Case Note & Summary
These two cross writ petitions arose from an Industrial Tribunal award dated 25.04.2019 in Reference (IT) No.41 of 2005. Sarva Shramik Sangh, a registered trade union, filed Writ Petition No.2644 of 2020 on behalf of 53 workmen employed as sweepers, aayas and ward boys at Chhatrapati Shivaji Maharaj Hospital, Kalwa, run by Thane Municipal Corporation. The Corporation and its Dean filed Writ Petition No.10432 of 2023 challenging the same award. The workmen had earlier filed Complaint (ULP) No.281 of 1995 under Section 28 of the MRTU & PULP Act seeking permanency, which was dismissed for want of jurisdiction based on Supreme Court decisions in Cipla Limited and Kalyani Steel. The union then raised a demand for reinstatement with full backwages and continuity of service. Conciliation failed and the State Government referred the dispute to the Industrial Tribunal on 27.05.2005. The union contended that the workmen were employed on regular, day-to-day basis, fully integrated with hospital activities, worked alongside permanent workers, and their names appeared in ward attendance registers. They claimed continuous service of more than 240 days per year and that oral termination without notice or retrenchment benefits was illegal. The Corporation maintained that the workmen were engaged by contractor M/s. Khankal Enterprises, who supervised and paid them, and that there was no employer-employee relationship with the Corporation. It also argued that the reference was not maintainable and became infructuous because the contract expired on 12.08.2005. The Industrial Tribunal framed five issues and answered Issue Nos.1 and 2 in the affirmative, holding that the workmen were employees of the Corporation and their termination was illegal; Issue No.3 in the negative, denying reinstatement and backwages but awarding lumpsum compensation of Rs.1 lakh; and Issue Nos.4 and 5 in the negative, finding the Corporation failed to prove contractor engagement and license. Both parties challenged the award. The union argued that once the Tribunal found illegal termination and employer-employee relationship, denial of reinstatement and backwages was a grave error. The Corporation argued that the Tribunal erred in holding the workmen as its employees and that its own findings on contractor issues were wrong. The extracted judgment text ends after recording the submissions and before the court's analysis and final decision; therefore no operative order or ratio decidendi is available. The case was heard by a single judge of the High Court of Judicature at Bombay.
Headnote
A) Labour Law - Employer-Employee Relationship - Industrial Disputes Act, 1947 - Whether contract workers engaged through contractor are employees of principal employer - Industrial Tribunal held that 53 workmen (Aayas, Ward Boys, Sweepers) were employees of Thane Municipal Corporation and their services were terminated illegally without due process; Corporation challenged this finding contending that workers were appointed by contractor M/s. Khankal Enterprises and had no privity of contract with Corporation (Paras 4, 5.1, 5.2, 5.3, 5.5).
B) Labour Law - Termination of Service - Industrial Disputes Act, 1947 - Legality of oral termination without notice or retrenchment benefits - Tribunal found termination illegal due to non-compliance with statutory requirements; Union argued entitlement to reinstatement and backwages once termination held illegal; Corporation argued termination valid as no sanctioned posts or recruitment through Corporation (Paras 3.2, 4.1, 5.4).
C) Labour Law - Contract Labour Regulation - Contract Labour (Regulation & Abolition) Act, 1970 - Validity of contractor engagement and license - Tribunal answered Issue Nos.4 and 5 in negative, finding Corporation failed to prove that workers were provided by contractor and contractor held valid license; Union relied on this to claim direct employment; Corporation contended finding was erroneous (Paras 4.2, 5.6).
D) Labour Law - Relief and Compensation - Industrial Disputes Act, 1947 - Reinstatement with full backwages versus lumpsum compensation - Tribunal denied reinstatement and backwages, awarding Rs.1 lakh compensation; Union argued denial was grave error after findings of illegal termination; Corporation supported compensation but challenged employer finding (Paras 4.1, 4.3).
E) Labour Law - Jurisdiction and Maintainability - Industrial Disputes Act, 1947 and Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 - Maintainability of reference after expiry of contract and jurisdiction of Industrial Tribunal - Corporation argued Reference was not maintainable and infructuous because contract expired on 12.08.2005; Union relied on earlier ULP complaint disposed of for want of jurisdiction and subsequent reference (Paras 3, 3.1, 5.1).
