{"id":123763,"date":"2008-10-20T00:00:00","date_gmt":"2008-10-19T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/sunflag-iron-and-steel-company-ltd-vs-state-of-maharashtra-on-20-october-2008"},"modified":"2018-07-16T08:32:53","modified_gmt":"2018-07-16T03:02:53","slug":"sunflag-iron-and-steel-company-ltd-vs-state-of-maharashtra-on-20-october-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/sunflag-iron-and-steel-company-ltd-vs-state-of-maharashtra-on-20-october-2008","title":{"rendered":"Sunflag Iron And Steel Company Ltd vs State Of Maharashtra on 20 October, 2008"},"content":{"rendered":"<div class=\"docsource_main\">Bombay High Court<\/div>\n<div class=\"doc_title\">Sunflag Iron And Steel Company Ltd vs State Of Maharashtra on 20 October, 2008<\/div>\n<div class=\"doc_bench\">Bench: D.D. Sinha, Prasanna B. Varale<\/div>\n<pre>                                    1\n\n          IN THE HIGH COURT OF JUDICATURE AT BOMBAY\n\n\n\n\n                                                                            \n                       NAGPUR BENCH : NAGPUR\n\n\n\n\n                                                    \n                   WRIT PETITION NO.3147 OF 2008\n\n\n\n\n                                                   \n    Sunflag Iron and Steel Company Ltd.,\n    33, Mount Road, Sadar, Nagpur, through\n\n\n\n\n                                        \n    its Sr. Vice President (HRM).                 ...      Petitioner\n\n\n              - Versus -\n                           \n                          \n    1) State of Maharashtra, through Secretary,\n        Department of Labour, Mantralaya,\n         \n\n\n        Mumbai.\n      \n\n\n\n    2) Assistant Registrar (Unions),\n        Bombay Industrial Relations Act, 1946,\n\n\n\n\n\n        O\/o Additional Commissioner of Labour,\n        Bhonsale Chamber, Civil Lines, Nagpur-1.\n\n\n\n\n\n    3) Bhartiya Janta Kamgar Mahasangh,\n        Tilak Putla Karyalay, Mahal, Nagpur,\n        through its General Secretary.\n\n\n\n\n                                                    ::: Downloaded on - 09\/06\/2013 14:00:08 :::\n                                             2\n\n    4) Sunflag Iron and Steel Mazdoor Sabha,\n\n\n\n\n                                                                              \n        At and Post Warthi, Taluka Mohadi,\n        District Bhandara, through its General\n\n\n\n\n                                                      \n        Secretary.                              ...    Respondents\n\n\n                         -----------------\n\n\n\n\n                                                     \n    Shri V.R. Manohar and Shri M.G. Bhangde, Senior Advocates\n\n\n\n\n                                               \n    assisted by Shri R.B. Puranik, Advocate for the petitioner.\n    Mrs. B.H. Dangre, Additional Government Pleader for the\n    respondent nos. 1 and 2.\n                            \n                           \n    Shri A.M. Gordey, Advocate for the respondent no.3.\n    Shri D.S. Thakur, Advocate for the respondent no.4.\n                         ----------------\n         \n\n\n                Date of reserving the judgment        : 18\/09\/2008\n      \n\n\n\n                Date of pronouncing the judgment : 20 \/10\/2008\n\n\n\n\n\n                       CORAM : D.D.SINHA AND P.B. VARALE, JJ.\n                        DATED : OCTOBER 20, 2008\n\n\n\n\n\n    JUDGMENT (PER D.D.SINHA, J.) :\n<\/pre>\n<p>              Rule returnable forthwith. Heard finally by consent of<\/p>\n<p><span class=\"hidden_text\">                                                      ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                                      3<\/span><\/p>\n<p>    Shri Manohar and Shri Bhangde, learned Senior Counsel for the<\/p>\n<p>    petitioner, Mrs. Dangre, learned Additional Government Pleader<\/p>\n<p>    for the respondent nos.1 and 2, Shri Gordey, learned Counsel for<\/p>\n<p>    the respondent no.3, and Shri Thakur, learned Counsel for the<\/p>\n<p>    respondent no.4.\n<\/p>\n<p>    2)        Shri   Manohar,    learned    Senior   Counsel         for     the<\/p>\n<p>    petitioner, submitted that the petitioner is a limited Company<\/p>\n<p>    incorporated under the Companies Act, 1956 and deals in<\/p>\n<p>    manufacture and sale of steel alloys. The establishment of the<\/p>\n<p>    petitioner is governed by the provisions of the Bombay Industrial<\/p>\n<p>    Relations Act, 1946 (for brevity, hereinafter referred to as &#8220;the Act<\/p>\n<p>    of 1946&#8221;). There are six hundred permanent employees in the<\/p>\n<p>    employment of the petitioner. It is the case of the petitioner that<\/p>\n<p>    it has outsourced some of its peripheral activities to various<\/p>\n<p>    Contractors, who employ their own employees for the purpose of<\/p>\n<p>    execution of work under contract undertaken by them. For this<\/p>\n<p>    purpose, the petitioner has registered itself as a principal<\/p>\n<p>    employer under Section 7 of the Contract Labour (Regulation and<\/p>\n<p><span class=\"hidden_text\">                                                     ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                                     4<\/span><\/p>\n<p>    Abolition) Act, 1970 (for brevity, hereinafter referred to as &#8220;the<\/p>\n<p>    Act of 1970&#8221;). Similarly, the contractors, who employ twenty or<\/p>\n<p>    more employees, have also obtained licence under Section 13 of<\/p>\n<p>    the Act of 1970.\n<\/p>\n<p>    3)        Learned Senior Counsel Shri Manohar contended that<\/p>\n<p>    till 18.3.1998, five employees elected under Section 28 of the Act<\/p>\n<p>    of 1946, were acting as representatives of the employees.\n<\/p>\n<p>    However, with effect from 18.3.1998, the respondent no.4 Union<\/p>\n<p>    was registered as a representative Union for establishment of the<\/p>\n<p>    petitioner in the local area. The petitioner since then has entered<\/p>\n<p>    into several agreements\/settlements with the respondent no.4<\/p>\n<p>    Union. These agreements\/settlements are applicable only to the<\/p>\n<p>    employees of the petitioner.\n<\/p>\n<p>    4)        It was further contended by learned Senior Counsel<\/p>\n<p>    Shri Manohar that respondent no.3 Union made application to<\/p>\n<p>    the respondent no.2 Assistant Registrar (Unions) under Section 16<\/p>\n<p>    of the Act of 1946 for registering itself as a representative Union<\/p>\n<p><span class=\"hidden_text\">                                                   ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                                     5<\/span><\/p>\n<p>    in place of respondent no.4 Union. The respondent no.2 asked<\/p>\n<p>    the petitioner vide communication dated 7.3.2008 to submit list<\/p>\n<p>    of its own employees as well as employees engaged by various<\/p>\n<p>    Contractors for execution of work under contract. The petitioner<\/p>\n<p>    accordingly submitted the list vide communication dated<\/p>\n<p>    17.3.2008.\n<\/p>\n<p>    5)<\/p>\n<p>              It was submitted     by Shri Manohar, learned Senior<\/p>\n<p>    Counsel for the petitioner, that petitioner vide letter dated<\/p>\n<p>    31.5.2008 brought to the notice of the respondent no.2 that it has<\/p>\n<p>    registered itself as a principal employer under the Act of 1970 and<\/p>\n<p>    the employees of the Contractor are not the employees of the<\/p>\n<p>    petitioner. The respondent no.2 vide his letter dated 6.6.2008<\/p>\n<p>    informed the petitioner that the spot inspection and verification<\/p>\n<p>    would be postponed only by ten days.        