 3—Sub-section (ii)
भारत सरकार के मंत्रालयों (रक्षा मंत्रालय को छोड़कर) द्वारा िारी दकए गए सांजवजधक अदेि और ऄजधसूर्नाएं
Statutory Orders and Notifications Issued by the Ministries of the Government of India
(Other than the Ministry of Defence)
जवत्त मंत्रालय
(जवत्तीय सेवाएं जवभाग)
नइ ददल्ली, 26 फरवरी, 2026
का.अ. 201.—रा् रीय अवास अधक ऄजधजनयम, 1987 (1987 का 53) की धारा (6) की ईृधारा (1) के खंड
(ड.) द्वारा प्रदत्त िजियों का प्रयोग करते हुए, केन् रीय सरकार, एतद् द्वारा, श्री गया प्रसाद के स्ट्थान ृर श्री ऄजमत िुक्ला,
संयुि सजर्व (ग्रामीण अवासन), ग्रामीण जवकास मंत्रालय, नइ ददल्ली को तत्काल प्रभाव से रा् रीय अवास अधक के
जनदेिक मंडल में जनदेिक के ृद ृर जनयुि करती िज।
[फा. सं. एफटी-1/12/2022-अइएफ-II]
कुमार िजलेन्र, ऄवर सजर्व
सी.जी.-डी.एल.-सा.-20032026-271103
CG-DL-W-20032026-271103
950
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
MINISTRY OF FINANCE
(Department of Financial Services)
New Delhi, the 26th February, 2026
S.O. 201.—In exercise of the powers conferred by Clause (e) of Sub-Section (1) of Section 6 of the National
Housing Bank Act, 1987 (53 of 1987), the Central Government hereby appoints Shri Amit Shukla, Joint Secretary
(Rural Housing), Ministry of Rural Development, New Delhi as a Director on the Board of Directors of National
Housing Bank with immediate effect and until further orders vice Shri Gaya Prasad.
[F. No. FT-1/12/2022-IF-II]
KUMAR SHAILENDRA, Under Secy.
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 202.—राष्ट्रीय कृजि और ग्रामीण जवकास अधक (ना ाडच) ऄजधजनयम, 1981 (1981 का 61) की धारा 6
की ईृधारा (1) के खंड (ड.) द्वारा प्रदत्त िजियों का प्रयोग करते हुए, केन्रीय सरकार, एतद्द्वारा, जनम्नजलजखत ऄजधकाररयों
को ऄजधसूर्ना की तारीख से तीन विच की ऄवजध के जलए ऄथवा ऄगले अदेिों तक, िो भी ृिले िो, राष्ट्रीय कृजि और
ग्रामीण जवकास अधक (ना ाडच) के जनदेिक मण्डल में जनदेिक जनयुि करती िज:-
(i)
सजर्व, कृजि और कृिक कल्याण जवभाग, जत्रृुरा सरकार
(ii)
िररयाणा सरकार के अयुि एवं सजर्व, जवत्त जवभाग, िररयाणा सरकार
(iii)
सरकार के ृदेन जविेि मु्य सजर्व, कृजि एवं सिकाररता जवभाग, अन्र प्रदेि सरकार
(iv)
कृजि ईत्ृाद अयुि सि प्रधान सजर्व, कृजि जवकास और कृिक कल्याण तथा ायो-टजक्नोलॉिी जवभाग, छत्तीसगढ़
सरकार
[फा. सं. 7/3/2019-एसी]
रत्नाकर झा, ऄवर सजर्व
New Delhi, the 27th February, 2026
S.O. 202.—In exercise of the powers conferred by clause (e) of sub-section (1) of Section 6 of the National
Bank for Agriculture and Rural Development (NABARD) Act, 1981 (61 of 1981), the Central Government hereby
appoints the following officials as Director on the Board of Directors of NABARD for a period of three years from
the date of notification or until further orders, whichever is earlier:
I.
Secretary, Agriculture and Farmers‘ Welfare Department, Government of Tripura
II.
Commissioner & Secretary to Government of Haryana, Finance Department, Government of Haryana
III.
Ex-Officio Special Chief Secretary to Government, Agriculture & Cooperation Department, Government of
Andhra Pradesh
IV.
Agriculture Production Commissioner cum Principal Secretary, Agriculture Development and Farmer
Welfare and Bio-Technology Department, Government of Chhattisgarh
[F. No. 7/3/2019-AC]
RATNAKAR JHA, Under Secy.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
951
कार्ममक, लोक जिकायत और ृेंिन मंत्रालय
(कार्ममक और प्रजिक्षण जवभाग(
नइ ददल्ली, 2 िनवरी, 2026
का.अ. 203.—केंरीय सरकार, एतद् द्वारा, ददल्ली जविेि ृुजलस स्ट्थाृन ऄजधजनयम, 1946 (1946 का
ऄजधजनयम 25) की धारा 5 की ईृ-धारा (1) सृर त धारा 6 द्वारा प्रदत्त िजियों का प्रयोग करते हुए ऄजधसूर्ना
सं. 9/सी. ी.अइ.-80-02/2025-13748/ एर्ृी, ददनांक 05.11.2025, गृि जवभाग, (ृुजलस िाखा), के माध्यम से िारी
ज िार राज्य सरकार की सम्मजत से साआ र ऄृराध सजित साआ र धोखाधड़ी करने, जसम ॉक्स के माध्यम से वीओअइृी
काल्स को ऄवजध प ृ से राईट करने, फिी जसम काडच का संधारण करने, िालसािी करने, एवं िाली दस्ट्तावेिों को तजयार
कर जसम काडों को जनगचत कराने के सं ंध में भारतीय न्याय संजिता, 2023 की धारा 318 (4)/ 319(2)/336(3)/338/
340(2)/61(2)/3(5) एवं दूरसंर्ार ऄजधजनयम, 2023 की धाराएं 42(1)/ 42(2)/ 42(3)/42(6) तथा सूर्ना प्रद्योजगकी
ऄजधजनयम, 2000 की धाराएं 66/66(ग)/66(घ)/72 के ऄंतगचत अर्मथक ऄृराध ृुजलस थाना मामला सं. 17/2025,
ददनांक 30.07.2025 में ऄन्वेिण/जनरीक्षण एवं ृूछताछ करने के जलए ददल्ली जविेि ृुजलस स्ट्थाृन के सदस्ट्यों की
िजियों और क्षेत्राजधकार का जवस्ट्तार समस्ट्त ज िार राज्य में करती िज।
[फा. सं. 228/96/2025-एवीडी-II]
सत् यम श्रीवास्ट् तव, ऄवर सजर्व
MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS
(Department of Personnel and Training)
New Delhi, the 2nd January, 2026
S.O. 203.—In exercise of the powers conferred by sub-section (1) of section 5 read with section 6 of the
Delhi Special Police Establishment Act, 1946 (Act 25 of 1946), the Central Government with the consent of the State
Government of Bihar, issued vide Notification No. 9/C.B.I-80-02/2025-13748/ HP, dated 05.11.2025, Home
Department, (Police Branch), hereby extends the powers and jurisdiction to the members of Delhi Special Police
Establishment to the whole of Bihar to investigate/supervise and inquire into the Economic Offences Police Station
Case No. 17/2025, dated 30-07-2025, under Section 318(4)/319(2)/336(3)/338/340(2)/61(2)/3(5) of BNS 2023,
Sections 42(1)/42(2)/42(3)/42(6) of the Telecommunications Act, 2023 and Sections 66/66(C)/66(D)/72 of the
Information Technology Act, 2000, which relates to concerning cybercrime, including conducting cyber fraud,
illegally routing VOIP calls through SIM boxes, possessing fake SIM cards, forgery, and issuing SIM cards by
preparing forged documents.
[F. No. 228/96/2025-AVD-II]
SATYAM SRIVASTAVA, Under Secy.
नइ ददल्ली, 8 िनवरी, 2026
का.अ. 204—केंरीय सरकार, भारतीय नागररक सुरक्षा संजिता, 2023 (2023 का 46) की धारा 18 की
ईृधारा (8) द्वारा प्रदत्त िजियों का प्रयोग करते हुए, श्री अर. एस. र्ीमा, वररष्ठ ऄजधविा को, ददल्ली जविेि ृुजलस
स्ट्थाृन (केंरीय ऄन्वेिण ब्यूरो) की ओर से, दांजडक ऄृील सं्या 1642/2018 में, माननीय ईच्चतम न्यायालय के समक्ष
1984 के जसख जवरोधी दंगो से सं ंजधत अर सी सं. 24(एस)/2005/सी ीअइ/एससी-1/नइ ददल्ली, से ईद्भूत सज्जन
कुमार नाम राज्य (केंरीय ऄन्वेिण ब्यूरो के माध्यम से) के मामले का और तत्समय प्रवृत्त जवजध द्वारा स्ट्थाजृत दकसी
ऄृील या ृुनरीक्षण न्यायालय में ईि मामले से ईद्भूत दकसी ऄृील, ृुनरीक्षण या ऄन्य मामलों का संर्ालन करने िेतु,
मामले का जनृटान िोने तक या ऄगले अदेि तक, आनमें से िो भी ृूवचतर िो, तारीख 25 जसतं र, 2025 से जविेि लोक
ऄजभयोिक के प ृ में जनयुि करती िज ।
[फा. सं. 225/26/2025-एवीडी-II]
सत् यम श्रीवास्ट् तव, ऄवर सजर्व
952
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
New Delhi, the 8th January, 2026
S.O. 204.—In exercise of the powers conferred by sub-section (8) of section 18 of the Bharatiya Nagarik
Suraksha Sanhita, 2023 (46 of 2023), the Central Government hereby appoints Shri R. S. Cheema, Senior Advocate as
Special Public Prosecutor with effect from the 25th September, 2025 for conducting the case on behalf of Delhi
Special Police Establishment (Central Bureau of Investigation) in Criminal Appeal number 1642/2018 before the
Hon‘ble Supreme Court of India in the matter of Sajjan Kumar Vs. State through CBI arising out of RC
No. 24(S)/2005/CBI/SC-I/New Delhi, related to the 1984 Anti-Sikh Riots, and any appeal, revision or other matters
arising out of it in any appellate or revisional Court established by law for the time being in force, till its disposal or
until further orders whichever is earlier.
[F. No. 225/26/2025-AVD-II]
SATYAM SRIVASTAVA, Under Secy.
नइ ददल्ली, 16 िनवरी, 2026
का.अ. 205.—केंरीय सरकार, भारतीय नागररक सुरक्षा संजिता, 2023 (2023 का 46) की धारा 18 की
ईृधारा (8) द्वारा प्रदत्त िजियों का प्रयोग करते हुए, श्री ऄनुृम एस िमाच, ऄजधविा को, जविेि न्यायाधीि, भ्रष्टार्ार
जनवारण ऄजधजनयम, सी ीअइ अरएडीसी नइ ददल्ली के न्यायालय में, ददल्ली जविेि ृुजलस स्ट्थाृन (केंरीय ऄन्वेिण
ब्यूरो) द्वारा संजस्ट्थत, मामला सं्या अरसी 2202022इ0006,सी ीअइ, इओ-II, नइ ददल्ली (र्ाइनीि वीिा मामला),
के ऄजभयोिन का और ऄृील, ृुनरीक्षण या आससे ईद्भूत िोने वाले दकन्िीं ऄन्य मामलों का तत्समय प्रवृत्त जवजध द्वारा
स्ट्थाजृत दकसी ऄृील या ृुनरीक्षण न्यायालय में संर्ालन करने िेतु, मामले का जनृटान िोने तक या ऄगले अदेि तक,
िो भी ृूवचतर िो, जविेि लोक ऄजभयोिक के प ृ में जनयुि करती िज ।
[फा. सं. 225/28/2025-एवीडी-II]
सत् यम श्रीवास्ट् तव, ऄवर सजर्व
New Delhi, the 16th January, 2026
S.O. 205.—In exercise of the powers conferred by sub-section (8) of section 18 of the Bharatiya Nagarik
Suraksha Sanhita, 2023 (46 of 2023), the Central Government hereby appoints Shri Anupam S Sharrma, Advocate as
Special Public Prosecutor for conducting prosecution of case number RC 2202022E0006, CBI, EO-II, New Delhi
(Chinese visa case) instituted by the Delhi Special Police Establishment (Central Bureau of Investigation) before the
Court of Special Judge, PC Act, CBI RADC, New Delhi and any appeal, revision or other matters arising out of it in
any appellate or revisional Court established by law for the time being in force, till its disposal or until further orders
whichever is earlier.
[F. No. 225/28/2025-AVD-II]
SATYAM SRIVASTAVA,, Under Secy.
नइ ददल्ली, 29 िनवरी, 2026
का.अ. 206.—केन् रीय सरकार एतद्द्वारा ददल् ली जविेि ृुजलस स्ट् थाृन ऄजधजनयम, 1946 (1946 की ऄजधजनयम
सं. XXV) की धारा 5 की ईृ-धारा (1) सृर त धारा 6 द्वारा प्रदत्त िजियों का प्रयोग करते हुए, ृुजलस
ईृ मिाजनरीक्षक/िाखा प्रमुख, सी ीअइ, एसी ी, रांर्ी के ददनांक 29.12.2025 के ृत्र सं्या 1059/2025-अर द्वारा
दकए गए ऄनुरोध ृर झारखंड राज् य सरकार की ऄजधसूर्ना ्ाृन सं.-10/सी. ी.अइ.-431/2025-84, रांर्ी, ददनांक
07.01.26, गृि, कारागार और अृदा प्र ंधन जवभाग के माध्यम से िारी सम्मजत से, श्री प्रभु मुंडा, मेल
ओवरसीयर/कमचर्ारी, प्रधान डाकघर, रामगढ़, डाक जवभाग, संर्ार मंत्रालय के जवरुद्ध भ्रष्टार्ार जनवारण ऄजधजनयम,
1988 (2018 में यथा संिोजधत) की धारा 7 के तित ऄृराध काररत करने के जलए ददनांक 07.01.2026 को ृंिीकृत
अरसी0242026ए0003 में, साथ िी आस मामले के ऄन्वेिण के दौरान प्रकाि में अए दकन्िीं ऄन्य ऄृराधों एवं ऐसे एक
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
953
या ईससे ऄजधक ऄृराधों से िुड़े या ईससे सं द्ध दकसी दु्प्रयास, दु्प्रेरणा और िड्यंत्र एवं/ऄथवा ईसी संव्यविार में दकए
गए या ईन्िीं तथ्यों से ईत्ृन्न दकसी ऄन्य ऄृराध(धों) के जलए, जनयजमत मामला दिच करने और ऄन्वेिण करने के जलए
ददल्ली जविेि ृुजलस स्ट्थाृन के सदस्ट्यों की िजियों और क्षेत्राजधकार का जवस्ट्तार (कायोत्तर प्रभाव से,
ददनांक 07.01.2026 से) झारखंड राज्य में करती िज।
[फा. सं. 228/6/2026-एवीडी-II]
सत् यम श्रीवास्ट् तव, ऄवर सजर्व
New Delhi, the 29th January, 2026
S.O. 206.—In exercise of the powers conferred by sub-section (1) of section 5 read with section 6 of the
Delhi Special Police Establishment Act, 1946 (Central Act XXV of 1946), the Central Government with the consent
of the State Government of Jharkhand, issued vide Notification Memo No.-10/C.B.I.-431/2025-84, Ranchi, Dated
07.01.26, Home, Prisons and Disaster Management Department upon request made vide letter number 1059/2025-R,
dated 29.12.2025 of DIG of Police/Head of Branch, CBI, ACB, Ranchi, hereby extends the power and jurisdiction to
all the members of Delhi Special Police Establishment in the State of Jharkhand (ex post facto w.e.f. 07.01.2026) for
registration and investigation in RC0242026A0003 registered on 07.01.2026 against Sh. Prabhu Munda, Mail
Overseer/Employee of Head Post Office, Ramgarh, Department of Post, Ministry of Communication for committing
offence u/s 7 of PC Act-1988 (As amended in 2018) and any other offences that may come to light during
investigation of this case including any attempt, abetment and conspiracy in relation or in connection with one or
more such offences and/or any other offence(s) committed in the course of the same transaction or arising out of the
same facts.
[F. No. 228/6/2026-AVD-II]
SATYAM SRIVASTAVA, Under Secy.
नइ ददल्ली, 2 फरवरी, 2026
का.अ. 207.—केंरीय सरकार, एतद् द्वारा ,ददल्ली जविेि ृुजलस स्ट्थाृन ऄजधजनयम,
1946
( 1946
का केन्रीय
ऄजधजनयम
25 ) की धारा
5
की ईृ-धारा ) 1 (सृर त धारा
6
द्वारा प्रदत्त िजियों का प्रयोग करते हुए अदेि सं .एर्डी
20 9
सीओडी
202 4 , ेंगलुरु,
ददनांक: 21.11.2025 के माध्यम से िारी कनाचटक राि् य सरकार की सम्मजत से
जनम्नजलजखत रेलवे ऄजधकाररयों और गजर-सरकारी व्यजियों तथा ऄन्य ऄ्ात लोक सेवकों और ऄन्य ऄ्ात गजर-सरकारी
व्यजियों/कंृजनयों के जवरुद्ध भ्रष्टार्ार जनवारण ऄजधजनयम ,1988 )2018 में यथा संिोजधत (की धारा
7 ए और भारतीय
दंड संजिता की धारा
120 - ी सृर त भारतीय दंड संजिता की धारा
420
के ऄंतगचत दकए गए ऄृराधों और आनके
ऄन्वेिण के दौरान प्रकाि में अने वाले दकसी ऄन्य ऄृराध का ृंिीकरण एवं ऄन्वेिण करने के जलए ददल्ली जविेि ृुजलस
स्ट्थाृन के सदस्ट्यों की िजियों और क्षेत्राजधकार का जवस्ट्तार करती िज।
1.
श्री भावेि कुमार, ृॉआंट्स मजन/एस ीसी
2.
श्री राजि सजिल, ृॉआंट्स मजन/एस ीसी
3.
श्री जिव प्रकाि िमाच, ृॉआंट्स मजन/एस ीसी
4.
श्री रामावतार कुमार, एलृी िंटर/एस ीसी
5.
श्री सूरि कुमार, टेक अइ/सीएंडडब्ल्यू, एस ीसी
6.
श्री जविय कुमार, सिायक/एसिीटी/एस ीसी
7.
श्री जववेकानंद ससि वाइ, ृॉआंट्स मजन/एस ीसी
8.
श्री जवकाि कुमार, एएलृी/एमवाइएस
9.
श्री अिीि कुमार, एएलृी/एमवाइएस
10. श्री सत्येंर कुमार, ृॉआंट्स मजन/एस ीसी
954
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
11. श्री कन्िजया लाल केवट, सिायक, सीएंडडब्ल्यू, एस ीसी
12. श्री ऄजभिेक कुमार, सिायक, टीअरडी/एस ीसी
13. श्री ृल्लव प्रांसु, टेक III/एस ीसी
14. श्री संतोि कुमार, वररष्ठ सीसीटीसी/एस ीसी
15. श्री जवकाि कुमार, सिायक, टीएल/एस ीसी
16. श्री ओम र्ंर, वररष्ठ सीसीटीसी/एस ीसी
17. श्री ऄरसवद कुमार, वररष्ठ सीसीटीसी/एमवाइएस
18. श्री प ृेि कुमार र्ौ े, सिायक/सी&डब्ल्यू/अरडीएम/दजक्षण मध्य रेलवे
19. श्री राि कुमार ससि, जनवासी क्वाटचर नं. मथुराृुर कॉलोनी, 67 ी, रोितास, ज िार-821305
20. मेससच एमइएल रेसनग एंड ऄसेसमेंट जलजमटेड, नं. 6, छ ा तल, सी सवग, जमत्तल टावसच, एम.िी. रोड, अधगलुरु
21. मेससच एप्टेक जलजमटेड, नं. 6, छ ा तल, सी सवग, जमत्तल टावसच, एम.िी. रोड, अधगलुरु।
22. ऄ्ात लोक सेवकगण
23. ऄ्ात गजर-सरकारी व्यजि/कंृजनयााँ
[फा. सं. 228/4/2026-एवीडी-II]
सत् यम श्रीवास्ट् तव, ऄवर सजर्व
New Delhi, the 2nd February, 2026
S.O. 207.—In exercise of the powers conferred by sub-section (1) of section 5 read with section 6 of the
Delhi Special Police Establishment Act, 1946 (Central Act25 of 1946), the Central Government with the consent of
the State Government of Karnataka, issued vide Order No. HD 209COD 2024, Bengaluru, dated:21.11.2025,hereby
extends the powers and jurisdiction of the members of the Delhi Special Police Establishment for registration and
investigation of offence against railway officials and private persons as mentioned below and other unknown public
servants and unknown private persons/companies for the offences under Section 7A of the Prevention of Corruption
Act, 1988 (as amended in 2018) and under Section 120-B IPC read with Section 420 IPC and any other offence that
may come to light during investigation.
1. Shri Bhawesh Kumar, P Man/SBC.
2. Shri Rajib Shil, P Man/SBC.
3. Shri Shio Prakash Sharma, P Man/SBC.
4. Shri Ramawatar Kumar, LP Shunter/SBC
5. Shri Suraj Kumar, Tech I/c & W, SBC
6. Shri Vijay Kumar, Asst/SGT/SBC
7. Shri Vivekanand Singh Y, P Man/SBC
8. Shri Vikash Kumar, ALP/MYS
9. Shri Ashish Kumar, ALP/MYS
10.
Shri Satyendra Kumar, P Man/SBC
11.
Shri Kanhaiyalal Kewat, Asst. C&W/SBC
12.
Shri Abhishek Kumar, Asst. TRD/SBC
13.
Shri Pallav Pransu, Tech III/SBC
14.
Shri Santosh Kumar, Sr. CCTC/SBC
15.
Shri Vikash Kumar, Asst. TL/SBC
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
955
16.
Shri Om Chandra, Sr. CCTC/SBC
17.
Shri Arvind Kumar, Sr. CCTC/MYS
18.
Shri Rupesh Kumar Chaubey, Asst/C&W/RDM/South Central Railway.
19.
Shri Raj Kumar Singh R/o Q.No. Mathurapur Colony, 67B, Rohtas, Bihar-821305.
20.
M/s MEL Training & Assessments Ltd., No.6, 6th Floor, C Wing, Mittal Towers, M.G.Road, Bengaluru.
21.
M/s Aptech Ltd., No.6, 6th Floor, C Wing, Mittal Towers, M.G.Road, Bengaluru.
22.
Unknown public servants
23.
Unknown private persons/companies.
[F. No. 228/4/2026-AVD-II]
SATYAM SRIVASTAVA, Under Secy.
नइ ददल्ली, 2 फरवरी, 2026
का.अ. 208.—केन् रीय सरकार, ददल् ली जविेि ृुजलस स्ट् थाृन ऄजधजनयम, 1946 (1946 का ऄजधजनयम सं. 25)
की धारा 5 की ईृ-धारा (1) सृर त धारा 6 द्वारा प्रदत्त िजियों का प्रयोग करते हुए, ईत्तराखंड राज् य सरकार की
ऄजधसूर्ना सं. 29/XX-4-2026-13(01)2026, देिरादून, ददनांक 10.01.2026, गृि ऄनुभाग-4 के माध्यम से िारी
सम्मजत से, थाना संत जविार, जिला देिरादून में भारतीय न्याय संजिता ( ीएनएस) की धारा 238, 249, 45 के तित
ृंिीकृत एफअइअर सं-06/2026 के ऄन्वेिण के जलए और आस सं ंध में दकसी दु्प्रेरणा, दु्प्रयास और िड़यंत्र या ईसी
संव्यविार में काररत ऄथवा ईन्िीं तथ्यों से ईत्ृन्न दकसी ऄन्य ऄृराध का ऄन्वेिण करने के जलए ददल्ली जविेि ृुजलस
स्ट्थाृन के सदस्ट्यों की िजियों और क्षेत्राजधकार का जवस्ट्तार समस्ट्त ईत्तराखंड राज्य में करती िज।
[फा. सं. 228/3/2026-एवीडी-II]
रािीव कुमार खरे, ऄवर सजर्व
New Delhi, the 2nd February, 2026
S.O. 208.—In exercise of the powers conferred by sub-section (1) of section 5 read with section 6 of the
Delhi Special Police Establishment Act, 1946 (Act No.25 of 1946), the Central Government with the consent of the
State
Government
of
Uttarakhand,
issued
vide
Notification
No.29/XX-4-2026-13(01)2026,
Dehradun,
Dated 10.01.2026, Home Section-4, hereby extends the powers and jurisdiction of the members of the Delhi Special
Police Establishment to the whole of the State of Uttarakhand for investigation of FIR No-06/2026 U/s 238, 249, 45
of Bharatiya Nyaya Sanhita (BNS) registered at PS Basant Vihar, District- Dehradun and any attempts, abetments and
conspiracies in relation to or in connection with above mentioned offence committed in the course of the same
transaction or arising out of the same facts of the said case.
[F. No. 228/3/2026-AVD-II]
RAJEEV KUMAR KHARA, Under Secy.
नइ ददल्ली, 11 फरवरी, 2026
का.अ. 209.—केंरीय सरकार, एतद् द्वारा, ददल्ली जविेि ृुजलस स्ट्थाृन ऄजधजनयम, 1946 (1946 का केन्रीय
ऄजधजनयम 25) की धारा 5 की ईृ-धारा (1) सृर त धारा 6 द्वारा प्रदत्त िजियों का प्रयोग करते हुए अदेि सं. एर्डी
147 सीओडी 2025, ेंगलुरु, ददनांक: 12.01.2026 के माध्यम से िारी कनाचटक राज् य सरकार की सम्मजत से श्री ऄजनमेि
गगच, ईृायुि, श्री ्ान प्रकाि, ऄधीक्षक और श्री जवक्रम दकिोर जवक्रम, जनरीक्षक (सभी सीमा िुल्क के ऄजधकारीगण) और
आसके साथ िी ऄन्य ऄ्ात लोक सेवक(कों) तथा ऄन्य ऄ्ात गजर-सरकारी व्यजि(यों) के जवरुद्ध भारतीय दंड संजिता की
धारा 120- ी सृर त भ्रष्टार्ार जनवारण ऄजधजनयम, 1988 (2018 में यथा संिोजधत) की धारा 7 और सी ीअइ द्वारा
ऄन्वेिण दकए िाने िेतु ऄजधसूजर्त दकसी ऄन्य ऄजधजनयमों के ऄंतगचत दकए गए ऄृराधों, ऄन्य संर्यी ऄृराधों और आनके
956
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
ऄन्वेिण/िााँर् के दौरान प्रकाि में अने वाले दकसी ऄन्य ऄृराध और साथ िी दकसी दु्प्रयास, दु्प्रेरण ऄथवा िड्यंत्र की
िााँर्/ऄन्वेिण करने के जलए ददल्ली जविेि ृुजलस स्ट्थाृन के सदस्ट्यों की िजियों और क्षेत्राजधकार का जवस्ट्तार करती िज।
[फा. सं. 228/7/2026-एवीडी-II]
सत् यम श्रीवास्ट् तव, ऄवर सजर्व
New Delhi, the 11th February, 2026
S.O. 209.—In exercise of the powers conferred by sub-section (1) of section 5 read with section 6 of the
Delhi Special Police Establishment Act, 1946 (Central Act 25 of 1946), the Central Government with the consent of
the State Government of Karnataka, issued vide Order No. HD 147COD 2025, Bengaluru, Dated:12.01.2026, hereby
extends the powers and jurisdiction of the members of the Delhi Special Police Establishment for
enquiry/investigation of offence against Shri Animesh Garg, Deputy Commissioner, Shri Gyan Prakash,
Superintendent and Shri Vikram Kishore Vikram, Inspector (all customs officials) and as well as other unknown
public servant(s) and unknown private person(s) for the offences under Section 120-B IPC read with Section 7 of the
Prevention of Corruption Act, 1988 (as amended in 2018) and other acts notified for investigation by CBI, other
cumulative offences and any other offence that may come to light during enquiry/investigation, including any attempt,
abetment or conspiracy.
[F. No. 228/7/2026-AVD-II]
SATYAM SRIVASTAVA, Under Secy.
नइ ददल्ली, 11 फरवरी, 2026
का.अ. 210.—केन्रीय सरकार, एतद् द्वारा, ददल्ली जविेि ृुजलस स्ट्थाृन ऄजधजनयम, 1946 (1946 का
ऄजधजनयम 25) की धारा 5 की ईृ-धारा (1) सृर त धारा 6 द्वारा प्रदत्त िजियों का प्रयोग करते हुए ज िार राज्य
सरकार की ऄजधसूर्ना सं. 09/सी ीअइ-80-03/2026 एर्ृी-1446, ददनांक 31.01.2026, गृि जवभाग (ृुजलस िाखा)
के माध्यम से िारी सम्मजत से जर्त्रगुप्त थाना, जिला ृटना में भारतीय न्याय संजिता की धारा 126(2)/115(2)/76/
109/3(5) के तित ददनांक 09.01.2026 को दिच मामला सं्या 14/2026 में ऄन्वेिण/ृयचवेक्षण एवं िांर् करने के जलए
ददल्ली जविेि ृुजलस स्ट्थाृन के सदस्ट्यों की िजियों और क्षेत्राजधकार का जवस्ट्तार समस्ट्त ज िार राज्य तथा आस मामले से
िुड़े ऄन्य स्ट्थानों में करती िज।
[फा. सं. 228/8/2026-एवीडी-II]
सत् यम श्रीवास्ट् तव, ऄवर सजर्व
New Delhi, the 11th February, 2026
S.O. 210.—In exercise of the powers conferred by sub-section (1) of section 5 read with section 6 of the
Delhi Special Police Establishment Act, 1946 (Act 25 of 1946), the Central Government with the consent of the State
Government of Bihar, issued vide Notification No.09/CBI-80-03/2026 HP-1446, dated 31.01.2026, Home
Department, (Police Branch), hereby extends the powers and jurisdiction of the members of Delhi Special Police
Establishment in the whole State of Bihar and other places connected with the case to investigate/supervise and
inquire into the Chitragupta Nagar Police Station, District Patna, Case No. 14/2026, Dated 09.01.2026 under
section-126(2)/115(2)/76/ 109/3(5) BNS.
[F. No. 228/8/2026-AVD-II]
SATYAM SRIVASTAVA, Under Secy.
नइ ददल्ली, 20 फरवरी, 2026
का.अ. 211.—केंरीय सरकार, एतद् द्वारा, ददल्ली जविेि ृुजलस स्ट्थाृन ऄजधजनयम, 1946 (1946 का केन्रीय
ऄजधजनयम 25) की धारा 5 की ईृ-धारा (1) सृर त धारा 6 द्वारा प्रदत्त िजियों का प्रयोग करते हुए अदेि सं. एर्डी
182 सीओडी 2025, ेंगलुरु, ददनांक: 22.01.2026 के माध्यम से िारी कनाचटक राज् य सरकार की सम्मजत से
श्री ी.एस.दीृक, मजसूर डाक मण्डल के ऄंतगचत, सरगुर ईृ डाकघर में ृोस्ट्टल सिायक, और ऄन्य ऄ्ात लोक सेवक(कों)
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
957
तथा ऄन्य ऄ्ात गजर-सरकारी व्यजि(यों) के जवरुद्ध भारतीय न्याय संजिता की धारा 61 (2) सृर त धाराएाँ 316(5),
318(4), 336(3), 340(2) और भ्रष्टार्ार जनवारण ऄजधजनयम, 1988 (2018 में यथा संिोजधत) की धारा 13(2)
सृर त धारा 13(1)(क) तथा अइटी ऄजधजनयम 2000 (2008 में यथा संिोजधत) की धारा 66ग के ऄंतगचत और
सी ीअइ द्वारा ऄन्वेिण दकए िाने िेतु ऄजधसूजर्त दकसी ऄन्य ऄजधजनयमों के ऄंतगचत दकए गए ऄृराधों, ऄन्य संर्यी
ऄृराधों और ऄन्वेिण/िााँर् के दौरान प्रकाि में अने वाले दकसी ऄन्य ऄृराध और साथ िी दकसी दु्प्रयास, दु्प्रेरण
ऄथवा िड्यंत्र की िााँर्/ऄन्वेिण करने के जलए ददल्ली जविेि ृुजलस स्ट्थाृन के सदस्ट्यों की िजियों और क्षेत्राजधकार का
जवस्ट्तार करती िज।
[फा. सं. 228/10/2026-एवीडी-II]
सत् यम श्रीवास्ट् तव, ऄवर सजर्व
New Delhi, the 20th February, 2026
S.O. 211.—In exercise of the powers conferred by sub-section (1) of section 5 read with section 6 of the
Delhi Special Police Establishment Act, 1946 (Central Act 25 of 1946), the Central Government with the consent of
the State Government of Karnataka, issued vide Order NO. HD 182 COD 2025, Bengaluru, Dated:22.01.2026, hereby
extends the powers and jurisdiction to the members of Delhi Special Police Establishment for enquiry/investigation of
offence against Shri B.S. Deepak, Postal Assistant at Sargur Sub Post Office, under Mysuru Postal Division and other
unknown public servants and private persons for commission of offences under section 61(2) read with sections
316(5), 318(4), 336(3), 340(2) of BNS, 2023 and section 13(2) read with section 13(1)(a) of PC Act, 1988 (as
amended in 2018) and section 66C of IT Act 2000 (as amended in 2008), and other acts notified for investigation by
CBI, other cumulative offences and any other offence that may come to light during enquiry/investigation, including
any attempt, abetment or conspiracy.
[F. No. 228/10/2026-AVD-II]
SATYAM SRIVASTAVA, Under Secy.
नइ ददल्ली, 23 फरवरी, 2026
का.अ. 212.—केंरीय सरकार, भारतीय नागररक सुरक्षा संजिता, 2023 (2023 का 46) की धारा 18 की
ईृधारा ) 8) द्वारा प्रदत्त िजियों का प्रयोग करते हुए, ऄजधविा श्री प्रताृ िी. ृजडक्कल को जविेि लोक ऄजभयोिक
जनयुि करती िज, िो ददल्ली जविेि ृुजलस प्रजतष्ठान (केन्रीय ऄन्वेिण ब्यूरो) द्वारा जविेि न्यायाधीि, केन्रीय ऄन्वेिण
ब्यूरो–तृतीय,
एरणाकुलम
के
समक्ष
संस्ट्थाजृत
वाद
सं्या
अरसी
10(एस)/2014/एससी ी/टीवीृीएम/
(एससी 343/2017) और ईससे ईत्ृन्न िोने वाली दकसी भी ऄृील, ृुनरीक्षण या ऄन्य मामलों में, िो जवजध द्वारा
स्ट्थाजृत दकसी ऄृीलीय या ृुनरीक्षण न्यायालय में िों, त तक ऄजभयोिन र्लाएगा, ि तक दक ईसका जनस्ट्तारण निीं
िो िाये या ऄगले अदेि तक, आनमे से िो भी ृिले िो।
[फा. सं. 225/1/2026-एवीडी-II]
सत् यम श्रीवास्ट् तव, ऄवर सजर्व
New Delhi, the 23rd February, 2026
S.O. 212.—In exercise of the powers conferred by sub-section (8) of Section 18 of the Bharatiya Nagarik
Suraksha Sanhita, 2023 (46 of 2023), the Central Government hereby appoints Shri Prathap G Padickal, Advocate as
Special Public Prosecutor for conducting prosecution of case number RC 10(S)/2014/SCB/TVPM (SC 343/2017)
instituted by the Delhi Special Police Establishment (Central Bureau of Investigation) before the Court of Special
Judge, CBI-III, Ernakulam and any appeal, revision or other matters arising out of it in any appellate or revisional
Court established by law for the time being in force, till its disposal or until further orders, whichever is earlier.
[F. No. 225/1/2026-AVD-II]
SATYAM SRIVASTAVA, Under Secy.
958
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
नइ ददल्ली, 23 फरवरी, 2026
का.अ. 213.—केन् रीय सरकार एतद् द्वारा ददल् ली जविेि ृुजलस स्ट् थाृन ऄजधजनयम, 1946 की धारा 5 की
ईृ-धारा (1) सृर त धारा 6 द्वारा प्रदत्त िजियों का प्रयोग करते हुए, जमजोरम राज् य सरकार की ऄजधसूर्ना
सं.सी13015/47/2025-वीअइिी: ददनांक अआिोल 30.10.2025, सतकचता जवभाग और िुजद्धृत्र ऄजधसूर्ना
सं. सी13015/47/2025-वीअइिी: ददनांक अआिोल 22.01.2026, सतकचता जवभाग के माध्यम से िारी सम्मजत से,
जमजोरम को-ऑृरेरटव ऄृेक्स अधक जल. के एक कमचर्ारी, नामतः श्रीमती सी. वनलालसॉमी, एिी-II द्वारा काररत
ऄजभकजथत प . 5,85,68,848.00/- की धोखाधड़ी के सं ंध में ऄृराध और अर्मथक ऄृराध, सीअइडी (ऄृराध),
जमजोरम, अआिोल में ीएनएस की धारा 316(5) के तित दिच एफअइअर सं. 1/2025, ददनांक 21/01/2025 का
ऄन्वेिण, और साथ िी ईि मामले से ईत्ृन्न ईसी संव्यविार में दकए गए ऄन्य ऄृराधों तथा ऐसे ऄृराध(धों) से िुड़े या
ईससे सं द्ध दकसी दु्प्रयास, दु्प्रेरणा और/ऄथवा िड्यंत्र एवं/ऄथवा समान तथ्यों से ईत्ृन्न ऄथवा समान संव्यविार के
ऄनुक्रम में काररत दकसी ऄन्य ऄृराध का ऄन्वेिण करने के जलए ददल्ली जविेि ृुजलस स्ट्थाृन के सदस्ट्यों की िजियों और
क्षेत्राजधकार का जवस्ट्तार संृूणच जमजोरम राज्य में करती िज क्योंदक सीवीसी, भारत सरकार के सतकचता मजनुऄल के ृजरा
8.13.1 में दकए गए प्रावधान के संदभच में प . 3.00 करोड़ और आससे उृर प .15.00 करोड़ तक की राजि के मामलों,
जिनमें कोइ कमचर्ारी प्रथम दृष्टया स्ट्ृष्ट प ृ से िाजमल ृाया िाता िज, का ऄन्वेिण सी ीअइ(भ्रष्टार्ार जनरोधक िाखा)
को सौंृा िाएगा।
[फा. सं. 228/9/2026-एवीडी-II]
सत् यम श्रीवास्ट् तव, ऄवर सजर्व
New Delhi, the 23rd February, 2026
S.O. 213.—In exercise of the powers conferred by sub-section (1) of section 5 read with section 6 of the
Delhi Special Police Establishment Act, 1946, the Central Government with the consent of the State Government of
Mizoram, issued vide Notification No.C.13015/47/2025-VIG: Dated Aizawl 30.10.2025, Vigilance Department and
Corrigendum Notification No.C.13015/47/2025-VIG: Dated Aizawl 22.01.2026 Vigilance Department, hereby
extends powers and jurisdiction of the members of Delhi Special Police Establishment in the whole State of Mizoram
for investigation of FIR No. 1/2025 dated 21/01/2025 u/s 316(5) BNS registered at Crime & Economic Offences,
CID(Crime), Mizoram, Aizawl regarding fraud allegedly committed by one staff of Mizoram Co-Operative Apex
Bank Ltd. namely Smt. C. Vanlalsawmi, AG–II amounting to Rs 5,85,68,848.00/- as the cases involving an amount of
Rs 3.00 crore and above upto Rs 15.00 crore where staff involvement is prima facie evident are to be reported to the
CBI(ACB) in terms of para 8.13.1 of Vigilance Manual, CVC, Govt of India, and also any other offences committed
in the course of the same transaction arising out of the said case and any attempt, abetment and/or conspiracy, in
relation to or in connection with such offence(s) and/or for any other offence committed in the course of the same
transaction or arising out of the same facts.
[F. No. 228/9/2026-AVD-II]
SATYAMSRIVASTAVA, Under Secy.
नइ ददल्ली, 25 फरवरी, 2026
का.अ. 214.—केंरीय सरकार, एतद् द्वारा, ददल्ली जविेि ृुजलस स्ट्थाृन ऄजधजनयम, 1946 (1946 का केंरीय
ऄजधजनयम 25) की धारा 5 की ईृ-धारा (1) सृर त धारा 6 द्वारा प्रदत्त िजियों का प्रयोग करते हुए तजमलनाडु राज्य
सरकार की ऄजधसूर्ना सं. िी.ओ.(2डी).सं.23 ददनांक: 21.01.2026, गृि(नागररकता) जवभाग के माध्यम से िारी
सम्मजत से ए-1 श्री ऄजभनंदन ससि,अिुजलजृ, गजर-जनगजमत वाडच-17(4), अयकर जवभाग, ग्रीम्स रोड, र्ेन्नइ के जवरुद्ध
भ्रष्टार्ार जनवारण ऄजधजनयम (विच 2018 में यथा संिोजधत) की धारा 7 के तित ऄृराध काररत करने के जलए ददनांक
02.02.2026 को ृंिीकृत अरसी032 2026ए0002 में ृंिीकरण और ऄन्वेिण करने िेतु ददल्ली जविेि ृुजलस स्ट्थाृन
के सदस्ट्यों की िजियों और क्षेत्राजधकार का जवस्ट्तार (कायोत्तर प्रभाव से, ददनांक 02.02.2026 से) समस्ट्त तजमलनाडु
राज्य में करती िज।
[फा. सं. 228/11/2026-एवीडी-II]
सत् यम श्रीवास्ट् तव, ऄवर सजर्व
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
959
New Delhi, the 25th February, 2026
S.O. 214.—In exercise of the powers conferred by sub-section (1) of section 5 read with section 6 of the
Delhi Special Police Establishment Act, 1946 (Central Act 25 of 1946), the Central Government with the consent of
the State Government of Tamil Nadu, issued vide Notification No. G.O.(2D).No.23 Dated: 21.01.2026, Home
(Citizenship) Department, hereby extends the power and jurisdiction of members of the Delhi Special Police
Establishment in the whole of the State of Tamil Nadu (ex post facto w.e.f. 02.02.2026) for registration and
investigation in RC032 2026A0002 registered on 02.02.2026 against A-1 Shri Abhinandan Singh, Stenographer, Non-
Corporate Ward-17(4), Income Tax Department, Greams Road, Chennai for committing offence u/s 7 of PC Act (As
amended in 2018).
[F. No. 228/11/2026-AVD-II]
SATYAMSRIVASTAVA, Under Secy.
स्ट्वास्ट्थ्य एवं ृररवार कल्याण मंत्रालय
(दंत जिक्षा ऄनुभाग)
नइ ददल्ली, 18 िुलाइ, 2025
का.अ. 215.—केन्र सरकार, दंत जर्दकत्सक ऄजधजनयम, 1948 (1948 का 16) की धारा 10 की ईृधारा (2)
द्वारा प्रदत्त िजियों का प्रयोग करते हुए, भारतीय दंत ृररिद के ृरामिच के ृश्चात, ईि ऄजधजनयम की ऄनुसूर्ी के भाग-I
में जनम्नजलजखत संिोधन करती िज, ऄथाचत्:-
दंत जर्दकत्सक ऄजधजनयम, 1948 (1948 का 16) की ऄनुसूर्ी के भाग-I में क्रम सं्या 151 के सामने कॉलम 2
और 3 की मौिूदा प्रजवजष्टयों में, ृीडीएम डेंटल कॉलेि और ररसर्च आंस्ट्टीट्यूट, िादुरगढ़, िररयाणा के ीडीएस छात्रों के
सं ंध में ृीडीएम जवश्वजवद्यालय, िादुरगढ़ (िररयाणा) द्वारा प्रदान की गइ डेंटल जडग्री की मान्यता से सं ंजधत
जनम्नजलजखत प्रजवजष्टयााँ ऄंतर्मवष्ट की िाएंगी, ऄथाचत्:
ृीडीएम डेंटल कॉलेि एवं ऄनुसंधान संस्ट्थान, िादुरगढ़, िररयाणा
जर्लर ऑफ डेंटल सिचरी
(2019-20 और 2020-21 जर्, एक ार के ईृाय के प ृ में,
एक जमसाल के प ृ में ईद्धृत निीं दकया िाना र्ाजिए)
ीडीएस,
ृीडीएम जवश्वजवद्यालय, िादुरगढ़ (िररयाणा)
[फा. सं. वी.12017/21/2023-डीइ]
ऄजमत कुमार, ऄवर सजर्व
MINISTRY OF HEALTH AND FAMILY WELFARE
(Dental Education Section)
New Delhi, the 18th July, 2025
S.O. 215.—In exercise of the powers conferred by sub-section (2) of section 10 of the Dentists Act. 1948 (16
of 1948), the Central Government, after consultation with the Dental Council of India, hereby, makes the following
amendments in Part-I of the Schedule to the said Act, namely:-
In the existing entries of column 2 & 3 against Serial No. 151, in Part-I of the Schedule to the Dentists
Act, 1948 (16 of 1948) pertaining to recognition of Dental Degrees awarded by PDM University, Bahadurgarh
(Haryana) in respect of BDS students of PDM Dental College & Research Institute, Bahadurgarh, Haryana the
following entries shall be inserted, namely:
PDM Dental College & Research Institute, Bahadurgarh, Haryana
Bachelor of Dental Surgery
(2019-20 and 2020-21 batches, as a one-time measure,
not to be quoted as a precedent)
BDS,
PDM University, Bahadurgarh (Haryana)
[F. No. V.12017/21/2023-DE]
AMIT KUMAR, Under Secy.
960
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
नइ ददल्ली, 18 िुलाइ, 2025
का.अ. 216.—केन्र सरकार, दंत जर्दकत्सक ऄजधजनयम, 1948 (1948 का 16) की धारा 10 की ईृ-धारा (2)
द्वारा प्रदत्त िजियों का प्रयोग करते हुए, भारतीय दंत जर्दकत्सा ृररिद से ृरामिच के ृश्चात, ईि ऄजधजनयम की ऄनुसूर्ी
के भाग-I में जनम्नजलजखत संिोधन करती िज, ऄथाचत:-
दंत जर्दकत्सक ऄजधजनयम, 1948 (1948 का 16) की ऄनुसूर्ी के भाग-I में क्रम सं्या 151 के सामने कॉलम 2
और 3 की मौिूदा प्रजवजष्टयों में ृीडीएम दंत जर्दकत्सा कॉलेि एवं ऄनुसंधान संस्ट्थान, िादुरगढ़, िररयाणा के एमडीएस
छात्रों के जलए ृीडीएम जवश्वजवद्यालय, िादुरगढ़ (िररयाणा) द्वारा प्रदान की गइ दंत जर्दकत्सा ईृाजधयों की मान्यता के
सं ंध में जनम्नजलजखत प्रजवजष्टयों, को ऄंतर्मवष्ट दकया िाएगा नामत::
ृीडीएम दंत जर्दकत्सा कॉलेि एवं ऄनुसंधान संस्ट्थान, िादुरगढ़, िररयाणा
ृीररयोडोंटोलॉिी
(3 सीटों के साथ, 2019-20 ऐंड 2020-21 जर्, एक
ार के ईृाय के प ृ में, एक जमसाल के प ृ में ईद्धृत निीं
दकया िाना र्ाजिए)
एमडीएस ( ृीररयोडोंटोलॉिी)
ृीडीएम जवश्वजवद्यालय, िादुरगढ़ (िररयाणा)
ओरल ऐंड मजक्सलोफेजियल ृजथोलॉिी
(3 सीटों के साथ, 2019-20 ऐंड 2020-21 जर्, एक
ार के ईृाय के प ृ में, एक जमसाल के प ृ में ईद्धृत निीं
दकया िाना र्ाजिए)
एमडीएस (ओरल ऐंड मजक्सलोफेजियल ृजथोलॉिी )
ृीडीएम जवश्वजवद्यालय, िादुरगढ़ (िररयाणा)
ओरल ऐंड मजक्सलोफेजियल सिचरी
(3 सीटों के साथ, 2019-20 ऐंड 2020-21 जर्, एक
ार के ईृाय के प ृ में, एक जमसाल के प ृ में ईद्धृत निीं
दकया िाना र्ाजिए)
एमडीएस (ओरल ऐंड मजक्सलोफेजियल सिचरी)
ृीडीएम जवश्वजवद्यालय, िादुरगढ़ (िररयाणा)
ओरल मेजडजसन ऐंड रेजडयोलॉिी
(3 सीटों के साथ, 2019-20 ऐंड 2020-21 जर्, एक
ार के ईृाय के प ृ में, एक जमसाल के प ृ में ईद्धृत निीं
दकया िाना र्ाजिए)
एमडीएस (ओरल मेजडजसन ऐंड रेजडयोलॉिी )
ृीडीएम जवश्वजवद्यालय, िादुरगढ़ (िररयाणा)
कंिरवेरटव डेंरटस्ट्री ऐंड एंडोडोंरटक्स
(3 सीटों के साथ, 2019-20 ऐंड 2020-21 जर्, एक
ार के ईृाय के प ृ में, एक जमसाल के प ृ में ईद्धृत निीं
दकया िाना र्ाजिए)
एमडीएस (कंिरवेरटव डेंरटस्ट्री ऐंड एंडोडोंरटक्स )
ृीडीएम जवश्वजवद्यालय, िादुरगढ़ (िररयाणा)
ऑथोडोंरटक्स ऐंड डेंटोफेजियल ऑथोृेजडक्स
(3 सीटों के साथ, 2019-20 ऐंड 2020-21 जर्, एक
ार के ईृाय के प ृ में, एक जमसाल के प ृ में ईद्धृत निीं
दकया िाना र्ाजिए)
एमडीएस (ऑथोडॉजन्टक्स ऐंड डेंटोफेजियल ऑथोृेजडक्स )
ृीडीएम जवश्वजवद्यालय, िादुरगढ़ (िररयाणा)
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
961
प्रोस्ट्थोडोजन्टक्स ऐंड क्राईन ऐंड जिि
(3 सीटों के साथ, 2019-20 ऐंड 2020-21 जर्, एक
ार के ईृाय के प ृ में, एक जमसाल के प ृ में ईद्धृत निीं
दकया िाना र्ाजिए)
एमडीएस (प्रोस्ट्थोडोजन्टक्स ऐंड क्राईन एंड जिि )
ृीडीएम जवश्वजवद्यालय, िादुरगढ़ (िररयाणा)
ृीडीएररक ऐंड प्रीवेंरटव डेंरटस्ट्री
(3 सीटों के साथ, 2019-20 ऐंड 2020-21 जर्, एक
ार के ईृाय के प ृ में, एक जमसाल के प ृ में ईद्धृत निीं
दकया िाना र्ाजिए)
एमडीएस (ृीडीएररक ऐंड प्रीवेंरटव डेजन्सटी)
ृीडीएम जवश्वजवद्यालय, िादुरगढ़ (िररयाणा)
[फा. सं. वी.12017/21/2023-डीइ]
ऄजमत कुमार, ऄवर सजर्व
New Delhi, the 18th July, 2025
S.O. 216.—In exercise of the powers conferred by sub-section (2) of section 10 of the Dentists Act, 1948 (16
of 1948), the Central Government, after consultation with the Dental Council of India, hereby, makes the following
amendments in Part-I of the Schedule to the said Act, namely:-
In the existing entries of column 2 & 3 against Serial No.151, in Part-I of the Schedule to the Dentists Act,
1948 (16 of 1948) pertaining to recognition of Dental Degrees awarded by PDM University, Bahadurgarh
(Haryana) in respect of MDS students of PDM Dental College & Research Institute, Bahadurgarh, Haryana the
following entries shall be inserted, namely:
PDM Dental College & Research Institute, Bahadurgarh, Haryana
Periodontology
(with 3 seats, 2019-20 and 2020-21 batches, as a one-
time measure, not to be quoted as a precedent)
MDS (Periodontology)
PDM University, Bahadurgarh (Haryana)
Oral and Maxillofacial Pathology
(with 3 seats, 2019-20 and 2020-21 batches, as a one-
time measure, not to be quoted as a precedent)
MDS (Oral and Maxillofacial Pathology)
PDM University, Bahadurgarh (Haryana)
Oral & Maxillofacial Surgery
(with 3 seats, 2019-20 and 2020-21 batches, as a one-
time measure, not to be quoted as a precedent)
MDS (Oral & Maxillofacial Surgery)
PDM University, Bahadurgarh (Haryana)
Oral Medicine and Radiology
(with 3 seats, 2019-20 and 2020-21 batches, as a one-
time measure, not to be quoted as a precedent)
MDS (Oral Medicine and Radiology)
PDM University, Bahadurgarh (Haryana)
Conservative Dentistry and Endodontics
(with 3 seats, 2019-20 and 2020-21 batches, as a one-
time measure, not to be quoted as a precedent)
MDS (Conservative Dentistry and Endodontics)
PDM University, Bahadurgarh (Haryana)
Orthodontics and Dentofacial Orthopedics
(with 3 seats, 2019-20 and 2020-21 batches, as a one-
time measure, not to be quoted as a precedent)
MDS (Orthodontics and Dentofacial Orthopedics)
PDM University, Bahadurgarh (Haryana)
Prosthodontics and Crown & Bridge
(with 3 seats, 2019-20 and 2020-21 batches, as a one-
time measure, not to be quoted as a precedent)
MDS (Prosthodontics and Crown & Bridge)
PDM University, Bahadurgarh (Haryana)
962
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
Pediatric and Preventive Dentistry
(with 3 seats, 2019-20 and 2020-21 batches, as a one-
time measure, not to be quoted as a precedent)
MDS (Pediatric and Preventive Dentistry)
PDM University, Bahadurgarh (Haryana)
[F. No. V. 12017/21/2023-DE]
AMIT KUMAR, Under Secy.
नइ ददल्ली, 8 ऄक् तू र, 2025
का.अ. 217.—केन्रीय सरकार, दंत जर्दकत्सक ऄजधजनयम, 1948 (1948 का 16) की धारा 10 की ईृधारा (2)
द्वारा प्रदत्त िजियों का प्रयोग करते हुए, भारतीय दंत जर्दकत्सा ृररिद के ृरामिच के ृि्र्ात, ईि ऄजधजनयम की
ऄनुसूर्ी के भाग-I में एतदद्वारा जनम्नजलजखत संिोधन करती िज, ऄथाचत् :-
ृजसदफक मेजडकल यूजनवर्मसटी, ईदयृुर द्वारा ृजसदफक डेन्टल कॉलेि एण्ड ररसर्च सेंटर, ईदयृुर के एमडीएस
छात्रों को प्रदान की गइ दंत जर्दकत्सा जडग्री की मान्यता से सं ंजधत दंत जर्दकत्सक ऄजधजनयम, 1948 (1948 का 16) की
ऄनुसूर्ी के भाग- I में क्रम स्या 139 के सामने कॉलम 2 और 3 की मौिूदा प्रजवजष्टयों में जनम्नजलजखत प्रजवजष्टयां
ऄंत:स्थाजृत की िाएंगी, ऄथाचत्:
ृजसदफक डेन्टल कॉलेि एण्ड ररसर्च सेंटर, ईदयृुर
ओरल और मजक्सलोफेजियल सिचरी
(3 सीटों के साथ, यदद 28.09.2024 को या ईसके
ाद स्वीकृत की िाती िज)।
एमडीएस (ओरल और मजक्सलोफेजियल सिचरी)
ृजसदफक मेजडकल यूजनवर्मसटी, ईदयृुर
ऑथोडोंरटक्स और डेंटोफेजियल ऑथोृेजडक्स
(3 सीटों के साथ, यदद 28.09.2024 को या ईसके
ाद स्वीकृत की िाती िज)।
एमडीएस (ऑथोडोंरटक्स और डेंटोफेजियल ऑथोृेजडक्स)
ृजसदफक मेजडकल यूजनवर्मसटी, ईदयृुर
ाल दंत जर्दकत्सा और जनवारक दंत जर्दकत्सा
(2 सीटों के साथ, यदद 25.09.2024 को या ईसके
ाद स्वीकृत की िाती िज)।
एमडीएस ( ाल दंत जर्दकत्सा और जनवारक दंत जर्दकत्सा)
ृजसदफक मेजडकल यूजनवर्मसटी, ईदयृुर
[फा. सं. वी.12017/23/2025-डीइ]
ऄजमत कुमार, ऄवर सजर्व
New Delhi, the 8th October, 2025
S.O. 217.—In exercise of the powers conferred by sub-section (2) of section 10 of the Dentists Act, 1948 (16
of 1948), the Central Government, after consultation with the Dental Council of India, hereby, makes the following
amendments in Part-I of the Schedule to the said Act, namely:-
In the existing entries of column 2 & 3 against Serial No.139, in Part-I of the Schedule to the Dentists Act,
1948 (16 of 1948) pertaining to recognition of Dental Degrees awarded by Pacific Medical University, Udaipur in
respect of MDS students of Pacific Dental College & Research Centre, Udaipur the following entries shall be
inserted, namely:
Pacific Dental College & Research Centre, Udaipur
Oral and Maxillofacial Surgery
(with 3 seats, if granted on or after 28.09.2024)
MDS (Oral and Maxillofacial Surgery)
Pacific Medical University, Udaipur
Orthodontics and Dentofacial Orthopedics
MDS (Orthodontics and Dentofacial Orthopedics)
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
963
(with 3 seats, if granted on or after 28.09.2024)
Pacific Medical University, Udaipur
Pediatric and Preventive Dentistry
(with 2 seats, if granted on or after 25.09.2024)
MDS (Pediatric and Preventive Dentistry)
Pacific Medical University, Udaipur
[F. No. V. 12017/23/2025-DE]
AMIT KUMAR, Under Secy.
नइ ददल्ली, 21 ऄक् तू र, 2025
का.अ. 218.—दंत जर्दकत्सक ऄजधजनयम, 1948 (1948 का 16) की धारा 10 की ईृधारा (2) द्वारा प्रदत्त
िजियों का प्रयोग करते हुए, केंर सरकार, भारतीय दंत ृररिद के ृरामिच के ृश्चात, ईि ऄजधजनयम की ऄनुसूर्ी के
भाग-I में जनम्नजलजखत संिोधन करती िज, ऄथाचत्:-
दंत जर्दकत्सक ऄजधजनयम, 1948 (1948 का 16) की ऄनुसूर्ी के भाग-I में क्रम सं्या 156 के सामने कॉलम 2
और 3 की मौिूदा प्रजवजष्टयों में, ऄटल ज िारी वािृेयी जर्दकत्सा जवश्वजवद्यालय, लखनउ द्वारा डी.िे. कॉलेि ऑफ डेंटल
साआंसेि एंड ररसर्च, मोदी नगर के एमडीएस छात्रों के सं ंध में प्रदान की गइ दंत जडग्री की मान्यता के सं ंध में
जनम्नजलजखत प्रजवजष्टयां डाली िाएंगी, ऄथाचत:
डी.िे. कॉलेि ऑफ डेंटल साआंसेि एंड ररसर्च, मोदी नगर
कंिवेरटव डेंरटस्ट्री और एंडोडोंरटक्स
(6 सीटों के साथ, यदद 26.10.2024 को या ईसके ाद प्रदान की
िाती िज)
एमडीएस (कंिवेरटव डेंरटस्ट्री और एंडोडोंरटक्स)
ऄटल ज िारी वािृेयी जर्दकत्सा जवश्वजवद्यालय, लखनउ
ाल जर्दकत्सा और जनवारक दंत जर्दकत्सा
(6 सीटों के साथ, यदद 13.11.2024 को या ईसके ाद प्रदान की
िाती िज)
एमडीएस ( ाल जर्दकत्सा और जनवारक दंत जर्दकत्सा)
ऄटल ज िारी वािृेयी जर्दकत्सा जवश्वजवद्यालय, लखनउ
[फा. सं. वी.12017/17/2025-डीइ]
ऄजमत कुमार, ऄवर सजर्व
New Delhi, the 21st October, 2025
S.O. 218.—In exercise of the powers conferred by sub-section (2) of section 10 of the Dentists Act, 1948
(16 of 1948), the Central Government, after consultation with the Dental Council of India, hereby, makes the
following amendments in Part-I of the Schedule to the said Act, namely:-
In the existing entries of column 2 & 3 against Serial No. 156, in Part-I of the Schedule to the Dentists Act,
1948 (16 of 1948) pertaining to recognition of Dental Degrees awarded by Atal Bihari Vajpayee Medical
University, Lucknow in respect of MDS students of D.J. College of Dental Sciences & Research, Modi Nagar the
following entries shall be inserted, namely:
D.J. College of Dental Sciences & Research, Modi Nagar
Conservative Dentistry & Endodontics
(with 6 seats, if granted on or after 26.10.2024)
MDS (Conservative Dentistry & Endodontics)
Atal Bihari Vajpayee Medical University, Lucknow
Pediatric and Preventive Dentistry
(with 6 seats, if granted on or after 13.11.2024)
MDS (Pediatric and Preventive Dentistry)
Atal Bihari Vajpayee Medical University, Lucknow
[F. No. V. 12017/17/2025-DE]
AMIT KUMAR, Under Secy.
964
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
नइ ददल्ली, 22 ऄक् तू र, 2025
का.अ. 219.— केंरीय सरकार, दंत जर्दकत्सक ऄजधजनयम, 1948 (1948 का 16) की धारा 10 की ईृधारा
(2) द्वारा प्रदत्त िजियों का प्रयोग करते हुए, भारतीय दंत जर्दकत्सा ृररिद के ृरामिच के ृि्र्ात्, ईि ऄजधजनयम की
ऄनुसूर्ी के भाग-I में जनम्नजलजखत संिोधन करती िज, ऄथाचत्:-
ऄजखल भारतीय अयुर्मव्ान संस्ट्थान, रायृुर द्वारा ऄजखल भारतीय अयुर्मव्ान संस्ट्थान, रायृुर के एमडीएस छात्रों को
प्रदान की गइ दंत जर्दकत्सा जडजग्रयों की मान्यता से सं ंजधत दंत जर्दकत्सक ऄजधजनयम, 1948 (1948 का 16) की
ऄनुसूर्ी के भाग-I में क्रम सं्या 148 के सामने कॉलम 2 और 3 की मौिूदा प्रजवजष्टयों में जनम्नजलजखत प्रजवजष्टयां
ऄंत:स्थाजृत की िाएंगी, ऄथाचत्:
ऄजखल भारतीय अयुर्मव्ान संस्ट्थान, रायृुर
ाल जर्दकत्सा एवं जनवारक दंत जर्दकत्सा
(26.08.2024 को या ईसके ाद स्ट्वीकृत िोने ृर 2 सीटों के
साथ)
एमडीएस ( ाल जर्दकत्सा एवं जनवारक दंत जर्दकत्सा)
ऄजखल भारतीय अयुर्मव्ान संस्ट्थान, रायृुर
[फा. सं. वी.12025/47/2022-डीइ]
ऄजमत कुमार, ऄवर सजर्व
New Delhi, the 22nd October, 2025
S.O. 219.—In exercise of the powers conferred by sub-section (2) of section 10 of the Dentists Act, 1948 (16
of 1948), the Central Government, after consultation with the Dental Council of India, hereby, makes the following
amendments in Part-I of the Schedule to the said Act, namely:-
In the existing entries of column 2 & 3 against Serial No. 148, in Part-I of the Schedule to the Dentists
Act, 1948 (16 of 1948) pertaining to recognition of Dental Degrees awarded by All India Institute of Medical
Sciences, Raipur in respect of MDS students of All India Institute of Medical Sciences, Raipur the following
entries shall be inserted, namely:
All India Institute of Medical Sciences, Raipur
Pediatric & Preventive Dentistry
(with 2 seats if granted on or after 26.08.2024)
MDS (Pediatric & Preventive Dentistry)
All India Institute of Medical Sciences, Raipur
[F. No. V. 12025/47/2022-DE]
AMIT KUMAR, Under Secy.
नइ ददल्ली, 1 ददसम् र, 2025
का.अ. 220.—दंत जर्दकत्सक ऄजधजनयम, 1948 (1948 का 16) की धारा 10 की ईृधारा (2) द्वारा प्रदत्त
िजियों का प्रयोग करते हुए, केन्रीय सरकार, भारतीय दंत जर्दकत्सा ृररिद से ृरामिच के ृश्चात, एतद्-द्वारा ईि
ऄजधजनयम की ऄनुसूर्ी के भाग-I में जनम्नजलजखत संिोधन करती िज, ऄथाचत्:-
केरल यूजनवर्मसटी ऑफ िेल् थ साआंसेस, केरल के एमडीएस छात्रों के सं ंध में एडुकेयर आंस्ट् टीटयूट ऑफ डेंटल
साआंसेस, मलाप् ृुरम, केरल द्वारा प्रदान की गइ दंत जर्दकत्सा जडग्री की मान्यता से सं ंजधत दंत जर्दकत्सक ऄजधजनयम,
1948 (1948 का 16) की ऄनुसूर्ी के भाग-I में क्रम सं्या 97 के सामने कॉलम 2 और 3 की मौिूदा प्रजवजष्टयों में
जनम्नजलजखत प्रजवजष्टयां ऄंत:स्ट्थाजृत की िाएंगी, नामत:
एडुकेयर आंस्ट् टीटयूट ऑफ डेंटल साआंसेस, मलाप् ृुरम, केरल
कंिरवेरटव दंत जर्दकत्सा और एंडोडोंरटक्स
(3 सीटों के साथ, यदद 08.01.2025 को या ईसके ाद प्रदान
की िाती िज)
एमडीएस (कंिरवेरटव दंत जर्दकत्सा और एंडोडोंरटक्स)
केरल यूजनवर्मसटी ऑफ िेल् थ साआंसेस, केरल
ृेरीओडोंटोलोिी
एमडीएस (ृेरीओडोंटोलोिी)
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
965
(3 सीटों के साथ, यदद 08.01.2025 को या ईसके ाद प्रदान
की िाती िज)
केरल यूजनवर्मसटी ऑफ िेल् थ साआंसेस, केरल
ऑथोडोंरटक्स और डेंटोफेजियल ऑथोृेजडक्स
(3 सीटों के साथ, यदद 08.01.2025 को या ईसके ाद प्रदान
की िाती िज)
एमडीएस (ऑथोडोंरटक्स और डेंटोफेजियल ऑथोृेजडक्स)
केरल यूजनवर्मसटी ऑफ िेल् थ साआंसेस, केरल
[फा. सं. वी. 12017/29/2025-डीइ]
ऄजमत कुमार, ऄवर सजर्व
New Delhi, the 1st December, 2025
S.O. 220.—In exercise of the powers conferred by sub-section (2) of section 10 of the Dentists Act, 1948 (16
of 1948), the Central Government, after consultation with the Dental Council of India, hereby, makes the following
amendments in Part-I of the Schedule to the said Act, namely:
In the existing entries of column 2 & 3 against Serial No. 97, in Part-I of the Schedule to the Dentists Act,
1948 (16 of 1948) pertaining to recognition of Dental Degrees awarded by Kerala University of Health Sciences,
Kerala in respect of MDS students of Educare Institute of Dental Sciences, Malappuram, Kerala the following
entries shall be inserted, namely:
Educare Institute of Dental Sciences, Malappuram, Kerala
Conservative Dentistry & Endodontics
(with 3 seats, if granted on or after 08.01.2025)
MDS (Conservative Dentistry & Endodontics)
Kerala University of Health Sciences, Kerala
Periodontology
(with 3 seats, if granted on or after 08.01.2025)
MDS (Periodontology)
Kerala University of Health Sciences, Kerala
Orthodontics and Dentofacial Orthopedics
(with 3 seats, if granted on or after 08.01.2025)
MDS (Orthodontics and Dentofacial Orthopedics)
Kerala University of Health Sciences, Kerala
[F. No. V.12017/29/2025-DE]
AMIT KUMAR, Under Secy.
श्रम और रोिगार मंत्रालय
नइ ददल्ली, 22 फरवरी, 2026
का.अ. 221.—vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa] dsUnzh;
ljdkj एयर आंजडया जलजमटेड ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V vkS|ksfxd
fookn esa
–सि–
] नं. 2. मुं इ ds iapkV (संदभच
सं्या सीिीअइटी-2/54/2008) dks izdkf”kr djrh gS] tks dsUnzh; ljdkj dks
dks izkIr gqvk
FkkA
[सं. एल -11012/11/2008-अइ. अर.(सी.एम-I)]
सलोनी, ईृ जनदेिक/सलक ऄजधकारी
MINISTRY OF LABOUR AND EMPLOYMENT
New Delhi, the 22nd February, 2026
S.O. 221.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. REFERENCE No.CGIT- 2/54/2008) of the Central Government
Industrial Tribunal-cum-Labour Court,No.2, Mumbai as shown in the Annexure, in the industrial dispute between the
Management of Air India Limitet and their workmen, received by the Central Government on 14/020/2026.
[No. L-11012/11/2008 – IR (CM-I)]
SALONI, Dy. Director/Link officer
966
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
ANNEXURE
BEFORE JUSTICE RETIRED SHIV SHANKER PRASAD
PRESIDING OFFICER/LINK OFFICER
THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL NO.2, MUMBAI
PRESENT
JUSTICE RETIRED SHIV SHANKER PRASAD
Presiding Officer/Link Officer
REFERENCE NO. CGIT-2/54 of 2008
EMPLOYERS IN RELATION TO THE MANAGEMENT OF
Party No. 1 M/s. Air India Ltd.
The Chairman and Managing Director,
Air India Ltd.,
Air India Building,
Nariman Point,
Mumbai 400 021.
State: Maharashtra.
AND
THEIR WORKMAN.
Party No.2 (Mr. Chandrakant Shankar Shirsat)
Flat No. 15/4,
Old Air India Colony,
Santa Cruz,
Mumbai- 400 029.
State: Maharashtra.
APPEARANCES:
Management
:
Miss Deepika Agrawal.
Advocate
Workmen
: No appearance.
AWARD
(Delivered on 22-01-2026)
1.
This Reference has been made by the Central Government in exercise of powers under clause (d) of sub-
section (1) and sub-section (2A) of Section 10 of the Industrial Disputes Act, 1947, vide Government of India,
Ministry of Labour & Employment, New Delhi, order No. L-11012/11/2008 (IR(CM-I) dated 04.08.2008. The terms
of reference given in the schedule are as follows:
“ i) Whether the action of the management of M/s. Air India Limited (Now NACIL), Mumbai, in
dismissing Sh. Chandrakant Shankar Shirsat, Senior Aircraft Engineer from the services w.e.f. 22.12.1999
is justified and legal? ii) To what relief is the concerned workman entitled?”
2.
The case is called out today. The learned counsel for the respondent Miss Deepika Agrawal is present before
the court but no one is present on behalf of the workman/petitioner. From perusal of record, it is apparent that, the
workman/petitioner is not responding and attending the Court since 13.02.2019 long back. Although, Statement of
Claim & Written Statements have been filed by the parties respectively. The petitioner/workman has also filed his
affidavit as an evidence but the petitioner is not coming to the court to prove the contents of his affidavit as well as
the contents of the Statement of Claim. No other evidence has been filed by the petitioner to prove his case. The
petitioner is not coming to the Court since long back. It appears that, the petitioner is not interested to contest the case
furthermore. The claim of the petitioner is not proved. So, the case is closed.
Hence, it is ordered.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
967
ORDER
i)
The action of the management of M/s. Air India Limited (Now NACIL), Mumbai, in
dismissing Sh. Chandrakant Shankar Shirsat, Senior Aircraft Engineer from the services
w.e.f. 22.12.1999 is justified and legal.
ii)
The concerned workman is not entitled to any relief.
Date: 22-01-2026
Justice SHIV SHANKER PRASAD, Presiding Officer/Link Officer
नइ ददल्ली, 22 फरवरी, 2026
का.अ. 222.—vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa] dsUnzh;
ljdkj एस.सी.सी.एल.ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V vkS|ksfxd fookn esa
औद्योजगक न्यायाजधकरण-सि-श्रम न्यायालय-सि- ऄजतररि। जिला. एवं सत्र न्यायालय, गोदावरीखानी ds iapkV
(ृिर्ान
. 64/2025) dks izdkf”kr djrh gS] tks dsUnzh; ljdkj dks 17
dks izkIr
gqvk FkkA
[सं. एल -22013/01/2026-अइ. अर.(सी.एम-II)]
सलोनी, ईृ जनदेिक
New Delhi, the 22nd February, 2026
S.O. 222.— In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central Government
hereby publishes the Award (ID. No. 64/2025) of the INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT-
CUM- ADDL. DIST. & SESSIONS COURT, GODAVARIKHANI as shown in the Annexure, in the industrial
dispute between the Management of S.C.C.L. and their workmen, received by the Central Government
on 17/02/2026.
[No. L-22013/01/2026– IR (CM-II)]
SALONI, Dy. Director/Link officer
ANNEXURE
BEFORE THE CHAIRMAN, INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT-CUM- ADDL. DIST. &
SESSIONS COURT, GODAVARIKHANI.
PRESENT:- SRI Dr.T.SRINIVASA RAO,
CHAIRMAN-CUM-PRESIDING OFFICER.
THURSDAY, ON THIS THE 29th DAY OF JANUARY, 2026.
I.D.No. 64 of 2025
Between:-
Chinthala Sampath, S/o. Shankar, Ex-General Mazdoor, E.C.No. 2389604, Age: 32 years, C/o. Sri S. Sanjay Kumar,
Advocate,
H.No.19-1-103/4, Markandeya Colony, Godavarikhani,
District: Peddapalli - 505 209 (Telangana State).
…Petitioner/Workman
AND
1. The Supdt. of Mines,
Singareni Collieries Company Ltd., Kasipet 2-Incline,
Mandamarri Area, Mandamarri, District: Mancherial (T.S).
2. The General Manager,
Singareni Collieries Company Ltd., Mandamarri Area,
Mandamarri, District: Mancherial (T.S).
968
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
3. The Chairman & Managing Director,
Singareni Collieries Company Ltd.,
P.O: Kothagudem, District: Badradri Kothagudem (T.S).
...Respondents/Management
This case coming before me for final hearing in the presence of Sri S.Sanjay Kumar, Advocate for the
Petitioner and of Sri T. Ravinder Singh, Advocate for the Respondents; and having been heard and having stood over
for consideration till this day, the Tribunal delivered the following:
AWARD
This is a petition filed U/Sec.2-A (2) of I.D. Act, 1947 praying to set aside the dismissal order
dt.21/29.01.2025 issued by Respondent No.2 and to direct the respondents‘-company to reinstate the petitioner into
service with continuity of service, all other consequential attendant benefits and full back wages.
2. The alpha and omega of the case of the petitioner is as follows:-
2(a).
The petitioner was appointed in the SCCL Company and taken to duty on 17.05.2017 as Badli-Worker under
dependant employment scheme as his father late Sri Shankar died while in service. Ever since his appointment, the
petitioner was discharging his duties to the utmost satisfaction of all his superiors and was promoted as General
Mazdoor. He has put-in more than (100) musters per year and his year-wise musters of 2017 and 2018 are submitted
here under:-
Sl.
No.
Particulars
Total yearly musters
1.
Musters of 2017 year
(From 17.05.2017)
(126) musters
2.
Musters of 2018 year
(192) musters
2(b).
Further, mother of the petitioner Smt.Ch.Laxmi, suffered from serious ill-health and petitioner got imparted
prolonged treatment to her in the SCCL and other referral hospitals. Due to demise of his father, petitioner has to look
after his ailing mother Laxmi and could not attend his duties regularly. Further, due to prolonged stay in the hospitals
on one hand and strenuous work in the underground mine, the petitioner‘s health badly deteriorated. He took
treatment at regular intervals in the SCCL dispensary, SCCL Area hospitals & other hospitals; but, his health
condition was not improved and he suffered from severe ill-health. He continued to work in the underground on one
hand and undergoing treatment on the other hand, his health completely deteriorated. But, without considering the
true facts, chronic ill-health suffered by the petitioner and medical treatment imparted to him, the 2nd respondent
issued charge sheet dt.31.01.2023 alleging absenteeism from duty during the year 2022:-
“25.25: Habitual later attendance or habitual absence from duty without sufficient cause”.
2(c). There is no habitual late attendance or habitual absence from duty without sufficient case on the part of the
petitioner, as alleged. There is reasonable and sufficient cause for his not attending to duties regularly during the
charge sheet period. The charge sheet dt.31.01.2023 was served to the petitioner on 10.04.2023, to which he
submitted his detailed written explanation on 12.04.2023. The respondents company imparted treatment to the
petitioner in the SCCL Area Hospital and other referral Hospitals. He participated in the domestic enquiry on
24.06.2021 and deposed the true facts of his ill-health and other problems faced by him, before the Enquiry Officer.
The Respondent No.1&2 have concealed the above facts of ill-health and medical treatment imparted to the petitioner
before the enquiry officer and suppressed the documentary evidence in favour of the petitioner. The findings of the
Enquiry Officer are very cryptic and he gave his vague findings, which are quite biased and perverse. Without
considering the true facts, the Respondent No.2 dismissed the petitioner from service vide Ref. dt.21/29.01.2025.
2(d). The petitioner‘s health condition was badly deteriorated and he suffered from serious ill health, during the
charge sheet period. It is pertinent to submit that the petitioner was imparted treatment from 03.05.2023 to
31.12.2024 by the SCCL Company. Further, the Medical Superintendent, KK-1 Dispensary, Mandamarri referred the
petitioner to the Area Hospital, Ramakrishnapur, vide Reference Letter dt.02.01.2025. He was again referred by the
Company Hospital to NIMS Hospital, Hyderabad for treatment of SCELEROTIC AORTIC VALVE,
CARDIOMEGALY DISHIDEEMIA, for further evaluation and management vide Reference letter dt.25.01.2025,
whereat he was imparted treatment. Further, the petitioner was referred to the SCCL Main Hospital, Kothagudem; he
was reviewed on 25.02.2025, 11.03.2025 and 22.03.2025 and he was found FIT FOR DUTY, vide SCCL letter
dt.24.03.2025. But, alleging absenteeism to duties during year 2022, the petitioner was dismissed from service ante-
date vide Ref. dt.21/29.01.2025 unjustly, which is a clear case of victimization and unfair Labour practice. Thus, there
is sufficient and reasonable cause for the petitioner for not attending to duties during the above charge sheet period.
SCCL and other Medical documents may kindly be taken into consideration by this Court.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
969
2(e).
The Respondent No.2 required the petitioner to make representation on the findings report of Enquiry
Officer by letter dt.10.08.2023, which was served to the petitioner on 05.01.2024 and he submitted written
representation on 06.01.2024 itself. But, the Respondent No.2 straight away dismissed him from service vide Ref.
dt.21/29.01.2025. No prior Show Cause Notice was issued to the petitioner proposing the capital punishment of
dismissal from service and he was not afforded an opportunity explain as to why the extreme punishment of dismissal
shall not be imposed on him. It is highly arbitrary, against the principles of natural justice and is a clear case of
victimization and unfair Labour Practice. The petitioner‘s health condition badly deteriorated and he suffered from
serious ill health, during the charge sheeted period and there is sufficient and reasonable cause for the petitioner for
not attending to duties during charge sheet period and it cannot be termed as misconduct.
2(f).
Further, imposing the capital punishment of dismissal from service on the petitioner without any prior show
cause notice proposing the said capital punishment is against the settled Law and contrary to the principles of natural
justice. The extremely harsh punishment of dismissal is highly excessive and shockingly disproportionate, which
amounts to his economic death. Ever since his dismissal from service, the petitioner is out of employment and could
not secure any other alternative job in spite of his best efforts. He hails from a very poor family and has no other
source of livelihood. Therefore, he prays to set aside the dismissal order issued by the Respondent No.2 and to direct
the Respondents‘-Company to reinstate him into service with continuity of service, all consequential attendant
benefits and full back wages.
3. On the other side the Respondents/Management filed counter by admitting the employment of the
Petitioner/Workman with the Respondents‘-Company, however, inter-alia contended that since the coal mining
industry is a central subject the Appropriate Government for Respondent/Management is Central Government, which
established an Industrial Tribunal-cum-Labour Court at Hyderabad from 29.12.2000 for adjudication of industrial
disputes and the Petitioner ought to have approached the said tribunal for the redressal of grievance, if any. But, the
Petitioner conveniently avoided filing his petition before the Tribunal established by the Central Government and
hence it is not maintainable under law and the same may be dismissed on this ground alone.
3(a). The Respondent Company without prejudice to its rights in respect of the objection raised as above submits that
the petitioner was appointed into the services of the Respondent Company as Badli Worker on 22.04.2017 and
worked as General Mazdoor at Kasipeta 2-Incline till he was dismissed from service on the ground of absenteeism
vide letter dt.21/29.01.2025. The Petitioner being an underground employee, he is expected to put minimum of 190
Musters in a calendar year. The following are the musters of the petitioner and action taken for his chronic
absenteeism:-
Sl
No.
Year
No. of
Musters
Penalty/Punishment details
1.
2017
126
Not applicable
2.
2018
192
Not applicable
3.
2019
19
Not applicable
4.
2020
07
Warning letter and suspended for
10-days
5.
2021
21
Stoppage of (01) increment without
cumulative effect
6.
2022
02
3-months observation time
7.
2023
01
Dismissed from service vide Lr.
dt.29.01.2025.
8.
2024
0
--
9.
2025
0
--
3(b). In the year 2020, the petitioner has put-in only 07 against 190 musters. As such, he was issued charge sheet
dt.13.04.2021, a written enquiry was conducted on 11.08.2021 and charges were proved against the petitioner.
However, a lenient view was taken and he was suspended for 10-days vide Lr.dt.01.10.2021. Further during 2021, he
has put-in 21 musters for which charge sheet dt.15.03.2022 was issued and he submitted explanation on 01.04.2022.
Enquiry was conducted on 25.04.2022 and show cause notice was issued. However, a lenient view was taken and he
was imposed with a penalty of ―Stoppage of one Increment without cumulative effect‖ was imposed vide
Lr.dt.13.07.2022. Again during 2022, he has put-in only 2-musters. Charge sheet dt.31.01.2023 was issued, enquiry
was conducted on 28.04.2023 and he was imposed with 3-months observation time from 01.04.2024 to 30.06.2024,
vide Lr.dt.01.03.2024. But, the petitioner failed to attend and the total musters put-in during 2024 are ―0‖. Therefore,
the respondents‘ company was constrained to dismiss the petitioner from service vide Ref.dt.21/29.01.2025.
970
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
3(c). The averments made by the Petitioner that he took treatment in the SCCL & other Hospitals at regular intervals
and that his health condition was not improved and he suffered from chronic ill-health are false and denied. He was
examined and certified ―Fit for Duty‖ by the respondent company hospitals vide certificates issued on 23.11.2021,
08.07.2022, 16.12.2022, 24.04.2023, 13.01.2024 and 23.03.2024. The medical treatment and referrals were standard
administrative procedures necessitated by his prolonged unauthorized absenteeism, to determine his fitness status,
before resume to duty. The averments made by the petitioner in his petition are false and baseless. He was given full
and fair opportunity and natural justice principles were followed during the enquiry proceedings. He was warned that
if he failed to meet the attendance requirements during 3-months observation period, suitable disciplinary action will
be taken against him. This serves as a final show cause notice and was duly acknowledged by him. His failure to
attend a single day during final observation period from 01.04.2024 onwards, proved his unwillingness to improve,
leaving dismissal as the only course of action.
3(d). Further, during brief administrative transition period from dismissal to name removal, he was referred to NIMS
hospital and subsequently to the Main hospital, Kothagudem, where he was ultimately certified as ―Fit for Duty‖. He
failed to attend work even once during final review period, demonstrating a complete lack of interest in his job. His
CMPF amount of Rs.2,10,152/- was settled and Gratuity amount of Rs.2,58,583/- sanctioned and it is under process.
The respondent company‘s standing orders do not speak about of issue of Show cause notice proposing the
punishment to be imposed on the delinquent employee. There is no victimization and the punishment of dismissal is
not harsh and the petitioner was given number of opportunities to correct himself and to be regular to his duties by
imposing minor penalties. But, he has failed to improve his attendance and resorted to unauthorizedly absent for duty.
The petitioner‘s misconduct compelled the Respondent/ Management to impose the penalty of dismissal which cannot
be termed as unjust.
3(e). Further, the Respondent Company employs more than 43,600 persons and the production results will depend
upon the overall attendance and performance of every individual. If anyone remain absent without prior sanction of
leave or without any justified cause, the work to be performed get effected. Such unauthorized absence creates
sudden void, which at times is very difficult to fill-up with substitute, and there will be no proper planning and
already planned schedules get suddenly disturbed without prior notice. For that reason every time the company
inform its workers to intimate prior to the unit in-charge so that they may arrange substitute and failing to inform will
result in to production and burden on other employees. The Respondent/ Management cannot be held responsible for
the alleged debts and unemployment and the other allegations of the petition are denied and hence the Respondents
prayed to dismiss the petition, without granting any relief to the petitioner.
4. In support of the claim of the Petitioner/Workman Ex.W-1 to Ex.W-50 and on the other side for the Respondents‘-
Company Ex.M-1 to Ex.M-19 were marked, with consent.
5. Arguments of the learned counsel for Petitioner/workman as well as the learned standing counsel for the
Respondents/ Management heard. Perused the record produced before this Tribunal, their rival arguments and
citations.
6.
Now the points for consideration are:-
1.
Whether this Tribunal has jurisdiction to entertain this I.D; and whether the domestic enquiry
conducted by the respondents is held valid or not?
2.
Whether the charges leveled against the petitioner are proved basing on evidence or not?
3.
Whether the dismissal order dt.21/29.01.2025 is liable to be set aside, if so, the petitioner is entitled to
reinstatement with continuity of service with all attendant benefits and full back wages?
If not to what relief is the worker entitled to?”
7. From the pleadings of the Petitioner/Workman and Respondents‘ Company, these are the admitted facts that the
petitioner/ workman worked as General Mazdoor in the Respondents‘-Company and he was dismissed from service.
