LPA 408/2013, CM APPL. 9309/2013, LPA 391/2013, CM APPL. 9111/2013, LPA 392/2013, CM APPL. 9114/2013, LPA 394/2013, CM APPL. 9126/2013, LPA 395/2013, CM APPL. 9134/2013, LPA 396/2013, CM APPL. 9137/2013, LPA 397/2013, CM APPL. 9141/2013, LPA 398/2013, CM APPL. 9147/2013, LPA 399/2013, CM APPL. 9152/2013, LPA 400/2013, CM APPL. 9155/2013, LPA 40.... Case: Gopal Vs Bharat Sanchar Nigam Ltd.. High Court of Delhi (India)

Case NumberLPA 408/2013, CM APPL. 9309/2013, LPA 391/2013, CM APPL. 9111/2013, LPA 392/2013, CM APPL. 9114/2013, LPA 394/2013, CM APPL. 9126/2013, LPA 395/2013, CM APPL. 9134/2013, LPA 396/2013, CM APPL. 9137/2013, LPA 397/2013, CM APPL. 9141/2013, LPA 398/2013, CM APPL. 9147/2013, LPA 399/2013, CM APPL. 9152/2013, LPA 400/2013, CM APPL. 9155/2013, LPA 40...
CounselFor Appellant: Bijender Singh, Advocate and For Respondents: Raavi Birbal, Advocate
JudgesP. K. Bhasin and J. R. Midha, JJ.
IssueContract Labour (Regulation and Abolition) Act, 1970 - Section 10; Industrial Disputes Act, 1947 - Sections 17B, 2(oo), 25F, 25G, 25N
Judgement DateJuly 03, 2014
CourtHigh Court of Delhi (India)

Judgment:

J. R. Midha, J.

  1. The appellants have challenged the judgment dated 20th March, 2013 whereby the learned Single Judge has set aside the award passed by the Central Government Industrial Tribunal-cum-Labour Court (hereinafter referred to as 'CGIT'):

    Factual matrix

  2. The facts of all the appeals are common and, therefore, the facts in LPA 408/2013 are being noted herein.

  3. Gopal, appellant in LPA 408/2013 (hereinafter referred to as the appellant) issued a notice of demand dated 10th September, 2002 to the respondent in which he claimed to be continuously working with the respondent since July 1994 on the post of Guard at a salary of Rs. 2,650/- per month. The appellant sought reinstatement with backwages.

  4. The conciliation proceedings were held before the Assistant Labour Commissioner. The respondent in its reply before Assistant Labour Commissioner, denied having ever employed or terminated the appellant and stated that the various functions of the department were carried out through the contractor.

  5. Upon failure of the Conciliation proceedings, the Central Government referred the following industrial dispute to the learned CGIT:

    Whether the termination of services of S/Shri Harinder Singh, Security Guard w.e.f. of 01.09.2002, Gopal, Security Guard w.e.f. 01.09.2002, Narender, Security Guard w.e.f. 01.02.2002, Bhagat Singh, Security Guard w.e.f. 01.09.2002, Roop Ram, Security Guard w.e.f. 01.09.2002, Tejveer, Security Guard w.e.f. 01.09.2002, Sanjay, Security Guard w.e.f. 01.09.2002, Satveer Singh, S/o. Shri Hari Ram, Guard and Shri Sher Singh, S/o. Shri Harchanda Nagar, Guard w.e.f. 01.09.2002 by the management of BSNL, Faridabad is just and legal? If not, to what relief the workmen are entitled.

  6. In the claim statement dated 1st April, 2004, the appellant reiterated that he was employed with the respondent's since July 1994 as a Security Guard at a monthly salary of Rs. 2,650/- and was terminated on 1st September, 2002; the respondent did not provide him any appointment letter, attendance card or wages slip; ESI and PF were deducted but the ESI card and the PF slip were not provided to him; and he was terminated on 1st September, 2002 without any written order and was told that the contract has been given to Anuradha Security Services.

  7. The respondent in its written statement reiterated that they never appointed the appellant and as such, there was no employer-employee relationship between the parties. It was further stated that BSNL had not even been created in 1994 when the appellant claimed to have joined the respondent. It was further stated that the security personnel were hired through the contractor.

  8. The appellant, in his evidence by way of affidavit, reiterated the contentions mentioned above. However, in cross-examination, the appellant contradicted his date of employment set up in the demand notice and statement of claim i.e. July 1994 and deposed that he was engaged in 1996 but he did not remember the month. The appellant denied being employed through three security contractors, namely, Laxman Security Agencies, Keshav Security Services and Anuradha Security Services who had provided the security according to the respondent.

  9. The respondent's AGM (Legal) in his evidence by way of affidavit deposed that the appellant was neither employed nor terminated by the respondent and there was no employer-employee relationship between the parties. The witness further deposed that BSNL was not even created in 1994 and at that time only Department of Telecom was in existence. The witness further deposed that nobody was appointed without following the rules. The witness further deposed that the respondent was required to engage security personnel from DGR's sponsored agency in terms of the office memorandum dated 1st February, 1999 issued by the Department of Public Enterprises, Defence Ministry circular dated 26th April, 2001 and BSNL memorandum dated 3rd April, 2002.

  10. The learned CGIT passed a common award dated 4th December, 2006 holding the appellants to be the employees of the respondent; the termination to be illegal; and the contract between the respondent and the contractor to be sham. The learned CGIT directed reinstatement of the appellants with 50% backwages w.e.f. 1st September, 2002.

  11. The learned Single Judge allowed the writ petition of the respondent and set aside the common award of CGIT on various grounds inter alia that there was no employer-employee relationship between the parties and the issue as to whether the contract between the respondent and the contractor was sham, was not even referred to the learned Tribunal. The learned Single Judge held the finding of the learned CGIT to be without jurisdiction. However, the learned Single Judge granted relief to the appellants to the effect that wages under Section 17B received by them after termination to be treated as compensation.

    Submissions on behalf of the appellant

  12. Learned counsel for the appellants could not dispute that the issue as to whether the contract between the respondent and the contractor was sham and bogus, was not at all referred to the learned Tribunal. It was however submitted that the real dispute between the parties was whether the workmen were the employees of the contractor or of the respondent though the reference made to the learned CGIT did not directly address this issue. The reference made by the Central Government is suggestive of issues and is simply framed to give direction to the Tribunal in regard of the dispute. The onus to prove the contract was on the respondent who did not discharge the same and therefore, the learned CGIT was justified in holding the alleged contract to be sham and camouflage. The...

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