The respondent no.2<\/p>\n<p>    further informed the petitioner that since employees of Contractor<\/p>\n<p>    fall within the definition of &#8220;employee&#8221; under the Act of 1946, it<\/p>\n<p>    would not be possible for him to confine the verification<\/p>\n<p>    proceedings only to the employees of the petitioner.                  The<\/p>\n<p><span class=\"hidden_text\">                                                   ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                                       6<\/span><\/p>\n<p>    petitioner vide communication dated 7.6.2008 reiterated its<\/p>\n<p>    objection for inclusion of employees of the Contractor in spot<\/p>\n<p>    inspection and verification procedure.       The respondent no.2<\/p>\n<p>    informed the petitioner that the request made by the petitioner<\/p>\n<p>    for exclusion of the employees of the Contractor is rejected. The<\/p>\n<p>    respondent no.2 heard the parties and passed the impugned order<\/p>\n<p>    dated 1.7.2008, which reads thus :\n<\/p>\n<blockquote><p>              &#8220;1.        The present application dated 1 July 2008 is<\/p>\n<p>              hereby rejected as the contract labour working in the<br \/>\n              factory of the applicant are the employees as per the<\/p>\n<p>              provisions of the BIR Act.\n<\/p><\/blockquote>\n<blockquote><p>              2.         The verification of members of both Unions<\/p>\n<p>              named above include the contract labour as they are<br \/>\n              employees.&#8221;\n<\/p><\/blockquote>\n<p>    Being aggrieved by the said order passed by the respondent no.2,<\/p>\n<p>    the petitioner filed the present petition.\n<\/p>\n<p>    6)        Shri   Manohar,     learned    Senior   Counsel         for     the<\/p>\n<p><span class=\"hidden_text\">                                                      ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                                      7<\/span><\/p>\n<p>    petitioner, contended that as per Section 3(13)(a) and 3(14)(e)<\/p>\n<p>    of the Act of 1946, a person employed by the Contractor is an<\/p>\n<p>    employee of the principal employer. However, in the year 1970,<\/p>\n<p>    the Parliament enacted the Act of 1970, which occupies the entire<\/p>\n<p>    field relating to contract labour. The provisions of the Act of 1970<\/p>\n<p>    have been interpreted by the Apex Court in the case of <a href=\"\/doc\/1160961\/\">Steel<\/p>\n<p>    Authority of India Limited and others v. National Union<\/p>\n<p>    Waterfront Workers and others<\/a> {(2001) 7 SCC 1} and it has been<\/p>\n<p>    held   that the employees of the Contractor        engaged by the<\/p>\n<p>    principal employer to get the work done under the contract are<\/p>\n<p>    the employees of the Contractor and not that of the principal<\/p>\n<p>    employer.\n<\/p>\n<p>    7)          Learned   Senior   Counsel   Shri   Manohar           further<\/p>\n<p>    contended that in the case of <a href=\"\/doc\/284849\/\">N.T.P.C. and others vs. Badri Singh<\/p>\n<p>    Thakur and others<\/a> (2008 (11) SCALE 275), the Apex Court has<\/p>\n<p>    held that the provisions of the Act of 1970 shall prevail over the<\/p>\n<p>    provisions of the M.P. Industrial Relations Act, 1960, which are<\/p>\n<p>    pari materia with the provisions of Section 3(13)(a) and 3(14)(e)<\/p>\n<p><span class=\"hidden_text\">                                                    ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                                      8<\/span><\/p>\n<p>    of the Act of 1946. It was submitted that the employees of the<\/p>\n<p>    Contractor engaged by the principal employer for doing the work<\/p>\n<p>    under the contract are not the employees of the principal<\/p>\n<p>    employer and, therefore, could not be included while conducting<\/p>\n<p>    verification of the employees of the principal employer.\n<\/p>\n<p>    8)        Shri   Manohar,    learned   Senior   Counsel         for     the<\/p>\n<p>    petitioner, further argued that the Apex Court in the case of U.P.\n<\/p>\n<p>    State Electricity Board vs. Shiv Mohan Singh and another {(2004)<\/p>\n<p>    8 SCC 402} has approved the view expressed by the learned<\/p>\n<p>    Single Judge of the Rajasthan High Court, whereby it was held<\/p>\n<p>    that the provisions of the Apprentices Act, 1961 being subsequent<\/p>\n<p>    law, shall prevail over the provisions of the Industrial Disputes<\/p>\n<p>    Act, 1947, which is prior and general law. It was contended that<\/p>\n<p>    in the said case, the controversy was that under the Apprentices<\/p>\n<p>    Act, 1961, an apprentice was not a workman whereas under the<\/p>\n<p>    Industrial Disputes Act, 1947, an apprentice is a workman. This<\/p>\n<p>    conflict was resolved by the Apex Court by confirming the<\/p>\n<p>    decision of the Rajasthan High Court where it has been held that<\/p>\n<p><span class=\"hidden_text\">                                                    ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                                       9<\/span><\/p>\n<p>    the provisions of the Apprentices Act, 1961 shall prevail over the<\/p>\n<p>    provisions of Industrial Disputes Act, 1947.        It was, therefore,<\/p>\n<p>    contended by learned Senior Counsel Shri Manohar that in the<\/p>\n<p>    instant case, the provisions of the Act of 1970 shall prevail and in<\/p>\n<p>    view of decisions of the Apex Court referred to hereinabove as<\/p>\n<p>    well as other decisions, which were cited, the impugned order is<\/p>\n<p>    not sustainable in law.\n<\/p>\n<p>    9)        Mrs. Dangre, learned Additional Government Pleader<\/p>\n<p>    for the respondent nos. 1 and 2, submitted that respondent no.3<\/p>\n<p>    Union had made an application under Section 16 of the Act of<\/p>\n<p>    1946 for registering itself as a representative Union in place of<\/p>\n<p>    respondent no.4 Union and, therefore, respondent no.2 initiated<\/p>\n<p>    spot enquiry and verification proceedings by directing to count<\/p>\n<p>    employees in the petitioner establishment including employees of<\/p>\n<p>    the Contractor. Being aggrieved by this action of the respondent<\/p>\n<p>    no.2, the petitioner filed the present petition.\n<\/p>\n<p>    10)       It was further contended by Mrs. Dangre, learned<\/p>\n<p><span class=\"hidden_text\">                                                       ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                                       10<\/span><\/p>\n<p>    Additional Government Pleader for the respondent nos. 1 and 2,<\/p>\n<p>    that the provisions of Act of 1946 and Act of 1970 operate in<\/p>\n<p>    different areas and these provisions do not cover the field<\/p>\n<p>    occupied by each other. It was submitted that both the statutes<\/p>\n<p>    are enacted by taking recourse to Entry 24 of the Concurrent List<\/p>\n<p>    (List III) and the contention of the learned Senior Counsel for the<\/p>\n<p>    petitioner that both the statutes being enacted by taking recourse<\/p>\n<p>    to the said Entry, subsequent enactment of the Parliament will<\/p>\n<p>    override the provisions of the State enactment is misconceived.