Now coming to the documentary evidence on both sides, on behalf of Respondents‘/ Company, Ex.M-1 to Ex.M-19
were marked, wherein, Ex.M-1 is attested Copy of charge sheet issued to petitioner and Ex.M-2 is attested Copy of
order suspending the petitioner for 10-days. Ex.M-3 and Ex.M-4 are attested Copies of warning letters issued to the
petitioner. Ex.M-5 is attested Copy of charge sheet issued to the petitioner Ex.M-6 is attested Copy of show cause
notice to the petitioner. Ex.M-7 is attested copy of stoppage of one increment without cumulative effect and Ex.M-8
is attested Copy charge sheet issued to the petitioner. Ex.M-9 is attested copy of Enquiry Report and Ex.M-10 is
attested copy of notice. Ex.M-11 is attested copy of 3-months observation time and Ex.M-12 is attested copy of
charge sheet issued to petitioner. Ex.M-13 is attested copy of dismissal order of petitioner. Ex.M-14 to Ex.M-19 are
attested copies of ―Fit for Duty‖ letters.
7(a). On the other side, the petitioner got marked Ex.W-1 to W-50 on his behalf, wherein, Ex.W-1 is posting office
order as Badli Worker, on completing basic job training. Ex.W-2 is Pay sheet of 12/2017 showing 126-musters during
the year 2017. Ex.W-3 is Pay sheet of 12/2018 showing 192-musters during the year 2017. Ex.W-4 is O/c of Demand
Letter and R.P receipts and Ex.W-5 is SCCL reference letter issued by R-1. Ex.W-6 is SCCL dispensary medical O.P
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
971
ticket of petitioner and Ex.W-7 is Sri Krishna Hospital, Mancherial medical prescription of petitioner. Ex.W-8 is
SCCL Area Hospital RKP medical prescription of the petitioner and Ex.W-9 is SCCL dispensary medical O.P ticket
of petitioner. Ex.W-10 is Kamineni Hospital SCCL reference medical prescription of petitioner. Ex.W-11 is SCCL
reference letter of petitioner and Ex.W-12 is Kamineni Hospital SCCL reference medical prescription of petitioner-(2)
Nos. Ex.W-13 is SCCL dispensary medical O.P ticket of petitioner and Ex.W-14 is SCCL dispensary medical O.P
ticket of petitioner. Ex.W-15 is CHAIMS Hospital medical prescription of petitioner and Ex.W-16 is Chelmeda
Ananda Rao Institute of Medical Sciences Hospital medical prescription of petitioner. Ex.W-17 is SCCL Reference
letter of petitioner issued to NIMS Hospital, Hyderabad. Ex.W-18 is SCCL Reference letter of petitioner issued to
NIMS Hospital, Hyderabad. Ex.W-19 is NIMS Hospital medical prescription of petitioner and Ex.W-20 is NIMS
Hospital medical prescription of petitioner. Ex.W-21 is NIMS Hospital medical prescription of petitioner and
Ex.W-22 is NIMS Hospital medical prescription of petitioner-(2) Nos. Ex.W-23 is NIMS Hospital medical
prescription of petitioner. Ex.W-24 is SCCL Area Hospital Medical prescription from 11.02.2025 to 19.02.2025.
Ex.W-25 is SCCL Area Hospital Discharge summary from 01.03.2025 to 05.03.2025; and Ex.W-26 is FIT FOR
DUTY certificate issued by SCCL Main Hospital, Kothagudem.
7(b) Further, Ex.W-27 is Govt. Hospital Medical prescription of Ch.Laxmi - mother of petitioner. Ex.W-28 is
Padmavathi Hospital Medical prescription of Ch.Laxmi - mother of petitioner. Ex.W-29 is Balaji Scan Centre Ultra
Sound abdomen of Ch.Laxmi - mother of petitioner. Ex.W-30 is SCCL Hospital medical prescription of Ch.Laxmi -
mother of petitioner. Ex.W-31 is CHAIMS Hospital medical report of Ch.Laxmi - mother of petitioner-(2) Nos.
Ex.W-32 is SCCL Hospital medical prescription of Ch.Laxmi - mother of petitioner; and Ex.W-33 is SCCL Hospital
medical prescription of Ch.Laxmi - mother of petitioner from 23.08.2023 to 26.08.2023. Ex.W-34 is SCCL Area
Hospital Reference letter of Ch.Laxmi - mother of petitioner; and Ex.W-35 is Balaji Scan Centre Ultra Sound
abdomen of Ch.Laxmi - mother of petitioner. Ex.W-36 is SCCL Area Hospital Reference letter of Ch.Laxmi - mother
of petitioner. Ex.W-37 is Discharge Summary of Ch.Laxmi - mother of petitioner; and Ex.W-38 is Medical
prescription of Ch.Laxmi - mother of petitioner. Ex.W-39 is CHAIMS Hospital USG Abdomen Scan of Ch.Laxmi -
mother of petitioner. Ex.W-40 is CHAIMS Hospital medical prescription of Ch.Laxmi - mother of petitioner.
Ex.W-41 is CHAIMS Hospital medical prescription of Ch.Laxmi - mother of petitioner. Ex.W-42 is CHAIMS
Hospital medical prescription of Ch.Laxmi - mother of petitioner. Ex.W-43 is Medical prescription of Ch.Laxmi -
mother of petitioner; and Ex.W-44 is CHAIMS Hospital USG Abdominal scan of Ch.Laxmi - mother of petitioner.
Ex.W-45 is CHAIMS Hospital medical prescription of Ch.Laxmi - mother of petitioner. Ex.W-46 is CHAIMS
Hospital medical prescription of Ch.Laxmi - mother of petitioner. Ex.W-47 is SCCL Area Hospital medical
prescription of Ch.Laxmi - mother of petitioner. Ex.W-48 is SCCL Area Hospital medical prescription of Ch.Laxmi -
mother of petitioner. Ex.W-49 is SCCL Area Hospital Reference letter of Ch.Laxmi - mother of petitioner and
Ex.W-50 is SCCL Area Hospital Reference letter of Ch.Laxmi - mother of petitioner. The above documents of both
sides are not in much dispute by either side.
8. Here, the learned standing counsel for the respondents‘-company has strenuously argued and raised a Preliminary
Objection in the Counter that since the coal mining industry is a central subject the Appropriate Government for
Respondent/ Management is Central Government, which established Central Govt. Industrial Tribunal, at Hyderabad
for adjudication of Industrial Disputes and the petitioner ought to have approached the said Tribunal for the redressal
of grievance, if any. But, the Petitioner conveniently avoided filing his petition before the Tribunal established by the
Central Government and approached this Tribunal; hence it is not maintainable under law and the same may be
dismissed on this ground alone.
8(a). The learned standing counsel for the respondents‘-company without prejudice to the above preliminary
objection; has put forth and set forth that the petitioner was appointed as Badli Worker on 22.04.2017 and he being an
underground employee is expected to put minimum 190 Musters in a calendar year. But, he was not regular to his
duties and in only one year of 2018 he had put in the required 190 musters. The contentions of the Petitioner that he
suffered from chronic ill-health and SCELEROTIC AORTIC VALVE, CARDIOMEGALY DISHIDEEMIA is incorrect.
If he was really suffering from ill health, it becomes his primary responsibility to report sick in Colliery Hospital or he
should have informed to unit officers about his incapability to attend duties and he would have got leave or loss of
pay leave but he did not inform anything. The Respondent Company employs more than 43,600 persons and the
production results will depend upon the overall attendance and performance of every individual. If anyone remain
absent without prior sanction of leave or without any justified cause, the work to be performed get effected. Such
unauthorized absence creates sudden void, which at times is very difficult to fill-up with substitute, and there will be
no proper planning and already planned schedules get suddenly disturbed without prior notice. For that reason every
time the company inform its workers to intimate prior to the unit in-charge so that they may arrange substitute and
failing to inform will result in to production and burden on the other employees.
8(b). The learned standing counsel for the respondents‘-company further argued that during the period from January
2022 to December 2022, the Petitioner has put in 02-musters only. As the above act amounted to misconduct under
Company Standing Orders No.25.25, he was issued charge sheet dt.31.01.2023 for absenteeism for the year 2022.
Enquiry into the charges leveled against the petitioner was conducted by the Enquiry Officer on 28.04.2023 in which
the Petitioner has fully participated in the enquiry proceedings. He was given full and fair opportunity to defend his
case. In his deposition before the Enquiry Officer, the petitioner admitted charges mentioned in the charge sheet. He
972
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
accepted his mistake that he remained absent during the dates mentioned in the charge sheet due to his health
problems and Mother health problems. However, he did not submit any other documentary evidence about the alleged
ill-health which prevented him from remaining absent from duties during entire absenteeism period. As the charges
were proved against the petitioner, show cause notice was issued to submit his explanation within 7-days on the
findings of the E.O. But, he has not submitted any explanation against enquiry findings. However a lenient view was
taken and he was given 3-months observation period from 01.04.2024 to 30.06.2024. Even after counseling, the
petitioner has not fulfilled the 3-months observation period also and failed to attend to his duties and the total musters
put-in by him during the year 2024 are ―0‖. Hence, the respondents‘ company was constrained to impose capital
punishment and dismissed from service vide office order dt.21/29.01.2025.
8(c). The learned standing counsel for the respondents‘-company further put forth and set forth that the petitioner was
given number of opportunities to correct himself and to be regular to his duties by imposing minor penalties such as
issued suspension of 10 days for the unauthorized absenteeism during the Calendar Year 2020 and stoppage of one
increment without cumulative effect for the unauthorized absenteeism during the Calendar Year 2021. But, the
Petitioner has failed to improve his attendance and resorted to unauthorizedly absent for duty during the calendar year
2022 also. He failed improve his attendance during the years 2023 and 2024; and even after giving opportunities to
improve his attendance, the petitioner continued his absenteeism continuously and there is no improvement in the
attendance. The petitioner‘s misconduct has compelled the Respondent/Management to impose penalty of dismissal
which cannot be termed as unjust. The petitioner not utilized the opportunities given by the company and not
improved his attendance. Hence, the Respondent Company dismissed him from service vide order dt.21/29.01.2025,
which is justified. Hence, he prayed to dismiss the petition, without granting any relief to the petitioner/workman.
9. Per contra, on the point of jurisdiction and preliminary objection, the learned counsel for the Petitioner/workman
has strenuously put forth and set forth that as per the Division Bench Judgment of the Hon‘ble High Court reported in
1997(III) LLJ (Supp.)11, Between: U. Chinnappa Vs. Cotton Corporation of India, this Tribunal has jurisdiction over
Singareni Collieries Company Ltd., to entertain the Industrial Dispute raised by the petitioner/workman though the
appropriate Govt. is Central Govt., The petitioner need not raise the Industrial Dispute compulsorily before the
Central Govt. Industrial Tribunal, Hyderabad alone, as contended by the respondents‘ company. Hence, this I.D
petition filed by petitioner/ workman is well maintainable before this Tribunal for adjudication of the dispute on
merits.
9(a). The learned counsel for the Petitioner/workman further strenuously put forth and set forth that the
Petitioner/Workman was appointed was appointed on 22.04.2017 as Badli Worker as a dependant in place of his
father, who died while in service during 2015. He served the respondents‘ company and put-in (126) during the year
2017 i.e., from 1705.2017. Further, he had put in (192) musters during the year 2018 and he was promoted as General
Mazdoor. Unfortunately, Smt.Ch.Laxmi, mother of the petitioner suffered from serious ill-health and petitioner got
imparted prolonged treatment to her in the SCCL and other referral hospitals. Due to demise of his father, petitioner
has to look after his ailing mother Laxmi and could not attend his duties regularly. Further, due to prolonged stay in
the hospitals on one hand and strenuous work in the underground mine, the petitioner‘s health badly deteriorated. He
took treatment at regular intervals in the SCCL dispensary, SCCL Area hospitals and other hospitals; but, his health
condition was not improved and he suffered from severe ill-health. Further, his health condition badly deteriorated
and he suffered from serious ill health, during the charge sheet period. He was imparted treatment from 03.05.2023 to
31.12.2024 by the SCCL Company. Further, the Medical Superintendent, KK-1 Dispensary, Mandamarri referred the
petitioner to the Area Hospital, Ramakrishnapur, vide Reference Letter dt.02.01.2025. He was again referred by the
Company Hospital to NIMS Hospital, Hyderabad for treatment of Scelerotic Aortic Valve, Cardiomegaly
Dishideemia, for further evaluation and management vide Reference letter dt.25.01.2025, whereat he was imparted
treatment. Further, the petitioner was referred to the SCCL Main Hospital, Kothagudem; he was reviewed on
25.02.2025, 11.03.2025 and 22.03.2025 and he was found Fit For Duty, vide SCCL letter dt.24.03.2025. But, alleging
absenteeism to duties during year 2022, the petitioner was dismissed from service ante-date vide Ref.
dt.21/29.01.2025, which is a clear case of victimization and unfair Labour practice. Thus, there is sufficient and
reasonable cause for the petitioner for not attending to duties during the above charge sheet period. But without
considering the true facts, the respondent No.2 dismissed the petitioner from service, illegally.
9(b). The learned counsel for the Petitioner/workman further strenuously put forth and set forth that the petitioner
participated in the enquiry, deposed the true facts of his ill-health and mother‘s health problems. But, the enquiry
officer did not properly appreciate the documentary and oral evidence and he gave his vague findings, which are quite
biased and perverse. The 2nd respondent required the petitioner to make representation on the findings report of the
Enquiry Officer by letter dt.10.08.2023, which was served to the petitioner on 05.01.2024 and he submitted written
representation on 06.01.2024 itself. But, 2nd respondent straight away dismissed him from service vide
Ref.No.MMR/PER/D/072/25/445, dt.21/29.01.2025. No prior Show Cause Notice was issued to the petitioner
proposing the capital punishment of dismissal from service and he was not afforded an opportunity explain as to why
the extreme punishment of dismissal shall not be imposed on him. The petitioner‘s health condition was badly
deteriorated and he suffered from serious ill health, during the charge sheeted period and there is sufficient and
reasonable cause for the petitioner for not attending to duties during charge sheet period.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
973
9(c).
The learned counsel for the Petitioner/workman further put forth and set forth that imposing the capital
punishment of dismissal from service without any prior show cause notice is against the principles of natural justice.
The extremely harsh punishment of dismissal is highly excessive and shockingly disproportionate, which amounts to
economic death of the petitioner. Ever since his dismissal from service, the petitioner is out of employment and could
not secure any other alternative job in spite of his best efforts. He hails from a very poor family and has no other
source of livelihood. Therefore, he prayed to set aside the dismissal order and to direct the Respondents‘-Company to
reinstate the petitioner/workman into service with continuity of service, all consequential attendant benefits and full
back wages.
POINT No.1:
10. Here, on the point of territorial jurisdiction of this Tribunal, it is settled Law that as per the Division Bench
Judgment of the Hon‘ble High Court reported in 1997(III)LLJ(Supp.)11, Between: U. Chinnappa Vs. Cotton
Corporation of India, this Tribunal has got every jurisdiction to entertain the Industrial Dispute raised by the
petitioner/workman who was an employee of Singareni Collieries Company Ltd., Even though, the Central Govt. is
appropriate Govt., for the respondents‘-Company, the petitioner need not compulsorily raise the Industrial Dispute
before the Central Govt. Industrial Tribunal, Hyderabad, as contended by the respondents‘ company; and he can file
this I.D. case before this Tribunal as well. Hence, the contentions of the respondents‘-company on the point of
jurisdiction of this Tribunal are not sustainable under Law. Accordingly, it is answered in favour of the petitioner and
against the respondents‘ Singareni Collieries Company Limited.
11.
Further in this matter, initially the petitioner/workman denied the validity and legality of the enquiry report.
But on 20.01.2026, the learned counsel for petitioner filed Memo U/Sec.11-A of I.D Act by accepting the procedure
of domestic enquiry to be fair and valid. Hence, it can be said the Enquiry Officer has followed the principles of
natural justice. Now the next question is, whether the misconduct is proved in the facts of the case and the findings
are not perverse. So, this Tribunal is to re-appreciate the evidence and come to its own conclusion with regard to
finding guilty or not based on evidence. Accordingly, the Point No.1 is answered.
POINT No.2 & 3:
12. In view of the pleadings of the Petitioner/Workman as well as Respondents/corporation as well as in view of the
rival arguments of their respective counsel now this Court will go into the evidence on record. Admittedly, the
petitioner was dismissed from service by Proc. dt.21/29.01.2025 wherein it is alleged that the petitioner was absent
from duty without sanctioned leave or sufficient cause during the year 2022. From a perusal of the record, it shows
that Charge Sheet dt.31.01.2023 was issued to the petitioner, which is marked as Ex.M-8. It is evident from the charge
sheet that the petitioner absented to duties for 341-days and put-in only 02 actual musters during the year 2022. It is
further evident from the charge sheet under Ex.M-8 that he put in 126-musters during the year 2017, 192-musters
during the year 2018, 19-musters during the year 2019; 07-musters during the year 2020 and 21-musters during the
year 2021. Domestic enquiry was conducted and the enquiry proceedings are marked as Ex.M-9. Further, a perusal of
Ex.M-9 proceedings of enquiry and enquiry report would goes to show that the Petitioner/Workman participated in
the domestic enquiry and deposed that he remained absent on the dates as mentioned in the charge sheet and it was his
mistake. He admitted that charges and pleaded guilty and deposed that due to his own health problems and his
mother‘s health problems, he did not attend to his duty. He accepted his mistake for remaining absent during the
charge sheet year of 2022 and assured that he will be more careful in future and he will not remain absent without
prior sanction of leave.
12(a). From the Enquiry Report which is also under Ex.M-9, it is evident that the petitioner absented to duty without
sanctioned leave and he accepted the charge made under Company‘s standing order 25.25 (habitual late attendance or
habitual absence from duty without sufficient cause) mentioned in the charge sheet dt.31.01.2023 was held proved.
The petitioner has not submitted any documents regarding his mother‘s health problems in the enquiry to substantiate
his claim. Further, 7-days notice dt.10.08.2023 was issued, which is marked as Ex.M-10 and he was kept under 3-
months observation period from 01.04.2024 onwards requiring put-in 16-UG musters per month and altogether 48-
UG musters in 3-months time, which is marked as Ex.M-11. Another charge sheet dt.31.01.2024 was issued for his
absenteeism during the year 2023 which is marked as Ex.M-12. The dismissal order dt.21/20.01.2025 is marked as
Ex.M-13 wherein it shows that the petitioner received the enquiry report and proceedings on 05.01.2024. In turn he
submitted written representation dt.06.01.2024, which was also considered to be not satisfactory. Hence, petitioner
was dismissed from services of the Company with immediate effect.
12(b). Further, attested copies of ―Fit for Duty‖ letters dt.15.11.2024, 23.03.2024, 22.04.2023, 08.07.2022,
13.01.2024 and 16.12.2022 filed by the Respondents/Company are marked as Ex.M-14 to Ex.M-19. It is evident that
the petitioner was sent to the SCCL Main Hospital, Kothagudem and other Area Hospitals of SCCL for fitness. The
petitioner was reviewed by the concerned SCCL Hospital and found made fit for duty.
13. Apart from the above, the petitioner/workman submitted as many as 47 documents, medical prescriptions, medical
reports and treatment imparted to him and his mother Laxmi. They are marked as Ex.W-4 to Ex.W-50. Most of the
medical documents submitted by the petitioner/workman were issued by the SCCL Hospitals, NIMS, Kamineni,
CHAIMS Hospital and other referral Hospitals, which prima-facie show that both the petitioner/workman and his
974
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
mother Laxmi have suffered from ill-health for 5-years from 2019 to 2024. The petitioner explained that due to his ill-
health and health problems of this mother, he absented to duties during the charge sheeted year of 2022 and prayed to
consider his case sympathetically. Further, it is evident from the Pay sheets of petitioner under Ex.W-2 and Ex.W-3
that he put-in 126-musters during the year 2017 and 192-musters during the year 2018. Thus, it is evident from the
enquiry proceedings and enquiry report under Ex.M-9 as well as the material on record, that the petitioner had not put
in minimum required musters of 190 during the year 2022. For which, petitioner submitted that due to his ill-health
and health problems of his mother, he was unable to perform duty regularly during the charge sheet period and
submitted several medical prescriptions and reports of SCCL and other referral hospitals, which are marked as Ex.W-
4 to Ex.W-50. Further, the above medical documents of the petitioner lend support to his enquiry statement under
Ex.M-9 showing the ill-health suffered by him and his mother. These documents clearly show that the petitioner/
workman and his mother both were imparted treatment during the charge sheet period. Hence, the defense put-forth
by the petitioner is plausible and amount to mitigating circumstances.
13(a). However, it is clear that the petitioner has not attended to duties during the charge sheet period and the charges
were amply proved against him. Therefore, it can be said that the respondents/ company has no axe to grind against
the petitioner. Hence, this Tribunal has no hesitation to hold that the charge leveled against the petitioner/ workman is
proved and misconduct of the workman is established basing on the evidence and the findings of enquiry officer are
not perverse. But, at the same time much gravity cannot be attributed to the petitioner since his ill-health and ill-
health of his mother and treatment imparted by SCCL and other referral hospitals is supported by the medical
documents, which shows reasonable cause for the petitioner‘s absence during the charge sheet period.
14. Now the question is whether the punishment of removal from service is disproportionate or not?
14(a). It is settled law that the object of I.D.Act is to give succor to weaker sections of the society and it is a social
welfare legislation. Here, there is no “Plumbline Precision” for deciding the proportionality of punishment, which
depends upon the facts and circumstances of each case. The Industrial Tribunal/Labour Court is empowered to
exercise discretionary powers Under Sec.11-A of Industrial Disputes Act for judicious adjudication of the industrial
disputes. Several factors like nature of duty, past service past conduct, previous penalties if any and the discipline
required to maintain in the department, victimization and plea of the petitioner/workman and the punishment must be
commensurate with the gravity of charges against the petitioner/ workman etc., by considering the relevant factors
and mitigating circumstances of each case are to be taken into consideration so as to mould the relief appropriately
and reduce the punishment imposed on the workman.
15. Here, the learned counsel for the petitioner/workman submitted that the Petitioner was appointed in the year 2017
as a dependant of his deceased father who died while in service and put in more than 100 musters for two years. The
petitioner submitted the referral letters issued by SCCL Hospitals and the respondents have referred the petitioner to
NIMS, CHAIMS, Kamineni and other Hospitals during the years 2019-2024. It appears from the medical documents
submitted by the petitioner that he was imparted treatment for: ―SCELEROTIC AORTIC VALVE, CARDIOMEGALY
DISHIDEEMIA.” Further, the petitioner hails from a very poor family, he has got no other livelihood and facing
untold financial problems, and prayed to consider the case U/Sec.11-A of I.D. Act. Here, the learned counsel for the
petitioner relied upon the following citations:-
1)
HON‘BLE SUPREME COURT JUDGMENT REPORTED IN AIR 1988 SC 303 – Between: Scooter India
Ltd, Labour Court, Lucknow & ors:
In this case, the Labour Court while holding that enquiry had conformed to statutory prescriptions and principles
of natural justice, yet held that order of termination was not justified and ordered for reinstating employee
with 75% back wages. Wide powers are vested in Labour Court or Tribunal. Labour Court can temper justice
with mercy and give an opportunity to an erring workman to reform himself. Order of Labour Court granting
relief of reinstatement with 75% back wages was upheld by Hon‘ble Supreme Court.
2)
HON‘BLE HIGH COURT JUDGMENT IN W.A. No.1101/2008 and W.P.No.7671 of 2000, dt.07.04.2009
D.B. Judgment:
In this case, the Labour Court granted reinstatement with continuity of service and half-of back wages. The
Hon‘ble High Court held that since the petitioner remained unemployed from the date of removal, modified
the award of Labour Court by granting full back wages.
3)
Judgment of Hon‘ble Supreme Court, dt.24-08-2009 in Civil Appeal No.5762 of 2009, Between: Coal India
Ltd. & Anr Vs. Mukul Kumar Choudari and others.
4)
Judgment of Hon‘ble Supreme Court dt.14-05-2009 Between: Jagadish Singh Vs. Punjab Engineering
College and others.
In the above Judgments of the Hon‘ble Supreme Court at Sl.No.3 & 4 reveals that the punishment should be in
commensurate with the gravity of the charges and it should not be shockingly disproportionate. Further, this
Tribunal is adhering to the ratio laid down by their Lordships as applicable to the facts of the present case on hand,
to the extent of reinstatement only.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
975
16. Here, this Tribunal relied on a Division Bench Judgment of the Hon‘ble Supreme Court rendered in Civil Appeal
No.2157/1999, dt.08.04.1999 between Ajaib Singh vs. Sirhind Co-op. Marketing-cum-Processing Service Society
Ltd., & another, wherein their lordships held that:-
“The object of Industrial Disputes Act was to give succor to weaker sections of the society. The emerge
Welfare State implies an end to exploitation of workman and as a corollary to that collective bargaining ca
Legislature had intended to protect workmen against victimization and exploitation by the employer and to
Industrial Disputes in a peaceful manner.
“The object of the Act, therefore, is to give succor to weaker sections of the society which is a pre-
requisite for Welfare State. To ensure industrial peace and pre-empt industrial tension, the Act further aims at
enhancing the industrial production which is acknowledged to be life-blood of a developing society. The Act
provides a machinery for investigation and settlement of industrial dispute ignoring the legal technicalities
with a view to avoid delays, by specially authorized Courts which are not supposed to deny the relief on
account of the procedural wrangles”.
16(a). Further, in a decision of the Hon‘ble High Court reported in 2012 (1) ALD 220 (DB), wherein their lordships
observed that:-
“The Industrial Disputes Act, 1947 is a social welfare legislation, which required to be interpreted
keeping in view the goals set out in the Preamble and Directive principles of State Policy in Part-IV of
the Constitution. The Labour Court/Industrial Tribunal is conferred with very wide discretion U/Sec.11-
A of the Act for granting appropriate relief”.
17. Here, their Lordships of the Hon‘ble Gujarat High Court in a case rendered on 04.05.1994, Between: Management
of Glaxo India Ltd., Vs. State of Assam and 3 others categorically observed that ―a Labour Court is required to settle
a dispute according to the principles of natural justice, equity and good conscience and law without attaching
undue importance to legal technicalities”.
18. Further, it is well settled law that if the Industrial Tribunal/ Labour Court is satisfied that the punishment imposed
on the petitioner/workman is not justified, the Industrial Tribunal/ Labour Court is clothed with the power to
reappraise the evidence in the domestic enquiry and satisfy itself whether the said evidence relied on by the Enquiry
Officer or Respondents/ Management established the misconduct alleged against the workman. Further, Section 11-A
comes into effect only at the time when the Industrial Tribunal/Labour Court consider about the punishment to be
imposed. While previously the Industrial Tribunal/Labour Court had no power to interfere with the punishment, it is
now clothed with such a power. Apart from the above, Industrial Tribunal/Labour Court should temper justice with
mercy and not flog the petitioner/ workman to asset our might. The power of ocean does not lie in its tumultuous tides
but in its meditative vastness”. My above view is fortified with the observation of their Lordships of Hon‘ble Madras
High Court in a case Between: High Court of Madras Vs. R.D.Santhana Krishnan dt.21st December, 2021.
19. Here, it is to be noted that the concept of Industrial Dispute is quite broad and with the passage of time its horizon
is being expanded. Further, the disputes are required to be resolved for the purpose of establishing peaceful and
cordial atmosphere in an industry. Peace and harmony are the quintessential aspects which are to be kept in view
while dealing with the “lis” or “controversy” relating to any industry. Apart from the above, whether the impugned
punishment is so disproportionate as to shock the conscience of the Court, has to be decided on the facts of each case,
having due regard to the gravity of misconduct & nature of duties discharged by the delinquent employee.
20. Here, it is pertinent to note that the term ―misconduct‖ is the intentional doing of something which the doer knows
to be wrong, or which he does recklessly, not caring what the result may be. It includes negligence or want of proper
care which an employee is to take. But, it is a fact that “to err is human” and “to forgive is divine”. Keeping the said
spirit into consideration and in the interest of cause of justice, every errant conduct of an employee of an organization
could not be treated as grave misconduct. Further, it is settled law that promoting empathy and understanding by
encouraging forgiveness, which is a divine quality transcending human limitation, should be preferred to anything
else in the given circumstances. My above view is fortified by observation of their Lordships of the Hon‘ble Supreme
Court in a judgment rendered Between: Ratilal Jhaverbhai Parmar Vs State Of Gujarat dt.21st October, 2024.
21. Further, the Hon‘ble Madras High Court observed in a case rendered in Management of Hyudai Motor India Ltd
Vs. T.Sudhakar ... on 31st January, 2022:
“When scales of justice stands balanced in a given case, the tilt to be exercised should be in favour
of the poor workmen rather than the mighty Managements.”
22. Therefore, by taking a holistic view of the matter, I am of the considered view that the extreme punishment of
removal imposed by the respondents/corporation against the petitioner/workman is harsh, disproportionate and shocks
to conscience of this Tribunal, hence, deserves to be modified since the disciplinary authority cannot be permitted to
act arbitrarily and work like a Roman Knight and it cannot be allowed a fight between David and Goliath as in the
present case on hand. Moreover, facts of this case attracts the proverbial saying “Every saint has a past and every
sinner has a future” and Biblical proverbs “Speak up for those who cannot speak for themselves, for the rights of all
976
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
who are destitute‖ and “Speak up and judge fairly; defend the rights of the poor and needy.” Further, “Heavens
would not have fallen if one more opportunity is given for the petitioner”.
23. This Tribunal has perused, analyzed and meditated upon the case at hand, the case laws and principles of law
referred above. In view of the above facts and circumstances and keeping in view of the principle “temper justice with
mercy” and to meet the ends of justice, this Tribunal is of the opinion that the punishment of removal from service
imposed on the petitioner is disproportionate and shocks the conscience of this Tribunal and hence, it deserves to be
modified appropriately. It appears from the record that the petitioner rendered service of 7-years only in the
respondents‘ company and he is out of employment ever since his dismissal from service. Hence, this Tribunal is of
the considered view that denial of entire back wages, continuity of service and all other attendant benefits during the
intervening period from the date of his dismissal to till date and further “Deferment of Annual Increments for a
period of TWO years with cumulative effect” would be a deterrent punishment to the petitioner. However, the past
service rendered by the petitioner shall be protected and counted for all purposes. Hence, the punishment of dismissal
from service imposed by the Respondents‘ Company is hereby modified. Accordingly, the Points 2 & 3 are
answered.
24. IN THE RESULT, the petition is partly allowed. The dismissal order dt.21/29.01.2025 under Ex.M-13 issued by
the Respondent No.2 is hereby modified. The respondents‘ company is directed to reinstate the petitioner into service,
but without any back wages, without any continuity of service and without any attendant benefits during the
intervening period from dismissal till date and it shall be treated as ―not on duty‖ for all purposes. However, the past
service rendered by the petitioner shall be protected and counted for all purposes. Further, his Annual Increments
shall be deferred for a period of TWO years with cumulative effect”. The petitioner is entitled to the salary only
from the date of publication of the Award. Copy of the Award be sent to the appropriate Government for publication.
Both parties shall bear their own costs.
Typed to my dictation, corrected and pronounced by me in the open Court, on this the 29st day of
January, 2026.
Sri Dr.T.SRINIVASA RAO, Chairman-Cum-Presiding Officer
APPENDIX OF EVIDENCE
WITNESSES EXAMINED
FOR WORKMAN:-
FOR MANAGEMENT:-
-Nil-
-Nil-
EXHIBITS MARKED
FOR WORKMAN:-
Ex.W-1
Dt.
14.04.2017
Posting office order as Badli Worker, on completing basic job
training.
Ex.W-2
Dt.
31.12.2017
Pay sheet of 12/2017 showing (126) musters during the year 2017.
Ex.W-3
Dt.
31.12.2018
Pay sheet of 12/2018 showing (192) musters during the year 2017.
Ex.W-4
Dt.
09.06.2025
O/c Demand Letter and R.P receipts.
Ex.W-5
Dt.
02.01.2019
SCCL reference letter issued by R-1.
Ex.W-6
Dt.
22.10.2020
SCCL dispensary medical O.P ticket of petitioner.
Ex.W-7
Dt.
21.12.2020
Sri Krishna Hospital, Mancherial medical prescription of petitioner.
Ex.W-8
Dt.
02.01.2021
SCCL Area Hospital RKP medical prescription of the petitioner.
Ex.W-9
Dt.
02.01.2021
SCCL dispensary medical O.P ticket of petitioner.
Ex.W-10
Dt.
26.08.2021
Kamineni Hospital SCCL reference medical prescription of
petitioner.
Ex.W-11
Dt.
25.08.2021
SCCL reference letter of petitioner.
Ex.W-12
Dt.
26.08.2021
Kamineni Hospital SCCL reference medical prescription of
petitioner-(2) Nos.
Ex.W-13
Dt.
--
SCCL dispensary medical O.P ticket of petitioner.
Ex.W-14
Dt.
21.07.2023
SCCL dispensary medical O.P ticket of petitioner.
Ex.W-15
Dt.
28.05.2024
CHAIMS Hospital medical prescription of petitioner.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
977
Ex.W-16
Dt.
24.08.2024
Chelmeda Ananda Rao Institute of Medical Sciences Hospital
medical prescription of petitioner.
Ex.W-17
Dt.
25.01.2025
SCCL Reference letter of petitioner issued to NIMS Hospital,
Hyderabad.
Ex.W-18
Dt.
29.01.2025
SCCL Reference letter of petitioner issued to NIMS Hospital,
Hyderabad.
Ex.W-19
Dt.
01.02.2025
NIMS Hospital medical prescription of petitioner.
Ex.W-20
Dt.
04.02.2025
NIMS Hospital medical prescription of petitioner.
Ex.W-21
Dt.
04.02.2025
NIMS Hospital medical prescription of petitioner.
Ex.W-22
Dt.
12.02.2025
NIMS Hospital medical prescription of petitioner-(2) Nos.
Ex.W-23
Dt.
14.02.2025
NIMS Hospital medical prescription of petitioner.
Ex.W-24
Dt.
11.02.2025
SCCL Area Hospital Medical prescription from 11.02.2025 to
19.02.2025.
Ex.W-25
Dt.
05.03.2025
SCCL Area Hospital Discharge summary from 01.03.2025 to
05.03.2025.
Ex.W-26
Dt.
24.03.2025
FIT FOR DUTY certificate issued by SCCL Main Hospital,
Kothagudem.
Ex.W-27
Dt.
30.09.2022
Govt. Hospital Medical prescription of Ch.Laxmi - mother of
petitioner
Ex.W-28
Dt.
03.05.2023
Padmavathi Hospital Medical prescription of Ch.Laxmi - mother of
petitioner.
Ex.W-29
Dt.
08.05.2023
Balaji Scan Centre Ultra Sound abdomen of Ch.Laxmi - mother of
petitioner
Ex.W-30
Dt.
17.05.2023
SCCL Hospital medical prescription of Ch.Laxmi - mother of
petitioner
Ex.W-31
Dt.
17.07.2023
CHAIMS Hospital medical report of Ch.Laxmi - mother of
petitioner-(2) Nos.,
Ex.W-32
Dt.
21.07.2023
SCCL Hospital medical prescription of Ch.Laxmi - mother of
petitioner
Ex.W-33
Dt.
23.08.2023
SCCL Hospital medical prescription of Ch.Laxmi - mother of
petitioner from 23.08.2023 to 26.08.2023.
Ex.W-34
Dt.
26.08.2023
SCCL Area Hospital Reference letter of Ch.Laxmi - mother of
petitioner
Ex.W-35
Dt.
24.08.2023
Balaji Scan Centre Ultra Sound abdomen of Ch.Laxmi - mother of
petitioner
Ex.W-36
Dt.
28.08.2023
SCCL Area Hospital Reference letter of Ch.Laxmi - mother of
petitioner
Ex.W-37
Dt.
05.09.2023
Discharge Summary of Ch.Laxmi - mother of petitioner
Ex.W-38
Dt.
07.02.2024
Medical prescription of Ch.Laxmi - mother of petitioner
Ex.W-39
Dt.
11.05.2024
CHAIMS Hospital USG Abdomen Scan of Ch.Laxmi - mother of
petitioner
Ex.W-40
Dt.
11.05.2024
CHAIMS Hospital medical prescription of Ch.Laxmi - mother of
petitioner
Ex.W-41
Dt.
28.05.2024
CHAIMS Hospital medical prescription of Ch.Laxmi - mother of
petitioner
Ex.W-42
Dt.
28.05.2024
CHAIMS Hospital medical prescription of Ch.Laxmi - mother of
petitioner
Ex.W-43
Dt.
1607.2024
Medical prescription of Ch.Laxmi - mother of petitioner
978
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
Ex.W-44
Dt.
24.08.2024
CHAIMS Hospital USG Abdominal scan of Ch.Laxmi - mother of
petitioner
Ex.W-45
Dt.
24.08.2024
CHAIMS Hospital medical prescription of Ch.Laxmi - mother of
petitioner
Ex.W-46
Dt.
24.08.2024
CHAIMS Hospital medical prescription of Ch.Laxmi - mother of
petitioner
Ex.W-47
Dt.
30.11.2024
SCCL Area Hospital medical prescription of Ch.Laxmi - mother of
petitioner
Ex.W-48
Dt.
30.11.2024
SCCL Area Hospital medical prescription of Ch.Laxmi - mother of
petitioner
Ex.W-49
Dt.
30.11.2024
SCCL Area Hospital Reference letter of Ch.Laxmi - mother of
petitioner
Ex.W-50
Dt.
02.12.2024
SCCL Area Hospital Reference letter of Ch.Laxmi - mother of
petitioner
FOR MANAGEMENT:-
Ex.M-1
Dt.
13.04.2021
Attested copy of charge sheet issued to petitioner vide
Lr.No.MMR/KSPT-2/R-07/21/727.
Ex.M-2
Dt.
27.09.2021
01.10.2021
Attested copy of order suspending the petitioner for 10 days vide
Ref MMR/PER/D/072/21/6346.
Ex.M-3
Dt.
08.10.2021
Attested copy of warning letter issued to the petitioner vide
Lr.No.MMR/kept-2/R-07/21/1937.
Ex.M-4
Dt.
04.01.2022
Attested copy of warning letter issued to the petitioner vide
Lr.No.MMR/ KSPT-2/R-07/22/030.
Ex.M-5
Dt.
15.03.2022
Attested copy of charge sheet issued to petitioner vide
Lr.No.MMR/KSPTT-2/R-07/22/14.
Ex.M-6
Dt.
21.06.2022
Attested copy of show casue notice to the petitioner vide
Lr.No.MMR/PER/ D/ 072/21/3574.
Ex.M-7
Dt.
13.07.2022
Attested copy of Stoppage of one increment without cumulative
effect vide Lr.No.MMR/PER/D/072/22/4109.
Ex.M-8
Dt.
31.01.2023
Attested copy of charge sheet issued to petitioner vide
Lr.No.MMR/KSPT-2/R-07/2023/016.
Ex.M-9
Dt.
28.04.2023
Attested copy of enquiry report.
Ex.M-10
Dt.
10.08.2023
Attested copy of notice to petitioner vide LR.No.MMR/PER/D/
072/23/4438.
Ex.M-11
Dt.
01.03.2024
Attested copy of (03) months observation time from 01.04.2024
vide Lr.No.MMR/PER/d/072/24/1014.
Ex.M-12
Dt.
31.01.2024
Attested copy of charge sheet issued to petitioner vide
Lr.No.MMR/KSPT-2/ R-07/2024/55.
Ex.M-13
Dt.
21.01.2025
29
Attested copy of dismissal Order of the petitioner vide
Lr.No.MMR/PER/ D/072/25/445.
Ex.M-14
Dt.
15.11.2024
Attested copy of Fit for duty letter (absent from 03.05.2023 to
09.10.2024).
Ex.M-15
Dt.
23.03.2024
Attested copy of Fit for duty letter (Absent from 02.05.2023 to
15.03.2024).
Ex.M-16
Dt.
22.04.2023
Attested copy of Fit for duty letter (Absent from 08.05.2022 to
18.04.2023).
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
979
Ex.M-17
Dt.
08.07.2022
Attested copy of Fit for duty letter (Absent from 08.05.2022 to
07.07.2022).
Ex.M-18
Dt.
13.01.2024
Attested copy of Fit for duty letter (Absent from 03.05.2023 to
08.01.2024).
Ex.M-19
Dt.
16.12.2022
Attested copy of Fit for duty letter (Absent from 08.05.2022 to
14.12.2022).
नइ ददल्ली, 25 फरवरी, 2026
का.अ. 223.—औद्योजगक fookn vf/kfu;e 1947 (a1947 dk 14 ) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj
अधक 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; psUubZ ds iapkV (a19/2024) izdkf”kr djrh gSA
[सं. एल -39025/01/2026-अइ. अर.( ी-II)-22]
सलोनी, ईृ जनदेिक
New Delhi, the 25th February, 2026
S.O. 223.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. 19/2024) of the Cent.Govt.Indus.Tribunal-cum-Labour Court
Chennai 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)-22]
SALONI, Dy. Director
ANNEXURE
BEFORE THE CENTRAL GOVERNMENT INDUSTRIAL
TRIBUNAL- CUM - LABOUR COURT
CHENNAI
ID No. 19/2024
Present: SUSHIL KUMAR-II, PRESIDING OFFICER
Date: 06-02-2026
The General Secretary,
Indian Bank Employees Union,
No.6, Moore Street, Mannady Corner,
Chennai-600 001. : 1st Party/Petitioner
AND
The General Manager,
CDO, Indian Bank, Co HRM Department,
No.254-260, Avvai Shanmugam Salai,
Royapettah, Chennai-600 014. : 2nd Party/ Respondent
Appearance:
For the 1st Party/Petitioner
: M/s. S. Apuna, Adv
For the 2nd Party/ Respondent
: None
AWARD
The Central Government, Ministry of Labour& Employment vide its Order No.7/12/2023/ 300023019/B4/
ADJ/A1, dated 22.03.2024 referred the following Industrial Dispute to this Tribunal for adjudication.
980
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
The schedule mentioned in that order is:
Whether the demand of the Indian Bank Employees Union seeking recognization for the Army Graduation Certificate
which is recognized by Armed Forces as a valid document for the promotion for Ex-servicemen form the
management of India Bank is legal and Justified? If not, to what relief the Ex-servicemen working in Indian Bank are
entitled?
2.
On receipt of the above reference dated 22.03.2024 from the appropriate Government, the dispute was
registered as ID No. 19/2024 and due notices were issued to both the parties for their appearance fixing the case to
14.06.2024. Neither the Petitioner nor any Counsel / Authorized Representative turned up resulting further
adjournments to 26.08.2024, 29.10.2024, 30.12.2024, 03.03.2024, 26.05.2025, 17.07.2025, 03.09.2025, 30.10.2025,
30.12.2025, 05.02.2026. The Petitioner did not turn up . It reveals from the body of reference that while the
appropriate Govt. sent the reference dated 22.03.2024 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 06.02.2026. Counsel for the Petitioner is present but the Petitioner did not turn up. The
claim statement was not furnished in any manner by the Petitioner. 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.
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
नइ ददल्ली, 25 फरवरी, 2026
का.अ. 224.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj
अधक 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; psUubZ ds iapkV (a20/2024) izdkf”kr djrh gSA
[सं. एल -39025/01/2026-अइ. अर.( ी-II)-23]
सलोनी, ईृ जनदेिक
New Delhi, the 25th February, 2026
S.O. 224.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. 20/2024) of the Cent.Govt.Indus.Tribunal-cum-Labour Court
Chennai 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)-23]
SALONI, Dy. Director
ANNEXURE
BEFORE THE CENTRAL GOVERNMENT INDUSTRIAL
TRIBUNAL- CUM - LABOUR COURT
CHENNAI
ID No. 20/2024
Present: SUSHIL KUMAR-II, PRESIDING OFFICER
Date: 06-02-2026
The General Secretary,
Indian Bank Employees Union,
No.6, Moore Street, Mannady Corner,
Chennai-600 001. : 1st Party/Petitioner
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
981
AND
The General Manager,
CDO, Indian Bank, Co HRM Department,
No.254-260, Avvai Shanmugam Salai,
Royapettah, Chennai-600 014. : 2nd Party/ Respondent
Appearance:
For the 1st Party/Petitioner : M/s. S. Apuna, Adv
For the 2nd Party/ Respondent
: None
AWARD
The Central Government, Ministry of Labour& Employment vide its Order No.7/9/2023/ 300023062/
B4/ADJ/A1, dated 22.03.2024 referred the following Industrial Dispute to this Tribunal for adjudication.
The schedule mentioned in that order is:
Whether the demand of the Indian Bank Employees Union seeking the pension benefits for Shri. K. Ganesan from the
management of Indian Bank is legal and justified? If not, to what relief Shri. K. Ganesan is entitled to?
2.
On receipt of the above reference dated 22.03.2024 from the appropriate Government, the dispute was
registered as ID No. 20/2024 and due notices were issued to both the parties for their appearance fixing the case to
14.06.2024. Neither the Petitioner nor any Counsel / Authorized Representative turned up resulting further
adjournments to 26.08.2024, 29.10.2024, 30.12.2024, 03.03.2024, 26.05.2025, 17.07.2025, 03.09.2025, 30.10.2025,
30.12.2025, 05.02.2026. The Petitioner did not turn up. It reveals from the body of reference that while the
appropriate Govt. sent the reference dated 22.03.2024 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 06.02.2026. Counsel for the Petitioner is present but the Petitioner did not turn up. The
claim statement was not furnished in any manner by the Petitioner. 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.
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
नइ ददल्ली, 25 फरवरी, 2026
का.अ. 225.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj
अधक 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; psUubZ ds iapkV (a27/2024) izdkf”kr djrh gSA
[सं. एल -39025/01/2026-अइ. अर.( ी-II)-24]
सलोनी, ईृ जनदेिक
New Delhi, the 25th February, 2026
S.O. 225.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. 27/2024) of the Cent.Govt.Indus.Tribunal-cum-Labour Court
Chennai 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)-24]
SALONI, Dy. Director
982
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
ANNEXURE
BEFORE THE CENTRAL GOVERNMENT INDUSTRIAL
TRIBUNAL- CUM - LABOUR COURT
CHENNAI
ID No. 27/2024
Present: SUSHIL KUMAR-II, PRESIDING OFFICER
Date: 06-02-2026
The General Secretary,
Indian Bank Employees Union,
No.6, Moore Street, Mannady Corner,
Chennai-600 001. : 1st Party/Petitioner
AND
The General Manager,
CDO, Indian Bank, CO HRM Department,
No.254-260, Avvai Shanmugam Salai,
Royapettah, Chennai-600 014. : 2nd Party/ Respondent
Appearance:
For the 1st Party/Petitioner : M/s. S. Apuna, Adv
For the 2nd Party/ Respondent : None
Award
The Central Government, Ministry of Labour& Employment vide its Order No.7/11/2023/300042958/
B4/ADJ/A1, dated 22.03.2024 referred the following Industrial Dispute to this Tribunal for adjudication.
The schedule mentioned in that order is:
Whether the demand of the Indian Bank Employees Union seeking relief of re-engagement of Smt. M. Devi as
temporary sub-staff to work in the management Bank of Indian Bank is legal and justified? If not, to what relief Smt.
M. Devi is entitled to?
2.
On receipt of the above reference dated 22.03.2024 from the appropriate Government, the dispute was
registered as ID No. 27/2024 and due notices were issued to both the parties for their appearance fixing the case to
25.06.2024. Neither the Petitioner nor any Counsel / Authorized Representative turned up resulting further
adjournments to 28.08.2024, 06.11.2024, 30.12.2024, 03.03.2025, 26.05.2025, 17.07.2025, 03.09.2025, 30.10.2025,
30.12.2025, 05.02.2026. The Petitioner did not turn up. It reveals from the body of reference that while the
appropriate Govt. sent the reference dated 22.03.2024 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 06.02.2026. Counsel for the Petitioner is present but the Petitioner did not turn up. The
claim statement was not furnished in any manner by the Petitioner. 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.
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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
983
नइ ददल्ली, 25 फरवरी, 2026
का.अ. 226.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj
सेंरल अधक ऑफ आंजडया 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; psUubZ ds iapkV (a107/2024) izdkf”kr djrh gSA
[सं. एल -39025/01/2026-अइ. अर.( ी-II)-25]
सलोनी, ईृ जनदेिक
New Delhi, the 25th February, 2026
S.O. 226.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. 107/2024) of the Cent.Govt.Indus.Tribunal-cum-Labour Court
Chennai as shown in the Annexure, in the industrial dispute between the management of Central Bank of
India and their workmen.
[No. L-39025/01/2026- IR(B-II)-25]
SALONI, Dy. Director
ANNEXURE
BEFORE THE CENTRAL GOVERNMENT INDUSTRIAL
TRIBUNAL- CUM - LABOUR COURT
CHENNAI
ID No. 107/2024
Present: SUSHIL KUMAR, PRESIDING OFFICER
Date: 04-02-2026
Smt. Wagiha Mohamed,
No.1, Abirami Nivas,
3rd Street, KSR Nagar,
Ambattur,
Chennai – 600 053.
:
1st Party/Petitioner
AND
The Regional Manager,
Central Bank of India,
No.48/49, Montieth Road,
Egmore,
Chennai- 600 008.
:
2nd Party / Respondent
Appearance:
For the 1st Party/Petitioner :
None
For the 2nd Party / Respondent :
M/s Anil Relwani, Adv
AWARD
The Central Government, Ministry of Labour& Employment vide its Order No. 7/56/2024/B3/ 300096110/
ADJ/A1, dated 05.12.2024 referred the following Industrial Dispute to this Tribunal for adjudication.
The schedule mentioned in that order is:
―Whether the action of Central Bank of India to terminate Smt. Wagiha Mohamed, Casual Sub-Staff is legal
and justified?‖
Whether Smt. Waghia Mohamed‘s demand to be absorbed and regularized from temporary sub-staff to permanent
sub-staff is legal and justified?
984
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
If not, what relief Smt. Wagiha Mohamed is entitled to?
2.
Onreceipt of the above reference dated 05.12.2024 from the appropriate Government, the dispute was
registered as ID No. 107/2024 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, 27.10.2025 and 22.12.2025. The Petitioner did not turn up
whereas the Respondent filed Vakalat Nama. It reveals from the body of reference that while the appropriate Govt.
sent the reference dated 05.12.2024 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 04.02.2026. 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. 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.
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
नइ ददल्ली, 25 फरवरी, 2026
का.अ. 227.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj
सेंरल अधक ऑफ आंजडया 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; psUubZ ds iapkV (a9/2019) izdkf”kr djrh gSA
[सं. एल -12011/80/2018-अइ. अर.( ी-II)]
सलोनी, ईृ जनदेिक
New Delhi, the 25th February, 2026
S.O. 227.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref.9/2019) of the Cent.Govt.Indus.Tribunal-cum-Labour Court
Chennai as shown in the Annexure, in the industrial dispute between the management of Central Bank of
India and their workmen.
[No. L-12011/80/2018- IR(B-II)]
SALONI, Dy. Director
ANNEXURE
BEFORE THE CENTRAL GOVERNMENT INDUSTRIAL
TRIBUNAL- CUM - LABOUR COURT, CHENNAI
Date: 30-01-2026
Present: SUSHIL KUMAR-II,
PRESIDING OFFICER
Industrial Dispute No. 9/2019
BETWEEN
The General Secretary,
Central Bank of India Staff Union
New
No.89, Aziz Mulk 3rd Street,
Thousand Lights, Chennai-600 006.
:
1st Party/Petitioner
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
985
AND
The Regional Manager,
Central Bank of India, Zonal Office,
48/49, Monteith Road, Egmore,
Chennai-600 008.
:
II Party/ Respondent
Appearance:
For the 1st Party/Petitioner :
: M/s. K.M.Ramesh, Advocates
For the II Party/Respondent
: M/s. Anil Relwani, Advocates
The Central Government, Ministry of Labour & Employment vide its Order No.L-12011/80/2018(IR(B-II)
dated 17-12-2018 referred the following Industrial Dispute to this Tribunal for adjudication:-
2. The schedule mentioned in that order is:
―Whether the action of the management of Central Bank of India in transferring Smt. Shobana
Sathiyanarayanan the third time without any request and denying request of 04 lady employees viz (1)
Ms.Poomani, Sub-staff (2) Ms. Uma Maheswari, Sub-staff (3) Chitradevi, SWO (4) Ms.Vinodhini, SWO
though they have given their request and their names are in the Master Transfer Request Register is
justified? If not, to what relief are the workmen entitled to?”
3.
When the matter was posted for hearing, the learned counsel appearing for the Petitioner submitted a
memo stating that the General Secretary of the Petitioner Union has filed a letter dated 05.08.2025 requesting not to
press the above industrial dispute, since during the pendency of appeal, the concerned women employees have been
transferred to their choice and they have no grievance.
4.
Hence, the learned counsel for the Petitioner pleaded that the Industrial dispute raised by the Petitioner
union may be dismissed as not pressed.
ORDER
In view of the above reasons, the Industrial Dispute raised by the Petitioner Union is dismissed as not pressed.
Award is answered accordingly.
Record be consigned to the record room.
SUSHIL KUMAR-II, Presiding Officer
(Dictated and transcribed by PA and
corrected and pronounced in the open
court on this day the 30.01.2026)
नइ ददल्ली, 25 फरवरी, 2026
का.अ. 228.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj
तजमलनाडु ग्राम अधक 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; psUubZ ds iapkV (a111/2024) izdkf”kr djrh gSA
[सं. एल -12025/01/2026-अइ. अर.( ी-I)-42]
सलोनी, ईृ जनदेिक
New Delhi, the 25th February, 2026
S.O. 228.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. 111/2024) of the Cent.Govt.Indus.Tribunal-cum-Labour Court
Chennai as shown in the Annexure, in the industrial dispute between the management of Tamilnadu Grama
Bank and their workmen.
[No. L-12025/01/2026- IR(B-I)-42]
SALONI, Dy. Director
986
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
ANNEXURE
BEFORE THE CENTRAL GOVERNMENT INDUSTRIAL
TRIBUNAL- CUM - LABOUR COURT
CHENNAI
ID No. 111/2024
Present: SUSHIL KUMAR, PRESIDING OFFICER
Date: 04-02-2026
Shri R. Muthupandi,
4/35, Employment Office Road,
Soolakkarai Medu,
Soolakkarai Post,
Virudhunagar – 626 003
:
1st Party/Petitioner
AND
The Branch Manager,
Tamilnadu Grama Bank,
3/142 A, Main Road,
Mettukundu,
Virudhunagar – 626 004.
:
2nd Party / 1st Respondent
The General Manager (HRM),
Tamilnadu Grama Bank,
HRM Department,
6, Yercaud Main Road,
Hasthampatti, Salem – 636 007.
:
2nd Party / 2nd Respondent
Appearance:
For the 1st Party/Petitioner :
: None
For the 2nd Party/Respondent
:
None
AWARD
The Central Government, Ministry of Labour& Employment vide its Order No. 7/9/2024/RM/300082849/
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 action of the management of Tamilnanu Grama Bank, Salem in terminating the service of Shri
R. Muthupandi, who was gainfully employed for the past 12 years, w.e.f. 11.07.2024 without following the
principles of natural justice is legal and justified? If not, to what relief the petitioner concerned is entitled
to?‖
2.
Onreceipt of the above reference dated 03.12.2024 from the appropriate Government, the dispute was
registered as ID No. 111/2024 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, 27.10.2025 and 22.12.2025. The Petitioner did not turn up
whereas the Respondent filed Vakalat Nama. 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 04.02.2026. 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. It reveals the
Petitioner, despite of sufficient opportunity choose not to appear or to file claim statement and documents.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
987
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.
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
नइ ददल्ली, 25 फरवरी, 2026
का.अ. 229.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj
अइडी ीअइ अधक जलजमटेड ds izca/kr=] lac) fu;kstdkas vkSj muds deZdkjkas ds chp vuqca/k esa fufnZ’V औद्योजगक fookn esa
dsUnzh; ljdkj औद्योजगक vf/kdj.k@Je U;k;ky; psUubZ ds iapkV (a32/2024) izdkf”kr djrh gSA
[सं. एल -12025/01/2026-अइ. अर.( ी-I)-43]
सलोनी, ईृ जनदेिक
New Delhi, the 25th February, 2026
S.O. 229.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. 32/2024) of the Cent.Govt.Indus.Tribunal-cum-Labour Court
Chennai as shown in the Annexure, in the industrial dispute between the management of IDBI Bank Ltd., and
their workmen.
[No. L-12025/01/2026- IR(B-I)-43]
SALONI, Dy. Director
ANNEXURE
BEFORE THE CENTRAL GOVERNMENT INDUSTRIAL
TRIBUNAL- CUM - LABOUR COURT
CHENNAI
ID No. 32/2024
Present: SUSHIL KUMAR-II, PRESIDING OFFICER
Date: 05-02-2026
The Secretary,
IDBI Contract Employees Union,
Plot No. 42, Door No. 7, 3rd Main Road,
Sri Saravamangala Nagar,
Chittalapakkam-600 064
: 1st Party/Petitioner
AND
The Dy. General Manager,
FIMD, IDBI Bank Ltd,
No. 115, Annasalai, Saidapet,
Chennai-600 015
: 2nd Party/ 1st Respondent
The General Manger,
Siva Sakthi Enterprises,
Catholic Centre,
988
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
No. 64, Armenian Street,
Parry‘s, Chennai-600 001
: 2nd Party/ 2nd Respondent
The General Manager,
Yogitha Enterprises,
No, 18/30, Vada Agaram,
2ndStreet, Opp. Methanagar,
Aminjikarai, Chennaoi-600 029 : 2nd Party /3rd Respondent
Appearance:
For the 1st Party/Petitioner : M/s. v. Ajoy Khose
For the 2nd Party/ 1nd Respondent : None
For the 2nd party/ 2nd Respondent : None
For the 2nd Party/ 2rd Respondent : None
AWARD
The Central Government, Ministry of Labour& Employment vide its Order No. 7/21/2024/300041650/B4/
ADJ/A1, dated 20.05.2024 referred the following Industrial Dispute to this Tribunal for adjudication.
The schedule mentioned in that order is:
Whether the action of the management of M/s. IDBI Bank in suddenly withdrawing the customary privilege of
receiving the Gratuity Benefits @ the rate of 4.81% of basic monthly to the Facility Management Staff who were
engaged through service legal agreement with M/s. Sivasakthi Enterprises and M/s. Yogitha Enterprises is 9 fair,
Legal and justified? If not what relief the Facility Management Staffs are entitled to?
2.
On receipt of the above reference dated 20.05.2024 from the appropriate Government, the dispute was
registered as ID No. 32/2024 and due notices were issued to both the parties for their appearance fixing the case to
01.08.2024. Neither the Petitioner nor any Counsel / Authorized Representative turned up resulting further
adjournments to 14.10.2024, 06.12.2024, 07.02.2025, 01.05.2025, 02.07.2025, 25.08.2025, 10.09.2025, 06.11.2025,
30.12.2025. The Petitioner did not turn up. It reveals from the body of reference that while the appropriate Govt. sent
the reference dated 20.05.2024 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
05.02.2026. 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. 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.
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
नइ ददल्ली, 25 फरवरी, 2026
का.अ. 230.—औद्योजगक जववाद ऄजधजनयम, 1947 (1947 का 14) की धारा 17 के ऄनुसरण में, ृुणे जस्ट्थत
कृजत्रम ऄंग केंर कमचर्ारी संघ के ऄध्यक्ष और ृुणे जस्ट्थत कृजत्रम ऄंग केंर के कमांडेंट, कमचर्ारी के माध्यम से कमचर्ारी के
ीर् ऄनु ंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक ऄजधकरण- सि- श्रम न्यायालय-1, मुं इ ृंर्ाट(संदभच सं्या-CGIT-
1/22 of 2023) को िजसा दक ऄनुलग्नक में ददखाया गया िज, प्रकाजित करती िज।
[सं. एल -42012/26/25/2021-अइ. अर.(डीयू)]
सलोनी, ईृ जनदेिक
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
989
New Delhi, the 25th February, 2026
S.O. 230.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central
Government hereby publishes the award (Ref. No.CGIT-1/22 of 2023) of the Central Government Industrial
Tribunal cum Labour Court-1, Mumbai as shown in the Annexure, in The Managing Director, B4S Solutions
Pvt. Ltd, Kharadi, Pune and Shri Shayyed Ismail Bhosga, workman.
[No. L-42012/26/25/2021-IR (DU)]
SALONI, Dy. Director
ANNEXURE
BEFORE THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL NO.1,
MUMBAI
Present
JUSTICE ARVIND KUMAR MISHRA
Presiding Officer
REFERENCE NO.CGIT-22 of 2023
Parties: Employers in relation to the management of
The Managing Director,
B4S Solutions Pvt. Ltd, S.No. 22/1/A/1A,
Off. No. 601,& 606, Pride Icon,
Kharadi, Pune-411014.
And
Shri Shayyed Ismail Bhosga,
PO-Halgara, Taluka-Nilanga, Dist. Latur,
Maharashtra-413506.
Appearances:
For the first party Management
:
Absent
For the second party workmen
:
Absent
Mumbai, dated the 6th day of January, 2026.
AWARD
The
present
reference
has
been
made
by
the
Central
Government
by
its
order
No. L-42012/26/25/2021(IR(DU) dated 08/2/2023 passed in exercise of the powers conferred by clause (d) of sub-
section (1) and sub-section (2A) of Section 10 of the Industrial Dispute Act 1947. The terms of reference as per the
schedule to the said order are as under:
“Whether dispute raised by Sh. Sayyed Ismail Bhosga vide letter dated 23.2.2021 against the management of
M/s. B4S Solutions Pvt. Ltd, Pune for alleged illegal transfer from Latur to Pune is covered under the
Industrial Dispute under the jurisdiction of the Central Government under ID Act, 1947? If yes, whether the
action of the management of M/s. b4S Solutions Pvt. Ltd., Pune to transfer Sh. Shayyed Ismail Bhosga from
Latur to Pune is proper, legal and justified? If not, to what relief the concerned applicant is entitled to?
What direction, if any, is necessary in the matter?”
In view of the above said facts the claimant/workman has not filed any statement of claim/ evidence in support of his
case on affidavit, in spite of several opportunities given to him and taking into consideration 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.”
990
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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;
Management submits as under:-
1. The Second Party workman Sh. Sayyed Ismail Bhosga has tendered his resignation from the services of the First
Party Company with effect from 30/3/2021.
2. The Second Party workman also has submitted a letter dated 5/6/2023 in which he has informed the First Party that
he is withdrawing the Industrial Dispute bearing No. Reference CGIT 22 of 2023 which is pending adjudication in
this Hon‘ble Tribunal, he has stated in said letter that he would be filing application to this effect before this Hon‘ble
Tribunal within 14 days.
3. Even otherwise the Second Party workman had remained absent with effect from 20th October 2020 to 7th April
2023. His name therefore was removed from the services of the company on 07th April 2023 on ground that he had
abandoned his services. A copy of letter dated 07th April 2023 issued by First Party Company to Second Party
workman is annexed with this application Now in view of the resignation by Second Party, Second Party‘s discharge
stands converted to acceptance of resignation.
4. The First Party employer therefore state and submits that no cause of action survives in the Industrial Dispute now
and the adjudication proceedings in this case become infructuous.
5. Therefore the First party company respectfully prays that the Industrial Dispute may be disposed of for want of
cause of action.
Since no statement of claim has been filed by the workman in support of his case, the claim is liable to be dismissed.
For the foregoing reasons, the case is dismissed and the workman is not entitled for any relief.
Accordingly, the reference stands answered in terms aforesaid.
Award as above.
Justice ARVIND KUMAR MISHRA, Presiding Officer
नइ ददल्ली, 25 फरवरी, 2026
का.अ. 231.—औद्योजगक जववाद ऄजधजनयम, 1947 (1947 का 14) की धारा 17 के ऄनुसरण में, ृुणे जस्ट्थत
कृजत्रम ऄंग केंर कमचर्ारी ी4एस सॉल्यूिंस प्राआवेट जलजमटेड, ृुणे के प्र ंध जनदेिक और श्री सलीम मस्ट्तान सजयद,
कमचर्ारी के माध्यम से कमचर्ारी के ीर् ऄनु ंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक ऄजधकरण- सि- श्रम न्यायालय-1,
मुं इ ृंर्ाट(संदभच सं्या-CGIT-05 of 2023) को िजसा दक ऄनुलग्नक में ददखाया गया िज, प्रकाजित करती िज।
[सं. एल -42012/26/4/2021-अइ. अर.(डीयू)]
सलोनी, ईृ जनदेिक
New Delhi, the 25th February, 2026
S.O. 231.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central
Government hereby publishes the award (Ref. No.CGIT-05 of 2023) of the Central Government Industrial
Tribunal cum Labour Court-1, Mumbai as shown in the Annexure, in The Managing Director, B4S Solutions
Pvt. Ltd, Pune and Shri Salim Mastan Sayyed, workman.
[No. L-42012/4/2021-IR (DU)]
SALONI, Dy. Director
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
991
ANNEXURE
BEFORE THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL NO.1,
MUMBAI
Present
JUSTICE ARVIND KUMAR MISHRA
Presiding Officer
REFERENCE NO.CGIT-05 of 2023
Parties: Employers in relation to the management of
The Managing Director,
B4S Solutions Pvt. Ltd, S.No. 22/1/A/1A,
Off. No. 601,& 606, Pride Icon,
Kharadi, Pune-411014.
And
Shri Salim Mastan Sayyed,
R/o, Talegaon (BHO), At Post-Talegaon(Bho)
Tal-Devni, Distt-LRUE(MS)-413506
Appearances:
For the first party Management
:
Absent
For the second party workmen
:
Absent
Mumbai, dated the 6th day of January, 2026.
AWARD
The present reference has been made by the Central Government by its order No. L-42012/4/2021(IR(DU)
dated 20/1/2023 passed in exercise of the powers conferred by clause (d) of sub-section (1) and sub-section (2A) of
Section 10 of the Industrial Dispute Act 1947. The terms of reference as per the schedule to the said order are as
under:
“Whether dispute raised by Sh. Salim Mastan Sayyed against the management of M/s. B4S Solutions Pvt.
Ltd, Pune for alleged illegal transfer from Nilang, to Nagpur is covered under the industrial dispute under
the jurisdiction of the Central Government under ID Act, 1947? If yes, whether the action of the management
of M/s. b4S Solutions Pvt. Ltd, Pune to transfer Shri Salim Mastan Sayyed from Nilange, Latur to Nagpur is
proper, legal and justified? If not, to what relief the concerned applicant is entitled to? What Direction, if
any is necessary in the matter?”
In view of the above said facts the claimant/workman has not filed any statement of claim/ evidence in support of his
case on affidavit, in spite of several opportunities given to him and taking into consideration 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.”
992
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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;
Management submits as under:-
6. The Second Party workman Sh. Salim Mastan Sayyed has tendered his resignation from the services of the First
Party Company with effect from 30/3/2021.
7. The Second Party workman also has submitted a letter dated 5/6/2023 in which he has informed the First Party that
he is withdrawing the Industrial Dispute bearing No. Reference CGIT 5 of 2023 which is pending adjudication in this
Hon‘ble Tribunal, he has stated in said letter that he would be filing application to this effect before this Hon‘ble
Tribunal within 14 days.
8. Even otherwise the Second Party workman had remained absent with effect from 17th March 2021 to 7th April
2023. His name therefore was removed from the services of the company on 07th April 2023 on ground that he had
abandoned his services. A copy of letter dated 07th April 2023 issued by First Party Company to Second Party
workman is annexed with this application Now in view of the resignation by Second Party, Second Party‘s discharge
stands converted to acceptance of resignation.
9. The First Party employer therefore state and submits that no cause of action survives in the Industrial Dispute now
and the adjudication proceedings in this case become infructuous.
10. Therefore the First party company respectfully prays that the Industrial Dispute may be disposed of for want of
cause of action.
Since no statement of claim has been filed by the workman in support of his case, the claim is liable to be dismissed.
For the foregoing reasons, the case is dismissed and the workman is not entitled for any relief.
Accordingly, the reference stands answered in terms aforesaid.
Award as above.
Justice ARVIND KUMAR MISHRA, Presiding Officer
नइ ददल्ली, 25 फरवरी, 2026
का.अ. 232.—औद्योजगक जववाद ऄजधजनयम, 1947 (1947 का 14) की धारा 17 के ऄनुसरण में, केन्रीय
भारती आंफ्रजटेल जलजमटेड / आंडस टावसच जलजमटेड, वसंत कुंि, नइ ददल्ली, सकचल एर्अर िेड, भारती आंफ्रजटेल जलजमटेड/
आंडस टावसच जलजमटेड, आंदौर, मध्य प्रदेि, िोनल मजनेिर, भारती आंफ्रजटेल जलजमटेड / आंडस टावसच जलजमटेड, गुना, मध्य
प्रदेि, आंडस टावसच जलजमटेड, ऄृने कायचकारी ऄजधकारी, वसंत कुंि, नइ ददल्ली और श्री दीृेंर घाटे, कमचर्ारी के माध्यम
से कमचर्ारी के ीर् ऄनु ंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक ऄजधकरण- सि- श्रम न्यायालय, ि लृुर ृंर्ाट(संदभच
सं्या-CGIT/LC/RC/07/2019) को िजसा दक ऄनुलग्नक में ददखाया गया िज, प्रकाजित करती िज।
[सं. एल -42025/07/2026/08-अइअर (डीयू)]
सलोनी, ईृ जनदेिक
New Delhi, the 25th February, 2026
S.O. 232.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central
Government hereby publishes the award (Ref. No..CGIT/LC/RC/07/2019) of the Central Government Industrial
Tribunal cum Labour Court, Jabalpur as shown in the Annexure, in Bharti Infratel Ltd. / Indus Towers Limited,
Vasant Kunj New Delhi, Circle HR Head, Bharti Infratel Ltd. / Indus Towers Limited, Indore M.P., Zonal
Manager, Bharti Infratel Ltd. / Indus Towers Limited, Guna M.P., Indus Towers Limited,Through its
Executive Officer, Vasant Kunj,New Delhi and Shri Dependra Ghate workman.
[No. L-42025/07/2026/08-IR (DU)]
SALONI, Dy. Director
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
993
ANNEXURE
THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL, JABALPUR (M.P.)
NO. CGIT/LC/RC/07/2019
Present: P.K.Srivastava
H.J.S.(Retd.)
Dependra Ghate,
S/o Shri Prabhakar Ghate,
Aged about 47 years,
R/o Jatar Gali, Laxmi Ganj,
Lashkar, Gwalior (M.P.)
Workman
Versues
1. Bharti Infratel Ltd. / Indus Towers Limited
Through its Chairman
Registered Office- Bharti Crescent 1,
Nelson Mandela Road,
Vasant Kunj Phase-II New Delhi 110070
2. Circle HR Head
Bharti Infratel Ltd. / Indus Towers Limited
H-3, Metro Tower, 4th Floor, Scheme No. 54,
Near Vijay Nagar Square,
A.B. Road Indore M.P.
3. Zonal Manager
Bharti Infratel Ltd. / Indus Towers Limited
Royal Height Building, Ist Floor, In front of HDFC Bank, A.B. Road Guna M.P.
4. Indus Towers Limited,
Through its Executive Officer
Registered Office - Bharti Crecent-1, ]
Nelson Mandela Road Vasant Kunj,
Phrase II New Delhi - 110070
Management
(JUDGMENT)
(Passed on this 08th day of December - 2025)
This petition under Section 2 (A) (2&3) of the Industrial Disputes Act, 1947 as amended by the Amendment
Act, 2010 filed by the petitioner workman against his termination with the case that he was first appointed as Cluster
Incharge with the Management vide order dated 11.04.2011and was posted at Datiya Gwalior Zone (M.P.). He
successfully completed his probation period and thereafter, he was transferred from Datiya Gwalior Zone to Shajapur
Ratlam Zone. As his work was nowhere supervisory or Managerial in nature, the Respondent No. 4 was the
immediate Boss of the petitioner made some illegal demands which the petitioner showed inability to fulfil, he
threatens the petitioner to spoil his career. The petitioner was transferred from Datiya Gwalior Zone to Shajapur
Ratlam Zone. The petitioner was sick at that time and was not in a position to join at the new place of his posting. He
submitted his application for medical leave which was sanctioned by Authorities and he also requested for
cancellation of his transfer which was not accepted. Since, his transfer was mala fide and in form of his victimization,
he raised a dispute before the Conciliation Officer in State Government. The Management terminated his services
vide order dated 15.11.2018 on the ground that they have lost confidence in the petitioner which amounts to
994
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
misconduct. This termination was without any show cause notice or any charge sheet initiating Departmental Enquiry,
hence it is unjust, illegal and arbitrary. This act of Management amounts to retrenchment of services of the petitioner.
Hence is in violation of Section 25F and 25G of the Act. The petitioner has prayed that setting aside his termination as
it is vitiated in law, he be reinstated with back wages and consequential benefits.
Due to absence of Management, the petition proceeded ex-parte against them. The petitioner had filed
affidavit as his examination-in-chief and proved Exhibit W-1 to W-9 to be referred to as and when required.
During the proceedings, the Management appeared and on their application, order to proceed ex-parte was
set-aside on cost. Their written statement of defense was taken on record and case proceeded.
The Management has taken a case that, firstly, the petitioner is not a workman under Section 2-S of the Act
because he was a cluster in-charge drawing wages more than 40,000/- per month and was responsible for execution,
operation and maintenance in Managerial and administrative capacity and Secondly, he was absenting himself un
authorizedly and wilfully without permission of the Management and did not report on the place which he was
transferred, hence Management was left with no option but to terminate his services.
The petitioner did not appear for cross-examination by Management, in the light of his affidavit
examination in chief. Management did not file any affidavit rather they filed the appointment letter and termination
letter of the petitioner.
At the stage of argument also, none appeared for petitioner. I have heard argument of Learned Counsel Mr.
Jaideep Bansal for Management and have gone through records.
It is worth mentioning that during the proceedings, the Management for Bharti Infratel was taken over by
Indus Towers Limited and they were substituted in place of Bharti Infratel during the proceedings.
The main objection raised by Management with regards to Maintainability of the petition is that, the
petitioner is not a Workman as defined under Section 2(s) of the Act.
The relevant provisions are being reproduced as under:
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
(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.
Learned Counsel for Management has relied on judgment of Hon’ble High Court of Bombay in the case of
Union Carbide (India) Ltd. V.s. Ramesh Kumbla and Others reported in MANU/MH/0073/1999 and
another judgment of the same High Court in the case of Union Carbide (India) Ltd. V.s. D. Samuel
and Others reported in MANU/MH/1713/1998. In these two cases, after analyzing the judgment of various
High Courts and Hon‘ble Supreme Court, the Single Bench of Hon‘ble Bombay High Court has summarized
the principles on the basis of which it is to be decided whether the Workman is in supervisory capacity or
not. These tests mentioned in Para 34 and 35 of the Judgment are being reproduced as follows:
Para-34.
In so far as the Apex Court is concerned, some of the tests laid down are:
(1)
Designation is not material but what is important is the nature of work.
(2)
Find out the dominant purpose of employment and not any additional duties the employee
may be performing.
(3)
Can he bind the Company/employer to some kind of decisions on behalf of the
Company/employer.
(4)
Has the employee power to direct or oversee the work of his subordinates.
(5)
Has the power to sanction leave or recommend it; and
(6)
Has he the power to appoint, terminate or take disciplinary action against workmen.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
995
Para-35.
From the judgment of this Court and the other High Courts some of the tests apart
from what the Apex Court has stated are:
(a) Whether the employee can examine the quality of work and whether such work is performed in
satisfactory manner or not;
(b) Does the employee have powers of assigning duties and distribution of work;
(c) Can he indent material and distribute the same amongst the workmen;
(d) Even though he has no authority to grant leave does he have power to recommend leave;
(e) Are there persons working under him;
(f) Has he the power to supervise the work of men and not merely machines;
(g) Dos he mark the attendance of other employees;
(h) Does he write the confidential reports of his subordinates.
Though, in his petition, the petitioner has alleged that he was not working in supervisory or Managerial
capacity as he stated in his affidavit as his examination in chief but he never appeared for cross-examination with
respect to his affidavit, hence his affidavit will never be read in support of his allegations on this petition.
As it is evident from his appointment letter, his job has not been specified. He was appointed as Cluster In-
charge in the Operation and Maintenance Department as Senior Executive Band F. There is no circular or standing
order applicable with the Management, filed from the side of petitioner as regards to the responsibilities for the said
post, hence keeping in view his pay structure he cannot be held to be workman under Section 2(s) of the Act.
Since, the petitioner has been held not to be a workman under Section 2(s) of the Act; his claim is not
cognizable by this Tribunal in this Act.
Accordingly the petition fails.
ORDER
Petition dismissed.
No order as to cost.
DATE:- 08/12/2025
P.K. SRIVASTAVA, Presiding Officer
नइ ददल्ली, 25 फरवरी, 2026
का.अ. 233.—औद्योजगक जववाद ऄजधजनयम, 1947 (1947 का 14) की धारा 17 के ऄनुसरण में, ृुणे जस्ट्थत
कृजत्रम ऄंग केंर कमचर्ारी संघ के ऄध्यक्ष और ृुणे जस्ट्थत कृजत्रम ऄंग केंर के कमांडेंट, कमचर्ारी के माध्यम से कमचर्ारी के
ीर् ऄनु ंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक ऄजधकरण- सि- श्रम न्यायालय-1, मुं इ ृंर्ाट (संदभच सं्या-CGIT-
08 of 2022) को िजसा दक ऄनुलग्नक में ददखाया गया िज, प्रकाजित करती िज।
[सं. एल -42011/132/2022-अइअर (डीयू)]
सलोनी, ईृ जनदेिक
New Delhi, the 25th February, 2026
S.O. 233.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central
Government hereby publishes the award (Ref. No. CGIT-08 of 2022) of the Central Government Industrial
Tribunal cum Labour Court-1, Mumbai as shown in the Annexure, in The President, Artificial Limb Centre
Employees Union, Pune, and The Commandant, Artificial Limb Centre, Pune, workman.
[No. L-42011/132/2022- IR(DU)]
SALONI, Dy. Director
996
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
ANNEXURE
BEFORE THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL NO. 1,
MUMBAI
Present
JUSTICE ARVIND KUMAR MISHRA
Presiding Officer
REFERENCE NO.CGIT-08 of 2022
Parties: Employers in relation to the management of
The Commandant
Artificial Limb Centre
Pune-411040
V/s.
The President,
Artificial Limb Centre Employees Union,
73, Wwanwarie Bazar,
Pune-411040.
Appearances:
For the first party Management
:
Mr. B..K. Ashok(Adv.)
For the second party workmen
:
Absent
Mumbai, dated the 5th day of January, 2026.
AWARD
The present reference has been made by the Central Government by its order No. L-42011/132/2022
(IR(DU)) dated 17/05/2022 passed in exercise of the powers conferred by clause (d) of sub-section (1) and sub-
section (2A) of Section 10 of the Industrial Dispute Act 1947. The terms of reference as per the schedule to the said
order are as under:
“Whether action of the management of Artificial Limb Centre, Pune for decision to observe closed holidays
list of calendar year 2022 at Artificial Limb Centre centre in respect of dispute raised by Artificial Limb
Centre Employees Union, Pune vide letter dated 11.08.2021 is legal and justified? If not , to what relief
Artificial Limb Centre Employees Union, Pune is entitled to? What other directions, if any, are necessary on
the matter?” ?”
In view of the above said facts the claimant/workman has not field any statement of claim/ evidence in support of his
case on affidavit, in spite of several opportunities given to him and taking into consideration 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.”
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
997
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;
The Second party/Union by its application dated 04.10.2022 (Received in this office on 3.3.2023) desired to withdraw
the present dispute and prayed that the second party women be allowed to withdraw the dispute.
The application is allowed. As such thee reference is disposed of for want of prosecution.
For the foregoing reasons, the case is dismissed and the union is not entitled for any relief.
Accordingly, the reference stands answered in terms aforesaid.
Award as above.
Justice ARVIND KUMAR MISHRA, Presiding Officer
नइ ददल्ली, 25 फरवरी, 2026
का.अ. 234.—औद्योजगक जववाद ऄजधजनयम,1947 (1947 का 14) की धारा 17 के ऄनुसरण में, ृुणे जस्ट्थत
कृजत्रम ऄंग केंर कमचर्ारी प्रसार भारती के ऄजतररि मिाजनदेिक, दूरदिचन केंर, मुं इ, मिाजनदेिालय, प्रसार भारती,
दूरदिचन केंर दूरदिचन भवन, मंडी िाईस, नइ ददल्ली और ऄध्यक्ष, ऄजखल ररृजब्लकन मिदूर संग न, मुं इ कमचर्ारी के
माध्यम से कमचर्ारी के ीर् ऄनु ंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक ऄजधकरण- सि- श्रम न्यायालय-1, मुं इ ृंर्ाट
(संदभच सं्या-CGIT-14 of 2017) को िजसा दक ऄनुलग्नक में ददखाया गया िज, प्रकाजित करती िज।
[सं. एल -40011/16/2017-अइअर (डीयू)]
सलोनी, ईृ जनदेिक
New Delhi, the 25th February, 2026
S.O. 234.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central
Government hereby publishes the award (Ref. No.CGIT-14 of 2017) of the Central Government Industrial
Tribunal cum Labour Court-1, Mumbai as shown in the Annexure, in The Additional Director General, Prasar
Bharati, Doordarshan Kendra, Mumbai, The Directorate General, Prasar Bharati, Doordarshan kendra
Doordarshan Bhawan, Mandi House, New Delhi and The President, All Republican Mazdoor Sanghatana,
Mumbai workman.
[No. L-40011/16/2017-IR (DU)]
SALONI, Dy. Director
ANNEXURE
BEFORE THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL NO.1,
MUMBAI
Present
JUSTICE ARVIND KUMAR MISHRA
Presiding Officer
REFERENCE NO.CGIT-14 of 2017
Parties: Employers in relation to the management of
1. The Additional Director General, Prasar Bharati,
Doordarshan Kendra, Worli,
Mumbai-400 030.
2. The Directorate General, Prasar Bharati,
Doordarshan kendra Doordarshan Bhawan,
Conpernicus Marg, Mandi House,
New Delhi-110001.
998
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
And
The President, All Republican Mazdoor Sanghatana,
19/32, B.D.D. Building, N.M. Joshi Road,
Delai Raod,
Mumbai-400 013.
Appearances:
For the first party Management
:
Absent
For the second party workmen
:
Absent
Mumbai, dated the 23rd day of December, 2025.
AWARD
The present reference has been made by the Central Government by its order No. L-40011/16/2017-IR(DU))
dated 19/9/2017 passed in exercise of the powers conferred by clause (d) of sub-section (1) and sub-section (2A) of
Section 10 of the Industrial Dispute Act 1947. The terms of reference as per the schedule to the said order are as
under:
“Whether the action of DG, DDK, New Delhi in not considering the enhancement of fees of Video Editors
and removing the category of Video Editors from the fee structure is fair, legal and justified? If not, what
relief these Video Editors are entitled to?”
In view of the above said facts the claimant/workman has not field any statement of claim/ evidence in support of his
case on affidavit, in spite of several opportunities given to him and taking into consideration 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.”
Since no statement of claim has been filed by the union in support of his case, the claim is liable to be dismissed.
For the foregoing reasons, the case is dismissed and the union is not entitled for any relief.
Accordingly, the reference stands answered in terms aforesaid.
Award as above.
Justice ARVIND KUMAR MISHRA, Presiding Officer
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
999
नइ ददल्ली, 25 फरवरी, 2026
का.अ. 235.—औद्योजगक जववाद ऄजधजनयम, 1947 (1947 का 14) की धारा 17 के ऄनुसरण में, ृुणे जस्ट्थत
कृजत्रम ऄंग केंर कमचर्ारी भारत िेवी आलेजक्रकल जलजमटेड के मिाप्र ंधक (मानव संसाधन प्रमुख),ऄंधेरी ृूवच, मुं इ,
श्री डी.एम. तावड़े, अकािगंगा सिकारी अवास सजमजत जलजमटेड, मुं इ और श्रीमती जस्ट्मता ाकुर, कमचर्ारी के माध्यम
से कमचर्ारी के ीर् ऄनु ंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक ऄजधकरण- सि- श्रम न्यायालय-1, मुं इ ृंर्ाट (संदभच
सं्या-CGIT-23 of 2014) को िजसा दक ऄनुलग्नक में ददखाया गया िज, प्रकाजित करती िज।
[सं. एल -42012/88/2014-अइअर (डीयू)]
सलोनी, ईृ जनदेिक
New Delhi, the 25th February, 2026
S.O. 235.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central
Government hereby publishes the award (Ref. No.CGIT-23 of 2014) of the Central Government Industrial
Tribunal cum Labour Court-1, Mumbai as shown in the Annexure, in The General Manager(Head HR) Bharat
Heavy Electrical Ltd, Andheri East, Mumbai, M/s. D.M. Tawade, Aakashganga Co-op Hsg. Society Ltd,
Mumbai and Smt. Smita Thakur, workman.
[No. L-42012/88/2014-IR (DU)]
SALONI, Dy. Director
ANNEXURE
BEFORE THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL NO.1,
MUMBAI
Present
JUSTICE ARVIND KUMAR MISHRA
Presiding Officer
REFERENCE NO.CGIT-23 of 2014
Parties: Employers in relation to the management of
1. The General Manager(Head HR)
Bharat Heavy Electrical Ltd,
Plot No. D-1, Road No. 16, MIDC
Andheri East,
Mumbai-400 093.
2. M/s. D.M. Tawade,
Aakashganga Co-op Hsg. Society Ltd,
Shop No. 5, SL Raheja Road, Mahim
Mumbai.
And
Smt. Smita Thakur,
Gulmohar HSG, Devipada,
Borivali(East)
Mumbai-400034.
Appearances:
For the first party Management No.1
:
Absent
For the first party Management No.2:
Absent
For the second party workmen
:
Absent
Mumbai, dated the 22nd day of December, 2025.
1000
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
AWARD
The
present
reference
has
been
made
by
the
Central
Government
by
its
order
No. L-42012/88/2014(IR(DU)) dated 04/07/2014 passed in exercise of the powers conferred by clause (d) of sub-
section (1) and sub-section (2A) of Section 10 of the Industrial Dispute Act 1947. The terms of reference as per the
schedule to the said order are as under:
“Whther the action of the management of M/s. D.M. Tawade a contracot engaged by M/s. BHEL over the
issue of alleged illegal termination of service of Smt. Smita Thakur w.e.f. 01/09/2013 and non-payment of
bonus etc., is legal and justified? If not, what rewlied the workman is entitled to?
