VidhiSangh

Supreme Court of India · 20/02/2019

BHARAT HEAVY ELECTRICALS LTD. versus MAHENDRA PRASAD JAKHMOLA & ORS.

[2019] 4 S.C.R. 504 · 2019 INSC 244

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Summary

The Court set aside an award reinstating contract workers as BHEL employees and the High Court judgments sustaining it. Gate passes issued for security, disputed concessions and ordinary directions about assigned work did not establish direct employment or a sham contract. The Labour Court had applied an inapplicable prohibition notification and the extended statutory employer definition without the necessary evidence. The resulting findings were perverse and amenable to judicial review.

Issues

  1. Whether the evidence established direct employment by BHEL or a sham contract-labour arrangement.
  2. Whether the extended employer definition applied without proof of the nature of the contracted work.

Provisions considered

Held

Result

Appeals allowed; High Court judgments and Labour Court reinstatement award set aside.

Judgment PDF: Supreme Court of India, [2019] 4 S.C.R. 504.