\n<\/p>\n<p>    The learned Additional Government Pleader submitted hat unless<\/p>\n<p>    the State Legislature transgresses substantial field occupied by the<\/p>\n<p>    statute enacted by the Parliament, there is no question of any<\/p>\n<p>    repugnancy and, therefore, question of declaring the State<\/p>\n<p>    legislation invalid to that extent does not arise.\n<\/p>\n<p>    11)       The learned Additional Government Pleader further<\/p>\n<p>    contended that Act of 1946 regulates the industrial relations in<\/p>\n<p>    the establishment whereas the Act of 1970 deals with regulation<\/p>\n<p>    and abolition of contract labour system existing in the industry.\n<\/p>\n<p><span class=\"hidden_text\">                                                         ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                                      11<\/span><\/p>\n<p>    There is no inconsistency between the provisions of these two<\/p>\n<p>    enactments and, therefore, contention of the petitioner that<\/p>\n<p>    provisions of Section 3(13) and 3(14) of the Act of 1946 create a<\/p>\n<p>    legal fiction and cannot operate as against Section 10 of the Act of<\/p>\n<p>    1970 is merely hypothetical and cannot be accepted.\n<\/p>\n<p>    12)       Mrs. Dangre, learned Additional Government Pleader<\/p>\n<p>    for the respondent nos. 1 and 2, further submitted that the<\/p>\n<p>    petitioner is comparing the definition of term &#8220;employee&#8221; given in<\/p>\n<p>    the Act of 1946 by taking recourse to the provisions of Section 10<\/p>\n<p>    of the Act of 1970. Section 3(13)(a) of the Act of 1946 stipulates<\/p>\n<p>    &#8220;employee&#8221; means any person employed to do any skilled or<\/p>\n<p>    unskilled work for hire or reward in any industry and includes a<\/p>\n<p>    person employed by a Contractor to do any work for him in the<\/p>\n<p>    execution of a contract with an employer within the meaning of<\/p>\n<p>    sub-clause (e) of clause (14).        It was contended that unless<\/p>\n<p>    definition of &#8220;employee&#8221; given in Section 3(13) of the Act of 1946<\/p>\n<p>    is struck down, same cannot be rendered nugatory by necessary<\/p>\n<p>    implication in view of provisions of the      Act   of     1970.       The<\/p>\n<p><span class=\"hidden_text\">                                                    ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                                     12<\/span><\/p>\n<p>    learned Additional Government Pleader placed reliance on the<\/p>\n<p>    decisions cited by the learned Counsel for the respondent no.3 in<\/p>\n<p>    order to substantiate her contentions.\n<\/p>\n<p>    13)       Shri Gordey, learned Counsel for the respondent no.3,<\/p>\n<p>    submitted that provisions of Section 3(13) of the Act of 1946<\/p>\n<p>    create a legal fiction whereby an employee though employed<\/p>\n<p>    through a Contractor, is an employee of the principal employer in<\/p>\n<p>    spite of the fact that the Act of 1970 prohibits employment of<\/p>\n<p>    contract labour. It was submitted that provisions of both the<\/p>\n<p>    Acts operate in different areas and, therefore, it will be unjust to<\/p>\n<p>    render the provisions of Section 3(13) and 3(14) of the Act of<\/p>\n<p>    1946 inoperative merely on the basis of provisions of subsequent<\/p>\n<p>    Act of 1970 by necessary implication. It was contended that there<\/p>\n<p>    is no conflict between the provisions of Section 3(13) and 3(14)<\/p>\n<p>    of the Act of 1946 and Sections 2(i) and 10 of the Act of 1970.\n<\/p>\n<p>    On the other hand, all these provisions aim at achieving same<\/p>\n<p>    objective, i.e. a person engaged by the establishment as well as<\/p>\n<p>    contract labour   for carrying out the work under the contract<\/p>\n<p><span class=\"hidden_text\">                                                    ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                                     13<\/span><\/p>\n<p>    should be given the same status and should be treated as<\/p>\n<p>    employees of the principal employer.           Since there is no<\/p>\n<p>    repugnancy between these provisions, which are supplementary<\/p>\n<p>    to each other, the contention of the petitioner that the Act of 1970<\/p>\n<p>    being a subsequent legislation has overriding effect on the Act of<\/p>\n<p>    1946      in view of Article 254 of the Constitution of India             is<\/p>\n<p>    misconceived.    Learned Counsel Shri Gordey submitted that the<\/p>\n<p>    law laid down<\/p>\n<p>                       in the case of    <a href=\"\/doc\/291569\/\">The State of Bombay vs. The<\/p>\n<p>    Maharashtra Sugar Mills Ltd. (AIR<\/a> 1951 Bombay 68), Tukaram<\/p>\n<p>    Tanaji Mandhare and another vs. M\/s. Raymond Woollen Mills<\/p>\n<p>    Ltd. and others (2005 (4) Mh.L.J. 1045), and <a href=\"\/doc\/1330609\/\">Sakhar Kamgar<\/p>\n<p>    Union vs. Shri Chhatrapati Rajaram Sahakari Sakhar Karkhana<\/p>\n<p>    Ltd. and<\/a> another (1996 (1) Mh.L.J. 556) supports the case of the<\/p>\n<p>    respondent no.3.\n<\/p>\n<p>    14)        We have given anxious thought to the various<\/p>\n<p>    contentions canvassed by the respective learned Counsel for the<\/p>\n<p>    parties    and perused the impugned order passed by the<\/p>\n<p>    respondent no.2 as well as decisions of the Apex Court and High<\/p>\n<p><span class=\"hidden_text\">                                                    ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                                     14<\/span><\/p>\n<p>    Court cited by the learned Counsel for the parties. In the instant<\/p>\n<p>    case, the following facts have given rise to the controversy in<\/p>\n<p>    question :\n<\/p>\n<p>                 The respondent no.3 Union made an application under<\/p>\n<p>    Section 16 of the Act of 1946 for registering itself as a<\/p>\n<p>    representative Union in place of respondent no.4 Union.              The<\/p>\n<p>    respondent no.2 vide letter dated 6.6.2008 informed the<\/p>\n<p>    petitioner that since employees of the Contractor fall within the<\/p>\n<p>    definition of &#8220;employee&#8221; under the Act of 1946, it would not be<\/p>\n<p>    possible for the respondent no.2 to confine spot inspection and<\/p>\n<p>    verification proceedings only to the employees of petitioner<\/p>\n<p>    establishment and it would include employees of the Contractor.\n<\/p>\n<p>    The petitioner vide communication dated 7.6.2008 objected for<\/p>\n<p>    inclusion of employees of the Contractor in the spot inspection<\/p>\n<p>    and verification proceedings initiated by the respondent no.2.\n<\/p>\n<p>    The respondent no.2 rejected the said objection by the impugned<\/p>\n<p>    order dated 1\/7\/2008. Hence, the petitioner has filed the present<\/p>\n<p>    petition.\n<\/p>\n<p><span class=\"hidden_text\">                                                  ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                                     15<\/span><\/p>\n<p>    15)       In the instant case, it is not in dispute that the<\/p>\n<p>    petitioner establishment is covered by the provisions of the Act of<\/p>\n<p>    1946. Section 3(13)(a) and 3(14) of the Act of 1946 respectively<\/p>\n<p>    define expression &#8220;employee&#8221; and &#8220;employer&#8221; and combine<\/p>\n<p>    reading of these provisions demonstrate that in an undertaking,<\/p>\n<p>    which is covered by the Act of 1946, if any work, which is<\/p>\n<p>    ordinarily part of the undertaking has been entrusted to a<\/p>\n<p>    Contractor for execution by contract labour, in that case, the<\/p>\n<p>    employees of the Contractor engaged for execution of work will<\/p>\n<p>    be deemed to be employees of principal employer within the<\/p>\n<p>    meaning of Section 3(13)(a) of the Act of 1946. The impugned<\/p>\n<p>    order passed by the respondent           no.2 demonstrates that<\/p>\n<p>    respondent no.2 has held that persons employed through a<\/p>\n<p>    Contractor by the petitioner establishment are employees of the<\/p>\n<p>    petitioner establishment within the meaning of Section 3(13)(a)<\/p>\n<p>    of the Act of 1946 and petitioner would be principal employer as<\/p>\n<p>    per the provisions of Section 3(14)(e) of the Act of 1946, even<\/p>\n<p>    after the Act of 1970 came into force.\n<\/p>\n<p><span class=\"hidden_text\">                                                   ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                                    16<\/span><\/p>\n<p>    16)       Section 30 of the Act of 1970 deals with the effect of<\/p>\n<p>    laws and agreements inconsistent with the provisions of the said<\/p>\n<p>    Act. Section 30(1) contemplates that the provisions of this Act<\/p>\n<p>    shall have effect notwithstanding anything inconsistent therewith<\/p>\n<p>    contained in any other law or any terms of any agreement or<\/p>\n<p>    contract of service or   any Standing Orders applicable to the<\/p>\n<p>    establishment whether made before or after commencement of<\/p>\n<p>    this Act. (Sub-section (2) is not relevant for the controversy in<\/p>\n<p>    issue). Section 10 of the Act of 1970 empowers the appropriate<\/p>\n<p>    Government, after following due procedure mentioned in the said<\/p>\n<p>    Section, to issue notification in the Official Gazette prohibiting<\/p>\n<p>    employment of contract labour in any process or operation or<\/p>\n<p>    other work in any establishment. It is evident that the Act of<\/p>\n<p>    1970 was enacted by the Parliament to get over the abuses<\/p>\n<p>    resulting from the system of employment of contract labour. The<\/p>\n<p>    intention of the Parliament in enacting the Act of 1970 is not to<\/p>\n<p>    perpetuate system of contract labour. The provisions of Section<\/p>\n<p>    30 of the Act of 1970 has different facets. Sub-section (1) gives<\/p>\n<p>    effect to the provisions of the Act of 1970 notwithstanding<\/p>\n<p><span class=\"hidden_text\">                                                  ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                                    17<\/span><\/p>\n<p>    anything inconsistent therewith contained in any other law made<\/p>\n<p>    before or after commencement of the Act of 1970. At the same<\/p>\n<p>    time, proviso to sub-section (1) of Section 30 of the Act of 1970<\/p>\n<p>    does not take away the efficacy of any agreement, contract of<\/p>\n<p>    service or Standing Order, which benefits the contract labour. It<\/p>\n<p>    is, therefore, evident that the Act of 1970 was enacted by the<\/p>\n<p>    Parliament in the year 1970 with the intention not to perpetuate<\/p>\n<p>    system of contract labour and in view of provisions of Section<\/p>\n<p>    30(1) of the Act of 1970, the provisions of Act of 1970 are given<\/p>\n<p>    effect, notwithstanding anything inconsistent therewith contained<\/p>\n<p>    in any other law, which includes the Act of 1946. Though the<\/p>\n<p>    employees of the Contractor engaged in execution of work under<\/p>\n<p>    contract are doing the same thing as that of the regular employees<\/p>\n<p>    of the establishment, but they cannot be treated to be the<\/p>\n<p>    employees of the principal employer considering the object for<\/p>\n<p>    which the Act of 1970 is enacted by the Parliament. At the same<\/p>\n<p>    time, proviso to sub-section (1) of Section 30 of the Act of 1970<\/p>\n<p>    protects the benefits extended to the contract labour under any<\/p>\n<p>    agreement, contract of service or the Standing Orders, if they are<\/p>\n<p><span class=\"hidden_text\">                                                  ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                                      18<\/span><\/p>\n<p>    more favourable and beneficial to them than the benefits flowing<\/p>\n<p>    from the relevant provisions of the Act of 1970.\n<\/p>\n<p>    17)       The Apex Court in the case of N.T.P.C. and others<\/p>\n<p>    (cited supra) considered the provisions of Section 2(13)(a) read<\/p>\n<p>    with Clause (e) of Section 2(14) of the M.P. Industrial Relations<\/p>\n<p>    Act, 1960 (which are pari materia with the provisions of Section<\/p>\n<p>    3(13)(a) and Section 3(14)(e) of the Act of 1946) as well as<\/p>\n<p>    provisions of the Act of 1970, in great detail and from various<\/p>\n<p>    dimensions.   It will be appropriate to reproduce some of the<\/p>\n<p>    relevant facts involved in the said case in nutshell.                  The<\/p>\n<p>    controversy before the learned Single Judge of the Madhya<\/p>\n<p>    Pradesh High Court,     raised in the writ petitions was that the<\/p>\n<p>    provisions of M. P. Industrial Relations Act, 1960 are applicable to<\/p>\n<p>    the Corporation and vide notification dated 31.12.1960, the said<\/p>\n<p>    Act was made applicable to the Electricity Generation and<\/p>\n<p>    Distribution in which Corporation was engaged.          Reliance was<\/p>\n<p>    placed on Entries 22, 23 and 24 of the Concurrent List of Schedule<\/p>\n<p>    VII of the Constitution of India and the contention canvassed<\/p>\n<p><span class=\"hidden_text\">                                                    ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                                      19<\/span><\/p>\n<p>    before the learned Single Judge was that once legislation is passed<\/p>\n<p>    by the Parliament in respect of any field      covered under the<\/p>\n<p>    Concurrent List, same would have preference over the State law.\n<\/p>\n<p>    The learned Single Judge held that the writ petitioners being the<\/p>\n<p>    contract labours were not the employees of the Corporation within<\/p>\n<p>    the meaning of Section 2(13)(a) read with Clause (e) of Section<\/p>\n<p>    2(14) of the Act of 1960 after coming into force of the Act of<\/p>\n<p>    1970. Similarly, the writ petitioners were also seeking direction<\/p>\n<p>    against the Corporation to absorb them as its workmen as they<\/p>\n<p>    were contract labours. The learned Single Judge held that since<\/p>\n<p>    there was no notification issued by the appropriate Government<\/p>\n<p>    abolishing the contract labour under Section 1 of the Act of 1970,<\/p>\n<p>    there was no scope for granting any relief.\n<\/p>\n<p>    18)       Before the Division Bench of the Madhya Pradesh, the<\/p>\n<p>    stand of the petitioners, who were the appellants, was that the<\/p>\n<p>    learned Single Judge was not justified in holding that 1960 Act<\/p>\n<p>    had no application in the absence of issuance of notification under<\/p>\n<p>    Section 10 of the Act of 1970. The conclusions recorded by the<\/p>\n<p><span class=\"hidden_text\">                                                   ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                                       20<\/span><\/p>\n<p>    Division Bench of High Court of Madhya Pradesh are incorporated<\/p>\n<p>    by the Supreme Court in para (9) of its judgment, which read<\/p>\n<p>    thus :\n<\/p>\n<blockquote><p>             &#8220;(9) The High Court held that the object of the Act was to<br \/>\n             regulate the employment of the contract labour in certain<br \/>\n             establishments and to provide for its abolition in certain<\/p>\n<p>             circumstances and the matters connected therewith.\n<\/p><\/blockquote>\n<blockquote><p>             Reference was made to Sections 21 and 30 of the Act and it<br \/>\n             was held that though there was an over-riding effect yet the<\/p>\n<p>             beneficial provision of the statute was not extinguished. It<br \/>\n             was further observed that once Notification is issued under<br \/>\n             Section 10 of the Act, the matter would be different and the<\/p>\n<p>             decision rendered by this Court in Steel Authority&#8217;s case<\/p>\n<p>             (supra) would be applicable in full force. In the absence of<br \/>\n             Notification, the other general relevant law would be<\/p>\n<p>             applicable. With reference to various provisions of 1960<br \/>\n             Act it was held that there can be reconciliation of both the<br \/>\n             decisions rendered by Division Benches of the High Court.<br \/>\n             When there is a dispute with regard to wage structure qua<\/p>\n<p>             class of employees, they have to move the Labour Court as<br \/>\n             per the provisions of Sections 51 and 52 of the 1960 Act<br \/>\n             and if it is an individual, he can move the High Court under<\/p>\n<p><span class=\"hidden_text\">                                                     ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                                     21<\/span><\/p>\n<p>          Schedule II.   Accordingly, it was held that the view of<\/p>\n<p>          learned Single Judge was not correct.&#8221;\n<\/p><\/blockquote>\n<p>    19)       The Apex Court while rendering the decision in the<\/p>\n<p>    case of N.T.P.C. and others, considered the decision in the case of<\/p>\n<p>    <a href=\"\/doc\/541954\/\">Municipal Corporation of Greater Mumbai vs. K.V. Shramik Sangh<\/p>\n<p>    and others<\/a> {2002 (4) SCC 609), particularly the findings recorded<\/p>\n<p>    in paras (17) and (28), which are based on the conclusion<\/p>\n<p>    recorded in para (125) by the Apex Court in the case of Steel<\/p>\n<p>    Authority of India Ltd. and others (Constitution Bench judgment).\n<\/p>\n<p>    The finding recorded in para (17) reads thus :\n<\/p>\n<blockquote><p>              &#8220;17.    A Division Bench of the Bombay High Court<\/p>\n<p>              following the judgment of this Court in Air India case<br \/>\n              had directed the appellant to absorb the contract labour<\/p>\n<p>              but the Constitution Bench judgment in view of the<br \/>\n              overruling of Air India case set aside the judgment of<br \/>\n              the High Court leaving it open to the contract labour to<br \/>\n              seek appropriate relief in terms of the main judgment as<\/p>\n<p>              stated in para 136 of the Constitution Bench judgment.<br \/>\n              Similar orders were passed as can be seen from paras<br \/>\n              137, 140 and 146 of the same judgment dealing with<\/p>\n<p><span class=\"hidden_text\">                                                     ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                                      22<\/span><\/p>\n<p>              other cases where orders were passed by the High Court<\/p>\n<p>              relying on Air India case.&#8221;\n<\/p><\/blockquote>\n<p>    20)       The Apex Court in para (28) of its decision has<\/p>\n<p>    observed thus :\n<\/p>\n<p>          &#8220;28)        As   laid   down      in   the   Constitution        Bench<\/p>\n<p>          judgment, absorption of contract labourers cannot be<\/p>\n<p>          automatic and it is not for the court to give such direction.<br \/>\n          Appropriate course to be adopted is as indicated in para<\/p>\n<p>          125 of the said judgment in this regard.              Thus, having<br \/>\n          considered all aspects, we are of the view that the<br \/>\n          impugned judgment and order cannot be upheld.&#8221;\n<\/p>\n<p>    21)       The Apex Court in para (21) of the judgment in the<\/p>\n<p>    case of N.T.P.C. and others (cited supra), after taking into<\/p>\n<p>    consideration its decisions in the case of Municipal Corporation of<\/p>\n<p>    Greater Mumbai     as well as Steel Authority of India Ltd. and<\/p>\n<p>    others (cited supra) has observed thus :\n<\/p>\n<blockquote><p>           &#8220;21) In view of what has been stated above, the Division<\/p>\n<p><span class=\"hidden_text\">                                                        ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                                     23<\/span><\/p>\n<p>           Bench was not justified in its conclusions and on the<\/p>\n<p>           contrary, learned Single Judge had correctly analysed the<br \/>\n           position in law. That being so, Civil Appeals are allowed.\n<\/p><\/blockquote>\n<blockquote><p>           There will be no order as to costs.&#8221;\n<\/p><\/blockquote>\n<p>    22)       The observations made by the Apex Court in the case of<\/p>\n<p>    N.T.P.C. and others (cited supra) make it evident that neither<\/p>\n<p>    Section 10 of the Act of 1970 nor any other provision in the Act of<\/p>\n<p>    1946 expressly or by necessary implication provides for automatic<\/p>\n<p>    absorption of contract labour on issuing notification by the<\/p>\n<p>    appropriate Government under sub-section (1) of Section 10<\/p>\n<p>    prohibiting employment of contract labour in any process,<\/p>\n<p>    operation or other work in any establishment. Consequently, the<\/p>\n<p>    principal employer is not required to order absorption of the<\/p>\n<p>    contract labour working in the establishment concerned and,<\/p>\n<p>    therefore, in the case of Municipal Corporation of Greater<\/p>\n<p>    Mumbai (cited supra), the direction given by the Division Bench<\/p>\n<p>    of Bombay High Court,     in view of law laid down in the case of<\/p>\n<p>    Air India to absorb contract labour,      was set aside since the<\/p>\n<p>    decision of the Apex Court in Air India case came to be overruled<\/p>\n<p><span class=\"hidden_text\">                                                   ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                                     24<\/span><\/p>\n<p>    by the Constitution Bench decision in the case of Steel Authority<\/p>\n<p>    of India Ltd. and others (cited supra)   and since the Division<\/p>\n<p>    Bench of Madhya Pradesh High Court relied on the law laid down<\/p>\n<p>    by the Apex Court in Air India case, the said decision came to be<\/p>\n<p>    set aside and the decision of the learned Single Judge of Madhya<\/p>\n<p>    Pradesh High Court was affirmed.\n<\/p>\n<p>    23)<\/p>\n<p>              The Apex Court in paras (57) and (61) of the judgment<\/p>\n<p>    in the case of U.P. State Electricity Board (cited supra) has<\/p>\n<p>    observed thus :\n<\/p>\n<blockquote><p>           &#8220;(57)      In this connection reference may be made to a<\/p>\n<p>           decision of the Rajasthan High Court in the case of<br \/>\n           <a href=\"\/doc\/5639\/\">Hanuman Prasad Choudhary v. Rajasthan SEB<\/a> wherein<\/p>\n<p>           Justice S.C. Agrawal (as he then was) observed thus<br \/>\n           (Lab IC pp. 1014-15) :\n<\/p><\/blockquote>\n<blockquote><p>            &#8220;An apprentice governed by the Apprentices Act is not a<\/p>\n<p>            workman for the purpose of the Industrial Disputes Act<br \/>\n            and the provisions of the Industrial Disputes Act would<br \/>\n            not be applicable to him.<\/p><\/blockquote>\n<p>            There is apparent conflict between the provisions of<\/p>\n<p><span class=\"hidden_text\">                                                  ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                             25<\/span><\/p>\n<p>     Section 2(s) of the Industrial Disputes Act and Section 18<\/p>\n<p>     of the Apprentices Act inasmuch as Section 2(s)<br \/>\n     postulates that an apprentice is a workman to whom the<\/p>\n<p>     provisions of Industrial Disputes Act would be applicable<br \/>\n     whereas Section 18 of the Apprentices Act declares that<br \/>\n     an apprentice governed by the Apprentices Act is not to<\/p>\n<p>     be treated as a workman and the provisions of the<br \/>\n     Industrial Disputes Act would not be applicable to him.\n<\/p>\n<p>     The conflict between the two laws can be resolved by<br \/>\n     applying the principle of harmonious construction. The<\/p>\n<p>     Apprentices Act is not an exhaustive Act to cover all<\/p>\n<p>     types of apprentices because in view of the definition of<br \/>\n     term `apprentice&#8217; as contained in Section 2(aa) of the<br \/>\n     Apprentices Act, it is applicable only to persons who are<\/p>\n<p>     undergoing apprenticeship training in pursuance of the<\/p>\n<p>     contract of apprentices executed under Section 4 of the<br \/>\n     said Act. It is possible to visualise persons who may be<br \/>\n     engaged as apprentices but who are not covered by the<\/p>\n<p>     Apprentices Act. In that view of the matter, it can be<br \/>\n     said that for the purpose of Section 2(s) of the Industrial<br \/>\n     Disputes Act, a person who is designated as apprentice<\/p>\n<p>     but is not governed by the Apprentices Act would be a<br \/>\n     workman governed by the provisions of the Industrial<br \/>\n     Disputes Act. But an apprentice who is governed by the<br \/>\n     provisions of the Apprentices Act would not be a<\/p>\n<p><span class=\"hidden_text\">                                            ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                                      26<\/span><\/p>\n<p>            workman under Section 2(s) of the Industrial Disputes<\/p>\n<p>            Act and would not be governed by the provisions of the<br \/>\n            Industrial Disputes Act.\n<\/p>\n<p>            Apart from the principle of harmonious construction, the<br \/>\n            Apprentices Act, 1961 being a subsequent particular law<br \/>\n            as compared to ID Act, 1947, which is prior and general,<\/p>\n<p>            the provisions of the Apprentices Act, 1961 would prevail<br \/>\n            over those of ID Act.&#8221;\n<\/p>\n<p>           &#8220;61.    In view of the conflicting decisions of the various<\/p>\n<p>           High Courts, we are of the opinion that the view taken by<\/p>\n<p>           the Rajasthan, Kerala and Allahabad High Courts appears<br \/>\n           to be in consonance with the view taken by us and we do<br \/>\n           not agree with the view subscribed by the High Courts of<\/p>\n<p>           Gujarat and Madhya Pradesh.&#8221;\n<\/p>\n<p>    The observations made by the Apex Court in para (61) in the case<\/p>\n<p>    of U.P. State Electricity Board make it evident that in case there<\/p>\n<p>    are two different situations emerging from two different<\/p>\n<p>    legislations in respect of the issue, which is not identical, but<\/p>\n<p>    similar, the same can be resolved by applying the principle of<\/p>\n<p>    harmonious construction,    after taking into consideration the<\/p>\n<p><span class=\"hidden_text\">                                                  ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                                      27<\/span><\/p>\n<p>    objectives to be achieved by the legislation, which is later in point<\/p>\n<p>    of time.\n<\/p>\n<p>    24)        Similarly, the Apex Court in para (87) of its decision in<\/p>\n<p>    the case of Steel Authority of India Ltd. and others (cited supra)<\/p>\n<p>    has observed thus :\n<\/p>\n<blockquote><p>           &#8220;87. Now turning to the provisions of the Act, the scheme<br \/>\n           of the Act is to regulate conditions of workers in contract<\/p>\n<p>           labour system and to provide for its abolition by the<br \/>\n           appropriate Government as provided in Section 10 of the<br \/>\n           CLRA Act. In regard to the regulatory measures, Section 7<\/p>\n<p>           requires the principal employer of an establishment to get<\/p>\n<p>           itself registered under the Act.     Section 12 of the Act<br \/>\n           obliges every contractor to obtain licence under the<\/p>\n<p>           provisions of the Act.     Section 9 of the Act places an<br \/>\n           embargo on the principal employer of an establishment,<br \/>\n           which is either not registered or registration of which has<br \/>\n           been revoked under Section 8, from employing contract<\/p>\n<p>           labour in the establishment. Similarly, Section 12(1) bars<br \/>\n           a contractor from undertaking or executing any work<br \/>\n           through contract labour except under and in accordance<\/p>\n<p><span class=\"hidden_text\">                                                     ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                               28<\/span><\/p>\n<p>     with a licence. Sections 23, 24 and 25 of the Act make<\/p>\n<p>     contravention of the provisions of the Act and other<br \/>\n     offences punishable thereunder.       With regard to the<\/p>\n<p>     welfare measures intended for the contract labour, Section<br \/>\n     16 imposes an obligation on the appropriate Government<br \/>\n     to make rules to require the contractor to provide canteen<\/p>\n<p>     for the use of the contract labour. The contractor is also<br \/>\n     under an obligation to provide restrooms as postulated<\/p>\n<p>     under Section 17 of the Act. Section 18 imposes a duty on<br \/>\n     every contractor employing contract labour in connection<\/p>\n<p>     with the work of an establishment to make arrangement<\/p>\n<p>     for a sufficient supply of wholesome drinking water for the<br \/>\n     contract labour at convenient places, a sufficient number<br \/>\n     of latrines and urinals of the prescribed type at convenient<\/p>\n<p>     and accessible places for the contract labour in the<\/p>\n<p>     establishment, washing facilities, etc. Section 19 requires<br \/>\n     the contractor to provide and maintain a first-aid box<br \/>\n     equipped with prescribed contents at every place where<\/p>\n<p>     contract labour is employed by him.               