VidhiSangh

Supreme Court of India · 05/07/2019

THE DIRECTOR STEEL AUTHORITY OF INDIA LTD.V. ISPAT KHADAN JANTA MAZDOOR UNION versus ISPAT KHADAN JANTA MAZDOOR UNION

[2019] 9 S.C.R. 123 · 2019 INSC 728

AI-generated headnote. Verify against the judgment before relying on it. Paragraph numbers refer to the judgment.

Summary

Prohibition of contract labour did not automatically absorb the workers into SAIL’s service or convert a genuine contract into a sham arrangement. The Tribunal’s evidence-based findings concerning appointment, wages, discipline and ultimate control supported genuine contractor employment. The High Court exceeded its limited judicial-review role by reappreciating that evidence. Continued engagement contrary to the prohibition could attract statutory penal consequences, for which the union’s remedy remained open.

Issues

  1. Whether continuation after the prohibition notification automatically made the contract sham or entitled the workers to absorption.
  2. Whether the High Court could substitute its factual assessment for the Tribunal’s supported findings.

Held

Result

Appeals disposed of; High Court judgment dated 6 September 2010 directing reinstatement and consideration for regularisation set aside. Respondent left free to pursue remedies for alleged breaches of the Contract Labour (Regulation and Abolition) Act in accordance with law. No costs; pending applications disposed of.

Judgment PDF: Supreme Court of India, [2019] 9 S.C.R. 123.