Case Note & Summary
The dispute arose between the Andhra Pradesh State Road Transport Corporation and certain individuals claiming to be employed as scavengers. The Corporation issued a Circular on 1.9.1988 outlining guidelines for the absorption of casual workers, which excluded contract labour. The respondents filed multiple writ petitions seeking regularization and absorption, which were initially directed to be considered by the Corporation. However, the Corporation maintained that the respondents were contract labour and thus not entitled to the benefits of the Circular. The High Court, in earlier proceedings, directed the Corporation to consider the claims without examining the merits. The Supreme Court analyzed the legal framework surrounding contract labour and absorption, referencing previous judgments that clarified the conditions under which contract labour could be absorbed. The court concluded that the absence of a prohibition notification under Section 10(1) of the CLRA Act meant the respondents could not claim absorption. The court allowed the appeal, set aside the High Court's order, and dismissed the writ petition, while granting liberty to the respondents to seek relief from the Industrial Tribunal.
Headnote
A) Labour Law - Absorption of Contract Labour - Entitlement to Absorption - Contract Labour (Regulation and Abolition) Act, 1970, Section 10(1) - The court held that the respondents, being contract labour, were not entitled to absorption under the Circular dated 1.9.1988 as there was no notification prohibiting contract labour under Section 10(1) of the CLRA Act. The court emphasized that the respondents must approach the Industrial Tribunal to establish their claim for absorption (Paras 10-11).
Issue of Consideration
Whether the respondents, employed as contract labour, were entitled to absorption under the Circular dated 1.9.1988.
Final Decision
The Supreme Court allowed the appeal, set aside the order of the High Court, and dismissed the writ petition filed by the respondents. The court clarified that the respondents could approach the Industrial Tribunal for relief if necessary.
Law Points
- Absorption of contract labour
- guidelines for absorption
- judicial review
- relationship of employer and employee
- principles of natural justice