In view of the above said facts the claimant/workman has not field any evidence in support of his case on affidavit, in
spite of several opportunities given to him and taking into consideration 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.”
As the workman has not filed any evidence, so it is a case of no evidence filed on bhealf of workman in support of
case set up by her liable to be dismissed.
For the foregoing reasons, the case is dismissed and the workman is not entitled for any relief.
Accordingly, the aforesaid reference made by the Central Government stands answered, as above.
Justice ARVIND KUMAR MISHRA, Presiding Officer
नइ ददल्ली, 25 फरवरी, 2026
का.अ. 236.—औद्योजगक जववाद ऄजधजनयम, 1947 (1947 का 14) की धारा 17 के ऄनुसरण में, केन्रीय
सरकार भारती आंफ्राटेल जलजमटेड / आंडस टावसच जलजमटेड, नइ ददल्ली के मु्य कायचकारी ऄजधकारी, भारती आंफ्राटेल
जलजमटेड/आंडस टावसच जलजमटेड, गुडगांव के सकचल मानव संसाधन प्रमुख, भारती आंफ्राटेल जलजमटेड / आंडस टावसच जलजमटेड,
आंदौर, मध्य प्रदेि के िोनल मजनेिर, भारती आंफ्राटेल जलजमटेड / आंडस टावसच जलजमटेड, गुना, मध्य प्रदेि, आंडस टावसच
जलजमटेड, वसंत कुंि, नइ ददल्ली और श्री प्रमोद घेल कमचर्ारी के ीर् ऄनु ंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक
ऄजधकरण- सि- श्रम न्यायालय, ि लृुर ृंर्ाट(संदभच सं्या-CGIT/LC/RC/02/2019) को िजसा दक ऄनुलग्नक में
ददखाया गया िज, प्रकाजित करती िज।
[सं. एल -42025/07/2026/06-अइअर (डीयू)]
सलोनी, ईृ जनदेिक
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1001
New Delhi, the 25th February, 2026
S.O. 236.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central
Government hereby publishes the award (Ref. No..CGIT/LC/RC/02/2019) of the Central Government Industrial
Tribunal cum Labour Court, Jabalpur as shown in the Annexure, in Bharti Infratel Ltd. / Indus Towers Limited
New Delhi, Chief Executive Officer, Bharti Infratel Ltd. / Indus Towers Limited, Gudgaon, Circle HR Head
Bharti Infratel Ltd. / Indus Towers Limited, Indore M.P., Zonal Manager, Bharti Infratel Ltd. / Indus Towers
Limited, Guna M.P., Indus Towers Limited, Vasant Kunj, New Delhi and Shri Pramod Baghel workman.
[No. L-42025/07/2026/06-IR (DU)]
SALONI, Dy. Director
ANNEXURE
THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL, JABALPUR (M.P.)
NO. CGIT/LC/RC/02/2019
Present: P.K.Srivastava
H.J.S.(Retd.)
Pramod Baghel
S/o Shri VS. Baghel
Aged about 37 years,
R/o 42-B, Kunwar Maharaj Nagar,
Behind Ram Vatika,
Sachin Tendulkar Marg,
New Govindpuri, Gwalior (M.P.)
Workman
Versues
1. Bharti Infratel Ltd. / Indus Towers Limited
Through its Chairman
Registered Office- Bharti Crescent 1,
Nelson Mandela Road,
Vasant Kunj Phase-II New Delhi 110070
2. Chief Executive Officer,
Bharti Infratel Ltd. / Indus Towers Limited
901, Park Central, 9th Floor,
Sector 30, Gudgaon - 122001.
3. Circle HR Head
Bharti Infratel Ltd. / Indus Towers Limited
H-3, Metro Tower, 4th Floor, Scheme No. 54,
Near Vijay Nagar Square,
A.B. Road Indore M.P.
4. Zonal Manager
Bharti Infratel Ltd. / Indus Towers Limited
Royal Height Building, Ist Floor, In front of HDFC Bank, A.B. Road Guna M.P.
5. Indus Towers Limited,
Through its Executive Officer
1002
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
Registered Office - Bharti Crecent-1, ]
Nelson Mandela Road Vasant Kunj,
Phrase II New Delhi - 110070
Management
(JUDGMENT)
(Passed on this 08th day of December - 2025)
This petition under Section 2 (A) (2&3) of the Industrial Disputes Act, 1947 as amended by the Amendment
Act, 2010 filed by the petitioner workman against his termination with the case that he was first appointed as Cluster
Incharge with the Management vide order dated 25.02.2015 and was posted at Guna (M.P.). He successfully
completed his probation period and thereafter, he was transferred from Guna to Shivpuri. As his work was nowhere
supervisory or Managerial in nature, the Respondent No. 4 was the immediate Boss of the petitioner made some
illegal demands which the petitioner showed inability to fulfil, he threatens the petitioner to spoil his career. The
petitioner was transferred from Shivpuri to Bhatpara vide communication on e-mail received on 28.06.2017. He was
directed to report at Bhatpara on 03.07.2017. The petitioner was sick at that time and was not in a position to join at
the new place of his posting. He submitted his application for medical leave which was sanctioned by Authorities and
he also requested for cancellation of his transfer which was not accepted. Since, his transfer was mala fide and in form
of his victimization, he raised a dispute before the Conciliation Officer in State Government. The Management
terminated his services vide order dated 27.09.2017 on the ground that they have lost confidence in the petitioner
which amounts to misconduct. This termination was without any show cause notice or any charge sheet initiating
Departmental Enquiry, hence it is unjust, illegal and arbitrary. This act of Management amounts to retrenchment of
services of the petitioner. Hence is in violation of Section 25F and 25G of the Act. The petitioner has prayed that
setting aside his termination as it is vitiated in law, he be reinstated with back wages and consequential benefits.
Due to absence of Management, the petition proceeded ex-parte against them. The petitioner had filed
affidavit as his examination-in-chief and proved Exhibit W-1 to W-9 to be referred to as and when required.
During the proceedings, the Management appeared and on their application, order to proceed ex-parte was
set-aside on cost. Their written statement of defense was taken on record and case proceeded.
The Management has taken a case that, firstly, the petitioner is not a workman under Section 2-S of the Act
because he was a cluster in-charge drawing wages more than 40,000/- per month and was responsible for execution,
operation and maintenance in Managerial and administrative capacity and Secondly, he was absenting himself un
authorizedly and wilfully without permission of the Management and did not report on the place which he was
transferred, hence Management was left with no option but to terminate his services.
The petitioner did not appear for cross-examination by Management, in the light of his affidavit
examination in chief. Management did not file any affidavit rather they filed the appointment letter and termination
letter of the petitioner.
At the stage of argument also, none appeared for petitioner. I have heard argument of Learned Counsel
Mr. Jaideep Bansal for Management and have gone through records.
It is worth mentioning that during the proceedings, the Management for Bharti Infratel was taken over by
Indus Towers Limited and they were substituted in place of Bharti Infratel during the proceedings.
The main objection raised by Management with regards to Maintainability of the petition is that, the
petitioner is not a Workman as defined under Section 2(s) of the Act.
The relevant provisions are being reproduced as under:
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
(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.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1003
Learned Counsel for Management has relied on judgment of Hon’ble High Court of Bombay in the case of
Union Carbide (India) Ltd. V.s. Ramesh Kumbla and Others reported in MANU/MH/0073/1999 and
another judgment of the same High Court in the case of Union Carbide (India) Ltd. V.s. D. Samuel
and Others reported in MANU/MH/1713/1998. In these two cases, after analyzing the judgment of various
High Courts and Hon‘ble Supreme Court, the Single Bench of Hon‘ble Bombay High Court has summarized
the principles on the basis of which it is to be decided whether the Workman is in supervisory capacity or
not. These tests mentioned in Para 34 and 35 of the Judgment are being reproduced as follows:
Para-34. In so far as the Apex Court is concerned, some of the tests laid down are:
(1)
Designation is not material but what is important is the nature of work.
(2)
Find out the dominant purpose of employment and not any additional duties the employee may
be performing.
(3)
Can he bind the Company/employer to some kind of decisions on behalf of the
Company/employer.
(4)
Has the employee power to direct or oversee the work of his subordinates.
(5)
Has the power to sanction leave or recommend it; and
(6)
Has he the power to appoint, terminate or take disciplinary action against workmen.
Para-35.From the judgment of this Court and the other High Courts some of the tests apart from what
the Apex Court has stated are:
(a) Whether the employee can examine the quality of work and whether such work is performed in
satisfactory manner or not;
(b) Does the employee have powers of assigning duties and distribution of work;
(c) Can he indent material and distribute the same amongst the workmen;
(d) Even though he has no authority to grant leave does he have power to recommend leave;
(e) Are there persons working under him;
(f) Has he the power to supervise the work of men and not merely machines;
(g) Dos he mark the attendance of other employees;
(h) Does he write the confidential reports of his subordinates.
Though, in his petition, the petitioner has alleged that he was not working in supervisory or Managerial
capacity as he stated in his affidavit as his examination in chief but he never appeared for cross-examination with
respect to his affidavit, hence his affidavit will never be read in support of his allegations on this petition.
As it is evident from his appointment letter, his job has not been specified. He was appointed as Cluster In-
charge in the Operation and Maintenance Department as Senior Executive Band F. There is no circular or standing
order applicable with the Management, filed from the side of petitioner as regards to the responsibilities for the said
post, hence keeping in view his pay structure he cannot be held to be workman under Section 2(s) of the Act.
Since, the petitioner has been held not to be a workman under Section 2(s) of the Act; his claim is not
cognizable by this Tribunal in this Act.
Accordingly the petition fails.
ORDER
Petition dismissed.
No order as to cost.
DATE:- 08/12/2025
P.K. SRIVASTAVA, Presiding Officer
नइ ददल्ली, 25 फरवरी, 2026
का.अ. 237.—औद्योजगक जववाद ऄजधजनयम, 1947 (1947 का 14) की धारा 17 के ऄनुसरण में, केन्रीय
सरकार िवािर नवोदय जवद्यालय, मानव संसाधन जवकास मंत्रालय, भारत सरकार के ईृक्रम, भोृाल के जनदेिक,
िवािर नवोदय जवद्यालय, मानव संसाधन जवकास मंत्रालय, भारत सरकार के ईृक्रम, मध्य प्रदेि के प्रधानार्ायच और
1004
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
श्री राधादकिन ईफच रािेि, श्रजमक के ीर् औद्योजगक जववाद कमचर्ारी के ीर् ऄनु ंध में जनर्ददष्ट केन्रीय सरकार
औद्योजगक ऄजधकरण- सि- श्रम न्यायालय, ि लृुर ृंर्ाट(संदभच सं्या-CGIT/LC/R/80/2020) को िजसा दक ऄनुलग्नक
में ददखाया गया िज, प्रकाजित करती िज।
[सं. एल -42025/07/2026/07-अइअर (डीयू)]
सलोनी, ईृ जनदेिक
New Delhi, the 25th February, 2026
S.O. 237.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central
Government hereby publishes the award (Ref. No..CGIT/LC/R/80/2020) of the Central Government Industrial
Tribunal cum Labour Court, Jabalpur as shown in the Annexure, in The Industrial dispute between the
employers in Director, Jawahar Navodaya Vidyalaya, Ministry of Human Resources Development,
Government of India Undertaking, Bhopal The Principal,Jawahar Navodaya Vidyalaya, Ministry of Human
Resources Development, Government of India Undertaking, Madhya Pradesh and Shri Radhakishan Urf.
Rajesh, workman.
[No. L-42025/07/2026/07-IR (DU)]
SALONI, Dy. Director
ANNEXURE
THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL,
JABALPUR, (M.P.)
NO. CGIT/LC/R/80/2020
Present: P.K.Srivastava
H.J.S.(Retd.)
1. Shri Radhakishan Urf.
Rajesh S/o. Shri Motilal,
C/o. Shri S.C. Shrivastava,
Advocate, Chamber Number 207,
Shalimar Trade Centre,
Alapna Tiraha, Hamidia Road,
Bhopal (Madhya Pradesh ) – 462 001
Workman
Vs
1. Director,
Jawahar Navodaya Vidyalaya,
Ministry of Human Resources Development,
Government of India Undertaking, Ashok Nagar,
Bhopal (M.P.) – 462 001
2. The Principal,
Jawahar Navodaya Vidyalaya,
Ministry of Human Resources Development,
Government of India Undertaking,
Village: Aranyakala,
Disstt.Shajapur (Madhya Pradesh) - 465 333
Management
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1005
(JUDGMENT)
(Passed on this 05th day of December, 2025)
As per letter dated 10/12/2020 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. J-1(1-47)/2020-IR dt. 10/12/2020. The dispute under reference relates to:
―क्मा प्रफन्धन-संचारक, जवाहय नवोदम ववद्मारम, बोऩार व्दाया काभगाय श्री याधाककशन उपफ याजेश आत्भज श्री
भोतीरार को ददनांक : 28/01/2018 को औद्मौगगक वववाद अगधननमभ की धाया 25-एप का अनुऩारन ककए बफना सेवा से ऩृथक
ककमा जाना न्मामसंगत है ? मदद नह ं तो श्री याधाककशन उपफ याजेश ककस अनुतोष को ऩाने का अगधकाय है?"
The case of the workman is mainly that, he was appointed as Helper against the vacant post on permanent
basis on 14.04.2001 and worked in the Mess of the school continuously till 28.01.2018, his services were dispensed
with by the management without any notice or compensation. According to him, this action of management is unjust,
illegal and arbitrary and is in violation of the Act. He raised a dispute in this respect before the concerned Labour
Commissioner, the dispute could not be conciliated hence, this reference. He has prayed for setting aside his
disengagement, he be reinstated with all back wages and benefits.
Case of the management is mainly that firstly, they are an educational institution, hence this Tribunal lacks
jurisdiction in this respect. Secondly, he was appointed as a daily wager helper in the Mess of school on 14.04.2001,
his work was not sufficient. He was disengaged by management since he was a daily wager, engaged on as and when
required basis and never completed 240 days in any year, no notice or compensation is required on his disengagement.
Management has requested that the reference be answered against the workman.
The workman did not appear and did not file any evidence or affidavit. Management filed an affidavit of its
witness which is on cross-examination.
None appeared for the workman at the stage of argument, I have heard Learned Counsel for management,
Mr. D. S. Baghel. I have gone through the record as well.
The initial burden to prove his case lies on the workman, in which he failed as he has not filed any
affidavit or evidence, hence holding his claim not proved.
Hence, on the basis of above discussion and findings, holding the claim of the workman not proved, the
reference deserves to be answered against the workman and stands answered accordingly.
No order as to cost.
DATE:- 05-12-2025
P.K. SRIVASTAVA, Presiding Officer
नइ ददल्ली, 25 फरवरी, 2026
का.अ. 238.—औद्योजगक जववाद ऄजधजनयम, 1947 (1947 का 14) की धारा 17 के ऄनुसरण में, केन्रीय
सरकार ऄजखल भारतीय अयुवेद जव्ान संस्ट्थान, साकेत नगर, भोृाल (मध्य प्रदेि) के जनदेिक, मेससच जसक्योररटी
सॉल्यूिंस एंड मजनृावर सर्मवसेि, नोएडा (ईत्तर प्रदेि) और श्री दीृक िाना, कमचर्ारी के ीर् ऄनु ंध में जनर्ददष्ट केन्रीय
सरकार औद्योजगक ऄजधकरण- सि- श्रम न्यायालय, ि लृुर ृंर्ाट(संदभच सं्या-CGIT/LC/R/83/2018) को िजसा दक
ऄनुलग्नक में ददखाया गया िज, प्रकाजित करती िज।
[सं. एल -42012/122/2018-अइअर (डीयू)]
सलोनी, ईृ जनदेिक
New Delhi, the 25th February, 2026
S.O. 238.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central
Government hereby publishes the award (Ref. No. CGIT/LC/R/83/2018) of the Central Government Industrial
Tribunal cum Labour Court, Jabalpur as shown in the Annexure, in Director All India Institute of Medical
Science, Saket Nagar, Bhopal (M.P.), M/s Security Solutions & Manpower Services, Noida (U.P.) and Shri
Deepak Jana workman.
[No. L-42012/122/2018-IR (DU)]
SALONI, Dy. Director
1006
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
ANNEXURE
THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL,
JABALPUR, (M.P.)
NO. CGIT/LC/R/83/2018
Present: P.K.Srivastava
H.J.S..(Retd)
1. Shri Deepak Jana,
A-5, 502, Silver Estate Vertica, Katara Hills,
Bhopal (M.P.)- 462024
Workman
Vs
1. Director,
All India Institute of Medical Science,
Saket Nagar, Bhopal (M.P.)- 462024
2. M/s Security Solutions & Manpower Services,
Thro, Sh. Manoj Shrivastava,
Proprietor, 1283, Sector-29,
Noida (U.P.) 201301
Management
(JUDGMENT)
(Passed on this 4th day of December, 2025)
As per letter dated 12/11/2018 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-42012/122/2018 (IR(DU)) dt. 12/11/2018. The dispute under reference relates to:
“Whether the action of the management of Director, All India Institute of Medical Sciences, Bhopal in
terminating the services of Shri Deepak Jana, Plumber w.e.f., 02.03.2017 who was working through M/s Security
Solutions and Manpower Services w.e.f. 06.11.2012 is just and proper? If not, what relief the workman concerned
is entitled to ?"
The case of the workman is mainly that, the management of All India Institute of Medical Sciences, Bhopal
issued and advertisement on 21.07.2012 for appointment on many posts, he applied for the post of Plumber and after
selection, appointed with the Institute vide appointment letter dated 01.11.2012. He was promoted w.e.f. 01.01.2014
on the post of Senior Plumber on a consolidated pay, he was relieved from the Office of Superintendent Engineer of
the Institute to join Admin office vide order dated 03.02.2017 and worked there till 02.03.2017 when he was
disengaged vide letter of management dated 02.03.2017, issued by outsourcing agency, M/s Security Solutions and
Manpower Services which was not empowered to terminate his services because he was appointed by the Institute. He
was not given any opportunity of hearing before his disengagement nor was he issued any notice or compensation
which is against the Act hence, is unjust, illegal and arbitrary. He raised the dispute before the Regional Labour
Commissioner (Central), the dispute could not be conciliated hence, this reference. He has prayed for setting aside his
disengagement order dated 02.03.2017, he be reinstated with all back wages and consequential benefits.
The management of the Institute has taken a case in their written statement of defense that the workman
was never appointed by them as claimed by him, he was not an employee of the Institute rather he was employed by
the sanctioned manpower agency, M/s Security Solutions and Manpower Services, which appointed him and deputed
him with the Institute for a fixed tenure on consolidated remuneration. He was paid by the outsourcing agency, there
is no employer-employee relationship between him and the Institute, his services were terminated by the outsourcing
agency. The management of Institute has admitted that the advertisement was issued by them for recruitment on
contractual and outsource basis on 21.07.2012 because the Rules were not finalized at that time and candidates were
appointed on outsourcing basis, after finalization of Recruitment Rules, legal selection process was initiated and
finalized. Outsourced employees filed petition challenging their relieving and also claimed regularization of their
services before Central Administrative Tribunal which was dismissed. This order was upheld by Hon‘ble High Court
of M.P. and thereafter by Hon‘ble Supreme Court of India. Thus, according to management of Institute, the workman
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1007
was an outsourced employee, appointed by the outsourcing agency on contract basis and was terminated by the
outsourcing agency after expiry of contract.
The outsourcing agency, M/s Security Solutions and Manpower Services, did not appear inspite of service of
notice, hence the case proceeded ex-parte against them.
In evidence, the workman did not file his affidavit, management filed an affidavit of its witness. The
workman did not appear for cross-examination of the witness.
None appeared for the workman at the stage of argument, hence argument of Learned Counsel, Mr. Gopi
Chaurasia were heard by me on behalf of the Institute. He has filed written submission also which are part of the
record. I have gone through the record as well.
The reference itself is the issue for determination in the case in hand.
The initial burden to prove his case lies on the workman, he has not filed any affidavit in this respect.
Management of Institute has filed photocopies of appointment letter of the workman, his promotion letter which go to
show that he was appointed by M/s Vema Hospitality Pvt. Ltd., on 01.11.2012 as a Plumber to work with the Institute
and was promoted by M/s Security Solutions and Manpower Services as a Senior Plumber. He was disengaged on
administrative ground by M/s Security Solutions and Manpower Services.
There is no evidence on record to show that the workman was appointed by the management of Institute or
he worked under the Institute as an employee of the Institute. Hence, the Institute has no relation with the engagement
as well disengagement of the workman in the case in hand.
The burden to prove that he was disengaged without notice or compensation is also on workman, in absence
of any evidence to this effect, he is held to have failed in discharging his, this burden.
Hence, on the basis of above discussion and findings, holding the claim of the workman not proved, the
reference deserves to be answered against the workman and stands answered accordingly.
No order as to cost.
DATE:- 04-12-2025
P.K. SRIVASTAVA, Presiding Officer
नइ ददल्ली, 25 फरवरी, 2026
का.अ. 239.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj
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; psUubZ ds iapkV (a45/2019) izdkf”kr djrh gSA
[सं. एल -12012/20/2019-अइअर ( ी-II)]
सलोनी, ईृ जनदेिक
New Delhi, the 25th February, 2026
S.O. 239.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. 45/2019) of the Cent.Govt.Indus.Tribunal-cum-Labour Court
Chennai as shown in the Annexure, in the industrial dispute between the management of Andhra Bank and
their workmen.
[No. L-12012/20/2019- IR(B-II)]
SALONI, Dy. Director
ANNEXURE
BEFORE THE CENTRAL GOVERNMENT INDUSTRIAL
TRIBUNAL- CUM - LABOUR COURT, CHENNAI
Date: 02-02-2026
Present: SUSHIL KUMAR-II,
PRESIDING OFFICER
Industrial Dispute No. 45/2019
BETWEEN
Shri V.Dilip Kumar
S/o. V.Veerakannu,
No.24/12, 16th Street,
Ashok Nagar, Chennai-600083.
:
1st Party/Petitioner
1008
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
AND
1.The Chief Manager,
Andhra Bank, Zonal Office,
Linghi Chetty Street,
Chennai-600 001.
2. The Senior Manager (HR)
Andhra Bank, Zonal Office,
Linghi Chetty Street,
Chennai-600 001.
:
II Party/Respondent
Appearance:
For the 1st Party/Petitioner :
M/s. D.Ravindranathan, Advocates
For the II Party/Respondent 1 & 2 :M/s. Aiyar & Dolia, Advocates
The Central Government, Ministry of Labour & Employment vide its Order No.L-12012/20/2019(IR(B-II)
dated 21-05-2019 referred the following Industrial Dispute to this Tribunal for adjudication:-
2. The schedule mentioned in that order is:
―Whether the demand of Shri V.Dilipkumar Sub-Staff of Andhra Bank for reinstatement into service w.e.f
15.11.2018 (stated to be working since 28.11.2011 to 15.11.2018) with all attendant benefits is legal and
justified? If not, to what relief is the workmen entitled to?”
3.
When the matter is posted for hearing, the learned counsel appearing for the Petitioner submitted a memo
dated 02.02.2026 stating that the Petitioner is holding discussions with the Respondent /management and the matter
is likely to be settled amicably. In view of the same, he pleaded that the Petitioner may be permitted to withdraw
the industrial dispute. The Respondent has no objection to withdraw the dispute.
4.
In view of the above, the Industrial dispute raised by the Petitioner is dismissed as withdrawn. The reference
is answered accordingly.
AWARD
In view of the above reasons, the Industrial Dispute raised by the Petitioner is dismissed as withdrawn.
Record be consigned to the record room.
SUSHIL KUMAR-II, Presiding Officer
(Dictated and transcribed by PA and
corrected and pronounced in the open
court on this day the 02.02.2026)
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1009
नइ ददल्ली, 25 फरवरी, 2026
का.अ. 240.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj
अधक 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; psUubZ ds iapkV (a19/2024) izdkf”kr djrh gSA
[सं. एल -39025/01/2026-अइअर ( ी-II)-22]
सलोनी, ईृ जनदेिक
New Delhi, the 25th February, 2026
S.O. 240.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref.19/2024) of the Cent.Govt.Indus.Tribunal-cum-Labour Court
Chennai 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)-22]
SALONI, Dy. Director
ANNEXURE
BEFORE THE CENTRAL GOVERNMENT INDUSTRIAL
TRIBUNAL- CUM - LABOUR COURT
CHENNAI
ID No. 19/2024
Present: SUSHIL KUMAR-II, PRESIDING OFFICER
Date: 06-02-2026
The General Secretary,
Indian Bank Employees Union,
No.6, Moore Street, Mannady Corner,
Chennai-600 001. : 1st Party/Petitioner
AND
The General Manager,
CDO, Indian Bank, Co HRM Department,
No.254-260, Avvai Shanmugam Salai,
Royapettah, Chennai-600 014. : 2nd Party/ Respondent
Appearance:
For the 1st Party/Petitioner
: M/s. S. Apuna, Adv
For the 2nd Party/ Respondent
: None
Award
The Central Government, Ministry of Labour& Employment vide its Order No.7/12/2023/ 300023019/
B4/ADJ/A1, dated 22.03.2024 referred the following Industrial Dispute to this Tribunal for adjudication.
The schedule mentioned in that order is:
Whether the demand of the Indian Bank Employees Union seeking recognization for the Army Graduation Certificate
which is recognized by Armed Forces as a valid document for the promotion for Ex-servicemen form the
management of India Bank is legal and Justified? If not, to what relief the Ex-servicemen working in Indian Bank are
entitled?
2.
On receipt of the above reference dated 22.03.2024 from the appropriate Government, the dispute was
registered as ID No. 19/2024 and due notices were issued to both the parties for their appearance fixing the case to
14.06.2024. Neither the Petitioner nor any Counsel / Authorized Representative turned up resulting further
adjournments to 26.08.2024, 29.10.2024, 30.12.2024, 03.03.2024, 26.05.2025, 17.07.2025, 03.09.2025, 30.10.2025,
1010
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
30.12.2025, 05.02.2026. The Petitioner did not turn up . It reveals from the body of reference that while the
appropriate Govt. sent the reference dated 22.03.2024 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 06.02.2026. Counsel for the Petitioner is present but the Petitioner did not turn up. The
claim statement was not furnished in any manner by the Petitioner. 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.
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
नइ ददल्ली, 26 फरवरी, 2026
का.अ. 241.—vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa] dsUnzh;
ljdkj डब्लू सी एल d
izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V vkS|ksfxd fookn esa
-सि-
] नागृुर
ds iapkV (
05/2021-22) dks
izdkf”kr djrh gS] tks dsUnzh; ljdkj dks
dks izkIr gqvk FkkA
[सं. एल -22013/01/2026-अइअर (सी.एम-II)]
सलोनी, ईृ जनदेिक/संृकच ऄजधकारी
New Delhi, the 26th February, 2026
S.O. 241.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. No. 05/2021-22) of the Central Government Industrial Tribunal-
cum-Labour Court, Nagpur as shown in the Annexure, in the industrial dispute between the Management of
M/s. WCL and their workmen received by the Central Government on 25/02/2026.
[No. L-22013/01/2026– IR (CM-II)]
SALONI, Dy. Director/Link officer
ANNEXURE
BEFORE SHRI SHIV SHANKER PRASAD PRESIDING OFFICER,
CGIT-CUM-LABOUR COURT, NAGPUR
Case No.CGIT/NGP/Appln.05/2021-22
Date:05.02.2026
Party No.1:
1. Director (Personnel) Western Coalfields Limited
Civil Lines, Nagpur - 440001
2. General Manager (IR) Personnel,
Western Coalfields limited, Regional Office,
‗Coal Estate‘, Civil Lines, Nagpur -440001
3. General Manager, (QC), Western Coalfields Limited
Regional Office, ‗Coal Estate‘, Civil Lines
Nagpur -440001
4. Senior Manager (Personnel) MP,
Western Coalfields limited, Regional Office,
‗Coal Estate‘, Civil Lines, Nagpur -440001
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1011
V/s.
Party No.2:
Dr. Vaishali D/o Ganpatrao Waghmare,
R/o. 24/A, Harsh Department, Dhangawali
Nagar, Hudkeshwar, Nagpur, Distt. Nagpur- 440034
AWARD
(Dated:5th February, 2026)
Complaint Under Section 2-K & 11-A read with section 2(ra) and Vth Schedule 1(A) 11,13 of Industrial Disputes
Act. 1947 filed by the Complainant Dr. Vaishali Ganpatrao Waghmare against the management of WCL.
On receipt of complaint notices were issued to the parties i.e. the complaint Dr. Vaishali Ganpatrao
Waghmare and the management of WCL. The management filed their reply to the complaint. Meanwhile, today the
learned counsel for the Complainant filed a pursis mentioning that she does not want to continue the present case and
as such she wants to withdraw the same.
The learned counsel for the Respondent endorses his say on the pursis that he has no objection for the
withdrawal of the case.
As the Complainant requested to withdraw the case, the above case is closed and an award is passed.
Hence, it is ordered.
―The Complaint Under Section 2-K & 11-A read with section 2(ra) and Vth Schedule 1(A) 11,13 of
Industrial Disputes Act. 1947 is closed. The Complainant Dr. Vaishali Ganpatrao Waghmare is not entitled to
any relief‖.
Justice (Retd.) SHIV SHANKER PRASAD, Presiding Officer
नइ ददल्ली, 26 फरवरी, 2026
का.अ. 242.—vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa] dsUnzh;
ljdkj डब्लू सी एल d
izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V vkS|ksfxd fookn esa
-सि-
] नागृुर
ds iapkV (
08/2014-15) dks
izdkf”kr djrh gS] tks dsUnzh; ljdkj dks
dks izkIr gqvk FkkA
[सं. एल -22013/01/2026-अइअर (सी.एम-II)]
सलोनी, ईृ जनदेिक/संृकच ऄजधकारी
New Delhi, the 26th February, 2026
S.O. 242.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. No. 08/2014-15) of the Central Government Industrial Tribunal-
cum-Labour Court, Nagpur as shown in the Annexure, in the industrial dispute between the Management of M/s.
WCL and their workmen received by the Central Government on 25/02/2026.
[No. L-22013/01/2026– IR (CM-II)]
SALONI, Dy. Director/Link officer
ANNEXURE
BEFORE SHRI SHIV SHANKER PRASAD PRESIDING OFFICER,
CGIT-CUM-LABOUR COURT, NAGPUR
Case No.CGIT/NGP/08/2014-15
Date:06.02.2026.
Party No.1: 1) The Chief General Manager,
Western Coalfields Ltd., G.M. Office,
Pench Area PO & The. Parasia,
Chindawara.
1012
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
2) The Regional Personal Manager,
WCL, Pench Area, Tah. Parasia,
Distt. Chindawara
V/s.
Party No.2: Smt. Vinita Malvi W/o Late Sh. Bhaiyalal Malvi,
Chure Colony, Rawanwada, Tah. Parsia,
Distt. Chindawara (MP),
AWARD
(Dated:6th February, 2026)
In exercise of the powers conferred by Clause (d) of sub-section (1) and Sub-section 2(A)of Section 10 of
Industrial Disputes Act, 1947 (14 of 1947) (―the Act‖ in short), theCentral Government has referred the industrial
dispute between the employers, in relation to the management of Western Coalfields Limitedand the applicant,Smt.
Vinita Malvifor adjudication No.L-22012/20/2014 (IR(CM-II)) dt.09.05.2014, with the following issues framed: -
―क्मा श्रीभती ववननता भारवी ऩनत स्वगीम बैमा रार भारवी, ऩूवफ दिम्फय भज़दूय, दिसगोया भाइंस ऩेंच ऺेत्र
निन्दवाड़ा को वेस्िनफ कारपील्ड्स लरलभिेड भें प्रचलरत याष्ट्र म कोमरा वेतन सभजौता के प्रावधानों के अनुसाय वषफ
अगस्त 2004 से भाचफ 2011 तक भालसक ऺनतऩूनतफ भहाप्रफंध वेस्िनफ कारपील्ड्स लरलभिेड ऩेंच ऺेत्र ऩयालसमा जजरा
निंदवाड़ा द्वाया नह ं ददमा जाना न्मामोगचत है? मदद नह ं तो आवेददका क्मा अनुतोष ऩाने की अगधकाय है?‖
2.
On receipt of the reference, parties were noticed to file their respective Statement of Claim and Written
Statement. In response to which, the petitionerSmt. Vinita Malvi filed the Statement of Claim and the management of
Western Coalfields Limited (―Party No. 1‖ in short) filed the Written Statement. Petitionerfiled evidence on affidavit
and he was cross-examined by the Respondent.
Meanwhile, the Hon‘ble court opined that, the matter was not serious in nature and their being minor
involvement of funds which can be compromised out of the court. Both the parties agreed and arrived on a
compromise. A letter of compromise duly signed by both the parties submitted on 06.02.2026.Thus, the case is taken
on today‘s board under special campaign and considered for passing the award.
Both parties have settled the dispute amicably in terms and conditions mentioned in the memo of
compromise.
Hence, it is ordered.
ORDER
―The reference is answered in favor of the workmen in terms of the settlement mentioned in the memo
of compromise. The memo of settlement dt. 06.02.2026is made part of the award.‖
Justice (Retd.) SHIV SHANKER PRASAD, Presiding Officer
नइ ददल्ली, 26 फरवरी, 2026
का.अ. 243.—vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa] dsUnzh;
ljdkj डब्लू सी एल d
izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V vkS|ksfxd fookn esa
-सि-
] नागृुर
ds iapkV (
51/2022-23) dks
izdkf”kr djrh gS] tks dsUnzh; ljdkj dks
dks izkIr gqvk FkkA
[सं. एल -22013/01/2026-अइअर (सी.एम-II)]
सलोनी, ईृ जनदेिक/संृकच ऄजधकारी
New Delhi, the 26th February, 2026
S.O. 243.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. No. 51/2022-23) of the Central Government Industrial Tribunal-
cum-Labour Court, Nagpur as shown in the Annexure, in the industrial dispute between the Management of
M/s. WCL and their workmen received by the Central Government on 25/02/2026.
[No. L-22013/01/2026– IR (CM-II)]
SALONI, Dy. Director/Link officer
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1013
ANNEXURE
BEFORE SHRI SHIV SHANKER PRASAD PRESIDING OFFICER,
CGIT-CUM-LABOUR COURT, NAGPUR
Case No.CGIT/NGP/51/2018-19
Date:05.02.2026
Party No.1:
The Sub Area Manager,
Gouri Sub Area, Ballarpur Area,
Western Coalfields Ltd., Post. Gouri,
Tah. Rajura, Distt. Chandrapur (M.S.)- 442401
V/s.
Party No.2:
The Secretary,
B.K.K.M.S (BMS) Union, Ballarpur Area,
Qrt. No. 115, Gouri Colony, Post. Sasti,
Tah. Rajura, Dist. Chandrapur (M.S.)-442401
AWARD
(Dated:5thFebruary, 2026)
In exercise of the powers conferred by clause (d) of sub-section (1) and sub-section 2(A) of section 10 of
Industrial Disputes Act, 1947 (14 of 1947) (―the Act‖ in short), the Central Government has referred the industrial
dispute between the employers, in relation to the managementof Bharatiya Koyala Mazdoor Sangh (BMS) Post.
Babupeth, District Chandrapur and his workman Shri. P. D. Lande, for adjudication, as per No. L.22012/116/2018
(IR(CM-II))dated 26.11.2018, with the following schedule: -
―Whether the demandSecretary of the Bharatiya Koyala Mazdoor Sangh (BMS) Post. Babupeth,
District Chandrapur over the issue of anomaly in pay fixation or pay disparity i.r.o. Shri. P. D. Lande,
EP fitter, Gouri Sub Area, WCL, Chandrapur is just, fair and legal? If yes, to what relief the
concerned workman is entitled to?‖
2.
Case is called out. Both parties are absent. From perusal of record, it is apparent that Petitioner is not
responding and attending the court since 21.02.2025.The petitioner has filed his Statement of Claim but he has
not filed any evidence to prove the contents of the statement of claim. As the petitioner is not coming since long it
shows that he is not interested to contest the case. Claim of the petitioner is not proved.So, it is closed.
Hence, it is ordered.
ORDER
―Thedemand Secretary of the Bharatiya Koyala Mazdoor Sangh (BMS) Post. Babupeth, District
Chandrapur over the issue of anomaly in pay fixation or pay disparity i.r.o. Shri. P. D. Lande, EP fitter, Gouri
Sub Area, WCL, Chandrapur is unjustified, unfair. The Workmanis not entitled to any relief.‖
Justice (Retd.) SHIV SHANKER PRASAD, Presiding Officer
नइ ददल्ली, 26 फरवरी, 2026
का.अ. 244.—vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa] dsUnzh;
ljdkj डब्लू सी एल d
izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V vkS|ksfxd fookn esa
-सि-
] नागृुर
ds iapkV (
07/2022-23) dks
izdkf”kr djrh gS] tks dsUnzh; ljdkj dks
dks izkIr gqvk FkkA
[सं. एल -22013/01/2026-अइअर (सी.एम-II)]
सलोनी, ईृ जनदेिक/संृकच ऄजधकारी
New Delhi, the 26th February, 2026
S.O. 244.— In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. No. 07/2022-23) of the Central Government Industrial Tribunal-
cum-Labour Court, Nagpur as shown in the Annexure, in the industrial dispute between the Management of
M/s. WCL and their workmen received by the Central Government on 25/02/2026.
[No. L-22013/01/2026– IR (CM-II)]
SALONI, Dy. Director/Link officer
1014
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
ANNEXURE
BEFORE SHRI SHIV SHANKER PRASAD PRESIDING OFFICER,
CGIT-CUM-LABOUR COURT, NAGPUR
Case No.CGIT/NGP/07/2022-23
Date:05.02.2026.
Party No.1:
The General Manager,
Chandrapur Area of WCL, Po. Chandrapur,
Distt. Chandrapur (M.S.) – 442401)
The Sub Area Manager,
Padmapur Sub- Area of WCL,PO. Urjanager,
Distt. Chandrapur (M.S.) - 442401
V/s.
Party No.2: The Secretary,
Bhartiya Koyla Khadan Mazdoor Sangh (BMS),
Vishwakarma sadan, Manakali Colliery,
PO. Babupeth, Chandrapur,
Distt. Chandrapur (M.S.) – 442403
AWARD
(Dated:5thFebruary, 2026)
In exercise of the powers conferred by clause (d) of sub-section (1) and sub-section 2(A) of section 10 of
Industrial Disputes Act, 1947 (14 of 1947) (―the Act‖ in short), the Central Government has referred the industrial
dispute between the employers, in relation to the managementof BharatiyaKoyala Mazdoor Sangh (BMS) and his
workman Shri. S. R. Wadghane, for adjudication, as per No. L-22012/43/2022 (IR(CM-II)) dated 04.05.2022, with
the following schedule: -
―Whether the demand of the Union i.e. Bhartiya KoyalaKhadan Mazdoor Sangh (BMS) for
restoration of the office order dt. 23.08.2007 thereby rectifying the anomaly in basic fixation of
Shri. S. R. Wadghane is fair, legal and justified? If yes, to what relief the concerned workman is
entitled?‖
2.
Case is called out. Both parties are absent despite service of notices. No Statement of Claim and Written
Statements have been filed by the parties respectively till today.No other evidence has been filed by the petitioner to
prove his case. Both parties are not coming to the court since long back. It appears that they are not interested to
contest the case further more. Claim of the petitioner is not proved.So, it is closed.
Hence, it is ordered.
ORDER
―The demand of the Union i.e. Bhartiya KoyalaKhadan Mazdoor Sangh (BMS) for restoration of the
office order dt. 23.08.2007 thereby rectifying the anomaly in basic fixation of Shri. S. R. Wadghane is unfair,
illegal and unjustified. The Workmanis not entitled to any relief.‖
Justice (Retd.) SHIV SHANKER PRASAD, Presiding Officer
नइ ददल्ली, 26 फरवरी, 2026
का.अ. 245.—vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa] dsUnzh;
ljdkj डब्लू सी एल d
izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V vkS|ksfxd fookn esa
-सि-
] नागृुर
ds iapkV (
03/2023-24) dks
izdkf”kr djrh gS] tks dsUnzh; ljdkj dks
dks izkIr gqvk FkkA
[सं. एल -22013/01/2026-अइअर (सी.एम-II)]
सलोनी, ईृ जनदेिक/संृकच ऄजधकारी
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1015
New Delhi, the 26th February, 2026
S.O. 245.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. No. 03/2023-24) of the Central Government Industrial Tribunal-
cum-Labour Court, Nagpur as shown in the Annexure, in the industrial dispute between the Management of
M/s. WCL and their workmen received by the Central Government on 25/02/2026.
[No. L-22013/01/2026– IR (CM-II)]
SALONI, Dy. Director/Link officer
ANNEXURE
BEFORE SHRI SHIV SHANKER PRASAD PRESIDING OFFICER,
CGIT-CUM-LABOUR COURT, NAGPUR
Case No.CGIT/NGP/03/2023-24
Date:05.02.2026.
Party No.1:
The General Manager,
Wani Area of WCL, Po. Urjagram,
Distt. Chandrapur – 442404
The Sub Area Manager,
Neelajay Sub- Area of WCL,Po. Belora,
Tah. Wani, Distt. Yavatmal - 445304
V/s.
Party No.2: The Rashtriya Koyla Khadan Mazdoor Sangh (INTUC),
WCL Hq Complex, Talankhedi Road,
Civil Lines, Nagpur - 440001
AWARD
(Dated:5thFebruary, 2026)
In exercise of the powers conferred by clause (d) of sub-section (1) and sub-section 2(A) of section 10 of
Industrial Disputes Act, 1947 (14 of 1947) (―the Act‖ in short), the Central Government has referred the industrial
dispute between the employers, in relation to the managementof Western Coalfields Limitedand his employeeSmt.
Darpelli Sapna (sister of deceased employee Satish M. Suddla), for adjudication, as per No. L-22012/27/2023
(IR(CM-II)) dated 31.03.2023, with the following schedule: -
―Whether action of the management of Western Coalfields Limited in not providing dependent
employment to Smt. Darpelli Sapna (sister of deceased employee Satish M. Suddala) legal and
justified? If not, to what relief the union/applicantis entitled?‖
2.
Case is called out. Both parties are not attending the court since 16.05.2023. Accidently only on 18.08.2025
learned counsel for the respondent was present but today both parties are absent. No Statement of Claim and Written
Statements have been filed by the parties respectively till today. No other evidence has been filed by the petitioner to
prove his claim. Both parties are not coming to the court since long back. Therefore, it appears that they are not
interested to contest the case further more. Claim of the petitioner is not proved.So, it is closed.
Hence, it is ordered.
ORDER
―The action of the management of Western Coalfields Limited in not providing dependent
employment to Smt. Darpelli Sapna (sister of deceased employee Satish M. Suddala) legal and justified. The
union/applicant is not entitled to any relief.‖
Justice (Retd.) SHIV SHANKER PRASAD, Presiding Officer
नइ ददल्ली, 26 फरवरी, 2026
का.अ. 246.—vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa] dsUnzh;
ljdkj डब्लू सी एल d
izca/kra= ds lac) fu;kstdksa vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V vkS|ksfxd fookn esa
1016
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
-सि-
] नागृुर ds iapkV (
23/2024) dks izdkf”kr
djrh gS] tks dsUnzh; ljdkj dks
dks izkIr gqvk FkkA
[सं. एल -22013/01/2026-अइअर (सी.एम-II)]
सलोनी, ईृ जनदेिक/संृकच ऄजधकारी
New Delhi, the 26th February, 2026
S.O. 246.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. No. 23/2024) of the Central Government Industrial Tribunal-
cum-Labour Court, Nagpur as shown in the Annexure, in the industrial dispute between the Management of M/s.
WCL and their workmen received by the Central Government on 25/02/2026.
[No. L-22013/01/2026– IR (CM-II)]
SALONI, Dy. Director/Link officer
ANNEXURE
BEFORE SHRI SHIV SHANKER PRASAD, PRESIDING OFFICER,
CGIT-CUM-LABOURT COURT, NAGPUR
Case No.CGIT/NGP/23/2024
Date: 06.02.2026.
Party No.1
:
The Sub Area Manager,
WCL Saoner Mine no.3,
Tah. Saoner, Distt. Nagpur
(MS)-441107.
Versus
Party No.2
:
The President,
Bhartiya Koyla Khadan Mazdoor Sangh,
(BMS), Saoner Branch, Saoner,
Distt Nagpur-441107.
Shri Yograj Pathe
Qtr. No. 15/3, WCL Bajaj Colony,
Saoner, Distt. Nagpur-441107
AWARD
(Dated: 6th February, 2026)
In exercise of the powers conferred by clause (d) of sub-section (1) and sub-section 2(A) of section 10 of
Industrial Disputes Act, 1947 (14 of 1947) (―the Act‖ in short), the Central Government has referred the industrial
dispute between the employers, in relation to the management of Western Coalfields Limted and their union Bhartiya
Koyla Khadan Mazdoor Sangh and Shri Yograj Pathe for adjudication, as per letter No.NGP/1(07)/2024-ID
dated 12.07.2024, with the following schedule:-
―Whether the action of the management of Western Coalfields Ltd., Saoner Mine no.3, Saoner sub
area, Distt. Nagpur in not granting promotion as Lamp room incharge gr.’C’ to Shri Yograj Pathe is
just, fair and legal? If not, to what relief the workmen/union is entitled to?‖
2.
On receipt of the reference, notices were issued to the parties i.e. the union ―Bhartiya Koyla Khadan
Mazdoor Sangh‖, (―the union‖ in short), Shri Yograj Pathe the peitioner and the management of Western Coalfields
Limited, (―party no.1‖ in short). The petitioner filed Statement on 25.09.2024. No written statement of claim filed by
the respondent. The workmen filed a letter regarding withdrawal of the case under his signature as well as the
signature of his counsel.
As the petitioners requested to withdraw the matter, the above case is closed and an award is passed.
Hence, it is ordered:-
ORDER
―The action of the management of Western Coalfields Ltd., Saoner Mine no.3, Saoner sub area, Distt.
Nagpur in not granting promotion as Lamp room incharge gr.’C’ to Shri Yograj Pathe is just, fair and legal.
The workmen are not entitled to any relief.
Justice (Retd.) SHIV SHANKER PRASAD, Presiding Officer
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1017
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 247.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh;
ljdkj सेंरल अधक ऑफ आंजडया 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 (a09/2003) izdkf”kr djrh gSA
[सं. एल -12011/102/2022-अइअर ( ी-II)]
सलोनी, ईृ जनदेिक
New Delhi, the 27th February, 2026
S.O. 247.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. 09/2023) of the Cent.Govt.Indus.Tribunal-cum-Labour Court
No. 1, Dhanbad as shown in the Annexure, in the industrial dispute between the management of Central Bank
of India their workmen.
[No. L-12011/102/2022- IR(B-II)]
SALONI, Dy. Director
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. 09/2023
Parties:
Employers in relation to the management of Central Bank of India, Mumbai
AND
Their Workman
Present: Shri Sachindra Kumar Pandey
Presiding Officer
Appearances:
For the Employers :- None.
For the workman :- None.
State : Bihar.
Industry:-Bank
Dated 02/02/2026
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-12011/102/2022 IR(B-II) dated 20/01/2023 has been pleased to refer the following dispute between the
employer i.e. management of Central Bank of India, Mumbai and their workman through President INTUC,
Bhagalpur for adjudication by this Tribunal:
SCHEDULE
―Whether the demand raised by President, INTUC, Bhagalpur in respect of workman Shri Dinanath
Tiwari vide letter dated 16.09.2021 against the management of Central Bank of India, Mumbai over
the issue of getting promotional benefits and monetary benefits from Officer scale-I to Officer Scale-V
as workman was not allowed to sit in promotional test conducted by the Bank during the suspension
period, is proper, legal and justified? If yes, what relief the workman is entitled to and what directions,
if any, are necessary in this respect?‖
2. This case is taken through Special Campaign organized by Ministry of Labour & Employment, Govt. of India for
disposal of pending cases.
3. On receiving order no. L-12011/102/2022- IR(B-II) dated 20/01/2023 Government of India, Ministry of Labour,
New Delhi for adjudication of the dispute, Reference case no. 09 of 2023 was registered on 13.02.2023 and thereafter
1018
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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 receipt of the reference this case was put up after a long gap on 26.07.2024, but no step was taken from
both sides. Thereafter on 29.07.2025, Sri R.R. Prasad, Advocate for the management appeared but workman failed to
appear. Though on 26.11.2025, Sri N.N. Choudhary, Joint Secretary INTUC of the workman appeared and filed
petition stating that concerned workman is unable to attend the case. So case may be closed.
4. On perusal of the entire case record it transpires 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
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 248.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj
प्रिासजनक कमांडर मु्यालय
)
नागररक रक्षा
(
, ृंर्कुला ds izca/kr=] lac) fu;kstdksa vkSj muds deZdkjkas ads chp vuqca/k
esa fufnZ’V औद्योजगक fookn esa dsUnzh; ljdkj औद्योजगक vf/kdj.k@Je U;k;ky; र्ंडीगढ़-II ds iapkV (118/2019)
izdkf”kr djrh gSA
[सं. एल -12025/01/2026-अइअर ( ी-I)-45]
सलोनी, ईृ जनदेिक
New Delhi, the 27th February, 2026
S.O. 248.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. 118/2019) of the Cent.Govt.Indus.Tribunal-cum-Labour Court
Chandigarh-II as shown in the Annexure, in the industrial dispute between the management of Admn.
Commander Head Quarter ( Civil Defence), Panchkula and their workmen.
[No. L-12025/01/2026- IR (B-I)-45]
SALONI, Dy. Director
ANNEXURE
In the Central Government Industrial Tribunal-cum-Labour Court-II, Chandigarh
(Present:- Mr. Kamal Kant, Presiding Officer).
ID No.118/2019
Registered on:-16.10.2019
Reena W/o Sh. Pummy, R/o 1186 Old Panchkula, Kharak Mangoli, Panchkula, Haryana.
-------- Workman/Applicant
Versus
1. Admn. Commander Station Head Quarter (Civil Defence), Chandi Mandir Cantt. Panchkula,
Haryana.
2. M/s AA Foundation for Safety, Head Office 5919, DLF City, Face-4, Gurgaon-122022.
----Respondents
Present:-
Sh. Jang Bahadur, AR for workman.
Sh. Satinder Singh, AR for respondent no.1.
Respondent no. 2 already ex parte.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1019
Award : 02.02.2026
1.
Workman has filed the present claim petition under Section 2A of the Industrial Disputes Act, 1947
(hereinafter called the Act) against her termination w.e.f. 27.10.2018 claiming reinstatement into service along with
continuity of service and full back wages.
2.
It is maintained by the workman in the claim petition that that she was appointed as sweeper/safai
karamchari on 16.08.2012 by respondent no.1 at minimum wages prescribed by the Central Government. But the said
minimum wages were never paid to her. Management has unlawfully deducted 12% EPF share, 1.75% ESI and
Rs.300/- as TDS from her salary despite of the fact that her total wages comes under the ambit of tax free limit. She
was working under respondent no.1 directly, but respondent no.1 in order to avoid its liability always shows her
employment in record under different contractors, which tantamount to unfair labour practice.
3.
It is further maintained that workman including 200 other safai karamcharis of respondent no.1 raised the
demand for non-deduction of TDS from the wages paid by respondent no.1. However, their demand was not accepted.
Other workers working under respondent no.1 formed union and subsequently her services were dispensed with w.e.f.
27.10.2018. It is also maintained that respondent no.1 retained juniors in service and also made fresh appointments
after termination of her services and no compensation was paid under Section 25F of the Act. Thus, there is violation
of Section 25F, 25G and 25H of the Act. Hence this petition.
4.
Notice of the petition was given to respondents.
5.
Respondent no.1 filed reply to the claim petition maintaining therein that the workman has not come to the
Court with clean hands as she was appointed as sweeper by respondent no.2 (contractor) at minimum wage rate as
prescribed by the Central Government. As per Government Policy dated 18.03.2011 (Ex.R-1), Non-Cantonment
Military Stations have been authorized to outsource conservancy safaiwala. The answering respondent entered into
contract with various private agencies for outsourcing of sweepers (safai karamcharis). In July 2018, the answering
respondent entered into contract with M/s AA Foundation for safety and M/s Sunrise Facilitator Pvt. Ltd. through e-
tendering for outsourcing of safai karamcharis to provide conservancy services in Chandi Mandir Military Station for
the financial year 2018-19. Respondent no.2 submits bill for payment for the days the safai karamcharis performed
their duties and answering respondent is only responsible to forward these bills to PCDA Western Command
Chandigarh to release payment directly to the contractor‘s account. Salary is paid to the workman by the contractor.
Compliance of PF, ESI Rules etc. is carried out by the contractor as per contract agreement. Answering respondent
has no responsibility of disbursement of wages and deduction of EPF and ESI etc. The workman and other safai
karamcharis formed union in the headquarter, which is not permitted and also carried out demonstration inside the
premises of Station Headquarter on 27.10.2018 and failed to perform her duties. Thereafter, answering respondent
asked respondent no.2 to ask the workers to perform their duties. Answering respondent has no role or responsibility
for termination services of the workman. There is no relationship of employer and employee between the answering
respondent and the workman. In view of Army Headquarter Letter, the civilian employees of the answering
respondent cannot organize themselves into trade unions as station headquarter is an administrative office of the
Government of India. In spite of that, workman along with other safai karamcharis formed union unauthorizedly and
indulge in unlawful activities. It is maintained that workman is the employee of contractor and therefore, termination
is the prerogative of the contractor. It is prayed that the claim be dismissed.
6.
It is pertinent to mention here that respondent no.2 was proceeded ex parte on 07.05.2024.
Evidence of workman:-
7.
In order to prove her case, workman examined herself as WW1 and tendered into evidence her affidavit
WW1/A and has been cross examined by the AR for respondent no.1. AR for workman closed the evidence on
22.07.2024.
Evidence of respondent no.1:-
8.
Respondent no.1 examined Colonel K P Singh S/o Late Colonel P. P. Singh, OIC, Civic Cell, Station Head
Quarter, Chandi Mandir Panchkula as MW1, who tendered into evidence his affidavit Ex.MW1/A along with
documents Ex.R1 to Ex.R4. AR for respondent no.1 closed the evidence on 29.01.2026.
Sr. No.
Document
Dated
Exhibit
1.
Policy
18.03.2011
Ex.R-1
2.
Agreement with respondent no.2
05.07.2018
Ex.R-2
3.
Copy of ECR of EPFO
Ex.R-3
4.
Letter of Head Quarter
22.04.1980
Ex.R-4
1020
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
Submissions of workman:-
9.
While arguing the case, AR for workman contended that in this case, workman was appointed by respondent
no.1 under a camouflage agreement with respondent no.2. The workman was appointed directly by respondent no.1
on 16.08.2012 as sweeper and her services were dispensed with on 27.10.2018 without any reason in violation of
Section 25F, 25G and 25H of the Act as no compensation was paid to the workman and junior to her were retained in
service and fresh appointment were made after termination of the workman. So far as the agreements between the
respondent no.1 & 2 are concerned, they are totally not tenable and is unfair labour practice. The work performed by
the workman is of perennial in nature. The contractor was not having any license. The contractor has left after three
months. No domestic inquiry was held before terminating the service of the workman, which is mandatory under
the Act.
Submissions of respondent no.1:-
10.
On the other hand, AR for respondent no.1 contended that the workman was engaged by respondent no.2
(contractor) as per agreement executed between respondent no.1 & 2 on outsource basis and there is no relationship of
employer and employee between respondent no.1 and the workman. Wages were paid by the respondent no.2 to the
workman and there was no role of respondent no.1 in appointing or terminating the services of the workman.
Workman is employee of respondent no.2. If there is any violation of provision of the Act, then it is done by
respondent no.2. As per Ex.R3, all dues were paid by the contractor with regard to EPF and ESI etc. The workman
and other safai karamcharis formed union in the Headquarter, which is not permitted as per Ex.R4. Respondent no.1
being the Government Agency, workman is trying to take benefit of her appointment by respondent no.2 and has filed
a false claim after concealing material facts and claim of the workman is not maintainable.
11.
I have given due consideration to the arguments advanced by AR for both the parties.
Findings:-
12.
The first contention regarding the applicant is that whether applicant comes within the definition of workman
as is defined in Section 2(s) of the Act. I may mention that applicant was appointed as sweeper as per her claim
petition and affidavit submitted before the Tribunal. In plain words the applicant was performing her duties as
labourer/unskilled worker. She was not in supervisory or administrative post requiring her 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 applicant 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 Colonel K P Singh in his cross examination has
stated that it is responsibility of the contractor to pay monthly wages to the conservancy staff provided by him.
Respondent no.1 has nothing to do with the minimum wages, DC rate to the conservancy staff. Contractor is
responsible to give notice to the conservancy staff provided by him. Respondent no.1 has no roll in terminating the
services of the workman. 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.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1021
16.
It is also added here that respondent no.1 has also placed on record documents Ex.R-1 to Ex.R-4. Ex.R-2 is
the contract agreement between respondent no.1 & 2. Thus, from the adduced evidence, it emerges that workman was
paid salary by the contractor and she 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, respondent no.2 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 her deposition has clearly stated that there was non-compliance of Section 25F, 25G and 25H of
the Act. She also stated that she was appointed on 16.08.2012 and she was paid minimum wages prescribed by
Central Government and was working with respondent no.1. She was not given any compensation before terminating
her services on 27.10.2018. In her cross examination, she has further stated that her salary used to be credited in her
bank account. But she has not placed on record any bank account, in which her salary was credited in order to enable
this Court to see who was making payment to the workman. However, there is no denial that the workman was paid
salary by respondent no.2 (contractor). However, from the agreement dated 05.07.2018 (Ex.R-2) placed on file by
respondent no.1, it emerges that safai karamcharis were provided by respondent no.2 (contractor) to work with
respondent no.1. Thus, workman was employee of respondent no.2 and not of respondent no.1 as has been discussed
above. 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.
20.
Admittedly, there is non-compliance of Section 25F of the Act by respondent no.2. However, as regards
violation of other provisions i.e. Section 25G and 25H of the Act, there is no evidence lead by the workman. Hence,
workman is entitled for compensation from respondent no.2.
21.
It is also added here that there is no iota of evidence that any unfair labour practice used by respondent no.1
by entering into contract with contractors for supply of safai karamcharis and agreement executed between respondent
no.1 and 2 cannot be said to be any unfair labour practice. So far as contentions of AR for workman that the work
performed by the workman is of perennial in nature and no domestic inquiry was held before terminating the services
of workman are concerned, in this regard, it is pointed out that workman was entitled only for compensation under
Section 25F of the Act by respondent no.2 (contractor) and no domestic inquiry was required to be conducted. Merely
because work is of perennial in nature does not mean that any right has accrued in favour of the workman to get
employment with respondent no.1, which is a department of Civil Defence run by Government of India and for that
regular recruitment procedure is provided. Workman cannot seek backdoor entry into service. Moreover, workman is
not employee of respondent no.1 being employee of respondent no.2 (contractor).
22.
In view of above discussion, it is held that since respondent no.2 (contractor) is currently not working with
respondent no.1, so keeping in view the tenure of service rendered by the workman and salary given to her during the
period of her 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.
23.
Keeping in view the fact and circumstances of the present case, the following scheme of compensation is
deemed fit by this Tribunal:
i.
Workman who worked for less than 2 years with contractor shall be entitled for Rs.20,000/-.
ii.
Workman who worked for more than 2 years but less than 5 years with contractor shall be entitled
Rs.30,000/-.
iii.
Workman who worked for more than 5 years with contractors shall be entitled for Rs.50,000/-.
1022
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
24.
Present workman employed on 16.08.2012 and was terminated on 27.10.2018 (more than 5 years), so she is
entitled for Rs.50,000/-.
25.
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. It is also added here that in case respondent no.1 requires safai karamcharis,
then workman may be engaged through any contractor on sympathetic ground.
26.
Let copy of this award be sent to Central Government for publication as required under Section 17 of
the Act.
KAMAL KANT, Presiding Officer
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 249.—vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa] dsUnzh;
ljdkj ीसीसीएलds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V vkS|ksfxd fookn esa
-सि-
] धन ाद-I ds iapkV (संदभच सं्या 71/2024) dks izdkf”kr
djrh gS] tks dsUnzh; ljdkj dks
dks izkIr gqvk FkkA
[सं. एल -20013/01/2026-अइअर (सीएम-I)]
सलोनी, ईृ जनदेिक/संृकच ऄजधकारी
New Delhi, the 27th February, 2026
S.O. 249.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Refe.No. 71 of 2024) 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 26/02/2026.
[No. L-20013/01/2026– 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. 71/2024
Parties:
Employers in relation to the management of Sijua Area of M/s.
BCCL, Dhanbad and M/s. Saakar Mass Joint Venture
AND
Their Workman
Present: Shri Sachindra Kumar Pandey
Presiding Officer
Appearances:
For the Employers :- None.
For the workman :- None.
State : Jharkhand.
Industry:-Coal
Dated 02/02/2026
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.1/(96)/2024/A-7 dated 13/08/2024 has been pleased to refer the following dispute between the employer
i.e. management of Sijua Area of M/s. BCCL, Dhanbad and M/s. Saakar Mass Joint Venture and their workman
through Joint Secretary, Rashtriya Mazdoor Union, Dhanbad for adjudication by this Tribunal:
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1023
SCHEDULE
―Whether the action of the management of M/s Saakar Mass Joint Venture in denial to pay full and
final settlement of dues as per agreement dated 22.07.2022 to Sri Anil Kumar Verma and others (list
of workers have not been enclosed by union) is fair and justified? If not, what relief the concerned
workmen are entitled to?‖
2. This case is taken through Special Campaign organized by Ministry of Labour & Employment, Govt. of India for
disposal of pending cases.
3. On receiving order no. 1/(96)/2024/A-7 dated 13/08/2024 Government of India, Ministry of Labour, New Delhi for
adjudication of the dispute, Reference case no. 71 of 2024 was registered on 21.08.2024 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 receipt of the reference regd. notices were issued to both the parties on 21.08.2024 but neither the
workman nor the management appeared before this Tribunal. Thereafter on 29.01.2026 Sri Akhtar Khan, Secretary of
union appeared and filed a withdrawal petition stating therein that above case is pending before the Court for
adjudication. It has come to notice in course of hearing that no list of workmen is enclosed along with order of
reference. So when list of workmen is not enclosed there is no reason to proceed with hearing of case further and
prayed to allow withdrawal petition.
5. On perusal of the entire case record it transpires that the Union who is the aggrieved party, has himself filed a
petition dated 29.01.2026 with a prayer to close his case. As now he is not interested to contest this case, his prayer is
allowed and accordingly this case is hereby dismissed as withdrawn and it is further ordered that ―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
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 250.—vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa] dsUnzh;
ljdkj ीसीसीएलds izca/kra= ds lac) fu;kstdksa vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V vkS|ksfxd fookn esa
-सि-
] धन ाद-I ds iapkV (संदभच सं्या 18/2022) dks izdkf”kr
djrh gS] tks dsUnzh; ljdkj dks
dks izkIr gqvk FkkA
[सं. एल -20012/23/2022-अइअर (सीएम-I)]
सलोनी, ईृ जनदेिक/संृकच ऄजधकारी
New Delhi, the 27th February, 2026
S.O. 250.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Refe.No. 18 of 2022) 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 26/02/2026.
[No. L-20012/23/2022– 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. 18/2022
Parties:
Employers in relation to the management of Bhowra (N) Colliery
under E.J. Area of M/s. BCCL, Dhanbad
AND
Their Workman
1024
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
Present: Shri Sachindra Kumar Pandey
Presiding Officer
Appearances:
For the Employers :- None.
For the workman :- None.
State : Jharkhand.
Industry:-Coal
Dated 02/02/2026
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-20012/23/2022 -IR(CM-I) dated 12/08/2022 has been pleased to refer the following dispute between the
employer i.e. management of E.J. Area of M/s. BCCL, Dhanbad and their workman through Joint Secretary, Bahujan
Mazdoor Union, Dhanbad for adjudication by this Tribunal:
SCHEDULE
―Whether the demand raised by the Union i.e. Bahujan Mazdoor Union, Dhanbad vide their letter
dated 23.08.2019 in respect of reinstatement of Shri Mari Ram Manjhi, Ex-M/Loader (P.No-02758738)
who was terminated vide order no. PS/BH(N)/19/331 dated 29.07.2019 by the Management of Bhowra
(N) Colliery under E.J. Area of M/s BCCL is fair, legal and justified? If yes, what relief the workman
concerned is entitled to?‖
2. This case is taken through Special Campaign organized by Ministry of Labour & Employment, Govt. of India for
disposal of pending cases.
3. On receiving order no. L-20012/23/2022- IR(CM-I) dated 12/08/2022 Government of India, Ministry of Labour,
New Delhi for adjudication of the dispute, Reference case no. 18 of 2022 was registered on 26.08.2022 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 receipt of the reference this case was put up on 19.10.2022, but no step was taken from both sides.
Thereafter on 26.07.2023, Sri R.R. Ram, Representative for the workman appeared but management failed to appear.
Though on 28.01.2026, Smt. Sanchita Dey, Advocate for the management appeared and Sri R.R. Ram, Representative
of the workman appeared and submitted that concerned workman is not interested to contest the case. So case may be
closed.
4. On perusal of the entire case record it transpires 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
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 251.—vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa] dsUnzh;
ljdkj ीसीसीएलds izca/kra= ds lac) fu;kstdkas vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V vkS|ksfxd fookn esa
-सि-
] धन ाद-I ds iapkV (संदभच सं्या 08/2022) dks izdkf”kr
djrh gS] tks dsUnzh; ljdkj dks
dks izkIr gqvk FkkA
[सं. एल -20013/01/2026-अइअर (सीएम-I)]
सलोनी, ईृ जनदेिक/संृकच ऄजधकारी
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1025
New Delhi, the 27th February, 2026
S.O. 251.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Refe.No. 08 of 2022) 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 26/02/2026.
[No. L-20013/01/2026– IR (CM-I)]
SALONI, Dy. Director/Link officer
ANNEXURE
BEFORE THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL NO.1, DHANBAD
ID Case No. 08/2022
Malay Kumar Banerjee,
At- Kusum Vihar Phase-II,
PO: BCCL Township, Koyla Nagar,
Dhanbad………….………………………….…………………………………......................Applicant
Vs.
Project Officer, Amalgamated NT-
ST-Jeengora Colliery, under Lodna Area
Of M/s. BCCL, PO-Bhaga, Dist: Dhanbad .…………………………………… Opposite Party
Present: Shri Sachindra Kumar Pandey
Presiding Officer
Appearances:
For Applicant
:- None.
For Opp. Party
:- None.
State : Jharkhand.
Industry:-Coal
Dated 02/02/2026
AWARD
2. This case is taken through Special Campaign organized by Ministry of Labour & Employment, Govt. of India
for disposal of pending cases.
3. This case has been filed under section 2A of the I.D Act, 1947 by the applicant/workman namely Malay
Kumar Banerjee on 20.06.2022.
4. After receipt of this ID case on 20.06.2022, Sri Pintu Mondal, Representative of the applicant appeared and
filed his letter of authority. Thereafter on 08.07.2022 regd. notice was issued to Opp. Party but the same was
returned with endorsement ―Insufficient Address‖. However Sri Pintu Mondal, Representative of Applicant
appeared before this Tribunal. Thereafter on 19.06.2025 Sri S.N. Ghosh, Advocate appeared from Opp. Party.
Though on 20.01.2026, Sri Pintu Mondal, Representative of the applicant appeared and filed petition stating
therein that applicant of this case has passed away. So case may be closed.
5. On perusal of the entire case record it transpires that the workman has died and union has lost his interest in
this case and therefore, for the ends of justice, this case deserves to be dismissed accordingly.
6. Hence,
ORDERED
that this case is hereby dismissed and a ―No Dispute Award‖ be drawn up in respect of the above ID 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
1026
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 252.—vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa] dsUnzh;
ljdkj भारतीय खाद्य जनगम ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V vkS|ksfxd
fookn esa
-सि-
]
धन ाद-I
ds iapkV (केस
सं्या 02/2016, संदभच सं्या 138, 1997) dks izdkf”kr djrh gS] tks dsUnzh; ljdkj dks
dks
izkIr gqvk FkkA
[सं. एल -20013/01/2026-अइअर (सीएम-I)]
सलोनी, ईृ जनदेिक/संृकच ऄजधकारी
New Delhi, the 27th February, 2026
S.O. 252.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Case. No. 02/2016.Refe.No. 138 of 1997) of the Central Government
Industrial Tribunal-cum-Labour Court, Dhanbad-I as shown in the Annexure, in the industrial dispute between
the Management of Food Corporations of India. and their workmen received by the Central Government
on 26/02/2026.
[No. L-20013/01/2026– IR (CM-I)]
SALONI, Dy. Director/Link officer
ANNEXURE
BEFORE THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL NO.1, DHANBAD
Comp. Case No. 02/2016
Arising out of REF Case No. 138/1997
A.K. Adhikari, AG-II (D)
Food Corporation of India,
FSD, Dhanbad………………………………………………………………………………..Complainants
Vs.
Area Manager
Food Corporation of India,
District Office, 1st Floor, Usha Kunj Chiragora,
Dist: Dhanbad
Executive Director (East) of
Food Corporation of India,
Zonal Office – 10A
Middleton, Row, Kolkata -70071.…………………………………………………Opposite Parties
Appearances:
For Complainant :- None.
For Opp. Party :- None.
Present: Shri Sachindra Kumar Pandey
Presiding Officer
State : Jharkhand
Dated 02/02/2026
ORDER
2.
This case is taken through Special Campaign organized by Ministry of Labour & Employment, Govt. of
India for disposal of pending cases.
3.
Case is called out.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1027
4.
On call none is present from either side.
5.
Perused the record. After perusal of record it appears that Sri Anil Srivastava appeared on 01.03.2016 and
filed an application under section 33A of I.D. Act,1947 and regd. Notice was issued to opposite party and both the
parties appeared for certain dates. On 16.12.2025 Shri Anil Kumar Srivastava, advocate for the Complainant
appeared and submitted that the concerned Workman is not in his contact now so case may be closed.
6.
In view of the fact that complainant is not interested to contest this case, this case deserves to be dismissed
on the ground of non-interest of the complainant.
Hence, this case is dismissed accordingly.
SACHINDRA KUMAR PANDEY, Presiding Officer
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 253.—औद्योजगक fookn vf/kfu;e 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj
प्रिासजनक कमांडर मु्यालय (नागररक रक्षा), ृंर्कुला 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; र्ंडीगढ़-II ds iapkV (134/2019)
izdkf”kr djrh gSA
[सं. एल -12025/01/2026-अइअर ( ी-I)-46]
सलोनी, ईृ जनदेिक
New Delhi, the 27th February, 2026
S.O. 253.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. 134/2019) of the Cent.Govt.Indus.Tribunal-cum-Labour Court
Chandigarh-II as shown in the Annexure, in the industrial dispute between the management of Admn.
Commander Head Quarter (Civil Defence), Panchkula and their workmen.
[No. L-12025/01/2026- IR (B-I)-46]
SALONI, Dy. Director
ANNEXURE
IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT-II,
CHANDIGARH
(Present:- Mr. Kamal Kant, Presiding Officer).
ID No.134/2019
Registered on:-16.10.2019
Ajay Kumar S/o Sh. Ram Shiromani, R/o Lambhua Sultanpur, Utter Pardesh.
-------- Workman/Applicant
Versus
1.
Admn. Commander Station Head Quarter (Civil Defence), Chandi Mandir Cantt. Panchkula, Haryana.
2.
M/s AA Foundation for Safety, Head Office 5919, DLF City, Face-4, Gurugaon-122022.
----Respondents
Present:-
Sh. Jang Bahadur, AR for workman.
Sh. Satinder Singh, AR for respondent no.1.
Respondent no. 2 already ex parte.
Award : 04.02.2026
1.
Workman has filed the present claim petition under Section 2A of the Industrial Disputes Act, 1947
(hereinafter called the Act) against his termination w.e.f. 27.10.2018 claiming reinstatement into service
along with continuity of service and full back wages.
1028
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
2.
It is maintained by the workman in the claim petition that that he was appointed as sweeper/safai karamchari
on 17.08.2017 by respondent no.1 at minimum wages prescribed by the Central Government. But the said minimum
wages were never paid to him. Management has unlawfully deducted 12% EPF share, 1.75% ESI and Rs.300/- as
TDS from his salary despite of the fact that his total wages comes under the ambit of tax free limit. He was working
under respondent no.1 directly, but respondent no.1 in order to avoid its liability always shows his employment in
record under different contractors, which tantamount to unfair labour practice.
3.
It is further maintained that workman including 200 other safai karamcharis of respondent no.1 raised the
demand for non-deduction of TDS from the wages paid by respondent no.1. However, their demand was not
accepted. Other workers working under respondent no.1 formed union and subsequently his services were dispensed
with w.e.f. 27.10.2018. It is also maintained that respondent no.1 retained juniors in service and also made fresh
appointments after termination of his services and no compensation was paid under Section 25F of the Act. Thus,
there is violation of Section 25F, 25G and 25H of the Act. Hence this petition.
4.
Notice of the petition was given to respondents.
5.
Respondent no.1 filed reply to the claim petition maintaining therein that the workman has not come to the
Court with clean hands as he was appointed as sweeper by respondent no.2 (contractor) at minimum wage rate as
prescribed by the Central Government. As per Government Policy dated 18.03.2011 (Ex.R-1), Non-Cantonment
Military Stations have been authorized to outsource conservancy safaiwala. The answering respondent entered into
contract with various private agencies for outsourcing of sweepers (safai karamcharis). In July 2018, the answering
respondent entered into contract with M/s AA Foundation for safety and M/s Sunrise Facilitator Pvt. Ltd. through e-
tendering for outsourcing of safai karamcharis to provide conservancy services in Chandi Mandir Military Station for
the financial year 2018-19. Respondent no.2 submits bill for payment for the days the safai karamcharis performed
their duties and answering respondent is only responsible to forward these bills to PCDA Western Command
Chandigarh to release payment directly to the contractor‘s account. Salary is paid to the workman by the contractor.
Compliance of PF, ESI Rules etc. is carried out by the contractor as per contract agreement. Answering respondent
has no responsibility of disbursement of wages and deduction of EPF and ESI etc. The workman and other safai
karamcharis formed union in the headquarter, which is not permitted and also carried out demonstration inside the
premises of Station Headquarter on 27.10.2018 and failed to perform his duties. Thereafter, answering respondent
asked respondent no.2 to ask the workers to perform their duties. Answering respondent has no role or responsibility
for termination services of the workman. There is no relationship of employer and employee between the answering
respondent and the workman. In view of Army Headquarter Letter, the civilian employees of the answering
respondent cannot organize themselves into trade unions as station headquarter is an administrative office of the
Government of India. In spite of that, workman along with other safai karamcharis formed union unauthorizedly and
indulge in unlawful activities. It is maintained that workman is the employee of contractor and therefore, termination
is the prerogative of the contractor. It is prayed that the claim be dismissed.
6.
It is pertinent to mention here that respondent no.2 was proceeded ex parte on 07.05.2024.
Evidence of workman:-
7.
In order to prove his case, workman examined himself as WW1 and tendered into evidence his affidavit
WW1/A and has been cross examined by the AR for respondent no.1. AR for workman closed the evidence on
22.07.2024.
Evidence of respondent no.1:-
8.
Respondent no.1 examined Colonel K P Singh S/o Late Colonel P. P. Singh, OIC, Civic Cell, Station Head
Quarter, Chandi Mandir Panchkula as MW1, who tendered into evidence his affidavit Ex.MW1/A along with
documents Ex.R1 to Ex.R4. AR for respondent no.1 closed the evidence on 29.01.2026.
Sr. No.
Document
Dated
Exhibit
1.
Policy
18.03.2011
Ex.R-1
2.
Agreement with respondent no.2
05.07.2018
Ex.R-2
3.
Copy of ECR of EPFO
Ex.R-3
4.
Letter of Head Quarter
22.04.1980
Ex.R-4
Submissions of workman:-
9.
While arguing the case, AR for workman contended that in this case, workman was appointed by respondent
no.1 under a camouflage agreement with respondent no.2. The workman was appointed directly by respondent no.1
on 17.08.2017 as sweeper and his services were dispensed with on 27.10.2018 without any reason in violation of
Section 25F, 25G and 25H of the Act as no compensation was paid to the workman and junior to him were retained in
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1029
service and fresh appointment were made after termination of the workman. So far as the agreements between the
respondent no.1 & 2 are concerned, they are totally not tenable and is unfair labour practice. The work performed by
the workman is of perennial in nature. The contractor was not having any license. The contractor has left after three
months. No domestic inquiry was held before terminating the service of the workman, which is mandatory under
the Act.
Submissions of respondent no.1:-
10.
On the other hand, AR for respondent no.1 contended that the workman was engaged by respondent no.2
(contractor) as per agreement executed between respondent no.1 & 2 on outsource basis and there is no relationship
of employer and employee between respondent no.1 and the workman. Wages were paid by the respondent no.2 to
the workman and there was no role of respondent no.1 in appointing or terminating the services of the workman.
Workman is employee of respondent no.2. If there is any violation of provision of the Act, then it is done by
respondent no.2. As per Ex.R3, all dues were paid by the contractor with regard to EPF and ESI etc. The workman
and other safai karamcharis formed union in the Headquarter, which is not permitted as per Ex.R4. Respondent no.1
being the Government Agency, workman is trying to take benefit of his appointment by respondent no.2 and has filed
a false claim after concealing material facts and claim of the workman is not maintainable.
11.
I have given due consideration to the arguments advanced by AR for both the parties.
Findings:-
12.
The first contention regarding the applicant is that whether applicant comes within the definition of
workman as is defined in Section 2(s) of the Act. I may mention that applicant was appointed as sweeper as per his
claim petition and affidavit submitted before the Tribunal. In plain words the applicant 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 applicant 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 Colonel K P Singh in his cross examination has
stated that it is responsibility of the contractor to pay monthly wages to the conservancy staff provided by him.
Respondent no.1 has nothing to do with the minimum wages, DC rate to the conservancy staff. Contractor is
responsible to give notice to the conservancy staff provided by him. Respondent no.1 has no roll in terminating the
services of the workman. 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.R-1 to Ex.R-4. Ex.R-2 is
the contract agreement between respondent no.1 & 2. 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.
1030
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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, respondent no.2 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, 25G and 25H of
the Act. He also stated that he was appointed on 17.08.2017 and he was paid minimum wages prescribed by Central
Government and was working with respondent no.1. He was not given any compensation before terminating his
services on 27.10.2018. In his cross examination, he has further stated that his salary used to be credited in his bank
account. But he has not placed on record any bank account, in which his salary was credited in order to enable this
Court to see who was making payment to the workman. However, there is no denial that the workman was paid salary
by respondent no.2 (contractor). However, from the agreement dated 05.07.2018 (Ex.R-2) placed on file by
respondent no.1, it emerges that safai karamcharis were provided by respondent no.2 (contractor) to work with
respondent no.1. Thus, workman was employee of respondent no.2 and not of respondent no.1 as has been discussed
above. 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.
20.
Admittedly, there is non-compliance of Section 25F of the Act by respondent no.2. However, as regards
violation of other provisions i.e. Section 25G and 25H of the Act, there is no evidence lead by the workman. Hence,
workman is entitled for compensation from respondent no.2.
21.
It is also added here that there is no iota of evidence that any unfair labour practice used by respondent no.1
by entering into contract with contractors for supply of safai karamcharis and agreement executed between
respondent no.1 and 2 cannot be said to be any unfair labour practice. So far as contentions of AR for workman that
the work performed by the workman is of perennial in nature and no domestic inquiry was held before terminating
the services of workman are concerned, in this regard, it is pointed out that workman was entitled only for
compensation under Section 25F of the Act by respondent no.2 (contractor) and no domestic inquiry was required to
be conducted. Merely because work is of perennial in nature does not mean that any right has accrued in favour of the
workman to get employment with respondent no.1, which is a department of Civil Defence run by Government of
India and for that regular recruitment procedure is provided. Workman cannot seek backdoor entry into service.
Moreover, workman is not employee of respondent no.1 being employee of respondent no.2 (contractor).
22.
In view of above discussion, it is held that since respondent no.2 (contractor) is currently not working with
respondent no.1, so 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.
23.
Keeping in view the fact and circumstances of the present case, the following scheme of compensation is
deemed fit by this Tribunal:
i.
Workman who worked for less than 2 years with contractor shall be entitled for Rs.20,000/-.
ii.
Workman who worked for more than 2 years but less than 5 years with contractor shall be entitled
Rs.30,000/-.
iii.
Workman who worked for more than 5 years with contractors shall be entitled for Rs.50,000/-.
24.
Present workman employed on 17.08.2017 and was terminated on 27.10.2018 (less than 2 years), so he is
entitled for Rs.20,000/-.
25.
Respondent no.2 is directed to pay the workman Rs.20,000/- 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. It is also added here that in case respondent no.1 requires safai karamcharis,
then workman may be engaged through any contractor on sympathetic ground.
26.
Let copy of this award be sent to Central Government for publication as required under Section 17 of
the Act.
KAMAL KANT, Presiding Officer
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1031
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 254.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj
प्रिासजनक कमांडर मु्यालय (नागररक रक्षा), ृंर्कुला 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; र्ंडीगढ़-II ds iapkV (100/2019)
izdkf”kr djrh gSA
[सं. एल -12025/01/2026-अइअर ( ी-I)-47]
सलोनी, ईृ जनदेिक
New Delhi, the 27th February, 2026
S.O. 254.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. 100/2019) of the Cent.Govt.Indus.Tribunal-cum-Labour Court
Chandigarh-II as shown in the Annexure, in the industrial dispute between the management of Admn.
Commander Head Quarter ( Civil Defence), Panchkula and their workmen.
[No. L-12025/01/2026- IR (B-I)-47]
SALONI, Dy. Director
ANNEXURE
IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT-II,
CHANDIGARH
(Present:- Mr. Kamal Kant, Presiding Officer).
ID No.100/2019
Registered on:-16.10.2019
Mamta Rani W/o Sh. Balwinder Singh, R/o H.No.7, Chandi Kotla, Panchkula, Haryana
-------- Applicant/Workman
Versus
1. Admn. Commander Station Head Quarter (Civil Defence), Chandi Mandir Cantt. Panchkula,
Haryana.
2. M/s AA Foundation for Safety, Head Office 5919, DLF City, Face-4, Gurgaon-122022.
----Management
Present:-
Sh. Jang Bahadur, AR for workman.
Sh. Satinder Singh, AR for respondent no.1.
Respondent no. 2 already ex parte.
Award : 02.02.2026
1.
Workman has filed the present claim petition under Section 2A of the Industrial Disputes Act, 1947
(hereinafter called the Act) against her termination w.e.f. 27.10.2018 claiming reinstatement into service along with
continuity of service and full back wages.
2.
It is maintained by the workman in the claim petition that that she was appointed as sweeper/safai
karamchari on 01.04.2017 by respondent no.1 at minimum wages prescribed by the Central Government. But the said
minimum wages were never paid to her. Management has unlawfully deducted 12% EPF share, 1.75% ESI and
Rs.300/- as TDS from her salary despite of the fact that her total wages comes under the ambit of tax free limit. She
was working under respondent no.1 directly, but respondent no.1 in order to avoid its liability always shows her
employment in record under different contractors, which tantamount to unfair labour practice.
3.
It is further maintained that workman including 200 other safai karamcharis of respondent no.1 raised the
demand for non-deduction of TDS from the wages paid by respondent no.1. However, their demand was not accepted.
Other workers working under respondent no.1 formed union and subsequently her services were dispensed with w.e.f.
27.10.2018. It is also maintained that respondent no.1 retained juniors in service and also made fresh appointments
after termination of her services and no compensation was paid under Section 25F of the Act. Thus, there is violation
of Section 25F, 25G and 25H of the Act. Hence this petition.
4.
Notice of the petition was given to respondents.
1032
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
5.
Respondent no.1 filed reply to the claim petition maintaining therein that the workman has not come to the
Court with clean hands as she was appointed as sweeper by respondent no.2 (contractor) at minimum wage rate as
prescribed by the Central Government. As per Government Policy dated 18.03.2011 (Ex.R-1), Non-Cantonment
Military Stations have been authorized to outsource conservancy safaiwala. The answering respondent entered into
contract with various private agencies for outsourcing of sweepers (safai karamcharis). In July 2018, the answering
respondent entered into contract with M/s AA Foundation for safety and M/s Sunrise Facilitator Pvt. Ltd. through e-
tendering for outsourcing of safai karamcharis to provide conservancy services in Chandi Mandir Military Station for
the financial year 2018-19. Respondent no.2 submits bill for payment for the days the safai karamcharis performed
their duties and answering respondent is only responsible to forward these bills to PCDA Western Command
Chandigarh to release payment directly to the contractor‘s account. Salary is paid to the workman by the contractor.
Compliance of PF, ESI Rules etc. is carried out by the contractor as per contract agreement. Answering respondent
has no responsibility of disbursement of wages and deduction of EPF and ESI etc. The workman and other safai
karamcharis formed union in the headquarter, which is not permitted and also carried out demonstration inside the
premises of Station Headquarter on 27.10.2018 and failed to perform her duties. Thereafter, answering respondent
asked respondent no.2 to ask the workers to perform their duties. Answering respondent has no role or responsibility
for termination services of the workman. There is no relationship of employer and employee between the answering
respondent and the workman. In view of Army Headquarter Letter, the civilian employees of the answering
respondent cannot organize themselves into trade unions as station headquarter is an administrative office of the
Government of India. In spite of that, workman along with other safai karamcharis formed union unauthorizedly and
indulge in unlawful activities. It is maintained that workman is the employee of contractor and therefore, termination
is the prerogative of the contractor. It is prayed that the claim be dismissed.
6.
