LexStreak
Read free →
Madras High Court· 11 September 2026

Can an adverse inference under Section 114(g) of the Indian Evidence Act, 1872 be drawn where no finding is rendered that the documents are required?

Management of Tractor and Fa v. M.Saravanan
WA(MD).2864/2025 · 2026:MHC:3761 · W.A.(MD)No.2864 of 2025
Coram: Justice C.V.Karthikeyan · Justice R.Sakthivel
🔖 Save this judgment🔔 Follow Section 10(1) Contract Labour (R…📬 Get today's judgments
View the original judgment PDFFree to read. To download it — or the LexStreak typeset copy with the headnote and Points of Law — create an account; downloads are part of the Pro plan.
Answer

An adverse inference under Section 114(g) cannot be drawn where no finding is rendered that the documents are required.

No. An adverse inference under Section 114(g) cannot be drawn where no finding is rendered that the documents are required. Before such a presumption, the Court must find that the documents are relevant and would, if produced, establish the case of the party seeking them, and a notice to produce under Order XII Rule 8 CPC should issue. The Labour Court had merely allowed the application by a docket order, so the management's failure to produce its registers did not advance the workmen's case.

Headnote

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)

Headnote

You've used your free headnotes this month

The answer above and the Court's own paragraphs stay free. LexStreak's full headnote on this judgment needs an account — a free one opens it again.

Create my free account
In the Court's own words
Paragraph 65It is to be surmised that arguments were focussed on the presumption to be drawn under Section 114(g) of the Indian Evidence Act, 1977. However, before such a presumption is to be drawn, the Court should render a finding that the documents are relevant and that the documents if produced, would establish that the workmen were engaged directly by the management/TAFE and that therefore, such records are required.
Paragraph 66Further, a notice under Order XII Rule 8 CPC should have been issued to produce the documents. None of such procedure had been followed. In the order in the Interlocutory Application, the Labour Court had not rendered any finding that the documents were required for proper adjudication of the issues under consideration. A docket order alone was passed that the interlocutory application stood allowed. No particular finding was given by the Labour Court. We are of the firm opinion that in the absence of any finding by the Labour Court on the requirement of the documents, no inference can be drawn that the said documents, if produced would establish the case of the workmen that they were directly employed by the management/TAFE.
Paragraph 77We hold that mere reliance on the failure of TAFE to produce documents, as directed in the interlocutory application, would not advance the case of the workmen. Even the procedure to be followed to draw inference against TAFE had not been followed. A notice to produce documents had not been issued. The Labour Court had not rendered a finding that these documents are required to determine the issue of fact. It was merely a docket entry allowing the said application. There is no evidence to establish direct relationship of employer-employee between the workmen and the management.
Acts & Sections
Section 10(1) Contract Labour (Regulation and Abolition) Act, 1970Section 114(g) Indian Evidence Act, 1872Order XII Rule 8 Code of Civil Procedure, 1908

One judgment a day. That's the whole habit.

Read the full text of Management of Tractor and Fa v. M.Saravanan — and get the Madras High Court's output as a five-minute daily read, with plain-language headnotes and the questions each judgment settles.

Create my free account

Free forever plan · 30 seconds · data stays in India

Open the full judgment →

Also decided in this judgment
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?Does the burden of proving an employer-employee relationship lie on the person who sets up that plea?Can a relief of permanent status never sought by the workmen before the Labour Court be granted by the Writ Court?
Plain-language answer prepared by the LexStreak Editorial Desk — verify against the judgment. Source: Madras High Court. Corrections