{"id":207408,"date":"2008-05-16T00:00:00","date_gmt":"2008-05-15T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/food-corporation-of-india-anr-vs-pala-ram-ors-on-16-may-2008"},"modified":"2016-09-06T17:16:13","modified_gmt":"2016-09-06T11:46:13","slug":"food-corporation-of-india-anr-vs-pala-ram-ors-on-16-may-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/food-corporation-of-india-anr-vs-pala-ram-ors-on-16-may-2008","title":{"rendered":"Food Corporation Of India &amp; Anr vs Pala Ram &amp; Ors on 16 May, 2008"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Food Corporation Of India &amp; Anr vs Pala Ram &amp; Ors on 16 May, 2008<\/div>\n<div class=\"doc_author\">Author: S Sinha<\/div>\n<div class=\"doc_bench\">Bench: S.B. Sinha, V.S. Sirpurkar<\/div>\n<pre>                                                                 REPORTABLE\n\n                 IN THE SUPREME COURT OF INDIA\n\n                 CIVIL APPELLATE JURISDICTION\n\n              CIVIL APPEAL NOS.__3641-42 OF 2008\n            (Arising out of SLP (C) No.22320-22321 of 2004)\n\n\nFOOD CORPORATION OF INDIA &amp; ANR.                  ... APPELLANTS\n\n\n                                 Versus\n\nPALA RAM &amp; ORS.                                  ... RESPONDENTS\n\n\n{With C.A. No._3654 of 2008 [@ SLP (C) No. 1742\/2008], C.A.\nNos._3655-56 of 2008 [@ SLP (C) No. 22335-22336\/2004 &amp; C.A.\nNo._3657 of 2008 [@ SLP (C) No. 2757\/2006]}\n\n\n\n                            JUDGMENT\n<\/pre>\n<p>S.B. Sinha, J.\n<\/p>\n<\/p>\n<p>1.    Leave granted.\n<\/p>\n<p>2.    The case has a chequered history.\n<\/p>\n<p><span class=\"hidden_text\">                                    2<\/span><\/p>\n<p>      Appellant has been constituted under the Food Corporation of India<\/p>\n<p>Act, 1964. For the purpose of carrying out its activities, it maintains a large<\/p>\n<p>number of godowns in different parts of the country including the States of<\/p>\n<p>Punjab and Haryana.        As the law stood then, the respective State<\/p>\n<p>Governments were considered to be the appropriate Government in respect<\/p>\n<p>of the appellant. Various State Governments issued Notification prohibiting<\/p>\n<p>employment of contract labour in some processes in its establishments<\/p>\n<p>purported to be in exercise of its power under Section 10(1) of the Contract<\/p>\n<p>Labour (Regulation and Abolition) Act, 1970 (for short, &#8220;the Act&#8221;).<\/p>\n<p>      Indisputably, the Government of India in exercise of the same power<\/p>\n<p>issued a Notification bearing No. S.O. No. 779(E) on or about 9.12.1976 to<\/p>\n<p>the following effect:\n<\/p>\n<blockquote><p>                    &#8220;S.O. No. 779(E) &#8211; In exercise of the power<br \/>\n             conferred by sub-section (1) of Section 10 of the<br \/>\n             Contract Labour (Regulation and Abolition) Act, 1970<br \/>\n             (37 of 1970) the Central Government after consultation<br \/>\n             with the Central Advisory Contract Labour Board,<br \/>\n             hereby prohibits employment of contract labour on and<br \/>\n             from the 1.3.1977, for sweeping, cleaning, dusting and<br \/>\n             watching of buildings owned or occupied by the<br \/>\n             establishments in respect of which the appropriate<br \/>\n             Government under the said Act is the Central<br \/>\n             Government: (emphasis supplied)<\/p>\n<p>                   Provided that this notification shall not apply to<br \/>\n             the outside cleaning and other maintenance operations of<br \/>\n             multi-storeyed buildings where such cleaning or<br \/>\n<span class=\"hidden_text\">                                    3<\/span><\/p>\n<p>             maintenance operations cannot be carried out except<br \/>\n             with specialized experience.&#8221;<\/p>\n<p>In a decision of this Court titled &#8220;<a href=\"\/doc\/323893\/\">Food Corporation of India Workers&#8217;<\/p>\n<p>Union v. Food Corporation of India &amp; ors.<\/a>&#8221; reported in (1985) 2 S.C.C.<\/p>\n<p>294, it was held:\n<\/p>\n<\/p>\n<blockquote><p>             &#8220;On the interpretation of the relevant sections extracted<br \/>\n             above, we hold that the `appropriate Government&#8217; for the<br \/>\n             purpose of this case pertaining to the regional offices and<br \/>\n             their warehouses in the respective States is the State<br \/>\n             Government and not the Central Government.&#8221;\n<\/p><\/blockquote>\n<p>3.    However, on or about 28.1.1986, the definition of `Appropriate<\/p>\n<p>Government&#8217; was amended by Act 14 of 1986 in terms whereof, the Central<\/p>\n<p>Government was declared to be the `appropriate Government&#8217;, inter alia, so<\/p>\n<p>far as establishments of FCI are concerned.\n<\/p>\n<\/p>\n<p>4.    The Central Government thereafter issued a Notification on or about<\/p>\n<p>28.5.1992 stating that no case for abolition of contract labour in respect of<\/p>\n<p>the jobs of sweeping, cleaning, dusting and watching of buildings in Food<\/p>\n<p>Corporation of India was made out. It reads as under:<\/p>\n<blockquote><p>                                              &#8220;No. U.23013\/11\/89-LW<br \/>\n                    Government of India : Ministry of Labour<br \/>\n                      Jaisalmar House, Mansingh Road,<br \/>\n<span class=\"hidden_text\">                              4<\/span><\/p>\n<p>               New Delhi, Dated 28th May, 1992<br \/>\nTo,<br \/>\nAll the members of Central<br \/>\nAdvisory contract Labour Board.\n<\/p><\/blockquote>\n<p>Subject:    Report (Part-I) of the Committee constituted to<br \/>\nstudy the working of Contractor Labour System in Sweeping,<br \/>\nCleaning, Dusting and Watching of Buildings owned or<br \/>\noccupied by establishments in respect of which the Central<br \/>\nGovernment has become the appropriate government after the<br \/>\namendment in 1986 of the Contract Labour (Regulation and<br \/>\nAbolition) Act, 1970.\n<\/p>\n<p>Sir,<\/p>\n<p>I am directed to refer to this Ministry&#8217;s letter of even No. dated<br \/>\n3rd April, 1992 and to say that the matter relating to the dusting<br \/>\nand watching of buildings owned or occupied by the<br \/>\nCorporation of India. Unit Trust of India, and Central<br \/>\nWarehousing Corporation was discussed in the 24th meeting of<br \/>\nthe Central Advisory Contract Labour Board held on<br \/>\n29.02.1992 at New Delhi under the Chairmanship of Union<br \/>\nDeputy Labour Minister. It was inter-alia decided to leave the<br \/>\nmatter further for a decision by Government keeping in views<br \/>\nthe views expressed in the matter.\n<\/p>\n<p>2.          In pursuance of the recommendations of the<br \/>\nBoard, the matter has been considered in detail by the Central<br \/>\nGovernment and it has been decided not to prohibit<br \/>\nemployment of Contract Labour in the sweeping, cleaning,<br \/>\ndusting and watching of Building owned or occupied by the<br \/>\nestablishments, of Food Corporation of India, Industrial<br \/>\nFinance Corporation of India, for which the appropriate<br \/>\nGovernment under the Contract Labour (Regulation and<br \/>\nAbolition) Act, 1970 is the Central Government.<\/p>\n<p>                                                Yours faithfully,<\/p>\n<p>                                                            Sd\/-\n<\/p>\n<p>                                        (Smt. P. Vankatachalam)<br \/>\n<span class=\"hidden_text\">                                    5<\/span><\/p>\n<p>                               Deputy Secretary of the Govt. of India<br \/>\n                               And Secretary of the Central Advisory<br \/>\n                                            Contract Labour Board.