NDLI: The Director Steel Authority of India Ltd.v. Ispat Khadan Janta Mazdoor Union Vs. Ispat Khadan Janta Mazdoor Union

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Scheme ofautomatic absorption of contract labour Contract Labour (Regulation & Abolition) Act 1970
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Act(s) Referred	Constitution of India Contract Labour (regulation and Abolition) Act, 1970 (37 of 1970) Indian Contract Act, 1872 (9 of 1872)
Case(s) Referred	Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Disposed Off
Headnote	Contract Labour (Regulation & Abolition) Act, 1970 – ss.7, 10(1), 12, 23 and 25 – Tripartite agreement entered between the appellant, contractors and contract labour (working in the captive mines of the appellant) as per which the contract labours were paid due wages, not less than the rates prescribed under the 1948 Act – Prohibition notification dated 17th March, 1993 issued by the appropriate Government u/s.10(1) of the CLRA Act – No fresh agreement, in the interregnum period, was executed – Existing agreement was extended from time to time and the contract labour was allowed to continue on the same terms and conditions, till their services were terminated by the contractor in April, 1996 – Matter eventually referred to the Central Government Industrial Tribunal (CGIT) – CGIT inter alia held that the contract between the appellant and the contractors was genuine and not sham and bogus – High Court reversed the finding and held the contract to be sham and bogus – On appeal, held: Supreme Court in the Constitution Bench judgment in Steel Authority of India Ltd. made it clear that neither s.10 nor any other provision in the CLRA Act provides for automatic absorption of contract labour on issuance of prohibition notification u/s.10(1) of the CLRA Act, and consequently the principal employer is not under legal obligation to absorb the contract labour working in the establishment – Tribunal rightly concluded that the contract was not sham and bogus and there shall be no automatic absorption of contract labour on issuance of prohibition notification under the CLRA Act – However, the finding of the CGIT that after the issuance of prohibition notification, the contract became sham and bogus is not sustainable – Mere issuance of the prohibition notification under CLRA Act will not make the contract/agreement void ab initio or bad in law – If the employees are allowed to continue in terms of the earlier agreement after the prohibition notification came into force, it may be illegal and continuance of service in the absence of any contract has to face the penal consequences under the CLRA Act – Impugned judgment set aside – Minimum Wages Act, 1948 – Industrial Disputes Act, 1947 – s.10(1), 25(H)– Constitution of India – Arts. 12, 226 and 227 – Indian Contract Act, 1872 – s.23. Contract Labour (Regulation & Abolition) Act, 1970 – Scheme of – Discussed.
Judge	Hon'ble Mr. Justice Ajay Rastogi
Neutral Citation	2019 INSC 728
Petitioner	The Director Steel Authority Of India Ltd.v. Ispat Khadan Janta Mazdoor Union
Respondent	Ispat Khadan Janta Mazdoor Union
SCR	[2019] 9 S.C.R. 123
Judgement Date	2019-07-05
Case Number	8081

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1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
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The Director Steel Authority of India Ltd.v. Ispat Khadan Janta Mazdoor Union Vs. Ispat Khadan Janta Mazdoor Union

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