Section 21<br \/>\n     specifically says that a contractor shall be responsible for<br \/>\n     payment of wages to workers employed by him as contract<\/p>\n<p>     labour and such wages have to be paid before the expiry of<br \/>\n     such period as may be prescribed. The principal employer<br \/>\n     is enjoined to have his representative present at the time<br \/>\n     of payment of wages. In the event of the contractor failing<\/p>\n<p><span class=\"hidden_text\">                                             ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                                     29<\/span><\/p>\n<p>           to provide amenities mentioned above, Section 20 imposes<\/p>\n<p>           an obligation on the principal employer to provide such<br \/>\n           amenities and to recover the cost and expenses incurred<\/p>\n<p>           therefor from the contractor either by deducting from any<br \/>\n           amount payable to the contractor or as a debt by the<br \/>\n           contractor. So also, sub-section (4) of Section 21 says that<\/p>\n<p>           in the case of the contractor failing to make payment of<br \/>\n           wages as prescribed under Section 21, the principal<\/p>\n<p>           employer shall be liable to make payment of wages to the<br \/>\n           contract labour employed by the contractor and will be<\/p>\n<p>           entitled to recover the amount so paid from the contractor<\/p>\n<p>           by deducting from any amount payable to the contractor<br \/>\n           or as a debt by the contractor. These provisions clearly<br \/>\n           bespeak treatment of contract labour as employees of the<\/p>\n<p>           contractor and not of the principal employer.&#8221;\n<\/p><\/blockquote>\n<p>    The Apex Court after taking into consideration the scheme of the<\/p>\n<p>    Act of 1970, particularly provisions of Sections 7, 8, 9, 10, 12,<\/p>\n<p>    16, 17, 18, 20 and 21,     has concluded    that these provisions<\/p>\n<p>    clearly demonstrate that contract labour is an employee of the<\/p>\n<p>    contractor and not of the principal employer.\n<\/p>\n<p><span class=\"hidden_text\">                                                    ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                                        30<\/span><\/p>\n<p>    25)       Similarly, the Apex Court in para (89) of the judgment<\/p>\n<p>    in Steel Authority of India Ltd. and others (cited supra)                has<\/p>\n<p>    observed thus :\n<\/p>\n<blockquote><p>             &#8220;89.     In the light of the above discussion, we are unable<br \/>\n             to perceive in Section 10 any implicit requirement of<br \/>\n             automatic absorption of contract labour by the principal<\/p>\n<p>             employer in the establishment concerned on issuance of<\/p>\n<p>             notification by the appropriate Government under<br \/>\n             Section 10(1)       prohibiting employment of contract<\/p>\n<p>             labour in a given establishment.&#8221;\n<\/p><\/blockquote>\n<p>    It is, therefore, evident that in view of law laid down by the Apex<\/p>\n<p>    Court in the case of Municipal Corporation of Greater Mumbai,<\/p>\n<p>    Steel Authority of India Ltd. and others and N.T.P.C. and others<\/p>\n<p>    (cited supra), even after issuance of notification by the<\/p>\n<p>    appropriate Government under Section 10 of the Act of 1970<\/p>\n<p>    prohibiting     employment    of    contract   labour     in     a    given<\/p>\n<p>    establishment, there is no automatic absorption of contract labour<\/p>\n<p>    by the principal employer in the establishment concerned since<\/p>\n<p><span class=\"hidden_text\">                                                      ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                                     31<\/span><\/p>\n<p>    the contract labour is an employee of the contractor and not of<\/p>\n<p>    the principal employer.\n<\/p>\n<p>    26)       The Act of 1970 has been enacted by the Parliament<\/p>\n<p>    for regulating the conditions of workers in the contract labour<\/p>\n<p>    system and to provide for its abolition by the appropriate<\/p>\n<p>    Government as provided in Section 10 of the said Act. Similarly,<\/p>\n<p>    the Apex Court has held in the decisions referred to hereinabove,<\/p>\n<p>    that the contract labour is an employee of the contractor and not<\/p>\n<p>    of the principal employer and there is no automatic absorption in<\/p>\n<p>    the establishment after issuance of notification by the appropriate<\/p>\n<p>    Government under Section 10(1) of the Act of 1970.                    The<\/p>\n<p>    Contract Labour (Regulation and Abolition) Act, 1970 is a<\/p>\n<p>    subsequent legislation than the Act of 1946 and since different<\/p>\n<p>    legal situations are emerging in view of the provisions of these<\/p>\n<p>    Acts, same     can be resolved by applying the principle of<\/p>\n<p>    harmonious construction to the provisions of both these Acts. At<\/p>\n<p>    the same time, the Act of 1970 being a legislation, which is later<\/p>\n<p>    in point of time, enacted by the Parliament, the provisions<\/p>\n<p><span class=\"hidden_text\">                                                   ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                                     32<\/span><\/p>\n<p>    thereof, in view of law laid down by the Apex Court in the above<\/p>\n<p>    referred decisions and in view of peculiar circumstances of the<\/p>\n<p>    case in hand, need to be given effect without resorting to Article<\/p>\n<p>    254 of the Constitution and are required to be construed<\/p>\n<p>    accordingly.\n<\/p>\n<p>    27)       Similarly, Article 254(1) of the Constitution deals with<\/p>\n<p>    inconsistency between laws made by the Parliament and laws<\/p>\n<p>    made by the Legislature of the State and provides that if any<\/p>\n<p>    provision of a law made by the Legislature of a State is repugnant<\/p>\n<p>    to any provision of a law made by Parliament, which Parliament is<\/p>\n<p>    competent to enact, or to any provision of an existing law with<\/p>\n<p>    respect to one of the matters enumerated in the Concurrent List,<\/p>\n<p>    then subject to the provisions of clause (2), the law made by<\/p>\n<p>    Parliament, whether passed before or after the law made by the<\/p>\n<p>    Legislature of such State, or, as the case may be, the existing law,<\/p>\n<p>    shall prevail and the law made by the Legislature of the State<\/p>\n<p>    shall, to the extent of the repugnancy, be void. Sub-article (2),<\/p>\n<p>    which is an exception, provides that where a law made by the<\/p>\n<p>    Legislature of a State with respect to one of the matters<\/p>\n<p><span class=\"hidden_text\">                                                    ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                                      33<\/span><\/p>\n<p>    enumerated in the Concurrent List contains any provision<\/p>\n<p>    repugnant to the provisions of an earlier law made by Parliament<\/p>\n<p>    or an existing law with respect to that matter, then, the law so<\/p>\n<p>    made by the Legislature of such State shall, if it has been reserved<\/p>\n<p>    for the consideration of the President and has received his assent,<\/p>\n<p>    prevail in that State.\n<\/p>\n<p>    28)<\/p>\n<p>               The Apex Court in para (8) of its decision in the case<\/p>\n<p>    of <a href=\"\/doc\/345466\/\">Zaverbhai Amaidas v. State of Bombay (AIR<\/a> 1954 SC 752) has<\/p>\n<p>    observed thus :\n<\/p>\n<blockquote><p>                &#8220;8.    