It is pertinent to mention here that respondent no.2 was proceeded ex parte on 07.05.2024.
Evidence of workman:-
7.
In order to prove her case, workman examined herself as WW1 and tendered into evidence her affidavit
WW1/A and has been cross examined by the AR for respondent no.1. AR for workman closed the evidence on
22.07.2024.
Evidence of respondent no.1:-
8.
Respondent no.1 examined Colonel K P Singh S/o Late Colonel P. P. Singh, OIC, Civic Cell, Station Head
Quarter, Chandi Mandir Panchkula as MW1, who tendered into evidence his affidavit Ex.MW1/A along with
documents Ex.R1 to Ex.R4. AR for respondent no.1 closed the evidence on 29.01.2026.
Sr. No.
Document
Dated
Exhibit
1.
Policy
18.03.2011
Ex.R-1
2.
Agreement with respondent no.2
05.07.2018
Ex.R-2
3.
Copy of ECR of EPFO
Ex.R-3
4.
Letter of Head Quarter
22.04.1980
Ex.R-4
Submissions of workman:-
9.
While arguing the case, AR for workman contended that in this case, workman was appointed by respondent
no.1 under a camouflage agreement with respondent no.2. The workman was appointed directly by respondent no.1
on 01.04.2017 as sweeper and her services were dispensed with on 27.10.2018 without any reason in violation of
Section 25F, 25G and 25H of the Act as no compensation was paid to the workman and junior to her were retained in
service and fresh appointment were made after termination of the workman. So far as the agreements between the
respondent no.1 & 2 are concerned, they are totally not tenable and is unfair labour practice. The work performed by
the workman is of perennial in nature. The contractor was not having any license. The contractor has left after three
months. No domestic inquiry was held before terminating the service of the workman, which is mandatory under the
Act.
Submissions of respondent no.1:-
10.
On the other hand, AR for respondent no.1 contended that the workman was engaged by respondent no.2
(contractor) as per agreement executed between respondent no.1 & 2 on outsource basis and there is no relationship of
employer and employee between respondent no.1 and the workman. Wages were paid by the respondent no.2 to the
workman and there was no role of respondent no.1 in appointing or terminating the services of the workman.
Workman is employee of respondent no.2. If there is any violation of provision of the Act, then it is done by
respondent no.2. As per Ex.R3, all dues were paid by the contractor with regard to EPF and ESI etc. The workman
and other safai karamcharis formed union in the Headquarter, which is not permitted as per Ex.R4. Respondent no.1
being the Government Agency is trying to take benefit of her appointment by respondent no.2 and has filed a false
claim after concealing material facts and claim of the workman is not maintainable.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1033
11.
The first contention regarding the applicant is that whether applicant comes within the definition of workman
as is defined in Section 2(s) of the Act. I may mention that applicant was appointed as sweeper as per her claim
petition and affidavit submitted before the Tribunal. In plain words the applicant was performing her duties as
labourer/unskilled worker. She was not in supervisory or administrative post requiring her 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.”
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 applicant 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 Colonel K P Singh in his cross examination has
stated that it is responsibility of the contractor to pay monthly wages to the conservancy staff provided by him.
Respondent no.1 has nothing to do with the minimum wages, DC rate to the conservancy staff. Contractor is
responsible to give notice to the conservancy staff provided by him. Respondent no.1 has no roll in terminating the
services of the workman. 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.R-1 to Ex.R-4. Ex.R-2 is
the contract agreement between respondent no.1 & 2. Thus, from the adduced evidence, it emerges that workman was
paid salary by the contractor and she 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, respondent no.2 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.
1034
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
18.
Workman in her deposition has clearly stated that there was non-compliance of Section 25F, 25G and 25H of
the Act. She also stated that she was appointed on 01.04.2017 and she was paid minimum wages prescribed by
Central Government and was working with respondent no.1. She was not given any compensation before terminating
her services on 27.10.2018. In her cross examination, she has further stated that her salary used to be credited in her
bank account. But she has not placed on record any bank account, in which her salary was credited in order to enable
this Court to see who was making payment to the workman. However, there is no denial that the workman was paid
salary by respondent no.2 (contractor). However, from the agreement dated 05.07.2018 (Ex.R-2) placed on file by
respondent no.1, it emerges that agreement of safai karamcharis were provided by respondent no.2 (contractor) to
work with respondent no.1. Thus, workman was employee of respondent no.2 and not of respondent no.1 as has been
discussed above. 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.
19.
Admittedly, there is non-compliance of Section 25F of the Act by respondent no.2. However, as regards
violation of other provisions i.e. Section 25G and 25H of the Act, there is no evidence lead by the workman. Hence,
workman is entitled for compensation from respondent no.2.
20.
It is also added here that there is no iota of evidence that any unfair labour practice used by respondent no.1
by entering into contract with contractors for supply of safai karamcharis and agreement executed between respondent
no.1 and 2 cannot be said to be any unfair labour practice. So far as contentions of AR for workman that the work
performed by the workman is of perennial in nature and no domestic inquiry was held before terminating the services
of workman are concerned, in this regard, it is pointed out that workman was entitled only for compensation under
Section 25F of the Act by respondent no.2 (contractor) and no domestic inquiry was required to be conducted. Merely
because work is of perennial in nature does not mean that any right has accrued in favour of the workman to get
employment with respondent no.1, which is a department of Civil Defence run by Government of India and for that
regular recruitment procedure is provided. Workman cannot seek backdoor entry into service. Moreover, workman is
not employee of respondent no.1 being employee of respondent no.2 (contractor).
21.
In view of above discussion, it is held that since respondent no.2 (contractor) is currently not working with
respondent no.1, so keeping in view the tenure of service rendered by the workman and salary given to her during the
period of her 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.
22.
Keeping in view the fact and circumstances of the present case, the following scheme of compensation is
deemed fit by this Tribunal:
i.
Workman who worked for less than 2 years with contractor shall be entitled for Rs.20,000/-.
ii.
Workman who worked for more than 2 years but less than 5 years with contractor shall be entitled
Rs.30,000/-.
iii.
Workman who worked for more than 5 years with contractors shall be entitled for Rs.50,000/-.
23.
Present workman employed on 01.04.2017 and was terminated on 27.10.2018 (less than 2 years), so she is
entitled for Rs.20,000/-.
24.
Respondent no.2 is directed to pay the workman Rs.20,000/- 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. It is also added here that in case respondent no.1 requires safai karamcharis,
then workman may be engaged through any contractor on sympathetic ground.
25.
Let copy of this award be sent to Central Government for publication as required under Section 17 of
the Act.
KAMAL KANT, Presiding Officer
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 255.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj
प्रिासजनक कमांडर मु्यालय (नागररक रक्षा), ृंर्कुला 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; र्ंडीगढ़-II ds iapkV (146/2019)
izdkf”kr djrh gSA
[सं. एल -12025/01/2026-अइअर ( ी-I)-48]
सलोनी, ईृ जनदेिक
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1035
New Delhi, the 27th February, 2026
S.O. 255.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. 146/2019) of the Cent.Govt.Indus.Tribunal-cum-Labour Court
Chandigarh-II as shown in the Annexure, in the industrial dispute between the management of Admn.
Commander Head Quarter ( Civil Defence), Panchkula and their workmen.
[No. L-12025/01/2026- IR (B-I)-48]
SALONI, Dy. Director
ANNEXURE
IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT-II,
CHANDIGARH
(Present:- Mr. Kamal Kant, Presiding Officer).
ID No.146/2019
Registered on:-16.10.2019
Kishan S/o Sh. Balram, R/o 301, Block 2, Rampur, Sueri Kalka, Panchkula, Haryana.
-------- Workman/Applicant
Versus
1.
Admn. Commander Station Head Quarter (Civil Defence), Chandi Mandir Cantt. Panchkula, Haryana.
2.
M/s AA Foundation for Safety, Head Office 5919, DLF City, Face-4, Gurugaon-122022.
----Respondents
Present:-
Sh. Jang Bahadur, AR for workman.
Sh. Satinder Singh, AR for respondent no.1.
Respondent no.2 already ex parte.
Award : 02.02.2026
1.
Workman has filed the present claim petition under Section 2A of the Industrial Disputes Act, 1947
(hereinafter called the Act) against his termination w.e.f. 27.10.2018 claiming reinstatement into service along with
continuity of service and full back wages.
2.
It is maintained by the workman in the claim petition that that he was appointed as sweeper/safai karamchari
on 01.04.2017 by respondent no.1 at minimum wages prescribed by the Central Government. But the said minimum
wages were never paid to him. Management has unlawfully deducted 12% EPF share, 1.75% ESI and Rs.300/- as
TDS from his salary despite of the fact that his total wages comes under the ambit of tax free limit. He was working
under respondent no.1 directly, but respondent no.1 in order to avoid its liability always shows his employment in
record under different contractors, which tantamount to unfair labour practice.
3.
It is further maintained that workman including 200 other safai karamcharis of respondent no.1 raised the
demand for non-deduction of TDS from the wages paid by respondent no.1. However, their demand was not
accepted. Other workers working under respondent no.1 formed union and subsequently his services were dispensed
with w.e.f. 27.10.2018. It is also maintained that respondent no.1 retained juniors in service and also made fresh
appointments after termination of his services and no compensation was paid under Section 25F of the Act. Thus,
there is violation of Section 25F, 25G and 25H of the Act. Hence this petition.
4.
Notice of the petition was given to respondents.
5.
Respondent no.1 filed reply to the claim petition maintaining therein that the workman has not come to the
Court with clean hands as he was appointed as sweeper by respondent no.2 (contractor) at minimum wage rate as
prescribed by the Central Government. As per Government Policy dated 18.03.2011 (Ex.R-1), Non-Cantonment
Military Stations have been authorized to outsource conservancy safaiwala. The answering respondent entered into
contract with various private agencies for outsourcing of sweepers (safai karamcharis). In July 2018, the answering
respondent entered into contract with M/s AA Foundation for safety and M/s Sunrise Facilitator Pvt. Ltd. through e-
tendering for outsourcing of safai karamcharis to provide conservancy services in Chandi Mandir Military Station for
the financial year 2018-19. Respondent no.2 submits bill for payment for the days the safai karamcharis performed
their duties and answering respondent is only responsible to forward these bills to PCDA Western Command
Chandigarh to release payment directly to the contractor‘s account. Salary is paid to the workman by the contractor.
Compliance of PF, ESI Rules etc. is carried out by the contractor as per contract agreement. Answering respondent
has no responsibility of disbursement of wages and deduction of EPF and ESI etc. The workman and other safai
1036
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
karamcharis formed union in the headquarter, which is not permitted and also carried out demonstration inside the
premises of Station Headquarter on 27.10.2018 and failed to perform his duties. Thereafter, answering respondent
asked respondent no.2 to ask the workers to perform their duties. Answering respondent has no role or responsibility
for termination services of the workman. There is no relationship of employer and employee between the answering
respondent and the workman. In view of Army Headquarter Letter, the civilian employees of the answering
respondent cannot organize themselves into trade unions as station headquarter is an administrative office of the
Government of India. In spite of that, workman along with other safai karamcharis formed union unauthorizedly and
indulge in unlawful activities. It is maintained that workman is the employee of contractor and therefore, termination
is the prerogative of the contractor. It is prayed that the claim be dismissed.
6.
It is pertinent to mention here that respondent no.2 was proceeded ex parte on 07.05.2024.
Evidence of workman:-
7.
In order to prove his case, workman examined himself as WW1 and tendered into evidence his affidavit
WW1/A and has been cross examined by the AR for respondent no.1. AR for workman closed the evidence on
22.07.2024.
Evidence of respondent no.1:-
8.
Respondent no.1 examined Colonel K P Singh S/o Late Colonel P. P. Singh, OIC, Civic Cell, Station Head
Quarter, Chandi Mandir Panchkula as MW1, who tendered into evidence his affidavit Ex.MW1/A along with
documents Ex.R1 to Ex.R4. AR for respondent no.1 closed the evidence on 29.01.2026.
Sr. No.
Document
Dated
Exhibit
1.
Policy
18.03.2011
Ex.R-1
2.
Agreement with respondent no.2
05.07.2018
Ex.R-2
3.
Copy of ECR of EPFO
Ex.R-3
4.
Letter of Head Quarter
22.04.1980
Ex.R-4
Submissions of workman:-
9.
While arguing the case, AR for workman contended that in this case, workman was appointed by respondent
no.1 under a camouflage agreement with respondent no.2. The workman was appointed directly by respondent no.1
on 01.04.2017 as sweeper and his services were dispensed with on 27.10.2018 without any reason in violation of
Section 25F, 25G and 25H of the Act as no compensation was paid to the workman and junior to him were retained in
service and fresh appointment were made after termination of the workman. So far as the agreements between the
respondent no.1 & 2 are concerned, they are totally not tenable and is unfair labour practice. The work performed by
the workman is of perennial in nature. The contractor was not having any license. The contractor has left after three
months. No domestic inquiry was held before terminating the service of the workman, which is mandatory under the
Act.
Submissions of respondent no.1:-
10.
On the other hand, AR for respondent no.1 contended that the workman was engaged by respondent no. 2
(contractor) as per agreement executed between respondent no.1 & 2 on outsource basis and there is no relationship
of employer and employee between respondent no.1 and the workman. Wages were paid by the respondent no.2 to
the workman and there was no role of respondent no.1 in appointing or terminating the services of the workman.
Workman is employee of respondent no.2. If there is any violation of provision of the Act, then it is done by
respondent no.2. As per Ex.R3, all dues were paid by the contractor with regard to EPF and ESI etc. The workman
and other safai karamcharis formed union in the Headquarter, which is not permitted as per Ex.R4. Respondent no.1
being the Government Agency, workman is trying to take benefit of his appointment by respondent no.2 and has filed
a false claim after concealing material facts and claim of the workman is not maintainable.
11.
I have given due consideration to the arguments advanced by AR for both the parties.
Findings:-
12.
The first contention regarding the applicant is that whether applicant comes within the definition of
workman as is defined in Section 2(s) of the Act. I may mention that applicant was appointed as sweeper as per his
claim petition and affidavit submitted before the Tribunal. In plain words the applicant 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 रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1037
“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 applicant 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 Colonel K P Singh in his cross examination has
stated that it is responsibility of the contractor to pay monthly wages to the conservancy staff provided by him.
Respondent no.1 has nothing to do with the minimum wages, DC rate to the conservancy staff. Contractor is
responsible to give notice to the conservancy staff provided by him. Respondent no.1 has no roll in terminating the
services of the workman. 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.R-1 to Ex.R-4. Ex.R-2 is
the contract agreement between respondent no.1 & 2. 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, respondent no.2 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, 25G and 25H of
the Act. He also stated that he was appointed on 01.04.2017 and he was paid minimum wages prescribed by Central
Government and was working with respondent no.1. He was not given any compensation before terminating his
services on 27.10.2018. In his cross examination, he has further stated that his salary used to be credited in his bank
account. But he has not placed on record any bank account, in which his salary was credited in order to enable this
Court to see who was making payment to the workman. However, there is no denial that the workman was paid salary
by respondent no.2 (contractor). However, from the agreement dated 05.07.2018 (Ex.R-2) placed on file by
1038
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
respondent no.1, it emerges that safai karamcharis were provided by respondent no.2 (contractor) to work with
respondent no.1. Thus, workman was employee of respondent no.2 and not of respondent no.1 as has been discussed
above. 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.
20.
Admittedly, there is non-compliance of Section 25F of the Act by respondent no.2. However, as regards
violation of other provisions i.e. Section 25G and 25H of the Act, there is no evidence lead by the workman. Hence,
workman is entitled for compensation from respondent no.2.
21.
It is also added here that there is no iota of evidence that any unfair labour practice used by respondent no.1
by entering into contract with contractors for supply of safai karamcharis and agreement executed between
respondent no.1 and 2 cannot be said to be any unfair labour practice. So far as contentions of AR for workman that
the work performed by the workman is of perennial in nature and no domestic inquiry was held before terminating
the services of workman are concerned, in this regard, it is pointed out that workman was entitled only for
compensation under Section 25F of the Act by respondent no.2 (contractor) and no domestic inquiry was required to
be conducted. Merely because work is of perennial in nature does not mean that any right has accrued in favour of the
workman to get employment with respondent no.1, which is a department of Civil Defence run by Government of
India and for that regular recruitment procedure is provided. Workman cannot seek backdoor entry into service.
Moreover, workman is not employee of respondent no.1 being employee of respondent no.2 (contractor).
22.
In view of above discussion, it is held that since respondent no.2 (contractor) is currently not working with
respondent no.1, so 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.
23.
Keeping in view the fact and circumstances of the present case, the following scheme of compensation is
deemed fit by this Tribunal:
i.
Workman who worked for less than 2 years with contractor shall be entitled for Rs.20,000/-.
ii.
Workman who worked for more than 2 years but less than 5 years with contractor shall be entitled
Rs.30,000/-.
iii.
Workman who worked for more than 5 years with contractors shall be entitled for Rs.50,000/-.
24.
Present workman employed on 01.04.2017 and was terminated on 27.10.2018 (less than 2 years), so he is
entitled for Rs.20,000/-.
25.
Respondent no.2 is directed to pay the workman Rs.20,000/- 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. It is also added here that in case respondent no.1 requires safai karamcharis,
then workman may be engaged through any contractor on sympathetic ground.
26.
Let copy of this award be sent to Central Government for publication as required under Section 17 of
the Act.
KAMAL KANT, Presiding Officer
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 256.—औद्योजगक जववाद ऄजधजनयम, 1947 (1947 का 14) की धारा 17 के ऄनुसरण में, केन्रीय
सरकार राष्ट्रीय आस्ट्ृात जनगम जलजमट जविाखाृत्तनम स्ट्टील प्लांट; जमडफील्ड आंडस्ट्रीि जलजमटेड; मेससच ऊजिता
एसोजसएट्स के प्र ंधतंत्र के सं द्ध जनयोिकों और श्री मुरलीधर दलाइ के ीर् ऄनु ंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक
ऄजधकरण एवं श्रम न्यायालय, िजदरा ाद, ृंर्ाट (ररफरेन्स न.- एमृी 6/2017) को िजसा दक ऄनुलग्नक में ददखाया गया िज,
प्रकाजित करती िज िो केन्रीय सरकार को सॉफ्ट कॉृी के साथ 27.02.2026 को प्राप्त हुअ था l
[सं. िेड-16025/03/2026-अइअर(एम)-39]
सलोनी, ईृ जनदेिक
New Delhi, the 27th February, 2026
S.O. 256.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central
Government hereby publishes the award (Reference No. MP 6/2017) 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 Muralidhar Dalai which was received along with soft copy of the award by the
Central Government on 27.02.2026.
[No. Z-16025/03/2026-IR(M)-39]
SALONI, Dy. Director
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1039
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. 6/2017
Between:
Muralidhar Dalai,
S/o. D. Krishna,
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. 77,683.69ps 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
1040
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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 836 working days, amounting to Rs. 77,683.69ps 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 रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1041
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
employment is still continuing under the subsequent contractors without any break in service. Further, it is contended
1042
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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 August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012."
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1043
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.77,683.69ps. 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 WW 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
1044
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[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.77,683.69ps. 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 836 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.59 name of the Petitioner, Sri Muralidhar
Dalai, unskilled workman is recorded and against his name amount due towards full and final amount is shown as
Rs.77,683.69ps 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. 77,683.69ps. 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.77,683.69ps. 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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1045
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.”
1046
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[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
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 रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1047
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. 77,683.69ps. 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 Muralidhar Dalai .
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.
1048
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 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 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 रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1049
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
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 257.—औद्योजगक जववाद ऄजधजनयम, 1947 (1947 का 14) की धारा 17 के ऄनुसरण में, केन्रीय
सरकार राष्ट्रीय आस्ट्ृात जनगम जलजमट जविाखाृत्तनम स्ट्टील प्लांट; जमडफील्ड आंडस्ट्रीि जलजमटेड; मेससच ऊजिता
एसोजसएट्स के प्र ंधतंत्र के सं द्ध जनयोिकों और श्री ृेड्डा ऄप्ृा राव के ीर् ऄनु ंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक
ऄजधकरण एवं श्रम न्यायालय, िजदरा ाद, ृंर्ाट (ररफरेन्स न.- एमृी 7/2017) को िजसा दक ऄनुलग्नक में ददखाया गया िज,
प्रकाजित करती िज िो केन्रीय सरकार को सॉफ्ट कॉृी के साथ 27.02.2026 को प्राप्त हुअ था l
[सं. िेड-16025/03/2026-अइअर(एम)-40]
सलोनी, ईृ जनदेिक
New Delhi, the 27th February, 2026
S.O. 257.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central
Government hereby publishes the award (Reference No. MP 7/2017) 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 Pedda Appa Rao which was received along with soft copy of the award by the
Central Government on 27.02.2026.
[No. Z-16025/03/2026-IR(M)-40]
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. 7/2017
Between:
I. Pedda Appa Rao,
S/o. I. Yellaya,
Walzen Strips Pvt. Ltd., Wire Rod Mill-1,
Visakhapatnam Steel Plant,
Visakhapatnam – 530031.
…..Petitioner
1050
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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. 76,011.08ps 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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1051
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 818 working days,
amounting to Rs. 76,011.08ps 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
1052
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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.
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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1053
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.
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.76,011.08ps. 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.
1054
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[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. 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.76,011.08ps. for the period of 3 years of his employment with Respondent No.3. Further, in the
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1055
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 818 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.47 name of the Petitioner, Sri I. Pedda
Appa Rao, unskilled workman is recorded and against his name amount due towards full and final amount is shown as
Rs.76,011.08ps 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. 76,011.08ps. 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.76,011.08ps. 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
1056
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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 रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1057
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
allowances so paid to Petitioner from Respondent No. 2 and Respondent No. 3. Thus, the contention of Respondent
1058
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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. 76,011.08ps. 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 I. Pedda 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.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1059
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.
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
1060
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 258.—औद्योजगक fookn vf/kfu;e 1947 (a1947 dk 14 ) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj
प्रिासजनक कमांडर मु्यालय (नागररक रक्षा), ृंर्कुला 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; र्ंडीगढ़-II ds iapkV (108/2019)
izdkf”kr djrh gSA
[सं. ,y -12025/01/2026-अइअर(ch-I)-49]
सलोनी, ईृ जनदेिक
New Delhi, the 27th February, 2026
S.O. 258.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. 108/2019) of the Cent.Govt.Indus.Tribunal-cum-Labour Court
Chandigarh-II as shown in the Annexure, in the industrial dispute between the management of Admn.
Commander Head Quarter ( Civil Defence), Panchkula and their workmen.
[No. L-12025/01/2026- IR (B-I)-49]
SALONI, Dy. Director
ANNEXURE
IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT-II,
CHANDIGARH
(Present:- Mr. Kamal Kant, Presiding Officer).
ID No.108/2019
Registered on:-16.10.2019
Ram Ji Sharma S/o Sh. Shyam Bihari Sharma, R/o Bankat, Bhaojpur, Bihar.
-------- Applicant/Workman
Versus
1. Admn. Commander Station Head Quarter (Civil Defence), Chandi Mandir Cantt. Panchkula, Haryana.
2. M/s AA Foundation for Safety, Head Office 5919, DLF City, Face-4, Gurugaon-122022.
----Respondents
Present:- Sh. Jang Bahadur, AR for workman.
Sh. Satinder Singh, AR for respondent no.1.
Respondent no.2 already ex parte.
Award : 02.02.2026
1. Workman has filed the present claim petition under Section 2A of the Industrial Disputes Act, 1947
(hereinafter called the Act) against his termination w.e.f. 27.10.2018 claiming reinstatement into service
along with continuity of service and full back wages.
2. It is maintained by the workman in the claim petition that that he was appointed as sweeper/safai
karamchari on 01.11.2017 by respondent no.1 at minimum wages prescribed by the Central Government.
But the said minimum wages were never paid to him. Management has unlawfully deducted 12% EPF
share, 1.75% ESI and Rs.300/- as TDS from his salary despite of the fact that his total wages comes under
the ambit of tax free limit. He was working under respondent no.1 directly, but respondent no.1 in order to
avoid its liability always shows his employment in record under different contractors, which tantamount
to unfair labour practice.
3. It is further maintained that workman including 200 other safai karamcharis of respondent no.1 raised the
demand for non-deduction of TDS from the wages paid by respondent no.1. However, their demand was
not accepted. Other workers working under respondent no.1 formed union and subsequently his services
were dispensed with w.e.f. 27.10.2018. It is also maintained that respondent no.1 retained juniors in
service and also made fresh appointments after termination of his services and no compensation was paid
under Section 25F of the Act. Thus, there is violation of Section 25F, 25G and 25H of the Act. Hence this
petition.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1061
4. Notice of the petition was given to respondents.
5. Respondent no.1 filed reply to the claim petition maintaining therein that the workman has not come to
the Court with clean hands as he was appointed as sweeper by respondent no.2 (contractor) at minimum
wage rate as prescribed by the Central Government. As per Government Policy dated 18.03.2011 (Ex.R-
1), Non-Cantonment Military Stations have been authorized to outsource conservancy safaiwala. The
answering respondent entered into contract with various private agencies for outsourcing of sweepers
(safai karamcharis). In July 2018, the answering respondent entered into contract with M/s AA
Foundation for safety and M/s Sunrise Facilitator Pvt. Ltd. through e-tendering for outsourcing of safai
karamcharis to provide conservancy services in Chandi Mandir Military Station for the financial year
2018-19. Respondent no.2 submits bill for payment for the days the safai karamcharis performed their
duties and answering respondent is only responsible to forward these bills to PCDA Western Command
Chandigarh to release payment directly to the contractor‘s account. Salary is paid to the workman by the
contractor. Compliance of PF, ESI Rules etc. is carried out by the contractor as per contract agreement.
Answering respondent has no responsibility of disbursement of wages and deduction of EPF and ESI etc.
The workman and other safai karamcharis formed union in the headquarter, which is not permitted and
also carried out demonstration inside the premises of Station Headquarter on 27.10.2018 and failed to
perform his duties. Thereafter, answering respondent asked respondent no.2 to ask the workers to perform
their duties. Answering respondent has no role or responsibility for termination services of the workman.
There is no relationship of employer and employee between the answering respondent and the workman.
In view of Army Headquarter Letter, the civilian employees of the answering respondent cannot organize
themselves into trade unions as station headquarter is an administrative office of the Government of India.
In spite of that, workman along with other safai karamcharis formed union unauthorizedly and indulge in
unlawful activities. It is maintained that workman is the employee of contractor and therefore, termination
is the prerogative of the contractor. It is prayed that the claim be dismissed.
6. It is pertinent to mention here that respondent no.2 was proceeded ex parte on 07.05.2024.
Evidence of workman:-
7. In order to prove his case, workman examined himself as WW1 and tendered into evidence his affidavit
WW1/A and has been cross examined by the AR for respondent no.1. AR for workman closed the
evidence on 22.07.2024.
Evidence of respondent no.1:-
8. Respondent no.1 examined Colonel K P Singh S/o Late Colonel P. P. Singh, OIC, Civic Cell, Station
Head Quarter, Chandi Mandir Panchkula as MW1, who tendered into evidence his affidavit Ex.MW1/A
along with documents Ex.R1 to Ex.R4. AR for respondent no.1 closed the evidence on 29.01.2026.
Sr. No.
Document
Dated
Exhibit
1.
Policy
18.03.2011
Ex.R-1
2.
Agreement with respondent no.2
05.07.2018
Ex.R-2
3.
Copy of ECR of EPFO
Ex.R-3
4.
Letter of Head Quarter
22.04.1980
Ex.R-4
Submissions of workman:-
9. While arguing the case, AR for workman contended that in this case, workman was appointed by respondent
no.1 under a camouflage agreement with respondent no.2. The workman was appointed directly by
respondent no.1 on 01.11.2017 as sweeper and his services were dispensed with on 27.10.2018 without
any reason in violation of Section 25F, 25G and 25H of the Act as no compensation was paid to the
workman and junior to him were retained in service and fresh appointment were made after termination of
the workman. So far as the agreements between the respondent no.1 & 2 are concerned, they are totally
not tenable and is unfair labour practice. The work performed by the workman is of perennial in nature.
The contractor was not having any license. The contractor has left after three months. No domestic
inquiry was held before terminating the service of the workman, which is mandatory under the Act.
Submissions of respondent no.1:-
10. On the other hand, AR for respondent no.1 contended that the workman was engaged by respondent no.2
(contractor) as per agreement executed between respondent no.1 & 2 on outsource basis and there is no
relationship of employer and employee between respondent no.1 and the workman. Wages were paid by
the respondent no.2 to the workman and there was no role of respondent no.1 in appointing or terminating
1062
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
the services of the workman. Workman is employee of respondent no.2. If there is any violation of
provision of the Act, then it is done by respondent no.2. As per Ex.R3, all dues were paid by the
contractor with regard to EPF and ESI etc. The workman and other safai karamcharis formed union in the
Headquarter, which is not permitted as per Ex.R4. Respondent no.1 being the Government Agency,
workman is trying to take benefit of his appointment by respondent no.2 and has filed a false claim after
concealing material facts and claim of the workman is not maintainable.
11. I have given due consideration to the arguments advanced by AR for both the parties.
Findings:-
12. The first contention regarding the applicant is that whether applicant comes within the definition of
workman as is defined in Section 2(s) of the Act. I may mention that applicant was appointed as sweeper
as per his claim petition and affidavit submitted before the Tribunal. In plain words the applicant 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
applicant 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
Colonel K P Singh in his cross examination has stated that it is responsibility of the contractor to pay
monthly wages to the conservancy staff provided by him. Respondent no.1 has nothing to do with the
minimum wages, DC rate to the conservancy staff. Contractor is responsible to give notice to the
conservancy staff provided by him. Respondent no.1 has no roll in terminating the services of the
workman. 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.R-1 to Ex.R-4. Ex.R-2
is the contract agreement between respondent no.1 & 2. 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, respondent no.2 would fall under the definition of
contractor. Section 2(c) of the Contract Act is reproduced as under:
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1063
“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, 25G and 25H
of the Act. He also stated that he was appointed on 01.11.2017 and he was paid minimum wages
prescribed by Central Government and was working with respondent no.1. He was not given any
compensation before terminating his services on 27.10.2018. In his cross examination, he has further
stated that his salary used to be credited in his bank account. But he has not placed on record any bank
account, in which his salary was credited in order to enable this Court to see who was making payment to
the workman. However, there is no denial that the workman was paid salary by respondent no.2
(contractor). However, from the agreement dated 05.07.2018 (Ex.R-2) placed on file by respondent no.1,
it emerges that safai karamcharis were provided by respondent no.2 (contractor) to work with respondent
no.1. Thus, workman was employee of respondent no.2 and not of respondent no.1 as has been discussed
above. 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.
20. Admittedly, there is non-compliance of Section 25F of the Act by respondent no.2. However, as regards
violation of other provisions i.e. Section 25G and 25H of the Act, there is no evidence lead by the
workman. Hence, workman is entitled for compensation from respondent no.2.
21. It is also added here that there is no iota of evidence that any unfair labour practice used by respondent
no.1 by entering into contract with contractors for supply of safai karamcharis and agreement executed
between respondent no.1 and 2 cannot be said to be any unfair labour practice. So far as contentions of
AR for workman that the work performed by the workman is of perennial in nature and no domestic
inquiry was held before terminating the services of workman are concerned, in this regard, it is pointed
out that workman was entitled only for compensation under Section 25F of the Act by respondent no.2
(contractor) and no domestic inquiry was required to be conducted. Merely because work is of perennial
in nature does not mean that any right has accrued in favour of the workman to get employment with
respondent no.1, which is a department of Civil Defence run by Government of India and for that regular
recruitment procedure is provided. Workman cannot seek backdoor entry into service. Moreover,
workman is not employee of respondent no.1 being employee of respondent no.2 (contractor).
22. In view of above discussion, it is held that since respondent no.2 (contractor) is currently not working
with respondent no.1, so 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.
23. Keeping in view the fact and circumstances of the present case, the following scheme of compensation is
deemed fit by this Tribunal:
i.
Workman who worked for less than 2 years with contractor shall be entitled for Rs.20,000/-.
ii.
Workman who worked for more than 2 years but less than 5 years with contractor shall be entitled
Rs.30,000/-.
iii.
Workman who worked for more than 5 years with contractors shall be entitled for Rs.50,000/-.
24. Present workman employed on 01.11.2017 and was terminated on 27.10.2018 (less than 2 years), so he is
entitled for Rs.20,000/-.
25. Respondent no.2 is directed to pay the workman Rs.20,000/- 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. It is also added here that in case respondent no.1
requires safai karamcharis, then workman may be engaged through any contractor on sympathetic ground.
26. Let copy of this award be sent to Central Government for publication as required under Section 17 of the
Act.
KAMAL KANT, Prtesiding Officer
1064
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 259.—औद्योजगक fookn vf/kfu;e 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj
प्रिासजनक कमांडर मु्यालय (नागररक रक्षा), ृंर्कुला ds izca/kr=] lac) fu;kstdkas vkSj muds deZdkjkas ds chp vuqca/k esa
fufnZ’V औद्योजगक fookn esa dsUnzh; ljdkj औद्योजगक vf/kdj.k@Je U;k;ky; र्ंडीगढ़-II ds iapkV (116/2019)
izdkf”kr djrh gSA
[सं. ,y -12025/01/2026-अइअर(ch-I)-50]
सलोनी, ईृ जनदेिक
New Delhi, the 27th February, 2026
S.O. 259.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. 116/2019) of the Cent.Govt.Indus.Tribunal-cum-Labour Court
Chandigarh-II as shown in the Annexure, in the industrial dispute between the management of Admn.
Commander Head Quarter ( Civil Defence), Panchkula and their workmen.
[No. L-12025/01/2026- IR (B-I)-50]
SALONI, Dy. Director
ANNEXURE
IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT-II,
CHANDIGARH
(Present:- Mr. Kamal Kant, Presiding Officer).
ID No. 116/2019
Registered on:-16.10.2019
Mukesh Devi W/o Sh. Tej Pal Singh, R/o Narson Khurd, Haridwar, Uttrakhand.
-------- Workman/Applicant
Versus
1.
Admn. Commander Station Head Quarter (Civil Defence), Chandi Mandir Cantt. Panchkula, Haryana.
2.
M/s AA Foundation for Safety, Head Office 5919, DLF City, Face-4, Gurgaon-122022.
----Management
Present:- Sh. Jang Bahadur, AR for workman.
Sh. Satinder Singh, AR for respondent no.1.
Respondent no. 2 already ex parte.
Award : 02.02.2026
1.
Workman has filed the present claim petition under Section 2A of the Industrial Disputes Act, 1947
(hereinafter called the Act) against her termination w.e.f. 27.10.2018 claiming reinstatement into service along with
continuity of service and full back wages.
2.
It is maintained by the workman in the claim petition that that she was appointed as sweeper/safai
karamchari on 01.06.2017 by respondent no.1 at minimum wages prescribed by the Central Government. But the said
minimum wages were never paid to her. Management has unlawfully deducted 12% EPF share, 1.75% ESI and
Rs.300/- as TDS from her salary despite of the fact that her total wages comes under the ambit of tax free limit. She
was working under respondent no.1 directly, but respondent no.1 in order to avoid its liability always shows her
employment in record under different contractors, which tantamount to unfair labour practice.
3.
It is further maintained that workman including 200 other safai karamcharis of respondent no.1 raised the
demand for non-deduction of TDS from the wages paid by respondent no.1. However, their demand was not accepted.
Other workers working under respondent no.1 formed union and subsequently her services were dispensed with w.e.f.
27.10.2018. It is also maintained that respondent no.1 retained juniors in service and also made fresh appointments
after termination of her services and no compensation was paid under Section 25F of the Act. Thus, there is violation
of Section 25F, 25G and 25H of the Act. Hence this petition.
4.
Notice of the petition was given to respondents.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1065
5.
Respondent no.1 filed reply to the claim petition maintaining therein that the workman has not come to the
Court with clean hands as she was appointed as sweeper by respondent no.2 (contractor) at minimum wage rate as
prescribed by the Central Government. As per Government Policy dated 18.03.2011 (Ex.R-1), Non-Cantonment
Military Stations have been authorized to outsource conservancy safaiwala. The answering respondent entered into
contract with various private agencies for outsourcing of sweepers (safai karamcharis). In July 2018, the answering
respondent entered into contract with M/s AA Foundation for safety and M/s Sunrise Facilitator Pvt. Ltd. through e-
tendering for outsourcing of safai karamcharis to provide conservancy services in Chandi Mandir Military Station for
the financial year 2018-19. Respondent no.2 submits bill for payment for the days the safai karamcharis performed
their duties and answering respondent is only responsible to forward these bills to PCDA Western Command
Chandigarh to release payment directly to the contractor‘s account. Salary is paid to the workman by the contractor.
Compliance of PF, ESI Rules etc. is carried out by the contractor as per contract agreement. Answering respondent
has no responsibility of disbursement of wages and deduction of EPF and ESI etc. The workman and other safai
karamcharis formed union in the headquarter, which is not permitted and also carried out demonstration inside the
premises of Station Headquarter on 27.10.2018 and failed to perform her duties. Thereafter, answering respondent
asked respondent no.2 to ask the workers to perform their duties. Answering respondent has no role or responsibility
for termination services of the workman. There is no relationship of employer and employee between the answering
respondent and the workman. In view of Army Headquarter Letter, the civilian employees of the answering
respondent cannot organize themselves into trade unions as station headquarter is an administrative office of the
Government of India. In spite of that, workman along with other safai karamcharis formed union unauthorizedly and
indulge in unlawful activities. It is maintained that workman is the employee of contractor and therefore, termination
is the prerogative of the contractor. It is prayed that the claim be dismissed.
6.
It is pertinent to mention here that respondent no.2 was proceeded ex parte on 07.05.2024.
Evidence of workman:-
7.
In order to prove her case, workman examined herself as WW1 and tendered into evidence her affidavit
WW1/A and has been cross examined by the AR for respondent no.1. AR for workman closed the evidence
on 22.07.2024.
Evidence of respondent no.1:-
8.
Respondent no.1 examined Colonel K P Singh S/o Late Colonel P. P. Singh, OIC, Civic Cell, Station Head
Quarter, Chandi Mandir Panchkula as MW1, who tendered into evidence his affidavit Ex.MW1/A along with
documents Ex.R1 to Ex.R4. AR for respondent no.1 closed the evidence on 29.01.2026.
Sr. No.
Document
Dated
Exhibit
1.
Policy
18.03.2011
Ex.R-1
2.
Agreement with respondent no.2
05.07.2018
Ex.R-2
3.
Copy of ECR of EPFO
Ex.R-3
4.
Letter of Head Quarter
22.04.1980
Ex.R-4
Submissions of workman:-
9.
While arguing the case, AR for workman contended that in this case, workman was appointed by respondent
no.1 under a camouflage agreement with respondent no.2. The workman was appointed directly by respondent no.1
on 01.06.2017 as sweeper and her services were dispensed with on 27.10.2018 without any reason in violation of
Section 25F, 25G and 25H of the Act as no compensation was paid to the workman and junior to her were retained in
service and fresh appointment were made after termination of the workman. So far as the agreements between the
respondent no.1 & 2 are concerned, they are totally not tenable and is unfair labour practice. The work performed by
the workman is of perennial in nature. The contractor was not having any license. The contractor has left after three
months. No domestic inquiry was held before terminating the service of the workman, which is mandatory under
the Act.
Submissions of respondent no.1:-
10.
On the other hand, AR for respondent no.1 contended that the workman was engaged by respondent no. 2
(contractor) as per agreement executed between respondent no.1 & 2 on outsource basis and there is no relationship of
1066
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
employer and employee between respondent no.1 and the workman. Wages were paid by the respondent no.2 to the
workman and there was no role of respondent no.1 in appointing or terminating the services of the workman.
Workman is employee of respondent no.2. If there is any violation of provision of the Act, then it is done by
respondent no.2. As per Ex.R3, all dues were paid by the contractor with regard to EPF and ESI etc. The workman
and other safai karamcharis formed union in the Headquarter, which is not permitted as per Ex.R4. Respondent no.1
being the Government Agency is trying to take benefit of her appointment by respondent no.2 and has filed a false
claim after concealing material facts and claim of the workman is not maintainable.
11.
I have given due consideration to the arguments advanced by AR for both the parties.
Findings:-
12.
The first contention regarding the applicant is that whether applicant comes within the definition of workman
as is defined in Section 2(s) of the Act. I may mention that applicant was appointed as sweeper as per her claim
petition and affidavit submitted before the Tribunal. In plain words the applicant was performing her duties as
labourer/unskilled worker. She was not in supervisory or administrative post requiring her 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 applicant 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 Colonel K P Singh in his cross examination has
stated that it is responsibility of the contractor to pay monthly wages to the conservancy staff provided by him.
Respondent no.1 has nothing to do with the minimum wages, DC rate to the conservancy staff. Contractor is
responsible to give notice to the conservancy staff provided by him. Respondent no.1 has no roll in terminating the
services of the workman. 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.R-1 to Ex.R-4. Ex.R-2 is
the contract agreement between respondent no.1 & 2. Thus, from the adduced evidence, it emerges that workman was
paid salary by the contractor and she 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.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1067
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, respondent no.2 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 her deposition has clearly stated that there was non-compliance of Section 25F, 25G and 25H of
the Act. She also stated that she was appointed on 01.06.2017 and she was paid minimum wages prescribed by
Central Government and was working with respondent no.1. She was not given any compensation before terminating
her services on 27.10.2018. In her cross examination, she has further stated that her salary used to be credited in her
bank account. But she has not placed on record any bank account, in which her salary was credited in order to enable
this Court to see who was making payment to the workman. However, there is no denial that the workman was paid
salary by respondent no.2 (contractor). However, from the agreement dated 05.07.2018 (Ex.R-2) placed on file by
respondent no.1, it emerges that safai karamcharis were provided by respondent no.2 (contractor) to work with
respondent no.1. Thus, workman was employee of respondent no.2 and not of respondent no.1 as has been discussed
above. 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.
20.
Admittedly, there is non-compliance of Section 25F of the Act by respondent no.2. However, as regards
violation of other provisions i.e. Section 25G and 25H of the Act, there is no evidence lead by the workman. Hence,
workman is entitled for compensation from respondent no.2.
21.
It is also added here that there is no iota of evidence that any unfair labour practice used by respondent no.1
by entering into contract with contractors for supply of safai karamcharis and agreement executed between respondent
no.1 and 2 cannot be said to be any unfair labour practice. So far as contentions of AR for workman that the work
performed by the workman is of perennial in nature and no domestic inquiry was held before terminating the services
of workman are concerned, in this regard, it is pointed out that workman was entitled only for compensation under
Section 25F of the Act by respondent no.2 (contractor) and no domestic inquiry was required to be conducted. Merely
because work is of perennial in nature does not mean that any right has accrued in favour of the workman to get
employment with respondent no.1, which is a department of Civil Defence run by Government of India and for that
regular recruitment procedure is provided. Workman cannot seek backdoor entry into service. Moreover, workman is
not employee of respondent no.1 being employee of respondent no.2 (contractor).
22.
In view of above discussion, it is held that since respondent no.2 (contractor) is currently not working with
respondent no.1, so keeping in view the tenure of service rendered by the workman and salary given to her during the
period of her 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.
23.
Keeping in view the fact and circumstances of the present case, the following scheme of compensation is
deemed fit by this Tribunal:
i.
Workman who worked for less than 2 years with contractor shall be entitled for Rs.20,000/-.
ii.
Workman who worked for more than 2 years but less than 5 years with contractor shall be entitled
Rs.30,000/-.
iii.
Workman who worked from more than 5 years with contractors shall be entitled for Rs. 50,000/-.
24.
Present workman employed on 01.06.2017 and was terminated on 27.10.2018 (less than 2 years), so she is
entitled for Rs.20,000/-.
1068
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
25.
Respondent no.2 is directed to pay the workman Rs.20,000/- 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. It is also added here that in case respondent no.1 requires safai karamcharis,
then workman may be engaged through any contractor on sympathetic ground.
26.
Let copy of this award be sent to Central Government for publication as required under Section 17 of the
Act.
KAMAL KANT, Presiding Officer
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 260.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj
प्रिासजनक कमांडर मु्यालय (नागररक रक्षा), ृंर्कुला 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; र्ंडीगढ़-II ds iapkV (114/2019)
izdkf”kr djrh gSA
[सं. ,y -12025/01/2026-अइअर(ch-I)-51]
सलोनी, ईृ जनदेिक
New Delhi, the 27th February, 2026
S.O. 260.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. 114/2019) of the Cent.Govt.Indus.Tribunal-cum-Labour Court
Chandigarh-II as shown in the Annexure, in the industrial dispute between the management of Admn.
Commander Head Quarter ( Civil Defence), Panchkula and their workmen.
[No. L-12025/01/2026- IR (B-I)-51]
SALONI, Dy. Director
ANNEXURE
IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT-II,
CHANDIGARH
(Present:- Mr. Kamal Kant, Presiding Officer).
ID No. 114/2019
Registered on:-16.10.2019
Davinder Kaur W/o Sh. Surjit Singh, R/o Beed Ghaghar, Chandi Mandir Cantt. Panchkula, Haryana.
-------- Workman/Applicant
Versus
3.
Admn. Commander Station Head Quarter (Civil Defence), Chandi Mandir Cantt. Panchkula, Haryana.
4.
M/s AA Foundation for Safety, Head Office 5919, DLF City, Face-4, Gurgaon-122022.
----Respondents
Present:- Sh. Jang Bahadur, AR for workman.
Sh. Satinder Singh, AR for respondent no.1.
Respondent no. 2 already ex parte.
Award : 02.02.2026
1.
Workman has filed the present claim petition under Section 2A of the Industrial Disputes Act, 1947
(hereinafter called the Act) against her termination w.e.f. 27.10.2018 claiming reinstatement into service along with
continuity of service and full back wages.
2.
It is maintained by the workman in the claim petition that that she was appointed as sweeper/safai
karamchari on 01.08.2017 by respondent no.1 at minimum wages prescribed by the Central Government. But the said
minimum wages were never paid to her. Management has unlawfully deducted 12% EPF share, 1.75% ESI and
Rs.300/- as TDS from her salary despite of the fact that her total wages comes under the ambit of tax free limit. She
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1069
was working under respondent no.1 directly, but respondent no.1 in order to avoid its liability always shows her
employment in record under different contractors, which tantamount to unfair labour practice.
3.
It is further maintained that workman including 200 other safai karamcharis of respondent no.1 raised the
demand for non-deduction of TDS from the wages paid by respondent no.1. However, their demand was not
accepted. Other workers working under respondent no.1 formed union and subsequently her services were dispensed
with w.e.f. 27.10.2018. It is also maintained that respondent no.1 retained juniors in service and also made fresh
appointments after termination of her services and no compensation was paid under Section 25F of the Act. Thus,
there is violation of Section 25F, 25G and 25H of the Act. Hence this petition.
4.
Notice of the petition was given to respondents.
5.
Respondent no.1 filed reply to the claim petition maintaining therein that the workman has not come to the
Court with clean hands as she was appointed as sweeper by respondent no.2 (contractor) at minimum wage rate as
prescribed by the Central Government. As per Government Policy dated 18.03.2011 (Ex.R-1), Non-Cantonment
Military Stations have been authorized to outsource conservancy safaiwala. The answering respondent entered into
contract with various private agencies for outsourcing of sweepers (safai karamcharis). In July 2018, the answering
respondent entered into contract with M/s AA Foundation for safety and M/s Sunrise Facilitator Pvt. Ltd. through e-
tendering for outsourcing of safai karamcharis to provide conservancy services in Chandi Mandir Military Station for
the financial year 2018-19. Respondent no.2 submits bill for payment for the days the safai karamcharis performed
their duties and answering respondent is only responsible to forward these bills to PCDA Western Command
Chandigarh to release payment directly to the contractor‘s account. Salary is paid to the workman by the contractor.
Compliance of PF, ESI Rules etc. is carried out by the contractor as per contract agreement. Answering respondent
has no responsibility of disbursement of wages and deduction of EPF and ESI etc. The workman and other safai
karamcharis formed union in the headquarter, which is not permitted and also carried out demonstration inside the
premises of Station Headquarter on 27.10.2018 and failed to perform her duties. Thereafter, answering respondent
asked respondent no.2 to ask the workers to perform their duties. Answering respondent has no role or responsibility
for termination services of the workman. There is no relationship of employer and employee between the answering
respondent and the workman. In view of Army Headquarter Letter, the civilian employees of the answering
respondent cannot organize themselves into trade unions as station headquarter is an administrative office of the
Government of India. In spite of that, workman along with other safai karamcharis formed union unauthorizedly and
indulge in unlawful activities. It is maintained that workman is the employee of contractor and therefore, termination
is the prerogative of the contractor. It is prayed that the claim be dismissed.
6.
It is pertinent to mention here that respondent no.2 was proceeded ex parte on 07.05.2024.
Evidence of workman:-
7.
In order to prove her case, workman examined herself as WW1 and tendered into evidence her affidavit
WW1/A and has been cross examined by the AR for respondent no.1. AR for workman closed the evidence on
22.07.2024.
Evidence of respondent no.1:-
8.
Respondent no.1 examined Colonel K P Singh S/o Late Colonel P. P. Singh, OIC, Civic Cell, Station Head
Quarter, Chandi Mandir Panchkula as MW1, who tendered into evidence his affidavit Ex.MW1/A along with
documents Ex.R1 to Ex.R4. AR for respondent no.1 closed the evidence on 29.01.2026.
Sr. No.
Document
Dated
Exhibit
1.
Policy
18.03.2011
Ex.R-1
2.
Agreement with respondent no.2
05.07.2018
Ex.R-2
3.
Copy of ECR of EPFO
Ex.R-3
4.
Letter of Head Quarter
22.04.1980
Ex.R-4
Submissions of workman:-
9.
While arguing the case, AR for workman contended that in this case, workman was appointed by respondent
no.1 under a camouflage agreement with respondent no.2. The workman was appointed directly by respondent no.1
on 01.08.2017 as sweeper and her services were dispensed with on 27.10.2018 without any reason in violation of
Section 25F, 25G and 25H of the Act as no compensation was paid to the workman and junior to her were retained in
service and fresh appointment were made after termination of the workman. So far as the agreements between the
respondent no.1 & 2 are concerned, they are totally not tenable and is unfair labour practice. The work performed by
the workman is of perennial in nature. The contractor was not having any license. The contractor has left after three
months. No domestic inquiry was held before terminating the service of the workman, which is mandatory under the
Act.
1070
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
Submissions of respondent no.1:-
10.
On the other hand, AR for respondent no.1 contended that the workman was engaged by respondent no.2
(contractor) as per agreement executed between respondent no.1 & 2 on outsource basis and there is no relationship
of employer and employee between respondent no.1 and the workman. Wages were paid by the respondent no.2 to
the workman and there was no role of respondent no.1 in appointing or terminating the services of the workman.
Workman is employee of respondent no.2. If there is any violation of provision of the Act, then it is done by
respondent no.2. As per Ex.R3, all dues were paid by the contractor with regard to EPF and ESI etc. The workman
and other safai karamcharis formed union in the Headquarter, which is not permitted as per Ex.R4. Respondent no.1
being the Government Agency is trying to take benefit of her appointment by respondent no.2 and has filed a false
claim after concealing material facts and claim of the workman is not maintainable.
11.
I have given due consideration to the arguments advanced by AR for both the parties.
Findings:-
12.
The first contention regarding the applicant is that whether applicant comes within the definition of
workman as is defined in Section 2(s) of the Act. I may mention that applicant was appointed as sweeper as per her
claim petition and affidavit submitted before the Tribunal. In plain words the applicant was performing her duties as
labourer/unskilled worker. She was not in supervisory or administrative post requiring her 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 applicant 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 Colonel K P Singh in his cross examination has
stated that it is responsibility of the contractor to pay monthly wages to the conservancy staff provided by him.
Respondent no.1 has nothing to do with the minimum wages, DC rate to the conservancy staff. Contractor is
responsible to give notice to the conservancy staff provided by him. Respondent no.1 has no roll in terminating the
services of the workman. 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.R-1 to Ex.R-4. Ex.R-2 is
the contract agreement between respondent no.1 & 2. Thus, from the adduced evidence, it emerges that workman was
paid salary by the contractor and she 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, respondent no.2 would fall under the definition of contractor. Section 2(c) of the
Contract Act is reproduced as under:
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1071
“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 her deposition has clearly stated that there was non-compliance of Section 25F, 25G and 25H
of the Act. She also stated that she was appointed on 01.08.2017 and she was paid minimum wages prescribed by
Central Government and was working with respondent no.1. She was not given any compensation before terminating
her services on 27.10.2018. In her cross examination, she has further stated that her salary used to be credited in her
bank account. But she has not placed on record any bank account, in which her salary was credited in order to enable
this Court to see who was making payment to the workman. However, there is no denial that the workman was paid
salary by respondent no.2 (contractor). However, from the agreement dated 05.07.2018 (Ex.R-2) placed on file by
respondent no.1, it emerges that safai karamcharis were provided by respondent no.2 (contractor) to work with
respondent no.1. Thus, workman was employee of respondent no.2 and not of respondent no.1 as has been discussed
above. 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.
20.
Admittedly, there is non-compliance of Section 25F of the Act by respondent no.2. However, as regards
violation of other provisions i.e. Section 25G and 25H of the Act, there is no evidence lead by the workman. Hence,
workman is entitled for compensation from respondent no.2.
21.
It is also added here that there is no iota of evidence that any unfair labour practice used by respondent no.1
by entering into contract with contractors for supply of safai karamcharis and agreement executed between
respondent no.1 and 2 cannot be said to be any unfair labour practice. So far as contentions of AR for workman that
the work performed by the workman is of perennial in nature and no domestic inquiry was held before terminating
the services of workman are concerned, in this regard, it is pointed out that workman was entitled only for
compensation under Section 25F of the Act by respondent no.2 (contractor) and no domestic inquiry was required to
be conducted. Merely because work is of perennial in nature does not mean that any right has accrued in favour of the
workman to get employment with respondent no.1, which is a department of Civil Defence run by Government of
India and for that regular recruitment procedure is provided. Workman cannot seek backdoor entry into service.
Moreover, workman is not employee of respondent no.1 being employee of respondent no.2 (contractor).
22.
In view of above discussion, it is held that since respondent no.2 (contractor) is currently not working with
respondent no.1, so keeping in view the tenure of service rendered by the workman and salary given to her during the
period of her 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.
23.
Keeping in view the fact and circumstances of the present case, the following scheme of compensation is
deemed fit by this Tribunal:
i.
Workman who worked for less than 2 years with contractor shall be entitled for Rs.20,000/-.
ii.
Workman who worked for more than 2 years but less than 5 years with contractor shall be entitled
Rs.30,000/-.
iii.
Workman who worked for more than 5 years with contractors shall be entitled for Rs.50,000/-.
24.
Present workman employed on 01.08.2017 and was terminated on 27.10.2018 (less than 2 years), so she is
entitled for Rs.20,000/-.
25.
Respondent no.2 is directed to pay the workman Rs.20,000/- 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. It is also added here that in case respondent no.1 requires safai karamcharis,
then workman may be engaged through any contractor on sympathetic ground.
26.
Let copy of this award be sent to Central Government for publication as required under Section 17 of the
Act.
KAMAL KANT, Presiding Officer
1072
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 261.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj
प्रिासजनक कमांडर मु्यालय (नागररक रक्षा), ृंर्कुला 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; र्ंडीगढ़-II ds iapkV (142/2019)
izdkf”kr djrh gSA
[सं. ,y -12025/01/2026-अइअर(ch-I)-52]
सलोनी, ईृ जनदेिक
New Delhi, the 27th February, 2026
S.O. 261.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. 142/2019) of the Cent.Govt.Indus.Tribunal-cum-Labour Court
Chandigarh-II as shown in the Annexure, in the industrial dispute between the management of Admn.
Commander Head Quarter ( Civil Defence), Panchkula and their workmen.
[No. L-12025/01/2026- IR (B-I)-52]
SALONI, Dy. Director
ANNEXURE
IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT-II,
CHANDIGARH
(Present:- Mr. Kamal Kant, Presiding Officer).
ID No. 142/2019
Registered on:-16.10.2019
Chhaterpal S/o Sh. Bohari Lal, R/o 48 Dhaluwal, Chandi Mandir Cantt. Panchkula, Haryana.
-------- Workman/Applicant
Versus
1.
Admn. Commander Station Head Quarter (Civil Defence), Chandi Mandir Cantt. Panchkula,
Haryana.
2.
M/s AA Foundation for Safety, Head Office 5919, DLF City, Face-4, Gurugaon-122022.
----Respondents
Present:-
Sh. Jang Bahadur, AR for workman.
Sh. Satinder Singh, AR for respondent no.1.
Respondent no. 2 already ex parte.
Award : 03.02.2026
1.
Workman has filed the present claim petition under Section 2A of the Industrial Disputes Act, 1947
(hereinafter called the Act) against his termination w.e.f. 27.10.2018 claiming reinstatement into service along with
continuity of service and full back wages.
2.
It is maintained by the workman in the claim petition that that he was appointed as sweeper/safai karamchari
on 04.05.2017 by respondent no.1 at minimum wages prescribed by the Central Government. But the said minimum
wages were never paid to him. Management has unlawfully deducted 12% EPF share, 1.75% ESI and Rs.300/- as
TDS from his salary despite of the fact that his total wages comes under the ambit of tax free limit. He was working
under respondent no.1 directly, but respondent no.1 in order to avoid its liability always shows his employment in
record under different contractors, which tantamount to unfair labour practice.
3.
It is further maintained that workman including 200 other safai karamcharis of respondent no.1 raised the
demand for non-deduction of TDS from the wages paid by respondent no.1. However, their demand was not accepted.
Other workers working under respondent no.1 formed union and subsequently his services were dispensed with
w.e.f. 27.10.2018. It is also maintained that respondent no.1 retained juniors in service and also made fresh
appointments after termination of his services and no compensation was paid under Section 25F of the Act. Thus,
there is violation of Section 25F, 25G and 25H of the Act. Hence this petition.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1073
4.
Notice of the petition was given to respondents.
5.
Respondent no.1 filed reply to the claim petition maintaining therein that the workman has not come to the
Court with clean hands as he was appointed as sweeper by respondent no.2 (contractor) at minimum wage rate as
prescribed by the Central Government. As per Government Policy dated 18.03.2011 (Ex.R-1), Non-Cantonment
Military Stations have been authorized to outsource conservancy safaiwala. The answering respondent entered into
contract with various private agencies for outsourcing of sweepers (safai karamcharis). In July 2018, the answering
respondent entered into contract with M/s AA Foundation for safety and M/s Sunrise Facilitator Pvt. Ltd. through e-
tendering for outsourcing of safai karamcharis to provide conservancy services in Chandi Mandir Military Station for
the financial year 2018-19. Respondent no.2 submits bill for payment for the days the safai karamcharis performed
their duties and answering respondent is only responsible to forward these bills to PCDA Western Command
Chandigarh to release payment directly to the contractor‘s account. Salary is paid to the workman by the contractor.
Compliance of PF, ESI Rules etc. is carried out by the contractor as per contract agreement. Answering respondent
has no responsibility of disbursement of wages and deduction of EPF and ESI etc. The workman and other safai
karamcharis formed union in the headquarter, which is not permitted and also carried out demonstration inside the
premises of Station Headquarter on 27.10.2018 and failed to perform his duties. Thereafter, answering respondent
asked respondent no.2 to ask the workers to perform their duties. Answering respondent has no role or responsibility
for termination services of the workman. There is no relationship of employer and employee between the answering
respondent and the workman. In view of Army Headquarter Letter, the civilian employees of the answering
respondent cannot organize themselves into trade unions as station headquarter is an administrative office of the
Government of India. In spite of that, workman along with other safai karamcharis formed union unauthorizedly and
indulge in unlawful activities. It is maintained that workman is the employee of contractor and therefore, termination
is the prerogative of the contractor. It is prayed that the claim be dismissed.
6.
It is pertinent to mention here that respondent no.2 was proceeded ex parte on 07.05.2024.
Evidence of workman:-
7.
In order to prove his case, workman examined himself as WW1 and tendered into evidence his affidavit
WW1/A and has been cross examined by the AR for respondent no.1. AR for workman closed the evidence on
22.07.2024.
Evidence of respondent no.1:-
8.
Respondent no.1 examined Colonel K P Singh S/o Late Colonel P. P. Singh, OIC, Civic Cell, Station Head
Quarter, Chandi Mandir Panchkula as MW1, who tendered into evidence his affidavit Ex.MW1/A along with
documents Ex.R1 to Ex.R4. AR for respondent no.1 closed the evidence on 29.01.2026.
Sr. No.
Document
Dated
Exhibit
1.
Policy
18.03.2011
Ex.R-1
2.
Agreement with respondent no.2
05.07.2018
Ex.R-2
3.
Copy of ECR of EPFO
Ex.R-3
4.
Letter of Head Quarter
22.04.1980
Ex.R-4
Submissions of workman:-
9.
While arguing the case, AR for workman contended that in this case, workman was appointed by respondent
no.1 under a camouflage agreement with respondent no.2. The workman was appointed directly by respondent no.1
on 04.05.2017 as sweeper and his services were dispensed with on 27.10.2018 without any reason in violation of
Section 25F, 25G and 25H of the Act as no compensation was paid to the workman and junior to him were retained in
service and fresh appointment were made after termination of the workman. So far as the agreements between the
respondent no.1 & 2 are concerned, they are totally not tenable and is unfair labour practice. The work performed by
the workman is of perennial in nature. The contractor was not having any license. The contractor has left after three
months. No domestic inquiry was held before terminating the service of the workman, which is mandatory under the
Act.
Submissions of respondent no.1:-
10.
On the other hand, AR for respondent no.1 contended that the workman was engaged by respondent no. 2
(contractor) as per agreement executed between respondent no.1 & 2 on outsource basis and there is no relationship of
employer and employee between respondent no.1 and the workman. Wages were paid by the respondent no.2 to the
workman and there was no role of respondent no.1 in appointing or terminating the services of the workman.
Workman is employee of respondent no.2. If there is any violation of provision of the Act, then it is done by
respondent no.2. As per Ex.R3, all dues were paid by the contractor with regard to EPF and ESI etc. The workman
1074
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
and other safai karamcharis formed union in the Headquarter, which is not permitted as per Ex.R4. Respondent no.1
being the Government Agency, workman is trying to take benefit of his appointment by respondent no.2 and has filed
a false claim after concealing material facts and claim of the workman is not maintainable.
11.
I have given due consideration to the arguments advanced by AR for both the parties.
Findings:-
12.
The first contention regarding the applicant is that whether applicant comes within the definition of workman
as is defined in Section 2(s) of the Act. I may mention that applicant was appointed as sweeper as per his claim
petition and affidavit submitted before the Tribunal. In plain words the applicant 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 applicant 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 Colonel K P Singh in his cross examination has
stated that it is responsibility of the contractor to pay monthly wages to the conservancy staff provided by him.
Respondent no.1 has nothing to do with the minimum wages, DC rate to the conservancy staff. Contractor is
responsible to give notice to the conservancy staff provided by him. Respondent no.1 has no roll in terminating the
services of the workman. 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.R-1 to Ex.R-4. Ex.R-2 is
the contract agreement between respondent no.1 & 2. 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, respondent no.2 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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1075
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, 25G and 25H of
the Act. He also stated that he was appointed on 04.05.2017 and he was paid minimum wages prescribed by Central
Government and was working with respondent no.1. He was not given any compensation before terminating his
services on 27.10.2018. In his cross examination, he has further stated that his salary used to be credited in his bank
account. But he has not placed on record any bank account, in which his salary was credited in order to enable this
Court to see who was making payment to the workman. However, there is no denial that the workman was paid salary
by respondent no.2 (contractor). However, from the agreement dated 05.07.2018 (Ex.R-2) placed on file by
respondent no.1, it emerges that safai karamcharis were provided by respondent no.2 (contractor) to work with
respondent no.1. Thus, workman was employee of respondent no.2 and not of respondent no.1 as has been discussed
above. 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.
20.
Admittedly, there is non-compliance of Section 25F of the Act by respondent no.2. However, as regards
violation of other provisions i.e. Section 25G and 25H of the Act, there is no evidence lead by the workman. Hence,
workman is entitled for compensation from respondent no.2.
21.
It is also added here that there is no iota of evidence that any unfair labour practice used by respondent no.1
by entering into contract with contractors for supply of safai karamcharis and agreement executed between respondent
no.1 and 2 cannot be said to be any unfair labour practice. So far as contentions of AR for workman that the work
performed by the workman is of perennial in nature and no domestic inquiry was held before terminating the services
of workman are concerned, in this regard, it is pointed out that workman was entitled only for compensation under
Section 25F of the Act by respondent no.2 (contractor) and no domestic inquiry was required to be conducted. Merely
because work is of perennial in nature does not mean that any right has accrued in favour of the workman to get
employment with respondent no.1, which is a department of Civil Defence run by Government of India and for that
regular recruitment procedure is provided. Workman cannot seek backdoor entry into service. Moreover, workman is
not employee of respondent no.1 being employee of respondent no.2 (contractor).
22.
In view of above discussion, it is held that since respondent no.2 (contractor) is currently not working with
respondent no.1, so 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.
23.
Keeping in view the fact and circumstances of the present case, the following scheme of compensation is
deemed fit by this Tribunal:
i.
Workman who worked for less than 2 years with contractor shall be entitled for Rs.20,000/-.
ii.
Workman who worked for more than 2 years but less than 5 years with contractor shall be entitled
Rs.30,000/-.
iii.
Workman who worked for more than 5 years with contractors shall be entitled for Rs.50,000/-.
24.
Present workman employed on 04.05.2017 and was terminated on 27.10.2018 (less than 2 years), so he is
entitled for Rs.20,000/-.
25.
Respondent no.2 is directed to pay the workman Rs.20,000/- 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. It is also added here that in case respondent no.1 requires safai karamcharis,
then workman may be engaged through any contractor on sympathetic ground.
26.
Let copy of this award be sent to Central Government for publication as required under Section 17 of
the Act.
KAMAL KANT, Presiding Officer
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 262.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj
प्रिासजनक कमांडर मु्यालय (नागररक रक्षा), ृंर्कुला ds izca/kr=] lac) fu;kstdksa vkSj muds deZdkjksa ds chp vuqca/k
1076
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
esa fufnZ’V औद्योजगक fookn esa dsUnzh; ljdkj औद्योजगक vf/kdj.k@Je U;k;ky; र्ंडीगढ़-II ds iapkV (152/2019)
izdkf”kr djrh gSA
[सं. ,y -12025/01/2026-अइअर(ch-I)-53]
सलोनी, ईृ जनदेिक
New Delhi, the 27th February, 2026
S.O. 262.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. 152/2019) of the Cent.Govt.Indus.Tribunal-cum-Labour Court
Chandigarh-II as shown in the Annexure, in the industrial dispute between the management of Admn.
Commander Head Quarter ( Civil Defence), Panchkula and their workmen.
[No. L-12025/01/2026- IR (B-I)-53]
SALONI, Dy. Director
ANNEXURE
IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT-II,
CHANDIGARH
(Present:- Mr. Kamal Kant, Presiding Officer).
ID No. 152/2019
Registered on:-16.10.2019
Narender Singh S/o Sh. Asha Ram, R/o Khera Basouli, Khera, Kalka, Panchkula, Haryana.
-------- Workman/Applicant
Versus
5.
Admn. Commander Station Head Quarter (Civil Defence), Chandi Mandir Cantt. Panchkula, Haryana.
6.
M/s AA Foundation for Safety, Head Office 5919, DLF City, Face-4, Gurugaon-122022.
----Respondents
Present:- Sh. Jang Bahadur, AR for workman.
Sh. Satinder Singh, AR for respondent no.1.
Respondent no.2 already ex parte.
Award : 04.02.2026
1.
Workman has filed the present claim petition under Section 2A of the Industrial Disputes Act, 1947
(hereinafter called the Act) against his termination w.e.f. 27.10.2018 claiming reinstatement into service along with
continuity of service and full back wages.
2.
It is maintained by the workman in the claim petition that that he was appointed as sweeper/safai karamchari
on 13.05.2017 by respondent no.1 at minimum wages prescribed by the Central Government. But the said minimum
wages were never paid to him. Management has unlawfully deducted 12% EPF share, 1.75% ESI and Rs.300/- as
TDS from his salary despite of the fact that his total wages comes under the ambit of tax free limit. He was working
under respondent no.1 directly, but respondent no.1 in order to avoid its liability always shows his employment in
record under different contractors, which tantamount to unfair labour practice.
3.
It is further maintained that workman including 200 other safai karamcharis of respondent no.1 raised the
demand for non-deduction of TDS from the wages paid by respondent no.1. However, their demand was not
accepted. Other workers working under respondent no.1 formed union and subsequently his services were dispensed
with w.e.f. 27.10.2018. It is also maintained that respondent no.1 retained juniors in service and also made fresh
appointments after termination of his services and no compensation was paid under Section 25F of the Act. Thus,
there is violation of Section 25F, 25G and 25H of the Act. Hence this petition.
4.
Notice of the petition was given to respondents.
5.
Respondent no.1 filed reply to the claim petition maintaining therein that the workman has not come to the
Court with clean hands as he was appointed as sweeper by respondent no.2 (contractor) at minimum wage rate as
prescribed by the Central Government. As per Government Policy dated 18.03.2011 (Ex.R-1), Non-Cantonment
Military Stations have been authorized to outsource conservancy safaiwala. The answering respondent entered into
contract with various private agencies for outsourcing of sweepers (safai karamcharis). In July 2018, the answering
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1077
respondent entered into contract with M/s AA Foundation for safety and M/s Sunrise Facilitator Pvt. Ltd. through e-
tendering for outsourcing of safai karamcharis to provide conservancy services in Chandi Mandir Military Station for
the financial year 2018-19. Respondent no.2 submits bill for payment for the days the safai karamcharis performed
their duties and answering respondent is only responsible to forward these bills to PCDA Western Command
Chandigarh to release payment directly to the contractor‘s account. Salary is paid to the workman by the contractor.
Compliance of PF, ESI Rules etc. is carried out by the contractor as per contract agreement. Answering respondent
has no responsibility of disbursement of wages and deduction of EPF and ESI etc. The workman and other safai
karamcharis formed union in the headquarter, which is not permitted and also carried out demonstration inside the
premises of Station Headquarter on 27.10.2018 and failed to perform his duties. Thereafter, answering respondent
asked respondent no.2 to ask the workers to perform their duties. Answering respondent has no role or responsibility
for termination services of the workman. There is no relationship of employer and employee between the answering
respondent and the workman. In view of Army Headquarter Letter, the civilian employees of the answering
respondent cannot organize themselves into trade unions as station headquarter is an administrative office of the
Government of India. In spite of that, workman along with other safai karamcharis formed union unauthorizedly and
indulge in unlawful activities. It is maintained that workman is the employee of contractor and therefore, termination
is the prerogative of the contractor. It is prayed that the claim be dismissed.
6.
It is pertinent to mention here that respondent no.2 was proceeded ex parte on 07.05.2024.
Evidence of workman:-
7.
In order to prove his case, workman examined himself as WW1 and tendered into evidence his affidavit
WW1/A and has been cross examined by the AR for respondent no.1. AR for workman closed the evidence on
22.07.2024.
Evidence of respondent no.1:-
8.
Respondent no.1 examined Colonel K P Singh S/o Late Colonel P. P. Singh, OIC, Civic Cell, Station Head
Quarter, Chandi Mandir Panchkula as MW1, who tendered into evidence his affidavit Ex.MW1/A along with
documents Ex.R1 to Ex.R4. AR for respondent no.1 closed the evidence on 29.01.2026.
Sr. No.
Document
Dated
Exhibit
1.
Policy
18.03.2011
Ex.R-1
2.
Agreement with respondent no.2
05.07.2018
Ex.R-2
3.
Copy of ECR of EPFO
Ex.R-3
4.
Letter of Head Quarter
22.04.1980
Ex.R-4
Submissions of workman:-
9.
While arguing the case, AR for workman contended that in this case, workman was appointed by respondent
no.1 under a camouflage agreement with respondent no.2. The workman was appointed directly by respondent no.1
on 13.05.2017 as sweeper and his services were dispensed with on 27.10.2018 without any reason in violation of
Section 25F, 25G and 25H of the Act as no compensation was paid to the workman and junior to him were retained in
service and fresh appointment were made after termination of the workman. So far as the agreements between the
respondent no.1 & 2 are concerned, they are totally not tenable and is unfair labour practice. The work performed by
the workman is of perennial in nature. The contractor was not having any license. The contractor has left after three
months. No domestic inquiry was held before terminating the service of the workman, which is mandatory under the
Act.
Submissions of respondent no.1:-
10.
On the other hand, AR for respondent no.1 contended that the workman was engaged by respondent no. 2
(contractor) as per agreement executed between respondent no.1 & 2 on outsource basis and there is no relationship
of employer and employee between respondent no.1 and the workman. Wages were paid by the respondent no.2 to
the workman and there was no role of respondent no.1 in appointing or terminating the services of the workman.
Workman is employee of respondent no.2. If there is any violation of provision of the Act, then it is done by
respondent no.2. As per Ex.R3, all dues were paid by the contractor with regard to EPF and ESI etc. The workman
and other safai karamcharis formed union in the Headquarter, which is not permitted as per Ex.R4. Respondent no.1
being the Government Agency, workman is trying to take benefit of his appointment by respondent no.2 and has filed
a false claim after concealing material facts and claim of the workman is not maintainable.
11.
I have given due consideration to the arguments advanced by AR for both the parties.
1078
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
Findings:-
12.
The first contention regarding the applicant is that whether applicant comes within the definition of
workman as is defined in Section 2(s) of the Act. I may mention that applicant was appointed as sweeper as per his
claim petition and affidavit submitted before the Tribunal. In plain words the applicant 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 applicant 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 Colonel K P Singh in his cross examination has
stated that it is responsibility of the contractor to pay monthly wages to the conservancy staff provided by him.
Respondent no.1 has nothing to do with the minimum wages, DC rate to the conservancy staff. Contractor is
responsible to give notice to the conservancy staff provided by him. Respondent no.1 has no roll in terminating the
services of the workman. 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.R-1 to Ex.R-4. Ex.R-2 is
the contract agreement between respondent no.1 & 2. 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, respondent no.2 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.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1079
19.
Workman in his deposition has clearly stated that there was non-compliance of Section 25F, 25G and 25H of
the Act. He also stated that he was appointed on 13.05.2017 and he was paid minimum wages prescribed by Central
Government and was working with respondent no.1. He was not given any compensation before terminating his
services on 27.10.2018. In his cross examination, he has further stated that his salary used to be credited in his bank
account. But he has not placed on record any bank account, in which his salary was credited in order to enable this
Court to see who was making payment to the workman. However, there is no denial that the workman was paid salary
by respondent no.2 (contractor). However, from the agreement dated 05.07.2018 (Ex.R-2) placed on file by
respondent no.1, it emerges that safai karamcharis were provided by respondent no.2 (contractor) to work with
respondent no.1. Thus, workman was employee of respondent no.2 and not of respondent no.1 as has been discussed
above. 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.
20.
Admittedly, there is non-compliance of Section 25F of the Act by respondent no.2. However, as regards
violation of other provisions i.e. Section 25G and 25H of the Act, there is no evidence lead by the workman. Hence,
workman is entitled for compensation from respondent no.2.
21.
It is also added here that there is no iota of evidence that any unfair labour practice used by respondent no.1
by entering into contract with contractors for supply of safai karamcharis and agreement executed between
respondent no.1 and 2 cannot be said to be any unfair labour practice. So far as contentions of AR for workman that
the work performed by the workman is of perennial in nature and no domestic inquiry was held before terminating
the services of workman are concerned, in this regard, it is pointed out that workman was entitled only for
compensation under Section 25F of the Act by respondent no.2 (contractor) and no domestic inquiry was required to
be conducted. Merely because work is of perennial in nature does not mean that any right has accrued in favour of the
workman to get employment with respondent no.1, which is a department of Civil Defence run by Government of
India and for that regular recruitment procedure is provided. Workman cannot seek backdoor entry into service.
Moreover, workman is not employee of respondent no.1 being employee of respondent no.2 (contractor).
22.
In view of above discussion, it is held that since respondent no.2 (contractor) is currently not working with
respondent no.1, so 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.
23.
Keeping in view the fact and circumstances of the present case, the following scheme of compensation is
deemed fit by this Tribunal:
i.
Workman who worked for less than 2 years with contractor shall be entitled for Rs.20,000/-.
ii.
Workman who worked for more than 2 years but less than 5 years with contractor shall be entitled
Rs.30,000/-.
iii.
Workman who worked for more than 5 years with contractors shall be entitled for Rs.50,000/-.
24.
Present workman employed on 13.05.2017 and was terminated on 27.10.2018 (less than 2 years), so he is
entitled for Rs.20,000/-.
25.
Respondent no.2 is directed to pay the workman Rs.20,000/- 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. It is also added here that in case respondent no.1 requires safai karamcharis,
then workman may be engaged through any contractor on sympathetic ground.
26.
Let copy of this award be sent to Central Government for publication as required under Section 17 of
the Act.
KAMAL KANT, Presiding Officer
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 263.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj
प्रिासजनक कमांडर मु्यालय (नागररक रक्षा), ृंर्कुला 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; र्ंडीगढ़-II ds iapkV (98/2019)
izdkf”kr djrh gSA
[सं. ,y -12025/01/2026-अइअर(ch-I)-54]
सलोनी, ईृ जनदेिक
1080
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
New Delhi, the 27th February, 2026
S.O. 263.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. 98/2019) of the Cent.Govt.Indus.Tribunal-cum-Labour Court
Chandigarh-I as shown in the Annexure, in the industrial dispute between the management of Admn.
Commander Head Quarter ( Civil Defence), Panchkula and their workmen.
[No. L-12025/01/2026- IR (B-I)-54]
SALONI, Dy. Director
ANNEXURE
IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT-II,
CHANDIGARH
(Present:- Mr. Kamal Kant, Presiding Officer).
ID No. 98/2019
Registered on:-16.10.2019
Bimla Devi W/o Sh. Kuldeep Kumar, R/o Near Gurudwara Beed Ghaghar, PO Saket, Panchkula, Haryana
-------- Workman/Applicant
Versus
7.
Admn. Commander Station Head Quarter (Civil Defence), Chandi Mandir Cantt. Panchkula, Haryana.
8.
M/s AA Foundation for Safety, Head Office 5919, DLF City, Face-4, Gurgaon-122022.
----Respondents
Present:- Sh. Jang Bahadur, AR for workman.
Sh. Satinder Singh, AR for respondent no.1.
Respondent no. 2 already ex parte.
Award : 02.02.2026
1.
Workman has filed the present claim petition under Section 2A of the Industrial Disputes Act, 1947
(hereinafter called the Act) against her termination w.e.f. 27.10.2018 claiming reinstatement into service along with
continuity of service and full back wages.
2.
It is maintained by the workman in the claim petition that that she was appointed as sweeper/safai
karamchari on 20.02.2016 by respondent no.1 at minimum wages prescribed by the Central Government. But the said
minimum wages were never paid to her. Management has unlawfully deducted 12% EPF share, 1.75% ESI and
Rs.300/- as TDS from her salary despite of the fact that her total wages comes under the ambit of tax free limit. She
was working under respondent no.1 directly, but respondent no.1 in order to avoid its liability always shows her
employment in record under different contractors, which tantamount to unfair labour practice.
3.
It is further maintained that workman including 200 other safai karamcharis of respondent no.1 raised the
demand for non-deduction of TDS from the wages paid by respondent no.1. However, their demand was not accepted.
Other workers working under respondent no.1 formed union and subsequently her services were dispensed with w.e.f.
27.10.2018. It is also maintained that respondent no.1 retained juniors in service and also made fresh appointments
after termination of her services and no compensation was paid under Section 25F of the Act. Thus, there is violation
of Section 25F, 25G and 25H of the Act. Hence this petition.
4.
Notice of the petition was given to respondents.
5.
Respondent no.1 filed reply to the claim petition maintaining therein that the workman has not come to the
Court with clean hands as she was appointed as sweeper by respondent no.2 (contractor) at minimum wage rate as
prescribed by the Central Government. As per Government Policy dated 18.03.2011 (Ex.R-1), Non-Cantonment
Military Stations have been authorized to outsource conservancy safaiwala. The answering respondent entered into
contract with various private agencies for outsourcing of sweepers (safai karamcharis). In July 2018, the answering
respondent entered into contract with M/s AA Foundation for safety and M/s Sunrise Facilitator Pvt. Ltd. through e-
tendering for outsourcing of safai karamcharis to provide conservancy services in Chandi Mandir Military Station for
the financial year 2018-19. Respondent no.2 submits bill for payment for the days the safai karamcharis performed
their duties and answering respondent is only responsible to forward these bills to PCDA Western Command
Chandigarh to release payment directly to the contractor‘s account. Salary is paid to the workman by the contractor.
Compliance of PF, ESI Rules etc. is carried out by the contractor as per contract agreement. Answering respondent
has no responsibility of disbursement of wages and deduction of EPF and ESI etc. The workman and other safai
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1081
karamcharis formed union in the headquarter, which is not permitted and also carried out demonstration inside the
premises of Station Headquarter on 27.10.2018 and failed to perform her duties. Thereafter, answering respondent
asked respondent no.2 to ask the workers to perform their duties. Answering respondent has no role or responsibility
for termination services of the workman. There is no relationship of employer and employee between the answering
respondent and the workman. In view of Army Headquarter Letter, the civilian employees of the answering
respondent cannot organize themselves into trade unions as station headquarter is an administrative office of the
Government of India. In spite of that, workman along with other safai karamcharis formed union unauthorizedly and
indulge in unlawful activities. It is maintained that workman is the employee of contractor and therefore, termination
is the prerogative of the contractor. It is prayed that the claim be dismissed.
6.
It is pertinent to mention here that respondent no.2 was proceeded ex parte on 07.05.2024.
Evidence of workman:-
7.
In order to prove her case, workman examined herself as WW1 and tendered into evidence her affidavit
WW1/A and has been cross examined by the AR for respondent no.1. AR for workman closed the evidence on
22.07.2024.
Evidence of respondent no.1:-
8.
Respondent no.1 examined Colonel K P Singh S/o Late Colonel P. P. Singh, OIC, Civic Cell, Station Head
Quarter, Chandi Mandir Panchkula as MW1, who tendered into evidence his affidavit Ex.MW1/A along with
documents Ex.R1 to Ex.R4. AR for respondent no.1 closed the evidence on 29.01.2026.
Sr. No.
Document
Dated
Exhibit
1.
Policy
18.03.2011
Ex.R-1
2.
Agreement with respondent no.2
05.07.2018
Ex.R-2
3.
Copy of ECR of EPFO
Ex.R-3
4.
Letter of Head Quarter
22.04.1980
Ex.R-4
Submissions of workman:-
9.
While arguing the case, AR for workman contended that in this case, workman was appointed by respondent
no.1 under a camouflage agreement with respondent no.2. The workman was appointed directly by respondent no.1
on 20.02.2016 as sweeper and her services were dispensed with on 27.10.2018 without any reason in violation of
Section 25F, 25G and 25H of the Act as no compensation was paid to the workman and junior to her were retained in
service and fresh appointment were made after termination of the workman. So far as the agreements between the
respondent no.1 & 2 are concerned, they are totally not tenable and is unfair labour practice. The work performed by
the workman is of perennial in nature. The contractor was not having any license. The contractor has left after three
months. No domestic inquiry was held before terminating the service of the workman, which is mandatory under the
Act.
Submissions of respondent no.1:-
10.
On the other hand, AR for respondent no.1 contended that the workman was engaged by respondent no.2
(contractor) as per agreement executed between respondent no.1 & 2 on outsource basis and there is no relationship of
employer and employee between respondent no.1 and the workman. Wages were paid by the respondent no.2 to the
workman and there was no role of respondent no.1 in appointing or terminating the services of the workman.
Workman is employee of respondent no.2. If there is any violation of provision of the Act, then it is done by
respondent no.2. As per Ex.R3, all dues were paid by the contractor with regard to EPF and ESI etc. The workman
and other safai karamcharis formed union in the Headquarter, which is not permitted as per Ex.R4. Respondent no.1
being the Government Agency is trying to take benefit of her appointment by respondent no.2 and has filed a false
claim after concealing material facts and claim of the workman is not maintainable.
11.
I have given due consideration to the arguments advanced by AR for both the parties.
Findings:-
12.
The first contention regarding the applicant is that whether applicant comes within the definition of workman
as is defined in Section 2(s) of the Act. I may mention that applicant was appointed as sweeper as per her claim
petition and affidavit submitted before the Tribunal. In plain words the applicant was performing her duties as
labourer/unskilled worker. She was not in supervisory or administrative post requiring her 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:-
1082
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
“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 applicant 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 Colonel K P Singh in his cross examination has
stated that it is responsibility of the contractor to pay monthly wages to the conservancy staff provided by him.
Respondent no.1 has nothing to do with the minimum wages, DC rate to the conservancy staff. Contractor is
responsible to give notice to the conservancy staff provided by him. Respondent no.1 has no roll in terminating the
services of the workman. 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.R-1 to Ex.R-4. Ex.R-2 is
the contract agreement between respondent no.1 & 2. Thus, from the adduced evidence, it emerges that workman was
paid salary by the contractor and she 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, respondent no.2 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 her deposition has clearly stated that there was non-compliance of Section 25F, 25G and 25H of
the Act. She also stated that she was appointed on 20.02.2016 and she was paid minimum wages prescribed by
Central Government and was working with respondent no.1. She was not given any compensation before terminating
her services on 27.10.2018. In her cross examination, she has further stated that her salary used to be credited in her
bank account. But she has not placed on record any bank account, in which her salary was credited in order to enable
this Court to see who was making payment to the workman. However, there is no denial that the workman was paid
salary by respondent no. 2 (contractor). However, from the agreement dated 05.07.2018 (Ex.R-2) placed on file by
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1083
respondent no.1, it emerges that safai karamcharis were provided by respondent no.2 (contractor) to work with
respondent no.1. Thus, workman was employee of respondent no.2 and not of respondent no.1 as has been discussed
above. 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.