&#8221;\n<\/p>\n<\/p>\n<p>5.    The question as to whether on abolition of contract labour, the<\/p>\n<p>contract labourers working under the contractors became direct employees<\/p>\n<p>of the management, has been debated in various High Courts. The question<\/p>\n<p>came up before this Court in <a href=\"\/doc\/784921\/\">Air India Statutory Corporation &amp; Ors. v.<\/p>\n<p>United Labour Union &amp; ors.<\/a> reported in (1997) 9 S.C.C. 377 where it was<\/p>\n<p>held that all the contract labourers on issuance of Notification dated<\/p>\n<p>9.12.1976 became the direct employees of the respective managements. The<\/p>\n<p>decision of this Court in Food Corporation of India Workers&#8217; Union<\/p>\n<p>(supra) however was not noticed.\n<\/p>\n<p>6.    A series of writ petitions thereafter were filed before the Punjab &amp;<\/p>\n<p>Haryana High Court. In one of the matters, a Division Bench of the said<\/p>\n<p>Court in LPA No. 742 of 1993 by a judgment and order dated 21.7.1998<\/p>\n<p>opined that the contract labour in the depots of the appellant by reason of<\/p>\n<p>the said notification dated 9.12.1976, the workmen were entitled to the<\/p>\n<p>benefits of the said decision of Air India (supra) holding:<\/p>\n<blockquote><p>             &#8220;Accordingly, on finding the work to be perennial<br \/>\n             nature, it had recommending and the Central<br \/>\n<span class=\"hidden_text\">                                   6<\/span><\/p>\n<p>            Government had considered and accepted the<br \/>\n            recommendation to abolish the recommendation to<br \/>\n            abolish the contract labour system in the afore-said<br \/>\n            services.     Having abolished it the Central<br \/>\n            Government was denuded its power under Section<br \/>\n            10(1) to again appoint insofar as the above<br \/>\n            services of the Mohile Committee to go once over<br \/>\n            into the self &#8211; same question and recommendation<br \/>\n            of the latter not to abolish the contract labour<br \/>\n            system in the above service and the acceptance<br \/>\n            there of by the Central Government are without<br \/>\n            any legal base and therefore nonest.&#8221;\n<\/p><\/blockquote>\n<p>7.     It was also held that the Central Government was the appropriate<\/p>\n<p>Government in view of the decision of this Court in Air India (supra),<\/p>\n<p>stating :\n<\/p>\n<blockquote><p>                  &#8220;11. After recording the above mentioned<br \/>\n            conclusions their Lordships examined the correctness of<br \/>\n            the directions given by Bombay High Court for<br \/>\n            enforcement of the notification dated 09-12-1976 qua to<br \/>\n            the establishment of the Corporation and upheld the<br \/>\n            same.\n<\/p><\/blockquote>\n<blockquote><p>                   12. In view of the judgment of the Supreme<br \/>\n            Court in Air India Statutory Corporation&#8217;s Case (supra)<br \/>\n            approving decision of the Bombay High Court which has<br \/>\n            direct bearing on the case of the appellant, the impugned<br \/>\n            order of the learned Single Judge in which he dissented<br \/>\n            from the decision of the Bombay High Court cannot be<br \/>\n            regarded as laying down correct law. In our opinion the<br \/>\n            interpretation given by the Apex Court to the definition<br \/>\n            of appropriate Government is also sufficient to upset the<br \/>\n            impugned judgment.\n<\/p><\/blockquote>\n<p><span class=\"hidden_text\">                                   7<\/span><\/p>\n<blockquote><p>                   13. In the result we allow and set aside the order<br \/>\n            of the learned Single Judge. Consequently the writ<br \/>\n            petition filed by the appellant is accepted and the<br \/>\n            respondent &#8211; Corporation is directed to give effect to the<br \/>\n            notification dated 09.12.1976 while making employment<br \/>\n            in its establishment.     As a logical corollary, the<br \/>\n            respondent is restrained from employ watchman for its<br \/>\n            godowns as contract labour.&#8221;\n<\/p><\/blockquote>\n<p>8.    Indisputably, a Special Writ Petition filed thereagainst by the<\/p>\n<p>petitioner was dismissed by an order dated 30.8.1999 stating:<\/p>\n<blockquote><p>            &#8220;In view of the circular No. 2 of 1999 dated 23.3.1999<br \/>\n            by the Food Corporation of India and Office<br \/>\n            Memorandum No. S-16-11\/2\/99-LW dated 8.2.1999<br \/>\n            issued by the Government of India, this Special Leave<br \/>\n            Petition deserves to be dismissed. The Special Leave<br \/>\n            Petition is, therefore, dismissed.&#8221;\n<\/p><\/blockquote>\n<p>9.    This question, however, again came up for consideration before a<\/p>\n<p>Constitution Bench of this Court in <a href=\"\/doc\/1160961\/\">Steel Authority of India Limited &amp; ors.<\/p>\n<p>v. National Union Waterfront Workers &amp; ors.<\/a> [(2001) 7 SCC 1].<\/p>\n<p>      The Constitution Bench took a different view. Air India (supra) was<\/p>\n<p>overruled prospectively. It was held that there being no provision under the<\/p>\n<p>Act to direct absorption of the contract labour on abolition thereof, Air<\/p>\n<p>India (supra) did not lay down a good law, stating:<br \/>\n<span class=\"hidden_text\">                         8<\/span><\/p>\n<p>   &#8220;107. An analysis of the cases, discussed<br \/>\nabove, shows that they fall in three classes: (i)<br \/>\nwhere contract labour is engaged in or in<br \/>\nconnection with the work of an establishment and<br \/>\nemployment of contract labour is prohibited either<br \/>\nbecause the industrial adjudicator\/court ordered<br \/>\nabolition of contract labour or because the<br \/>\nappropriate Government issued notification under<br \/>\nSection 10(1) of the CLRA Act, no automatic<br \/>\nabsorption of the contract labour working in the<br \/>\nestablishment was ordered; (ii) where the contract<br \/>\nwas found to be a sham and nominal, rather a<br \/>\ncamouflage, in which case the contract labour<br \/>\nworking in the establishment of the principal<br \/>\nemployer were held, in fact and in reality, the<br \/>\nemployees of the principal employer himself.\n<\/p>\n<p>Indeed, such cases do not relate to abolition of<br \/>\ncontract labour but present instances wherein the<br \/>\nCourt pierced the veil and declared the correct<br \/>\nposition as a fact at the stage after employment of<br \/>\ncontract labour stood prohibited; (iii) where in<br \/>\ndischarge of a statutory obligation of maintaining<br \/>\na canteen in an establishment the principal<br \/>\nemployer availed the services of a contractor the<br \/>\ncourts have held that the contract labour would<br \/>\nindeed be the employees of the principal<br \/>\nemployer.\n<\/p>\n<p>***                ***                ***\n<\/p>\n<p>   119. We are not persuaded to accede to the<br \/>\ncontention that a workman, who is not an<br \/>\noutworker, must be treated as a regular employee<br \/>\nof the principal employer. It has been noticed<br \/>\nabove that an outworker falls within the<br \/>\nexclusionary clause of the definition of<br \/>\n&#8220;workman&#8221;. The word &#8220;outworker&#8221; connotes a<br \/>\nperson who carries out the type of work,<br \/>\nmentioned in sub-clause (C) of clause (i) of<br \/>\nSection 2(1), of the principal employer with the<br \/>\nmaterials supplied to him by such employer either<br \/>\n<span class=\"hidden_text\">                                   9<\/span><\/p>\n<p>            (i) at his home, or (ii) in some other premises not<br \/>\n            under the control and management of the principal<br \/>\n            employer. A person who is not an outworker but<br \/>\n            satisfies the requirement of the first limb of the<br \/>\n            definition of &#8220;workman&#8221; would, by the very<br \/>\n            definition, fall within the meaning of the term<br \/>\n            &#8220;workman&#8221;. Even so, if such a workman is within<br \/>\n            the ambit of the contract labour, unless he falls<br \/>\n            within the aforementioned classes, he cannot be<br \/>\n            treated as a regular employee of the principal<br \/>\n            employer.\n<\/p>\n<p>               120. We have also perused all the Rules and<br \/>\n            forms prescribed thereunder. It is clear that at<br \/>\n            various stages there is involvement of the<br \/>\n            principal     employer.    On     an    exhaustive<br \/>\n            consideration of the provisions of the CLRA Act<br \/>\n            we have held above that neither they contemplate<br \/>\n            creation of direct relationship of master and<br \/>\n            servant between the principal employer and the<br \/>\n            contract labour nor can such relationship be<br \/>\n            implied from the provisions of the Act on issuing<br \/>\n            notification under Section 10(1) of the CLRA Act,<br \/>\n            a fortiori much less can such a relationship be<br \/>\n            found to exist from the Rules and the forms made<br \/>\n            thereunder.&#8221;\n<\/p>\n<p>      The summary of the decision was outlined in paragraph 125; the<\/p>\n<p>relevant portions whereof are as under:\n<\/p>\n<blockquote><p>            &#8220;(2)(a) A notification under Section 10(1) of the<br \/>\n         CLRA Act prohibiting employment of contract labour<br \/>\n         in any process, operation or other work in any<br \/>\n         establishment has to be issued by the appropriate<br \/>\n         Government:\n<\/p><\/blockquote>\n<p><span class=\"hidden_text\">                           10<\/span><\/p>\n<blockquote><p>       (1) after consulting with the Central Advisory<br \/>\n    Board or the State Advisory Board, as the case<br \/>\n    may be, and<br \/>\n       (2) having regard to\n<\/p><\/blockquote>\n<blockquote><p>          (i) conditions of work and benefits provided<br \/>\n       for the contract labour in the establishment in<br \/>\n       question, and\n<\/p><\/blockquote>\n<blockquote><p>          (ii) other relevant factors including those<br \/>\n       mentioned in sub-section (2) of Section 10;<\/p><\/blockquote>\n<p>    (b) Inasmuch as the impugned notification issued<br \/>\nby the Central Government on 9-12-1976 does not<br \/>\nsatisfy the aforesaid requirements of Section 10, it is<br \/>\nquashed but we do so prospectively i.e. from the date<br \/>\nof this judgment and subject to the clarification that<br \/>\non the basis of this judgment no order passed or no<br \/>\naction taken giving effect to the said notification on<br \/>\nor before the date of this judgment, shall be called in<br \/>\nquestion in any tribunal or court including a High<br \/>\nCourt if it has otherwise attained finality and\/or it has<br \/>\nbeen implemented.\n<\/p>\n<p>    (3) Neither Section 10 of the CLRA Act nor any<br \/>\nother provision in the Act, whether expressly or by<br \/>\nnecessary implication, provides for automatic<br \/>\nabsorption of contract labour on issuing a notification<br \/>\nby the appropriate Government under sub-section (1)<br \/>\nof Section 10, prohibiting employment of contract<br \/>\nlabour, in any process, operation or other work in any<br \/>\nestablishment. Consequently the principal employer<br \/>\ncannot be required to order absorption of the contract<br \/>\nlabour working in the establishment concerned.<br \/>\n   (4) We overrule the judgment of this Court in Air<br \/>\nIndia case prospectively and declare that any<br \/>\ndirection issued by any industrial adjudicator\/any<br \/>\ncourt including the High Court, for absorption of<br \/>\ncontract labour following the judgment in Air India<br \/>\ncase shall hold good and that the same shall not be set<br \/>\naside, altered or modified on the basis of this<br \/>\njudgment in cases where such a direction has been<br \/>\ngiven effect to and it has become final.\n<\/p>\n<p><span class=\"hidden_text\">                          11<\/span><\/p>\n<p>    (5) On issuance of prohibition notification under<br \/>\nSection 10(1) of the CLRA Act prohibiting<br \/>\nemployment of contract labour or otherwise, in an<br \/>\nindustrial dispute brought before it by any contract<br \/>\nlabour in regard to conditions of service, the<br \/>\nindustrial adjudicator will have to consider the<br \/>\nquestion whether the contractor has been interposed<br \/>\neither on the ground of having undertaken to produce<br \/>\nany given result for the establishment or for supply of<br \/>\ncontract labour for work of the establishment under a<br \/>\ngenuine contract or is a mere ruse\/camouflage to<br \/>\nevade compliance with various beneficial legislations<br \/>\nso as to deprive the workers of the benefit thereunder.<br \/>\nIf the contract is found to be not genuine but a mere<br \/>\ncamouflage, the so-called contract labour will have to<br \/>\nbe treated as employees of the principal employer<br \/>\nwho shall be directed to regularise the services of the<br \/>\ncontract labour in the establishment concerned<br \/>\nsubject to the conditions as may be specified by it for<br \/>\nthat purpose in the light of para 6 hereunder.\n<\/p>\n<p>    (6) If the contract is found to be genuine and<br \/>\nprohibition notification under Section 10(1) of the<br \/>\nCLRA Act in respect of the establishment concerned<br \/>\nhas been issued by the appropriate Government,<br \/>\nprohibiting employment of contract labour in any<br \/>\nprocess, operation or other work of any establishment<br \/>\nand where in such process, operation or other work of<br \/>\nthe establishment the principal employer intends to<br \/>\nemploy regular workmen, he shall give preference to<br \/>\nthe erstwhile contract labour, if otherwise found<br \/>\nsuitable and, if necessary, by relaxing the condition as<br \/>\nto maximum age appropriately, taking into<br \/>\nconsideration the age of the workers at the time of<br \/>\ntheir initial employment by the contractor and also<br \/>\nrelaxing the condition as to academic qualifications<br \/>\nother than technical qualifications.&#8221;\n<\/p>\n<p><span class=\"hidden_text\">                                    12<\/span><\/p>\n<p>      The meaning of the expression &#8220;industrial adjudicator&#8221; was stated in<\/p>\n<p>the following terms:\n<\/p>\n<\/p>\n<blockquote><p>            &#8220;126. We have used the expression &#8220;industrial<br \/>\n         adjudicator&#8221; by design as determination of the<br \/>\n         questions aforementioned requires enquiry into<br \/>\n         disputed questions of facts which cannot conveniently<br \/>\n         be made by High Courts in exercise of jurisdiction<br \/>\n         under Article 226 of the Constitution. Therefore, in<br \/>\n         such cases the appropriate authority to go into those<br \/>\n         issues will be the Industrial Tribunal\/Court whose<br \/>\n         determination will be amenable to judicial review.