Bombay High Court Dismisses Writ Petitions Challenging Termination of Employees of National Textile Corporation Ltd. — Petitioners Not Employees of NTC Ltd. as They Were Appointed by Contractors and No Employer-Employee Relationship Established.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The judgment concerns two writ petitions filed by Shilpa S. Chandankar and Priyanka Pradeep Chavan against the National Textile Corporation Ltd. (NTC Ltd.), the State of Maharashtra, and the Union of India. The petitioners sought reinstatement with continuity of service and back wages, claiming they were employees of NTC Ltd. and were illegally terminated. The court examined the facts: the petitioners were appointed by contractors (M/s. S.S. Enterprises and M/s. Jai Mata Di Enterprises) for security and housekeeping services at NTC Ltd.'s mills. They were paid by the contractors, and their appointment letters were issued by the contractors. NTC Ltd. had entered into contracts with these contractors for services. The court noted that the petitioners were not directly appointed by NTC Ltd., nor were they on its payroll. The court held that no employer-employee relationship existed between the petitioners and NTC Ltd. The termination was by the contractor, not by NTC Ltd. The court further held that the remedy for the petitioners, if any, lies before the Industrial Tribunal or Labour Court under the Industrial Disputes Act, 1947, as disputed questions of fact exist regarding the nature of employment. The writ petitions were dismissed as not maintainable. The court also disposed of the interim application.

Headnote

A) Service Law - Employer-Employee Relationship - Contract Labour - The petitioners claimed to be employees of NTC Ltd. but were appointed by contractors and paid by them; no evidence of appointment by NTC Ltd. or control by NTC Ltd. over their work - Held that no employer-employee relationship existed between the petitioners and NTC Ltd. (Paras 5-8).

B) Industrial Disputes Act, 1947 - Termination - Writ Jurisdiction - The petitioners' termination was by the contractor, not by NTC Ltd.; the remedy lies before the Industrial Tribunal or Labour Court under the Industrial Disputes Act, 1947, not by way of writ petition - Held that writ petitions are not maintainable as disputed questions of fact exist regarding the nature of employment (Paras 9-10).

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Issue of Consideration

Whether the petitioners were employees of the National Textile Corporation Ltd. (NTC Ltd.) and whether their termination was illegal, entitling them to reinstatement.

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Final Decision

Both writ petitions are dismissed. The interim application is disposed of.

Law Points

  • Employer-employee relationship
  • Contract labour
  • Termination of service
  • Writ jurisdiction
  • Industrial Disputes Act
  • 1947
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Case Details

2025:BHC-OS:21479-DB

Writ Petition No. 879 of 2020 and Writ Petition No. 3796 of 2021

2025-11-14

Ravindra V. Ghuge, Ashwini D. Bhobe

2025:BHC-OS:21479-DB

Ms. Nivedita Deshpande i/b Mr. S.N. Deshpande, Advocate for the Petitioner in both Writ Petitions; Mr. Bhushan C. Joshi i/b C. S. Joshi, Advocates for the Respondents in both Writ Petitions; Mr. P. M. Palshikar, Mr. Anil Yadav, Advocate for Respondent No. 3 – Union of India in WP No. 879 of 2020; Mr. Suraj Gupte, AGP for Respondent State in Both Writ Petitions

Shilpa S. Chandankar and Priyanka Pradeep Chavan

N.T.C. Ltd., The State of Maharashtra, The Union of India

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Nature of Litigation

Writ petitions challenging termination of employment and seeking reinstatement with continuity of service and back wages.

Remedy Sought

Reinstatement with continuity of service and back wages.

Filing Reason

Petitioners claimed they were employees of NTC Ltd. and were illegally terminated.

Issues

Whether the petitioners were employees of NTC Ltd. Whether the termination was illegal and whether writ petition is maintainable.

Submissions/Arguments

Petitioners argued they were employees of NTC Ltd. and their termination was illegal. Respondents argued that petitioners were contract labour appointed by contractors and not employees of NTC Ltd.

Ratio Decidendi

No employer-employee relationship existed between the petitioners and NTC Ltd. as they were appointed by contractors and paid by them. The remedy for termination lies before the Industrial Tribunal or Labour Court under the Industrial Disputes Act, 1947, not by way of writ petition.

Judgment Excerpts

The petitioners were not appointed by the NTC Ltd. They were appointed by the contractors. The petitioners were paid by the contractors and not by the NTC Ltd. No employer-employee relationship existed between the petitioners and the NTC Ltd. The remedy of the petitioners, if any, lies before the Industrial Tribunal or Labour Court under the Industrial Disputes Act, 1947.

Procedural History

Writ Petition No. 879 of 2020 filed by Shilpa S. Chandankar and Writ Petition No. 3796 of 2021 filed by Priyanka Pradeep Chavan were heard together. Interim Application No. 188 of 2022 was also considered. The court dismissed the petitions on 14th November 2025.

Acts & Sections

  • Industrial Disputes Act, 1947:
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High Court Bombay High Court Dismisses Writ Petitions Challenging Termination of Employees of National Textile Corporation Ltd. — Petitioners Not Employees of NTC Ltd. as They Were Appointed by Contractors and No Employer-Employee Relationship Established.
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