20.
Admittedly, there is non-compliance of Section 25F of the Act by respondent no.2. However, as regards
violation of other provisions i.e. Section 25G and 25H of the Act, there is no evidence lead by the workman. Hence,
workman is entitled for compensation from respondent no.2.
21.
It is also added here that there is no iota of evidence that any unfair labour practice used by respondent no.1
by entering into contract with contractors for supply of safai karamcharis and agreement executed between respondent
no.1 and 2 cannot be said to be any unfair labour practice. So far as contentions of AR for workman that the work
performed by the workman is of perennial in nature and no domestic inquiry was held before terminating the services
of workman are concerned, in this regard, it is pointed out that workman was entitled only for compensation under
Section 25F of the Act by respondent no.2 (contractor) and no domestic inquiry was required to be conducted. Merely
because work is of perennial in nature does not mean that any right has accrued in favour of the workman to get
employment with respondent no.1, which is a department of Civil Defence run by Government of India and for that
regular recruitment procedure is provided. Workman cannot seek backdoor entry into service. Moreover, workman is
not employee of respondent no.1 being employee of respondent no.2 (contractor).
22.
In view of above discussion, it is held that since respondent no.2 (contractor) is currently not working with
respondent no.1, so keeping in view the tenure of service rendered by the workman and salary given to her during the
period of her 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.
23.
Keeping in view the fact and circumstances of the present case, the following scheme of compensation is
deemed fit by this Tribunal:
i.
Workman who worked for less than 2 years with contractor shall be entitled for Rs.20,000/-.
ii.
Workman who worked for more than 2 years but less than 5 years with contractor shall be entitled
Rs.30,000/-.
iii.
Workman who worked for more than 5 years with contractors shall be entitled for Rs.50,000/-.
24.
Present workman employed on 20.02.2016 and was terminated on 27.10.2018 (more than 2 years and less
than 5 years), so she is entitled for Rs.30,000/-. Respondent no.2 is directed to pay the workman Rs.30,000/- 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. It is also added here that in case respondent
no.1 requires safai karamcharis, then workman may be engaged through any contractor on sympathetic ground.
25.
Let copy of this award be sent to Central Government for publication as required under Section 17 of
the Act.
KAMAL KANT, Presiding Officer
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 264.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj
प्रिासजनक कमांडर मु्यालय (नागररक रक्षा), ृंर्कुला 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; र्ंडीगढ़-II ds iapkV (148/2019)
izdkf”kr djrh gSA
[सं. ,y -12025/01/2026-अइअर(ch-I)-55]
सलोनी, ईृ जनदेिक
New Delhi, the 27th February, 2026
S.O. 264.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. 148/2019) of the Cent.Govt.Indus.Tribunal-cum-Labour Court
Chandigarh-II as shown in the Annexure, in the industrial dispute between the management of Admn.
Commander Head Quarter ( Civil Defence), Panchkula and their workmen.
[No. L-12025/01/2026- IR (B-I)-55]
SALONI, Dy. Director
1084
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
ANNEXURE
IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT-II,
CHANDIGARH
(Present:- Mr. Kamal Kant, Presiding Officer).
ID No. 148/2019
Registered on:-16.10.2019
Vinod Kumar S/o Sh. Ram Sawroop, R/o 399, Beer, Ghaghar, Chandi Mandir, Panchkula, Haryana.
-------- Workman/Applicant
Versus
9.
Admn. Commander Station Head Quarter (Civil Defence), Chandi Mandir Cantt. Panchkula, Haryana.
10.
M/s AA Foundation for Safety, Head Office 5919, DLF City, Face-4, Gurugaon-122022.
----Respondents
Present:- Sh. Jang Bahadur, AR for workman.
Sh. Satinder Singh, AR for respondent no.1.
Respondent no. 2 already ex parte.
Award : 03.02.2026
1.
Workman has filed the present claim petition under Section 2A of the Industrial Disputes Act, 1947
(hereinafter called the Act) against his termination w.e.f. 27.10.2018 claiming reinstatement into service along with
continuity of service and full back wages.
2.
It is maintained by the workman in the claim petition that that he was appointed as sweeper/safai karamchari
on 09.09.2012 by respondent no.1 at minimum wages prescribed by the Central Government. But the said minimum
wages were never paid to him. Management has unlawfully deducted 12% EPF share, 1.75% ESI and Rs.300/- as
TDS from his salary despite of the fact that his total wages comes under the ambit of tax free limit. He was working
under respondent no.1 directly, but respondent no.1 in order to avoid its liability always shows his employment in
record under different contractors, which tantamount to unfair labour practice.
3.
It is further maintained that workman including 200 other safai karamcharis of respondent no.1 raised the
demand for non-deduction of TDS from the wages paid by respondent no.1. However, their demand was not
accepted. Other workers working under respondent no.1 formed union and subsequently his services were dispensed
with w.e.f. 27.10.2018. It is also maintained that respondent no.1 retained juniors in service and also made fresh
appointments after termination of his services and no compensation was paid under Section 25F of the Act. Thus,
there is violation of Section 25F, 25G and 25H of the Act. Hence this petition.
4.
Notice of the petition was given to respondents.
5.
Respondent no.1 filed reply to the claim petition maintaining therein that the workman has not come to the
Court with clean hands as he was appointed as sweeper by respondent no.2 (contractor) at minimum wage rate as
prescribed by the Central Government. As per Government Policy dated 18.03.2011 (Ex.R-1), Non-Cantonment
Military Stations have been authorized to outsource conservancy safaiwala. The answering respondent entered into
contract with various private agencies for outsourcing of sweepers (safai karamcharis). In July 2018, the answering
respondent entered into contract with M/s AA Foundation for safety and M/s Sunrise Facilitator Pvt. Ltd. through e-
tendering for outsourcing of safai karamcharis to provide conservancy services in Chandi Mandir Military Station for
the financial year 2018-19. Respondent no.2 submits bill for payment for the days the safai karamcharis performed
their duties and answering respondent is only responsible to forward these bills to PCDA Western Command
Chandigarh to release payment directly to the contractor‘s account. Salary is paid to the workman by the contractor.
Compliance of PF, ESI Rules etc. is carried out by the contractor as per contract agreement. Answering respondent
has no responsibility of disbursement of wages and deduction of EPF and ESI etc. The workman and other safai
karamcharis formed union in the headquarter, which is not permitted and also carried out demonstration inside the
premises of Station Headquarter on 27.10.2018 and failed to perform his duties. Thereafter, answering respondent
asked respondent no.2 to ask the workers to perform their duties. Answering respondent has no role or responsibility
for termination services of the workman. There is no relationship of employer and employee between the answering
respondent and the workman. In view of Army Headquarter Letter, the civilian employees of the answering
respondent cannot organize themselves into trade unions as station headquarter is an administrative office of the
Government of India. In spite of that, workman along with other safai karamcharis formed union unauthorizedly and
indulge in unlawful activities. It is maintained that workman is the employee of contractor and therefore, termination
is the prerogative of the contractor. It is prayed that the claim be dismissed.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1085
6.
It is pertinent to mention here that respondent no.2 was proceeded ex parte on 07.05.2024.
Evidence of workman:-
7.
In order to prove his case, workman examined himself as WW1 and tendered into evidence his affidavit
WW1/A and has been cross examined by the AR for respondent no.1. AR for workman closed the evidence on
22.07.2024.
Evidence of respondent no.1:-
8.
Respondent no.1 examined Colonel K P Singh S/o Late Colonel P. P. Singh, OIC, Civic Cell, Station Head
Quarter, Chandi Mandir Panchkula as MW1, who tendered into evidence his affidavit Ex.MW1/A along with
documents Ex.R1 to Ex.R4. AR for respondent no.1 closed the evidence on 29.01.2026.
Sr. No.
Document
Dated
Exhibit
1.
Policy
18.03.2011
Ex.R-1
2.
Agreement with respondent no.2
05.07.2018
Ex.R-2
3.
Copy of ECR of EPFO
Ex.R-3
4.
Letter of Head Quarter
22.04.1980
Ex.R-4
Submissions of workman:-
9.
While arguing the case, AR for workman contended that in this case, workman was appointed by respondent
no.1 under a camouflage agreement with respondent no.2. The workman was appointed directly by respondent no.1
on 09.09.2012 as sweeper and his services were dispensed with on 27.10.2018 without any reason in violation of
Section 25F, 25G and 25H of the Act as no compensation was paid to the workman and junior to him were retained in
service and fresh appointment were made after termination of the workman. So far as the agreements between the
respondent no.1 & 2 are concerned, they are totally not tenable and is unfair labour practice. The work performed by
the workman is of perennial in nature. The contractor was not having any license. The contractor has left after three
months. No domestic inquiry was held before terminating the service of the workman, which is mandatory under the
Act.
Submissions of respondent no.1:-
10.
On the other hand, AR for respondent no.1 contended that the workman was engaged by respondent no.2
(contractor) as per agreement executed between respondent no.1 & 2 on outsource basis and there is no relationship
of employer and employee between respondent no.1 and the workman. Wages were paid by the respondent no.2 to
the workman and there was no role of respondent no.1 in appointing or terminating the services of the workman.
Workman is employee of respondent no.2. If there is any violation of provision of the Act, then it is done by
respondent no.2. As per Ex.R3, all dues were paid by the contractor with regard to EPF and ESI etc. The workman
and other safai karamcharis formed union in the Headquarter, which is not permitted as per Ex.R4. Respondent no.1
being the Government Agency, workman is trying to take benefit of his appointment by respondent no.2 and has filed
a false claim after concealing material facts and claim of the workman is not maintainable.
11.
I have given due consideration to the arguments advanced by AR for both the parties.
Findings:-
12.
The first contention regarding the applicant is that whether applicant comes within the definition of
workman as is defined in Section 2(s) of the Act. I may mention that applicant was appointed as sweeper as per his
claim petition and affidavit submitted before the Tribunal. In plain words the applicant 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
1086
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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 applicant 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 Colonel K P Singh in his cross examination has
stated that it is responsibility of the contractor to pay monthly wages to the conservancy staff provided by him.
Respondent no.1 has nothing to do with the minimum wages, DC rate to the conservancy staff. Contractor is
responsible to give notice to the conservancy staff provided by him. Respondent no.1 has no roll in terminating the
services of the workman. 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.R-1 to Ex.R-4. Ex.R-2 is
the contract agreement between respondent no.1 & 2. 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, respondent no.2 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, 25G and 25H of
the Act. He also stated that he was appointed on 09.09.2012 and he was paid minimum wages prescribed by Central
Government and was working with respondent no.1. He was not given any compensation before terminating his
services on 27.10.2018. In his cross examination, he has further stated that his salary used to be credited in his bank
account. But he has not placed on record any bank account, in which his salary was credited in order to enable this
Court to see who was making payment to the workman. However, there is no denial that the workman was paid salary
by respondent no.2 (contractor). However, from the agreement dated 05.07.2018 (Ex.R-2) placed on file by
respondent no.1, it emerges that safai karamcharis were provided by respondent no.2 (contractor) to work with
respondent no.1. Thus, workman was employee of respondent no.2 and not of respondent no.1 as has been discussed
above. 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.
20.
Admittedly, there is non-compliance of Section 25F of the Act by respondent no.2. However, as regards
violation of other provisions i.e. Section 25G and 25H of the Act, there is no evidence lead by the workman. Hence,
workman is entitled for compensation from respondent no.2.
21.
It is also added here that there is no iota of evidence that any unfair labour practice used by respondent no.1
by entering into contract with contractors for supply of safai karamcharis and agreement executed between
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1087
respondent no.1 and 2 cannot be said to be any unfair labour practice. So far as contentions of AR for workman that
the work performed by the workman is of perennial in nature and no domestic inquiry was held before terminating
the services of workman are concerned, in this regard, it is pointed out that workman was entitled only for
compensation under Section 25F of the Act by respondent no.2 (contractor) and no domestic inquiry was required to
be conducted. Merely because work is of perennial in nature does not mean that any right has accrued in favour of the
workman to get employment with respondent no.1, which is a department of Civil Defence run by Government of
India and for that regular recruitment procedure is provided. Workman cannot seek backdoor entry into service.
Moreover, workman is not employee of respondent no.1 being employee of respondent no.2 (contractor).
22.
In view of above discussion, it is held that since respondent no.2 (contractor) is currently not working with
respondent no.1, so 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.
23.
Keeping in view the fact and circumstances of the present case, the following scheme of compensation is
deemed fit by this Tribunal:
i.
Workman who worked for less than 2 years with contractor shall be entitled for Rs.20,000/-.
ii.
Workman who worked for more than 2 years but less than 5 years with contractor shall be entitled
Rs.30,000/-.
iii.
Workman who worked for more than 5 years with contractors shall be entitled for Rs.50,000/-.
24.
Present workman employed on 09.09.2012 and was terminated on 27.10.2018 (more than 5 years), so he is
entitled for Rs.50,000/-.
25.
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. It is also added here that in case respondent no.1 requires safai karamcharis,
then workman may be engaged through any contractor on sympathetic ground.
26.
Let copy of this award be sent to Central Government for publication as required under Section 17 of the
Act.
KAMAL KANT, Presiding Officer
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 265.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj
प्रिासजनक कमांडर मु्यालय (नागररक रक्षा), ृंर्कुला 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; र्ंडीगढ़-II ds iapkV (162/2019)
izdkf”kr djrh gSA
[सं. ,y -12025/01/2026-अइअर(ch-I)-56]
सलोनी, ईृ जनदेिक
New Delhi, the 27th February, 2026
S.O. 265.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. 162/2019) of the Cent.Govt.Indus.Tribunal-cum-Labour Court
Chandigarh-II as shown in the Annexure, in the industrial dispute between the management of Admn.
Commander Head Quarter ( Civil Defence), Panchkula and their workmen.
[No. L-12025/01/2026- IR (B-I)-56]
SALONI, Dy. Director
ANNEXURE
In the Central Government Industrial Tribunal-cum-Labour Court-II, Chandigarh
(Present:- Mr. Kamal Kant, Presiding Officer).
ID No.162/2019
Registered on:-16.10.2019
Faqir Chand S/o Sh. Tota Ram, R/o H. No.583 Sakit Chandi Mandir Cantt. Village Bir Ghaggar Panchkula, Haryana.
-------- Applicant/Workman
1088
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
Versus
1.
Admn. Commander Station Head Quarter (Civil Defence), Chandi Mandir Cantt. Panchkula, Haryana.
2.
M/s AA Foundation for Safety, Head Office 5919, DLF City, Face-4, Gurugaon-122022.
----Respondents
Present:- Sh. Jang Bahadur, AR for workman.
Sh. Satinder Singh, AR for respondent no.1.
Respondent no.2 already ex parte.
Award : 04.02.2026
1.
Workman has filed the present claim petition under Section 2A of the Industrial Disputes Act, 1947
(hereinafter called the Act) against his termination w.e.f. 27.10.2018 claiming reinstatement into service along with
continuity of service and full back wages.
2.
It is maintained by the workman in the claim petition that that he was appointed as sweeper/safai karamchari
on 18.02.2018 by respondent no.1 at minimum wages prescribed by the Central Government. But the said minimum
wages were never paid to him. Management has unlawfully deducted 12% EPF share, 1.75% ESI and Rs.300/- as
TDS from his salary despite of the fact that his total wages comes under the ambit of tax free limit. He was working
under respondent no.1 directly, but respondent no.1 in order to avoid its liability always shows his employment in
record under different contractors, which tantamount to unfair labour practice.
3.
It is further maintained that workman including 200 other safai karamcharis of respondent no.1 raised the
demand for non-deduction of TDS from the wages paid by respondent no.1. However, their demand was not
accepted. Other workers working under respondent no.1 formed union and subsequently his services were dispensed
with w.e.f. 27.10.2018. It is also maintained that respondent no.1 retained juniors in service and also made fresh
appointments after termination of his services and no compensation was paid under Section 25F of the Act. Thus,
there is violation of Section 25F, 25G and 25H of the Act. Hence this petition.
4.
Notice of the petition was given to respondents.
5.
Respondent no.1 filed reply to the claim petition maintaining therein that the workman has not come to the
Court with clean hands as he was appointed as sweeper by respondent no.2 (contractor) at minimum wage rate as
prescribed by the Central Government. As per Government Policy dated 18.03.2011 (Ex.R-1), Non-Cantonment
Military Stations have been authorized to outsource conservancy safaiwala. The answering respondent entered into
contract with various private agencies for outsourcing of sweepers (safai karamcharis). In July 2018, the answering
respondent entered into contract with M/s AA Foundation for safety and M/s Sunrise Facilitator Pvt. Ltd. through e-
tendering for outsourcing of safai karamcharis to provide conservancy services in Chandi Mandir Military Station for
the financial year 2018-19. Respondent no.2 submits bill for payment for the days the safai karamcharis performed
their duties and answering respondent is only responsible to forward these bills to PCDA Western Command
Chandigarh to release payment directly to the contractor‘s account. Salary is paid to the workman by the contractor.
Compliance of PF, ESI Rules etc. is carried out by the contractor as per contract agreement. Answering respondent
has no responsibility of disbursement of wages and deduction of EPF and ESI etc. The workman and other safai
karamcharis formed union in the headquarter, which is not permitted and also carried out demonstration inside the
premises of Station Headquarter on 27.10.2018 and failed to perform his duties. Thereafter, answering respondent
asked respondent no.2 to ask the workers to perform their duties. Answering respondent has no role or responsibility
for termination services of the workman. There is no relationship of employer and employee between the answering
respondent and the workman. In view of Army Headquarter Letter, the civilian employees of the answering
respondent cannot organize themselves into trade unions as station headquarter is an administrative office of the
Government of India. In spite of that, workman along with other safai karamcharis formed union unauthorizedly and
indulge in unlawful activities. It is maintained that workman is the employee of contractor and therefore, termination
is the prerogative of the contractor. It is prayed that the claim be dismissed.
6.
It is pertinent to mention here that respondent no.2 was proceeded ex parte on 07.05.2024.
Evidence of workman:-
7.
In order to prove his case, workman examined himself as WW1 and tendered into evidence his affidavit
WW1/A and has been cross examined by the AR for respondent no.1. AR for workman closed the evidence on
22.07.2024.
Evidence of respondent no.1:-
8.
Respondent no.1 examined Colonel K P Singh S/o Late Colonel P. P. Singh, OIC, Civic Cell, Station Head
Quarter, Chandi Mandir Panchkula as MW1, who tendered into evidence his affidavit Ex.MW1/A along with
documents Ex.R1 to Ex.R4. AR for respondent no.1 closed the evidence on 29.01.2026.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1089
Sr. No.
Document
Dated
Exhibit
1.
Policy
18.03.2011
Ex.R-1
2.
Agreement with respondent no.2
05.07.2018
Ex.R-2
3.
Copy of ECR of EPFO
Ex.R-3
4.
Letter of Head Quarter
22.04.1980
Ex.R-4
Submissions of workman:-
9.
While arguing the case, AR for workman contended that in this case, workman was appointed by respondent
no.1 under a camouflage agreement with respondent no.2. The workman was appointed directly by respondent no.1
on 18.02.2018 as sweeper and his services were dispensed with on 27.10.2018 without any reason in violation of
Section 25F, 25G and 25H of the Act as no compensation was paid to the workman and junior to him were retained in
service and fresh appointment were made after termination of the workman. So far as the agreements between the
respondent no.1 & 2 are concerned, they are totally not tenable and is unfair labour practice. The work performed by
the workman is of perennial in nature. The contractor was not having any license. The contractor has left after three
months. No domestic inquiry was held before terminating the service of the workman, which is mandatory under the
Act.
Submissions of respondent no.1:-
10.
On the other hand, AR for respondent no.1 contended that the workman was engaged by respondent no.2
(contractor) as per agreement executed between respondent no.1 & 2 on outsource basis and there is no relationship
of employer and employee between respondent no.1 and the workman. Wages were paid by the respondent no.2 to
the workman and there was no role of respondent no.1 in appointing or terminating the services of the workman.
Workman is employee of respondent no.2. If there is any violation of provision of the Act, then it is done by
respondent no.2. As per Ex.R3, all dues were paid by the contractor with regard to EPF and ESI etc. The workman
and other safai karamcharis formed union in the Headquarter, which is not permitted as per Ex.R4. Respondent no.1
being the Government Agency, workman is trying to take benefit of his appointment by respondent no.2 and has filed
a false claim after concealing material facts and claim of the workman is not maintainable.
11.
I have given due consideration to the arguments advanced by AR for both the parties.
Findings:-
12.
The first contention regarding the applicant is that whether applicant comes within the definition of
workman as is defined in Section 2(s) of the Act. I may mention that applicant was appointed as sweeper as per his
claim petition and affidavit submitted before the Tribunal. In plain words the applicant 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 applicant 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?
1090
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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 Colonel K P Singh in his cross examination has
stated that it is responsibility of the contractor to pay monthly wages to the conservancy staff provided by him.
Respondent no.1 has nothing to do with the minimum wages, DC rate to the conservancy staff. Contractor is
responsible to give notice to the conservancy staff provided by him. Respondent no.1 has no roll in terminating the
services of the workman. 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.R-1 to Ex.R-4. Ex.R-2 is
the contract agreement between respondent no.1 & 2. 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, respondent no.2 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, 25G and 25H of
the Act. He also stated that he was appointed on 18.02.2018 and he was paid minimum wages prescribed by Central
Government and was working with respondent no.1. He was not given any compensation before terminating his
services on 27.10.2018. In his cross examination, he has further stated that his salary used to be credited in his bank
account. But he has not placed on record any bank account, in which his salary was credited in order to enable this
Court to see who was making payment to the workman. However, there is no denial that the workman was paid salary
by respondent no.2 (contractor). However, from the agreement dated 05.07.2018 (Ex.R-2) placed on file by
respondent no.1, it emerges that safai karamcharis were provided by respondent no.2 (contractor) to work with
respondent no.1. Thus, workman was employee of respondent no.2 and not of respondent no.1 as has been discussed
above. 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.
20.
Admittedly, there is non-compliance of Section 25F of the Act by respondent no.2. However, as regards
violation of other provisions i.e. Section 25G and 25H of the Act, there is no evidence lead by the workman. Hence,
workman is entitled for compensation from respondent no.2.
21.
It is also added here that there is no iota of evidence that any unfair labour practice used by respondent no.1
by entering into contract with contractors for supply of safai karamcharis and agreement executed between
respondent no.1 and 2 cannot be said to be any unfair labour practice. So far as contentions of AR for workman that
the work performed by the workman is of perennial in nature and no domestic inquiry was held before terminating
the services of workman are concerned, in this regard, it is pointed out that workman was entitled only for
compensation under Section 25F of the Act by respondent no.2 (contractor) and no domestic inquiry was required to
be conducted. Merely because work is of perennial in nature does not mean that any right has accrued in favour of the
workman to get employment with respondent no.1, which is a department of Civil Defence run by Government of
India and for that regular recruitment procedure is provided. Workman cannot seek backdoor entry into service.
Moreover, workman is not employee of respondent no.1 being employee of respondent no.2 (contractor).
22.
In view of above discussion, it is held that since respondent no.2 (contractor) is currently not working with
respondent no.1, so 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.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1091
23.
Keeping in view the fact and circumstances of the present case, the following scheme of compensation is
deemed fit by this Tribunal:
i.
Workman who worked for less than 2 years with contractor shall be entitled for Rs.20,000/-.
ii.
Workman who worked for more than 2 years but less than 5 years with contractor shall be entitled
Rs.30,000/-.
iii.
Workman who worked for more than 5 years with contractors shall be entitled for Rs.50,000/-.
24.
Present workman employed on 18.02.2018 and was terminated on 27.10.2018 (less than 2 years), so he is
entitled for Rs.20,000/-.
25.
Respondent no.2 is directed to pay the workman Rs.20,000/- 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. It is also added here that in case respondent no.1 requires safai karamcharis,
then workman may be engaged through any contractor on sympathetic ground.
26.
Let copy of this award be sent to Central Government for publication as required under Section 17 of the
Act.
KAMAL KANT, Presiding Officer
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 266.—औद्योजगक fookn vf/kfu;e 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj
प्रिासजनक कमांडर मु्यालय (नागररक रक्षा), ृंर्कुला 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; र्ंडीगढ़-II ds iapkV (158/2019)
izdkf”kr djrh gSA
[सं. ,y -12025/01/2026-अइअर(ch-I)-57]
सलोनी, ईृ जनदेिक
New Delhi, the 27th February, 2026
S.O. 266.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. 158/2019) of the Cent.Govt.Indus.Tribunal-cum-Labour Court
Chandigarh-II as shown in the Annexure, in the industrial dispute between the management of Admn.
Commander Head Quarter ( Civil Defence), Panchkula and their workmen.
[No. L-12025/01/2026- IR (B-I)-57]
SALONI, Dy. Director
ANNEXURE
IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT-II,
CHANDIGARH
(Present:- Mr. Kamal Kant, Presiding Officer).
ID No. 158/2019
Registered on:-16.10.2019
Rajinder S/o Sh. Natar Lal R/o 144 Rampur Siyudi, BCW Surajpur, Kalka, Panchkula, Haryana.
-------- Applicant/Workman
Versus
1.
Admn. Commander Station Head Quarter (Civil Defence), Chandi Mandir Cantt. Panchkula, Haryana.
2.
M/s Sun Rise Facilitator Pvt. Ltd., 2253/1 2nd Floor, Pipli Wala Town, Mani Mazra, Chandigarh.
----Respondents
Present:- Sh. Jang Bahadur, AR for workman.
Sh. Satinder Singh, AR for respondent no.1.
Respondent no.2 already ex parte.
1092
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
Award :06.02.2026
1.
Workman has filed the present claim petition under Section 2A of the Industrial Disputes Act, 1947
(hereinafter called the Act) against his termination w.e.f. 27.10.2018 claiming reinstatement into service along with
continuity of service and full back wages.
2.
It is maintained by the workman in the claim petition that that he was appointed as sweeper/safai karamchari
on 01.09.2015 by respondent no.1 at minimum wages prescribed by the Central Government. But the said minimum
wages were never paid to him. Management has unlawfully deducted 12% EPF share, 1.75% ESI and Rs.300/- as
TDS from hissalary despite of the fact that his total wages comes under the ambit of taxfree limit. He was working
under respondent no.1 directly, but respondent no.1 in order to avoid its liability always shows his employment in
record under different contractors, which tantamount to unfair labour practice.
3.
It is further maintained that workman including 200 other safai karamcharis of respondent no.1 raised the
demand for non-deduction of TDS from the wages paid by respondent no.1. However, their demand was not
accepted. Other workers working under respondent no.1 formed union and subsequently his services were dispensed
with w.e.f. 27.10.2018. It is also maintained that respondent no.1 retained juniors in service and also made fresh
appointments after termination of his services and no compensation was paid under Section 25F of the Act. Thus,
there is violation of Section 25F, 25G and 25H of the Act. Hence this petition.
4.
Notice of the petition was given to respondents.
5.
Respondent no.1 filed reply to the claim petition maintaining therein that the workman has not come to the
Court with clean hands as he was appointed as sweeper by respondent no.2 (contractor) at minimum wage rate as
prescribed by the Central Government. As per Government Policy dated 18.03.2011 (Ex.R-1), Non-Cantonment
Military Stations have been authorized to outsource conservancy safaiwala. The answering respondent entered into
contract with various private agencies for outsourcing of sweepers (safai karamcharis). In July 2018, the answering
respondent entered into contract with M/s AA Foundation for safety and M/s Sunrise Facilitator Pvt. Ltd. through e-
tendering for outsourcing of safai karamcharis to provide conservancy services in Chandi Mandir Military Station for
the financial year 2018-19. Respondent no.2 submits bill for payment for the days the safai karamcharis performed
their duties and answering respondent is only responsible to forward these bills to PCDA Western Command
Chandigarh to release payment directly to the contractor‘s account. Salary is paid to the workman by the contractor.
Compliance of PF, ESI Rules etc. is carried out by the contractor as per contract agreement. Answering respondent
has no responsibility of disbursement of wages and deduction of EPF and ESI etc. The workman and other safai
karamcharis formed union in the headquarter, which is not permitted and also carried out demonstration inside the
premises of Station Headquarter on 27.10.2018 and failed to perform his duties. Thereafter, answering respondent
asked respondent no.2 to ask the workers to perform their duties. Answering respondent has no role or responsibility
for termination services of the workman. There is no relationship of employer and employee between the answering
respondent and the workman. In view of Army Headquarter Letter, the civilian employees of the answering
respondent cannot organize themselves into trade unions as station headquarter is an administrative office of the
Government of India. In spite of that, workman along with other safai karamcharis formed union unauthorizedly and
indulge in unlawful activities. It is maintained that workman is the employee of contractor and therefore, termination
is the prerogative of the contractor. It is prayed that the claim be dismissed.
6.
Respondent no.2 also filed reply maintaining therein that workman worked with it w.e.f. 05.07.2018 to
27.10.2018. Respondent no.2 has not terminated the services of workman. Workman was paid minimum wages as
declared by the Centre Government from time to time. Workman himself left the job at his own will without notice. It
is prayed that the claim may be dismissed.
Evidence of workman:-
7.
In order to prove his case, workman examined himself as WW1 and tendered into evidence his affidavit
WW1/A and has been cross examined by the AR for respondent no.1. AR for workman closed the evidence on
30.07.2024.
Evidence of respondent no.1:-
8.
Respondent no.1 examined Colonel K P Singh S/o Late Colonel P. P. Singh, OIC, Civic Cell, Station Head
Quarter, Chandi Mandir Panchkula as MW1, who tendered into evidence his affidavit Ex.MW1/A along with
documents Ex.R1 to Ex.R4. AR for respondent no.1 closed the evidence on 02.02.2026.
Sr. No.
Document
Dated
Exhibit
1.
Policy
18.03.2011
Ex.R-1
2.
Agreement with respondent no.2
05.07.2018
Ex.R-2
3.
Copy of ECR of EPFO
Ex.R-3
4.
Letter of Head Quarter
22.04.1980
Ex.R-4
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1093
9.
It is pertinent to mention here that respondent no.2 was proceeded ex parte on 20.04.2023.
Submissions of workman:-
10.
While arguing the case, AR for workman contended that in this case, workman was appointed by respondent
no.1 under a camouflage agreement with respondent no.2. The workman was appointed directly by respondent no.1
on 01.09.2015 as sweeper and his services were dispensed with on 27.10.2018 without any reason in violation of
Section 25F, 25G and 25H of the Act as no compensation was paid to the workman and junior to him were retained in
service and fresh appointment were made after termination of the workman. So far as the agreements between the
respondent no.1 & 2 are concerned, they are totally not tenable and is unfair labour practice. The work performed by
the workman is of perennial in nature. The contractor was not having any license. The contractor has left after three
months. No domestic inquiry was held before terminating the service of the workman, which is mandatory under
the Act.
Submissions of respondent no.1:-
11.
On the other hand, AR for respondent no.1 contended that the workman was engaged by respondent no.2
(contractor) as per agreement executed between respondent no.1 & 2 on outsource basis and there is no relationship
of employer and employee between respondent no.1 and the workman. Wages were paid by the respondent no.2 to
the workman and there was no role of respondent no.1 in appointing or terminating the services of the workman.
Workman is employee of respondent no.2. If there is any violation of provision of the Act, then it is done by
respondent no.2. As per Ex.R3, all dues were paid by the contractor with regard to EPF and ESI etc. The workman
and other safai karamcharis formed union in the Headquarter, which is not permitted as per Ex.R4. Respondent no.1
being the Government Agency, workman is trying to take benefit of his appointment by respondent no.2 and has filed
a false claim after concealing material facts and claim of the workman is not maintainable.
12.
I have given due consideration to the arguments advanced by AR for both the parties.
Findings:-
13.
The first contention regarding the applicant is that whether applicant comes within the definition of
workman as is defined in Section 2(s) of the Act. I may mention that applicant was appointed as sweeper as per his
claim petition and affidavit submitted before the Tribunal. In plain words the applicant 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.”
14.
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 applicant herein admittedly falls within the definition of ‗workman‘ under
Section 2(s) of the Act.
15.
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?
16.
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 Colonel K P Singh in his cross examination has
stated that it is responsibility of the contractor to pay monthly wages to the conservancy staff provided by him.
Respondent no.1 has nothing to do with the minimum wages, DC rate to the conservancy staff. Contractor is
1094
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
responsible to give notice to the conservancy staff provided by him. Respondent no.1 has no roll in terminating the
services of the workman. 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.
17.
It is also added here that respondent no.1 has also placed on record documents Ex.R-1 to Ex.R-4. Ex.R-2 is
the contract agreement between respondent no.1 & 2. 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.
18.
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, respondent no.2 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;
19.
TheHon‘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.
20.
Workman in his deposition has clearly stated that there was non-compliance of Section 25F, 25G and 25H of
the Act. He also stated that he was appointed on 01.09.2015 and he was paid minimum wages prescribed by Central
Government and was working with respondent no.1. He was not given any compensation before terminating his
services on 27.10.2018. In his cross examination, he has further stated that his salary used to be credited in his bank
account. But he has not placed on record any bank account, in which his salary was credited in order to enable this
Court to see who was making payment to the workman. However, there is no denial that the workman was paid salary
by respondent no.2 (contractor). However, from the agreement dated 05.07.2018 (Ex.R-2) placed on file by
respondent no.1, it emerges that safai karamcharis were provided by respondent no.2 (contractor) to work with
respondent no.1. Thus, workman was employee of respondent no.2 and not of respondent no.1 as has been discussed
above. 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.
21.
Admittedly, there is non-compliance of Section 25F of the Act by respondent no.2. However, as regards
violation of other provisions i.e. Section 25G and 25H of the Act, there is no evidence lead by the workman. Hence,
workman is entitled for compensation from respondent no.2.
22.
It is also added here that there is no iota of evidence that any unfair labour practice used by respondent no.1
by entering into contract with contractors for supply of safai karamcharis and agreement executed between
respondent no.1 and 2 cannot be said to be any unfair labour practice. So far as contentions of AR for workman that
the work performed by the workman is of perennial in nature and no domestic inquiry was held before terminating
the services of workman are concerned, in this regard, it is pointed out that workman was entitled only for
compensation under Section 25F of the Act by respondent no.2 (contractor) and no domestic inquiry was required to
be conducted. Merely because work is of perennial in nature does not mean that any right has accrued in favour of the
workman to get employment with respondent no.1, which is a department of Civil Defence run by Government of
India and for that regular recruitment procedure is provided. Workman cannot seek backdoor entry into service.
Moreover, workman is not employee of respondent no.1 being employee of respondent no.2 (contractor).
23.
In view of above discussion, it is held that since respondent no.2 (contractor) is currently not working with
respondent no.1, so 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.
24.
Keeping in view the fact and circumstances of the present case, the following scheme of compensation is
deemed fit by this Tribunal:
i.
Workman who worked for less than 2 years with contractor shall be entitled for Rs.20,000/-.
ii.
Workman who worked for more than 2 years but less than 5 years with contractor shall be entitled
Rs.30,000/-.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1095
iii.
Workman who worked for more than 5 years with contractors shall be entitled for Rs.50,000/-.
25.
Present workman employed on 01.09.2015 and was terminated on 27.10.2018 (more than 2 years but less
than 5 years), so he is entitled for Rs.30,000/-.
26.
Respondent no.2 is directed to pay the workman Rs.30,000/- 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. It is also added here that in case respondent no.1 requires safai karamcharis,
then workman may be engaged through any contractor on sympathetic ground.
27.
Let copy of this award be sent to Central Government for publication as required under Section 17 of the
Act.
KAMAL KANT, Presiding Officer
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 267.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj
प्रिासजनक कमांडर मु्यालय (नागररक रक्षा), ृंर्कुला ds izca/kr=] lac) fu;kstdkas vkSj muds deZdkjkas ds chp vuqca/k esa
fufnZ’V औद्योजगक fookn esa dsUnzh; ljdkj औद्योजगक vf/kdj.k@Je U;k;ky; र्ंडीगढ़-II ds iapkV (140/2019)
izdkf”kr djrh gSA
[सं. ,y -12025/01/2026-अइअर(ch-I)-58]
सलोनी, ईृ जनदेिक
New Delhi, the 27th February, 2026
S.O. 267.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. 140/2019) of the Cent.Govt.Indus.Tribunal-cum-Labour Court
Chandigarh-II as shown in the Annexure, in the industrial dispute between the management of Admn.
Commander Head Quarter ( Civil Defence), Panchkula and their workmen.
[No. L-12025/01/2026- IR (B-I)-58]
SALONI, Dy. Director
ANNEXURE
IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT-II,
CHANDIGARH
(Present:- Mr. Kamal Kant, Presiding Officer).
ID No. 140/2019
Registered on:-16.10.2019
Raju S/o Sh. Ram Babu R/o 119, Ram Pur Seuri, Kalka, RCW Suraj Pur, Panchkula, Haryana.
-------- Applicant/Workman
Versus
1.
Admn. Commander Station Head Quarter (Civil Defence), Chandi Mandir Cantt. Panchkula, Haryana.
2.
M/s Sun Rise Facilitator Pvt. Ltd., 2253/1 2nd Floor, Pipli Wala Town, Mani Mazra, Chandigarh.
----Respondents
Present:- Sh. Jang Bahadur, AR for workman.
Sh. Satinder Singh, AR for respondent no.1.
Respondent no.2 already ex parte.
Award :06.02.2026
1.
Workman has filed the present claim petition under Section 2A of the Industrial Disputes Act, 1947
(hereinafter called the Act) against his termination w.e.f. 27.10.2018 claiming reinstatement into service along with
continuity of service and full back wages.
2.
It is maintained by the workman in the claim petition that that he was appointed as sweeper/safai karamchari
on 16.08.2017 by respondent no.1 at minimum wages prescribed by the Central Government. But the said minimum
1096
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
wages were never paid to him. Management has unlawfully deducted 12% EPF share, 1.75% ESI and Rs.300/- as
TDS from hissalary despite of the fact that his total wages comes under the ambit of taxfree limit. He was working
under respondent no.1 directly, but respondent no.1 in order to avoid its liability always shows his employment in
record under different contractors, which tantamount to unfair labour practice.
3.
It is further maintained that workman including 200 other safai karamcharis of respondent no.1 raised the
demand for non-deduction of TDS from the wages paid by respondent no.1. However, their demand was not
accepted. Other workers working under respondent no.1 formed union and subsequently his services were dispensed
with w.e.f. 27.10.2018. It is also maintained that respondent no.1 retained juniors in service and also made fresh
appointments after termination of his services and no compensation was paid under Section 25F of the Act. Thus,
there is violation of Section 25F, 25G and 25H of the Act. Hence this petition.
4.
Notice of the petition was given to respondents.
5.
Respondent no.1 filed reply to the claim petition maintaining therein that the workman has not come to the
Court with clean hands as he was appointed as sweeper by respondent no.2 (contractor) at minimum wage rate as
prescribed by the Central Government. As per Government Policy dated 18.03.2011 (Ex.R-1), Non-Cantonment
Military Stations have been authorized to outsource conservancy safaiwala. The answering respondent entered into
contract with various private agencies for outsourcing of sweepers (safai karamcharis). In July 2018, the answering
respondent entered into contract with M/s AA Foundation for safety and M/s Sunrise Facilitator Pvt. Ltd. through e-
tendering for outsourcing of safai karamcharis to provide conservancy services in Chandi Mandir Military Station for
the financial year 2018-19. Respondent no.2 submits bill for payment for the days the safai karamcharis performed
their duties and answering respondent is only responsible to forward these bills to PCDA Western Command
Chandigarh to release payment directly to the contractor‘s account. Salary is paid to the workman by the contractor.
Compliance of PF, ESI Rules etc. is carried out by the contractor as per contract agreement. Answering respondent
has no responsibility of disbursement of wages and deduction of EPF and ESI etc. The workman and other safai
karamcharis formed union in the headquarter, which is not permitted and also carried out demonstration inside the
premises of Station Headquarter on 27.10.2018 and failed to perform his duties. Thereafter, answering respondent
asked respondent no.2 to ask the workers to perform their duties. Answering respondent has no role or responsibility
for termination services of the workman. There is no relationship of employer and employee between the answering
respondent and the workman. In view of Army Headquarter Letter, the civilian employees of the answering
respondent cannot organize themselves into trade unions as station headquarter is an administrative office of the
Government of India. In spite of that, workman along with other safai karamcharis formed union unauthorizedly and
indulge in unlawful activities. It is maintained that workman is the employee of contractor and therefore, termination
is the prerogative of the contractor. It is prayed that the claim be dismissed.
6.
Respondent no.2 also filed reply maintaining therein that workman worked with it w.e.f. 05.07.2018 to
27.10.2018. Respondent no.2 has not terminated the services of workman. Workman was paid minimum wages as
declared by the Centre Government from time to time. Workman himself left the job at his own will without notice. It
is prayed that the claim may be dismissed.
Evidence of workman:-
7.
In order to prove his case, workman examined himself as WW1 and tendered into evidence his affidavit
WW1/A and has been cross examined by the AR for respondent no.1. AR for workman closed the evidence on
30.07.2024.
Evidence of respondent no.1:-
8.
Respondent no.1 examined Colonel K P Singh S/o Late Colonel P. P. Singh, OIC, Civic Cell, Station Head
Quarter, Chandi Mandir Panchkula as MW1, who tendered into evidence his affidavit Ex.MW1/A along with
documents Ex.R1 to Ex.R4. AR for respondent no.1 closed the evidence on 02.02.2026.
Sr. No.
Document
Dated
Exhibit
1.
Policy
18.03.2011
Ex.R-1
2.
Agreement with respondent no.2
05.07.2018
Ex.R-2
3.
Copy of ECR of EPFO
Ex.R-3
4.
Letter of Head Quarter
22.04.1980
Ex.R-4
9.
It is pertinent to mention here that respondent no.2 was proceeded ex parte on 20.04.2023.
Submissions of workman:-
10.
While arguing the case, AR for workman contended that in this case, workman was appointed by respondent
no.1 under a camouflage agreement with respondent no.2. The workman was appointed directly by respondent no.1
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1097
on 16.08.2017 as sweeper and his services were dispensed with on 27.10.2018 without any reason in violation of
Section 25F, 25G and 25H of the Act as no compensation was paid to the workman and junior to him were retained in
service and fresh appointment were made after termination of the workman. So far as the agreements between the
respondent no.1 & 2 are concerned, they are totally not tenable and is unfair labour practice. The work performed by
the workman is of perennial in nature. The contractor was not having any license. The contractor has left after three
months. No domestic inquiry was held before terminating the service of the workman, which is mandatory under the
Act.
Submissions of respondent no.1:-
11.
On the other hand, AR for respondent no.1 contended that the workman was engaged by respondent no.2
(contractor) as per agreement executed between respondent no.1 & 2 on outsource basis and there is no relationship
of employer and employee between respondent no.1 and the workman. Wages were paid by the respondent no.2 to
the workman and there was no role of respondent no.1 in appointing or terminating the services of the workman.
Workman is employee of respondent no.2. If there is any violation of provision of the Act, then it is done by
respondent no.2. As per Ex.R3, all dues were paid by the contractor with regard to EPF and ESI etc. The workman
and other safai karamcharis formed union in the Headquarter, which is not permitted as per Ex.R4. Respondent no.1
being the Government Agency, workman is trying to take benefit of his appointment by respondent no.2 and has filed
a false claim after concealing material facts and claim of the workman is not maintainable.
12.
I have given due consideration to the arguments advanced by AR for both the parties.
Findings:-
13.
The first contention regarding the applicant is that whether applicant comes within the definition of
workman as is defined in Section 2(s) of the Act. I may mention that applicant was appointed as sweeper as per his
claim petition and affidavit submitted before the Tribunal. In plain words the applicant 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.”
14.
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 applicant herein admittedly falls within the definition of ‗workman‘ under
Section 2(s) of the Act.
15.
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?
16.
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 Colonel K P Singh in his cross examination has
stated that it is responsibility of the contractor to pay monthly wages to the conservancy staff provided by him.
Respondent no.1 has nothing to do with the minimum wages, DC rate to the conservancy staff. Contractor is
responsible to give notice to the conservancy staff provided by him. Respondent no.1 has no roll in terminating the
services of the workman. 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.
17.
It is also added here that respondent no.1 has also placed on record documents Ex.R-1 to Ex.R-4. Ex.R-2 is
the contract agreement between respondent no.1 & 2. Thus, from the adduced evidence, it emerges that workman was
1098
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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.
18.
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, respondent no.2 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;
19.
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.
20.
Workman in his deposition has clearly stated that there was non-compliance of Section 25F, 25G and 25H of
the Act. He also stated that he was appointed on 16.08.2017 and he was paid minimum wages prescribed by Central
Government and was working with respondent no.1. He was not given any compensation before terminating his
services on 27.10.2018. In his cross examination, he has further stated that his salary used to be credited in his bank
account. But he has not placed on record any bank account, in which his salary was credited in order to enable this
Court to see who was making payment to the workman. However, there is no denial that the workman was paid salary
by respondent no.2 (contractor). However, from the agreement dated 05.07.2018 (Ex.R-2) placed on file by
respondent no.1, it emerges that safai karamcharis were provided by respondent no.2 (contractor) to work with
respondent no.1. Thus, workman was employee of respondent no.2 and not of respondent no.1 as has been discussed
above. 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.
21.
Admittedly, there is non-compliance of Section 25F of the Act by respondent no.2. However, as regards
violation of other provisions i.e. Section 25G and 25H of the Act, there is no evidence lead by the workman. Hence,
workman is entitled for compensation from respondent no.2.
22.
It is also added here that there is no iota of evidence that any unfair labour practice used by respondent no.1
by entering into contract with contractors for supply of safai karamcharis and agreement executed between
respondent no.1 and 2 cannot be said to be any unfair labour practice. So far as contentions of AR for workman that
the work performed by the workman is of perennial in nature and no domestic inquiry was held before terminating
the services of workman are concerned, in this regard, it is pointed out that workman was entitled only for
compensation under Section 25F of the Act by respondent no.2 (contractor) and no domestic inquiry was required to
be conducted. Merely because work is of perennial in nature does not mean that any right has accrued in favour of the
workman to get employment with respondent no.1, which is a department of Civil Defence run by Government of
India and for that regular recruitment procedure is provided. Workman cannot seek backdoor entry into service.
Moreover, workman is not employee of respondent no.1 being employee of respondent no.2 (contractor).
23.
In view of above discussion, it is held that since respondent no.2 (contractor) is currently not working with
respondent no.1, so 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.
24.
Keeping in view the fact and circumstances of the present case, the following scheme of compensation is
deemed fit by this Tribunal:
i.
Workman who worked for less than 2 years with contractor shall be entitled for Rs.20,000/-.
ii.
Workman who worked for more than 2 years but less than 5 years with contractor shall be entitled
Rs.30,000/-.
iii.
Workman who worked for more than 5 years with contractors shall be entitled for Rs.50,000/-.
25.
Present workman employed on 16.08.2017 and was terminated on 27.10.2018 (less than 2 years), so he is
entitled for Rs.20,000/-.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1099
26.
Respondent no.2 is directed to pay the workman Rs.20,000/- 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. It is also added here that in case respondent no.1 requires safai karamcharis,
then workman may be engaged through any contractor on sympathetic ground.
27.
Let copy of this award be sent to Central Government for publication as required under Section 17 of the
Act.
KAMAL KANT, Presiding Officer
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 268.—औद्योजगक fookn vf/kfu;e] 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj
प्रिासजनक कमांडर मु्यालय (नागररक रक्षा), ृंर्कुला 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; र्ंडीगढ़-II ds iapkV (144/2019)
izdkf”kr djrh gSA
[सं. ,y -12025/01/2026-अइअर(ch-I)-59]
सलोनी, ईृ जनदेिक
New Delhi, the 27th February, 2026
S.O. 268.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. 144/2019) of the Cent.Govt.Indus.Tribunal-cum-Labour Court
Chandigarh-II as shown in the Annexure, in the industrial dispute between the management of Admn.
Commander Head Quarter ( Civil Defence), Panchkula and their workmen.
[No. L-12025/01/2026- IR (B-I)-59]
SALONI, Dy. Director
ANNEXURE
IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT-II,
CHANDIGARH
(Present:- Mr. Kamal Kant, Presiding Officer).
ID No. 144/2019
Registered on:-16.10.2019
Krishan Kumar S/o Sh. Kali Charan R/o 10 Ram Pur, Seuri Kalka, Panchkula, Haryana.
-------- Applicant/Workman
Versus
1.
Admn. Commander Station Head Quarter (Civil Defence), Chandi Mandir Cantt. Panchkula, Haryana.
2.
M/s Sun Rise Facilitator Pvt. Ltd., 2253/1 2nd Floor, Pipli Wala Town, Mani Mazra, Chandigarh.
----Respondents
Present:- Sh. Jang Bahadur, AR for workman.
Sh. Satinder Singh, AR for respondent no.1.
Respondent no.2 already ex parte.
Award :06.02.2026
1.
Workman has filed the present claim petition under Section 2A of the Industrial Disputes Act, 1947
(hereinafter called the Act) against his termination w.e.f. 27.10.2018 claiming reinstatement into service along with
continuity of service and full back wages.
2.
It is maintained by the workman in the claim petition that that he was appointed as sweeper/safai karamchari
on 20.08.2012 by respondent no.1 at minimum wages prescribed by the Central Government. But the said minimum
wages were never paid to him. Management has unlawfully deducted 12% EPF share, 1.75% ESI and Rs.300/- as
TDS from hissalary despite of the fact that his total wages comes under the ambit of taxfree limit. He was working
under respondent no.1 directly, but respondent no.1 in order to avoid its liability always shows his employment in
record under different contractors, which tantamount to unfair labour practice.
1100
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
3.
It is further maintained that workman including 200 other safai karamcharis of respondent no.1 raised the
demand for non-deduction of TDS from the wages paid by respondent no.1. However, their demand was not
accepted. Other workers working under respondent no.1 formed union and subsequently his services were dispensed
with w.e.f. 27.10.2018. It is also maintained that respondent no.1 retained juniors in service and also made fresh
appointments after termination of his services and no compensation was paid under Section 25F of the Act. Thus,
there is violation of Section 25F, 25G and 25H of the Act. Hence this petition.
4.
Notice of the petition was given to respondents.
5.
Respondent no.1 filed reply to the claim petition maintaining therein that the workman has not come to the
Court with clean hands as he was appointed as sweeper by respondent no.2 (contractor) at minimum wage rate as
prescribed by the Central Government. As per Government Policy dated 18.03.2011 (Ex.R-1), Non-Cantonment
Military Stations have been authorized to outsource conservancy safaiwala. The answering respondent entered into
contract with various private agencies for outsourcing of sweepers (safai karamcharis). In July 2018, the answering
respondent entered into contract with M/s AA Foundation for safety and M/s Sunrise Facilitator Pvt. Ltd. through e-
tendering for outsourcing of safai karamcharis to provide conservancy services in Chandi Mandir Military Station
for the financial year 2018-19. Respondent no.2 submits bill for payment for the days the safai karamcharis
performed their duties and answering respondent is only responsible to forward these bills to PCDA Western
Command Chandigarh to release payment directly to the contractor‘s account. Salary is paid to the workman by the
contractor. Compliance of PF, ESI Rules etc. is carried out by the contractor as per contract agreement. Answering
respondent has no responsibility of disbursement of wages and deduction of EPF and ESI etc. The workman and
other safai karamcharis formed union in the headquarter, which is not permitted and also carried out demonstration
inside the premises of Station Headquarter on 27.10.2018 and failed to perform his duties. Thereafter, answering
respondent asked respondent no.2 to ask the workers to perform their duties. Answering respondent has no role or
responsibility for termination services of the workman. There is no relationship of employer and employee between
the answering respondent and the workman. In view of Army Headquarter Letter, the civilian employees of the
answering respondent cannot organize themselves into trade unions as station headquarter is an administrative office
of the Government of India. In spite of that, workman along with other safai karamcharis formed union
unauthorizedly and indulge in unlawful activities. It is maintained that workman is the employee of contractor and
therefore, termination is the prerogative of the contractor. It is prayed that the claim be dismissed.
6.
Respondent no.2 also filed reply maintaining therein that workman worked with it w.e.f. 05.07.2018 to
27.10.2018. Respondent no.2 has not terminated the services of workman. Workman was paid minimum wages as
declared by the Centre Government from time to time. Workman himself left the job at his own will without notice.
It is prayed that the claim may be dismissed.
Evidence of workman:-
7.
In order to prove his case, workman examined himself as WW1 and tendered into evidence his affidavit
WW1/A and has been cross examined by the AR for respondent no.1. AR for workman closed the evidence on
30.07.2024.
Evidence of respondent no.1:-
8.
Respondent no.1 examined Colonel K P Singh S/o Late Colonel P. P. Singh, OIC, Civic Cell, Station Head
Quarter, Chandi Mandir Panchkula as MW1, who tendered into evidence his affidavit Ex.MW1/A along with
documents Ex.R1 to Ex.R4. AR for respondent no.1 closed the evidence on 02.02.2026.
Sr. No.
Document
Dated
Exhibit
1.
Policy
18.03.2011
Ex.R-1
2.
Agreement with respondent no.2
05.07.2018
Ex.R-2
3.
Copy of ECR of EPFO
Ex.R-3
4.
Letter of Head Quarter
22.04.1980
Ex.R-4
9.
It is pertinent to mention here that respondent no.2 was proceeded ex parte on 20.04.2023.
Submissions of workman:-
10.
While arguing the case, AR for workman contended that in this case, workman was appointed by respondent
no.1 under a camouflage agreement with respondent no.2. The workman was appointed directly by respondent no.1
on 20.08.2012 as sweeper and his services were dispensed with on 27.10.2018 without any reason in violation of
Section 25F, 25G and 25H of the Act as no compensation was paid to the workman and junior to him were retained
in service and fresh appointment were made after termination of the workman. So far as the agreements between the
respondent no.1 & 2 are concerned, they are totally not tenable and is unfair labour practice. The work performed by
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1101
the workman is of perennial in nature. The contractor was not having any license. The contractor has left after three
months. No domestic inquiry was held before terminating the service of the workman, which is mandatory under the
Act.
Submissions of respondent no.1:-
11.
On the other hand, AR for respondent no.1 contended that the workman was engaged by respondent no.2
(contractor) as per agreement executed between respondent no.1 & 2 on outsource basis and there is no relationship
of employer and employee between respondent no.1 and the workman. Wages were paid by the respondent no.2 to
the workman and there was no role of respondent no.1 in appointing or terminating the services of the workman.
Workman is employee of respondent no.2. If there is any violation of provision of the Act, then it is done by
respondent no.2. As per Ex.R3, all dues were paid by the contractor with regard to EPF and ESI etc. The workman
and other safai karamcharis formed union in the Headquarter, which is not permitted as per Ex.R4. Respondent no.1
being the Government Agency, workman is trying to take benefit of his appointment by respondent no.2 and has
filed a false claim after concealing material facts and claim of the workman is not maintainable.
12.
I have given due consideration to the arguments advanced by AR for both the parties.
Findings:-
13.
The first contention regarding the applicant is that whether applicant comes within the definition of
workman as is defined in Section 2(s) of the Act. I may mention that applicant was appointed as sweeper as per his
claim petition and affidavit submitted before the Tribunal. In plain words the applicant 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.”
14.
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 applicant herein admittedly falls within the definition of ‗workman‘
under Section 2(s) of the Act.
15.
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?
16.
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 Colonel K P Singh in his cross
examination has stated that it is responsibility of the contractor to pay monthly wages to the conservancy staff
provided by him. Respondent no.1 has nothing to do with the minimum wages, DC rate to the conservancy staff.
Contractor is responsible to give notice to the conservancy staff provided by him. Respondent no.1 has no roll in
terminating the services of the workman. 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.
17.
It is also added here that respondent no.1 has also placed on record documents Ex.R-1 to Ex.R-4. Ex.R-2 is
the contract agreement between respondent no.1 & 2. 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.
1102
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
18.
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, respondent no.2 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;
19.
TheHon‘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.
20.
Workman in his deposition has clearly stated that there was non-compliance of Section 25F, 25G and 25H of
the Act. He also stated that he was appointed on 20.08.2012 and he was paid minimum wages prescribed by Central
Government and was working with respondent no.1. He was not given any compensation before terminating his
services on 27.10.2018. In his cross examination, he has further stated that his salary used to be credited in his bank
account. But he has not placed on record any bank account, in which his salary was credited in order to enable this
Court to see who was making payment to the workman. However, there is no denial that the workman was paid
salary by respondent no.2 (contractor). However, from the agreement dated 05.07.2018 (Ex.R-2) placed on file by
respondent no.1, it emerges that safai karamcharis were provided by respondent no.2 (contractor) to work with
respondent no.1. Thus, workman was employee of respondent no.2 and not of respondent no.1 as has been discussed
above. 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.
21.
Admittedly, there is non-compliance of Section 25F of the Act by respondent no.2. However, as regards
violation of other provisions i.e. Section 25G and 25H of the Act, there is no evidence lead by the workman. Hence,
workman is entitled for compensation from respondent no.2.
22.
It is also added here that there is no iota of evidence that any unfair labour practice used by respondent no.1
by entering into contract with contractors for supply of safai karamcharis and agreement executed between
respondent no.1 and 2 cannot be said to be any unfair labour practice. So far as contentions of AR for workman that
the work performed by the workman is of perennial in nature and no domestic inquiry was held before terminating
the services of workman are concerned, in this regard, it is pointed out that workman was entitled only for
compensation under Section 25F of the Act by respondent no.2 (contractor) and no domestic inquiry was required to
be conducted. Merely because work is of perennial in nature does not mean that any right has accrued in favour of
the workman to get employment with respondent no.1, which is a department of Civil Defence run by Government
of India and for that regular recruitment procedure is provided. Workman cannot seek backdoor entry into service.
Moreover, workman is not employee of respondent no.1 being employee of respondent no.2 (contractor).
23.
In view of above discussion, it is held that since respondent no.2 (contractor) is currently not working with
respondent no.1, so 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.
24.
Keeping in view the fact and circumstances of the present case, the following scheme of compensation is
deemed fit by this Tribunal:
i.
Workman who worked for less than 2 years with contractor shall be entitled for Rs.20,000/-.
ii.
Workman who worked for more than 2 years but less than 5 years with contractor shall be entitled
Rs.30,000/-.
iii.
Workman who worked for more than 5 years with contractors shall be entitled for Rs.50,000/-.
25.
Present workman employed on 20.08.2012 and was terminated on 27.10.2018 (more than 5 years), so he is
entitled for Rs.50,000/-.
26.
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. It is also added here that in case respondent no.1 requires safai
karamcharis, then workman may be engaged through any contractor on sympathetic ground.
27.
Let copy of this award be sent to Central Government for publication as required under Section 17 of
the Act.
KAMAL KANT, Presiding Officer
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1103
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 269.—औद्योजगक जववाद ऄजधजनयम, 1947 (1947 का 14) की धारा 17 के ऄनुसरण में, केन्रीय
सरकार राष्ट्रीय आस्ट्ृात जनगम जलजमट जविाखाृत्तनम स्ट्टील प्लांट; जमडफील्ड आंडस्ट्रीि जलजमटेड; मेससच ऊजिता
एसोजसएट्स के प्र ंधतंत्र के सं द्ध जनयोिकों और श्री एम. कामेश्वर राव के ीर् ऄनु ंध में जनर्ददष्ट केन्रीय सरकार
औद्योजगक ऄजधकरण एवं श्रम न्यायालय, िजदरा ाद, ृंर्ाट (ररफरेन्स न.- एमृी 11/2017) को िजसा दक ऄनुलग्नक में
ददखाया गया िज, प्रकाजित करती िज िो केन्रीय सरकार को सॉफ्ट कॉृी के साथ 27.02.2026 को प्राप्त हुअ था l
[सं. िेड-16025/03/2026-अइअर(एम)-41]
सलोनी, ईृ जनदेिक
New Delhi, the 27th February, 2026
S.O. 269.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central
Government hereby publishes the award (Reference No. MP 11/2017) 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. Kameswara Rao which was received along with soft copy of the award by the
Central Government on 27.02.2026.
[No. Z-16025/03/2026-IR(M)-41]
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. 11/2017
Between:
M. Kameswara Rao,
S/o. M. Suri 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.
Jeedimetla,
Hyderabad – 500 055 (Telangana)
1104
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 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. 79,635.08ps 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 832
working days, amounting to Rs. 79,635.08ps 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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1105
(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
exparte.
1106
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[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)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1107
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.79,635.08ps. 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
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
1108
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 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.79,635.08ps. 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. 52 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.52 name of the Petitioner, Sri M.
Kameswara Rao, unskilled workman is recorded and against his name amount due towards full and final amount is
shown as Rs.79,635.08ps 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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1109
period from 12.8.2009 to 12.8.2012 and he is entitled to receive Rs. 79,635.08ps. 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.79,635.08ps. 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
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.
1110
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1111
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.
1112
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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. 79,635.08ps. 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
9th day of December, 2025.
IRFAN QAMAR, Presiding Officer
Appendix of evidence
Witnesses examined for the
Witnesses examined for the
Petitioner
Respondent
WW1: Sri M. Kameswara 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.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1113
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. 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
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 270.—औद्योजगक जववाद ऄजधजनयम, 1947 (1947 का 14) की धारा 17 के ऄनुसरण में, केन्रीय
सरकार राष्ट्रीय आस्ट्ृात जनगम जलजमट जविाखाृत्तनम स्ट्टील प्लांट; जमडफील्ड आंडस्ट्रीि जलजमटेड; मेससच ऊजिता
एसोजसएट्स के प्र ंधतंत्र के सं द्ध जनयोिकों और श्री ृी.वी.अर. रेड्डी के ीर् ऄनु ंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक
ऄजधकरण एवं श्रम न्यायालय, िजदरा ाद, ृंर्ाट (ररफरेन्स न.- एमृी 13/2017) को िजसा दक ऄनुलग्नक में ददखाया गया
िज, प्रकाजित करती िज िो केन्रीय सरकार को सॉफ्ट कॉृी के साथ 27.02.2026 को प्राप्त हुअ था l
[सं. िेड-16025/03/2026-अइअर(एम)-42]
सलोनी, ईृ जनदेिक
1114
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
New Delhi, the 27th February, 2026
S.O. 270.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central
Government hereby publishes the award (Reference No. MP 13/2017) 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.V.R. Reddy which was received along with soft copy of the award by the Central
Government on 27.02.2026.
[No. Z-16025/03/2026-IR(M)-42]
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. 13/2017
Between:
P.V.R. Reddy,
S/o. P. Pydayya,
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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1115
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. 83,537.85ps 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
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 899 working days, amounting to Rs. 83,537.85ps 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
1116
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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
Petitioner. Further it is contended that prior to award of the Work contract labour including the Petitioner herein have
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1117
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
of work to Respondent No.3 does not confer any contractual relationship between R1 and R2 and R1 shall not be
1118
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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.83,537.85ps. 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.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1119
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.83,537.85ps. 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. 9 and
against his name the total number of working days 899 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.9 name of the Petitioner, Sri P.V.R.
Reddy, unskilled workman is recorded and against his name amount due towards full and final amount is shown as
Rs.83,537.85ps 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. 83,537.85ps. 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.83,537.85ps. for the
period of August,2009 to 2012 towards retrenchment allowances as per document Ex. W12.
1120
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1121
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
1122
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 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 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. 83,537.85ps. 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
9th day of December, 2025.
IRFAN QAMAR, Presiding Officer
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1123
Appendix of evidence
Witnesses examined for the
Witnesses examined for the
Petitioner
Respondent
WW1: Sri P.V.R. 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.
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.
1124
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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. 512899 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
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 271.—औद्योजगक जववाद ऄजधजनयम, 1947 (1947 का 14) की धारा 17 के ऄनुसरण में, केन्रीय
सरकार राष्ट्रीय आस्ट्ृात जनगम जलजमट जविाखाृत्तनम स्ट्टील प्लांट; जमडफील्ड आंडस्ट्रीि जलजमटेड; मेससच ऊजिता
एसोजसएट्स के प्र ंधतंत्र के सं द्ध जनयोिकों और श्री िी. लक्ष्मण राव के ीर् ऄनु ंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक
ऄजधकरण एवं श्रम न्यायालय, िजदरा ाद, ृंर्ाट (ररफरेन्स न.- एमृी 15/2017) को िजसा दक ऄनुलग्नक में ददखाया गया
िज, प्रकाजित करती िज िो केन्रीय सरकार को सॉफ्ट कॉृी के साथ 27.02.2026 को प्राप्त हुअ था l
[सं. िेड-16025/03/2026-अइअर(एम)-43]
सलोनी, ईृ जनदेिक
New Delhi, the 27th February, 2026
S.O. 271.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central
Government hereby publishes the award (Reference No. MP 15/2017) 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. Laxman Rao which was received along with soft copy of the award by the
Central Government on 27.02.2026.
[No. Z-16025/03/2026-IR(M)-43]
SALONI, Dy. Director
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1125
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. 15/2017
Between:
G. Laxman Rao,
S/o. G. Gurumurthy,
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. 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
1126
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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. 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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1127
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
employment is still continuing under the subsequent contractors without any break in service. Further, it is contended
1128
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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 August 2009 to 15th August 2011 and later it was extended for one more year, i.e., up to 15th August 2012."
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1129
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.81,679.38ps. 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
1130
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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
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. 8 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. 8 name of the Petitioner, Sri G. Laxman
Rao, 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, 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.81,679.38ps. 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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1131
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
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
1132
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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 रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1133
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. 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
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.
1134
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 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 रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1135
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
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 272.—औद्योजगक जववाद ऄजधजनयम, 1947 (1947 का 14) की धारा 17 के ऄनुसरण में, केन्रीय
सरकार राष्ट्रीय आस्ट्ृात जनगम जलजमट जविाखाृत्तनम स्ट्टील प्लांट; जमडफील्ड आंडस्ट्रीि जलजमटेड; मेससच ऊजिता
एसोजसएट्स के प्र ंधतंत्र के सं द्ध जनयोिकों और श्री एम. प्रसाद के ीर् ऄनु ंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक
ऄजधकरण एवं श्रम न्यायालय, िजदरा ाद, ृंर्ाट (ररफरेन्स न.- एमृी 29/2017) को िजसा दक ऄनुलग्नक में ददखाया गया
िज, प्रकाजित करती िज िो केन्रीय सरकार को सॉफ्ट कॉृी के साथ 27.02.2026 को प्राप्त हुअ था l
[सं. िेड-16025/03/2026-अइअर(एम)-44]
सलोनी, ईृ जनदेिक
New Delhi, the 27th February, 2026
S.O. 272.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central
Government hereby publishes the award (Reference No. MP 29/2017) 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. Prasad which was received along with soft copy of the award by the Central
Government on 27.02.2026.
[No. Z-16025/03/2026-IR(M)-44]
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. 29/2017
Between:
M. Prasad,
S/o. M. Babu Rao,
Walzen Strips Pvt. Ltd., Wire Rod Mill-1,
Visakhapatnam Steel Plant,
Visakhapatnam – 530031.
…..Petitioner
1136
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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. 84,652.92ps 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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1137
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 911 working days, amounting to Rs. 84,652.92ps 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
1138
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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.
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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1139
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.
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.84,652.92ps. 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.
1140
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[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
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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1141
to the tune of Rs.84,652.92ps. 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. 79 and
against his name the total number of working days 911 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. 79 name of the Petitioner, Sri M. Prasad,
unskilled workman is recorded and against his name amount due towards full and final amount is shown as
Rs.84,652.92ps 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. 84,652.92ps. 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.84,652.92ps. 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.
1142
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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
application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because
employer has denied the same
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1143
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
Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent
1144
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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. 84,652.92ps. 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
12th day of December 2025.
IRFAN QAMAR, Presiding Officer
Appendix of evidence
Witnesses examined for the
Witnesses examined for the
Petitioner
Respondent
WW1: Sri M. 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
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.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1145
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
1146
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 273.—औद्योजगक जववाद ऄजधजनयम, 1947 (1947 का 14) की धारा 17 के ऄनुसरण में, केन्रीय
सरकार राष्ट्रीय आस्ट्ृात जनगम जलजमट जविाखाृत्तनम स्ट्टील प्लांट; जमडफील्ड आंडस्ट्रीि जलजमटेड; मेससच ऊजिता
एसोजसएट्स के प्र ंधतंत्र के सं द्ध जनयोिकों और श्री वाइ. ससिार्लम के ीर् ऄनु ंध में जनर्ददष्ट केन्रीय सरकार
औद्योजगक ऄजधकरण एवं श्रम न्यायालय, िजदरा ाद, ृंर्ाट (ररफरेन्स न.- एमृी 30/2017) को िजसा दक ऄनुलग्नक में
ददखाया गया िज, प्रकाजित करती िज िो केन्रीय सरकार को सॉफ्ट कॉृी के साथ 27.02.2026 को प्राप्त हुअ था l
[सं. िेड-16025/03/2026-अइअर(एम)-45]
सलोनी, ईृ जनदेिक
New Delhi, the 27th February, 2026
S.O. 273.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central
Government hereby publishes the award (Reference No. MP 30/2017) 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. Simhachalam which was received along with soft copy of the award by the
Central Government on 27.02.2026.
[No. Z-16025/03/2026-IR(M)-45]
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. 30/2017
Between:
Y. Simhachalam,
S/o. Y. Buchi 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.
Jeedimetla,
Hyderabad – 500 055 (Telangana)
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1147
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 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
1148
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1149
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.
Therefore, prayed to direct Respondent to pay the legitimate dues of the Petitioner as per contract Ex. W11.
1150
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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.
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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1151
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. 69 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. 69 name of the Petitioner, Sri Y.
Simhachalam, 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.
1152
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[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 रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1153
“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.
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
1154
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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 रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1155
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 12th day of December 2025.
IRFAN QAMAR, Presiding Officer
Appendix of evidence
Witnesses examined for the
Witnesses examined for the
Petitioner
Respondent
WW1: Sri Y. Simhachalam .
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.
1156
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 274.—औद्योजगक जववाद ऄजधजनयम, 1947 (1947 का 14) की धारा 17 के ऄनुसरण में, केन्रीय
सरकार राष्ट्रीय आस्ट्ृात जनगम जलजमट जविाखाृत्तनम स्ट्टील प्लांट; जमडफील्ड आंडस्ट्रीि जलजमटेड; मेससच ऊजिता
एसोजसएट्स के प्र ंधतंत्र के सं द्ध जनयोिकों और श्री एम. ऄम्मोप के ीर् ऄनु ंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक
ऄजधकरण एवं श्रम न्यायालय, िजदरा ाद, ृंर्ाट (ररफरेन्स न.- एमृी 48/2017) को िजसा दक ऄनुलग्नक में ददखाया गया
िज, प्रकाजित करती िज िो केन्रीय सरकार को सॉफ्ट कॉृी के साथ 27.02.2026 को प्राप्त हुअ था l
[सं. िेड-16025/03/2026-अइअर(एम)-46]
सलोनी, ईृ जनदेिक
New Delhi, the 27th February, 2026
S.O. 274.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central
Government hereby publishes the award (Reference No. MP 48/2017) 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. Ammoru which was received along with soft copy of the award by the Central
Government on 27.02.2026.
[No. Z-16025/03/2026-IR(M)-46]
SALONI, Dy. Director
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1157
ANNEXURE
IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD
Present: -
Shri Irfan Qamar,
Presiding Officer
Dated the 5th day of January 2026
M.P. No. 48/2017
Between:
M. Ammoru,
S/o M. Yerayya,
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
1158
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 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 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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1159
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
1160
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[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)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1161
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.
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
1162
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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. 43 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. 43 name of the Petitioner, Sri M.
Ammoru, 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, 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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1163
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.”
1164
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[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
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 रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1165
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. 83,816.62ps. 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
5th day of January 2026
IRFAN QAMAR, Presiding Officer
Appendix of evidence
Witnesses examined for the
Witnesses examined for the
Petitioner
Respondent
WW1: Sri M. Ammoru
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.
1166
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 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 रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1167
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
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 275.— औद्योजगक जववाद ऄजधजनयम, 1947 (1947 का 14) की धारा 17 के ऄनुसरण में, केन्रीय
सरकार राष्ट्रीय आस्ट्ृात जनगम जलजमट जविाखाृत्तनम स्ट्टील प्लांट; जमडफील्ड आंडस्ट्रीि जलजमटेड; मेससच ऊजिता
एसोजसएट्स के प्र ंधतंत्र के सं द्ध जनयोिकों और श्री िी. ृाआडी रािू के ीर् ऄनु ंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक
ऄजधकरण एवं श्रम न्यायालय, िजदरा ाद, ृंर्ाट (ररफरेन्स न.- एमृी 49/2017) को िजसा दक ऄनुलग्नक में ददखाया गया
िज, प्रकाजित करती िज िो केन्रीय सरकार को सॉफ्ट कॉृी के साथ 27.02.2026 को प्राप्त हुअ था l
[सं. िेड-16025/03/2026-अइअर(एम)-47]
सलोनी, ईृ जनदेिक
New Delhi, the 27th February, 2026
S.O. 275.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central
Government hereby publishes the award (Reference No. MP 49/2017) 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. Pydi Raju which was received along with soft copy of the award by the Central
Government on 27.02.2026.
[No. Z-16025/03/2026-IR(M)-47]
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 January 2026
M.P. No. 49/2017
Between:
G. Pydi Raju,
S/o G. Appa Rao,
Walzen Strips Pvt. Ltd., Wire Rod Mill-1,
Visakhapatnam Steel Plant,
Visakhapatnam – 530031.
…. Petitioner
1168
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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
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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1169
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. 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
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
1170
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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.
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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1171
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.
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.
1172
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[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
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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1173
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. 73 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. 73 name of the Petitioner, Sri G. Pydi
Raju, 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, 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. 1,05,142.15ps. 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, 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.1,05,142.15ps. 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, 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.
1174
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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
application us. 13-C(2) would be maintainable and jurisdiction of Labour Court will not be barred merely because
employer has denied the same
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1175
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
Petitioner workman has not been paid by none of the Respondents. Therefore, as a Principal Employer Respondent
1176
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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
5th day of January 2026
IRFAN QAMAR, Presiding Officer
Appendix of evidence
Witnesses examined for the
Witnesses examined for the
Petitioner
Respondent
WW1: Sri G. Pydi 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.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1177
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
1178
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
नइ ददल्ली, 2 मार्च, 2026
का.अ. 276.—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 (a85/2002) izdkf”kr djrh gSA
[सं. एल-12012/127/2000-अइअर( ी-I)]
सलोनी, ईृ जनदेिक
New Delhi, the 2nd March, 2026
S.O. 276.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. 85/2002) 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-12012/127/2000- IR(B-I)]
SALONI, Dy. Director
ANNEXURE
IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT
HYDERABAD
Present: Sri IRFAN QAMAR
Presiding Officer
Dated the 3rd day of February, 2026
INDUSTRIAL DISPUTE No. 85/2002
[Old ID No.104/2000 of Industrial Tribunal No.I, Hyderabad]
Between:
Sri Y. Mohan Rao,
S/o Jaya Rao,
Thomas Pet, Chirala-523155.
Prakasam Dist. A.P.
… Petitioner
And
The Asst. General Manager,
State Bank of India, Zonal Office,
Region-II, Tirupati A.P-517501.
…..Respondent
Appearances:
For the Petitioner :
Sri Macherla Rangaiah, Advocate
For the Respondent:
Sri Y. Ranjeeth Reddy, Advocate
AWARD
The Government of India, Ministry of Labour by its order No. L-12012/127/2000-IR(B.I) dated 31.8.2000
referred the following dispute under section 10(1)(d) of the I.D. Act, 1947 to Industrial Tribunal No.I, Hyderabad for
adjudication and later the same has been transferred to this Tribunal bearing ID No.104/2000, as per orders of
Central Government vide Lr.No.H-11026/1/2001-IR(C.II) dated 18.10.2001, requiring this forum to decide the
question:
SCHEDULE
―Whether the action of the management of State Bank of India, in terminating Sri Y. Mohan Rao,
Messenger, from the services of the Bank? If not, what relief the workman is entitled?‖
After receipt of the reference, it was numbered as ID No. 85/2002 and notices were issued to both the Workman and
the management.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1179
2.
Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a bird eye
view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along with the batch
cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference was answered in favour of
the Respondent and against the Workman. That said common award dated 17.5.2005 was challenged by the
aggrieved Workmen in various Writ petition No.6470/2014 along with batch of writ petitions before the Hon‘ble
High Court of Andhra Pradesh and Hon‘ble High Court vide its‘ judgement dated 23.6.2014 allowed all batch of writ
petitions and set aside the common award dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases
by Central Government Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State
Bank of India was directed to reengage the Writ Petitioners in position, which they have been occupying prior to
their termination and further directed to consider their cases for regularization as and when the substantive vacancy
arises. This judgement dated 23.6.2014 of Hon‘ble High Court of AP, passed in WP No.6470/2014 and batch
petitions was challenged by Respondent management before the Hon‘ble High Court in Writ Appeal No. 1268 of
2014. The aforesaid Writ Appeals No.1268/2014 and other Writ Appeals were decided by Division Bench of High
Court of Andhra Pradesh by a common judgement dated 20.3.2019. Hon‘ble High Court in aforesaid Writ Appeal
was pleased to pass the order which is extracted as below:-
“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting unofficial
Respondents, we see that while the learned single Judge was justified in setting aside the award af the Tribunal,
the proper course to be adopted was to remit all the cases to the Tribunal. This we say for reasons more than
one. Firstly, in such matters, claims have to be decided on individual basis, as different persons have different
claims as to the length of officiation or discharge of duties and functions; quality of engagement, drawings,
accounting of the post for each one of them, who have worked etc. AIl these issues will not be the same in all the
cases. Therefore, each case ought to have been directed to be decided by the Tribunal afresh on individual
basis. The second and most important aspect is the learned single Judge has in one go ordered re-employment
of all the workmen. This is not a relief that could have been granted without answering the individual issues;
each issue relating to each case could not have been decided by the writ Court within the format of its
adjudication procedures and scope. The adjudicating body, which has to do that activity, is the Industrial
Tribunal. Therefore, we are of the view that while we would sustain the order of the learned singe Judge insofar
as it interfered and sets aside the award of the Tribunal, the further findings and directions, issued through the
impugned order have to go and the individual cases have to be sent back for consideration of the Tribunal. Such
further procedure before the Tribunal will have to be carried forward with the materials already on record and
also by affording an opportunity to the persons, who have claims as well as the management to place their rival
contentions and further material before the Tribunal. The learned counsel appearing for the workmen are
justified in pointing out that enormous delay has already happened and further action by the Tribunal in this
line may be expedited.
9. In the result, these writ appeals are ordered;
(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the common
award dated 17.05.2005 of the Industrial Tribuna!;
(2) the further findings and directions issued through the impugned common order are vacated:
(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an
outer limit of five (5) months from the date of receipt of a copy of this order; and,
(4) the parties to make appearance before the Tribunal on the given date.”
Thus, in view of the above direction of Hon‘ble High Court of Andhra Pradesh in W.A.No.1268 of 2014 and batch
cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it afresh in view of the
aforesaid guidelines laid down by the Hon‘ble High Court in Writ Appeal No.1268/2014 vide judgement
dated 20.3.019.
3.
The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement are that,
the Workman joined in the service of the management institution as Non-Messenger from 1988 to 1997, and has
rendered unblemished service spreading over a period of about 10 years. The Respondent has terminated services of
Workman by oral orders with effect from 1.4.1997. Further, it is submitted that the management of Respondent
bank decided to give a chance to temporarily employed personnel ―found suitable for permanent appointment‖ by
wait- listing them by offering permanent appointment or waitlisting till such opportunity arises.
4.
That on 17.11.1987 a settlement was reached between All India State Bank of India Staff Federation and the
Management of State Bank of India - settlement one, under this settlement three categories of employees were
listed. That is, A) those who have completed 240 days in 12 months or less after 1.7.1975. B) those who have
completed 270 days in any continuous block of 36 calendar months after 1.7.1975. C) (i) those who have completed
minimum of 30 days aggregate temporary service in any calendar year after 1.7.1975 or (ii) 70 days aggregate
temporary service in continuous block of 36 months after 1.7.1975.
1180
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
5.
The persons who satisfied in all the above 4 categories were to be interviewed by a selection committee and
the said selection committee would determine the suitability of the said candidate for permanent appointment.
Therefore, the bank prescribed certain qualifications and from among the candidates satisfying the qualifications the
suitable candidates were enlisted by a selection committee. The Clause 7 of the said agreement provided with the
selected candidate would be wait listed in order of their respective categorization and the selected panel would be
valid upto December, 1991. Clause 10 of the settlement specifically provided that henceforth. ―there will be no
temporary appointments in the subordinate cadre‖, except on a restrictive basis in the specified category, ―from
amongst empanelled candidates as per existing guidelines of the bank‖. The Workman further submits that
consequent upon the said agreement and the draft, a notification was issued in the newspapers. The last date for
responding to the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was
held. A selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was to
be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said letter it is
mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement dated 16.7.88 was
entered into between the parties. In terms of the said agreement a chance was to be given, ―to all eligible temporary
employees for permanent appointments. The appointments were against the vacancies likely to arise during the
years 1995-96, circular made it clear that in view of the enormity of the problem an extension of the currency of the
panel, eligible temporary employees who have been empanelled could not appear in the earlier interviews and have
been pursuing their cases thereafter, ―will be given another chance to appear for interview‖.
6.
Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st settlement
(Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88 is the 3rd settlement (Ex
M3), then settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th settlement (Ex M6). In
between there is minutes of conciliation proceedings dated 9.6.95 marked as Ex M5. That due to all these settlements
which were extended by subsequent settlements thereby created reasonable expectations in the list of the selected
candidates arose with that it‘s a question of time their appointments or services would be regularized in the services
of the bank. The Workman was working with the bank on temporary basis was under the bonafide hope that sooner
his services will be regularized with the bank. He is thereby closed all his options elsewhere. It is needless to point
out that employing person to whom hope of employment in substantial terms was made is a facet of Article 21 of the
Constitution of India.
7.
Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR, dated
16.8.1990. Under said circular the chief Executives of all public sector banks including the Management herein were
specifically instructed that until the problem of existing temporary employees is fully resolved, no bank is permitted
to make any permanent appointments. That some of the persons similarly situated like this Workman aggrieved by the
inaction on the part of the management of the bank is not regularizing their services from out of the selected panel
and not clearly focusing the vacancy position, filed W.P. No. 4194/97 before Hon‘ble High court of A.P..It is
specifically averred in the said writ petition that the Management of the bank had failed to implement the settlement
and that it violates the various fundamental rights guaranteed under the constitution of India. The Hon‘ble High
court of A.P .. by order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It
also directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon‘ble High Court
also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In view of the
directions given by the High Court all candidates whose names appeared in the select panels prepared on the basis of
the agreement entered into on 17.11.87 under which the panel was valid upto December, 1991, and on the basis of a
settlement dated 27.10.1988 whereby the panels were made alive upto 31.3.1997 under which the panel was valid
upto December, 1999. The other agreement dated 16.7.1988 under which the panel was valid upto 1992 and on the
basis of the settlement dated 27.10.1998 whereby the panels were made alive upto 31.3.1997 were under the bonafide
impression that their cases will be considered for regularization and were living on the basis of the said reasonable
expectation. Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the
settlements entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and
31.3.1997 instructing the various authorities of the Management not to continue the temporary employees those who
are in services of the bank from 1.4.97. The said order was followed by the Management. Aggrieved by the said
action the Workman herein and similarly situated candidates have filed a writ petition before the Hon'ble High Court
and by way of Writ Petition No.9206/97 seeking a declaration that the proceedings issued by the Deputy General
Manager and the Assistant General Manager (Respondents 3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as
illegal and also non-continuance of the Workmen therein in service by absorbing them in the services of the bank as
violative of Section 2(p) and 18(1) read with Rule 58 of Central Rules and sought for specific direction to the bank to
absorb them in service.
8.
Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank has
submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies of
circumstances and on account of the urgent need in its banks, it employed temporary employees in subordinate cadre.
It is pertinent to mention that it does not state the urgent or need or the nature of temporary employees that it had
engaged. Enquiry into the same would reveal that the stand taken by the bank either on the ground of urgent need or
of temporary employees is a façade to perpetuate unfair labour practice. It is designed to on the one hand, keep the
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1181
employed in the erroneous zone of hope and on the other to ensure that benefits that a model employer will extend
under various statutes to its employees is not required to be borne out by the bank. A reading of the counter affidavit
would show that the bank would opines that being just fair and reasonable are which obviously is reprehensible and is
a facet of unfair labour practice.
9.
The Workman submits that the bank had referred in its counter affidavit to three settlements dated 17.11.87,
16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of Government dated 16.8.90
stated in its counter affidavit that as follows:
"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with regard to
recruitment and absorption of temporary employees in public sector banks. The said guidelines were issued to
implement on the lines of the approach paper on the issue provided by a committee constituted in this regard. The
Government of India guidelines made it clear that all the public sector banks may follow the provisions laid down in
the approach paper.
The approach paper specified that the cases of temporary employees who had put in not less than 240 days of
temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F may be decided by
entering into a settlement with the representative union. In respect of temporary employees who had put in less than
240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the Management
so desired, they could enter into a conciliation settlement with the representative union. Para 6(h), it is mentioned
that only those temporary employees who had put in temporary service of 90 or more days after 1.1 1982 would be
eligible for considering under the scheme. Although the Government guidelines envisaged for a settlement in respect
of employees who had put in temporary service of 90 or more days, the bank by way of further concession entered
into settlements Even in respect of those who had put in less than 90 days. As such, it could be Seen that the
settlements are more beneficial to the temporary employees concerned. The approach paper also specify at para 6(c)
that the banks would provide one time opportunity to all the temporary employees and for that purpose temporary
employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the scheme.
The Respondents have gone further wherein even persons working after 1975 were also considered.
As could be seen from the above, there was a genuine effort on the part of the Respondent bank to provide
permanent employment for as many as possible subject to availability of the vacancies.
It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be one time
exercise in full and final settlement of all the aims and disputes for the past period in respect of temporary workmen
covered by the settlement. This would mean that the Government of India guidelines would cover only those persons
who were temporarily employed for the period specified therein and not otherwise. As such, it is submitted that the
Respondents have not only followed the Government of India guidelines but in fact covered cases of the employees
who had worked for less than 90 days. As such, question of violation does not arise and in any case those were only
broad guidelines and not directives".