In the present case, there was no express repeal<\/p>\n<p>                of the Bombay Act by Act No. 52 of 1950 in terms of<\/p>\n<p>                the proviso to Art. 254(2). Then the only question to<br \/>\n                be decided is whether the amendments made to the<\/p>\n<p>                Essential Supplies (Temporary Powers) Act by the<br \/>\n                Central Legislature in 1948, 1949 and 1950 are<br \/>\n                &#8220;further legislation&#8221; falling within S. 107(2) of the<br \/>\n                Government of India Act or &#8220;law with respect to the<\/p>\n<p>                same matter&#8221; falling within Art. 254(2).                   The<br \/>\n                important thing    to consider with reference to this<br \/>\n                provision is whether the legislation is &#8220;in respect of<\/p>\n<p><span class=\"hidden_text\">                                                    ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                                        34<\/span><\/p>\n<p>                the same matter&#8221;. If the later legislation deals not<\/p>\n<p>                with the matters which formed the subject of the<br \/>\n                earlier legislation, but with other and distinct matters<\/p>\n<p>                though of a cognate and allied character, then Art.<br \/>\n                254(2) will have no application. &#8230;&#8221;\n<\/p><\/blockquote>\n<p>    29)       In the instant case, both the legislations are enacted &#8211;\n<\/p>\n<p>    one by the State and other by the Parliament &#8211; by taking recourse<\/p>\n<p>    to Entry 24 of the Concurrent List (Schedule VII) of the<\/p>\n<p>    Constitution. However, the Act of 1946 regulates the industrial<\/p>\n<p>    relations in the establishment whereas the object of enacting the<\/p>\n<p>    Act of 1970 by the Parliament is to get over the abuses resulting<\/p>\n<p>    from system of employment of contract labour.\n<\/p>\n<p>    30)       The Parliament adopted twin measures to curb abuses<\/p>\n<p>    of employment of contract labour to regulate employment of<\/p>\n<p>    contract labour suitably and to abolish the contract labour system<\/p>\n<p>    in certain circumstances as observed by the Apex Court in the case<\/p>\n<p>    of Steel Authority of India Ltd.    Similarly, the subject matter of<\/p>\n<p>    the 1970 legislation partly covers the matter, which forms the<\/p>\n<p><span class=\"hidden_text\">                                                     ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                                      35<\/span><\/p>\n<p>    subject matter of earlier legislation, i.e. the Act of 1946 and takes<\/p>\n<p>    into its ambit some other and distinct matters though of a cognate<\/p>\n<p>    and allied character. Hence, in view of the decision of the Apex<\/p>\n<p>    Court in the case of Zaverbhai Amaidas (cited supra), Article<\/p>\n<p>    254(2) of the Constitution will have no application and in view of<\/p>\n<p>    law laid down by the Apex Court in the case of Municipal<\/p>\n<p>    Corporation of Greater Mumbai, Steel Authority of India Ltd. and<\/p>\n<p>    others and N.T.P.C. and others, the contract labour shall be the<\/p>\n<p>    employee of the contractor and not of principal employer.\n<\/p>\n<p>    Therefore, in spite of issuing notification by the appropriate<\/p>\n<p>    Government under Section 10(1) of the Act of 1970 prohibiting<\/p>\n<p>    employment of contract labour in a given establishment, there is<\/p>\n<p>    no automatic absorption of the contract labour by the principal<\/p>\n<p>    employer in the establishment concerned and hence, the<\/p>\n<p>    impugned order cannot be sustained.\n<\/p>\n<p>    31)       Shri Gordey, learned Counsel for the respondent no.3,<\/p>\n<p>    in order to substantiate the contentions, relied on the decisions of<\/p>\n<p>    the Apex Court as well as this Court. So far as decision of this<\/p>\n<p><span class=\"hidden_text\">                                                     ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                                     36<\/span><\/p>\n<p>    Court in the case of The State of Bombay (cited supra) is<\/p>\n<p>    concerned, this Court was required to consider the scope and<\/p>\n<p>    ambit of Section 3(13)(a) and 3(14)(e) of the Act of 1946 and<\/p>\n<p>    there was no occasion for this Court to consider the issue<\/p>\n<p>    regarding effect of notification issued by the appropriate<\/p>\n<p>    Government under Section 10(1) as well as purport of Section 30<\/p>\n<p>    of the Act of 1970. Similarly, this Court was also not required to<\/p>\n<p>    consider the effect of provisions of subsequent legislation enacted<\/p>\n<p>    by the Parliament in the case of difference in regards to the<\/p>\n<p>    provisions of earlier legislation enacted by the State by taking<\/p>\n<p>    recourse to Entry 24 of the Concurrent List in Schedule VII of the<\/p>\n<p>    Constitution and, therefore, the law laid down by this Court in the<\/p>\n<p>    case of State of Bombay (cited supra) does not further the case of<\/p>\n<p>    the respondents.\n<\/p>\n<p>    32)       So far as other decisions of this Court cited by Shri<\/p>\n<p>    Gordey, learned Counsel for the respondent no.3,       in the case of<\/p>\n<p>    Tukaram Tanaji Mandhare and another as well as in the case of<\/p>\n<p>    Sakhar Kamgar Union are concerned, same do not address the<\/p>\n<p><span class=\"hidden_text\">                                                   ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span><br \/>\n<span class=\"hidden_text\">                                     37<\/span><\/p>\n<p>    issue involved in the present case and, therefore, they do not<\/p>\n<p>    further the case of the respondents.\n<\/p>\n<p>    33)        For the reasons stated hereinabove, the impugned order<\/p>\n<p>    dated 1.7.2008 passed by the respondent no.2 is quashed and set<\/p>\n<p>    aside.     The rule is made absolute in the above terms. No order<\/p>\n<p>    as to costs.\n<\/p>\n<p>                                   _____________<\/p>\n<p>    khj<\/p>\n<p><span class=\"hidden_text\">                                                   ::: Downloaded on &#8211; 09\/06\/2013 14:00:08 :::<\/span>\n <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bombay High Court Sunflag Iron And Steel Company Ltd vs State Of Maharashtra on 20 October, 2008 Bench: D.D. Sinha, Prasanna B. Varale 1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY NAGPUR BENCH : NAGPUR WRIT PETITION NO.3147 OF 2008 Sunflag Iron and Steel Company Ltd., 33, Mount Road, Sadar, Nagpur, through its Sr. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[11,8],"tags":[],"class_list":["post-123763","post","type-post","status-publish","format-standard","hentry","category-bombay-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Sunflag Iron And Steel Company Ltd vs State Of Maharashtra on 20 October, 2008 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/sunflag-iron-and-steel-company-ltd-vs-state-of-maharashtra-on-20-october-2008\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sunflag Iron And Steel Company Ltd vs State Of Maharashtra on 20 October, 2008 - Free Judgements of Supreme Court &amp; 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