Case Note & Summary
The case involves an appeal by Oil & Natural Gas Commission (ONGC) against a judgment of a learned Single Judge dismissing its writ petition challenging a notification under Section 10 of the Contract Labour (Regulation and Abolition) Act, 1970. The notification prohibited employment of contract labour in certain activities of ONGC. The appellant, ONGC, contended that the notification was invalid as the Central Government did not apply its mind and that the activities were not perennial. The respondent trade unions argued that the activities were essential and perennial. The court upheld the notification, holding that the Central Government had properly considered the matter and the activities were necessary for the industry. The court further held that ONGC as principal employer is liable to absorb the contract labour upon prohibition. The appeal was dismissed with costs.
Headnote
A) Contract Labour - Prohibition of Contract Labour - Section 10 of Contract Labour (Regulation and Abolition) Act, 1970 - Validity of Notification - The court upheld the notification prohibiting contract labour in certain activities of ONGC, holding that the Central Government had properly applied its mind and the activities were perennial and necessary for the industry. (Paras 1-5) B) Principal Employer - Liability - Sections 2(1)(g), 10, 12 of Contract Labour (Regulation and Abolition) Act, 1970 - The court held that ONGC as principal employer cannot evade liability by engaging contractors for core activities; the prohibition under Section 10 applies to the principal employer. (Paras 6-10) C) Industrial Dispute - Absorption of Contract Labour - The court directed that upon prohibition, the principal employer must absorb the contract labour directly, as the work continues to be performed. (Paras 11-15)
Issue of Consideration
Whether the notification under Section 10 of the Contract Labour (Regulation and Abolition) Act, 1970 prohibiting contract labour in certain activities of ONGC is valid and whether ONGC as principal employer is liable to absorb the contract labour.
Final Decision
Appeal dismissed with costs. The notification under Section 10 is upheld, and ONGC is liable to absorb the contract labour.
Law Points
- Principal employer liability
- Contract labour prohibition
- Core activity test
- Notification under Section 10
- Abolition of contract labour
- Industrial dispute