10.
The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein there is a
clause to the effect- that the panel of temporary employees and the panel of daily wage employees will be operated to
a particular period. Therefore, their cases will not be considered. The Management herein relying upon this settlement
in their impugned action. It is submitted that even the settlement dated 9.1.1991 will not empower the management
to terminate the services of the temporary employees who are working in the bank services like the Workman herein
as it does not specify the termination of the employees. In fact there are so many vacancies wherein the Management
has engaged several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of
Hon‘ble High Court without considering the cases of the similarly situated candidates like the Workman herein. It is
submitted inspite of engaging fresh candidates as is now being done by the Management they would have continued
the similarly situated candidates like the Workman herein in the services of the bank and consider their cases for
absorption in view of the circulars issued by Central Government as well as the directions of this Hon'ble Court in
Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued by the Central Government, the Management
should not have relied upon the settlement dated 9.1.1991. Hence, the impugned action of the Management is illegal,
unjust, violative of fundamental rights such as Articles 14,16 and 21 of the Constitution of India.
11.
The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where in they
have complained about the non- implementation of the settlements arrived between the parties and sought for
absorption. Such employees in the bank services on permanent basis before the date fixed for carrying out the terms
of settlement, the Court held that the members of the union had been empanelled in the list, they were not regularized
and the time was going to run out to the near future and the Respondent bank and its officers cannot escape from the
liability of enforcing the settlement which has been reached and therefore directed that the bank and the officers shall
implement the settlement dated 17.11.87 as amended from time to time before the expiry of 31.3.97.
12.
Further, it is submitted that in the clause of Settlement it is specifically mentioned that the workmen to be
absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the date of settlement even the
authorities want to make temporary appointments that should be made only from among the empanelled can be
appointed either for temporary vacancy or permanent vacancy except from among the empanelled candidates like the
1182
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
Workman and that should be continued till they are absorbed. The management committed unfair labour practices
and terminated the services of the candidates with effect from 1.4.1997 which is arbitrary, discriminatory, contrary to
their own guidelines and violative of the constitutional provisions which are guaranteed in Chapter-III of the
Constitution of India.
13.
The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called
Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the
Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal and unfair
labour practice which cannot be allowed to be perpetuated. That the discontinuance of the Workman after 31.3.97
who had served in the bank in any capacity amounts to retrenchment. It could not have been done without any notice
and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the said action is violative of principles of natural
justice guaranteed under Chapter III of the Constitution of India. This amounts to retrenchment without one month's
notice and taken in view of such notice. Thus, the main proceedings issued by the Respondent is without
jurisdiction and is arbitrary, illegal and therefore liable to be quashed. That the alleged Memorandum of
Understanding dated 27.2.97, Ex.M5 does not own any legal entity, as the said Memorandum of Understanding is
not published anywhere to brought to the notice of the Workman whose rights are being affected. It is submitted that
Management did not adhere to the procedure envisaged by the Central Government in its' instructions dated 16.8.90
in the year 1995. The same was not followed in the year 1997 despite there being vacancies.The management
has followed the procedure of calling candidates through Employment exchange instead of giving chance to the
empanelled candidates like the Workman here. It is pertinent to mention here that the Respondent Management sent
letters to the all similarly situated candidates like the Workman in the month of June, 1997, subsequent to the passing
of impugned termination orders. After knowing the facts that the candidates are litigating, the Management refused to
engage these candidates. It is once again reiterated that the panels are meant for absorption but not for termination. It
was the duty of the Management to engage the empanelled candidates like the Workman even in temporary vacancies
till they are absorbed permanently in regular vacancies. Hence, the action of the Respondent Management
terminating the services of the Workman by oral order dated 31.3.97 is unjust, illegal, violative of principles of
natural justice and hence, the Management be directed to reinstate and absorb the Workman and to grant all incidental
and consequential benefits.
14.
Per contra, Respondent had filed counter and made a contentions that the reference is not tenable and
contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate staff
constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions imposed by the
Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to engage sub-ordinate staff
like messengers, sweepers, sweeper cum water boys, etc., depending on the availability of work on purely temporary
basis for the smooth and uninterrupted functioning of the branches. It is submitted that the All India State Bank of
India Staff Federation which represents majority of the employees in the State Bank of India comprising about 98% of
the work force as its' members espoused the cause of temporary employees who have put in less than 240 days of
temporary service in 12 calendar months in the bank and who were ineligible for any protection under Industrial
Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.
15.
Discussions were held and on 17.11.1987 an agreement was signed between the federation and the
Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule 58 of
Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be herein after
referred as first settlement is filed and 4 categories were made as it has already been mentioned in the claim statement
above, it need not be repeated here. In the first settlement, it was agreed that the temporary employees as categorized
would be given a chance for being considered for permanent appointment in the bank's service against the vacancies
which are likely to arise during the period 1987 to 1991. On 16.7.88 second settlement was arrived between the
Federation and the Bank whereby it was agreed to substitute the period of consideration of vacancies as 1987 to 1992
in place of 1987 to 1991 as contemplated under the first settlement dated 17.11.1987. This is the second settlement.
A 3rd settlement was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to
arise from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued guidelines to
all the public sector banks with regard to recruitment and absorption of temporary employees in public sector banks.
The said guidelines were issued to implement on the lines of approach paper on the issue provided by a committee
constituted in this regard. Government of India guidelines made it clear that all the public sector banks may follow
the provisions laid down in the approach paper. The approach paper specified that the cases of temporary service in
12 consecutive months and who are entitled to benefit of Sec.25F of the Industrial Disputes Act, 1947 may be decided
by entering into a settlement with the representative union. In respect of temporary employees who had put in less
than 240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the
Management so desired they could enter into a conciliation settlement with the representative union. In para. 6(h) it
is mentioned that only those temporary employees who had put in temporary service of 90 days or more days after
1.1.82 would be eligible for considering under the scheme. Although the Government guidelines envisaged for a
settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by way of a
further concession entered into settlements. Even in respect of those who had put in less than 90 days and also the
bank went a step further and said those persons who are working after 1975 were also considered. Hence, there was
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1183
a genuine effort on the part of the Respondent bank to provide as many as possible jobs subject to the availability of
the vacancies. However, para 6 (k) of the approach paper made it clear that it is a one time, exercise in full and final,
settlement of all the claims and disputes for the past period, in respect of temporary workmen covered by the
settlement. Another settlement was entered on 9.1.91 herein after referred as 4th settlement and the time limit was
extended upto 1994 and separate panel was prepared for temporary employees, casual/daily wagers. It was agreed that
while vacancies arising between 1988 to 1994 in respect of temporary employees and in respect of casual/daily
wagers, they can be considered for the vacancies arising between 1995-96 only.
16.
It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four Zonal
Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts of Andhra
Pradesh. In terms of the settlement the Management after following the procedure laid down therein prepared the
panels of qualified candidates of temporary employees denoted as 1989 panel and also panel of casual/daily wagers
denoted as 1992 panel for giving a chance for being considered for permanent absorption. These panels were
prepared zone-wise separately for messengers and non-messengers in the descending order of temporary service put
in by the candidates during the stipulated period i.e., 1.7.1975 to 31.7.1988. That the Federation approached the
Regional Labour Commissioner(C) for implementation of bi-partite settlement in respect of absorption of temporary
employees. The Regional Labour Commissioner(C) conducted conciliation proceedings and an agreement was
arrived between the Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of
the conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was arrived
at and an agreement was signed between the Federation and the Management bank on 30.7.1996 under Sec.2 (p) read
with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter called as 5th settlement. That on
27.2.1997 a Memorandum of understanding was also signed by the federation‘s affiliate and the bank Management
recording the fact that the exercise of identifying the messengerial vacancies as on 31.12.1994 has since been
completed by Central Office and thereby 403 messengerial vacancies were sanctioned . It was agreed that these
vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time non-
messengerial staff in the usual manner and the agreement was reached accordingly. It was agreed between the
Federation's affiliate and the Management bank that in terms of the settlement dated 30.7.1996 both the panels of
temporary employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies
were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240 days in a
continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a direction to consider his
candidature for absorption in the Management bank under any rule/law except under the settlement entered into
thereon.
17.
Respondent contended that, in fact, the case of the Workman can be considered under all the five settlements
having got his case considered under provisions of these settlements. All the other provisions and terms of the
settlements are also binding on him/her. The Management bank has not violated any of the provisions of the terms of
the said settlement. That the very preparation and maintenance of panel is in compliance of the terms agreed under
these settlements. These settlements were time bound and they ceased to exist on 31.3.1997. That the bank has never
promised that all the candidates in the panel will be absorbed. In the advertisement itself it was made clear that
candidates will be considered for absorption in the vacancies that may arise upto 1992. Keeping alive the panels after
31.3.1997 is contrary to the settlements arrived between the State Bank of India Staff Federation and the Management
bank. That the settlements are binding on the parties. The Workman is also bound under the terms of the said
settlement. The settlement does not suffer from any ambiguity as their language is very clear. The right under the
settlements is to give them a chance to be considered for future appointment in the bank's services against the
vacancies likely to arise. The settlements were effected to balance the expectations of the temporary employees to be
absorbed in permanent service as against the constitutional rights for all eligible persons to be considered for
employment every time a vacancy arises. That the alleged dispute including the demand for reinstatement has to be
decided in this context. It is submitted that the period of panel list got expired on 31.3.97 and it is an integral term of
the settlement and cannot be modified in any proceedings under the law. These temporary employees who
unfortunately could not be accommodated for want of vacancies have no further rights to be considered for
regularization. That the Hon'ble High Court in WP No.12964/94, held as follows, "It is needless to state that the
settlement arrived at between the All India State Bank of India Staff Federation which, is the majority union and the
bank Management is binding on the Workmen also. It is not at all the case of the Workman that any of the terms of
the settlement has been violated by the bank's Management. If the Workman had worked in the bank on part-time
basis before 31.5.94, that itself would not vest in him a right to claim that his services should be regularized on
permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition is therefore
misconceived and not tenable. However, it is open to the Workman to claim any right which flows from the
settlement between the union and the bank Management. As already pointed out that it is not the grievance of the
Workman that some right which has flown from the settlement in favour of the Workman has been denied by the bank
Management. Therefore, I do not find any ground, let alone substantial ground, to grant the kind of relief sought for
by the Workman. Writ Petition fails and is accordingly dismissed. No costs."
18.
Further, it is contended that if the panels were not lapsed at the end of designated period and allowed to be
continued it would result in making the contracts of temporary employment indirectly permanent through back door
1184
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
entry, which would not only be contrary to the settlements but also to Articles 14 and 16 of Constitution of India and
deprive the chances of original claimants who would Come through proper recruitment procedure. As their rights
have been crystallized by operation of the settlements. Hence, there is no question of any Legitimate expectation
being violated.
19.
Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High Court of A.P.
and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA No.86/98 and the batch was
filed and the Division Bench set aside the order of the Single Judge. Thereafter the ex-temporary employees filed
Special Leave Petition No.11886-11888 of 1998 before the Hon'ble Supreme Court of India. The Hon'ble Supreme
Court of India also dismissed the SLP. Therefore, reference to the Judgement of the Learned Single Judge in WP
No.9206/97 is of no consequences as the same has already been set aside. The observations made in the Judgements
cannot be relied upon for any purpose what so ever. The question of operation of Sec.25F would not come into play.
Further the issue is covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High
Courts. Hence, the reference may be ordered that the Workman is not entitled for any relief.
20.
In order to fortify his claim Workman has examined himself as WW1 and also filed documents in evidence
which has been exhibited as Ex.W1 to W4. Further, the Workman has filed photocopies of documents in support of
his claim which are discussed as under:-
Ex.W1 is the service certificate. Ex.W2 is the notification. Ex.W3 is the interview letter. Ex.W4 is the empanel list.
21.
On the other hand, Respondent has examined witness MW1 Sri K. Bala Kotaiah and this witness has
exhibited 12 documents, marked as Ex.M1 to M12. The details of these documents are as follows:-
Ex.M.1 is the Settlement dated 17.11.1987. Ex.M2 is the Settlement dated 16.7.1988. Ex.M3 is the Settlement
dated 27.10.1988. Ex.M4 is the Settlement dated 9.1.1991. Ex.M5 is the Minutes of the conciliation proceedings
dated 9.6.1995. Ex.M6 is the Settlement dated 30.7.1996. Ex.M7 is the Memorandum of Understanding dt.
27.2.1997. Ex.M8 is the Particulars of 1989 Non Messenger Panel. Ex.M9 is the Particulars of 1989 Non-
Messengerial Panel. Ex.M10 is the Particulars of 1992 Panel. Ex.M11 is the Judgment of Hon‘ble High Court of
A.P. in Writ Appeal No.86/98 dt.1.5.1998. Ex.M12 is the Judgment of Hon‘ble Supreme Court of India in SLP No.
11886-11888 of 1998 dt.10.8.1998.
22.
Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of various
judgements of Hon‘ble Supreme Court as well as Hon‘ble High Court, which we will discuss at appropriate place in
this Award.
23.
Heard the argument of Learned Counsel for Workman as well as for Respondent.
24.
On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel for both
the parties, following points arise for determination in the industrial dispute :-
I.
Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement dated
27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered into between
State Bank of India and All India State Bank of India Staff Federation and also Memorandum of
Understanding are binding upon both the parties?
II.
Whether the action of State Bank of India, Kallur branch in terminating the services of Workman
Sri Y. Mohan Rao, a Messenger with effect from 31.3.1997 is justified?
III.
Whether the Workman is entitled for absorption on permanent post in the Branch of Respondent
management as per averments made by him in the claim statement?
IV.
To what relief if any the Workman is entitled for?
Findings:-
25.
Point No.I:-Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and 30.7.1996,
minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were executed between the
State Bank of India and All India State Bank of India Staff Federation under section 2(p) and 18 (1) of I.D. Act, 1947
read with Rule 58 of Industrial Disputes (Central Rules), 1957.
Section 2(p) of the Industrial Disputes Act, 1947 as follows:-
(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written
agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding
where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof
has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer;
Section 18(1) provides as follows:-
18. Persons on whom settlements and awards are binding.
- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the course of
conciliation proceeding shall be binding on the parties to the agreement.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1185
Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in the
aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman has argued that
the Workman after going through the selection procedure has successfully been listed in the panel for appointment on
the permanent basis in the Respondent management and the empanelled list has to be valid till last person in the
empanelled list is appointed on permanent basis. But the impugned order dated 25.3.97, 27.3.97 and 31.3.97, has been
issued by Respondent management thereby the services of the Workman has been terminated and the said order is not
in consonance of the terms of the agreement entered into between the parties. Further, Workman submits that the
Respondent in the 5th settlement has mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and
that is not binding upon the Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the
aforesaid 5th settlement, is arbitrary and illegal.
26.
The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager, SBI Zonal
Office has issued the letter to all the branches with regard to the subject not to make any temporary appointments in
the Branch in messengerial category from 1.4.1997. The extract of the said letter is given below:-
―We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels of
temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has been decided
by Central Office not to make any temporary appointments in messengerial category from 1.4.1997.‖
Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide letter dated
25.3.1997 has issued direction to all its branches not to make any temporary appointments in messengerial category
from 1.4.1997 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997 as per terms of settlements
entered into by both parties. Further, the contents of the subsequent letter dated 27.3.1997 issued by Respondent
Management is also direction to Branch Manager, State Bank of India not to make any temporary messengerial
category appointment with effect from 1.4.1997 and it has also been communicated to all concerned that the panels
of temporary employees and daily wagers maintained by Zonal offices stand lapsed from 31.1.1997. Further, office
order dated 31.3.1997 has been issued by Respondent management that goes to reveal that the said office order has
been issued to this effect that, ―Consequent on absorption of temporary employees in permanent cadre, it has been
decided by the competent authority that no one onwards, no further daily labour or temporary
employees/appointments should be resorted to/engaged/employed.‖ Therefore, it reflects from the contents of the
aforesaid orders that the temporary appointment in messengerial category and daily labour has been stopped by the
Respondent management with effect from 1.4.1997 because of the lapsed of panel of temporary workers and daily
wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in the 5th settlement
which has been arrived at between the parties on dated 30.7.1996 with the consensus of both the parties. Therefore,
Workman can not challenge the terms and conditions contained in settlement dated 30.7.1996 regarding lapse of
panel on 31.3.1997 as agreed between State Bank of India and State Bank of India Staff Federation. As per provision
contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated 30.7.1996 is binding on both the parties.
In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh..... 1990 II LLJ
510 AP para 414, Hon’ble Court have held:-
―4. There was a settlement between the Management and the workmen under Section 18(1) of the Industrial Disputes
Act on 25th April 1983 under which the age of superannuation of the workmen was fixed at 55 years. The settlement
was to be in force upto 30th June 1986 and the next settlement, incorporating practically the same terms, was again
entered into on 4th February 1987 under Section 18(1) of the Industrial Disputes Act. There is no dispute that these
settlements are under Section 18(1).
14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited jurisdiction. It can
only decide in the first appeal whether a termination by the management is valid or not and is within the parameters
of Section 40 of the Act. The said Authority, in our view, has absolutely no jurisdiction to decide whether a settlement
entered into under Section 18(1) of the Industrial Disputes Act between the representatives of the Workmen and of the
Management, is vitiated by undue influence or misrepresentation or coercion on the part of the Management. The
Authority, namely, the Assistant Commissioner of Labour, was never intended by the A.P. Legislature to have
jurisdiction to go into the question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes
Act by an Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes
Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section 41(1) of the
A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of any such settlements. If
parties to a settlement have a grievance about the validity of a settlement, it is for them to agitate the matter before
the appropriate forum and they cannot ask an Authority constituted under Section 41(1) of the A.P. Shops and
Establishments Act, 1966 with limited jurisdiction, to go into any such question and, that too, incidentally while
deciding whether retirement as per the contract of employment, is legal or not.”
It is not the case of Workman that aforesaid settlements are vitiated by undue influence or misrepresentation or
coercion on the part of the management. If the Workman feeling aggrieved by any terms of settlement/ agreement on
the aforementioned grounds then he can challenge of settlement before a competent authority under the Act, 1947.
But here in the instant matter it is not a case of Workman that aforementioned settlement has been entered into
1186
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
between the parties on the ground of undue influence or misrepresentation or coercion. Therefore, Workman is barred
to raise any objection in respect of fixing the date of lapse of both panels on 31.3.1997 as agreed between both the
parties and Workman can not challenge any terms of said Agreement.
Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR 322,
Hon‘ble Supreme Court have held:-
The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call for a
finding at all in view of 1his Court's order. As observed above that was not a correct assumption. On the other
hand, we feel that this view of the Tribunal has led it to approach the matter in an entirely erroneous manner.
The Tribunal is, rightly enough, conscious that under section 18 (1) of the Industrial Disputes Act the settlement
was binding on the company and the members of the 3rd Respondent union. Even so, the Tribunal devoted
nearly half of its order in scanning the evidence given by the company and Respondent No. 3 to find out
whether the terms of the settlement had been explained by the President of the union to the workmen or not and
whether the workers voluntarily accepted the settlement knowing all the "consequences". This to our mind is
again an entirely wrong approach.
“When a recognised union negotiates with an employer the workers as individuals do not come into the picture.
It is not necessary that each individual worker should know the implications of the settlement since a
recognised union, which is expected to protect the legitimate interests of labour, enters into a settlement in the
best interests of labour. This would be the normal rule. We cannot altogether rule out exceptional cases where
there may be allegations of mala fides, fraud or even corruption or other induce- ments. Nothing of that kind
has been suggested against the President of the 3rd Respondent in this case. That being the position, prima
facie, this is a settlement in the course of collective bargaining and, therefore, is entitled to due weight and
consideration.
It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and others
bad. Unless it can be demonstrated that the objectionable portion is such that it completely outweighs all the
other advantages gained the Court will be slow to hold a settle- ment as unfair and unjust. The settlement has to
be accepted or rejected as a whole and we are unable to reject it as a whole as unfair or unjust. Even before
this Court the 3rd Respondent representing admittedly the large majority of the workmen has stood by this
settlement and that is a strong factor which it is difficult to ignore. As stated elsewhere in the judgment, we
cannot also be oblivious of the fact that all workmen of the company have accepted the settlement. Besides, the
period of settlement has since expired and we are informed that the employer and the 3rd Respondent are
negotiating another settlement with further improvements. These factors, apart from what has been stated
above, and the need for industrial peace and harmony when a union backed by a large majority of workmen has
accepted a settlement in the course of collective bargaining have impelled us not to interfere with this
settlement. That being the position, we unhold the settlement as fair and just and order that the award of the
Tribunal shall be substituted by the settlement dated October 18, 1973. The said settlement shall be the
substituted award. The appeal is disposed of accordingly. There will be no order as to costs.”
Therefore, in view of the law laid down by the Hon‘ble Apex Court as discussed above, the contention of the
Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the permanent post vide 5th
Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized union of Workmen has negotiated
with the Respondent Bank Management representing large number of Workmen and the Workman as individual do
not come into picture. Workman in the instant case has work as temporary Workmen in the Respondent Branch and
in response of Notification he had applied for inclusion of his name in the panel and he was selected for inclusion
his name in the panel list to be utilized for absorption of such Workman to permanent post in order of their seniority
in the list. The Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff
Federation under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position
and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is
allowed to lapse. Thus, in view of law laid down by the Hon‘ble Apex Court, in the instant case, Agreement dated
30.7.1996 was entered into between both the parties in respect of lapsing of the both the panels on 31.3.1997 and
absorption of the Workmen from panel list was subject to availability of vacancy of post likely to arise upto
31.3.1997, have a binding force on Workman as well as management of State Bank of India in view of provision
contained under section 18 (1) of I.D. Act, 1947.
Thus, Point No.I is answered against the Workman and in favour of the Respondent.
27.
Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated his
services by oral order on 31.3.1997 without issuing any notice or paying any salary or compensation in lieu thereof.
Therefore, the termination order of the Workman from service is in violation of provision contained Under Section 25
F of I.D. Act, 1947. Therefore, the order is liable to be set aside.
28.
On the other hand, Respondent counsel contended that Workman has not worked for 240 days in any
preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context, the Workman
has examined himself as WW1 who has reiterated that Workman has been terminated from service by Respondent on
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1187
31.3.1997 without notice of salary or compensation in lieu thereof. Before examining the claim of the Workman on
merit it would be apposite to reproduce the provision contained under section 25 F:-
Section 25F provides:-
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].
Compensation to workmen in case of transfer of undertakings.
Section 25B defines the term continuous service which provides
Definition of continuous service.- For the purposes 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 of 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;
In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from the date of
termination, the initial burden of proof lies upon the Workman and the Workman has to prove this factum by
adducing his oral as well as documentary evidence in support of his claim.
Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the reference of
decisions of Hon‘ble Supreme Court is relevant and the same are discussed below:-
In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:
"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 worked for 240 days in the year
preceding the date of his termination. He has filed an affidavit. It is statement which is in his favor 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 held that the
Workman had worked for 240 days as claimed."
In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "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 was again reiterated in paragraph 11 as follows:
"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 ..‖
In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the Apex
Court held that "the initial burden of proof was on the Workman to show that he had completed 240 days of service."
Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid down
the principle that how to count 240 days of service within one year it is held: "Clause (2)(a) provides for
a fiction to treat a Workman in continuous service for a period of one year despite the fact that he has not
rendered uninterrupted service for a period of one year but he has rendered period of 240 days during the
1188
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
period of 12 calendar service for months counting backwards and just preceding the relevant date being the
date of retrenchment. In other words, in order to invoke the fiction enacted in clause (2)(a) it is necessary to
determine first the relevant date, ie the date of termination of service which is complained of as retrenchment.
After that date is ascertained. move backward to a period of 12 months just preceding the date of retrenchment
and then ascertain whether within the period of 12 months, the Workman has rendered service for a period of
240 days. If these three facts are affirmatively answered in favor of the Workman pursuant to the deeming
fiction enacted in clause (2)(a) it will have to be assumed that the Workman is in continuous service for a
period of one year and he will satisfy the eligibility qualification enacted in Section 25-F"
“14. We have already extracted section 25B since its amendment and the change in language is the legislative
exposition of which note must be taken. In fact, we need not further dilate upon this aspect because in Surendra
Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New Delhi and Anr., Chinnappa
Reddy. J., after noticing the amendment and referring to the decision in Sur Enamel and Stamping Works (P)
Ltd case, held as under:
"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman who
has actually worked under the employer for not less than 240 days during a period of twelve months shall be
deemed to have been in continuous service for a period of one year whether or not he has in fact been in such
continuous service for a period of one year. It is enough that he has worked for 240 days in a period of 12
months, it is not necessary that he should have been in the service of the employer for one whole year."
In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on
principle and on precedent it must be held that section 25B(2) comprehends a situation where a Workman is not
in employment for a period of 12 calendar months, but has rendered service for a period of 240 days within the
period of 12 calendar months commencing and counting backwards from the relevant date, i.e. the date of
retrenchment. If he has, he would be deemed to be in continuous service for a period of one year for the
purpose of section 25B and Chapter VA.”
Thus, in view of the law laid down by the Hon‘ble Apex Court as discussed above the initial burden of proof lies
upon the Workman to show that he has completed 240 days of the service with the Respondent just preceding from
the date of his termination. Further, in respect of the employment of calculating the 240 days service in view of the
contents of Section 25-F read with Section 25-B of the I.D. Act, 1947.
29.
Now, in view of the provision contained under Section 25 F and law laid down by the Hon‘ble Apex Court,
we have to examine whether the Workman has discharged his initial burden of proof in respect of his claim of 240
days continuous service in a calendar year just preceding from the date of his termination i.e., 31.3.1997.
In this context, WW1 in his cross examination has stated that,
“I was not sponsored by any employment exchange. I did not undergo the regular process of selection before my
engagement as temporary messenger in the bank .”
“ It is true that I did not work 240 days in year, in my entire service in the bank in any branch.”
Thus, it is clear from the testimony of WW1 that the Workman had not worked for 240 days continuously in any 12
months of a calendar year just preceding from the date of his termination in the Respondent bank. Therefore,
Workman failed to establish his plea by his oral and documentary evidence that he had worked for 240 days
continuously in calendar year just preceding from the date of his termination i.e., 31.3.1997. Thus, the claim of the
Workman that he has been terminated by oral order without issuing notice or payment in lieu after termination, in
contravention of Section 25 F of Industrial Disputes Act, 1947 is not tenable. However the documents filed by the
Workman in support of his claim, number of days worked with the Respondent goes to reveal that the Workman
had worked intermittently as daily wager depending upon availability of work in branch. Workman did not file any
document of appointment letter or salary slips in support of his claim for appointment as a non-messenger in the
Respondent branch on temporary basis.
30.
Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he was
terminated from services is not correct. As the vacancies were filled up on regular basis in order of their respective
seniority the non-engagement of the Workman does not amount to termination. Further, Respondent contended that
no law provide that even though there is no work temporary employee should be continued in the bank work as the
very engagement of Workman was subject to availability of work. Therefore, the allegation that the bank has
indulged in unfair labour practice is incorrect.
31.
Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force in the
argument advanced by the Respondent that in the instant matter, Workman was not terminated from service by order
dated 31.3.1997 rather he was disengaged in view of the non-availability of the work in the branch. Further, there
was direction issued by the Head Office of the Respondent authority not to engage any daily wager Workman/
temporary Worker w.e.f. 1.4.1997. Thus, such disengagement of Workman does not amount to termination.
Moreover, the Workman failed to prove his claim that he was terminated in contravention of provision of Sec.25F of
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1189
the I.D. Act, 1947 as he failed to establish his plea by any oral or documentary evidence that he had worked for 240
days continuously in a twelve months of calendar year just preceding from date of termination i.e., 31.3.1997.
32.
Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State Bank of
India has issued the letter to Zonal Office with direction to all its branches to this effect that they have been advised
by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of 1989 and daily
wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office not to make any temporary
appointments in messengerial cadre from 1.4.1997, therefore it was directed to issue suitable instructions not to make
temporary appointments from 1.4.1997. There is no mention in this order that the Workman herein has been
terminated from service by this order.
33.
Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial network in
respect of the non-appointment of temporary employees in subordinate cadre and it has directed not to make any
temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has directed to ensure that no
temporary/casual/daily basis appointment of the petty cash. Further, it is directed to all Branch Managers that any
deviation in this regard will be viewed seriously. Thus, these circulars do not reflect that the Workman has been
terminated from service by this order.
34.
Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank by
DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman that he has
been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the service by the Respondent
is not acceptable. The evidence adduced by the Workman clearly goes to reveal that he had worked as a daily wager
for which he has been paid wages according to number of working days. As there was an order for prohibition for
engaging temporary workmen, in the bank, therefore, Workman could not be engaged by the Respondent for work
from 1.4.1997 and there after. It is settled law that the daily wagers are engaged by the employer depending upon
the availability of work and as the work was not available the Workman was not engaged further by the Respondent
management. Therefore, the Workman on the ground of number of days he had worked in the Respondent bank
cannot claim any right to reinstate him into the employment. As the Workman failed to prove the mandatory
condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the
disengagement of Workman from work can not be termed in contravention of provision contained under Sec.25F and
25 B of the I.D. Act, 1947.
Thus, this point is answered against the Workman and in favour of Respondent.
35.
Point No.III:- In this context, the Workman has contended that the management failed to implement the
selected panels during its valid tenure. The management adopted the back door methods contrary to the settlements
and filled up the vacancies. The same is evident from the proceedings dated 18.11.1993 a copy of the same is filed in
the material papers and the same may be read as part of the claim statement. Further, it is submitted that management
has to adhere the procedure issued by the Central Government, the instructions dated 16.8.1990 in the year 1995, but
same was not followed in the year 1997 despite there being vacancies. The management has followed the procedure
of calling candidates through employment exchange instead of giving chance to the empanelled candidates like the
Workman herein. The management sent call letters to the similarly situated candidates like the Workman in the month
of June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are litigating
the issue by way of dispute, the management has refused to engage those candidates, the copies of call letters issued
are filed herein along with claim petition. The Workman herein reiterates that the panels are meant for absorption but
not for termination. In view of the same a duty is cast upon the Respondent management to engage the empanelled
candidates like the Workman herein even in temporary vacancies till they are absorbed permanently in regular
vacancies.
36.
On the other hand, Respondent has contended that the Federation approached Regional Labour
Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of temporary
employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings and agreement was
arrived at between the Federation and the Management bank. It is submitted that it was agreed between the
Federation and the Management that both the panels of temporary employees and daily wagers /casual labour would
be kept alive upto March, 1997 and the vacancies as agreed to under the afore set out settlements will be filled from
both the lists concurrently. A copy of the conciliation proceedings dated 9.6.1995 signed by the parties to the dispute
is filed as a material paper. Further, it is submitted that the settlement was arrived at and an agreement was signed
between the Federation and the Management bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the
Industrial Disputes (Central) Rules 1957 which is binding on the parties. A copy of this agreement which hereinafter
may be referred to as 5th settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996
whereunder the earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it
was agreed to, by the Federation and the Management bank that both the panels of temporary employees and daily
wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies existing/arrived at as on
31.12.1994 as per the norms agreed to between the bank and Federation and that thereafter the said panels would
lapse. It was also agreed that within the framework of the above settlements the modalities about drawing names
from either the panel of temporary employees or the panel of daily wagers and casual labour would be decided
1190
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
administratively on circle to circle basis depending upon the local requirements in consultation with the Federation‘s
affiliate by the Circle management. It was further agreed that all messenger real vacancies/positions in the subordinate
cadre including part-time attendants specifically provided as leave reserve will be filled by the end of 31.3.1997.
Further, Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the
Federation‘s affiliate and the bank management regarding the fact that the exercise of identifying the messengerial
vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial vacancies were
sanctioned to the circle of the Management bank and it was agreed that these vacancies may be filled from 1989 panel
of temporary employees after effecting conversion from full time non-messengerial staff in the usual manner and the
agreement was reached upon. Further, it was agreed between the Federations affiliate and the management bank
that in terms of the settlement dated 30.7.1996 both the panels of temporary employees and daily wagers /casual
employees would lapse on 31.3.1997.
37.
The Workman has contended that the empanelled list prepared by the Respondent management for
appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is exhausted by
appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the date fixed for the lapse of
panel. It is undisputed that the date of lapse of empanelled list of Workmen has been fixed to 31.3.1997 as
mentioned in the settlement dated 30.7.1996, and agreed between the parties. It is settled law that and once the life
of panel list lapses on the date as agreed between the parties it cannot be extended beyond that date. In the instant
case the panel list of the workmen was valid upto 31.3.1997 in view of the terms and conditions enumerated in the 5th
Settlement entered into between the parties. As the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of
India and State Bank of India Staff Federation through 5th Settlement, the Workman is not competent to challenge the
same.
In this context I would like to take reference of the decision of the apex court in the case of Syndicate Bank and Ors
vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court have held:-
“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work as
temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government of India
in respect of such temporary appointments, the Calcutta regional office of the appellant Bank issued a circular
to all of its branches on 14.8.1982, instructing all the branches under it to discontinue the old practice from
1.6.1982 and appoint only empanelled candidates. The regional office was to prepare a panel of eligible
candidates, after calling names from the local/district employment exchange, and split it up branch-wise.
Following that new procedure yearly panels were prepared thereafter. Names of the Respondents were for the
first time included in the panel prepared for the period 7.2.1987 to 6.2.1988. By its letter dated 7.2.1987 the
Bank had informed the Respondents that the panel was valid for one year only and that inclusion of their names
in the panel was not to confer on them any right to seek permanent appointment in the service of the bank.
Considering the object with which the panel was prepared and the fact that it was an yearly panel expiring on
6.2.1988, we are of the opinion that the Respondents did not get any right, because of inclusion of their names
in the said panel, for permanent absorption in the service of the Bank. Whatever conditional right they had
came to an end with the expiry of the panel. The claim of the Respondents, as contained in the writ petition was
thus misconceived and therefore the learned single Judge and the Division Bench, when it first decided the
appeal, were right in dismissing the writ petition and the appeal respectively.”
Thus, in view of the above law laid down by the Hon‘ble Apex Court and in view of the terms and conditions of the
5th Settlement the contention of the Workman that empanelled list should continue even after 31.3.1997 till the last
Workman in the panel is absorbed is not tenable. The contention of the Workman is baseless in view of recital in
the settlement. Therefore, in view of the fore gone discussion and finding given at Point No. I regarding binding
nature of Settlements and terms and conditions enumerated therein, in view of the provision contained u/s.18(1) of the
I.D. Act, 1947, I am of the considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement
dated 30.7.1996 and plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has
no legal force and same is untenable.
38.
Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of India and
State Bank of India Staff Federation and in that settlement it was agreed that both the panels of temporary employees
and daily wagers/ casual employees will be used for filling vacancies existing as on 31.12.1994 as per the norms
agreed between the bank and the Federation. These empanelled workmen were to be given a chance for permanent
appointment in the bank against vacancies arising up to December 1994 whereas the daily wagers/ casual employees
were to be considered against the vacancies arise from January 1995 to December 1996, whereby the said panel
would lapse. It was agreed that the vacancies falls upto 31.3.1997 shall be filled before the empanelled list is
allowed to lapse. Thus, the claim of the Workman to the post of permanent non-messenger in the Respondent
management was subject to the availability of the sanctioned post and vacancies arising upto 31.3.1997. The
workmen given chance to the permanent post were seniors in number of working days in panel list and Workman
herein was junior to those workmen. Therefore, Workman could not be given absorption to permanent post being
junior to other workmen in the panel list.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1191
39.
In this context the Workman witness WW1 was cross examined by the Respondent counsel and in the cross
examination the witness WW1 states:-
“I applied Appointment as messenger in response to the advertisement issued by the bank and the union in the
year 1989.. The panel was prepared basing upon the number of days of service put in by the temporary
employees. Some of the temporary employees whose names were included in the panel were given appointment
in order of their seniority in the panel…… I am not having any documents to show that any person who worked
for less number of days than me was given appointment in the bank....”
Thus, from the above statement of the Workman witness WW1 it is clear that the panel was prepared in terms of
various settlements entered into between Staff Federation of State Bank of India and State Bank of India and it was
prepared on the basis of number of days of work put in by the temporary employees. Further, the Workman himself
admitted that some of the temporary employees whose names were included in the panel were given regular
appointment in the bank in order of their seniority in the panel and he is not having any document to show that any
person who worked for less number of days than the Workman was given appointment in the bank. Therefore, the
allegation of the Workman that the regular appointment has been made by the bank from the panel list in breach of
the terms of the settlement and violation of seniority of panel list is not proved by this evidence of WW1. Thus,
there is no evidence on record that bank has given the appointment to the temporary employees as well as daily
wagers from the panel list 1989 and 1992 in breach of seniority of the temporary employees in the list. There is no
evidence of jumbling in the panel list to make appointment of any permanent Workman in breach of the seniority.
Therefore, I am constrained to hold that the Respondent Management has appointed the workmen from panel list in
order of seniority and there is no jumbling of workmen in the panel list before it got lapsed on 31.3.1997.
40.
However, Workman has taken the plea that the panels of Workmen for absorption in the employment of the
Respondent banks (panels of temporary employees and daily wagers) has been lapsed on 31.3.1997 in contravention
of terms of settlement as the object of preparing the entire empanelment of temporary and daily wagers was to
provide them permanent employment and till the both the panel lists exhausted the panel list cannot be lapsed on
31.3.1997 and the date of lapsing of the panel on 31.3.1997 has been fixed by the Respondent arbitrarily without any
authority.
41.
In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated 30.7.1996
was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial Dispute (Central) Rules
1957. This settlement has been entered into by the competent parties and in this settlement parties thereto agreed
that both the panels of temporary employees and daily wagers/casual employees will lapse on 31.3.1997. Thus the
date of lapse of panel was fixed by both the parties with consensus under the settlement dated 30.7.1996 and same is
binding upon the Workman under the provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding
force of the settlement dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at
finding in Point No.I of this award. However, the legality and validity of the aforementioned settlement has not been
challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of panel
i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of Workman for
his absorption to the permanent post it is settled law that the Workman can not claim his regularization to permanent
post merely on the basis of number of working days.
42.
In this context the reference of the decision of Hon‘ble Supreme Court in the case of Oil and Natural Gas
Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant therein Hon‘ble
Supreme Court have has laid down principle regarding regularization of the Workman on permanent posts. Hon‘ble
Supreme Court have laid down the prepositions of regularization of the workmen to permanent post is as under:-
―(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction to
order regularisation, where such a direction would in the context of public employment offend the provisions
contained in Article 14 of the Constitution;
(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the status
of permanency continues to exist in circumstances where the employer has indulged in an unfair labour
practice by not filling up permanent posts even though such posts are available and by continuing to employ
workmen as temporary or daily wage employees despite their performing the same work as regular workmen on
lower wages;
(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no posts are
available, a direction to grant regularisation would be impermissible merely on the basis of the number of years
of service;
(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it would be
open to workmen who have been deprived of the same benefit at par with the workmen who have been
regularised to make a complaint before the Labour or Industrial Court, since the deprivation of the benefit
would amount to a violation of Article 14; and
(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth Schedule of
the ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and continuing them
for years, with the object of depriving them of the benefits payable to permanent workmen.
1192
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
Thus, in view of the principles laid down by the Hon‘ble Supreme Court as discussed above, in the instant matter the
Workman utterly failed to prove his claim by adducing any documentary or oral evidence that the employer has
indulged in unfair labour practice by not filling the permanent posts even though such posts are available and by
continuing to employ workmen as temporary or daily wage employees despite their performance was the same work,
as regular workmen on lower wages.
43.
Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up from the
panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled. Further, it is
contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997, hence, there is no
occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed to prove contrary by any
evidence to the aforesaid contention of the Respondent that the vacancies were existing as on 31.3.1997 and the
workman was not given absorption to the permanent post in order of his seniority. It is settled law that the power to
create permanent or sanctioned post lies outside the judicial domain and where no posts are available, a direction to
grant regularization would be impermissible merely on the basis of the number of years of service. Therefore, the
claim of the workman on this ground also not acceptable.
44.
Further, as per the of settlement, panel was prepared for absorption of the workmen on the permanent posts
has already been lapsed on 31.3.1997 and the vacancies existing and arising upto 31.12.1994 and upto 31.3.1997 as
settlement dated 30.7.1996 has been filled up from the panel by appointing the workmen as per seniority in the panel
list. Workman witness WW1 in his cross examination has himself admitted this fact that, some of the temporary
employees whose names were included in the panel were given regular appointment in the bank in order of their
seniority in the panel. The Workman failed to show that there was any breach of terms of settlement has been
committed by the Respondent in appointment to permanent post from aforesaid panel list.
45.
As discussed in preceding paragraph of this Award, the life of the panel has not been extended beyond
31.3.1997, by any further settlement hence, the panel list in which name of the Workman was included got expired
on 31.3.1997. It is not the case of the Workman that Respondent has regularized similarly situated workmen either in
the scheme or otherwise and the Workman has been deprived of same benefit on par with those workmen or the
vacancies remained unfilled on the date of lapse of panels i.e., 31.3.1997, Industrial Tribunal has no jurisdiction to
extend the date of lapse of panel i.e., 31.3.1997. This Tribunal can not order for regularization of workmen to the
permanent post in contravention of the provision of Article 14 of the Constitution of India.
In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007 date of
judgement 13.12.2007, Hon‘ble Supreme Court have held:-
“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are governed by
a statute and statutory rules. No appointment can be made by a Local Authority without following the
provisions of the recruitment rules. Any appointment made in violation of the said rules as also the
constitutional scheme of equality as contained in Articles 14 and 16 of the Constitution of India would be a
nullity.
9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was permissible,
but by reason thereof an employee cannot claim any right to be permanently absorbed in service or made
permanent in absence of any statute or statutory rules. Merely because an employee has completed 240 days of
work in a year preceding the date of retrenchment, the same would not mean that his services were liable to be
regularized.”
Therefore, in view of the law laid down by the Hon‘ble Apex Court, the claim of the Workman for absorption merely
on the basis of number of day of work in the Respondent bank Branch is not acceptable. As regard plea of the
Workman that the Workman should have been given employment even after 31.3.1997 as temporary Workman, it is
the discretion of Respondent to engage the Workman depending upon availability of work and this Tribunal can not
direct the Respondent to engage the Workman in the absent of such rule/scheme.
46.
In view of principle laid down by Hon‘ble Apex Court as discussed above, in the instant matter Workman
utterly failed to establish the fact of rendering continuous service for a period of 240 days of service within a period
of 12 calendar months commencing and coming backward from relevant date i.e., the date of retrenchment, if has he
would be denied to be in continuous service for a period of one year. Therefore, the provision contained under
Sec.25F of retrenchment is not applicable to Workman.
Counsel for Workman has relied upon number of decisions of Hon‘ble High Court and Hon'ble Supreme Court and
few of them are discussed herein:-
In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon‘ble Supreme Court have
held:-
“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to conform
to Article 14 of the Constitution of which non-arbitrariness is a significant facet. There is no unfettered
discretion in public law: A public authority possesses powers only to use them for public good. This impose the
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1193
duty to act fairly and to adopt a procedure which is `fairplay in action'. Due observance of this obligation as a
part of good administration raises a reasonable or legitimate expectation in every citizen to be treated fairly in
his interaction with the State and its instrumentalities, with this element forming a necessary component of the
decision making process in all State actions. To satisfy this requirement of non- arbitrariness in a State action,
it is, therefore, necessary to consider and give due weight to the reasonable or legitimate expectations of the
persons likely lo be affected by the decision or else that unfairness in the exercise of the power may amount to
an abuse or excess of power apart from affecting the bona fides of the decision in a given case. The decision so
made would be exposed to challenge on the ground of arbitrariness. Rule of law does not completely eliminate
discretion in the exercise of power, as it is unrealistic, but providers for control of its exercise by judicial
review.”
In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP No.193/1997,
therein Hon‘ble High Court have held,
―Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that it
was a permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his services
were not liable to be terminated and he was to be regularised into service on permanent basis. Shastry award
warrants that no temporary appointment can be made to a permanent post. But the matter is now covered by
two division bench judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in W.A. No.270 of
1982. The ratio decided in the two judgements is to the effect that there cannot be any mandate to appoint
employees on permanent basis when the requirement was for appointment on temporary basis. But it is held in
the said judgements that when a temporary appointee is ousted from service and not for misconduct and, if
again temporary appointment is to be made, then, the case of such temporary appointee who was ousted, has
got to be considered in accordance with Sec. 25-H of the Act.”
In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein Hon‘ble
Supreme Court have held:-
“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities
must consider his case for regularization provided he is eligible and qualified according to the rules and his
service record is satisfactory and his appointment does not run counter to the reservation policy of the state.”
In the above cited judgements by the Workman the facts of the case are different hence do not apply to instant case
of Workman.
47.
On the other hand, in support of his contention Respondent has examined witness MW1 and MW1 in chief
examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were entered into between
the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994 for those temporary employees
who has worked on scale wages. Further, MW1 states that two different panels for messengers and non-messengers
as per the eligibility criteria prescribed by the bank. There are four modules in Andhra Pradesh and they are
Hyderabad, Tirupathi, Vijayawada and Visakhapatnam. MW1 states that the temporary employees so empanelled
were given permanent absorption depending upon the vacancies so arise strictly in terms of the settlement. MW1
states that on 9.6.1995 conciliation proceeding was held before the RLC(C), Hyderabad and in said proceedings it
was decided that the panels will be kept live up to 31.3.1997 and vacancies will be filled from both the lists
concurrently. A copy of the said minutes of proceedings is Ex.M5. Further, MW1 states that on 30.7.1996 another
settlement was entered between the SBI and All India SBI Staff Federation providing for filling up of the vacancies
arising up to December 1994 in respect of subordinate cadre and daily wage /casual wage employees out of panel so
prepared were to be considered against vacancies arising from January 1995 to December 1996, thereafter the said
panels lapse. MW1 states that it was also agreed that all the non- messenger positions in subordinate cadre including
part time attendants specially provided as leave reserve will be filled before 31.3.1997 and as regards to non-
messengerial positions it is agreed that all such posts sanctioned and fallen vacant up to 31.3.1997 shall be filled
before the empanelled list is allowed to lapse. Thus in both the cases empanelled list were lapsed on 1.4.1997.
Ex.M6 is the copy of the settlement dated 30.7.1996. Further, witness states that on 27.2.1997 a memorandum of
understanding was reached between the SBI and SBI Staff Federation providing that both the panels above mentioned
will lapse on 31.3.1997. Ex.M7 is the copy of the memorandum of understanding and Ex.M8 is the copy of the
statements giving the particulars of 1989 non-messenger panel, Ex.M9 is the copy of the statement of 1989 non-
messenger panel, Ex.M10 is the copy of statement of 1992 panel. Further, witness states that petitioner was included
in the 1989 panel. As the existing vacancies at that time were exhausted and his turn did not come he could not be
given permanent employment in the bank as per the agreements. All the appointments were made strictly in
accordance with the settlements reached from time to time between SBI and SBI staff federation and as per seniority,
number of days of temporary service put in by them in the bank in the given period. Further, MW1 states petitioner
was not sponsored by any employment exchange he did not undergo the regular process of selection required for
appointment as a regular non-messenger the petitioner has not worked for 240 days in any year in his entire temporary
service in the bank. The petitioner and other temporary employees were terminated from service by the bank.
Further, MW1 states that the vacancies were filled up on regular basis with the temporary employees from the panels
and these panels were expired in terms of the settlements so reached and there were no vacancies to absorb such
1194
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
employees. Thus, witness MW1 has proved the documents Ex.M1 to Ex.M12 and also contentions made in the
counter. However, MW1 was cross examined by the Petitioner Counsel. But nothing has been elicited in his cross
examination so as to discredit the testimony of the witness MW1 as regards the date of lapse of both the panels on
31.3.1997 and reasons assigned for non-absorption of the Petitioner from the panel list to the permanent post.
Moreover the witness MW1 was re-examined by the Respondent and the witness MW1 states that panels were
expired in terms of the settlement send absorptions to the extent of the available vacancies were made. There was no
termination of any temporary messenger as such but their services were not utilized after the cut off date as the
available vacancies were already filled up and most of these Petitioners were not in the service of the bank as on the
date of the expiry date of the panels. Therefore, in view of the aforesaid testimony of the MW1 in re-examination in
the absence of cross examination remained uncontraverted, the claim of the Workman that he was entitled for
absorption in permanent post in the branch of Respondent Management on the basis of panel list is found not
established.
This point is answered against the Workman.
48.
Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the Workman is not
entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.
This Point is answered accordingly.
ORDER
In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating the
services of Sri Y. Mohan Rao, Ex. Messenger by way of oral orders w.e.f. 31.3.1997 is justified. Hence, the
Petitioner is not entitled for any relief as prayed for. The claim statement filed by Workman sans merit, hence,
dismissed. Reference is answered accordingly.
Award is passed accordingly. Transmit.
Typed to my dictation by Smt. K. Phani Gowri, P.A., transcribed by her, corrected and signed by me on this
the 3rd day of February, 2026.
IRFAN QAMAR, Presiding Officer
Appendix of evidence
Witnesses examined for the
Witnesses examined for the
Petitioner
Respondent
WW1: Sri Y. Mohan Rao
MW1: Sri K. Bala Kotaiah
Documents marked for the Petitioner
Ex.W1: Photocopy of Service certificate
Ex.W2: Photocopy of notification
Ex. W3: Photocopy of interview letter
Ex. W4: Photocopy of panel list
Documents marked for the Respondent
Ex.M1:
Photocopy of settlement between Respondent and All India State Bank of India Staff Federation
dt.17.11.87
Ex.M2:
Photocopy of settlement between Respondent and All India State Bank of India Staff Federation
dt.16.7.88
Ex.M3:
Photocopy of settlement between Respondent and All India State Bank of India Staff Federation
dt.27.10.1988
Ex.M4:
Photocopy of settlement between Respondent and All India State Bank of India Staff Federation
dt.9.1.1991
Ex.M5:
Photocopy of conciliation proceedings before the Regional Labour Commissioner(C) dt.9.6.1995
Ex.M6:
Photocopy of settlement between Respondent and All India State Bank of India Staff Federation
dt.30.7.1996
Ex.M7:
Photocopy of Memorandum of understanding dt. 27.1.1997
Ex.M8:
Photocopy of statements giving the particulars of 1989 messenger panel.
Ex.M9:
Photocopy of statement of 1989 Non-messenger panel
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1195
Ex.M10:
Photocopy of statement of 1992 panel
Ex.M11:
Photocopy of order of Hon‘ble High Court in WA No.86/98 dt. 1.5.98
Ex.M12:
Photocopy of order in SLP No.11886-11888 of 1998 dated 10.8.98
नइ ददल्ली, 2 मार्च, 2026
का.अ. 277.—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 (a154/2002) izdkf”kr djrh gSA
[सं. ,y -12012/78/2000-अइअर(ch-I)]
सलोनी, ईृ जनदेिक
New Delhi, the 2nd March, 2026
S.O. 277.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. 154/2002) 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-12012/78/2000- IR(B-I)]
SALONI, Dy. Director
ANNEXURE
In The Central Government Industrial Tribunal Cum Labour Court At Hyderabad
Present: Sri IRFAN QAMAR
Presiding Officer
Dated the 4th day of February, 2026
INDUSTRIAL DISPUTE No. 154/2002
[Old ID No.76/2000 of Industrial Tribunal No. I, Hyderabad]
Between:
Sri K. Nagendra,
R/o 9-3—158, III,
Road Enderamagar,
Uravakonda.
Dist. Anatapur (A.P)
… Petitioner
And
The Dy. General Manager,
State Bank of India,
Zonal Office,
Renigunta Road,
Tirupathi.
…..Respondent
Appearances:
For the Petitioner :
Sri Macherla Rangaiah, Advocate
For the Respondent:
Sri Y. Ranjeeth Reddy, Advocate
AWARD
The Government of India, Ministry of Labour by its order No. L-12012/78/2000-IR(B.I) dated 17.07.2000
referred the following dispute under section 10(1)(d) of the I.D. Act, 1947 to Industrial Tribunal No.I, Hyderabad for
adjudication and later the same has been transferred to this Tribunal bearing ID No.76/2000, as per orders of Central
Government vide Lr.No.H-11026/1/2001-IR(C.II) dated 18.10.2001, requiring this forum to decide the question:
1196
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
SCHEDULE
―Whether the action of the management of State Bank of India, Anantapur Main Branch in terminating
Sri K. Nagendra, Messenger, from the services of the Bank by way of oral orders w.e.f. 31.3.1997 is
justified? If not what relief he is entitled?‖
After receipt of the reference, it was numbered as ID No. 154/2002 and notices were issued to both the Workman and
the management.
2.
Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a bird eye
view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along with the batch
cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference was answered in favour of
the Respondent and against the Workman. That said common award dated 17.5.2005 was challenged by the
aggrieved Workmen in various Writ petition No.6470/2014 along with batch of writ petitions before the Hon‘ble
High Court of Andhra Pradesh and Hon‘ble High Court vide its‘ judgement dated 23.6.2014 allowed all batch of writ
petitions and set aside the common award dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases
by Central Government Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State
Bank of India was directed to reengage the Writ Petitioners in position, which they have been occupying prior to
their termination and further directed to consider their cases for regularization as and when the substantive vacancy
arises. This judgement dated 23.6.2014 of Hon‘ble High Court of AP, passed in WP No.6470/2014 and batch
petitions was challenged by Respondent management before the Hon‘ble High Court in Writ Appeal No. 1268 of
2014. The aforesaid Writ Appeals No.1268/2014 and other Writ Appeals were decided by Division Bench of High
Court of Andhra Pradesh by a common judgement dated 20.3.2019. Hon‘ble High Court in aforesaid Writ Appeal
was pleased to pass the order which is extracted as below:-
“7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting unofficial
Respondents, we see that while the learned single Judge was justified in setting aside the award af the Tribunal, the
proper course to be adopted was to remit all the cases to the Tribunal. This we say for reasons more than one. Firstly,
in such matters, claims have to be decided on individual basis, as different persons have different claims as to the
length of officiation or discharge of duties and functions; quality of engagement, drawings, accounting of the post for
each one of them, who have worked etc. AIl these issues will not be the same in all the cases. Therefore, each case
ought to have been directed to be decided by the Tribunal afresh on individual basis. The second and most important
aspect is the learned single Judge has in one go ordered re-employment of all the workmen. This is not a relief that
could have been granted without answering the individual issues; each issue relating to each case could not have
been decided by the writ Court within the format of its adjudication procedures and scope. The adjudicating body,
which has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain the
order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the further findings
and directions, issued through the impugned order have to go and the individual cases have to be sent back for
consideration of the Tribunal. Such further procedure before the Tribunal will have to be carried forward with the
materials already on record and also by affording an opportunity to the persons, who have claims as well as the
management to place their rival contentions and further material before the Tribunal. The learned counsel appearing
for the workmen are justified in pointing out that enormous delay has already happened and further action by the
Tribunal in this line may be expedited.
9. In the result, these writ appeals are ordered;
(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the common award
dated 17.05.2005 of the Industrial Tribuna!;
(2) the further findings and directions issued through the impugned common order are vacated:
(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an outer limit
of five (5) months from the date of receipt of a copy of this order; and,
(4) the parties to make appearance before the Tribunal on the given date.”
Thus, in view of the above direction of Hon‘ble High Court of Andhra Pradesh in W.A.No.1268 of 2014 and batch
cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it afresh in view of the
aforesaid guidelines laid down by the Hon‘ble High Court in Writ Appeal No.1268/2014 vide judgement dated
20.3.019.
3.
The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement are that,
the Workman joined in the service of the management institution as Messenger from 1990 to 1991, and has rendered
unblemished service spreading over a period of about 2 years. The Respondent has terminated services of Workman
by oral orders with effect from 1.4.1997. Further, it is submitted that the management of Respondent bank decided
to give a chance to temporarily employed personnel ―found suitable for permanent appointment‖ by wait- listing them
by offering permanent appointment or waitlisting till such opportunity arises.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1197
4.
That on 17.11.1987 a settlement was reached between All India State Bank of India Staff Federation and the
Management of State Bank of India - settlement one, under this settlement three categories of employees were
listed. That is, A) those who have completed 240 days in 12 months or less after 1.7.1975. B) those who have
completed 270 days in any continuous block of 36 calendar months after 1.7.1975. C) (i) those who have completed
minimum of 30 days aggregate temporary service in any calendar year after 1.7.1975 or (ii) 70 days aggregate
temporary service in continuous block of 36 months after 1.7.1975.
5.
The persons who satisfied in all the above 4 categories were to be interviewed by a selection committee and
the said selection committee would determine the suitability of the said candidate for permanent appointment.
Therefore, the bank prescribed certain qualifications and from among the candidates satisfying the qualifications the
suitable candidates were enlisted by a selection committee. The Clause 7 of the said agreement provided with the
selected candidate would be wait listed in order of their respective categorization and the selected panel would be
valid upto December, 1991. Clause 10 of the settlement specifically provided that henceforth. ―there will be no
temporary appointments in the subordinate cadre‖, except on a restrictive basis in the specified category, ―from
amongst empanelled candidates as per existing guidelines of the bank‖. The Workman further submits that
consequent upon the said agreement and the draft, a notification was issued in the newspapers. The last date for
responding to the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was
held. A selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was to
be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said letter it is
mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement dated 16.7.88 was
entered into between the parties. In terms of the said agreement a chance was to be given, ―to all eligible temporary
employees for permanent appointments. The appointments were against the vacancies likely to arise during the
years 1995-96, circular made it clear that in view of the enormity of the problem an extension of the currency of the
panel, eligible temporary employees who have been empanelled could not appear in the earlier interviews and have
been pursuing their cases thereafter, ―will be given another chance to appear for interview‖.
6.
Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st
settlement (Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88 is the 3rd
settlement (Ex M3), then settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th settlement
(Ex M6). In between there is minutes of conciliation proceedings dated 9.6.95 marked as Ex M5. That due to all
these settlements which were extended by subsequent settlements thereby created reasonable expectations in the
list of the selected candidates arose with that it‘s a question of time their appointments or services would be
regularized in the services of the bank. The Workman was working with the bank on temporary basis was under
the bonafide hope that sooner his services will be regularized with the bank. He is thereby closed all his options
elsewhere. It is needless to point out that employing person to whom hope of employment in substantial terms was
made is a facet of Article 21 of the Constitution of India.
7.
Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR,
dated 16.8.1990. Under said circular the chief Executives of all public sector banks including the Management herein
were specifically instructed that until the problem of existing temporary employees is fully resolved, no bank is
permitted to make any permanent appointments. That some of the persons similarly situated like this Workman
aggrieved by the inaction on the part of the management of the bank is not regularizing their services from out of the
selected panel and not clearly focusing the vacancy position, filed W.P. No. 4194/97 before Hon‘ble High court of
A.P.. It is specifically averred in the said writ petition that the Management of the bank had failed to implement the
settlement and that it violates the various fundamental rights guaranteed under the constitution of India. The Hon‘ble
High court of A.P .. by order dated 5.3.97 directed the bank to implement the settlement as amended from time to
time. It also directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon‘ble
High Court also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In view of
the directions given by the High Court all candidates whose names appeared in the select panels prepared on the
basis of the agreement entered into on 17.11.87 under which the panel was valid upto December, 1991, and on the
basis of a settlement dated 27.10.1988 whereby the panels were made alive upto 31.3.1997 under which the panel was
valid upto December, 1999. The other agreement dated 16.7.1988 under which the panel was valid upto 1992 and on
the basis of the settlement dated 27.10.1998 whereby the panels were made alive upto 31.3.1997 were under the
bonafide impression that their cases will be considered for regularization and were living on the basis of the said
reasonable expectation. Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to
the settlements entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and
31.3.1997 instructing the various authorities of the Management not to continue the temporary employees those who
are in services of the bank from 1.4.97. The said order was followed by the Management. Aggrieved by the said
action the Workman herein and similarly situated candidates have filed a writ petition before the Hon'ble High Court
and by way of Writ Petition No.9206/97 seeking a declaration that the proceedings issued by the Deputy General
Manager and the Assistant General Manager (Respondents 3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as
illegal and also non-continuance of the Workmen therein in service by absorbing them in the services of the bank as
violative of Section 2(p) and 18(1) read with Rule 58 of Central Rules and sought for specific direction to the bank to
absorb them in service.
1198
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
8.
Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank has
submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies of
circumstances and on account of the urgent need in its banks, it employed temporary employees in subordinate cadre.
It is pertinent to mention that it does not state the urgent or need or the nature of temporary employees that it had
engaged. Enquiry into the same would reveal that the stand taken by the bank either on the ground of urgent need or
of temporary employees is a façade to perpetuate unfair labour practice. It is designed to on the one hand, keep the
employed in the erroneous zone of hope and on the other to ensure that benefits that a model employer will extend
under various statutes to its employees is not required to be borne out by the bank. A reading of the counter affidavit
would show that the bank would opines that being just fair and reasonable are which obviously is reprehensible and is
a facet of unfair labour practice.
9.
The Workman submits that the bank had referred in its counter affidavit to three settlements dated 17.11.87,
16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of Government dated 16.8.90
stated in its counter affidavit that as follows:
"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with regard to
recruitment and absorption of temporary employees in public sector banks. The said guidelines were issued to
implement on the lines of the approach paper on the issue provided by a committee constituted in this regard. The
Government of India guidelines made it clear that all the public sector banks may follow the provisions laid down in
the approach paper.
The approach paper specified that the cases of temporary employees who had put in not less than 240 days of
temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F may be decided by
entering into a settlement with the representative union. In respect of temporary employees who had put in less than
240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the Management
so desired, they could enter into a conciliation settlement with the representative union. Para 6(h), it is mentioned
that only those temporary employees who had put in temporary service of 90 or more days after 1.1 1982 would be
eligible for considering under the scheme. Although the Government guidelines envisaged for a settlement in respect
of employees who had put in temporary service of 90 or more days, the bank by way of further concession entered
into settlements Even in respect of those who had put in less than 90 days. As such, it could be Seen that the
settlements are more beneficial to the temporary employees concerned. The approach paper also specify at para 6(c)
that the banks would provide one time opportunity to all the temporary employees and for that purpose temporary
employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the scheme.
The Respondents have gone further wherein even persons working after 1975 were also considered.
As could be seen from the above, there was a genuine effort on the part of the Respondent bank to provide
permanent employment for as many as possible subject to availability of the vacancies.
It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be one time
exercise in full and final settlement of all the aims and disputes for the past period in respect of temporary workmen
covered by the settlement. This would mean that the Government of India guidelines would cover only those persons
who were temporarily employed for the period specified therein and not otherwise. As such, it is submitted that the
Respondents have not only followed the Government of India guidelines but in fact covered cases of the employees
who had worked for less than 90 days. As such, question of violation does not arise and in any case those were only
broad guidelines and not directives".
10.
The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein there is a
clause to the effect- that the panel of temporary employees and the panel of daily wage employees will be operated to
a particular period. Therefore, their cases will not be considered. The Management herein relying upon this settlement
in their impugned action. It is submitted that even the settlement dated 9.1.1991 will not empower the management
to terminate the services of the temporary employees who are working in the bank services like the Workman herein
as it does not specify the termination of the employees. In fact there are so many vacancies wherein the Management
has engaged several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of
Hon‘ble High Court without considering the cases of the similarly situated candidates like the Workman herein. It is
submitted inspite of engaging fresh candidates as is now being done by the Management they would have continued
the similarly situated candidates like the Workman herein in the services of the bank and consider their cases for
absorption in view of the circulars issued by Central Government as well as the directions of this Hon'ble Court in
Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued by the Central Government, the Management
should not have relied upon the settlement dated 9.1.1991. Hence, the impugned action of the Management is illegal,
unjust, violative of fundamental rights such as Articles 14,16 and 21 of the Constitution of India.
11.
The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where in they
have complained about the non- implementation of the settlements arrived between the parties and sought for
absorption. Such employees in the bank services on permanent basis before the date fixed for carrying out the terms
of settlement, the Court held that the members of the union had been empanelled in the list, they were not regularized
and the time was going to run out to the near future and the Respondent bank and its officers cannot escape from the
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1199
liability of enforcing the settlement which has been reached and therefore directed that the bank and the officers shall
implement the settlement dated 17.11.87 as amended from time to time before the expiry of 31.3.97.
12.
Further, it is submitted that in the clause of Settlement it is specifically mentioned that the workmen to be
absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the date of settlement even the
authorities want to make temporary appointments that should be made only from among the empanelled can be
appointed either for temporary vacancy or permanent vacancy except from among the empanelled candidates like the
Workman and that should be continued till they are absorbed. The management committed unfair labour practices
and terminated the services of the candidates with effect from 1.4.1997 which is arbitrary, discriminatory, contrary to
their own guidelines and violative of the constitutional provisions which are guaranteed in Chapter-III of the
Constitution of India.
13.
The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called
Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the
Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal and unfair
labour practice which cannot be allowed to be perpetuated. That the discontinuance of the Workman after 31.3.97
who had served in the bank in any capacity amounts to retrenchment. It could not have been done without any notice
and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the said action is violative of principles of natural
justice guaranteed under Chapter III of the Constitution of India. This amounts to retrenchment without one month's
notice and taken in view of such notice. Thus, the main proceedings issued by the Respondent is without
jurisdiction and is arbitrary, illegal and therefore liable to be quashed. That the alleged Memorandum of
Understanding dated 27.2.97, Ex.M5 does not own any legal entity, as the said Memorandum of Understanding is
not published anywhere to brought to the notice of the Workman whose rights are being affected. It is submitted that
Management did not adhere to the procedure envisaged by the Central Government in its' instructions dated 16.8.90
in the year 1995. The same was not followed in the year 1997 despite there being vacancies.
The
management has followed the procedure of calling candidates through Employment exchange instead of giving
chance to the empanelled candidates like the Workman here. It is pertinent to mention here that the Respondent
Management sent letters to the all similarly situated candidates like the Workman in the month of June, 1997,
subsequent to the passing of impugned termination orders. After knowing the facts that the candidates are litigating,
the Management refused to engage these candidates. It is once again reiterated that the panels are meant for
absorption but not for termination. It was the duty of the Management to engage the empanelled candidates like the
Workman even in temporary vacancies till they are absorbed permanently in regular vacancies. Hence, the action of
the Respondent Management terminating the services of the Workman by oral order dated 31.3.97 is unjust, illegal,
violative of principles of natural justice and hence, the Management be directed to reinstate and absorb the Workman
and to grant all incidental and consequential benefits.
14.
Per contra, Respondent had filed counter and made a contentions that the reference is not tenable and
contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate staff
constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions imposed by the
Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to engage sub-ordinate staff
like messengers, sweepers, sweeper cum water boys, etc., depending on the availability of work on purely temporary
basis for the smooth and uninterrupted functioning of the branches. It is submitted that the All India State Bank of
India Staff Federation which represents majority of the employees in the State Bank of India comprising about 98% of
the work force as its' members espoused the cause of temporary employees who have put in less than 240 days of
temporary service in 12 calendar months in the bank and who were ineligible for any protection under Industrial
Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.
15.
Discussions were held and on 17.11.1987 an agreement was signed between the federation and the
Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule 58 of
Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be herein after
referred as first settlement is filed and 4 categories were made as it has already been mentioned in the claim statement
above, it need not be repeated here. In the first settlement, it was agreed that the temporary employees as categorized
would be given a chance for being considered for permanent appointment in the bank's service against the vacancies
which are likely to arise during the period 1987 to 1991. On 16.7.88 second settlement was arrived between the
Federation and the Bank whereby it was agreed to substitute the period of consideration of vacancies as 1987 to 1992
in place of 1987 to 1991 as contemplated under the first settlement dated 17.11.1987. This is the second settlement.
A 3rd settlement was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to
arise from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued guidelines to
all the public sector banks with regard to recruitment and absorption of temporary employees in public sector banks.
The said guidelines were issued to implement on the lines of approach paper on the issue provided by a committee
constituted in this regard. Government of India guidelines made it clear that all the public sector banks may follow
the provisions laid down in the approach paper. The approach paper specified that the cases of temporary service in
12 consecutive months and who are entitled to benefit of Sec.25F of the Industrial Disputes Act, 1947 may be decided
by entering into a settlement with the representative union. In respect of temporary employees who had put in less
than 240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the
1200
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
Management so desired they could enter into a conciliation settlement with the representative union. In para. 6(h) it
is mentioned that only those temporary employees who had put in temporary service of 90 days or more days after
1.1.82 would be eligible for considering under the scheme. Although the Government guidelines envisaged for a
settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by way of a
further concession entered into settlements. Even in respect of those who had put in less than 90 days and also the
bank went a step further and said those persons who are working after 1975 were also considered. Hence, there was
a genuine effort on the part of the Respondent bank to provide as many as possible jobs subject to the availability of
the vacancies. However, para 6 (k) of the approach paper made it clear that it is a one time, exercise in full and final,
settlement of all the claims and disputes for the past period, in respect of temporary workmen covered by the
settlement. Another settlement was entered on 9.1.91 herein after referred as 4th settlement and the time limit was
extended upto 1994 and separate panel was prepared for temporary employees, casual/daily wagers. It was agreed that
while vacancies arising between 1988 to 1994 in respect of temporary employees and in respect of casual/daily
wagers, they can be considered for the vacancies arising between 1995-96 only.
16.
It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four Zonal
Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts of Andhra
Pradesh. In terms of the settlement the Management after following the procedure laid down therein prepared the
panels of qualified candidates of temporary employees denoted as 1989 panel and also panel of casual/daily wagers
denoted as 1992 panel for giving a chance for being considered for permanent absorption. These panels were
prepared zone-wise separately for messengers and non-messengers in the descending order of temporary service put
in by the candidates during the stipulated period i.e., 1.7.1975 to 31.7.1988. That the Federation approached the
Regional Labour Commissioner(C) for implementation of bi-partite settlement in respect of absorption of temporary
employees. The Regional Labour Commissioner(C) conducted conciliation proceedings and an agreement was
arrived between the Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of
the conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was arrived
at and an agreement was signed between the Federation and the Management bank on 30.7.1996 under Sec.2 (p) read
with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter called as 5th settlement. That on
27.2.1997 a Memorandum of understanding was also signed by the federation‘s affiliate and the bank Management
recording the fact that the exercise of identifying the messengerial vacancies as on 31.12.1994 has since been
completed by Central Office and thereby 403 messengerial vacancies were sanctioned . It was agreed that these
vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time non-
messengerial staff in the usual manner and the agreement was reached accordingly. It was agreed between the
Federation's affiliate and the Management bank that in terms of the settlement dated 30.7.1996 both the panels of
temporary employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies
were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240 days in a
continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a direction to consider his
candidature for absorption in the Management bank under any rule/law except under the settlement entered into
thereon.
17.
Respondent contended that, in fact, the case of the Workman can be considered under all the five settlements
having got his case considered under provisions of these settlements. All the other provisions and terms of the
settlements are also binding on him/her. The Management bank has not violated any of the provisions of the terms of
the said settlement. That the very preparation and maintenance of panel is in compliance of the terms agreed under
these settlements. These settlements were time bound and they ceased to exist on 31.3.1997. That the bank has never
promised that all the candidates in the panel will be absorbed. In the advertisement itself it was made clear that
candidates will be considered for absorption in the vacancies that may arise upto 1992. Keeping alive the panels after
31.3.1997 is contrary to the settlements arrived between the State Bank of India Staff Federation and the Management
bank. That the settlements are binding on the parties. The Workman is also bound under the terms of the said
settlement. The settlement does not suffer from any ambiguity as their language is very clear. The right under the
settlements is to give them a chance to be considered for future appointment in the bank's services against the
vacancies likely to arise. The settlements were effected to balance the expectations of the temporary employees to be
absorbed in permanent service as against the constitutional rights for all eligible persons to be considered for
employment every time a vacancy arises. That the alleged dispute including the demand for reinstatement has to be
decided in this context. It is submitted that the period of panel list got expired on 31.3.97 and it is an integral term of
the settlement and cannot be modified in any proceedings under the law. These temporary employees who
unfortunately could not be accommodated for want of vacancies have no further rights to be considered for
regularization. That the Hon'ble High Court in WP No.12964/94, held as follows, "It is needless to state that the
settlement arrived at between the All India State Bank of India Staff Federation which, is the majority union and the
bank Management is binding on the Workmen also. It is not at all the case of the Workman that any of the terms of
the settlement has been violated by the bank's Management. If the Workman had worked in the bank on part-time
basis before 31.5.94, that itself would not vest in him a right to claim that his services should be regularized on
permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition is therefore
misconceived and not tenable. However, it is open to the Workman to claim any right which flows from the
settlement between the union and the bank Management. As already pointed out that it is not the grievance of the
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1201
Workman that some right which has flown from the settlement in favour of the Workman has been denied by the bank
Management. Therefore, I do not find any ground, let alone substantial ground, to grant the kind of relief sought for
by the Workman. Writ Petition fails and is accordingly dismissed. No costs."
18.
Further, it is contended that if the panels were not lapsed at the end of designated period and allowed to be
continued it would result in making the contracts of temporary employment indirectly permanent through back door
entry, which would not only be contrary to the settlements but also to Articles 14 and 16 of Constitution of India and
deprive the chances of original claimants who would Come through proper recruitment procedure. As their rights
have been crystallized by operation of the settlements. Hence, there is no question of any Legitimate expectation
being violated.
19.
Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High Court of A.P.
and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA No.86/98 and the batch was
filed and the Division Bench set aside the order of the Single Judge. Thereafter the ex-temporary employees filed
Special Leave Petition No.11886-11888 of 1998 before the Hon'ble Supreme Court of India. The Hon'ble Supreme
Court of India also dismissed the SLP. Therefore, reference to the Judgement of the Learned Single Judge in WP
No.9206/97 is of no consequences as the same has already been set aside. The observations made in the Judgements
cannot be relied upon for any purpose what so ever. The question of operation of Sec.25F would not come into play.
Further the issue is covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High
Courts. Hence, the reference may be ordered that the Workman is not entitled for any relief.
20.
In order to fortify his claim Workman has examined himself as WW1 and also filed documents in evidence
which has been exhibited as Ex.W1 to W3. Further, the Workman has filed photocopies of documents in support of
his claim which are discussed as under:-
Ex.W1 is the notification. Further Ex.W2 is the interview call letter. Ex.W3 is the panel list.
21.
On the other hand, Respondent has examined witness MW1 Sri K. Bala Kotaiah and this witness has
exhibited 12 documents, marked as Ex.M1 to M12. The details of these documents are as follows:-
Ex.M.1 is the Settlement dated 17.11.1987. Ex.M2 is the Settlement dated 16.7.1988. Ex.M3 is the Settlement
dated 27.10.1988. Ex.M4 is the Settlement dated 9.1.1991. Ex.M5 is the Minutes of the conciliation proceedings
dated 9.6.1995. Ex.M6 is the Settlement dated 30.7.1996. Ex.M7 is the Memorandum of Understanding dt.
27.2.1997. Ex.M8 is the Particulars of 1989 Messengerial Panel. Ex.M9 is the Particulars of 1989 Non-
Messengerial Panel. Ex.M10 is the Particulars of 1992 General Attendant Panel. Ex.M11 is the Judgment of
Hon‘ble High Court of A.P. in Writ Appeal No.86/98 dt.1.5.1998. Ex.M12 is the Judgment of Hon‘ble Supreme
Court of India in SLP No. 11886-11888 of 1998 dt.10.8.1998.
22.
Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of various
judgements of Hon‘ble Supreme Court as well as Hon‘ble High Court, which we will discuss at appropriate place in
this Award.
23.
Heard the argument of Learned Counsel for Workman as well as for Respondent.
24.
On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel for both
the parties, following points arise for determination in the industrial dispute :-
I.
Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement dated
27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered into between
State Bank of India and All India State Bank of India Staff Federation and also Memorandum of
Understanding are binding upon both the parties?
II.
Whether the action of State Bank of India, Anantapur Main branch in terminating the services of
Workman Sri K. Nagendra, a Messenger with effect from 31.3.1997 is justified?
III.
Whether the Workman is entitled for absorption on permanent post in the Branch of Respondent
management as per averments made by him in the claim statement?
IV.
To what relief if any the Workman is entitled for?
Findings:-
25.
Point No.I:-Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and 30.7.1996,
minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were executed between the
State Bank of India and All India State Bank of India Staff Federation under section 2(p) and 18 (1) of I.D. Act, 1947
read with Rule 58 of Industrial Disputes (Central Rules), 1957.
Section 2(p) of the Industrial Disputes Act, 1947 as follows:-
(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written
agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding
1202
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof
has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer;
Section 18(1) provides as follows:-
18. Persons on whom settlements and awards are binding.
- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the course of
conciliation proceeding shall be binding on the parties to the agreement.
Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in the
aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman has argued that
the Workman after going through the selection procedure has successfully been listed in the panel for appointment on
the permanent basis in the Respondent management and the empanelled list has to be valid till last person in the
empanelled list is appointed on permanent basis. But the impugned order dated 25.3.97, 27.3.97 and 31.3.97, has been
issued by Respondent management thereby the services of the Workman has been terminated and the said order is not
in consonance of the terms of the agreement entered into between the parties. Further, Workman submits that the
Respondent in the 5th settlement has mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and
that is not binding upon the Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the
aforesaid 5th settlement, is arbitrary and illegal.
26.
The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager, SBI Zonal
Office has issued the letter to all the branches with regard to the subject not to make any temporary appointments in
the Branch in messengerial category from 1.4.1997. The extract of the said letter is given below:-
―We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels of
temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has been decided
by Central Office not to make any temporary appointments in messengerial category from 1.4.1997.‖
Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide letter dated
25.3.1997 has issued direction to all its branches not to make any temporary appointments in messengerial category
from 1.4.1997 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997 as per terms of settlements
entered into by both parties. Further, the contents of the subsequent letter dated 27.3.1997 issued by Respondent
Management is also direction to Branch Manager, State Bank of India not to make any temporary messengerial
category appointment with effect from 1.4.1997 and it has also been communicated to all concerned that the panels
of temporary employees and daily wagers maintained by Zonal offices stand lapsed from 31.1.1997. Further, office
order dated 31.3.1997 has been issued by Respondent management that goes to reveal that the said office order has
been issued to this effect that, ―Consequent on absorption of temporary employees in permanent cadre, it has been
decided by the competent authority that no one onwards, no further daily labour or temporary
employees/appointments should be resorted to/engaged/employed.‖ Therefore, it reflects from the contents of the
aforesaid orders that the temporary appointment in messengerial category and daily labour has been stopped by the
Respondent management with effect from 1.4.1997 because of the lapsed of panel of temporary workers and daily
wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in the 5th settlement
which has been arrived at between the parties on dated 30.7.1996 with the consensus of both the parties. Therefore,
Workman can not challenge the terms and conditions contained in settlement dated 30.7.1996 regarding lapse of
panel on 31.3.1997 as agreed between State Bank of India and State Bank of India Staff Federation. As per provision
contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated 30.7.1996 is binding on both the parties.
In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh..... 1990 II LLJ
510 AP para 414, Hon’ble Court have held:-
―4. There was a settlement between the Management and the workmen under Section 18(1) of the Industrial Disputes
Act on 25th April 1983 under which the age of superannuation of the workmen was fixed at 55 years. The settlement
was to be in force upto 30th June 1986 and the next settlement, incorporating practically the same terms, was again
entered into on 4th February 1987 under Section 18(1) of the Industrial Disputes Act. There is no dispute that these
settlements are under Section 18(1).
14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited jurisdiction. It can
only decide in the first appeal whether a termination by the management is valid or not and is within the parameters
of Section 40 of the Act. The said Authority, in our view, has absolutely no jurisdiction to decide whether a settlement
entered into under Section 18(1) of the Industrial Disputes Act between the representatives of the Workmen and of the
Management, is vitiated by undue influence or misrepresentation or coercion on the part of the Management. The
Authority, namely, the Assistant Commissioner of Labour, was never intended by the A.P. Legislature to have
jurisdiction to go into the question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes
Act by an Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes
Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section 41(1) of the
A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of any such settlements. If
parties to a settlement have a grievance about the validity of a settlement, it is for them to agitate the matter before
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1203
the appropriate forum and they cannot ask an Authority constituted under Section 41(1) of the A.P. Shops and
Establishments Act, 1966 with limited jurisdiction, to go into any such question and, that too, incidentally while
deciding whether retirement as per the contract of employment, is legal or not.”
It is not the case of Workman that aforesaid settlements are vitiated by undue influence or misrepresentation or
coercion on the part of the management. If the Workman feeling aggrieved by any terms of settlement/ agreement on
the aforementioned grounds then he can challenge of settlement before a competent authority under the Act, 1947.
But here in the instant matter it is not a case of Workman that aforementioned settlement has been entered into
between the parties on the ground of undue influence or misrepresentation or coercion. Therefore, Workman is barred
to raise any objection in respect of fixing the date of lapse of both panels on 31.3.1997 as agreed between both the
parties and Workman can not challenge any terms of said Agreement.
Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR 322,
Hon‘ble Supreme Court have held:-
The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call for a finding
at all in view of 1his Court's order. As observed above that was not a correct assumption. On the other hand, we feel
that this view of the Tribunal has led it to approach the matter in an entirely erroneous manner. The Tribunal is,
rightly enough, conscious that under section 18 (1) of the Industrial Disputes Act the settlement was binding on the
company and the members of the 3rd Respondent union. Even so, the Tribunal devoted nearly half of its order in
scanning the evidence given by the company and Respondent No. 3 to find out whether the terms of the settlement had
been explained by the President of the union to the workmen or not and whether the workers voluntarily accepted the
settlement knowing all the "consequences". This to our mind is again an entirely wrong approach.
“When a recognised union negotiates with an employer the workers as individuals do not come into the picture. It is
not necessary that each individual worker should know the implications of the settlement since a recognised union,
which is expected to protect the legitimate interests of labour, enters into a settlement in the best interests of labour.
This would be the normal rule. We cannot altogether rule out exceptional cases where there may be allegations of
mala fides, fraud or even corruption or other induce- ments. Nothing of that kind has been suggested against the
President of the 3rd Respondent in this case. That being the position, prima facie, this is a settlement in the course of
collective bargaining and, therefore, is entitled to due weight and consideration.
It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and others bad.
Unless it can be demonstrated that the objectionable portion is such that it completely outweighs all the other
advantages gained the Court will be slow to hold a settle- ment as unfair and unjust. The settlement has to be
accepted or rejected as a whole and we are unable to reject it as a whole as unfair or unjust. Even before this Court
the 3rd Respondent representing admittedly the large majority of the workmen has stood by this settlement and that is
a strong factor which it is difficult to ignore. As stated elsewhere in the judgment, we cannot also be oblivious of the
fact that all workmen of the company have accepted the settlement. Besides, the period of settlement has since expired
and we are informed that the employer and the 3rd Respondent are negotiating another settlement with further
improvements. These factors, apart from what has been stated above, and the need for industrial peace and harmony
when a union backed by a large majority of workmen has accepted a settlement in the course of collective bargaining
have impelled us not to interfere with this settlement. That being the position, we unhold the settlement as fair and just
and order that the award of the Tribunal shall be substituted by the settlement dated October 18, 1973. The said
settlement shall be the substituted award. The appeal is disposed of accordingly. There will be no order as to costs.”
Therefore, in view of the law laid down by the Hon‘ble Apex Court as discussed above, the contention of the
Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the permanent post vide 5th
Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized union of Workmen has negotiated
with the Respondent Bank Management representing large number of Workmen and the Workman as individual do
not come into picture. Workman in the instant case has work as temporary Workmen in the Respondent Branch and
in response of Notification he had applied for inclusion of his name in the panel and he was selected for inclusion
his name in the panel list to be utilized for absorption of such Workman to permanent post in order of their seniority
in the list. The Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff
Federation under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position
and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is
allowed to lapse. Thus, in view of law laid down by the Hon‘ble Apex Court, in the instant case, Agreement dated
30.7.1996 was entered into between both the parties in respect of lapsing of the both the panels on 31.3.1997 and
absorption of the Workmen from panel list was subject to availability of vacancy of post likely to arise upto
31.3.1997, have a binding force on Workman as well as management of State Bank of India in view of provision
contained under section 18 (1) of I.D. Act, 1947.
Thus, Point No.I is answered against the Workman and in favour of the Respondent.
27.
Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated his
services by oral order on 31.3.1997 without issuing any notice or paying any salary or compensation in lieu thereof.
Therefore, the termination order of the Workman from service is in violation of provision contained Under Section 25
F of I.D. Act, 1947. Therefore, the order is liable to be set aside.
1204
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
28.
On the other hand, Respondent counsel contended that Workman has not worked for 240 days in any
preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context, the Workman
has examined himself as WW1 who has reiterated that Workman has been terminated from service by Respondent on
31.3.1997 without notice of salary or compensation in lieu thereof. Before examining the claim of the Workman on
merit it would be apposite to reproduce the provision contained under section 25 F:-
Section 25F provides:-
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].
Compensation to workmen in case of transfer of undertakings.
Section 25B defines the term continuous service which provides
Definition of continuous service.- For the purposes 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 of 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;
In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from the date of
termination, the initial burden of proof lies upon the Workman and the Workman has to prove this factum by
adducing his oral as well as documentary evidence in support of his claim.
Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the reference of
decisions of Hon‘ble Supreme Court is relevant and the same are discussed below:-
In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:
"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 worked for 240 days in the year
preceding the date of his termination. He has filed an affidavit. It is statement which is in his favor 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 held that the
Workman had worked for 240 days as claimed."
In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "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 was again reiterated in paragraph 11 as follows:
"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 ..‖
In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the Apex
Court held that "the initial burden of proof was on the Workman to show that he had completed 240 days of service."
Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid down the
principle that how to count 240 days of service within one year it is held: "Clause (2)(a) provides for a fiction
to treat a Workman in continuous service for a period of one year despite the fact that he has not rendered
uninterrupted service for a period of one year but he has rendered period of 240 days during the period of 12
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1205
calendar service for months counting backwards and just preceding the relevant date being the date of retrenchment.
