Are workmen employees of the contractor alone where the labour contract under the Contract Labour (Regulation and Abolition) Act, 1970 is genuine and neither sham nor nominal?
Coram: Justice C.V.Karthikeyan · Justice R.Sakthivel
Workmen are employees of the contractor alone where the labour contract is genuine and neither sham nor nominal.
Yes. Workmen are employees of the contractor alone where the labour contract is genuine and neither sham nor nominal. Both the management and the contractors were registered under the Contract Labour Act and no prohibition notification had been issued under Section 10(1), so the regularisation principle in Steel Authority of India did not apply. Once the Labour Court and the Single Judge had concurrently found the contract genuine, the only conclusion was that the workmen were employees of the contractor, and the writ court would not sit in review over concurrent findings of fact.
Contract Labour (Regulation and Abolition) Act, 1970 — S.10(1) — Industrial Disputes Act, 1947 — S.2-A — Contract labour — Employer-employee relationship with the principal employer — Genuine labour contract — Burden of proof — Adverse inference — Relief not sought — Permanent status — Contract labour — Genuine contract — Principal employer — Held: Where both the principal employer and the contractor are registered under the Contract Labour Act, no prohibition notification under s.10(1) has issued and the labour contract is genuine and neither sham nor nominal, the workmen are employees of the contractor and of none other. Kirloskar Brothers Ltd. v. Ramcharan, followed; SAIL v. National Union Waterfront Workers, distinguished. (¶50, 62, 75, 82) Industrial law — Burden of proof — Adverse inference — Held further: The burden of proving an employer-employee relationship lies on the person who sets up that plea. An adverse inference under s.114(g) of the Evidence Act for non-production cannot be drawn where no finding is rendered that the documents are required and no notice to produce under Or.XII r.8 CPC was issued. Workmen of Nilgiri Coop. Marketing Society, followed. (¶65, 66, 73, 76, 77) Writ jurisdiction — Relief never sought — Held further: The learned Single Judge could not declare the workmen permanent or fasten joint compensation on the principal employer on a relief never sought before the Labour Court. Management's appeals allowed; workmen's appeals dismissed. (¶79, 80, 81, 83, 84)
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