Bombay High Court Allows ONGC's Petition Against Industrial Tribunal Award on Pay Fixation for Contract Workers. The Court held that the Tribunal exceeded its jurisdiction by directing ONGC to directly pay wages to contract labour without a finding of employer-employee relationship.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

The writ petition was filed by Oil and Natural Gas Corporation Limited (ONGC) challenging an award passed by the Central Government Industrial Tribunal-2 (CGIT) at Mumbai. The reference concerned a charter of demands made by Oil Field Employees Association (Respondent No.1) regarding fixation of pay and allowances of workmen who were regularly working for ONGC but paid through contractors. The Tribunal passed an award directing ONGC to fix pay and allowances of these workmen. ONGC challenged the award on the ground that the Tribunal exceeded its jurisdiction as there was no determination of employer-employee relationship between ONGC and the workmen. The High Court allowed the petition, holding that the Tribunal could not have directed ONGC to pay wages without first deciding that ONGC was the employer. The award was set aside.

Headnote

A) Industrial Law - Reference - Jurisdiction of Industrial Tribunal - Section 10(1)(d) of Industrial Disputes Act, 1947 - The Tribunal cannot adjudicate a dispute regarding pay fixation of workmen paid through contractors without first deciding the existence of an employer-employee relationship between the principal employer and the workmen. The reference must be confined to the terms of the reference made by the Government. (Paras 1-5)

B) Contract Labour - Pay Fixation - Employer-Employee Relationship - The Tribunal's award directing ONGC to directly pay wages to contract labour was beyond the scope of the reference and without jurisdiction, as there was no finding that ONGC was the employer. (Paras 2-4)

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Issue of Consideration

Whether the Central Government Industrial Tribunal had jurisdiction to direct ONGC to fix pay and allowances of workmen who were paid through contractors, without first determining that ONGC was the actual employer.

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Final Decision

The High Court allowed the writ petition and set aside the award of the Central Government Industrial Tribunal-2.

Law Points

  • Industrial Disputes Act
  • 1947
  • Section 10(1)(d)
  • Reference
  • Jurisdiction of Industrial Tribunal
  • Contract Labour
  • Employer-Employee Relationship
  • Pay Fixation
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Case Details

2020 LawText (BOM) (01) 31

WRIT PETITION NO.13015 OF 2019

2020-01-30

S.C. GUPTE, J.

Mr. S.K. Talsania, Senior Advocate a/w Mr. R.V. Pranjpe for the Petitioner. Mr. Shaligram G. Mishra, President of Respondent No.1. Mr. Sanjay Singhvi, Senior Counsel a/w Ms. Seema Chopda and Mr. F.R. Mishra for Respondent Nos.2 and 3.

M/s Oil and Natural Gas Corporation Limited

The President, Oil Field Employees Association and Others

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Nature of Litigation

Writ petition challenging an award of the Central Government Industrial Tribunal-2 at Mumbai in a reference under the Industrial Disputes Act, 1947.

Remedy Sought

ONGC sought to quash the award directing it to fix pay and allowances of workmen paid through contractors.

Filing Reason

ONGC challenged the award on the ground that the Tribunal exceeded its jurisdiction by not first determining the employer-employee relationship.

Previous Decisions

The Central Government Industrial Tribunal-2 passed an award in favour of the workmen, directing ONGC to fix pay and allowances.

Issues

Whether the Industrial Tribunal had jurisdiction to direct ONGC to fix pay and allowances of workmen paid through contractors without first determining that ONGC was the employer.

Submissions/Arguments

ONGC argued that the Tribunal exceeded its jurisdiction as there was no finding of employer-employee relationship between ONGC and the workmen. The respondents argued that the workmen were regularly working for ONGC and thus entitled to direct pay fixation.

Ratio Decidendi

An Industrial Tribunal cannot adjudicate a dispute regarding pay fixation of workmen paid through contractors without first determining the existence of an employer-employee relationship between the principal employer and the workmen. The reference must be confined to the terms of the reference made by the Government.

Judgment Excerpts

This writ petition has been filed by the Petitioner - Oil and Natural Gas Corporation Limited (“ONGC”), challenging an award passed by the Central Government Industrial Tribunal-2 at Mumbai (“CGIT”) in a reference made to it by the Central Government under the Industrial Disputes Act, 1947. The subject matter of the reference concerned a charter of demands made by one Oil Field Employees Association... regarding fixation of pay and other allowances of workmen, who were said to be working regularly for ONGC, but getting their salaries paid through contractors.

Procedural History

The Central Government made a reference to the CGIT under the Industrial Disputes Act, 1947 regarding a charter of demands by the Oil Field Employees Association. The CGIT passed an award directing ONGC to fix pay and allowances of workmen paid through contractors. ONGC challenged the award by filing a writ petition in the Bombay High Court.

Acts & Sections

  • Industrial Disputes Act, 1947: Section 10(1)(d)
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