In other words, in order to invoke the fiction enacted in clause (2)(a) it is necessary to determine first the relevant
date, ie the date of termination of service which is complained of as retrenchment. After that date is ascertained. move
backward to a period of 12 months just preceding the date of retrenchment and then ascertain whether within the
period of 12 months, the Workman has rendered service for a period of 240 days. If these three facts are affirmatively
answered in favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed
that the Workman is in continuous service for a period of one year and he will satisfy the eligibility qualification
enacted in Section 25-F"
“14. We have already extracted section 25B since its amendment and the change in language is the legislative
exposition of which note must be taken. In fact, we need not further dilate upon this aspect because in Surendra
Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New Delhi and Anr., Chinnappa
Reddy. J., after noticing the amendment and referring to the decision in Sur Enamel and Stamping Works (P)
Ltd case, held as under:
"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman who has
actually worked under the employer for not less than 240 days during a period of twelve months shall be deemed to
have been in continuous service for a period of one year whether or not he has in fact been in such continuous service
for a period of one year. It is enough that he has worked for 240 days in a period of 12 months, it is not necessary that
he should have been in the service of the employer for one whole year."
In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on principle
and on precedent it must be held that section 25B(2) comprehends a situation where a Workman is not in employment
for a period of 12 calendar months, but has rendered service for a period of 240 days within the period of 12
calendar months commencing and counting backwards from the relevant date, i.e. the date of retrenchment. If he has,
he would be deemed to be in continuous service for a period of one year for the purpose of section 25B and
Chapter VA.”
Thus, in view of the law laid down by the Hon‘ble Apex Court as discussed above the initial burden of proof lies
upon the Workman to show that he has completed 240 days of the service with the Respondent just preceding from
the date of his termination. Further, in respect of the employment of calculating the 240 days service in view of the
contents of Section 25-F read with Section 25-B of the I.D. Act, 1947.
29.
Now, in view of the provision contained under Section 25 F and law laid down by the Hon‘ble Apex Court,
we have to examine whether the Workman has discharged his initial burden of proof in respect of his claim of 240
days continuous service in a calendar year just preceding from the date of his termination i.e., 31.3.1997.
In this context, WW1 in his cross examination has stated that,
“I was not sponsored by any employment exchange. I did not undergo regular process of selection for appointment
in the bank..”
“I did not work for 240 days in any year in my entire service.”
Thus, it is clear from the testimony of WW1 that the Workman had not worked for 240 days continuously in any 12
months of a calendar year just preceding from the date of his termination in the Respondent bank. Therefore,
Workman failed to establish his plea by his oral and documentary evidence that he had worked for 240 days
continuously in calendar year just preceding from the date of his termination i.e., 31.3.1997. Thus, the claim of the
Workman that he has been terminated by oral order without issuing notice or payment in lieu after termination, in
contravention of Section 25 F of Industrial Disputes Act, 1947 is not tenable. However the documents filed by the
Workman in support of his claim, number of days worked with the Respondent goes to reveal that the Workman
had worked intermittently as daily wager depending upon availability of work in branch. Workman did not file any
document of appointment letter or salary slips in support of his claim for appointment as a non-messenger in the
Respondent branch on temporary basis.
30.
Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he was
terminated from services is not correct. As the vacancies were filled up on regular basis in order of their respective
seniority the non-engagement of the Workman does not amount to termination. Further, Respondent contended that
no law provide that even though there is no work temporary employee should be continued in the bank work as the
very engagement of Workman was subject to availability of work. Therefore, the allegation that the bank has
indulged in unfair labour practice is incorrect.
31.
Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force in the
argument advanced by the Respondent that in the instant matter, Workman was not terminated from service by order
dated 31.3.1997 rather he was disengaged in view of the non-availability of the work in the branch. Further, there
was direction issued by the Head Office of the Respondent authority not to engage any daily wager Workman/
temporary Worker w.e.f. 1.4.1997. Thus, such disengagement of Workman does not amount to termination.
Moreover, the Workman failed to prove his claim that he was terminated in contravention of provision of Sec.25F of
1206
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
the I.D. Act, 1947 as he failed to establish his plea by any oral or documentary evidence that he had worked for 240
days continuously in a twelve months of calendar year just preceding from date of termination i.e., 31.3.1997.
32.
Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State Bank of
India has issued the letter to Zonal Office with direction to all its branches to this effect that they have been advised
by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of 1989 and daily
wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office not to make any temporary
appointments in messengerial cadre from 1.4.1997, therefore it was directed to issue suitable instructions not to make
temporary appointments from 1.4.1997. There is no mention in this order that the Workman herein has been
terminated from service by this order.
33.
Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial network in
respect of the non-appointment of temporary employees in subordinate cadre and it has directed not to make any
temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has directed to ensure that no
temporary/casual/daily basis appointment of the petty cash. Further, it is directed to all Branch Managers that any
deviation in this regard will be viewed seriously. Thus, these circulars do not reflect that the Workman has been
terminated from service by this order.
34.
Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank by
DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman that he has
been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the service by the Respondent
is not acceptable. The evidence adduced by the Workman clearly goes to reveal that he had worked as a daily wager
for which he has been paid wages according to number of working days. As there was an order for prohibition for
engaging temporary workmen, in the bank, therefore, Workman could not be engaged by the Respondent for work
from 1.4.1997 and there after. It is settled law that the daily wagers are engaged by the employer depending upon
the availability of work and as the work was not available the Workman was not engaged further by the Respondent
management. Therefore, the Workman on the ground of number of days he had worked in the Respondent bank
cannot claim any right to reinstate him into the employment. As the Workman failed to prove the mandatory
condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the
disengagement of Workman from work can not be termed in contravention of provision contained under Sec.25F and
25 B of the I.D. Act, 1947.
Thus, this point is answered against the Workman and in favour of Respondent.
35.
Point No.III:- In this context, the Workman has contended that the management failed to implement the
selected panels during its valid tenure. The management adopted the back door methods contrary to the settlements
and filled up the vacancies. The same is evident from the proceedings dated 18.11.1993 a copy of the same is filed in
the material papers and the same may be read as part of the claim statement. Further, it is submitted that management
has to adhere the procedure issued by the Central Government, the instructions dated 16.8.1990 in the year 1995, but
same was not followed in the year 1997 despite there being vacancies. The management has followed the procedure
of calling candidates through employment exchange instead of giving chance to the empanelled candidates like the
Workman herein. The management sent call letters to the similarly situated candidates like the Workman in the month
of June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are litigating
the issue by way of dispute, the management has refused to engage those candidates, the copies of call letters issued
are filed herein along with claim petition. The Workman herein reiterates that the panels are meant for absorption but
not for termination. In view of the same a duty is cast upon the Respondent management to engage the empanelled
candidates like the Workman herein even in temporary vacancies till they are absorbed permanently in regular
vacancies.
36.
On the other hand, Respondent has contended that the Federation approached Regional Labour
Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of temporary
employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings and agreement was
arrived at between the Federation and the Management bank. It is submitted that it was agreed between the
Federation and the Management that both the panels of temporary employees and daily wagers /casual labour would
be kept alive upto March, 1997 and the vacancies as agreed to under the afore set out settlements will be filled from
both the lists concurrently. A copy of the conciliation proceedings dated 9.6.1995 signed by the parties to the dispute
is filed as a material paper. Further, it is submitted that the settlement was arrived at and an agreement was signed
between the Federation and the Management bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the
Industrial Disputes (Central) Rules 1957 which is binding on the parties. A copy of this agreement which hereinafter
may be referred to as 5th settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996
whereunder the earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it
was agreed to, by the Federation and the Management bank that both the panels of temporary employees and daily
wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies existing/arrived at as on
31.12.1994 as per the norms agreed to between the bank and Federation and that thereafter the said panels would
lapse. It was also agreed that within the framework of the above settlements the modalities about drawing names
from either the panel of temporary employees or the panel of daily wagers and casual labour would be decided
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1207
administratively on circle to circle basis depending upon the local requirements in consultation with the Federation‘s
affiliate by the Circle management. It was further agreed that all messenger real vacancies/positions in the subordinate
cadre including part-time attendants specifically provided as leave reserve will be filled by the end of 31.3.1997.
Further, Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the
Federation‘s affiliate and the bank management regarding the fact that the exercise of identifying the messengerial
vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial vacancies were
sanctioned to the circle of the Management bank and it was agreed that these vacancies may be filled from 1989 panel
of temporary employees after effecting conversion from full time non-messengerial staff in the usual manner and the
agreement was reached upon. Further, it was agreed between the Federations affiliate and the management bank
that in terms of the settlement dated 30.7.1996 both the panels of temporary employees and daily wagers /casual
employees would lapse on 31.3.1997.
37.
The Workman has contended that the empanelled list prepared by the Respondent management for
appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is exhausted by
appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the date fixed for the lapse of
panel. It is undisputed that the date of lapse of empanelled list of Workmen has been fixed to 31.3.1997 as
mentioned in the settlement dated 30.7.1996, and agreed between the parties. It is settled law that and once the life
of panel list lapses on the date as agreed between the parties it cannot be extended beyond that date. In the instant
case the panel list of the workmen was valid upto 31.3.1997 in view of the terms and conditions enumerated in the 5th
Settlement entered into between the parties. As the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of
India and State Bank of India Staff Federation through 5th Settlement, the Workman is not competent to challenge the
same.
In this context I would like to take reference of the decision of the apex court in the case of Syndicate Bank and Ors
vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court have held:-
“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work as
temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government of India in
respect of such temporary appointments, the Calcutta regional office of the appellant Bank issued a circular to all of
its branches on 14.8.1982, instructing all the branches under it to discontinue the old practice from 1.6.1982 and
appoint only empanelled candidates. The regional office was to prepare a panel of eligible candidates, after calling
names from the local/district employment exchange, and split it up branch-wise. Following that new procedure yearly
panels were prepared thereafter. Names of the Respondents were for the first time included in the panel prepared for
the period 7.2.1987 to 6.2.1988. By its letter dated 7.2.1987 the Bank had informed the Respondents that the panel
was valid for one year only and that inclusion of their names in the panel was not to confer on them any right to seek
permanent appointment in the service of the bank. Considering the object with which the panel was prepared and the
fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get any right,
because of inclusion of their names in the said panel, for permanent absorption in the service of the Bank. Whatever
conditional right they had came to an end with the expiry of the panel. The claim of the Respondents, as contained in
the writ petition was thus misconceived and therefore the learned single Judge and the Division Bench, when it first
decided the appeal, were right in dismissing the writ petition and the appeal respectively.”
Thus, in view of the above law laid down by the Hon‘ble Apex Court and in view of the terms and conditions of the
5th Settlement the contention of the Workman that empanelled list should continue even after 31.3.1997 till the last
Workman in the panel is absorbed is not tenable. The contention of the Workman is baseless in view of recital in
the settlement. Therefore, in view of the fore gone discussion and finding given at Point No. I regarding binding
nature of Settlements and terms and conditions enumerated therein, in view of the provision contained u/s.18(1) of the
I.D. Act, 1947, I am of the considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement
dated 30.7.1996 and plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has
no legal force and same is untenable.
38.
Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of India and
State Bank of India Staff Federation and in that settlement it was agreed that both the panels of temporary employees
and daily wagers/ casual employees will be used for filling vacancies existing as on 31.12.1994 as per the norms
agreed between the bank and the Federation. These empanelled workmen were to be given a chance for permanent
appointment in the bank against vacancies arising up to December 1994 whereas the daily wagers/ casual employees
were to be considered against the vacancies arise from January 1995 to December 1996, whereby the said panel
would lapse. It was agreed that the vacancies falls upto 31.3.1997 shall be filled before the empanelled list is
allowed to lapse. Thus, the claim of the Workman to the post of permanent non-messenger in the Respondent
management was subject to the availability of the sanctioned post and vacancies arising upto 31.3.1997. The
workmen given chance to the permanent post were seniors in number of working days in panel list and Workman
herein was junior to those workmen. Therefore, Workman could not be given absorption to permanent post being
junior to other workmen in the panel list.
39.
In this context the Workman witness WW1 was cross examined by the Respondent counsel and in the cross
examination the witness WW1 states:-
1208
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
“I applied in response to the advertisement issued by the bank as per the settlement…. Further, witness states, The
panels were prepared basing upon the number of days of service of the temporary employees. The temporary
employees from the panel were given regular appointment in order of their seniority in the panel…. Further witness
states, No person who had worked for less number of days than me were given appointment in the bank. No junior to
me is continuing in service in the bank.”
Thus, from the above statement of the Workman witness WW1 it is clear that the panel was prepared in terms of
various settlements entered into between Staff Federation of State Bank of India and State Bank of India and it was
prepared on the basis of number of days of work put in by the temporary employees. Further, the Workman himself
admitted that some of the temporary employees whose names were included in the panel were given regular
appointment in the bank in order of their seniority in the panel and he is not having any document to show that any
person who worked for less number of days than the Workman was given appointment in the bank. Therefore, the
allegation of the Workman that the regular appointment has been made by the bank from the panel list in breach of
the terms of the settlement and violation of seniority of panel list is not proved by this evidence of WW1. Thus,
there is no evidence on record that bank has given the appointment to the temporary employees as well as daily
wagers from the panel list 1989 and 1992 in breach of seniority of the temporary employees in the list. There is no
evidence of jumbling in the panel list to make appointment of any permanent Workman in breach of the seniority.
Therefore, I am constrained to hold that the Respondent Management has appointed the workmen from panel list in
order of seniority and there is no jumbling of workmen in the panel list before it got lapsed on 31.3.1997.
40.
However, Workman has taken the plea that the panels of Workmen for absorption in the employment of the
Respondent banks (panels of temporary employees and daily wagers) has been lapsed on 31.3.1997 in contravention
of terms of settlement as the object of preparing the entire empanelment of temporary and daily wagers was to
provide them permanent employment and till the both the panel lists exhausted the panel list cannot be lapsed on
31.3.1997 and the date of lapsing of the panel on 31.3.1997 has been fixed by the Respondent arbitrarily without any
authority.
41.
In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated 30.7.1996
was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial Dispute (Central) Rules
1957. This settlement has been entered into by the competent parties and in this settlement parties thereto agreed
that both the panels of temporary employees and daily wagers/casual employees will lapse on 31.3.1997. Thus the
date of lapse of panel was fixed by both the parties with consensus under the settlement dated 30.7.1996 and same is
binding upon the Workman under the provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding
force of the settlement dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at
finding in Point No.I of this award. However, the legality and validity of the aforementioned settlement has not been
challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of panel
i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of Workman for
his absorption to the permanent post it is settled law that the Workman can not claim his regularization to permanent
post merely on the basis of number of working days.
42.
In this context the reference of the decision of Hon‘ble Supreme Court in the case of Oil and Natural Gas
Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant therein Hon‘ble
Supreme Court have has laid down principle regarding regularization of the Workman on permanent posts. Hon‘ble
Supreme Court have laid down the prepositions of regularization of the workmen to permanent post is as under:-
―(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction to order
regularisation, where such a direction would in the context of public employment offend the provisions contained
in Article 14 of the Constitution;
(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the status of
permanency continues to exist in circumstances where the employer has indulged in an unfair labour practice by not
filling up permanent posts even though such posts are available and by continuing to employ workmen as temporary
or daily wage employees despite their performing the same work as regular workmen on lower wages;
(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no posts are
available, a direction to grant regularisation would be impermissible merely on the basis of the number of years of
service;
(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it would be open
to workmen who have been deprived of the same benefit at par with the workmen who have been regularised to make
a complaint before the Labour or Industrial Court, since the deprivation of the benefit would amount to a violation of
Article 14; and
(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth Schedule of the
ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and continuing them for years,
with the object of depriving them of the benefits payable to permanent workmen.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1209
Thus, in view of the principles laid down by the Hon‘ble Supreme Court as discussed above, in the instant matter the
Workman utterly failed to prove his claim by adducing any documentary or oral evidence that the employer has
indulged in unfair labour practice by not filling the permanent posts even though such posts are available and by
continuing to employ workmen as temporary or daily wage employees despite their performance was the same work,
as regular workmen on lower wages.
43.
Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up from the
panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled. Further, it is
contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997, hence, there is no
occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed to prove contrary by any
evidence to the aforesaid contention of the Respondent that the vacancies were existing as on 31.3.1997 and the
workman was not given absorption to the permanent post in order of his seniority. It is settled law that the power to
create permanent or sanctioned post lies outside the judicial domain and where no posts are available, a direction to
grant regularization would be impermissible merely on the basis of the number of years of service. Therefore, the
claim of the workman on this ground also not acceptable.
44.
Further, as per the of settlement, panel was prepared for absorption of the workmen on the permanent posts
has already been lapsed on 31.3.1997 and the vacancies existing and arising upto 31.12.1994 and upto 31.3.1997 as
settlement dated 30.7.1996 has been filled up from the panel by appointing the workmen as per seniority in the panel
list. Workman witness WW1 in his cross examination has himself admitted this fact that, some of the temporary
employees whose names were included in the panel were given regular appointment in the bank in order of their
seniority in the panel. The Workman failed to show that there was any breach of terms of settlement has been
committed by the Respondent in appointment to permanent post from aforesaid panel list.
45.
As discussed in preceding paragraph of this Award, the life of the panel has not been extended beyond
31.3.1997, by any further settlement hence, the panel list in which name of the Workman was included got expired
on 31.3.1997. It is not the case of the Workman that Respondent has regularized similarly situated workmen either in
the scheme or otherwise and the Workman has been deprived of same benefit on par with those workmen or the
vacancies remained unfilled on the date of lapse of panels i.e., 31.3.1997, Industrial Tribunal has no jurisdiction to
extend the date of lapse of panel i.e., 31.3.1997. This Tribunal can not order for regularization of workmen to the
permanent post in contravention of the provision of Article 14 of the Constitution of India.
In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007 date of
judgement 13.12.2007, Hon‘ble Supreme Court have held:-
“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are governed by a
statute and statutory rules. No appointment can be made by a Local Authority without following the provisions of the
recruitment rules. Any appointment made in violation of the said rules as also the constitutional scheme of equality as
contained in Articles 14 and 16 of the Constitution of India would be a nullity.
9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was permissible, but by
reason thereof an employee cannot claim any right to be permanently absorbed in service or made permanent in
absence of any statute or statutory rules. Merely because an employee has completed 240 days of work in a year
preceding the date of retrenchment, the same would not mean that his services were liable to be regularized.”
Therefore, in view of the law laid down by the Hon‘ble Apex Court, the claim of the Workman for absorption merely
on the basis of number of day of work in the Respondent bank Branch is not acceptable. As regard plea of the
Workman that the Workman should have been given employment even after 31.3.1997 as temporary Workman, it is
the discretion of Respondent to engage the Workman depending upon availability of work and this Tribunal can not
direct the Respondent to engage the Workman in the absent of such rule/scheme.
46.
In view of principle laid down by Hon‘ble Apex Court as discussed above, in the instant matter Workman
utterly failed to establish the fact of rendering continuous service for a period of 240 days of service within a period
of 12 calendar months commencing and coming backward from relevant date i.e., the date of retrenchment, if has he
would be denied to be in continuous service for a period of one year. Therefore, the provision contained under
Sec.25F of retrenchment is not applicable to Workman.
Counsel for Workman has relied upon number of decisions of Hon‘ble High Court and Hon'ble Supreme Court and
few of them are discussed herein:-
In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon‘ble Supreme Court have
held:-
“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to conform to Article
14 of the Constitution of which non-arbitrariness is a significant facet. There is no unfettered discretion in public law:
A public authority possesses powers only to use them for public good. This impose the duty to act fairly and to adopt
a procedure which is `fairplay in action'. Due observance of this obligation as a part of good administration raises a
reasonable or legitimate expectation in every citizen to be treated fairly in his interaction with the State and its
1210
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
instrumentalities, with this element forming a necessary component of the decision making process in all State
actions. To satisfy this requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and
give due weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or else
that unfairness in the exercise of the power may amount to an abuse or excess of power apart from affecting the bona
fides of the decision in a given case. The decision so made would be exposed to challenge on the ground of
arbitrariness. Rule of law does not completely eliminate discretion in the exercise of power, as it is unrealistic, but
providers for control of its exercise by judicial review.”
In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP No.193/1997,
therein Hon‘ble High Court have held,
―Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that it was a
permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his services were not
liable to be terminated and he was to be regularised into service on permanent basis. Shastry award warrants that no
temporary appointment can be made to a permanent post. But the matter is now covered by two division bench
judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in W.A. No.270 of 1982. The ratio decided in the
two judgements is to the effect that there cannot be any mandate to appoint employees on permanent basis when the
requirement was for appointment on temporary basis. But it is held in the said judgements that when a temporary
appointee is ousted from service and not for misconduct and, if again temporary appointment is to be made, then, the
case of such temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of
the Act.”
In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein Hon‘ble
Supreme Court have held:-
“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities must
consider his case for regularization provided he is eligible and qualified according to the rules and his service record
is satisfactory and his appointment does not run counter to the reservation policy of the state.”
In the above cited judgements by the Workman the facts of the case are different hence do not apply to instant case
of Workman.
47.
On the other hand, in support of his contention Respondent has examined witness MW1 and MW1 in chief
examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were entered into between
the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994 for those temporary employees
who has worked on scale wages. Further, MW1 states that two different panels for messengers and non-messengers
as per the eligibility criteria prescribed by the bank. There are four modules in Andhra Pradesh and they are
Hyderabad, Tirupathi, Vijayawada and Visakhapatnam. MW1 states that the temporary employees so empanelled
were given permanent absorption depending upon the vacancies so arise strictly in terms of the settlement. MW1
states that on 9.6.1995 conciliation proceeding was held before the RLC(C), Hyderabad and in said proceedings it
was decided that the panels will be kept live up to 31.3.1997 and vacancies will be filled from both the lists
concurrently. A copy of the said minutes of proceedings is Ex.M5. Further, MW1 states that on 30.7.1996 another
settlement was entered between the SBI and All India SBI Staff Federation providing for filling up of the vacancies
arising up to December 1994 in respect of subordinate cadre and daily wage /casual wage employees out of panel so
prepared were to be considered against vacancies arising from January 1995 to December 1996, thereafter the said
panels lapse. MW1 states that it was also agreed that all the non- messenger positions in subordinate cadre including
part time attendants specially provided as leave reserve will be filled before 31.3.1997 and as regards to non-
messengerial positions it is agreed that all such posts sanctioned and fallen vacant up to 31.3.1997 shall be filled
before the empanelled list is allowed to lapse. Thus in both the cases empanelled list were lapsed on 1.4.1997.
Ex.M6 is the copy of the settlement dated 30.7.1996. Further, witness states that on 27.2.1997 a memorandum of
understanding was reached between the SBI and SBI Staff Federation providing that both the panels above mentioned
will lapse on 31.3.1997. Ex.M7 is the copy of the memorandum of understanding and Ex.M8 is the copy of the
statements giving the particulars of 1989 non-messenger panel, Ex.M9 is the copy of the statement of 1989 non-
messenger panel, Ex.M10 is the copy of statement of 1992 panel. Further, witness states that petitioner was included
in the 1989 panel. As the existing vacancies at that time were exhausted and his turn did not come he could not be
given permanent employment in the bank as per the agreements. All the appointments were made strictly in
accordance with the settlements reached from time to time between SBI and SBI staff federation and as per seniority,
number of days of temporary service put in by them in the bank in the given period. Further, MW1 states petitioner
was not sponsored by any employment exchange he did not undergo the regular process of selection required for
appointment as a regular non-messenger the petitioner has not worked for 240 days in any year in his entire temporary
service in the bank. The petitioner and other temporary employees were terminated from service by the bank.
Further, MW1 states that the vacancies were filled up on regular basis with the temporary employees from the panels
and these panels were expired in terms of the settlements so reached and there were no vacancies to absorb such
employees. Thus, witness MW1 has proved the documents Ex.M1 to Ex.M12 and also contentions made in the
counter. However, MW1 was cross examined by the Petitioner Counsel. But nothing has been elicited in his cross
examination so as to discredit the testimony of the witness MW1 as regards the date of lapse of both the panels on
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1211
31.3.1997 and reasons assigned for non-absorption of the Petitioner from the panel list to the permanent post.
Moreover the witness MW1 was re-examined by the Respondent and the witness MW1 states that panels were
expired in terms of the settlement send absorptions to the extent of the available vacancies were made. There was no
termination of any temporary messenger as such but their services were not utilized after the cut off date as the
available vacancies were already filled up and most of these Petitioners were not in the service of the bank as on the
date of the expiry date of the panels. Therefore, in view of the aforesaid testimony of the MW1 in re-examination in
the absence of cross examination remained uncontraverted, the claim of the Workman that he was entitled for
absorption in permanent post in the branch of Respondent Management on the basis of panel list is found not
established.
This point is answered against the Workman.
48.
Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the Workman is not
entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.
This Point is answered accordingly.
ORDER
In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating the
services of Sri K. Nagendra, Ex. Messenger by way of oral orders w.e.f. 31.3.1997 is justified. Hence, the Petitioner
is not entitled for any relief as prayed for. The claim statement filed by Workman sans merit, hence, dismissed.
Reference is answered accordingly.
Award is passed accordingly. Transmit.
Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed
by me on this the 4th day of February, 2026.
IRFAN QAMAR, Presiding Officer
Appendix of evidence
Witnesses examined for the
Witnesses examined for the
Petitioner
Respondent
WW1: Sri K. Nagendra
MW1: Sri K. Bala Kotaiah
Documents marked for the Petitioner
Ex.W1: Photocopy of News paper advertisement/ notification
Ex.W2: Photocopy of interview call letter
Ex.W3: Photocopy of Panel list
Documents marked for the Respondent
Ex.M1:
Photocopy of settlement between Respondent and All India State Bank of India Staff Federation
dt.17.11.87
Ex.M2:
Photocopy of settlement between Respondent and All India State Bank of India Staff Federation
dt.16.7.88
Ex.M3:
Photocopy of settlement between Respondent and All India State Bank of India Staff Federation
dt.27.10.1988
Ex.M4:
Photocopy of settlement between Respondent and All India State Bank of India Staff Federation
dt.9.1.1991
Ex.M5:
Photocopy of conciliation proceedings before the Regional Labour Commissioner(C) dt.9.6.1995
Ex.M6:
Photocopy of settlement between Respondent and All India State Bank of India Staff Federation
dt.30.7.1996
Ex.M7:
Photocopy of Memorandum of understanding dt. 27.1.1997
Ex.M8:
Photocopy of statements giving the particulars of 1989 messenger panel.
Ex.M9:
Photocopy of statement of 1989 Non-messenger panel
Ex.M10:
Photocopy of statement of 1992 panel
Ex.M11:
Photocopy of order of Hon‘ble High Court in WA No.86/98 dt. 1.5.98
Ex.M12:
Photocopy of order in SLP No.11886-11888 of 1998 dated 10.8.98
1212
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
नइ ददल्ली, 2 मार्च, 2026
का.अ. 278.—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 (a252/2001) izdkf”kr djrh gSA
[सं. ,y -12012/168/2000-अइअर(ch-I)]
सलोनी, ईृ जनदेिक
New Delhi, the 2nd March, 2026
S.O. 278.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. 252/2001) 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-12012/168/2000- IR(B-I)]
SALONI, Dy. Director
ANNEXURE
IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT
HYDERABAD
Present: Sri IRFAN QAMAR
Presiding Officer
Dated the 4th day of February, 2026
INDUSTRIAL DISPUTE No. 252/2001
Between:
Sri T. Srinivasa Rao,
S/o T. Jayalaxmi,
R/o Venternary Hospital Backside,
Gandhi Nagar,
Chirala 523-155.
… Petitioner
And
The Asst. General Manager,
State Bank of India,
Zonal Office Region-III,
Tirupathi.
…..Respondent
Appearances:
For the Petitioner :
Sri Macherla Rangaiah, Advocate
For the Respondent:
Sri Y. Ranjith Reddy, Advocate
AWARD
The Government of India, Ministry of Labour by its order No. L-12012/168/2000-IR(B.I) dated
16.10.2001 referred the following dispute under section 10(1)(d) of the I.D. Act, 1947 to requiring this forum to
decide the question:
SCHEDULE
―Whether the action of the management of State Bank of India, Tirupathi Zone branch in dismissing the
services of Sri T. Srinivasa Rao, Ex-Messenger is justified? If not, what relief the workman is entitled?‖
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1213
After receipt of the reference, it was numbered as ID No. 252/2001 and notices were issued to both the Workman and
the management.
2.
Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a bird eye
view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along with the batch
cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference was answered in favour of
the Respondent and against the Workman. That said common award dated 17.5.2005 was challenged by the
aggrieved Workmen in various Writ petition No.6470/2014 along with batch of writ petitions before the Hon‘ble
High Court of Andhra Pradesh and Hon‘ble High Court vide its‘ judgement dated 23.6.2014 allowed all batch of writ
petitions and set aside the common award dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases
by Central Government Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State
Bank of India was directed to reengage the Writ Petitioners in position, which they have been occupying prior to
their termination and further directed to consider their cases for regularization as and when the substantive vacancy
arises. This judgement dated 23.6.2014 of Hon‘ble High Court of AP, passed in WP No.6470/2014 and batch
petitions was challenged by Respondent management before the Hon‘ble High Court in Writ Appeal No. 1268 of
2014. The aforesaid Writ Appeals No.1268/2014 and other Writ Appeals were decided by Division Bench of High
Court of Andhra Pradesh by a common judgement dated 20.3.2019. Hon‘ble High Court in aforesaid Writ Appeal
was pleased to pass the order which is extracted as below:-
“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting unofficial
Respondents, we see that while the learned single Judge was justified in setting aside the award af the Tribunal, the
proper course to be adopted was to remit all the cases to the Tribunal. This we say for reasons more than one. Firstly,
in such matters, claims have to be decided on individual basis, as different persons have different claims as to the
length of officiation or discharge of duties and functions; quality of engagement, drawings, accounting of the post for
each one of them, who have worked etc. AIl these issues will not be the same in all the cases. Therefore, each case
ought to have been directed to be decided by the Tribunal afresh on individual basis. The second and most important
aspect is the learned single Judge has in one go ordered re-employment of all the workmen. This is not a relief that
could have been granted without answering the individual issues; each issue relating to each case could not have
been decided by the writ Court within the format of its adjudication procedures and scope. The adjudicating body,
which has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain the
order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the further findings
and directions, issued through the impugned order have to go and the individual cases have to be sent back for
consideration of the Tribunal. Such further procedure before the Tribunal will have to be carried forward with the
materials already on record and also by affording an opportunity to the persons, who have claims as well as the
management to place their rival contentions and further material before the Tribunal. The learned counsel appearing
for the workmen are justified in pointing out that enormous delay has already happened and further action by the
Tribunal in this line may be expedited.
9. In the result, these writ appeals are ordered;
(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the common award
dated 17.05.2005 of the Industrial Tribuna!;
(2) the further findings and directions issued through the impugned common order are vacated:
(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an outer limit
of five (5) months from the date of receipt of a copy of this order; and,
(4) the parties to make appearance before the Tribunal on the given date.”
Thus, in view of the above direction of Hon‘ble High Court of Andhra Pradesh in W.A.No.1268 of 2014 and batch
cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it afresh in view of the
aforesaid guidelines laid down by the Hon‘ble High Court in Writ Appeal No.1268/2014 vide judgement dated
20.3.019.
3.
The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement are that,
the Workman joined in the service of the management institution as Messenger from 1986 to 1989, and has rendered
unblemished service spreading over a period of about 3 years. The Respondent has terminated services of Workman
by oral orders with effect from 1.4.1997. Further, it is submitted that the management of Respondent bank decided
to give a chance to temporarily employed personnel ―found suitable for permanent appointment‖ by wait- listing them
by offering permanent appointment or waitlisting till such opportunity arises.
4.
That on 17.11.1987 a settlement was reached between All India State Bank of India Staff Federation and the
Management of State Bank of India - settlement one, under this settlement three categories of employees were
listed. That is, A) those who have completed 240 days in 12 months or less after 1.7.1975. B) those who have
completed 270 days in any continuous block of 36 calendar months after 1.7.1975. C) (i) those who have completed
minimum of 30 days aggregate temporary service in any calendar year after 1.7.1975 or (ii) 70 days aggregate
temporary service in continuous block of 36 months after 1.7.1975.
1214
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
5.
The persons who satisfied in all the above 4 categories were to be interviewed by a selection committee and
the said selection committee would determine the suitability of the said candidate for permanent appointment.
Therefore, the bank prescribed certain qualifications and from among the candidates satisfying the qualifications the
suitable candidates were enlisted by a selection committee. The Clause 7 of the said agreement provided with the
selected candidate would be wait listed in order of their respective categorization and the selected panel would be
valid upto December, 1991. Clause 10 of the settlement specifically provided that henceforth. ―there will be no
temporary appointments in the subordinate cadre‖, except on a restrictive basis in the specified category, ―from
amongst empanelled candidates as per existing guidelines of the bank‖. The Workman further submits that
consequent upon the said agreement and the draft, a notification was issued in the newspapers. The last date for
responding to the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was
held. A selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was to
be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said letter it is
mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement dated 16.7.88 was
entered into between the parties. In terms of the said agreement a chance was to be given, ―to all eligible temporary
employees for permanent appointments. The appointments were against the vacancies likely to arise during the
years 1995-96, circular made it clear that in view of the enormity of the problem an extension of the currency of the
panel, eligible temporary employees who have been empanelled could not appear in the earlier interviews and have
been pursuing their cases thereafter, ―will be given another chance to appear for interview‖.
6.
Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st settlement
(Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88 is the 3rd settlement (Ex
M3), then settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th settlement (Ex M6). In
between there is minutes of conciliation proceedings dated 9.6.95 marked as Ex M5. That due to all these
settlements which were extended by subsequent settlements thereby created reasonable expectations in the list of
the selected candidates arose with that it‘s a question of time their appointments or services would be regularized in
the services of the bank. The Workman was working with the bank on temporary basis was under the bonafide
hope that sooner his services will be regularized with the bank. He is thereby closed all his options elsewhere. It is
needless to point out that employing person to whom hope of employment in substantial terms was made is a facet of
Article 21 of the Constitution of India.
7.
Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR, dated
16.8.1990. Under said circular the chief Executives of all public sector banks including the Management herein were
specifically instructed that until the problem of existing temporary employees is fully resolved, no bank is permitted
to make any permanent appointments. That some of the persons similarly situated like this Workman aggrieved by
the inaction on the part of the management of the bank is not regularizing their services from out of the selected panel
and not clearly focusing the vacancy position, filed W.P. No. 4194/97 before Hon‘ble High court of A.P.. It is
specifically averred in the said writ petition that the Management of the bank had failed to implement the settlement
and that it violates the various fundamental rights guaranteed under the constitution of India. The Hon‘ble High
court of A.P .. by order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It
also directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon‘ble High
Court also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In view of the
directions given by the High Court all candidates whose names appeared in the select panels prepared on the basis of
the agreement entered into on 17.11.87 under which the panel was valid upto December, 1991, and on the basis of a
settlement dated 27.10.1988 whereby the panels were made alive upto 31.3.1997 under which the panel was valid
upto December, 1999. The other agreement dated 16.7.1988 under which the panel was valid upto 1992 and on the
basis of the settlement dated 27.10.1998 whereby the panels were made alive upto 31.3.1997 were under the bonafide
impression that their cases will be considered for regularization and were living on the basis of the said reasonable
expectation. Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the
settlements entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and
31.3.1997 instructing the various authorities of the Management not to continue the temporary employees those who
are in services of the bank from 1.4.97. The said order was followed by the Management. Aggrieved by the said
action the Workman herein and similarly situated candidates have filed a writ petition before the Hon'ble High Court
and by way of Writ Petition No.9206/97 seeking a declaration that the proceedings issued by the Deputy General
Manager and the Assistant General Manager (Respondents 3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as
illegal and also non-continuance of the Workmen therein in service by absorbing them in the services of the bank as
violative of Section 2(p) and 18(1) read with Rule 58 of Central Rules and sought for specific direction to the bank to
absorb them in service.
8.
Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank has
submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies of
circumstances and on account of the urgent need in its banks, it employed temporary employees in subordinate cadre.
It is pertinent to mention that it does not state the urgent or need or the nature of temporary employees that it had
engaged. Enquiry into the same would reveal that the stand taken by the bank either on the ground of urgent need or
of temporary employees is a façade to perpetuate unfair labour practice. It is designed to on the one hand, keep the
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1215
employed in the erroneous zone of hope and on the other to ensure that benefits that a model employer will extend
under various statutes to its employees is not required to be borne out by the bank. A reading of the counter affidavit
would show that the bank would opines that being just fair and reasonable are which obviously is reprehensible and is
a facet of unfair labour practice.
9.
The Workman submits that the bank had referred in its counter affidavit to three settlements dated 17.11.87,
16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of Government dated 16.8.90
stated in its counter affidavit that as follows:
"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with regard to
recruitment and absorption of temporary employees in public sector banks. The said guidelines were issued to
implement on the lines of the approach paper on the issue provided by a committee constituted in this regard. The
Government of India guidelines made it clear that all the public sector banks may follow the provisions laid down in
the approach paper.
The approach paper specified that the cases of temporary employees who had put in not less than 240 days of
temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F may be decided by
entering into a settlement with the representative union. In respect of temporary employees who had put in less than
240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the Management
so desired, they could enter into a conciliation settlement with the representative union. Para 6(h), it is mentioned
that only those temporary employees who had put in temporary service of 90 or more days after 1.1 1982 would be
eligible for considering under the scheme. Although the Government guidelines envisaged for a settlement in respect
of employees who had put in temporary service of 90 or more days, the bank by way of further concession entered
into settlements Even in respect of those who had put in less than 90 days. As such, it could be Seen that the
settlements are more beneficial to the temporary employees concerned. The approach paper also specify at para 6(c)
that the banks would provide one time opportunity to all the temporary employees and for that purpose temporary
employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the scheme.
The Respondents have gone further wherein even persons working after 1975 were also considered.
As could be seen from the above, there was a genuine effort on the part of the Respondent bank to provide
permanent employment for as many as possible subject to availability of the vacancies.
It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be one time
exercise in full and final settlement of all the aims and disputes for the past period in respect of temporary workmen
covered by the settlement. This would mean that the Government of India guidelines would cover only those persons
who were temporarily employed for the period specified therein and not otherwise. As such, it is submitted that the
Respondents have not only followed the Government of India guidelines but in fact covered cases of the employees
who had worked for less than 90 days. As such, question of violation does not arise and in any case those were only
broad guidelines and not directives".
10.
The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein there is a
clause to the effect- that the panel of temporary employees and the panel of daily wage employees will be operated to
a particular period. Therefore, their cases will not be considered. The Management herein relying upon this settlement
in their impugned action. It is submitted that even the settlement dated 9.1.1991 will not empower the management
to terminate the services of the temporary employees who are working in the bank services like the Workman herein
as it does not specify the termination of the employees. In fact there are so many vacancies wherein the Management
has engaged several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of
Hon‘ble High Court without considering the cases of the similarly situated candidates like the Workman herein. It is
submitted inspite of engaging fresh candidates as is now being done by the Management they would have continued
the similarly situated candidates like the Workman herein in the services of the bank and consider their cases for
absorption in view of the circulars issued by Central Government as well as the directions of this Hon'ble Court in
Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued by the Central Government, the Management
should not have relied upon the settlement dated 9.1.1991. Hence, the impugned action of the Management is illegal,
unjust, violative of fundamental rights such as Articles 14,16 and 21 of the Constitution of India.
11.
The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where in they
have complained about the non- implementation of the settlements arrived between the parties and sought for
absorption. Such employees in the bank services on permanent basis before the date fixed for carrying out the terms
of settlement, the Court held that the members of the union had been empanelled in the list, they were not regularized
and the time was going to run out to the near future and the Respondent bank and its officers cannot escape from the
liability of enforcing the settlement which has been reached and therefore directed that the bank and the officers shall
implement the settlement dated 17.11.87 as amended from time to time before the expiry of 31.3.97.
12.
Further, it is submitted that in the clause of Settlement it is specifically mentioned that the workmen to be
absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the date of settlement even the
authorities want to make temporary appointments that should be made only from among the empanelled can be
appointed either for temporary vacancy or permanent vacancy except from among the empanelled candidates like the
1216
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
Workman and that should be continued till they are absorbed. The management committed unfair labour practices
and terminated the services of the candidates with effect from 1.4.1997 which is arbitrary, discriminatory, contrary to
their own guidelines and violative of the constitutional provisions which are guaranteed in Chapter-III of the
Constitution of India.
13.
The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called
Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the
Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal and unfair
labour practice which cannot be allowed to be perpetuated. That the discontinuance of the Workman after 31.3.97
who had served in the bank in any capacity amounts to retrenchment. It could not have been done without any notice
and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the said action is violative of principles of natural
justice guaranteed under Chapter III of the Constitution of India. This amounts to retrenchment without one month's
notice and taken in view of such notice. Thus, the main proceedings issued by the Respondent is without
jurisdiction and is arbitrary, illegal and therefore liable to be quashed. That the alleged Memorandum of
Understanding dated 27.2.97, Ex.M5 does not own any legal entity, as the said Memorandum of Understanding is
not published anywhere to brought to the notice of the Workman whose rights are being affected. It is submitted that
Management did not adhere to the procedure envisaged by the Central Government in its' instructions dated 16.8.90
in the year 1995. The same was not followed in the year 1997 despite there being vacancies.
The
management has followed the procedure of calling candidates through Employment exchange instead of giving
chance to the empanelled candidates like the Workman here. It is pertinent to mention here that the Respondent
Management sent letters to the all similarly situated candidates like the Workman in the month of June, 1997,
subsequent to the passing of impugned termination orders. After knowing the facts that the candidates are litigating,
the Management refused to engage these candidates. It is once again reiterated that the panels are meant for
absorption but not for termination. It was the duty of the Management to engage the empanelled candidates like the
Workman even in temporary vacancies till they are absorbed permanently in regular vacancies. Hence, the action of
the Respondent Management terminating the services of the Workman by oral order dated 31.3.97 is unjust, illegal,
violative of principles of natural justice and hence, the Management be directed to reinstate and absorb the Workman
and to grant all incidental and consequential benefits.
14.
Per contra, Respondent had filed counter and made a contentions that the reference is not tenable and
contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate staff
constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions imposed by the
Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to engage sub-ordinate staff
like messengers, sweepers, sweeper cum water boys, etc., depending on the availability of work on purely temporary
basis for the smooth and uninterrupted functioning of the branches. It is submitted that the All India State Bank of
India Staff Federation which represents majority of the employees in the State Bank of India comprising about 98% of
the work force as its' members espoused the cause of temporary employees who have put in less than 240 days of
temporary service in 12 calendar months in the bank and who were ineligible for any protection under Industrial
Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.
15.
Discussions were held and on 17.11.1987 an agreement was signed between the federation and the
Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule 58 of
Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be herein after
referred as first settlement is filed and 4 categories were made as it has already been mentioned in the claim statement
above, it need not be repeated here. In the first settlement, it was agreed that the temporary employees as categorized
would be given a chance for being considered for permanent appointment in the bank's service against the vacancies
which are likely to arise during the period 1987 to 1991. On 16.7.88 second settlement was arrived between the
Federation and the Bank whereby it was agreed to substitute the period of consideration of vacancies as 1987 to 1992
in place of 1987 to 1991 as contemplated under the first settlement dated 17.11.1987. This is the second settlement.
A 3rd settlement was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to
arise from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued guidelines to
all the public sector banks with regard to recruitment and absorption of temporary employees in public sector banks.
The said guidelines were issued to implement on the lines of approach paper on the issue provided by a committee
constituted in this regard. Government of India guidelines made it clear that all the public sector banks may follow
the provisions laid down in the approach paper. The approach paper specified that the cases of temporary service in
12 consecutive months and who are entitled to benefit of Sec.25F of the Industrial Disputes Act, 1947 may be decided
by entering into a settlement with the representative union. In respect of temporary employees who had put in less
than 240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the
Management so desired they could enter into a conciliation settlement with the representative union. In para. 6(h) it
is mentioned that only those temporary employees who had put in temporary service of 90 days or more days after
1.1.82 would be eligible for considering under the scheme. Although the Government guidelines envisaged for a
settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by way of a
further concession entered into settlements. Even in respect of those who had put in less than 90 days and also the
bank went a step further and said those persons who are working after 1975 were also considered. Hence, there was
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1217
a genuine effort on the part of the Respondent bank to provide as many as possible jobs subject to the availability of
the vacancies. However, para 6 (k) of the approach paper made it clear that it is a one time, exercise in full and final,
settlement of all the claims and disputes for the past period, in respect of temporary workmen covered by the
settlement. Another settlement was entered on 9.1.91 herein after referred as 4th settlement and the time limit was
extended upto 1994 and separate panel was prepared for temporary employees, casual/daily wagers. It was agreed that
while vacancies arising between 1988 to 1994 in respect of temporary employees and in respect of casual/daily
wagers, they can be considered for the vacancies arising between 1995-96 only.
16.
It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four Zonal
Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts of Andhra
Pradesh. In terms of the settlement the Management after following the procedure laid down therein prepared the
panels of qualified candidates of temporary employees denoted as 1989 panel and also panel of casual/daily wagers
denoted as 1992 panel for giving a chance for being considered for permanent absorption. These panels were
prepared zone-wise separately for messengers and non-messengers in the descending order of temporary service put
in by the candidates during the stipulated period i.e., 1.7.1975 to 31.7.1988. That the Federation approached the
Regional Labour Commissioner(C) for implementation of bi-partite settlement in respect of absorption of temporary
employees. The Regional Labour Commissioner(C) conducted conciliation proceedings and an agreement was
arrived between the Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of
the conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was arrived
at and an agreement was signed between the Federation and the Management bank on 30.7.1996 under Sec.2 (p) read
with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter called as 5th settlement. That on
27.2.1997 a Memorandum of understanding was also signed by the federation‘s affiliate and the bank Management
recording the fact that the exercise of identifying the messengerial vacancies as on 31.12.1994 has since been
completed by Central Office and thereby 403 messengerial vacancies were sanctioned . It was agreed that these
vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time non-
messengerial staff in the usual manner and the agreement was reached accordingly. It was agreed between the
Federation's affiliate and the Management bank that in terms of the settlement dated 30.7.1996 both the panels of
temporary employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies
were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240 days in a
continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a direction to consider his
candidature for absorption in the Management bank under any rule/law except under the settlement entered into
thereon.
17.
Respondent contended that, in fact, the case of the Workman can be considered under all the five settlements
having got his case considered under provisions of these settlements. All the other provisions and terms of the
settlements are also binding on him/her. The Management bank has not violated any of the provisions of the terms of
the said settlement. That the very preparation and maintenance of panel is in compliance of the terms agreed under
these settlements. These settlements were time bound and they ceased to exist on 31.3.1997. That the bank has never
promised that all the candidates in the panel will be absorbed. In the advertisement itself it was made clear that
candidates will be considered for absorption in the vacancies that may arise upto 1992. Keeping alive the panels after
31.3.1997 is contrary to the settlements arrived between the State Bank of India Staff Federation and the Management
bank. That the settlements are binding on the parties. The Workman is also bound under the terms of the said
settlement. The settlement does not suffer from any ambiguity as their language is very clear. The right under the
settlements is to give them a chance to be considered for future appointment in the bank's services against the
vacancies likely to arise. The settlements were effected to balance the expectations of the temporary employees to be
absorbed in permanent service as against the constitutional rights for all eligible persons to be considered for
employment every time a vacancy arises. That the alleged dispute including the demand for reinstatement has to be
decided in this context. It is submitted that the period of panel list got expired on 31.3.97 and it is an integral term of
the settlement and cannot be modified in any proceedings under the law. These temporary employees who
unfortunately could not be accommodated for want of vacancies have no further rights to be considered for
regularization. That the Hon'ble High Court in WP No.12964/94, held as follows, "It is needless to state that the
settlement arrived at between the All India State Bank of India Staff Federation which, is the majority union and the
bank Management is binding on the Workmen also. It is not at all the case of the Workman that any of the terms of
the settlement has been violated by the bank's Management. If the Workman had worked in the bank on part-time
basis before 31.5.94, that itself would not vest in him a right to claim that his services should be regularized on
permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition is therefore
misconceived and not tenable. However, it is open to the Workman to claim any right which flows from the
settlement between the union and the bank Management. As already pointed out that it is not the grievance of the
Workman that some right which has flown from the settlement in favour of the Workman has been denied by the bank
Management. Therefore, I do not find any ground, let alone substantial ground, to grant the kind of relief sought for
by the Workman. Writ Petition fails and is accordingly dismissed. No costs."
18.
Further, it is contended that if the panels were not lapsed at the end of designated period and allowed to be
continued it would result in making the contracts of temporary employment indirectly permanent through back door
1218
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
entry, which would not only be contrary to the settlements but also to Articles 14 and 16 of Constitution of India and
deprive the chances of original claimants who would Come through proper recruitment procedure. As their rights
have been crystallized by operation of the settlements. Hence, there is no question of any Legitimate expectation
being violated.
19.
Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High Court of A.P.
and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA No.86/98 and the batch was
filed and the Division Bench set aside the order of the Single Judge. Thereafter the ex-temporary employees filed
Special Leave Petition No.11886-11888 of 1998 before the Hon'ble Supreme Court of India. The Hon'ble Supreme
Court of India also dismissed the SLP. Therefore, reference to the Judgement of the Learned Single Judge in WP
No.9206/97 is of no consequences as the same has already been set aside. The observations made in the Judgements
cannot be relied upon for any purpose what so ever. The question of operation of Sec.25F would not come into play.
Further the issue is covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High
Courts. Hence, the reference may be ordered that the Workman is not entitled for any relief.
20.
In order to fortify his claim Workman has examined himself as WW1 and also filed documents in evidence
which has been exhibited as Ex.W1 to W5. Further, the Workman has filed photocopies of documents in support of
his claim which are discussed as under:-
Ex.W1 is the Marks memo of Petitioner . Further Ex.W2 is the Service certificate. Ex.W3 is the Call letter for
interview. Ex.W4 is the Panel list. Ex. W5 is the minutes of the conciliation proceedings on 15.03.2001.
21.
On the other hand, Respondent has examined witness MW1 Sri K. Bala Kotaiah and this witness has
exhibited 12 documents, marked as Ex.M1 to M12. The details of these documents are as follows:-
Ex.M.1 is the Settlement dated 17.11.1987. Ex.M2 is the Settlement dated 16.7.1988. Ex.M3 is the Settlement
dated 27.10.1988. Ex.M4 is the Settlement dated 9.1.1991. Ex.M5 is the Minutes of the conciliation proceedings
dated 9.6.1995. Ex.M6 is the Settlement dated 30.7.1996. Ex.M7 is the Memorandum of Understanding dt.
27.2.1997. Ex.M8 is the Particulars of 1989 Messengerial Panel. Ex.M9 is the Particulars of 1989 Non-
Messengerial Panel. Ex.M10 is the Particulars of 1992 General Attendant Panel. Ex.M11 is the Judgment of
Hon‘ble High Court of A.P. in Writ Appeal No.86/98 dt.1.5.1998. Ex.M12 is the Judgment of Hon‘ble Supreme
Court of India in SLP No. 11886-11888 of 1998 dt.10.8.1998.
22.
Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of various
judgements of Hon‘ble Supreme Court as well as Hon‘ble High Court, which we will discuss at appropriate place in
this Award.
23.
Heard the argument of Learned Counsel for Workman as well as for Respondent.
24.
On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel for both
the parties, following points arise for determination in the industrial dispute :-
I.
Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement dated
27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered into between
State Bank of India and All India State Bank of India Staff Federation and also Memorandum of
Understanding are binding upon both the parties?
II.
Whether the action of State Bank of India, Tirupathi Zone in dismissing the services of Workman
Sri T. Srinivasa Rao, a Messenger with effect from 31.3.1997 is justified?
III.
Whether the Workman is entitled for absorption on permanent post in the Branch of Respondent
management as per averments made by him in the claim statement?
IV.
To what relief if any the Workman is entitled for?
Findings:-
25.
Point No.I:- Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and 30.7.1996,
minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were executed between the
State Bank of India and All India State Bank of India Staff Federation under section 2(p) and 18 (1) of I.D. Act, 1947
read with Rule 58 of Industrial Disputes (Central Rules), 1957.
Section 2(p) of the Industrial Disputes Act, 1947 as follows:-
(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written
agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding
where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof
has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer;
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1219
Section 18(1) provides as follows:-
18. Persons on whom settlements and awards are binding.
- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the course of
conciliation proceeding shall be binding on the parties to the agreement.
Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in the
aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman has argued that
the Workman after going through the selection procedure has successfully been listed in the panel for appointment on
the permanent basis in the Respondent management and the empanelled list has to be valid till last person in the
empanelled list is appointed on permanent basis. But the impugned order dated 25.3.97, 27.3.97 and 31.3.97, has been
issued by Respondent management thereby the services of the Workman has been terminated and the said order is not
in consonance of the terms of the agreement entered into between the parties. Further, Workman submits that the
Respondent in the 5th settlement has mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and
that is not binding upon the Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the
aforesaid 5th settlement, is arbitrary and illegal.
26.
The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager, SBI Zonal
Office has issued the letter to all the branches with regard to the subject not to make any temporary appointments in
the Branch in messengerial category from 1.4.1997. The extract of the said letter is given below:-
―We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels of
temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has been decided
by Central Office not to make any temporary appointments in messengerial category from 1.4.1997.‖
Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide letter dated
25.3.1997 has issued direction to all its branches not to make any temporary appointments in messengerial category
from 1.4.1997 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997 as per terms of settlements
entered into by both parties. Further, the contents of the subsequent letter dated 27.3.1997 issued by Respondent
Management is also direction to Branch Manager, State Bank of India not to make any temporary messengerial
category appointment with effect from 1.4.1997 and it has also been communicated to all concerned that the panels
of temporary employees and daily wagers maintained by Zonal offices stand lapsed from 31.1.1997. Further, office
order dated 31.3.1997 has been issued by Respondent management that goes to reveal that the said office order has
been issued to this effect that, ―Consequent on absorption of temporary employees in permanent cadre, it has been
decided by the competent authority that no one onwards, no further daily labour or temporary
employees/appointments should be resorted to/engaged/employed.‖ Therefore, it reflects from the contents of the
aforesaid orders that the temporary appointment in messengerial category and daily labour has been stopped by the
Respondent management with effect from 1.4.1997 because of the lapsed of panel of temporary workers and daily
wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in the 5th settlement
which has been arrived at between the parties on dated 30.7.1996 with the consensus of both the parties. Therefore,
Workman can not challenge the terms and conditions contained in settlement dated 30.7.1996 regarding lapse of
panel on 31.3.1997 as agreed between State Bank of India and State Bank of India Staff Federation. As per provision
contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated 30.7.1996 is binding on both the parties.
In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh..... 1990 II LLJ
510 AP para 414, Hon’ble Court have held:-
―4. There was a settlement between the Management and the workmen under Section 18(1) of the Industrial Disputes
Act on 25th April 1983 under which the age of superannuation of the workmen was fixed at 55 years. The settlement
was to be in force upto 30th June 1986 and the next settlement, incorporating practically the same terms, was again
entered into on 4th February 1987 under Section 18(1) of the Industrial Disputes Act. There is no dispute that these
settlements are under Section 18(1).
14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited jurisdiction. It can
only decide in the first appeal whether a termination by the management is valid or not and is within the parameters
of Section 40 of the Act. The said Authority, in our view, has absolutely no jurisdiction to decide whether a settlement
entered into under Section 18(1) of the Industrial Disputes Act between the representatives of the Workmen and of the
Management, is vitiated by undue influence or misrepresentation or coercion on the part of the Management. The
Authority, namely, the Assistant Commissioner of Labour, was never intended by the A.P. Legislature to have
jurisdiction to go into the question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes
Act by an Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes
Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section 41(1) of the
A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of any such settlements. If
parties to a settlement have a grievance about the validity of a settlement, it is for them to agitate the matter before
the appropriate forum and they cannot ask an Authority constituted under Section 41(1) of the A.P. Shops and
Establishments Act, 1966 with limited jurisdiction, to go into any such question and, that too, incidentally while
1220
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
deciding whether retirement as per the contract of employment, is legal or not.”
It is not the case of Workman that aforesaid settlements are vitiated by undue influence or misrepresentation or
coercion on the part of the management. If the Workman feeling aggrieved by any terms of settlement/ agreement on
the aforementioned grounds then he can challenge of settlement before a competent authority under the Act, 1947.
But here in the instant matter it is not a case of Workman that aforementioned settlement has been entered into
between the parties on the ground of undue influence or misrepresentation or coercion. Therefore, Workman is barred
to raise any objection in respect of fixing the date of lapse of both panels on 31.3.1997 as agreed between both the
parties and Workman can not challenge any terms of said Agreement.
Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR 322,
Hon‘ble Supreme Court have held:-
The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call for a finding
at all in view of 1his Court's order. As observed above that was not a correct assumption. On the other hand, we feel
that this view of the Tribunal has led it to approach the matter in an entirely erroneous manner. The Tribunal is,
rightly enough, conscious that under section 18 (1) of the Industrial Disputes Act the settlement was binding on the
company and the members of the 3rd Respondent union. Even so, the Tribunal devoted nearly half of its order in
scanning the evidence given by the company and Respondent No. 3 to find out whether the terms of the settlement had
been explained by the President of the union to the workmen or not and whether the workers voluntarily accepted the
settlement knowing all the "consequences". This to our mind is again an entirely wrong approach.
“When a recognised union negotiates with an employer the workers as individuals do not come into the picture. It is
not necessary that each individual worker should know the implications of the settlement since a recognised union,
which is expected to protect the legitimate interests of labour, enters into a settlement in the best interests of labour.
This would be the normal rule. We cannot altogether rule out exceptional cases where there may be allegations of
mala fides, fraud or even corruption or other induce- ments. Nothing of that kind has been suggested against the
President of the 3rd Respondent in this case. That being the position, prima facie, this is a settlement in the course of
collective bargaining and, therefore, is entitled to due weight and consideration.
It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and others bad.
Unless it can be demonstrated that the objectionable portion is such that it completely outweighs all the other
advantages gained the Court will be slow to hold a settle- ment as unfair and unjust. The settlement has to be
accepted or rejected as a whole and we are unable to reject it as a whole as unfair or unjust. Even before this Court
the 3rd Respondent representing admittedly the large majority of the workmen has stood by this settlement and that is
a strong factor which it is difficult to ignore. As stated elsewhere in the judgment, we cannot also be oblivious of the
fact that all workmen of the company have accepted the settlement. Besides, the period of settlement has since expired
and we are informed that the employer and the 3rd Respondent are negotiating another settlement with further
improvements. These factors, apart from what has been stated above, and the need for industrial peace and harmony
when a union backed by a large majority of workmen has accepted a settlement in the course of collective bargaining
have impelled us not to interfere with this settlement. That being the position, we unhold the settlement as fair and just
and order that the award of the Tribunal shall be substituted by the settlement dated October 18, 1973. The said
settlement shall be the substituted award. The appeal is disposed of accordingly. There will be no order as to costs.”
Therefore, in view of the law laid down by the Hon‘ble Apex Court as discussed above, the contention of the
Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the permanent post vide 5th
Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized union of Workmen has negotiated
with the Respondent Bank Management representing large number of Workmen and the Workman as individual do
not come into picture. Workman in the instant case has work as temporary Workmen in the Respondent Branch and
in response of Notification he had applied for inclusion of his name in the panel and he was selected for inclusion
his name in the panel list to be utilized for absorption of such Workman to permanent post in order of their seniority
in the list. The Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff
Federation under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position
and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is
allowed to lapse. Thus, in view of law laid down by the Hon‘ble Apex Court, in the instant case, Agreement dated
30.7.1996 was entered into between both the parties in respect of lapsing of the both the panels on 31.3.1997 and
absorption of the Workmen from panel list was subject to availability of vacancy of post likely to arise upto
31.3.1997, have a binding force on Workman as well as management of State Bank of India in view of provision
contained under section 18 (1) of I.D. Act, 1947.
Thus, Point No.I is answered against the Workman and in favour of the Respondent.
27.
Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated his
services by oral order on 31.3.1997 without issuing any notice or paying any salary or compensation in lieu thereof.
Therefore, the termination order of the Workman from service is in violation of provision contained Under Section 25
F of I.D. Act, 1947. Therefore, the order is liable to be set aside.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1221
28.
On the other hand, Respondent counsel contended that Workman has not worked for 240 days in any
preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context, the Workman
has examined himself as WW1 who has reiterated that Workman has been terminated from service by Respondent on
31.3.1997 without notice of salary or compensation in lieu thereof. Before examining the claim of the Workman on
merit it would be apposite to reproduce the provision contained under section 25 F:-
Section 25F provides:-
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].
Compensation to workmen in case of transfer of undertakings.
Section 25B defines the term continuous service which provides
Definition of continuous service.- For the purposes 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 of 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;
In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from the date of
termination, the initial burden of proof lies upon the Workman and the Workman has to prove this factum by
adducing his oral as well as documentary evidence in support of his claim.
Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the reference of
decisions of Hon‘ble Supreme Court is relevant and the same are discussed below:-
In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:
"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 worked for 240 days in the year
preceding the date of his termination. He has filed an affidavit. It is statement which is in his favor 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 held that the
Workman had worked for 240 days as claimed."
In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "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 was again reiterated in paragraph 11 as follows:
"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 ..‖
In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the Apex
Court held that "the initial burden of proof was on the Workman to show that he had completed 240 days of service."
Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid down the
principle that how to count 240 days of service within one year it is held: "Clause (2)(a) provides for a fiction
to treat a Workman in continuous service for a period of one year despite the fact that he has not rendered
uninterrupted service for a period of one year but he has rendered period of 240 days during the period of 12
1222
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
calendar service for months counting backwards and just preceding the relevant date being the date of retrenchment.
In other words, in order to invoke the fiction enacted in clause (2)(a) it is necessary to determine first the relevant
date, ie the date of termination of service which is complained of as retrenchment. After that date is ascertained. move
backward to a period of 12 months just preceding the date of retrenchment and then ascertain whether within the
period of 12 months, the Workman has rendered service for a period of 240 days. If these three facts are affirmatively
answered in favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed
that the Workman is in continuous service for a period of one year and he will satisfy the eligibility qualification
enacted in Section 25-F"
“14. We have already extracted section 25B since its amendment and the change in language is the legislative
exposition of which note must be taken. In fact, we need not further dilate upon this aspect because in Surendra
Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New Delhi and Anr., Chinnappa
Reddy. J., after noticing the amendment and referring to the decision in Sur Enamel and Stamping Works (P)
Ltd case, held as under:
"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman who has
actually worked under the employer for not less than 240 days during a period of twelve months shall be deemed to
have been in continuous service for a period of one year whether or not he has in fact been in such continuous service
for a period of one year. It is enough that he has worked for 240 days in a period of 12 months, it is not necessary that
he should have been in the service of the employer for one whole year."
In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on principle
and on precedent it must be held that section 25B(2) comprehends a situation where a Workman is not in employment
for a period of 12 calendar months, but has rendered service for a period of 240 days within the period of 12
calendar months commencing and counting backwards from the relevant date, i.e. the date of retrenchment. If he has,
he would be deemed to be in continuous service for a period of one year for the purpose of section 25B and
Chapter VA.”
Thus, in view of the law laid down by the Hon‘ble Apex Court as discussed above the initial burden of proof lies
upon the Workman to show that he has completed 240 days of the service with the Respondent just preceding from
the date of his termination. Further, in respect of the employment of calculating the 240 days service in view of the
contents of Section 25-F read with Section 25-B of the I.D. Act, 1947.
29.
Now, in view of the provision contained under Section 25 F and law laid down by the Hon‘ble Apex Court,
we have to examine whether the Workman has discharged his initial burden of proof in respect of his claim of 240
days continuous service in a calendar year just preceding from the date of his termination i.e., 31.3.1997.
In this context, WW1 in his cross examination has stated that,
“I was not sponsored by any employment exchange. I did not undergo regular process of selection before my
engagement as temporary messenger in the branch..”
“It is true that I did not work for 240 days in any year in my entire service in a single branch.”
Thus, it is clear from the testimony of WW1 that the Workman had not worked for 240 days continuously in any 12
months of a calendar year just preceding from the date of his termination in the Respondent bank. Therefore,
Workman failed to establish his plea by his oral and documentary evidence that he had worked for 240 days
continuously in calendar year just preceding from the date of his termination i.e., 31.3.1997. Thus, the claim of the
Workman that he has been terminated by oral order without issuing notice or payment in lieu after termination, in
contravention of Section 25 F of Industrial Disputes Act, 1947 is not tenable. However the documents filed by the
Workman in support of his claim, number of days worked with the Respondent goes to reveal that the Workman
had worked intermittently as daily wager depending upon availability of work in branch. Workman did not file any
document of appointment letter or salary slips in support of his claim for appointment as a non-messenger in the
Respondent branch on temporary basis.
30.
Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he was
terminated from services is not correct. As the vacancies were filled up on regular basis in order of their respective
seniority the non-engagement of the Workman does not amount to termination. Further, Respondent contended that
no law provide that even though there is no work temporary employee should be continued in the bank work as the
very engagement of Workman was subject to availability of work. Therefore, the allegation that the bank has
indulged in unfair labour practice is incorrect.
31.
Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force in the
argument advanced by the Respondent that in the instant matter, Workman was not terminated from service by order
dated 31.3.1997 rather he was disengaged in view of the non-availability of the work in the branch. Further, there
was direction issued by the Head Office of the Respondent authority not to engage any daily wager Workman/
temporary Worker w.e.f. 1.4.1997. Thus, such disengagement of Workman does not amount to termination.
Moreover, the Workman failed to prove his claim that he was terminated in contravention of provision of Sec.25F of
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1223
the I.D. Act, 1947 as he failed to establish his plea by any oral or documentary evidence that he had worked for 240
days continuously in a twelve months of calendar year just preceding from date of termination i.e., 31.3.1997.
32.
Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State Bank of
India has issued the letter to Zonal Office with direction to all its branches to this effect that they have been advised
by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of 1989 and daily
wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office not to make any temporary
appointments in messengerial cadre from 1.4.1997, therefore it was directed to issue suitable instructions not to make
temporary appointments from 1.4.1997. There is no mention in this order that the Workman herein has been
terminated from service by this order.
33.
Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial network in
respect of the non-appointment of temporary employees in subordinate cadre and it has directed not to make any
temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has directed to ensure that no
temporary/casual/daily basis appointment of the petty cash. Further, it is directed to all Branch Managers that any
deviation in this regard will be viewed seriously. Thus, these circulars do not reflect that the Workman has been
terminated from service by this order.
34.
Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank by
DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman that he has
been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the service by the Respondent
is not acceptable. The evidence adduced by the Workman clearly goes to reveal that he had worked as a daily wager
for which he has been paid wages according to number of working days. As there was an order for prohibition for
engaging temporary workmen, in the bank, therefore, Workman could not be engaged by the Respondent for work
from 1.4.1997 and there after. It is settled law that the daily wagers are engaged by the employer depending upon
the availability of work and as the work was not available the Workman was not engaged further by the Respondent
management. Therefore, the Workman on the ground of number of days he had worked in the Respondent bank
cannot claim any right to reinstate him into the employment. As the Workman failed to prove the mandatory
condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the
disengagement of Workman from work can not be termed in contravention of provision contained under Sec.25F and
25 B of the I.D. Act, 1947.
Thus, this point is answered against the Workman and in favour of Respondent.
35.
Point No.III:- In this context, the Workman has contended that the management failed to implement the
selected panels during its valid tenure. The management adopted the back door methods contrary to the settlements
and filled up the vacancies. The same is evident from the proceedings dated 18.11.1993 a copy of the same is filed in
the material papers and the same may be read as part of the claim statement. Further, it is submitted that management
has to adhere the procedure issued by the Central Government, the instructions dated 16.8.1990 in the year 1995, but
same was not followed in the year 1997 despite there being vacancies. The management has followed the procedure
of calling candidates through employment exchange instead of giving chance to the empanelled candidates like the
Workman herein. The management sent call letters to the similarly situated candidates like the Workman in the month
of June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are litigating
the issue by way of dispute, the management has refused to engage those candidates, the copies of call letters issued
are filed herein along with claim petition. The Workman herein reiterates that the panels are meant for absorption but
not for termination. In view of the same a duty is cast upon the Respondent management to engage the empanelled
candidates like the Workman herein even in temporary vacancies till they are absorbed permanently in regular
vacancies.
36.
On the other hand, Respondent has contended that the Federation approached Regional Labour
Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of temporary
employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings and agreement was
arrived at between the Federation and the Management bank. It is submitted that it was agreed between the
Federation and the Management that both the panels of temporary employees and daily wagers /casual labour would
be kept alive upto March, 1997 and the vacancies as agreed to under the afore set out settlements will be filled from
both the lists concurrently. A copy of the conciliation proceedings dated 9.6.1995 signed by the parties to the dispute
is filed as a material paper. Further, it is submitted that the settlement was arrived at and an agreement was signed
between the Federation and the Management bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the
Industrial Disputes (Central) Rules 1957 which is binding on the parties. A copy of this agreement which hereinafter
may be referred to as 5th settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996
whereunder the earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it
was agreed to, by the Federation and the Management bank that both the panels of temporary employees and daily
wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies existing/arrived at as on
31.12.1994 as per the norms agreed to between the bank and Federation and that thereafter the said panels would
lapse. It was also agreed that within the framework of the above settlements the modalities about drawing names
from either the panel of temporary employees or the panel of daily wagers and casual labour would be decided
1224
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
administratively on circle to circle basis depending upon the local requirements in consultation with the Federation‘s
affiliate by the Circle management. It was further agreed that all messenger real vacancies/positions in the subordinate
cadre including part-time attendants specifically provided as leave reserve will be filled by the end of 31.3.1997.
Further, Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the
Federation‘s affiliate and the bank management regarding the fact that the exercise of identifying the messengerial
vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial vacancies were
sanctioned to the circle of the Management bank and it was agreed that these vacancies may be filled from 1989 panel
of temporary employees after effecting conversion from full time non-messengerial staff in the usual manner and the
agreement was reached upon. Further, it was agreed between the Federations affiliate and the management bank
that in terms of the settlement dated 30.7.1996 both the panels of temporary employees and daily wagers /casual
employees would lapse on 31.3.1997.
37.
The Workman has contended that the empanelled list prepared by the Respondent management for
appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is exhausted by
appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the date fixed for the lapse of
panel. It is undisputed that the date of lapse of empanelled list of Workmen has been fixed to 31.3.1997 as
mentioned in the settlement dated 30.7.1996, and agreed between the parties. It is settled law that and once the life
of panel list lapses on the date as agreed between the parties it cannot be extended beyond that date. In the instant
case the panel list of the workmen was valid upto 31.3.1997 in view of the terms and conditions enumerated in the 5th
Settlement entered into between the parties. As the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of
India and State Bank of India Staff Federation through 5th Settlement, the Workman is not competent to challenge the
same.
In this context I would like to take reference of the decision of the apex court in the case of Syndicate Bank and Ors
vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court have held:-
“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work as
temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government of India in
respect of such temporary appointments, the Calcutta regional office of the appellant Bank issued a circular to all of
its branches on 14.8.1982, instructing all the branches under it to discontinue the old practice from 1.6.1982 and
appoint only empanelled candidates. The regional office was to prepare a panel of eligible candidates, after calling
names from the local/district employment exchange, and split it up branch-wise. Following that new procedure yearly
panels were prepared thereafter. Names of the Respondents were for the first time included in the panel prepared for
the period 7.2.1987 to 6.2.1988. By its letter dated 7.2.1987 the Bank had informed the Respondents that the panel
was valid for one year only and that inclusion of their names in the panel was not to confer on them any right to seek
permanent appointment in the service of the bank. Considering the object with which the panel was prepared and the
fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get any right,
because of inclusion of their names in the said panel, for permanent absorption in the service of the Bank. Whatever
conditional right they had came to an end with the expiry of the panel. The claim of the Respondents, as contained in
the writ petition was thus misconceived and therefore the learned single Judge and the Division Bench, when it first
decided the appeal, were right in dismissing the writ petition and the appeal respectively.”
Thus, in view of the above law laid down by the Hon‘ble Apex Court and in view of the terms and conditions of the
5th Settlement the contention of the Workman that empanelled list should continue even after 31.3.1997 till the last
Workman in the panel is absorbed is not tenable. The contention of the Workman is baseless in view of recital in
the settlement. Therefore, in view of the fore gone discussion and finding given at Point No. I regarding binding
nature of Settlements and terms and conditions enumerated therein, in view of the provision contained u/s.18(1) of the
I.D. Act, 1947, I am of the considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement
dated 30.7.1996 and plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has
no legal force and same is untenable.
38.
Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of India and
State Bank of India Staff Federation and in that settlement it was agreed that both the panels of temporary employees
and daily wagers/ casual employees will be used for filling vacancies existing as on 31.12.1994 as per the norms
agreed between the bank and the Federation. These empanelled workmen were to be given a chance for permanent
appointment in the bank against vacancies arising up to December 1994 whereas the daily wagers/ casual employees
were to be considered against the vacancies arise from January 1995 to December 1996, whereby the said panel
would lapse. It was agreed that the vacancies falls upto 31.3.1997 shall be filled before the empanelled list is
allowed to lapse. Thus, the claim of the Workman to the post of permanent non-messenger in the Respondent
management was subject to the availability of the sanctioned post and vacancies arising upto 31.3.1997. The
workmen given chance to the permanent post were seniors in number of working days in panel list and Workman
herein was junior to those workmen. Therefore, Workman could not be given absorption to permanent post being
junior to other workmen in the panel list.
39.
In this context the Workman witness WW1 was cross examined by the Respondent counsel and in the cross
examination the witness WW1 states:-
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1225
“I applied for appointment as Messenger, in response to the advertisement issued by the bank and the union in the
year 1989…. Further, witness states, The panel was prepared basing upon the number of days of service put in by the
temporary employees. Some of the temporary employees whose names were included in the panel were given regular
appointment in the in the order of their seniority in the panel…. Further witness states, It is true that I am not having
any documents to show that any of my juniors are continuing in service in the bank.”
Thus, from the above statement of the Workman witness WW1 it is clear that the panel was prepared in terms of
various settlements entered into between Staff Federation of State Bank of India and State Bank of India and it was
prepared on the basis of number of days of work put in by the temporary employees. Further, the Workman himself
admitted that some of the temporary employees whose names were included in the panel were given regular
appointment in the bank in order of their seniority in the panel and he is not having any document to show that any
person who worked for less number of days than the Workman was given appointment in the bank. Therefore, the
allegation of the Workman that the regular appointment has been made by the bank from the panel list in breach of
the terms of the settlement and violation of seniority of panel list is not proved by this evidence of WW1. Thus,
there is no evidence on record that bank has given the appointment to the temporary employees as well as daily
wagers from the panel list 1989 and 1992 in breach of seniority of the temporary employees in the list. There is no
evidence of jumbling in the panel list to make appointment of any permanent Workman in breach of the seniority.
Therefore, I am constrained to hold that the Respondent Management has appointed the workmen from panel list in
order of seniority and there is no jumbling of workmen in the panel list before it got lapsed on 31.3.1997.
40.
However, Workman has taken the plea that the panels of Workmen for absorption in the employment of the
Respondent banks (panels of temporary employees and daily wagers) has been lapsed on 31.3.1997 in contravention
of terms of settlement as the object of preparing the entire empanelment of temporary and daily wagers was to
provide them permanent employment and till the both the panel lists exhausted the panel list cannot be lapsed on
31.3.1997 and the date of lapsing of the panel on 31.3.1997 has been fixed by the Respondent arbitrarily without any
authority.
41.
In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated 30.7.1996
was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial Dispute (Central) Rules
1957. This settlement has been entered into by the competent parties and in this settlement parties thereto agreed
that both the panels of temporary employees and daily wagers/casual employees will lapse on 31.3.1997. Thus the
date of lapse of panel was fixed by both the parties with consensus under the settlement dated 30.7.1996 and same is
binding upon the Workman under the provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding
force of the settlement dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at
finding in Point No.I of this award. However, the legality and validity of the aforementioned settlement has not been
challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of panel
i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of Workman for
his absorption to the permanent post it is settled law that the Workman can not claim his regularization to permanent
post merely on the basis of number of working days.
42.
In this context the reference of the decision of Hon‘ble Supreme Court in the case of Oil and Natural Gas
Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant therein Hon‘ble
Supreme Court have has laid down principle regarding regularization of the Workman on permanent posts. Hon‘ble
Supreme Court have laid down the prepositions of regularization of the workmen to permanent post is as under:-
―(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction to order
regularisation, where such a direction would in the context of public employment offend the provisions contained
in Article 14 of the Constitution;
(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the status of
permanency continues to exist in circumstances where the employer has indulged in an unfair labour practice by not
filling up permanent posts even though such posts are available and by continuing to employ workmen as temporary
or daily wage employees despite their performing the same work as regular workmen on lower wages;
(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no posts are
available, a direction to grant regularisation would be impermissible merely on the basis of the number of years of
service;
(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it would be open
to workmen who have been deprived of the same benefit at par with the workmen who have been regularised to make
a complaint before the Labour or Industrial Court, since the deprivation of the benefit would amount to a violation of
Article 14; and
(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth Schedule of the
ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and continuing them for years,
with the object of depriving them of the benefits payable to permanent workmen.
1226
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
Thus, in view of the principles laid down by the Hon‘ble Supreme Court as discussed above, in the instant matter the
Workman utterly failed to prove his claim by adducing any documentary or oral evidence that the employer has
indulged in unfair labour practice by not filling the permanent posts even though such posts are available and by
continuing to employ workmen as temporary or daily wage employees despite their performance was the same work,
as regular workmen on lower wages.
43.
Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up from the
panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled. Further, it is
contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997, hence, there is no
occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed to prove contrary by any
evidence to the aforesaid contention of the Respondent that the vacancies were existing as on 31.3.1997 and the
workman was not given absorption to the permanent post in order of his seniority. It is settled law that the power to
create permanent or sanctioned post lies outside the judicial domain and where no posts are available, a direction to
grant regularization would be impermissible merely on the basis of the number of years of service. Therefore, the
claim of the workman on this ground also not acceptable.
44.
Further, as per the of settlement, panel was prepared for absorption of the workmen on the permanent posts
has already been lapsed on 31.3.1997 and the vacancies existing and arising upto 31.12.1994 and upto 31.3.1997 as
settlement dated 30.7.1996 has been filled up from the panel by appointing the workmen as per seniority in the panel
list. Workman witness WW1 in his cross examination has himself admitted this fact that, some of the temporary
employees whose names were included in the panel were given regular appointment in the bank in order of their
seniority in the panel. The Workman failed to show that there was any breach of terms of settlement has been
committed by the Respondent in appointment to permanent post from aforesaid panel list.
45.
As discussed in preceding paragraph of this Award, the life of the panel has not been extended beyond
31.3.1997, by any further settlement hence, the panel list in which name of the Workman was included got expired
on 31.3.1997. It is not the case of the Workman that Respondent has regularized similarly situated workmen either in
the scheme or otherwise and the Workman has been deprived of same benefit on par with those workmen or the
vacancies remained unfilled on the date of lapse of panels i.e., 31.3.1997, Industrial Tribunal has no jurisdiction to
extend the date of lapse of panel i.e., 31.3.1997. This Tribunal can not order for regularization of workmen to the
permanent post in contravention of the provision of Article 14 of the Constitution of India.
In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007 date of
judgement 13.12.2007, Hon‘ble Supreme Court have held:-
“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are governed by a
statute and statutory rules. No appointment can be made by a Local Authority without following the provisions of the
recruitment rules. Any appointment made in violation of the said rules as also the constitutional scheme of equality as
contained in Articles 14 and 16 of the Constitution of India would be a nullity.
9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was permissible, but by
reason thereof an employee cannot claim any right to be permanently absorbed in service or made permanent in
absence of any statute or statutory rules. Merely because an employee has completed 240 days of work in a year
preceding the date of retrenchment, the same would not mean that his services were liable to be regularized.”
Therefore, in view of the law laid down by the Hon‘ble Apex Court, the claim of the Workman for absorption merely
on the basis of number of day of work in the Respondent bank Branch is not acceptable. As regard plea of the
Workman that the Workman should have been given employment even after 31.3.1997 as temporary Workman, it is
the discretion of Respondent to engage the Workman depending upon availability of work and this Tribunal can not
direct the Respondent to engage the Workman in the absent of such rule/scheme.
46.
In view of principle laid down by Hon‘ble Apex Court as discussed above, in the instant matter Workman
utterly failed to establish the fact of rendering continuous service for a period of 240 days of service within a period
of 12 calendar months commencing and coming backward from relevant date i.e., the date of retrenchment, if has he
would be denied to be in continuous service for a period of one year. Therefore, the provision contained under
Sec.25F of retrenchment is not applicable to Workman.
Counsel for Workman has relied upon number of decisions of Hon‘ble High Court and Hon'ble Supreme Court and
few of them are discussed herein:-
In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon‘ble Supreme Court have
held:-
“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to conform to Article
14 of the Constitution of which non-arbitrariness is a significant facet. There is no unfettered discretion in public law:
A public authority possesses powers only to use them for public good. This impose the duty to act fairly and to adopt
a procedure which is `fairplay in action'. Due observance of this obligation as a part of good administration raises a
reasonable or legitimate expectation in every citizen to be treated fairly in his interaction with the State and its
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1227
instrumentalities, with this element forming a necessary component of the decision making process in all State
actions. To satisfy this requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and
give due weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or else
that unfairness in the exercise of the power may amount to an abuse or excess of power apart from affecting the bona
fides of the decision in a given case. The decision so made would be exposed to challenge on the ground of
arbitrariness. Rule of law does not completely eliminate discretion in the exercise of power, as it is unrealistic, but
providers for control of its exercise by judicial review.”
In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP No.193/1997,
therein Hon‘ble High Court have held,
―Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that it was a
permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his services were not
liable to be terminated and he was to be regularised into service on permanent basis. Shastry award warrants that no
temporary appointment can be made to a permanent post. But the matter is now covered by two division bench
judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in W.A. No.270 of 1982. The ratio decided in the
two judgements is to the effect that there cannot be any mandate to appoint employees on permanent basis when the
requirement was for appointment on temporary basis. But it is held in the said judgements that when a temporary
appointee is ousted from service and not for misconduct and, if again temporary appointment is to be made, then, the
case of such temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of
the Act.”
In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein Hon‘ble
Supreme Court have held:-
“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities must
consider his case for regularization provided he is eligible and qualified according to the rules and his service record
is satisfactory and his appointment does not run counter to the reservation policy of the state.”
In the above cited judgements by the Workman the facts of the case are different hence do not apply to instant case
of Workman.
47.
On the other hand, in support of his contention Respondent has examined witness MW1 and MW1 in chief
examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were entered into between
the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994 for those temporary employees
who has worked on scale wages. Further, MW1 states that two different panels for messengers and non-messengers
as per the eligibility criteria prescribed by the bank. There are four modules in Andhra Pradesh and they are
Hyderabad, Tirupathi, Vijayawada and Visakhapatnam. MW1 states that the temporary employees so empanelled
were given permanent absorption depending upon the vacancies so arise strictly in terms of the settlement. MW1
states that on 9.6.1995 conciliation proceeding was held before the RLC(C), Hyderabad and in said proceedings it
was decided that the panels will be kept live up to 31.3.1997 and vacancies will be filled from both the lists
concurrently. A copy of the said minutes of proceedings is Ex.M5. Further, MW1 states that on 30.7.1996 another
settlement was entered between the SBI and All India SBI Staff Federation providing for filling up of the vacancies
arising up to December 1994 in respect of subordinate cadre and daily wage /casual wage employees out of panel so
prepared were to be considered against vacancies arising from January 1995 to December 1996, thereafter the said
panels lapse. MW1 states that it was also agreed that all the non- messenger positions in subordinate cadre including
part time attendants specially provided as leave reserve will be filled before 31.3.1997 and as regards to non-
messengerial positions it is agreed that all such posts sanctioned and fallen vacant up to 31.3.1997 shall be filled
before the empanelled list is allowed to lapse. Thus in both the cases empanelled list were lapsed on 1.4.1997.
Ex.M6 is the copy of the settlement dated 30.7.1996. Further, witness states that on 27.2.1997 a memorandum of
understanding was reached between the SBI and SBI Staff Federation providing that both the panels above mentioned
will lapse on 31.3.1997. Ex.M7 is the copy of the memorandum of understanding and Ex.M8 is the copy of the
statements giving the particulars of 1989 non-messenger panel, Ex.M9 is the copy of the statement of 1989 non-
messenger panel, Ex.M10 is the copy of statement of 1992 panel. Further, witness states that petitioner was included
in the 1989 panel. As the existing vacancies at that time were exhausted and his turn did not come he could not be
given permanent employment in the bank as per the agreements. All the appointments were made strictly in
accordance with the settlements reached from time to time between SBI and SBI staff federation and as per seniority,
number of days of temporary service put in by them in the bank in the given period. Further, MW1 states petitioner
was not sponsored by any employment exchange he did not undergo the regular process of selection required for
appointment as a regular non-messenger the petitioner has not worked for 240 days in any year in his entire temporary
service in the bank. The petitioner and other temporary employees were terminated from service by the bank.
Further, MW1 states that the vacancies were filled up on regular basis with the temporary employees from the panels
and these panels were expired in terms of the settlements so reached and there were no vacancies to absorb such
employees. Thus, witness MW1 has proved the documents Ex.M1 to Ex.M12 and also contentions made in the
counter. However, MW1 was cross examined by the Petitioner Counsel. But nothing has been elicited in his cross
examination so as to discredit the testimony of the witness MW1 as regards the date of lapse of both the panels on
1228
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
31.3.1997 and reasons assigned for non-absorption of the Petitioner from the panel list to the permanent post.
Moreover the witness MW1 was re-examined by the Respondent and the witness MW1 states that panels were
expired in terms of the settlement send absorptions to the extent of the available vacancies were made. There was no
termination of any temporary messenger as such but their services were not utilized after the cut off date as the
available vacancies were already filled up and most of these Petitioners were not in the service of the bank as on the
date of the expiry date of the panels. Therefore, in view of the aforesaid testimony of the MW1 in re-examination in
the absence of cross examination remained uncontraverted, the claim of the Workman that he was entitled for
absorption in permanent post in the branch of Respondent Management on the basis of panel list is found not
established.
This point is answered against the Workman.
48.
Point No.IV:-In view of the discussion and finding given at Point Nos. I, II and III, the Workman is not
entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.
This Point is answered accordingly.
ORDER
In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating the
services of Sri T. Srinivasa Rao, Ex. Messenger by way of oral orders w.e.f. 31.3.1997 is justified. Hence, the
Petitioner is not entitled for any relief as prayed for. The claim statement filed by Workman sans merit, hence,
dismissed. Reference is answered accordingly.
Award is passed accordingly. Transmit.
Dictated to Smt. P. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed by me on this
the 4th day of February, 2026.
IRFAN QAMAR, Presiding Officer
Appendix of evidence
Witnesses examined for the
Witnesses examined for the
Petitioner
Respondent
WW1: Sri T. Srinivasa Rao
MW1: Sri K. Bala Kotaiah
Documents marked for the Petitioner
Ex.W1: Photocopy of Marks memo of Petitioner
Ex.W2: Photocopy of Service certificate
Ex.W3: Photocopy of interview call letter
Ex.W4: Photocopy of Panel list
Ex.W5: Photocopy of minutes of the conciliation proceedings on 15.03.2001.
Documents marked for the Respondent
Ex.M1:
Photocopy of settlement between Respondent and All India State Bank of India Staff Federation
dt.17.11.87
Ex.M2:
Photocopy of settlement between Respondent and All India State Bank of India Staff Federation
dt.16.7.88
Ex.M3:
Photocopy of settlement between Respondent and All India State Bank of India Staff Federation
dt.27.10.1988
Ex.M4:
Photocopy of settlement between Respondent and All India State Bank of India Staff Federation
dt.9.1.1991
Ex.M5:
Photocopy of conciliation proceedings before the Regional Labour Commissioner(C) dt.9.6.1995
Ex.M6:
Photocopy of settlement between Respondent and All India State Bank of India Staff Federation
dt.30.7.1996
Ex.M7:
Photocopy of Memorandum of understanding dt. 27.1.1997
Ex.M8:
Photocopy of statements giving the particulars of 1989 messenger panel.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1229
Ex.M9:
Photocopy of statement of 1989 Non-messenger panel
Ex.M10:
Photocopy of statement of 1992 panel
Ex.M11:
Photocopy of order of Hon‘ble High Court in WA No.86/98 dt. 1.5.98
Ex.M12:
Photocopy of order in SLP No.11886-11888 of 1998 dated 10.8.98
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 279.—औद्योजगक जववाद ऄजधजनयम, 1947 (1948 का 14) की धारा 17 के ऄनुसरण में, केन्रीय
सरकार राष्ट्रीय आस्ट्ृात जनगम जलजमट जविाखाृत्तनम स्ट्टील प्लांट; जमडफील्ड आंडस्ट्रीि जलजमटेड; मेससच ऊजिता
एसोजसएट्स के प्र ंधतंत्र के सं द्ध जनयोिकों और श्री िे. सोमा रािू के ीर् ऄनु ंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक
ऄजधकरण एवं श्रम न्यायालय, िजदरा ाद, ृंर्ाट (ररफरेन्स न.- एमृी 50/2017) को िजसा दक ऄनुलग्नक में ददखाया गया
िज, प्रकाजित करती िज िो केन्रीय सरकार को सॉफ्ट कॉृी के साथ 27.02.2026 को प्राप्त हुअ था l
[सं. िेड-16025/03/2026-अइअर(एम)-48]
सलोनी, ईृ जनदेिक
New Delhi, the 27th February, 2026
S.O. 279.—In pursuance of Section 17 of the Industrial Dispute Act, 1948 (14 of 1948), the Central
Government hereby publishes the award (Reference No. MP 50/2017) 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 J. Soma Raju which was received along with soft copy of the award by the Central
Government on 27.02.2026.
[No. Z-16025/03/2026-IR(M)-48]
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 January 2026
M.P. No. 50/2017
Between:
J. Soma Raju,
S/o J. 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.
1230
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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. 70,249.85ps 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
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 756 working days, amounting to Rs. 70,249.85ps 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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1231
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
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
1232
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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
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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1233
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.70,249.85ps. 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
1234
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[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.70,249.85ps. 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. 42 and
against his name the total number of working days 756 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. 42 name of the Petitioner, Sri J. Soma
Raju, unskilled workman is recorded and against his name amount due towards full and final amount is shown as
Rs.70,249.85ps 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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1235
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. 70,249.85ps. 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.70,249.85ps. 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
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
1236
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 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 रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1237
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
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.
1238
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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. 70,249.85ps. 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
5th day of January 2026
IRFAN QAMAR, Presiding Officer
Appendix of evidence
Witnesses examined for the
Witnesses examined for the
Petitioner
Respondent
WW1: Sri J. Soma 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)
Act, 1970 dt: 14.08.2009.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1239
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
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 280.—औद्योजगक जववाद ऄजधजनयम, 1947 (1948 का 14) की धारा 17 के ऄनुसरण में, केन्रीय
सरकार राष्ट्रीय आस्ट्ृात जनगम जलजमट जविाखाृत्तनम स्ट्टील प्लांट; जमडफील्ड आंडस्ट्रीि जलजमटेड; मेससच ऊजिता
एसोजसएट्स के प्र ंधतंत्र के सं द्ध जनयोिकों और श्री ए. सीताराम के ीर् ऄनु ंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक
ऄजधकरण एवं श्रम न्यायालय, िजदरा ाद, ृंर्ाट (ररफरेन्स न.- एमृी 51/2017) को िजसा दक ऄनुलग्नक में ददखाया गया
िज, प्रकाजित करती िज िो केन्रीय सरकार को सॉफ्ट कॉृी के साथ 27.02.2026 को प्राप्त हुअ था l
[सं. िेड-16025/03/2026-अइअर(एम)-49]
सलोनी, ईृ जनदेिक
New Delhi, the 27th February, 2026
S.O. 280.—In pursuance of Section 17 of the Industrial Dispute Act, 1948 (14 of 1948), the Central
Government hereby publishes the award (Reference No. MP 51/2017) 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. Seetharam which was received along with soft copy of the award by the Central
Government on 27.02.2026.
[No. Z-16025/03/2026-IR(M)-49]
SALONI, Dy. Director
1240
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
ANNEXURE
IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD
Present: -
Shri Irfan Qamar,
Presiding Officer
Dated the 5th day of January 2026
M.P. No. 51/2017
Between:
A. Seetharam,
S/o A. Seet Ram,
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. 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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1241
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 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 was 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
1242
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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
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 रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1243
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
1244
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[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.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 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 रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1245
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. 49 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. 49 name of the Petitioner, Sri A.
Seetharam, 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 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
1246
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 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 रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1247
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
mean all remuneration (whether by way of salaries, allowances or otherwise) expressed in terms of money are capable
1248
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[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. 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
5th day of January 2026
IRFAN QAMAR, Presiding Officer
Appendix of evidence
Witnesses examined for the
Witnesses examined for the
Petitioner
Respondent
WW1: Sri A. Seetharam
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 रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1249
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.
1250
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 281.—औद्योजगक जववाद ऄजधजनयम, 1947 (1948 का 14) की धारा 17 के ऄनुसरण में, केन्रीय
सरकार राष्ट्रीय आस्ट्ृात जनगम जलजमट जविाखाृत्तनम स्ट्टील प्लांट; जमडफील्ड आंडस्ट्रीि जलजमटेड; मेससच ऊजिता
एसोजसएट्स के प्र ंधतंत्र के सं द्ध जनयोिकों और श्री िी. ृेंटय्या के ीर् ऄनु ंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक
ऄजधकरण एवं श्रम न्यायालय, िजदरा ाद, ृंर्ाट (ररफरेन्स न.- एमृी 52/2017) को िजसा दक ऄनुलग्नक में ददखाया गया
िज, प्रकाजित करती िज िो केन्रीय सरकार को सॉफ्ट कॉृी के साथ 27.02.2026 को प्राप्त हुअ था l
[सं. िेड-16025/03/2026-अइअर(एम)-50]
सलोनी, ईृ जनदेिक
New Delhi, the 27th February, 2026
S.O. 281.—In pursuance of Section 17 of the Industrial Dispute Act, 1948 (14 of 1948), the Central
Government hereby publishes the award (Reference No. MP 52/2017) 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. Pentayya which was received along with soft copy of the award by the Central
Government on 27.02.2026.
[No. Z-16025/03/2026-IR(M)-50]
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 January 2026
M.P. No. 52/2017
Between:
G. Pentayya,
S/o G. Sanyasi Rao,
Walzen Strips Pvt. Ltd., Wire Rod Mill-1,
Visakhapatnam Steel Plant,
Visakhapatnam – 530031.
…. Petitioner
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1251
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. 82,701.54ps 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
1252
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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 890 working days, amounting to Rs. 82,701.54ps 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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1253
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.
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
1254
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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.
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.82,701.54ps. 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 :-
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1255
"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
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.82,701.54ps. 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
1256
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[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 Sl. No. 29 and
against his name the total number of working days 890 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. 29 name of the Petitioner, Sri G.
Pentayya, unskilled workman is recorded and against his name amount due towards full and final amount is shown as
Rs.82,701.54ps 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. 82,701.54ps. 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.82,701.54ps. 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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1257
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
1258
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
(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.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1259
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. 82,701.54ps. 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
5th day of January 2026
IRFAN QAMAR, Presiding Officer
Appendix of evidence
Witnesses examined for the
Witnesses examined for the
Petitioner
Respondent
WW1: Sri G. 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.
1260
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 282.—औद्योजगक जववाद ऄजधजनयम, 1947 (1948 का 14) की धारा 17 के ऄनुसरण में, केन्रीय
सरकार राष्ट्रीय आस्ट्ृात जनगम जलजमट जविाखाृत्तनम स्ट्टील प्लांट; जमडफील्ड आंडस्ट्रीि जलजमटेड; मेससच ऊजिता
एसोजसएट्स के प्र ंधतंत्र के सं द्ध जनयोिकों और श्री एम. ऄप्ृा राव के ीर् ऄनु ंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक
ऄजधकरण एवं श्रम न्यायालय, िजदरा ाद, ृंर्ाट (ररफरेन्स न.- एमृी 53/2017) को िजसा दक ऄनुलग्नक में ददखाया गया
िज, प्रकाजित करती िज िो केन्रीय सरकार को सॉफ्ट कॉृी के साथ 27.02.2026 को प्राप्त हुअ था l
[सं. िेड-16025/03/2026-अइअर(एम)-51]
सलोनी, ईृ जनदेिक
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1261
New Delhi, the 27th February, 2026
S.O. 282.—In pursuance of Section 17 of the Industrial Dispute Act, 1948 (14 of 1948), the Central
Government hereby publishes the award (Reference No. MP 53/2017) 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. Appa Rao which was received along with soft copy of the award by the Central
Government on 27.02.2026.
[No. Z-16025/03/2026-IR(M)-51]
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 January 2026
M.P. No. 53/2017
Between:
M. Appa Rao,
S/o M. Appanna,
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. 73,037.54ps with regard to legitimate dues of full
and final payments including retrenchment allowances as per contract.
1262
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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 786 working days, amounting to Rs. 73,037.54ps 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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1263
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
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
1264
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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
chief statement affidavit MW1 has reiterated the contention made in counter. However, MW1, was cross-examined by
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1265
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.73,037.54ps. 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
1266
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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.73,037.54ps. 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. 16 and
against his name the total number of working days 786 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. 16 name of the Petitioner, Sri M. Appa
Rao, unskilled workman is recorded and against his name amount due towards full and final amount is shown as
Rs.73,037.54ps 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. 73,037.54ps. 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.73,037.54ps. 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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1267
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 does not
deal with, nor does if cover the Contract Labour (Regulation and Abolition) Rules, 1971. Hence Section
1268
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1269
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. 73,037.54ps. 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
5th day of January 2026
IRFAN QAMAR, Presiding Officer
Appendix of evidence
Witnesses examined for the
Witnesses examined for the
Petitioner
Respondent
WW1: Sri M. Appa Rao
MW1: Sri Bammadi Joga Rao
MW2: Sri K. Sudhakara Rao
1270
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 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 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 रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1271
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
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 283.—औद्योजगक जववाद ऄजधजनयम, 1947 (1948 का 14) की धारा 17 के ऄनुसरण में, केन्रीय
सरकार राष्ट्रीय आस्ट्ृात जनगम जलजमट जविाखाृत्तनम स्ट्टील प्लांट; जमडफील्ड आंडस्ट्रीि जलजमटेड; मेससच ऊजिता
एसोजसएट्स के प्र ंधतंत्र के सं द्ध जनयोिकों और श्री वाइ. नरससगा राव के ीर् ऄनु ंध में जनर्ददष्ट केन्रीय सरकार
औद्योजगक ऄजधकरण एवं श्रम न्यायालय, िजदरा ाद, ृंर्ाट (ररफरेन्स न.- एमृी 54/2017) को िजसा दक ऄनुलग्नक में
ददखाया गया िज, प्रकाजित करती िज िो केन्रीय सरकार को सॉफ्ट कॉृी के साथ 27.02.2026 को प्राप्त हुअ था l
[सं. िेड-16025/03/2026-अइअर(एम)-52]
सलोनी, ईृ जनदेिक
New Delhi, the 7th February, 2026
S.O. 283.—In pursuance of Section 17 of the Industrial Dispute Act, 1948 (14 of 1948), the Central
Government hereby publishes the award (Reference No. MP 54/2017) 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. Narasinga Rao which was received along with soft copy of the award by the
Central Government on 27.02.2026.
[No. Z-16025/03/2026-IR(M)-52]
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 January 2026
M.P. No. 54/2017
Between:
Y. Narasinga Rao,
S/o Y. Eswarudu,
Walzen Strips Pvt. Ltd., Wire Rod Mill-1,
Visakhapatnam Steel Plant,
Visakhapatnam – 530031.
…. Petitioner
1272
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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. 83,537.85ps 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
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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1273
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 899 working days, amounting to Rs. 83,537.85ps 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
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
1274
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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.
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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1275
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.
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.83,537.85ps. 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 :-
1276
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
"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
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.83,537.85ps. 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.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1277
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. 40 and
against his name the total number of working days 899 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. 40 name of the Petitioner, Sri Y.
Narasinga Rao, unskilled workman is recorded and against his name amount due towards full and final amount is
shown as Rs.83,537.85ps 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, 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. 83,537.85ps. 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.83,537.85ps. 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
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
1278
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1279
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
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.
1280
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 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 is allowed.
Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,
Visakhapatnam is directed to pay the amount of Rs. 83,537.85ps. 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
5th day of January 2026
IRFAN QAMAR, Presiding Officer
Appendix of evidence
Witnesses examined for the
Witnesses examined for the
Petitioner
Respondent
WW1: Sri Y. Narasinga 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.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1281
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
1282
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 284.—औद्योजगक जववाद ऄजधजनयम, 1947 (1948 का 14) की धारा 17 के ऄनुसरण में, केन्रीय
सरकार राष्ट्रीय आस्ट्ृात जनगम जलजमट जविाखाृत्तनम स्ट्टील प्लांट; जमडफील्ड आंडस्ट्रीि जलजमटेड; मेससच ऊजिता
एसोजसएट्स के प्र ंधतंत्र के सं द्ध जनयोिकों और श्री एम. ऄप्ृाला नायडू के ीर् ऄनु ंध में जनर्ददष्ट केन्रीय सरकार
औद्योजगक ऄजधकरण एवं श्रम न्यायालय, िजदरा ाद, ृंर्ाट (ररफरेन्स न.- एमृी 55/2017) को िजसा दक ऄनुलग्नक में
ददखाया गया िज, प्रकाजित करती िज िो केन्रीय सरकार को सॉफ्ट कॉृी के साथ 27.02.2026 को प्राप्त हुअ था l
[सं. िेड-16025/03/2026-अइअर(एम)-53]
सलोनी, ईृ जनदेिक
New Delhi, the 27th February, 2026
S.O. 284.—In pursuance of Section 17 of the Industrial Dispute Act, 1948 (14 of 1948), the Central
Government hereby publishes the award (Reference No. MP 55/2017) 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. Appala Naidu which was received along with soft copy of the award by the
Central Government on 27.02.2026.
[No. Z-16025/03/2026-IR(M)-53]
SALONI, Dy. Director
ANNEXURE
IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD
Present: -
Shri Irfan Qamar,
Presiding Officer
Dated the 6th day of January 2026
M.P. No. 55/2017
Between:
M. Appala Naidu,
S/o M. Chinnaapparao,
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)
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1283
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. 78,334.15ps 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 843 working days, amounting to Rs. 78,334.15ps 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
1284
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
(annexure 5) dated12th 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.
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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1285
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
1286
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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.78,334.15ps. 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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1287
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.78,334.15ps. 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. 4 and
against his name the total number of working days 843 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. 4 name of the Petitioner, Sri M. Appala
Naidu, unskilled workman is recorded and against his name amount due towards full and final amount is shown as
Rs.78,334.15ps 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. 78,334.15ps. towards full and final payment as terminal benefit from Respondent
1288
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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.78,334.15ps. 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.
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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1289
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
1290
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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.
Respondent No. 1 Chairman & Managing Director, Rastriya Ispat Nigam Ltd, Visakhapatnam Steel Plant,
Visakhapatnam is directed to pay the amount of Rs. 78,334.15ps. to the Petitioner within 30 days from the date of this
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1291
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
6th day of January 2026
IRFAN QAMAR, Presiding Officer
Appendix of evidence
Witnesses examined for the
Witnesses examined for the
Petitioner
Respondent
WW1: Sri M. Appala 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.
1292
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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
नइ ददल्ली, 27 फरवरी, 2026
का.अ. 285.—औद्योजगक जववाद ऄजधजनयम, 1947 (1948 का 14) की धारा 17 के ऄनुसरण में, केन्रीय
सरकार राष्ट्रीय आस्ट्ृात जनगम जलजमट जविाखाृत्तनम स्ट्टील प्लांट; जमडफील्ड आंडस्ट्रीि जलजमटेड; मेससच ऊजिता
एसोजसएट्स के प्र ंधतंत्र के सं द्ध जनयोिकों और श्री स्ट्वगीय के.वी. रमना 1/1. करनम रमादेवी (ृत्नी), 1/2. करनम साइ
लक्ष्मी ( ेटी), 1/3. करनम गणेि ( ेटा), 1/4. करनम देमुदम्मा (मााँ)के ीर् ऄनु ंध में जनर्ददष्ट केन्रीय सरकार औद्योजगक
ऄजधकरण एवं श्रम न्यायालय, िजदरा ाद, ृंर्ाट (ररफरेन्स न.- एमृी 56/2017) को िजसा दक ऄनुलग्नक में ददखाया गया
िज, प्रकाजित करती िज िो केन्रीय सरकार को सॉफ्ट कॉृी के साथ 27.02.2026 को प्राप्त हुअ था l
[सं. िेड-16025/03/2026-अइअर(एम)-54]
सलोनी, ईृ जनदेिक
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1293
New Delhi, the 27th February, 2026
S.O. 285.—In pursuance of Section 17 of the Industrial Dispute Act, 1948 (14 of 1948), the Central
Government hereby publishes the award (Reference No. MP 56/2017) 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 Late. K.V. Ramana 1/1. Karanam Ramadevi(Wife), 1/2. Karanam Sai
Lakshmi(Daughter), 1/3. Karanam Ganesh(Son), 1/4. Karanam DemuDamma(Mother) which was received
along with soft copy of the award by the Central Government on 27.02.2026.
[No. Z-16025/03/2026-IR(M)-54]
SALONI, Dy. Director
ANNEXURE
IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT, HYDERABAD
Present: -
Shri Irfan Qamar,
Presiding Officer
Dated the 6th day of January 2026
M.P. No. 56/2017
Between:
1.Late. K.V. Ramana,
S/o K. Appala Naidu,
1/1. Karanam Ramadevi(Wife)
1/2. Karanam Sai Lakshmi(Daughter)
1/3. Karanam Ganesh(Son)
1/4. Karanam DemuDamma(Mother)
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,
1294
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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 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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1295
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. During pendency of the petition petitioner Karnam Venkata Ramana, expired on 04.04.2017 and the legal heirs of
the deceased petitioner filed the affidavit that the workman, Karnam Venkata Ramana, has raised the claim in the
petition and during the pendency of the petition Karnam Venkata Ramana expired on 04.04.2017 due to illness.
Further, it is contended that the Department of Health, Medical and Family Welfare of the Government of Andhra
Pradesh has issued the death certificate bearing registration number D-2017: 28-90225-000474 and subsequently
Government of Andhra Pradesh (Revenue Department) and the Tahsildar of Gajuwaka Mandal, Visakhapatnam
District, has issued the family member certificate, i.e., Legal Heir certificate dated 11.05.2017. The legal heir of the
deceased petitioner has prayed to add them as legal heir in the petition in place of the deceased petitioner. The legal
heir has also filed the family member certificate wherein the details of the family members of the deceased petitioner
are mentioned in the certificate as at No. 1, Karnam Ramadevi, wife of the deceased at No.2 Karnam Sai Lakshmi,
daughter of the deceased at No. 3 Karanam Ganesh son of the deceased, and at No. 4 Karnam Damu Damma mother
of the deceased. Further, the death certificate dated 07.04.2017 reveals that Karnam Venkat Ramana expired on
04.04.2017. This death certificate has been issued by the competent authority of the Government of Andhra Pradesh.
The legal heir of the deceased petitioner has also filed the amended petition under Section 33(c) (2)of the ID Act,
wherein they have reiterated the same contention as made by the deceased petitioner in his petition and has claimed
the amount Rs. 83,909.54ps against the Respondent.
4.
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.
5.
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
1296
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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.
6.
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.
7.
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.
8.
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
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1297
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.
9. 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.
10.
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."
11. Heard the argument of learned counsel for either parties.
12. 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
1298
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[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."
13. 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.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. 64 and
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1299
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. 64 name of the Petitioner, Sri K.V.
Ramana, 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.
14.
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.
15.
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.
16.
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
1300
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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 रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1301
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.”
17. 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,
1302
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
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 deceased Karanam Venkata Ramana and of legal heir 1. Karanam
Ramadevi-Wife, 2. Karanam Sai Lakshmi-Daughter, 3. Karanam Ganesh-Son, Karanam DemudDamma-Mother
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
6th day of January 2026
IRFAN QAMAR, Presiding Officer
Appendix of evidence
Witnesses examined for the
Witnesses examined for the
Petitioner
Respondent
WW1: Sri K.V. 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.
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 रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1303
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
1304
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
नइ ददल्ली, 2 मार्च, 2026
का.अ. 286.—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 (51/2001) izdkf”kr djrh gSA
[सं. ,y -12012/385/2000-अइअर(ch-I)]
सलोनी, ईृ जनदेिक
New Delhi, the 2nd March, 2026
S.O. 286.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central
Government hereby publishes the Award (Ref. 51/2001) 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-12012/385/2000- IR(B-I)]
SALONI, Dy. Director
ANNEXURE
IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT
HYDERABAD
Present: Sri IRFAN QAMAR
Presiding Officer
Dated the 3rd day of February 2026
INDUSTRIAL DISPUTE No. 51/2001
Between:
Sri Y. Rajender,
H.No. 6-2-757, Chintal Basti,
Khairtabad,
Hyderabad-500 004.
… Petitioner
And
The Assistant General Manager,
(Personnel & HDR Deptt.)
State Bank of India,
Local Head Office,
Hyderabad.
…..Respondent
Appearances:
For the Petitioner :
M/s. V.Mallik, K. Shankar Rao, N. Madhusudhan & Galaiah Velugu, Advocates
For the Respondent:
Sri Y. Ranjeeth Reddy, Advocate
AWARD
The Government of India, Ministry of Labour by its order No. L-12012/385/2000-IR(B.I) dated 26.06.2001
referred the following dispute under section 10(1)(d) of the I.D. Act, 1947 to requiring this forum to decide the
question:
SCHEDULE
―Whether the action of the management of State Bank of India, Local Head office Hyderabad in terminating
the services of Sri Y. Rajender Temporary/Non-Messenger, from the services of the Bank by way of oral
orders w.e.f. 31.3.1997 is justified? If not, what relief the applicant is entitled?‖
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1305
After receipt of the reference, it was numbered as ID No. 51/2001 and notices were issued to both the Workman and
the management.
2.
Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a bird eye
view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along with the batch
cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference was answered in favor of
the Respondent and against the Workman. That said common award dated 17.5.2005 was challenged by the
aggrieved Workmen in various Writ petition No.6470/2014 along with batch of writ petitions before the Hon‘ble
High Court of Andhra Pradesh and Hon‘ble High Court vide its‘ judgement dated 23.6.2014 allowed all batch of writ
petitions and set aside the common award dated 17.5.2005 passed in ID No.222 of 2001 and other batch of I.D cases
by Central Government Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State
Bank of India was directed to reengage the Writ Petitioners in position, which they have been occupying prior to
their termination and further directed to consider their cases for regularization as and when the substantive vacancy
arises. This judgement dated 23.6.2014 of Hon‘ble High Court of AP, passed in WP No.6470/2014 and batch
petitions was challenged by Respondent management before the Hon‘ble High Court in Writ Appeal No. 1268 of
2014. The aforesaid Writ Appeals No.1268/2014 and other Writ Appeals were decided by Division Bench of High
Court of Andhra Pradesh by a common judgement dated 20.3.2019. Hon‘ble High Court in aforesaid Writ Appeal
was pleased to pass the order which is extracted as below: -
“7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting unofficial
Respondents, we see that while the learned single Judge was justified in setting aside the award af the Tribunal, the
proper course to be adopted was to remit all the cases to the Tribunal. This we say for reasons more than one. Firstly,
in such matters, claims have to be decided on individual basis, as different persons have different claims as to the
length of officiation or discharge of duties and functions; quality of engagement, drawings, accounting of the post for
each one of them, who have worked etc. AIl these issues will not be the same in all the cases. Therefore, each case
ought to have been directed to be decided by the Tribunal afresh on individual basis. The second and most important
aspect is the learned single Judge has in one go ordered re-employment of all the workmen. This is not a relief that
could have been granted without answering the individual issues; each issue relating to each case could not have
been decided by the writ Court within the format of its adjudication procedures and scope. The adjudicating body,
which has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain the
order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the further findings
and directions, issued through the impugned order have to go and the individual cases have to be sent back for
consideration of the Tribunal. Such further procedure before the Tribunal will have to be carried forward with the
materials already on record and also by affording an opportunity to the persons, who have claims as well as the
management to place their rival contentions and further material before the Tribunal. The learned counsel appearing
for the workmen are justified in pointing out that enormous delay has already happened and further action by the
Tribunal in this line may be expedited.
9. In the result, these writ appeals are ordered;
(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the common award
dated 17.05.2005 of the Industrial Tribuna!;
(2) the further findings and directions issued through the impugned common order are vacated:
(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an outer limit
of five (5) months from the date of receipt of a copy of this order; and,
(4) the parties to make appearance before the Tribunal on the given date.”
Thus, in view of the above direction of Hon‘ble High Court of Andhra Pradesh in W.A.No.1268 of 2014 and batch
cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it afresh in view of the
aforesaid guidelines laid down by the Hon‘ble High Court in Writ Appeal No.1268/2014 vide judgement dated
20.3.019.
3.
The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement are that
the Workman joined in the service of the management institution as Messenger from 1985 to 1997 and has rendered
unblemished service spreading over a period of about 12 years. The Respondent has terminated services of
Workman by oral orders with effect from 1.4.1997. Further, it is submitted that the management of Respondent bank
decided to give a chance to temporarily employed personnel ―found suitable for permanent appointment‖ by wait-
listing them by offering permanent appointment or waitlisting till such opportunity arises.
4.
That on 17.11.1987 a settlement was reached between All India State Bank of India Staff Federation and the
Management of State Bank of India - settlement one, under this settlement three categories of employees were listed.
That is, A) those who have completed 240 days in 12 months or less after 1.7.1975. B) those who have completed
270 days in any continuous block of 36 calendar months after 1.7.1975. C) (i) those who have completed minimum
of 30 days aggregate temporary service in any calendar year after 1.7.1975 or (ii) 70 days aggregate temporary service
in continuous block of 36 months after 1.7.1975.
1306
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
5.
The persons who satisfied in all the above 4 categories were to be interviewed by a selection committee and
the said selection committee would determine the suitability of the said candidate for permanent appointment.
Therefore, the bank prescribed certain qualifications and from among the candidates satisfying the qualifications the
suitable candidates were enlisted by a selection committee. The Clause 7 of the said agreement provided with the
selected candidate would be wait listed in order of their respective categorization and the selected panel would be
valid up to December 1991. Clause 10 of the settlement specifically provided that henceforth. ―There will be no
temporary appointments in the subordinate cadre‖, except on a restrictive basis in the specified category, ―from
amongst empanelled candidates as per existing guidelines of the bank‖. The Workman further submits that
consequent upon the said agreement and the draft, a notification was issued in the newspapers. The last date for
responding to the advertisement was 30.8.1988. A written examination followed by viva-voce in May 1989 was held.
A selected panel was prepared, as per Clause 7 of the agreement, i.e.. Settlement No.1, the selected panel was to be
valid up to December 1991, the Workman submits that circular was issued on 26.4.91 by the said letter it is
mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement dated 16.7.88 was
entered into between the parties. In terms of the said agreement a chance was to be given, ―to all eligible temporary
employees for permanent appointments. The appointments were against the vacancies likely to arise during the years
1995-96, circular made it clear that in view of the enormity of the problem an extension of the currency of the panel,
eligible temporary employees who have been empanelled could not appear in the earlier interviews and have been
pursuing their cases thereafter, ―will be given another chance to appear for interview‖.
6.
Workman submits that there was total five settlements. The settlement dated 17.11.87 is the 1st settlement
(Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88 is the 3rd settlement (Ex
M3), then settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th settlement (Ex M6). In
between there are minutes of conciliation proceedings dated 9.6.95 marked as Ex M5. That due to all these
settlements which were extended by subsequent settlements thereby created reasonable expectations in the list of the
selected candidates arose with that it‘s a question of time their appointments or services would be regularized in the
services of the bank. The Workman was working with the bank on temporary basis was under the bonafide hope that
sooner his services will be regularized with the bank. He is thereby closed all his options elsewhere. It is needless to
point out that employing person to whom hope of employment in substantial terms was made is a facet of Article 21
of the Constitution of India.
7.
Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR, dated
16.8.1990. Under said circular the chief Executives of all public sector banks including the Management herein were
specifically instructed that until the problem of existing temporary employees is fully resolved, no bank is permitted
to make any permanent appointments. That some of the persons similarly situated like this Workman aggrieved by
the inaction on the part of the management of the bank is not regularizing their services from out of the selected panel
and not clearly focusing the vacancy position, filed W.P. No. 4194/97 before Hon‘ble High court of A.P. It is
specifically averred in the said writ petition that the Management of the bank had failed to implement the settlement
and that it violates the various fundamental rights guaranteed under the constitution of India. The Hon‘ble High court
of A.P .. by order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It also
directed the bank to carry out the terms of settlement before the expiry of March 1997. The Hon‘ble High Court also
recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In view of the directions
given by the High Court all candidates whose names appeared in the select panels prepared on the basis of the
agreement entered into on 17.11.87 under which the panel was valid up to December 1991, and on the basis of a
settlement dated 27.10.1988 whereby the panels were made alive up to 31.3.1997 under which the panel was valid up
to December, 1999. The other agreement dated 16.7.1988 under which the panel was valid up to 1992 and on the
basis of the settlement dated 27.10.1998 whereby the panels were made alive up to 31.3.1997 were under the bonafide
impression that their cases will be considered for regularization and were living on the basis of the said reasonable
expectation. Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the
settlements entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and
31.3.1997 instructing the various authorities of the Management not to continue the temporary employees those who
are in services of the bank from 1.4.97. The said order was followed by the Management. Aggrieved by the said
action the Workman herein and similarly situated candidates have filed a writ petition before the Hon'ble High Court
and by way of Writ Petition No.9206/97 seeking a declaration that the proceedings issued by the Deputy General
Manager and the Assistant General Manager (Respondents 3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as
illegal and also non-continuance of the Workmen therein in service by absorbing them in the services of the bank as
violative of Section 2(p) and 18(1) read with Rule 58 of Central Rules and sought for specific direction to the bank to
absorb them in service.
8.
Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank has
submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies of
circumstances and on account of the urgent need in its banks, it employed temporary employees in subordinate cadre.
It is pertinent to mention that it does not state the urgent or need or the nature of temporary employees that it had
engaged. Enquiry into the same would reveal that the stand taken by the bank either on the ground of urgent need or
of temporary employees is a façade to perpetuate unfair labour practice. It is designed to on the one hand, keep the
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1307
employed in the erroneous zone of hope and on the other to ensure that benefits that a model employer will extend
under various statutes to its employees is not required to be borne out by the bank. A reading of the counter affidavit
would show that the bank would opines that being just fair and reasonable are which obviously is reprehensible and is
a facet of unfair labour practice.
9.
The Workman submits that the bank had referred in its counter affidavit to three settlements dated 17.11.87,
16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of Government dated 16.8.90
stated in its counter affidavit that as follows:
"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with regard to
recruitment and absorption of temporary employees in public sector banks. The said guidelines were issued to
implement on the lines of the approach paper on the issue provided by a committee constituted in this regard. The
Government of India guidelines made it clear that all the public sector banks may follow the provisions laid down in
the approach paper.
The approach paper specified that the cases of temporary employees who had put in not less than 240 days of
temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F may be decided by
entering into a settlement with the representative union. In respect of temporary employees who had put in less than
240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the Management
so desired, they could enter into a conciliation settlement with the representative union. Para 6(h), it is mentioned
that only those temporary employees who had put in temporary service of 90 or more days after 1.1 1982 would be
eligible for considering under the scheme. Although the Government guidelines envisaged for a settlement in respect
of employees who had put in temporary service of 90 or more days, the bank by way of further concession entered
into settlements Even in respect of those who had put in less than 90 days. As such, it could be Seen that the
settlements are more beneficial to the temporary employees concerned. The approach paper also specify at para 6(c)
that the banks would provide one time opportunity to all the temporary employees and for that purpose temporary
employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the scheme.
The Respondents have gone further wherein even persons working after 1975 were also considered.
As could be seen from the above, there was a genuine effort on the part of the Respondent bank to provide
permanent employment for as many as possible subject to availability of the vacancies.
It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be one time
exercise in full and final settlement of all the aims and disputes for the past period in respect of temporary workmen
covered by the settlement. This would mean that the Government of India guidelines would cover only those persons
who were temporarily employed for the period specified therein and not otherwise. As such, it is submitted that the
Respondents have not only followed the Government of India guidelines but in fact covered cases of the employees
who had worked for less than 90 days. As such, question of violation does not arise and in any case those were only
broad guidelines and not directives".
10.
The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein there is a
clause to the effect- that the panel of temporary employees and the panel of daily wage employees will be operated to
a particular period. Therefore, their cases will not be considered. The Management herein relying upon this settlement
in their impugned action. It is submitted that even the settlement dated 9.1.1991 will not empower the management
to terminate the services of the temporary employees who are working in the bank services like the Workman herein
as it does not specify the termination of the employees. In fact, there are so many vacancies wherein the Management
has engaged several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of
Hon‘ble High Court without considering the cases of the similarly situated candidates like the Workman herein. It is
submitted in spite of engaging fresh candidates as is now being done by the Management they would have continued
the similarly situated candidates like the Workman herein in the services of the bank and consider their cases for
absorption in view of the circulars issued by Central Government as well as the directions of this Hon'ble Court in
Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued by the Central Government, the Management
should not have relied upon the settlement dated 9.1.1991. Hence, the impugned action of the Management is illegal,
unjust, violative of fundamental rights such as Articles 14,16 and 21 of the Constitution of India.
11.
The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees wherein they
have complained about the non- implementation of the settlements arrived between the parties and sought for
absorption. Such employees in the bank services on permanent basis before the date fixed for carrying out the terms
of settlement, the Court held that the members of the union had been empanelled in the list, they were not regularized
and the time was going to run out to the near future and the Respondent bank and its officers cannot escape from the
liability of enforcing the settlement which has been reached and therefore directed that the bank and the officers shall
implement the settlement dated 17.11.87 as amended from time to time before the expiry of 31.3.97.
12.
Further, it is submitted that in the clause of Settlement it is specifically mentioned that the workmen to be
absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the date of settlement even the
authorities want to make temporary appointments that should be made only from among the empanelled can be
appointed either for temporary vacancy or permanent vacancy except from among the empanelled candidates like the
1308
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
Workman and that should be continued till they are absorbed. The management committed unfair labour practices
and terminated the services of the candidates with effect from 1.4.1997 which is arbitrary, discriminatory, contrary to
their own guidelines and violative of the constitutional provisions which are guaranteed in Chapter-III of the
Constitution of India.
13.
The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called
Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the
Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal and unfair
labour practice which cannot be allowed to be perpetuated. That the discontinuance of the Workman after 31.3.97
who had served in the bank in any capacity amounts to retrenchment. It could not have been done without any notice
and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the said action is violative of principles of natural
justice guaranteed under Chapter III of the Constitution of India. This amounts to retrenchment without one month's
notice and taken in view of such notice. Thus, the main proceedings issued by the Respondent is without jurisdiction
and is arbitrary, illegal and therefore liable to be quashed. That the alleged Memorandum of Understanding dated
27.2.97, Ex.M5 does not own any legal entity, as the said Memorandum of Understanding is not published anywhere
to brought to the notice of the Workman whose rights are being affected. It is submitted that Management did not
adhere to the procedure envisaged by the Central Government in its' instructions dated 16.8.90 in the year 1995. The
same was not followed in the year 1997 despite there being vacancies.
The management has followed the
procedure of calling candidates through Employment exchange instead of giving chance to the empanelled candidates
like the Workman here. It is pertinent to mention here that the Respondent Management sent letters to all similarly
situated candidates like the Workman in the month of June 1997, subsequent to the passing of impugned termination
orders. After knowing the facts that the candidates are litigating, the Management refused to engage these candidates.
It is once again reiterated that the panels are meant for absorption but not for termination. It was the duty of the
Management to engage the empanelled candidates like the Workman even in temporary vacancies till they are
absorbed permanently in regular vacancies. Hence, the action of the Respondent Management terminating the
services of the Workman by oral order dated 31.3.97 is unjust, illegal, violative of principles of natural justice and
hence, the Management be directed to reinstate and absorb the Workman and to grant all incidental and consequential
benefits.
14.
Per contra, Respondent had filed counter and made a contention that the reference is not tenable and contrary
to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate staff constraints
which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions imposed by the Government
of India/Reserve Bank of India on intake of staff, the Respondent bank used to engage sub-ordinate staff like
messengers, sweepers, sweeper cum water boys, etc., depending on the availability of work on purely temporary basis
for the smooth and uninterrupted functioning of the branches. It is submitted that the All India State Bank of India
Staff Federation which represents majority of the employees in the State Bank of India comprising about 98% of the
work force as its' members espoused the cause of temporary employees who have put in less than 240 days of
temporary service in 12 calendar months in the bank and who were ineligible for any protection under Industrial
Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.
15.
Discussions were held and on 17.11.1987 an agreement was signed between the federation and the
Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule 58 of
Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be herein after
referred as first settlement is filed and 4 categories were made as it has already been mentioned in the claim statement
above, it need not be repeated here. In the first settlement, it was agreed that the temporary employees as categorized
would be given a chance for being considered for permanent appointment in the bank's service against the vacancies
which are likely to arise during the period 1987 to 1991. On 16.7.88 second settlement was arrived between the
Federation and the Bank whereby it was agreed to substitute the period of consideration of vacancies as 1987 to 1992
in place of 1987 to 1991 as contemplated under the first settlement dated 17.11.1987. This is the second settlement.
A 3rd settlement was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to
arise from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued guidelines to
all the public sector banks with regard to recruitment and absorption of temporary employees in public sector banks.
The said guidelines were issued to implement on the lines of approach paper on the issue provided by a committee
constituted in this regard. Government of India guidelines made it clear that all the public sector banks may follow
the provisions laid down in the approach paper. The approach paper specified that the cases of temporary service in
12 consecutive months and who are entitled to benefit of Sec.25F of the Industrial Disputes Act, 1947 may be decided
by entering into a settlement with the representative union. In respect of temporary employees who had put in less
than 240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the
Management so desired they could enter into a conciliation settlement with the representative union. In para. 6(h) it
is mentioned that only those temporary employees who had put in temporary service of 90 days or more days after
1.1.82 would be eligible for considering under the scheme. Although the Government guidelines envisaged for a
settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by way of a
further concession entered into settlements. Even in respect of those who had put in less than 90 days and also the
bank went a step further and said those persons who are working after 1975 were also considered. Hence, there was
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1309
a genuine effort on the part of the Respondent bank to provide as many as possible jobs subject to the availability of
the vacancies. However, para 6 (k) of the approach paper made it clear that it is a one time, exercise in full and final,
settlement of all the claims and disputes for the past period, in respect of temporary workmen covered by the
settlement. Another settlement was entered on 9.1.91 herein after referred as 4th settlement and the time limit was
extended up to 1994 and separate panel was prepared for temporary employees, casual/daily wagers. It was agreed
that while vacancies arising between 1988 to 1994 in respect of temporary employees and in respect of casual/daily
wagers, they can be considered for the vacancies arising between 1995-96 only.
16.
It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four Zonal
Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts of Andhra
Pradesh. In terms of the settlement the Management after following the procedure laid down therein prepared the
panels of qualified candidates of temporary employees denoted as 1989 panel and also panel of casual/daily wagers
denoted as 1992 panel for giving a chance for being considered for permanent absorption. These panels were
prepared zone-wise separately for messengers and non-messengers in the descending order of temporary service put
in by the candidates during the stipulated period i.e., 1.7.1975 to 31.7.1988. That the Federation approached the
Regional Labour Commissioner(C) for implementation of bi-partite settlement in respect of absorption of temporary
employees. The Regional Labour Commissioner(C) conducted conciliation proceedings and an agreement was
arrived between the Federation and the bank. It was agreed that it would be kept alive up to March, 1997. A copy of
the conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was arrived
at, and an agreement was signed between the Federation and the Management bank on 30.7.1996 under Sec.2 (p) read
with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter called as 5th settlement. That on
27.2.1997 a Memorandum of understanding was also signed by the federation‘s affiliate and the bank Management
recording the fact that the exercise of identifying the messengerial vacancies as on 31.12.1994 has since been
completed by Central Office and thereby 403 messengerial vacancies were sanctioned. It was agreed that these
vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time non-
messengerial staff in the usual manner and the agreement was reached accordingly. It was agreed between the
Federation's affiliate and the Management bank that in terms of the settlement dated 30.7.1996 both the panels of
temporary employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies
were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240 days in a
continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a direction to consider his
candidature for absorption in the Management bank under any rule/law except under the settlement entered into
thereon.
17.
Respondent contended that, in fact, the case of the Workman can be considered under all the five settlements
having got his case considered under provisions of these settlements. All the other provisions and terms of the
settlements are also binding on him/her. The Management bank has not violated any of the provisions of the terms of
the said settlement. That the very preparation and maintenance of panel is in compliance of the terms agreed under
these settlements. These settlements were time bound, and they ceased to exist on 31.3.1997. That the bank has
never promised that all the candidates in the panel will be absorbed. In the advertisement itself it was made clear that
candidates will be considered for absorption in the vacancies that may arise up to 1992. Keeping alive the panels
after 31.3.1997 is contrary to the settlements arrived between the State Bank of India Staff Federation and the
Management bank. That the settlements are binding on the parties. The Workman is also bound under the terms of
the said settlement. The settlement does not suffer from any ambiguity as their language is very clear. The right
under the settlements is to give them a chance to be considered for future appointment in the bank's services against
the vacancies likely to arise. The settlements were affected to balance the expectations of the temporary employees to
be absorbed in permanent service as against the constitutional rights for all eligible persons to be considered for
employment every time a vacancy arises. That the alleged dispute including the demand for reinstatement has to be
decided in this context. It is submitted that the period of panel list got expired on 31.3.97 and it is an integral term of
the settlement and cannot be modified in any proceedings under the law. These temporary employees who
unfortunately could not be accommodated for want of vacancies have no further rights to be considered for
regularization. That the Hon'ble High Court in WP No.12964/94, held as follows, "It is needless to state that the
settlement arrived at between the All-India State Bank of India Staff Federation which, is the majority union and the
bank Management is binding on the Workmen also. It is not at all the case of the Workman that any of the terms of
the settlement has been violated by the bank's Management. If the Workman had worked in the bank on part-time
basis before 31.5.94, that itself would not vest in him a right to claim that his services should be regularized on
permanent basis against a full-time cadre post. The claim put forth by the Workman in the present petition is therefore
misconceived and not tenable. However, it is open to the Workman to claim any right which flows from the
settlement between the union and the bank Management. As already pointed out that it is not the grievance of the
Workman that some right which has flown from the settlement in favor of the Workman has been denied by the bank
Management. Therefore, I do not find any ground, let alone substantial ground, to grant the kind of relief sought for
by the Workman. Writ Petition fails and is accordingly dismissed. No costs."
18.
Further, it is contended that if the panels were not lapsed at the end of designated period and allowed to be
continued it would result in making the contracts of temporary employment indirectly permanent through back door
1310
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
entry, which would not only be contrary to the settlements but also to Articles 14 and 16 of Constitution of India and
deprive the chances of original claimants who would Come through proper recruitment procedure. As their rights
have been crystallized by operation of the settlements. Hence, there is no question of any Legitimate expectation
being violated.
19.
Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High Court of A.P.
and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA No.86/98 and the batch was
filed and the Division Bench set aside the order of the Single Judge. Thereafter the ex-temporary employees filed
Special Leave Petition No.11886-11888 of 1998 before the Hon'ble Supreme Court of India. The Hon'ble Supreme
Court of India also dismissed the SLP. Therefore, reference to the Judgement of the Learned Single Judge in WP
No.9206/97 is of no consequences as the same has already been set aside. The observations made in the Judgements
cannot be relied upon for any purpose what so ever. The question of operation of Sec.25F would not come into play.
Further the issue is covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High
Courts. Hence, the reference may be ordered that the Workman is not entitled for any relief.
20.
In order to fortify his claim Workman has examined himself as WW1 and also filed documents in evidence
which has been exhibited as Ex. W1 to W10. Further, the Workman has filed photocopies of documents in support
of his claim which are discussed as under: -
Ex. W1 is the Service Certificate. Further Ex. W2 is the Notification. Ex. W3 is the call letter for Interview. Ex. W4
is the panel list. Ex. W5 to Ex. W8 are the service certificates. Ex. W8A payment voucher for the month of April
1997. Ex. W9 is the circular. Ex.W10 is the circular dated 14.07.1999.
21.
On the other hand, Respondent has examined witness MW1 Sri Aluru Rama Rao and this witness has
exhibited 12 documents, marked as Ex.M1 to M12. The details of these documents are as follows:-
Ex.M.1 is the Settlement dated 17.11.1987. Ex.M2 is the Settlement dated 16.7.1988. Ex.M3 is the Settlement
dated 27.10.1988. Ex.M4 is the Settlement dated 9.1.1991. Ex.M5 is the Minutes of the conciliation proceedings
dated 9.6.1995. Ex.M6 is the Settlement dated 30.7.1996. Ex.M7 is the Memorandum of Understanding dt.
27.2.1997. Ex.M8 is the Particulars of 1989 Messengerial Panel. Ex.M9 is the Particulars of 1989 Non-
Messengerial Panel. Ex.M10 is the Particulars of 1992 General Attendant Panel. Ex.M11 is the Judgment of
Hon‘ble High Court of A.P. in Writ Appeal No.86/98 dt.1.5.1998. Ex.M12 is the Judgment of Hon‘ble Supreme
Court of India in SLP No. 11886-11888 of 1998 dt.10.8.1998.
22.
Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of various
judgements of Hon‘ble Supreme Court as well as Hon‘ble High Court, which we will discuss at appropriate place in
this Award.
23.
Heard the argument of Learned Counsel for Workman as well as for Respondent.
24.
On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel for both
the parties, following points arise for determination in the industrial dispute :-
I.
Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement dated
27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered into between
State Bank of India and All India State Bank of India Staff Federation and also Memorandum of
Understanding are binding upon both the parties?
II.
Whether the action of State Bank of India, Parishram Bhavan branch in terminating the services of
Workman Sri Y. Rajender a Messenger with effect from 31.3.1997 is justified?
III.
Whether the Workman is entitled for absorption on permanent post in the Branch of Respondent
management as per averments made by him in the claim statement?
IV.
To what relief if any the Workman is entitled for?
Findings:-
25.
Point No.I:-Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and 30.7.1996,
minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were executed between the
State Bank of India and All India State Bank of India Staff Federation under section 2(p) and 18 (1) of I.D. Act, 1947
read with Rule 58 of Industrial Disputes (Central Rules), 1957.
Section 2(p) of the Industrial Disputes Act, 1947 as follows:-
(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written
agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding
where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof
has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer;
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1311
Section 18(1) provides as follows:-
18. Persons on whom settlements and awards are binding.
- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the course of
conciliation proceeding shall be binding on the parties to the agreement.
Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in the
aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman has argued that
the Workman after going through the selection procedure has successfully been listed in the panel for appointment on
the permanent basis in the Respondent management and the empanelled list has to be valid till last person in the
empanelled list is appointed on permanent basis. But the impugned order dated 25.3.97, 27.3.97 and 31.3.97, has been
issued by Respondent management thereby the services of the Workman has been terminated and the said order is not
in consonance of the terms of the agreement entered into between the parties. Further, Workman submits that the
Respondent in the 5th settlement has mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and
that is not binding upon the Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the
aforesaid 5th settlement, is arbitrary and illegal.
26.
The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager, SBI Zonal
Office has issued the letter to all the branches with regard to the subject not to make any temporary appointments in
the Branch in messengerial category from 1.4.1997. The extract of the said letter is given below:-
―We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels of
temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has been decided
by Central Office not to make any temporary appointments in messengerial category from 1.4.1997.‖
Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide letter dated
25.3.1997 has issued direction to all its branches not to make any temporary appointments in messengerial category
from 1.4.1997 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997 as per terms of settlements
entered into by both parties. Further, the contents of the subsequent letter dated 27.3.1997 issued by Respondent
Management is also direction to Branch Manager, State Bank of India not to make any temporary messengerial
category appointment with effect from 1.4.1997 and it has also been communicated to all concerned that the panels
of temporary employees and daily wagers maintained by Zonal offices stand lapsed from 31.1.1997. Further, office
order dated 31.3.1997 has been issued by Respondent management that goes to reveal that the said office order has
been issued to this effect that, ―Consequent on absorption of temporary employees in permanent cadre, it has been
decided by the competent authority that no one onwards, no further daily labour or temporary
employees/appointments should be resorted to/engaged/employed.‖ Therefore, it reflects from the contents of the
aforesaid orders that the temporary appointment in messengerial category and daily labour has been stopped by the
Respondent management with effect from 1.4.1997 because of the lapsed of panel of temporary workers and daily
wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in the 5th settlement
which has been arrived at between the parties on dated 30.7.1996 with the consensus of both the parties. Therefore,
Workman can not challenge the terms and conditions contained in settlement dated 30.7.1996 regarding lapse of
panel on 31.3.1997 as agreed between State Bank of India and State Bank of India Staff Federation. As per provision
contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated 30.7.1996 is binding on both the parties.
In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh..... 1990 II LLJ
510 AP para 414, Hon’ble Court have held:-
―4. There was a settlement between the Management and the workmen under Section 18(1) of the Industrial Disputes
Act on 25th April 1983 under which the age of superannuation of the workmen was fixed at 55 years. The settlement
was to be in force upto 30th June 1986 and the next settlement, incorporating practically the same terms, was again
entered into on 4th February 1987 under Section 18(1) of the Industrial Disputes Act. There is no dispute that these
settlements are under Section 18(1).
14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited jurisdiction. It can
only decide in the first appeal whether a termination by the management is valid or not and is within the parameters
of Section 40 of the Act. The said Authority, in our view, has absolutely no jurisdiction to decide whether a settlement
entered into under Section 18(1) of the Industrial Disputes Act between the representatives of the Workmen and of the
Management, is vitiated by undue influence or misrepresentation or coercion on the part of the Management. The
Authority, namely, the Assistant Commissioner of Labour, was never intended by the A.P. Legislature to have
jurisdiction to go into the question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes
Act by an Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes
Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section 41(1) of the
A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of any such settlements. If
parties to a settlement have a grievance about the validity of a settlement, it is for them to agitate the matter before
the appropriate forum and they cannot ask an Authority constituted under Section 41(1) of the A.P. Shops and
Establishments Act, 1966 with limited jurisdiction, to go into any such question and, that too, incidentally while
deciding whether retirement as per the contract of employment, is legal or not.”
1312
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
It is not the case of Workman that aforesaid settlements are vitiated by undue influence or misrepresentation or
coercion on the part of the management. If the Workman feeling aggrieved by any terms of settlement/ agreement on
the aforementioned grounds then he can challenge of settlement before a competent authority under the Act, 1947.
But here in the instant matter it is not a case of Workman that aforementioned settlement has been entered into
between the parties on the ground of undue influence or misrepresentation or coercion. Therefore, Workman is barred
to raise any objection in respect of fixing the date of lapse of both panels on 31.3.1997 as agreed between both the
parties and Workman can not challenge any terms of said Agreement.
Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR 322,
Hon‘ble Supreme Court have held:-
The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call for a finding
at all in view of 1his Court's order. As observed above that was not a correct assumption. On the other hand, we feel
that this view of the Tribunal has led it to approach the matter in an entirely erroneous manner. The Tribunal is,
rightly enough, conscious that under section 18 (1) of the Industrial Disputes Act the settlement was binding on the
company and the members of the 3rd Respondent union. Even so, the Tribunal devoted nearly half of its order in
scanning the evidence given by the company and Respondent No. 3 to find out whether the terms of the settlement had
been explained by the President of the union to the workmen or not and whether the workers voluntarily accepted the
settlement knowing all the "consequences". This to our mind is again an entirely wrong approach.
“When a recognised union negotiates with an employer the workers as individuals do not come into the picture. It is
not necessary that each individual worker should know the implications of the settlement since a recognised union,
which is expected to protect the legitimate interests of labour, enters into a settlement in the best interests of labour.
This would be the normal rule. We cannot altogether rule out exceptional cases where there may be allegations of
mala fides, fraud or even corruption or other induce- ments. Nothing of that kind has been suggested against the
President of the 3rd Respondent in this case. That being the position, prima facie, this is a settlement in the course of
collective bargaining and, therefore, is entitled to due weight and consideration.
It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and others bad.
Unless it can be demonstrated that the objectionable portion is such that it completely outweighs all the other
advantages gained the Court will be slow to hold a settle- ment as unfair and unjust. The settlement has to be
accepted or rejected as a whole and we are unable to reject it as a whole as unfair or unjust. Even before this Court
the 3rd Respondent representing admittedly the large majority of the workmen has stood by this settlement and that is
a strong factor which it is difficult to ignore. As stated elsewhere in the judgment, we cannot also be oblivious of the
fact that all workmen of the company have accepted the settlement. Besides, the period of settlement has since expired
and we are informed that the employer and the 3rd Respondent are negotiating another settlement with further
improvements. These factors, apart from what has been stated above, and the need for industrial peace and harmony
when a union backed by a large majority of workmen has accepted a settlement in the course of collective bargaining
have impelled us not to interfere with this settlement. That being the position, we unhold the settlement as fair and just
and order that the award of the Tribunal shall be substituted by the settlement dated October 18, 1973. The said
settlement shall be the substituted award. The appeal is disposed of accordingly. There will be no order as to costs.”
Therefore, in view of the law laid down by the Hon‘ble Apex Court as discussed above, the contention of the
Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the permanent post vide 5th
Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized union of Workmen has negotiated
with the Respondent Bank Management representing large number of Workmen and the Workman as individual do
not come into picture. Workman in the instant case has work as temporary Workmen in the Respondent Branch and
in response of Notification he had applied for inclusion of his name in the panel and he was selected for inclusion
his name in the panel list to be utilized for absorption of such Workman to permanent post in order of their seniority
in the list. The Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff
Federation under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position
and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is
allowed to lapse. Thus, in view of law laid down by the Hon‘ble Apex Court, in the instant case, Agreement dated
30.7.1996 was entered into between both the parties in respect of lapsing of the both the panels on 31.3.1997 and
absorption of the Workmen from panel list was subject to availability of vacancy of post likely to arise upto
31.3.1997, have a binding force on Workman as well as management of State Bank of India in view of provision
contained under section 18 (1) of I.D. Act, 1947.
Thus, Point No.I is answered against the Workman and in favour of the Respondent.
27.
Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated his
services by oral order on 31.3.1997 without issuing any notice or paying any salary or compensation in lieu thereof.
Therefore, the termination order of the Workman from service is in violation of provision contained Under Section 25
F of I.D. Act, 1947. Therefore, the order is liable to be set aside.
28.
On the other hand, Respondent counsel contended that Workman has not worked for 240 days in any
preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context, the Workman
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1313
has examined himself as WW1 who has reiterated that Workman has been terminated from service by Respondent on
31.3.1997 without notice of salary or compensation in lieu thereof. Before examining the claim of the Workman on
merit it would be apposite to reproduce the provision contained under section 25 F:-
Section 25F provides:-
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].
Compensation to workmen in case of transfer of undertakings.
Section 25B defines the term continuous service which provides
Definition of continuous service.- For the purposes 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 of 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;
In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from the date of
termination, the initial burden of proof lies upon the Workman and the Workman has to prove this factum by
adducing his oral as well as documentary evidence in support of his claim.
Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the reference of
decisions of Hon‘ble Supreme Court is relevant and the same are discussed below:-
In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:
"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 worked for 240 days in the year
preceding the date of his termination. He has filed an affidavit. It is statement which is in his favor 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 held that the
Workman had worked for 240 days as claimed."
In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "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 was again reiterated in paragraph 11 as follows:
"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 ..‖
In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the Apex
Court held that "the initial burden of proof was on the Workman to show that he had completed 240 days of service."
Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid down the
principle that how to count 240 days of service within one year it is held: "Clause (2)(a) provides for a fiction
to treat a Workman in continuous service for a period of one year despite the fact that he has not rendered
uninterrupted service for a period of one year but he has rendered period of 240 days during the period of 12
calendar service for months counting backwards and just preceding the relevant date being the date of retrenchment.
1314
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
In other words, in order to invoke the fiction enacted in clause (2)(a) it is necessary to determine first the relevant
date, ie the date of termination of service which is complained of as retrenchment. After that date is ascertained. move
backward to a period of 12 months just preceding the date of retrenchment and then ascertain whether within the
period of 12 months, the Workman has rendered service for a period of 240 days. If these three facts are affirmatively
answered in favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed
that the Workman is in continuous service for a period of one year and he will satisfy the eligibility qualification
enacted in Section 25-F"
“14. We have already extracted section 25B since its amendment and the change in language is the legislative
exposition of which note must be taken. In fact, we need not further dilate upon this aspect because in Surendra
Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New Delhi and Anr., Chinnappa
Reddy. J., after noticing the amendment and referring to the decision in Sur Enamel and Stamping Works (P)
Ltd case, held as under:
"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman who has
actually worked under the employer for not less than 240 days during a period of twelve months shall be deemed to
have been in continuous service for a period of one year whether or not he has in fact been in such continuous service
for a period of one year. It is enough that he has worked for 240 days in a period of 12 months, it is not necessary that
he should have been in the service of the employer for one whole year."
In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on principle
and on precedent it must be held that section 25B(2) comprehends a situation where a Workman is not in employment
for a period of 12 calendar months, but has rendered service for a period of 240 days within the period of 12
calendar months commencing and counting backwards from the relevant date, i.e. the date of retrenchment. If he has,
he would be deemed to be in continuous service for a period of one year for the purpose of section 25B and
Chapter VA.”
Thus, in view of the law laid down by the Hon‘ble Apex Court as discussed above the initial burden of proof lies
upon the Workman to show that he has completed 240 days of the service with the Respondent just preceding from
the date of his termination. Further, in respect of the employment of calculating the 240 days service in view of the
contents of Section 25-F read with Section 25-B of the I.D. Act, 1947.
29.
Now, in view of the provision contained under Section 25 F and law laid down by the Hon‘ble Apex Court,
we have to examine whether the Workman has discharged his initial burden of proof in respect of his claim of 240
days continuous service in a calendar year just preceding from the date of his termination i.e., 31.3.1997.
In this context, WW1 in his cross examination has stated that,
“I did not undergo the regular process of selection before my engagement as temporary messenger in the branch..”
“It is true that I did not work for 240 days in any year in my entire service in the bank in any branch.”
Thus, it is clear from the testimony of WW1 that the Workman had not worked for 240 days continuously in any 12
months of a calendar year just preceding from the date of his termination in the Respondent bank. Therefore,
Workman failed to establish his plea by his oral and documentary evidence that he had worked for 240 days
continuously in calendar year just preceding from the date of his termination i.e., 31.3.1997. Thus, the claim of the
Workman that he has been terminated by oral order without issuing notice or payment in lieu after termination, in
contravention of Section 25 F of Industrial Disputes Act, 1947 is not tenable. However the documents filed by the
Workman in support of his claim, number of days worked with the Respondent goes to reveal that the Workman
had worked intermittently as daily wager depending upon availability of work in branch. Workman did not file any
document of appointment letter or salary slips in support of his claim for appointment as a non-messenger in the
Respondent branch on temporary basis.
30.
Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he was
terminated from services is not correct. As the vacancies were filled up on regular basis in order of their respective
seniority the non-engagement of the Workman does not amount to termination. Further, Respondent contended that
no law provide that even though there is no work temporary employee should be continued in the bank work as the
very engagement of Workman was subject to availability of work. Therefore, the allegation that the bank has
indulged in unfair labour practice is incorrect.
31.
Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force in the
argument advanced by the Respondent that in the instant matter, Workman was not terminated from service by order
dated 31.3.1997 rather he was disengaged in view of the non-availability of the work in the branch. Further, there
was direction issued by the Head Office of the Respondent authority not to engage any daily wager Workman/
temporary Worker w.e.f. 1.4.1997. Thus, such disengagement of Workman does not amount to termination.
Moreover, the Workman failed to prove his claim that he was terminated in contravention of provision of Sec.25F of
the I.D. Act, 1947 as he failed to establish his plea by any oral or documentary evidence that he had worked for 240
days continuously in a twelve months of calendar year just preceding from date of termination i.e., 31.3.1997.
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1315
32.
Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State Bank of
India has issued the letter to Zonal Office with direction to all its branches to this effect that they have been advised
by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of 1989 and daily
wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office not to make any temporary
appointments in messengerial cadre from 1.4.1997, therefore it was directed to issue suitable instructions not to make
temporary appointments from 1.4.1997. There is no mention in this order that the Workman herein has been
terminated from service by this order.
33.
Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial network in
respect of the non-appointment of temporary employees in subordinate cadre and it has directed not to make any
temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has directed to ensure that no
temporary/casual/daily basis appointment of the petty cash. Further, it is directed to all Branch Managers that any
deviation in this regard will be viewed seriously. Thus, these circulars do not reflect that the Workman has been
terminated from service by this order.
34.
Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank by
DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman that he has
been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the service by the Respondent
is not acceptable. The evidence adduced by the Workman clearly goes to reveal that he had worked as a daily wager
for which he has been paid wages according to number of working days. As there was an order for prohibition for
engaging temporary workmen, in the bank, therefore, Workman could not be engaged by the Respondent for work
from 1.4.1997 and there after. It is settled law that the daily wagers are engaged by the employer depending upon
the availability of work and as the work was not available the Workman was not engaged further by the Respondent
management. Therefore, the Workman on the ground of number of days he had worked in the Respondent bank
cannot claim any right to reinstate him into the employment. As the Workman failed to prove the mandatory
condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the
disengagement of Workman from work can not be termed in contravention of provision contained under Sec.25F and
25 B of the I.D. Act, 1947.
Thus, this point is answered against the Workman and in favour of Respondent.
35.
Point No.III:-In this context, the Workman has contended that the management failed to implement the
selected panels during its valid tenure. The management adopted the back door methods contrary to the settlements
and filled up the vacancies. The same is evident from the proceedings dated 18.11.1993 a copy of the same is filed in
the material papers and the same may be read as part of the claim statement. Further, it is submitted that management
has to adhere the procedure issued by the Central Government, the instructions dated 16.8.1990 in the year 1995, but
same was not followed in the year 1997 despite there being vacancies. The management has followed the procedure
of calling candidates through employment exchange instead of giving chance to the empanelled candidates like the
Workman herein. The management sent call letters to the similarly situated candidates like the Workman in the month
of June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are litigating
the issue by way of dispute, the management has refused to engage those candidates, the copies of call letters issued
are filed herein along with claim petition. The Workman herein reiterates that the panels are meant for absorption but
not for termination. In view of the same a duty is cast upon the Respondent management to engage the empanelled
candidates like the Workman herein even in temporary vacancies till they are absorbed permanently in regular
vacancies.
36.
On the other hand, Respondent has contended that the Federation approached Regional Labour
Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of temporary
employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings and agreement was
arrived at between the Federation and the Management bank. It is submitted that it was agreed between the
Federation and the Management that both the panels of temporary employees and daily wagers /casual labour would
be kept alive upto March, 1997 and the vacancies as agreed to under the afore set out settlements will be filled from
both the lists concurrently. A copy of the conciliation proceedings dated 9.6.1995 signed by the parties to the dispute
is filed as a material paper. Further, it is submitted that the settlement was arrived at and an agreement was signed
between the Federation and the Management bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the
Industrial Disputes (Central) Rules 1957 which is binding on the parties. A copy of this agreement which hereinafter
may be referred to as 5th settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996
whereunder the earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it
was agreed to, by the Federation and the Management bank that both the panels of temporary employees and daily
wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies existing/arrived at as on
31.12.1994 as per the norms agreed to between the bank and Federation and that thereafter the said panels would
lapse. It was also agreed that within the framework of the above settlements the modalities about drawing names
from either the panel of temporary employees or the panel of daily wagers and casual labour would be decided
administratively on circle to circle basis depending upon the local requirements in consultation with the Federation‘s
affiliate by the Circle management. It was further agreed that all messenger real vacancies/positions in the subordinate
cadre including part-time attendants specifically provided as leave reserve will be filled by the end of 31.3.1997.
1316
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
Further, Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the
Federation‘s affiliate and the bank management regarding the fact that the exercise of identifying the messengerial
vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial vacancies were
sanctioned to the circle of the Management bank and it was agreed that these vacancies may be filled from 1989 panel
of temporary employees after effecting conversion from full time non-messengerial staff in the usual manner and the
agreement was reached upon. Further, it was agreed between the Federations affiliate and the management bank
that in terms of the settlement dated 30.7.1996 both the panels of temporary employees and daily wagers /casual
employees would lapse on 31.3.1997.
37.
The Workman has contended that the empanelled list prepared by the Respondent management for
appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is exhausted by
appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the date fixed for the lapse of
panel. It is undisputed that the date of lapse of empanelled list of Workmen has been fixed to 31.3.1997 as
mentioned in the settlement dated 30.7.1996, and agreed between the parties. It is settled law that and once the life
of panel list lapses on the date as agreed between the parties it cannot be extended beyond that date. In the instant
case the panel list of the workmen was valid upto 31.3.1997 in view of the terms and conditions enumerated in the 5th
Settlement entered into between the parties. As the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of
India and State Bank of India Staff Federation through 5th Settlement, the Workman is not competent to challenge the
same.
In this context I would like to take reference of the decision of the apex court in the case of Syndicate Bank and Ors
vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court have held:-
“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work as
temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government of India in
respect of such temporary appointments, the Calcutta regional office of the appellant Bank issued a circular to all of
its branches on 14.8.1982, instructing all the branches under it to discontinue the old practice from 1.6.1982 and
appoint only empanelled candidates. The regional office was to prepare a panel of eligible candidates, after calling
names from the local/district employment exchange, and split it up branch-wise. Following that new procedure yearly
panels were prepared thereafter. Names of the Respondents were for the first time included in the panel prepared for
the period 7.2.1987 to 6.2.1988. By its letter dated 7.2.1987 the Bank had informed the Respondents that the panel
was valid for one year only and that inclusion of their names in the panel was not to confer on them any right to seek
permanent appointment in the service of the bank. Considering the object with which the panel was prepared and the
fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get any right,
because of inclusion of their names in the said panel, for permanent absorption in the service of the Bank. Whatever
conditional right they had came to an end with the expiry of the panel. The claim of the Respondents, as contained in
the writ petition was thus misconceived and therefore the learned single Judge and the Division Bench, when it first
decided the appeal, were right in dismissing the writ petition and the appeal respectively.”
Thus, in view of the above law laid down by the Hon‘ble Apex Court and in view of the terms and conditions of the
5th Settlement the contention of the Workman that empanelled list should continue even after 31.3.1997 till the last
Workman in the panel is absorbed is not tenable. The contention of the Workman is baseless in view of recital in
the settlement. Therefore, in view of the fore gone discussion and finding given at Point No. I regarding binding
nature of Settlements and terms and conditions enumerated therein, in view of the provision contained u/s.18(1) of the
I.D. Act, 1947, I am of the considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement
dated 30.7.1996 and plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has
no legal force and same is untenable.
38.
Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of India and
State Bank of India Staff Federation and in that settlement it was agreed that both the panels of temporary employees
and daily wagers/ casual employees will be used for filling vacancies existing as on 31.12.1994 as per the norms
agreed between the bank and the Federation. These empanelled workmen were to be given a chance for permanent
appointment in the bank against vacancies arising up to December 1994 whereas the daily wagers/ casual employees
were to be considered against the vacancies arise from January 1995 to December 1996, whereby the said panel
would lapse. It was agreed that the vacancies falls upto 31.3.1997 shall be filled before the empanelled list is
allowed to lapse. Thus, the claim of the Workman to the post of permanent non-messenger in the Respondent
management was subject to the availability of the sanctioned post and vacancies arising upto 31.3.1997. The
workmen given chance to the permanent post were seniors in number of working days in panel list and Workman
herein was junior to those workmen. Therefore, Workman could not be given absorption to permanent post being
junior to other workmen in the panel list.
39.
In this context the Workman witness WW1 was cross examined by the Respondent counsel and in the cross
examination the witness WW1 states:-
“I applied for appointment as Non-Messenger, in response to the advertisement issued by the bank and the union in
the year 1989…. Further, witness states, The panel was prepared basing upon the number of days of service put in by
the temporary employees. Some of the temporary employees whose names were included in the panel were given
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1317
regular appointment in the bank in order of their seniority in the panel…. Further witness states, It is true that I am
not having any documents to show that any of my juniors are continuing in the service of the bank.”
Thus, from the above statement of the Workman witness WW1 it is clear that the panel was prepared in terms of
various settlements entered into between Staff Federation of State Bank of India and State Bank of India and it was
prepared on the basis of number of days of work put in by the temporary employees. Further, the Workman himself
admitted that some of the temporary employees whose names were included in the panel were given regular
appointment in the bank in order of their seniority in the panel and he is not having any document to show that any
person who worked for less number of days than the Workman was given appointment in the bank. Therefore, the
allegation of the Workman that the regular appointment has been made by the bank from the panel list in breach of
the terms of the settlement and violation of seniority of panel list is not proved by this evidence of WW1. Thus,
there is no evidence on record that bank has given the appointment to the temporary employees as well as daily
wagers from the panel list 1989 and 1992 in breach of seniority of the temporary employees in the list. There is no
evidence of jumbling in the panel list to make appointment of any permanent Workman in breach of the seniority.
Therefore, I am constrained to hold that the Respondent Management has appointed the workmen from panel list in
order of seniority and there is no jumbling of workmen in the panel list before it got lapsed on 31.3.1997.
40.
However, Workman has taken the plea that the panels of Workmen for absorption in the employment of the
Respondent banks (panels of temporary employees and daily wagers) has been lapsed on 31.3.1997 in contravention
of terms of settlement as the object of preparing the entire empanelment of temporary and daily wagers was to
provide them permanent employment and till the both the panel lists exhausted the panel list cannot be lapsed on
31.3.1997 and the date of lapsing of the panel on 31.3.1997 has been fixed by the Respondent arbitrarily without any
authority.
41.
In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated 30.7.1996
was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial Dispute (Central) Rules
1957. This settlement has been entered into by the competent parties and in this settlement parties thereto agreed
that both the panels of temporary employees and daily wagers/casual employees will lapse on 31.3.1997. Thus the
date of lapse of panel was fixed by both the parties with consensus under the settlement dated 30.7.1996 and same is
binding upon the Workman under the provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding
force of the settlement dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at
finding in Point No.I of this award. However, the legality and validity of the aforementioned settlement has not been
challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of panel
i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of Workman for
his absorption to the permanent post it is settled law that the Workman can not claim his regularization to permanent
post merely on the basis of number of working days.
42.
In this context the reference of the decision of Hon‘ble Supreme Court in the case of Oil and Natural Gas
Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant therein Hon‘ble
Supreme Court have has laid down principle regarding regularization of the Workman on permanent posts. Hon‘ble
Supreme Court have laid down the prepositions of regularization of the workmen to permanent post is as under:-
―(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction to order
regularisation, where such a direction would in the context of public employment offend the provisions contained
in Article 14 of the Constitution;
(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the status of
permanency continues to exist in circumstances where the employer has indulged in an unfair labour practice by not
filling up permanent posts even though such posts are available and by continuing to employ workmen as temporary
or daily wage employees despite their performing the same work as regular workmen on lower wages;
(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no posts are
available, a direction to grant regularisation would be impermissible merely on the basis of the number of years of
service;
(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it would be open
to workmen who have been deprived of the same benefit at par with the workmen who have been regularised to make
a complaint before the Labour or Industrial Court, since the deprivation of the benefit would amount to a violation of
Article 14; and
(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth Schedule of the
ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and continuing them for years,
with the object of depriving them of the benefits payable to permanent workmen.
Thus, in view of the principles laid down by the Hon‘ble Supreme Court as discussed above, in the instant matter the
Workman utterly failed to prove his claim by adducing any documentary or oral evidence that the employer has
indulged in unfair labour practice by not filling the permanent posts even though such posts are available and by
continuing to employ workmen as temporary or daily wage employees despite their performance was the same work,
1318
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
as regular workmen on lower wages.
43.
Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up from the
panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled. Further, it is
contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997, hence, there is no
occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed to prove contrary by any
evidence to the aforesaid contention of the Respondent that the vacancies were existing as on 31.3.1997 and the
workman was not given absorption to the permanent post in order of his seniority. It is settled law that the power to
create permanent or sanctioned post lies outside the judicial domain and where no posts are available, a direction to
grant regularization would be impermissible merely on the basis of the number of years of service. Therefore, the
claim of the workman on this ground also not acceptable.
44.
Further, as per the of settlement, panel was prepared for absorption of the workmen on the permanent posts
has already been lapsed on 31.3.1997 and the vacancies existing and arising upto 31.12.1994 and upto 31.3.1997 as
settlement dated 30.7.1996 has been filled up from the panel by appointing the workmen as per seniority in the panel
list. Workman witness WW1 in his cross examination has himself admitted this fact that, some of the temporary
employees whose names were included in the panel were given regular appointment in the bank in order of their
seniority in the panel. The Workman failed to show that there was any breach of terms of settlement has been
committed by the Respondent in appointment to permanent post from aforesaid panel list.
45.
As discussed in preceding paragraph of this Award, the life of the panel has not been extended beyond
31.3.1997, by any further settlement hence, the panel list in which name of the Workman was included got expired
on 31.3.1997. It is not the case of the Workman that Respondent has regularized similarly situated workmen either in
the scheme or otherwise and the Workman has been deprived of same benefit on par with those workmen or the
vacancies remained unfilled on the date of lapse of panels i.e., 31.3.1997, Industrial Tribunal has no jurisdiction to
extend the date of lapse of panel i.e., 31.3.1997. This Tribunal can not order for regularization of workmen to the
permanent post in contravention of the provision of Article 14 of the Constitution of India.
In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007 date of
judgement 13.12.2007, Hon‘ble Supreme Court have held:-
“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are governed by a
statute and statutory rules. No appointment can be made by a Local Authority without following the provisions of the
recruitment rules. Any appointment made in violation of the said rules as also the constitutional scheme of equality as
contained in Articles 14 and 16 of the Constitution of India would be a nullity.
9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was permissible, but by
reason thereof an employee cannot claim any right to be permanently absorbed in service or made permanent in
absence of any statute or statutory rules. Merely because an employee has completed 240 days of work in a year
preceding the date of retrenchment, the same would not mean that his services were liable to be regularized.”
Therefore, in view of the law laid down by the Hon‘ble Apex Court, the claim of the Workman for absorption merely
on the basis of number of day of work in the Respondent bank Branch is not acceptable. As regard plea of the
Workman that the Workman should have been given employment even after 31.3.1997 as temporary Workman, it is
the discretion of Respondent to engage the Workman depending upon availability of work and this Tribunal can not
direct the Respondent to engage the Workman in the absent of such rule/scheme.
46.
In view of principle laid down by Hon‘ble Apex Court as discussed above, in the instant matter Workman
utterly failed to establish the fact of rendering continuous service for a period of 240 days of service within a period
of 12 calendar months commencing and coming backward from relevant date i.e., the date of retrenchment, if has he
would be denied to be in continuous service for a period of one year. Therefore, the provision contained under
Sec.25F of retrenchment is not applicable to Workman.
Counsel for Workman has relied upon number of decisions of Hon‘ble High Court and Hon'ble Supreme Court and
few of them are discussed herein:-
In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon‘ble Supreme Court have
held: -
“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to conform to Article
14 of the Constitution of which non-arbitrariness is a significant facet. There is no unfettered discretion in public law:
A public authority possesses powers only to use them for public good. This impose the duty to act fairly and to adopt
a procedure which is `fairplay in action'. Due observance of this obligation as a part of good administration raises a
reasonable or legitimate expectation in every citizen to be treated fairly in his interaction with the State and its
instrumentalities, with this element forming a necessary component of the decision-making process in all State
actions. To satisfy this requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and
give due weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or else
that unfairness in the exercise of the power may amount to an abuse or excess of power apart from affecting the bona
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1319
fides of the decision in a given case. The decision so made would be exposed to challenge on the ground of
arbitrariness. Rule of law does not completely eliminate discretion in the exercise of power, as it is unrealistic, but
providers for control of its exercise by judicial review.”
In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP No.193/1997,
therein Hon‘ble High Court have held,
―Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that it was a
permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his services were not
liable to be terminated and he was to be regularised into service on permanent basis. Shastry award warrants that no
temporary appointment can be made to a permanent post. But the matter is now covered by two division bench
judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in W.A. No.270 of 1982. The ratio decided in the
two judgements is to the effect that there cannot be any mandate to appoint employees on permanent basis when the
requirement was for appointment on temporary basis. But it is held in the said judgements that when a temporary
appointee is ousted from service and not for misconduct and, if again temporary appointment is to be made, then, the
case of such temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of the
Act.”
In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein Hon‘ble
Supreme Court have held: -
“49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities must
consider his case for regularization provided he is eligible and qualified according to the rules and his service record
is satisfactory and his appointment does not run counter to the reservation policy of the state.”
In the above cited judgements by the Workman the facts of the case are different hence do not apply to instant case of
Workman.
47.
On the other hand, in support of his contention Respondent has examined witness MW1 and MW1 in chief
examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were entered into between
the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994 for those temporary employees
who has worked on scale wages. Further, MW1 states that two different panels for messengers and non-messengers
as per the eligibility criteria prescribed by the bank. There are four modules in Andhra Pradesh, and they are
Hyderabad, Tirupathi, Vijayawada and Visakhapatnam. MW1 states that the temporary employees so empanelled
were given permanent absorption depending upon the vacancies so arise strictly in terms of the settlement. MW1
states that on 9.6.1995 conciliation proceeding was held before the RLC(C), Hyderabad and in said proceedings it was
decided that the panels will be kept live up to 31.3.1997 and vacancies will be filled from both the lists concurrently.
A copy of the said minutes of proceedings is Ex.M5. Further, MW1 states that on 30.7.1996 another settlement was
entered between the SBI and All India SBI Staff Federation providing for filling up of the vacancies arising up to
December 1994 in respect of subordinate cadre and daily wage /casual wage employees out of panel so prepared were
to be considered against vacancies arising from January 1995 to December 1996, thereafter the said panels lapse.
MW1 states that it was also agreed that all the non- messenger positions in subordinate cadre including part time
attendants specially provided as leave reserve will be filled before 31.3.1997 and as regards to non-messengerial
positions it is agreed that all such posts sanctioned and fallen vacant up to 31.3.1997 shall be filled before the
empanelled list is allowed to lapse. Thus, in both the cases empanelled list were lapsed on 1.4.1997. Ex.M6 is the
copy of the settlement dated 30.7.1996. Further, witness states that on 27.2.1997 a memorandum of understanding
was reached between the SBI and SBI Staff Federation providing that both the panels above mentioned will lapse on
31.3.1997. Ex.M7 is the copy of the memorandum of understanding and Ex.M8 is the copy of the statements giving
the particulars of 1989 non-messenger panel, Ex.M9 is the copy of the statement of 1989 non- messenger panel,
Ex.M10 is the copy of statement of 1992 panel. Further, witness states that petitioner was included in the 1989
panel. As the existing vacancies at that time were exhausted and his turn did not come, he could not be given
permanent employment in the bank as per the agreements. All the appointments were made strictly in accordance
with the settlements reached from time to time between SBI and SBI staff federation and as per seniority, number of
days of temporary service put in by them in the bank in the given period. Further, MW1 states petitioner was not
sponsored by any employment exchange he did not undergo the regular process of selection required for appointment
as a regular non-messenger the petitioner has not worked for 240 days in any year in his entire temporary service in
the bank. The petitioner and other temporary employees were terminated from service by the bank. Further, MW1
states that the vacancies were filled up on regular basis with the temporary employees from the panels and these
panels were expired in terms of the settlements so reached and there were no vacancies to absorb such employees.
Thus, witness MW1 has proved the documents, Ex.M1 to Ex.M12 and also contentions made in the counter.
However, MW1 was cross examined by the Petitioner Counsel. But nothing has been elicited in his cross
examination so as to discredit the testimony of the witness MW1 as regards the date of lapse of both the panels on
31.3.1997 and reasons assigned for non-absorption of the Petitioner from the panel list to the permanent post.
Moreover, the witness MW1 was re-examined by the Respondent and the witness MW1 states that panels were
expired in terms of the settlement send absorptions to the extent of the available vacancies were made. There was no
termination of any temporary messenger as such, but their services were not utilized after the cutoff date as the
1320
THE GAZETTE OF INDIA : MARCHY 7, 2026/PHALGUNA 16, 1947
[PART II—SEC. 3(ii)]
available vacancies were already filled up and most of these Petitioners were not in the service of the bank as on the
date of the expiry date of the panels. Therefore, in view of the aforesaid testimony of the MW1 in re-examination in
the absence of cross examination remained uncontraverted, the claim of the Workman that he was entitled for
absorption in permanent post in the branch of Respondent Management on the basis of panel list is found not
established.
This point is answered against the Workman.
48.
Point No. IV: - In view of the discussion and finding given at Point Nos. I, II and III, the Workman is not
entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.
This Point is answered accordingly.
ORDER
In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating the
services of Sri Y. Rajender Temporary/ Non-. Messenger by way of oral orders w.e.f. 31.3.1997 is justified. Hence,
the Petitioner is not entitled for any relief as prayed for. The claim statement filed by Workman sans merit, hence,
dismissed. Reference is answered accordingly.
Award is passed accordingly. Transmit.
Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed
by me on this the 3rd day of February, 2026.
IRFAN QAMAR, Presiding Officer
Appendix of evidence
Witnesses examined for the
Witnesses examined for the
Petitioner
Respondent
WW1: Sri Y. Rajender
MW1: Sri Aluru Rama Rao
Documents marked for the Petitioner
Ex.W1: Photocopy of Service Certificate
Ex.W2: Photocopy of Notification.
Ex.W3: Photocopy of call letter for Interview.
Ex.W4: Photocopy of the panel list.
Ex.W5: Photocopy of the Service Certificate
Ex.W6: Photocopy of the Service Certificate
Ex.W7: Photocopy of the Service Certificate
Ex. W8: Photocopy of the Service Certificate
Ex.W8A: Photocopy of the Voucher period for the month of April 1997.
Ex.W9: Photocopy of the circular.
Ex.W10: Photocopy of the circular dated 14.07.1999.
Documents marked for the Respondent
Ex.M1:
Photocopy of settlement between Respondent and All India State Bank of India Staff Federation
dt.17.11.87
Ex.M2:
Photocopy of settlement between Respondent and All India State Bank of India Staff Federation
dt.16.7.88
Ex.M3:
Photocopy of settlement between Respondent and All India State Bank of India Staff Federation
dt.27.10.1988
[भाग II—खण् ड 3(ii)]
भारत का रािृत्र : मार्च 7, 2026/फालगुन 16, 1947
1321
Ex.M4:
Photocopy of settlement between Respondent and All India State Bank of India Staff Federation
dt.9.1.1991
Ex.M5:
Photocopy of conciliation proceedings before the Regional Labour Commissioner(C) dt.9.6.1995
Ex.M6:
Photocopy of settlement between Respondent and All India State Bank of India Staff Federation
dt.30.7.1996
Ex.M7:
Photocopy of Memorandum of understanding dt. 27.1.1997
Ex.M8:
Photocopy of statements giving the particulars of 1989 messenger panel.
Ex.M9:
Photocopy of statement of 1989 Non-messenger panel
Ex.M10:
Photocopy of statement of 1992 panel
Ex.M11:
Photocopy of order of Hon‘ble High Court in WA No.86/98 dt. 1.5.98
Ex.M12:
Photocopy of order in SLP No.11886-11888 of 1998 dated 10.8.98.
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: 2026.03.20 15:28:57 +05'30'