&#8221;\n<\/p><\/blockquote>\n<p>10.   Interpretation of the decision of this Court in Steel Authority of India<\/p>\n<p>Limited (supra) vis-`-vis the circulars issued by the Central Government as<\/p>\n<p>also by the appellant fell for consideration in a large number of writ<\/p>\n<p>petitions filed by the concerned workmen of different establishments of the<\/p>\n<p>appellant.\n<\/p>\n<\/p>\n<p>11.   We have noticed hereinbefore the decision of the Division Bench of<\/p>\n<p>the Punjab &amp; Haryana High Court rendered in L.P.A. No. 742 of 1993. The<\/p>\n<p>said decision itself was construed differently. Whereas one Division Bench<\/p>\n<p>in its judgment and order dated 22.8.2002 passed in Writ Petition No. 4695<\/p>\n<p>of 1999 titled &#8220;Sunil Kumar Vs. FCI &amp; Ors.&#8221; opined that the said<\/p>\n<p>Notification dated 9.12.1976 became final vis-`-vis the establishment of<\/p>\n<p>FCI in Sangrur District, as noticed hereinafter, other Benches of the said<br \/>\n<span class=\"hidden_text\">                                   13<\/span><\/p>\n<p>Court, however, took a different view.      We may, however, notice the<\/p>\n<p>Division Bench decision in &#8220;Sunil Kumar&#8221; wherein it was held:<\/p>\n<blockquote><p>            &#8220;The only argument which survives for consideration of<br \/>\n            this Court is whether the petitioners are entitled to claim<br \/>\n            benefit of the directions contained in sub-para No. (6) of<br \/>\n            paragraph No. 121 of the judgment in Steel Authority of<br \/>\n            India&#8217;s case (supra). Learned counsel for the petitioners<br \/>\n            contended that the judgment in relation to Food<br \/>\n            Corporation India Class IV Employees Union (Regd.)<br \/>\n            Sangrur, has attained finality and has been implemented<br \/>\n            and, thus, would fall under the exception carved out by<br \/>\n            the Hon&#8217;ble Apex Court in clause (2)(b) of paragraph<br \/>\n            No. 121 and, therefore, the petitioners are entitled to the<br \/>\n            relief limited to the extent that the Corporation would<br \/>\n            grant them preferential treatment in terms of sub-para (6)<br \/>\n            of paragraph 121 of the judgment. According to him, by<br \/>\n            issuing the letters of 1999 and the judgment of the<br \/>\n            Letters Patent Bench as well as the Apex Court would<br \/>\n            make the judgment enforceable in favour of all<br \/>\n            employees of the Food Corporation India, irrespective of<br \/>\n            territory, as the judgment would have to be read as a<br \/>\n            judgment in rem and not in personem. In other words,<br \/>\n            the Food Corporation India being the respondent in these<br \/>\n            petitions, is bound to enforce the judgment qua all its<br \/>\n            employees and particularly those who are working in the<br \/>\n            State of Punjab.&#8221;\n<\/p><\/blockquote>\n<p>12.   Posing the question as to what would be the meaning of the<\/p>\n<p>expression &#8220;if it has otherwise attained finality and\/or it has been<\/p>\n<p>implemented&#8221; used in Steel Authority of India Limited (supra) and having<\/p>\n<p>noticed the fact that the Notification dated 9.12.1976 stood set aside by the<\/p>\n<p>Constitution Bench of this Court, it was observed that the appellant cannot<br \/>\n<span class=\"hidden_text\">                                    14<\/span><\/p>\n<p>justify refusing relief to the employees of the same sector of the<\/p>\n<p>Corporation, rather same District, i.e. Sangrur in the following terms :<\/p>\n<blockquote><p>                    &#8220;It is not disputed that Sunam is a part of District<br \/>\n             Sangrur and the petitioners are well within their rights to<br \/>\n             claim the benefit of a settled right.          It is only<br \/>\n             implementation of the earlier judgment as the Union<br \/>\n             itself was a party before the High Court in the other<br \/>\n             cases.\n<\/p><\/blockquote>\n<blockquote><p>             On the one hand, the workers do not question the<br \/>\n             genuineness of the agreement, while on the other, the<br \/>\n             management admits implementation of the notification<br \/>\n             and it having attained finality as back as in the year<br \/>\n             1999. Once these two ingredients are satisfied in light of<br \/>\n             the judgment of the Hon&#8217;ble Apex Court, denying<br \/>\n             limited relief in terms of sub-paragraph (6) of paragraph<br \/>\n             No. 121 of the judgment of Hon&#8217;ble Apex Court to the<br \/>\n             petitioners, may not be permissible.\n<\/p><\/blockquote>\n<blockquote><p>             We have granted relief to the petitioners in these<br \/>\n             petitions as it is only direction in furtherance to the<br \/>\n             judgment of the Court pending between the parties to the<br \/>\n             writ and which has attained finality. While, if we were<br \/>\n             to deny relief to the petitioners, it would amount to<br \/>\n             obstructing implementation of the judgment which has<br \/>\n             attained finality upto the highest court of the land. In<br \/>\n             other words, it would tantamount to denial of a settled<br \/>\n             relief. This judgment merely adds to the existing order<br \/>\n             of the court particularly in view of the fact that the<br \/>\n             respondents have admittedly implemented the<br \/>\n             notification in question.&#8221;\n<\/p><\/blockquote>\n<p>13.   Indisputably, the Special Leave Petitions filed thereagainst have been<\/p>\n<p>dismissed by this Court by an order dated 24.2.2003. Appellant thereafter<br \/>\n<span class=\"hidden_text\">                                    15<\/span><\/p>\n<p>issued two advertisements being dated 13.9.2003 and 20.8.2003 for<\/p>\n<p>enrolment of agencies for provision of security coverage of FCI foodgrains<\/p>\n<p>stored in various godowns\/CAP complexes in Haryana and also for the<\/p>\n<p>purpose of security of FCI building at Chandigarh. A Division Bench of the<\/p>\n<p>High Court opined that the workmen were entitled to the benefit of para 125<\/p>\n<p>(b) of the judgment in Steel Authority of India Limited (supra) as<\/p>\n<p>interpreted by the Division Bench of the said High Court in L.P.A. No. 742<\/p>\n<p>of 1993 and Writ Petition No. 4695 of 1999. The advertisements were<\/p>\n<p>quashed. The main judgment was delivered in CWP No. 15484 of 2003.<\/p>\n<p>That case pertained to the State of Punjab.\n<\/p>\n<p>14.   Two other matters including one pertaining to the State of Haryana<\/p>\n<p>came up for consideration before the High Court in CWP No. 16476 of<\/p>\n<p>2003 and CWP No. 16482 of 2003. The main judgment was delivered in<\/p>\n<p>CWP No. 15484 of 2003. The said decision was followed in other cases.<\/p>\n<p>Noticing the decision of this Court in Steel Authority of India Limited<\/p>\n<p>(supra) as contained in para 125(b), it was held:<\/p>\n<blockquote><p>                    &#8220;The observations aforesaid must accordingly be<br \/>\n             applied to the present case. The judgment of this court<br \/>\n             in the LPA is dated 21.7.1998. It is conceded that<br \/>\n             directions given in that judgment had been implemented<br \/>\n             and acted upon and in view of the observations of the<br \/>\n             Supreme Court, the petitioners herein thus fall within the<br \/>\n             exceptions. We have also been referred to the Division<br \/>\n<span class=\"hidden_text\">                                  16<\/span><\/p>\n<p>           Bench Judgment of this Court passed on 22.8.2002, in<br \/>\n           Civil Writ Petition No. 4695 of 1999 Sunil Kumar and<br \/>\n           Others vs. F.C.I. and others. The relevant observations<br \/>\n           are as under:-\n<\/p><\/blockquote>\n<blockquote><p>                 `Consequently, in view of the discussion<br \/>\n                 aforestated, we allow this writ petition,<br \/>\n                 however, limited to the extent that the<br \/>\n                 petitioners would be entitled to the relief in<br \/>\n                 the light of the observations made by the<br \/>\n                 Hon&#8217;ble Court in the case of Steel Authority<br \/>\n                 of India (supra). However, the parties are<br \/>\n                 left to bear their own costs.&#8217;<\/p>\n<p>                 In the aforesaid judgment after considering the<br \/>\n           implications of the judgment of the Supreme Court in<br \/>\n           Steel Authority of India&#8217;s case (supra), the Division<br \/>\n           Bench granted the necessary relief to the petitioners.<\/p><\/blockquote>\n<\/blockquote>\n<blockquote><p>                  We accordingly direct that the petitioners are<br \/>\n           entitled to the same relief. The writ petition is allowed<br \/>\n           in the above terms. In this view of the matter, the<br \/>\n           advertisement Annexure P12 is quashed.                 The<br \/>\n           respondents are directed to take a fresh decision in the<br \/>\n           light of the observations aforesaid within a period of four<br \/>\n           months from the day a certified copy of the order is<br \/>\n           supplied to them.&#8221;<\/p><\/blockquote>\n<p>     Curiously, the appellants have filed only two Special Leave Petitions<\/p>\n<p>bearing No. 22320-21 of 2004 and 22335-36 of 2004 questioning the<\/p>\n<p>decision of the High Court in CWP No. 16476 of 2003 and CWP No. 16482<\/p>\n<p>of 2003 and no Special Leave Petition has been filed against the main<\/p>\n<p>judgment, viz., CWP No. 15484 of 2003.\n<\/p>\n<p><span class=\"hidden_text\">                                    17<\/span><\/p>\n<p>15.    Before, however, embarking on the contentions raised by the parties,<\/p>\n<p>we may also notice that Review Petitions had been filed thereagainst which<\/p>\n<p>by reason of an order dated 21.5.2004 were dismissed.<\/p>\n<p>16.    The Food Corporation of India Class IV Employees&#8217; Union filed a<\/p>\n<p>Writ Petition praying for the following reliefs:<\/p>\n<blockquote><p>              &#8220;i)   a writ in the nature of mandamus or any other writ,<br \/>\n                    order of direction directing the Respondents to<br \/>\n                    employ the persons mentioned in Annexure P\/1 as<br \/>\n                    watchmen in accordance with the directions of the<br \/>\n                    Hon&#8217;ble Supreme Court of India in Steel Authority<br \/>\n                    of India&#8217;s case reported as AIR 2001 SC 3527 and<br \/>\n                    in accordance with the directions given by this<br \/>\n                    Hon&#8217;ble Court in Civil Writ Petition No. 4695 of<br \/>\n                    1999 decided on 22.8.2002 (Annexure P\/8)<\/p>\n<\/blockquote>\n<blockquote><p>ii)    any other writ, order or direction which in the circumstances, of<br \/>\n       this case, this Hon&#8217;ble Court deems fit and proper be also<br \/>\n       passed;\n<\/p><\/blockquote>\n<p>iii)   issuance of advance notices be dispensed with;<\/p>\n<p>iv)    filing of certified copies of annexures be dispensed with;<\/p>\n<pre>v)     cost of the petition be awarded.\"\n\n\n       It was furthermore prayed:\n\n\n             \"i)    that during the pendency of the writ petition, the\n<\/pre>\n<p>                    Respondents be restrained from employing any<br \/>\n                    other persons in preference to the persons<br \/>\n                    mentioned in Annexure P-1;\n<\/p>\n<p><span class=\"hidden_text\">                                    18<\/span><\/p>\n<p>             ii)   and Respondents be directed to dispense with the<br \/>\n                   services of the SPOs\/Home Guards employed as<br \/>\n                   watch and ward staff by way of a stop gap<br \/>\n                   arrangement.&#8221;\n<\/p>\n<\/p>\n<p>17.   A Division Bench of the said Court dismissed the said Writ Petition<\/p>\n<p>giving liberty to the Union to approach the Labour Court.<\/p>\n<p>18.   Special Leave Petition (Civil) No. 2757 of 2006 arose out of the said<\/p>\n<p>order. Raj Kumar and 71 others also filed a Writ Petitioin before the High<\/p>\n<p>Court which was marked as CWP No. 3945 of 2006. Therein a contention<\/p>\n<p>was raised that the petitioners who had been working as watchmen could<\/p>\n<p>not have been asked to appear at a test having regard to the directions issued<\/p>\n<p>by this Court in Steel Authority of India Limited (supra). Reliance therefor<\/p>\n<p>was placed on the decision of the Division Bench of the High Court in CWP<\/p>\n<p>No. 15484 of 2003 as also a decision in <a href=\"\/doc\/323893\/\">Food Corporation of India, Class IV<\/p>\n<p>Employments Union        (Regd.) Sangrur v. Food Corporation of India,<\/p>\n<p>Chandigarh,<\/a> 1999 (1) Punjab Law Reporter 35. The Division Bench opined<\/p>\n<p>that having regard to another Constitution Bench decision of this Court<\/p>\n<p>rendered in <a href=\"\/doc\/1591733\/\">Secretary, State of Karnataka and others v. Umadevi and<\/p>\n<p>others<\/a> [JT 2006 (4) SC 420 : (2006) 4 SCC 1], the Writ Petition is not<\/p>\n<p>maintainable stating :\n<\/p>\n<p><span class=\"hidden_text\">                                  19<\/span><\/p>\n<blockquote><p>                  &#8220;The various grounds raised by the petitioners<br \/>\n           need not be separately dealt with because the Supreme<br \/>\n           Court of India in <a href=\"\/doc\/1591733\/\">Secretary, State of Karnataka and<br \/>\n           others vs. Umadevi and others JT<\/a> 2006 (4) 420, has<br \/>\n           clarified that the right to employment, if it is a part of<br \/>\n           right to file, would stand denuded by preferring persons<br \/>\n           who had got in casually or who had come through the<br \/>\n           back door. It would be consistent with the policy of<br \/>\n           Article 39(a) of the Constitution of India, if the Courts<br \/>\n           recognized that the appointment to a post in government<br \/>\n           service or in the service of its instrumentalities could<br \/>\n           only be by way of a proper selection in a manner<br \/>\n           recognized by legislation in the context of the provisions<br \/>\n           of the Constitution of India.\n<\/p><\/blockquote>\n<blockquote><p>                  This quite clearly would not permit FCI to recruit<br \/>\n           the petitioners who had until 1999 worked for various<br \/>\n           period as watchmen on contract labour. If the petitioners<br \/>\n           are seeking benefit of direction given by this Court in<br \/>\n           Food Corporation of India, Class IV Employments<br \/>\n           Union (Regd.) Sangrur Vs. Food Corporation of India,<br \/>\n           Chandigarh (1999-1) Punjab Law Reporter 35 then in<br \/>\n           Umadevi&#8217;s case (supra), the Supreme Court had also<br \/>\n           clarified that a decision which ran counter to the<br \/>\n           principles settled by them shall stand denuded of their<br \/>\n           effect as precedent.\n<\/p><\/blockquote>\n<blockquote><p>                  Consequently, we have no hesitation in holding<br \/>\n           that all judgments and directions which run counter to<br \/>\n           Umadevi&#8217;s case including judgment of this court in Food<br \/>\n           Corporation of India, Class IV Employments Union<br \/>\n           (Regd.) Sangrur (supra) and any other judgment which<br \/>\n           seems to enforce notification of 1976 to re-employ the<br \/>\n           contract labour stand denuded of its effect as precedent.&#8221;\n<\/p><\/blockquote>\n<p>19.   Mr. Ajit Pudussery, learned counsel appearing on behalf of the<\/p>\n<p>appellant would submit that the Division Bench of the High Court<br \/>\n<span class=\"hidden_text\">                                    20<\/span><\/p>\n<p>misconstrued and misinterpreted the decision of this Court in Steel<\/p>\n<p>Authority of India Limited (supra) as also the decision rendered in the case<\/p>\n<p>of CWP Nos. 4891 and 4887 of 2004 as the fact thereof was confined to the<\/p>\n<p>District of Sangrur only. Each establishment being separate and distinct, the<\/p>\n<p>decision in CWP Nos. 4891 and 4887 of 2004 could not have been applied<\/p>\n<p>in relation to all other godowns.\n<\/p>\n<p>20.   Mr. Dharmendra Kumar Sinha, learned counsel appearing on behalf<\/p>\n<p>of the respondent, on the other hand, would submit that it is incorrect that<\/p>\n<p>the decision of the Punjab &amp; Haryana High Court in CWP Nos. 4891 and<\/p>\n<p>4887 of 2004 was rendered only in relation to the Sangrur District inasmuch<\/p>\n<p>as it was contended that from a perusal of the order passed by the Punjab &amp;<\/p>\n<p>Haryana High Court as also the Circulars issued both by the Central<\/p>\n<p>Government and the Food Corporation of India itself would appear that the<\/p>\n<p>contract labour stood abolished and in that view of the matter the impugned<\/p>\n<p>judgments rendered in CWP No. 15484 of 2003, CWP No. 16482 of 2003<\/p>\n<p>and CWP No. 15694 of 2003 are wholly unassailable.<\/p>\n<p>      The learned counsel would contend that the fact of the matters being<\/p>\n<p>wholly undisputed, the High Court has committed a manifest error in<\/p>\n<p>passing the order dated 15.9.2005 in CWP Nos. 4891 and 4887 of 2004<br \/>\n<span class=\"hidden_text\">                                   21<\/span><\/p>\n<p>which is the subject matter of Special Leave Petition (Civil) No. 2747 of<\/p>\n<p>2006. Furthermore, the right of the workmen having been preserved and<\/p>\n<p>protected in terms of the Constitution Bench decision of this Court in Steel<\/p>\n<p>Authority of India Limited (supra), the High Court manifestly erred in<\/p>\n<p>dismissing the Writ Petition filed by the Raj Kumar &amp; ors. relying on or on<\/p>\n<p>the basis of the Constitution Bench decision in Umadevi (supra).<\/p>\n<p>21.   The core question involved in these appeals is the interpretation of<\/p>\n<p>the judgment of this Court in Steel Authority of India Limited (supra) and<\/p>\n<p>in particular clause (b) of para 125 thereof. Air India (supra) has been<\/p>\n<p>overruled prospectively. What has been directed is that despite the said<\/p>\n<p>judgment, if any order had been passed or any action had been taken giving<\/p>\n<p>effect to the Notification dated 9.12.1976, the same would not be called in<\/p>\n<p>question in any Tribunal or Court including the High Court subject to the<\/p>\n<p>condition that the same has otherwise attained finality or had been<\/p>\n<p>implemented.\n<\/p>\n<\/p>\n<p>22.   What was therefore required to be implemented or finality attached to<\/p>\n<p>any judgment delivered or action taken, relates to the Notification of the<\/p>\n<p>Central Government dated 9.12.1976. We do not find from the discussions<\/p>\n<p>in any of the judgments of the High Court that the said Notification dated<\/p>\n<p>9.12.1976 had been given effect to. We have noticed hereinbefore that the<br \/>\n<span class=\"hidden_text\">                                     22<\/span><\/p>\n<p>Central Government upon becoming the appropriate Government in relation<\/p>\n<p>to the appellant &#8211; Corporation issued a Notification on or about 28.5.1992.<\/p>\n<p>The validity of the said Notification is not in question. Once the prohibition<\/p>\n<p>purported to have been made by the Central Government in terms of its<\/p>\n<p>Notification dated 9.12.1976 stood withdrawn with effect from 28.5.1992,<\/p>\n<p>the question of prohibiting employment of contract labour in sweeping or<\/p>\n<p>watching buildings owned or occupied by all the establishments of Food<\/p>\n<p>Corporation of India, inter alia, would not arise.<\/p>\n<p>      It may be true that the writ petitioner in the writ application, inter alia,<\/p>\n<p>contended that the Corporation had implemented the decision both in<\/p>\n<p>Punjab and Haryana. What was however was sought to be implemented was<\/p>\n<p>the Circular letters issued by the Central Government and\/or the Food<\/p>\n<p>Corporation of India itself, which find reference in the order of this Court<\/p>\n<p>dated 30.8.1999 passed in Special Leave Petition (Civil) No. 4605 of 1999.<\/p>\n<p>      We may notice Circular No. 2 of 1999 as also Office Memorandum<\/p>\n<p>dated 8.2.1999. By reason of the said Office Memorandum dated 8.2.1999,<\/p>\n<p>the Central Government acting as the `appropriate Government&#8217; in respect<\/p>\n<p>of the Food Corporation of India opined that the Notification dated<\/p>\n<p>9.12.1976 is applicable to it and the Regional Labour Commissioner (C)<\/p>\n<p>Chandigarh has initiated action to enforce the said Notification, stating:<br \/>\n<span class=\"hidden_text\">                                    23<\/span><\/p>\n<blockquote><p>             &#8220;In the circumstances, since the jobs in watching of the<br \/>\n             buildings owned or occupied by the establishment, far<br \/>\n             which the Appropriate Government is the Central<br \/>\n             Government, have been prohibited by the notification<br \/>\n             dated 9.12.1976, the Food Corporation of India would be<br \/>\n             well advised not to engage contract labour in the jobs<br \/>\n             specified in the notification.&#8221;<\/p><\/blockquote>\n<p>      The Circular No. 2 of 1999 dated 23.3.1999 issued by the Food<\/p>\n<p>Corporation of India is to the same effect whereby it was directed:<\/p>\n<blockquote><p>             &#8220;In view of the above instructions of the Ministry of<br \/>\n             Labour, you are requested not to engage the contract<br \/>\n             labour in the jobs specified in the notification dated<br \/>\n             9.12.76 (copy enclosed). Further it should be assured<br \/>\n             that the instructions are strictly followed.\n<\/p><\/blockquote>\n<blockquote><p>                   Please acknowledge the receipt.&#8221;<\/p><\/blockquote>\n<p>      What however has not been noticed is the Notification issued under<\/p>\n<p>Section 10(1) by the Central Government itself in the year 1992. The effect<\/p>\n<p>of the Notification issued under sub-Section (1) of Section 10 of the 1970<\/p>\n<p>Act cannot be taken away by a Circular letter issued by the Central<\/p>\n<p>Government or by the appellant itself. The right of the workmen to file a<\/p>\n<p>writ petition for obtaining a writ in the nature of mandamus must be based<\/p>\n<p>on a legal right. This Court in Steel Authority of India Limited (supra)<\/p>\n<p>only recognized an existing right and not any future right.<br \/>\n<span class=\"hidden_text\">                                   24<\/span><\/p>\n<p>      Such a right was to be existing as on 30.8.2001 when the judgment in<\/p>\n<p>Steel Authority of India Limited (supra) was rendered and not thereafter.<\/p>\n<p>Any decision rendered thereafter could not confer a right much less any<\/p>\n<p>other right. In terms of the aforementioned judgment, what has been done is<\/p>\n<p>to recognize such a right and not declaring the same afresh. The law as<\/p>\n<p>enunciated in Steel Authority of India Limited (supra) is very clear. Even<\/p>\n<p>the provisions of 1970 Act are unambiguous and explicit. There has to be a<\/p>\n<p>Notification abolishing contract labour as regards watching of the buildings<\/p>\n<p>or godowns belonging to the Corporation for the purpose of storage of<\/p>\n<p>foodgrains.\n<\/p>\n<p>23.   Whether as on 9.12.1976 the Central Government was the appropriate<\/p>\n<p>Government or not as opined by this Court in Food Corporation of India<\/p>\n<p>Workers&#8217; Union (supra) may not be of much significance as the Central<\/p>\n<p>Government admittedly became the appropriate Government with effect<\/p>\n<p>from 28.1.1986.\n<\/p>\n<\/p>\n<p>24.   Clause (b) of Section 125 uses the word `establishments&#8217; in plural. A<\/p>\n<p>Corporation therefore may have more than one establishment. We may<\/p>\n<p>notice hereinbefore the differences of opinion amongst the Benches of the<\/p>\n<p>Punjab &amp; Haryana High Court itself.\n<\/p>\n<p><span class=\"hidden_text\">                                       25<\/span><\/p>\n<p>         Whereas in the case of `Sunil Kumar&#8217; a Division Bench opined that<\/p>\n<p>the establishment which was the subject matter of L.P.A. No. 742 of 1993<\/p>\n<p>was confined to the district of Sangrur, a different view is sought to be<\/p>\n<p>projected before us.\n<\/p>\n<p>         It is, however, evident from the decision in L.P.A. No. 742 of 1993<\/p>\n<p>dated 21.7.1998 that the petitioner therein confined its case to Sangrur. It<\/p>\n<p>was the Sangrur branch of the Union which filed the application. The<\/p>\n<p>learned counsel may be correct that while allowing the Writ Petition, no<\/p>\n<p>distinction was made between one or the other godowns or one or the other<\/p>\n<p>Regional Offices situated either in the State of Punjab or in the State of<\/p>\n<p>Haryana. But as is well known, a judgment must be construed on its own<\/p>\n<p>facts.     Application of the said judgment in relation to the Sangrur<\/p>\n<p>establishment of the Corporation is not in dispute. But the question as to<\/p>\n<p>whether in absence of any valid Notification abolishing contract labour the<\/p>\n<p>same could be held to be binding on other establishments or not required<\/p>\n<p>serious consideration. The High Court unfortunately in its judgment did not<\/p>\n<p>pose any such question.\n<\/p>\n<p>         It is interesting to notice that the writ petition filed by the Union and<\/p>\n<p>of the Raj Kumar apparently proceeded on the basis that they were<br \/>\n<span class=\"hidden_text\">                                   26<\/span><\/p>\n<p>appointed by the Corporation. In the writ petition filed by Raj Kumar and<\/p>\n<p>others, camouflage was pleaded.\n<\/p>\n<p>      What was sought to be contended was that the contractor was supplier<\/p>\n<p>of labour. It was not the contention that the watchmen had been deployed<\/p>\n<p>by the contractor. The gravamen of the contention is that for all intent and<\/p>\n<p>purport they have been appointed by the Corporation itself. It was stated<\/p>\n<p>that the Assistant Manager used to prepare the duty list of the watchmen. It<\/p>\n<p>has categorically been averred:\n<\/p>\n<\/p>\n<blockquote><p>            &#8220;That although the petitioners were shown to have been<br \/>\n            employed through the contractor yet the petitioners<br \/>\n            worked under the direct supervision and control of the<br \/>\n            officials of the respondent &#8211; Corporation.&#8221;\n<\/p><\/blockquote>\n<blockquote><p>      This Court in <a href=\"\/doc\/1160961\/\">Steel Authority of India Ltd. v. Union of India &amp; ors.<\/a>\n<\/p><\/blockquote>\n<p>[2006 (9) SCALE 597] held:\n<\/p>\n<\/p>\n<blockquote><p>                  &#8220;22. We may reiterate that neither the<br \/>\n            Labour Court nor the writ court could determine<br \/>\n            the question as to whether the contract labour<br \/>\n            should be abolished or not, the same being within<br \/>\n            the exclusive domain of the Appropriate<br \/>\n            Government.\n<\/p><\/blockquote>\n<blockquote><p>            23. A decision in that behalf undoubtedly is<br \/>\n            required to be taken upon following the procedure<br \/>\n            laid down in Sub-section (1) of Section 10 of the<br \/>\n<span class=\"hidden_text\">                                     27<\/span><\/p>\n<p>             1947 Act. A notification can be issued by an<br \/>\n             appropriate Government prohibiting employment<br \/>\n             of contract labour if the factors enumerated in<br \/>\n             Sub-section (2) of Section 10 of the 1970 Act are<br \/>\n             satisfied.\n<\/p><\/blockquote>\n<blockquote><p>             24. When, however, a contention is raised that<br \/>\n             the contract entered into by and between the<br \/>\n             management and the contractor is a sham one, in<br \/>\n             view of the decision of this Court in Steel<br \/>\n             Authority of India Limited (supra), an industrial<br \/>\n             adjudicator would be entitled to determine the said<br \/>\n             issue. The industrial adjudicator would have<br \/>\n             jurisdiction to determine the said issue as in the<br \/>\n             event if it be held that the contract purportedly<br \/>\n             awarded by the management in favour of the<br \/>\n             contractor was really a camouflage or a sham one,<br \/>\n             the employees appointed by the contractor would,<br \/>\n             in effect and substance, be held to be direct<br \/>\n             employees of the management. The view taken in<br \/>\n             the Steel Authority of India Limited (supra) has<br \/>\n             been reiterated by this Court subsequently. [See<br \/>\n             e.g. <a href=\"\/doc\/1840475\/\">Nitinkumar Nathalal Joshi and Ors. v. Oil and<br \/>\n             Natural Gas Corporation Ltd. and Ors. and<br \/>\n             Municipal Corporation of Greater Mumbai<\/a> v. K.V.<br \/>\n             Shramik Sangh and Ors.&#8221;\n<\/p><\/blockquote>\n<blockquote><p>      The writ petition, therefore, was not maintainable.<\/p><\/blockquote>\n<p>      Out attention, however, has been drawn to the fact that the direction<\/p>\n<p>of the High Court in L.P.A. No. 742 of 1993 was applicable both to Punjab<\/p>\n<p>as well as Haryana which had not been denied or disputed. We may notice<\/p>\n<p>the following contention raised in the petition in this regard.<br \/>\n<span class=\"hidden_text\">                                     28<\/span><\/p>\n<blockquote><p>             &#8220;This direction it is submitted is applicable both to<br \/>\n             Punjab as well as Haryana as both fall within the<br \/>\n             jurisdiction of this Hon&#8217;ble Court.&#8221;<\/p><\/blockquote>\n<p>      The said statement therefore was primarily made for invoking the<\/p>\n<p>jurisdiction of the High Court. In any event, if a decision is not applicable as<\/p>\n<p>has been found by one Bench of the High Court, the same would not<\/p>\n<p>become applicable only because the Corporation failed to rebut the said<\/p>\n<p>contention. It is a question of jurisdiction.\n<\/p>\n<\/p>\n<p>25.   The writ petitions of the workmen do not disclose the names of the<\/p>\n<p>contractors. It has not been disclosed as to whether the contractors were<\/p>\n<p>registered or not. What are the terms and conditions of employment have<\/p>\n<p>also not been stated.      On and from which date each individual was<\/p>\n<p>appointed and by which contractor and in respect of which establishment<\/p>\n<p>has not been disclosed.\n<\/p>\n<\/p>\n<p>      The writ petition filed by the Raj Kumar and others categorically<\/p>\n<p>show that the averments made therein proceeded on the basis that the actual<\/p>\n<p>employer was the Corporation. If that be so, having regard to the decision<\/p>\n<p>of this Court in Steel Authority of India Limited (supra), the writ petition<br \/>\n<span class=\"hidden_text\">                                     29<\/span><\/p>\n<p>could not have been entertained. No authority or forum has scrutinized the<\/p>\n<p>records. The registers maintained by the so-called contractors had not been<\/p>\n<p>scrutinized. It was obligatory on the part of the High Court to take recourse<\/p>\n<p>thereto. The benefit of any order or action taken will be a reputation to<\/p>\n<p>State must have a direct nexus with the Notification dated 9.12.1976, that<\/p>\n<p>9.12.1976 Notification ceased to have any application, question of its<\/p>\n<p>attained finality in law would not arise.\n<\/p>\n<\/p>\n<p>26.   Our attention has been drawn to the Order dated 23.1.2004 passed in<\/p>\n<p>CWP No. 15484 of 2003 wherein it was recorded:\n<\/p>\n<\/p>\n<blockquote><p>             &#8220;It is the conceded position that the matter was taken by<br \/>\n             the Food Corporation of India in a special Leave Petition<br \/>\n             before the Supreme Court which too was dismissed on<br \/>\n             30.08.1999. It is further conceded that the directions of<br \/>\n             the Division Bench were subsequently complied with by<br \/>\n             the Food Corporation of India.&#8221;<\/p><\/blockquote>\n<p>      What was conceded was the implementation of the order in relation to<\/p>\n<p>Sangrur District and not others. We therefore do not find any illegality in<\/p>\n<p>the order dated 15.9.2005 passed in CWP No. 4891 of 2004. So far as the<\/p>\n<p>order passed in CWP No. 3945 of 2006 is concerned we again do not find<\/p>\n<p>any illegality therein apart from the fact that on their own showing, the writ<\/p>\n<p>petition was not maintainable.\n<\/p>\n<p><span class=\"hidden_text\">                                     30<\/span><\/p>\n<p>27.   Keeping in view the decision of this Court in Steel Authority of<\/p>\n<p>India Limited (supra), it is evident from the writ petition itself that another<\/p>\n<p>right, viz., a right under Section 25(h) of the Industrial Disputes Act, 1947<\/p>\n<p>had been claimed. The benefit of Steel Authority of India Limited (supra)<\/p>\n<p>was sought to be invoked without stating the requisite foundational facts<\/p>\n<p>therefor.\n<\/p>\n<\/p>\n<p>      They were asked to appear in the written test. They were asked to do<\/p>\n<p>so for judging their eligibility. They must know how to read and write.<\/p>\n<p>They were required to show that they were in a position to perform their<\/p>\n<p>duties as watchmen. Their contention that they should be exempted from<\/p>\n<p>appearing at the written test was wholly unfounded. The High Court may<\/p>\n<p>not be correct in following the Constitution Bench decision of this Court in<\/p>\n<p>Umadevi (supra), but there cannot be any doubt whatsoever that the<\/p>\n<p>ultimate conclusion of the High Court is correct; particularly, when it had<\/p>\n<p>categorically been stated in the written reply of the Corporation that the<\/p>\n<p>recruitment for the post provided for a test so that it could be determined as<\/p>\n<p>to whether the candidates were literate or not. We may furthermore notice<\/p>\n<p>that in para 3 of the said written reply it was stated by the Corporation :<\/p>\n<blockquote><p>             &#8220;&#8230;Some persons were employed as Watchmen\/security<br \/>\n             guards through contractors\/security agencies. It is wrong<br \/>\n<span class=\"hidden_text\">                                    31<\/span><\/p>\n<p>             that the appointment was shown to be through<br \/>\n             contractor. The correct position is that the said workmen<br \/>\n             were employees of the contractor. No watchman who<br \/>\n             was the employee of the contractor was given<br \/>\n             appointment letter by the answering respondent.<br \/>\n             Whether the contractor concerned issued any<br \/>\n             appointment letter or not in the knowledge of the<br \/>\n             answering respondent. This fact can be disclosed by the<br \/>\n             contractor.&#8221;<\/p><\/blockquote>\n<p>      [See Bharat Heavy Electric Ltd. v. E.S.I. Corporation, AIR 2008<\/p>\n<p>SCW 1494]<\/p>\n<p>      A series of disputed questions of fact therefore was raised. Even on<\/p>\n<p>that premise, the writ petition was, thus, not maintainable.<\/p>\n<p>28.   We therefore allow the appeals arising out of Petition for Special<\/p>\n<p>Leave to Appeal (Civil) Nos. 22320-22321 of 2004 and 22335-22336 of<\/p>\n<p>2004 and dismiss the appeals arising out of Petition for Special Leave to<\/p>\n<p>Appeal (Civil) Nos. 1742 of 2008 and 2757 of 2006.<\/p>\n<p>29.   In view of the fact that the order dated 23.1.2004 passed in CWP No.<\/p>\n<p>15484 of 2003 is not in question, the same must be held to have been<br \/>\n<span class=\"hidden_text\">                                   32<\/span><\/p>\n<p>attained finality. In the facts and circumstances of the case, however, there<\/p>\n<p>shall be no order as to costs.\n<\/p>\n<\/p>\n<p>                                                   &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..J.\n<\/p>\n<p>                                                   [S.B. Sinha]<\/p>\n<p>                                                   &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..J.\n<\/p>\n<p>                                                   [V.S. Sirpurkar]<br \/>\nNew Delhi<br \/>\nMay 16, 2008<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Food Corporation Of India &amp; Anr vs Pala Ram &amp; Ors on 16 May, 2008 Author: S Sinha Bench: S.B. Sinha, V.S. Sirpurkar REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NOS.__3641-42 OF 2008 (Arising out of SLP (C) No.22320-22321 of 2004) FOOD CORPORATION OF INDIA &amp; [&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":[30],"tags":[],"class_list":["post-207408","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Food Corporation Of India &amp; Anr vs Pala Ram &amp; Ors on 16 May, 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\/food-corporation-of-india-anr-vs-pala-ram-ors-on-16-may-2008\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Food Corporation Of India &amp; 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