Issue of Consideration
Whether the 53 workmen were employees of Thane Municipal Corporation; whether their services were terminated illegally without following due process; whether they were entitled to reinstatement with full backwages; whether the workers were provided by a contractor and whether the contractor held a valid license; whether the reference was maintainable and not infructuous
Law Points
- Industrial Disputes Act
- 1947
- Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act
- 1971
- Contract Labour (Regulation & Abolition) Act
- 1970
- Bombay Provincial Municipal Corporations Act
- 1949
- employer-employee relationship
- contract labour
- permanency
- reinstatement
- backwages
- termination
- 240 days continuous service
- jurisdiction of Industrial Tribunal
- maintainability of reference
- unfair labour practice
Case Details
2025 LawText (BOM) (08) 78
Writ Petition No. 2644 of 2020 along with Writ Petition No. 10432 of 2023
Ms. Jane Cox, Advocate for Petitioner in Writ Petition No. 2644 of 2020 and Respondent No.1 in Writ Petition No. 10432 of 2023; Mr. R.S. Apte, Senior Advocate for Petitioners – Thane Municipal Corporation in Writ Petition No. 10432 of 2023 and Respondents in Writ Petition No. 2644 of 2020
Sarva Shramik Sangh (Union) in Writ Petition No. 2644 of 2020; The Commissioner, Thane Mahanagar Palika and The Dean, Chhatrapati Shivaji Maharaj Hospital in Writ Petition No. 10432 of 2023
The Commissioner, Thane Mahanagar Palika; The Dean, Chhatrapati Shivaji Maharaj Hospital; M/s. Khankal Enterprises in Writ Petition No. 2644 of 2020; Sarva Shramik Sangh and M/s. Khankal Enterprises in Writ Petition No. 10432 of 2023
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Nature of Litigation
Cross writ petitions challenging Industrial Tribunal Award in Reference (IT) No.41 of 2005 regarding regularisation and termination of 53 contract workers in a municipal hospital.
Remedy Sought
Union seeks reinstatement with full backwages and continuity of service; Corporation seeks to overturn findings that workmen are its employees and termination illegal.
Filing Reason
Industrial Tribunal's award dated 25.04.2019 partly in favor of Union on issues of employer-employee relationship and illegal termination, but denied reinstatement and backwages, awarding compensation; both parties aggrieved.
Previous Decisions
Industrial Tribunal Award dated 25.04.2019: Issue Nos.1 and 2 answered affirmative (workmen are employees of Corporation, termination illegal), Issue No.3 negative (no reinstatement/backwages), Issue Nos.4 and 5 negative (Corporation not proved contractor engagement and license); lump sum compensation Rs.1 lakh awarded.
Issues
Whether the II Party, Ms. Lata Ujale and other 52 workmen, prove that they were the employees of Thane Municipal Corporation?
Whether the II Party, Ms. Lata Ujale & others prove that their services were terminated illegally and without following the due process of law?
Whether the II Party, Ms. Lata Ujale & others are entitled for reinstatement with full back wages?
Whether the Ist Party Hospital proves that the said workers were provided by Ist Party No.3 M/s. Khankal Enterprises, a Contractor, for rendering the services in the Hospital run by the Thane Municipal Corporation?
Whether the I Party No.3, M/s. Khankal Enterprises prove that he was holding a valid license as a contract under the Contract Labour (Regulation & Abolition) Act?
Whether the Reference was maintainable and Tribunal had jurisdiction to decide the same?
Whether the contract expiry on 12.08.2005 made the Reference infructuous?
Submissions/Arguments
Union argued that once the Tribunal found illegal termination and employer-employee relationship, denial of reinstatement and backwages was a grave error.
Union contended that findings on Issue Nos.4 and 5 (no contractor engagement or license) compelled reinstatement with full backwages.
Union submitted that overwhelming oral and documentary evidence supported the affirmative findings on Issue Nos.1 and 2.
Corporation argued that the Reference itself was not maintainable and Tribunal had no jurisdiction; contract expired on 12.08.2005 making reference infructuous.
Corporation contended that workmen were appointed by contractor M/s. Khankal Enterprises, had no nexus with Corporation, and were not recruited through statutory procedure under Bombay Provincial Municipal Corporations Act, 1949.
Corporation argued that primary work of cleaning and sweeping was separate from main hospital activities and supervised by contractor who maintained separate muster roll and paid wages.
Corporation asserted oral termination was valid because no sanctioned posts existed and no employer-employee relationship was established.
Judgment Excerpts
The Award dated 25.04.2019 is appended at Exhibit ‘A’ – page No.23 of Writ Petition No.2644 of 2020.
Issue Nos. 1 and 2 are answered in the affirmative whereas Issue Nos. 3, 4 and 5 are answered in the negative.
the workmen were in continuous service of the Corporation and had put in more than 240 days in each respective year for several years
once the Industrial Tribunal has come to the definite conclusion that the Union proved that the 53 workmen were employees of the Corporation and their services were terminated illegally without following the due process of law, then in that case denial of reinstatement, backwages and other benefits to the workmen is a grave error
the Reference itself was not maintainable and Tribunal had no jurisdiction to decide the same
contract awarded by the Corporation to Contractor expired on 12.08.2005 and therefore the Reference was infructuous
Procedural History
Union filed Complaint (ULP) No.281 of 1995 under Section 28 of MRTU & PULP Act seeking permanency; disposed of for want of jurisdiction based on Supreme Court judgments in Cipla Limited and Kalyani Steel. Union espoused cause for reinstatement with full backwages and continuity of service. Conciliation Officer submitted failure report dated 17.09.2004. State Government by order dated 27.05.2005 referred dispute to Industrial Tribunal. Industrial Tribunal passed Award dated 25.04.2019 in Reference (IT) No.41 of 2005. Writ Petition No.2644 of 2020 filed by Union and Writ Petition No.10432 of 2023 filed by Corporation challenging the Award.
Acts & Sections
- Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: Section 28
- Industrial Disputes Act, 1947:
- Contract Labour (Regulation & Abolition) Act, 1970:
- Bombay Provincial Municipal Corporations Act, 1949:
