Case Note & Summary
The Goa M.R.F. Employees Union filed a writ petition challenging the award of the Industrial Tribunal of Goa, which held that the demand for absorption of three canteen workers by M/s M.R.F. Limited was not legal and justified. The union contended that the contract between M/s M.R.F. Limited (respondent no. 2) and M/s Icarus Foods and Farm (respondent no. 1) for running the canteen was sham and bogus, intended to deny regular benefits to the workers. The three workers—Shri Ragoba Fallari, Shri Santosh Sangodkar, and Shri Subhash Naik—had been engaged through the contractor since 1984. The union made a representation to the Government of Goa on 3-10-2002, leading to conciliation and a reference to the Industrial Tribunal. The Tribunal, after proceedings, concluded that the union failed to prove the contract was sham and that the workers were entitled to absorption. The union appealed to the High Court. The High Court, after hearing arguments, found no perversity in the Tribunal's findings and dismissed the petition, upholding the award.
Headnote
A) Industrial Law - Contract Labour - Sham Contract - Burden of Proof - The union failed to prove that the contract between the principal employer and contractor was sham and bogus; the Industrial Tribunal's finding that the contract was genuine was upheld. (Paras 2-3)
B) Industrial Law - Absorption - Canteen Workers - Factories Act, 1948, Section 46 - The three canteen workers were not entitled to absorption by the principal employer as the contract was not sham and the workers were employees of the contractor. (Paras 2-3)
C) Industrial Law - Reference - Maintainability - The contractor failed to prove that the reference was not maintainable; the Tribunal held the reference maintainable. (Para 2)
Issue of Consideration
Whether the contract between M/s M.R.F. Limited and M/s Icarus Foods and Farm is sham and bogus, and whether three canteen workers are entitled to absorption by M/s M.R.F. Limited with effect from 1-10-1996 with appropriate fitment in pay scales.
Final Decision
The High Court dismissed the writ petition, upholding the award of the Industrial Tribunal. The court found no perversity in the Tribunal's findings and held that the union failed to prove that the contract was sham and bogus.
Law Points
- Burden of proof on union to establish contract is sham
- Contract labour absorption not automatic under Factories Act
- 1948
- Industrial Tribunal's findings of fact not interfered with unless perverse
Case Details
2014 LawText (BOM) (08) 112
Writ Petition No. 237 of 2005
Shri V. Menezes for petitioner, Shri G. K. Sardessai for respondent no. 2, Ms. S. Linhares for respondent nos. 3 and 4
The Goa M. R. F. Employees Union
M/s Icarus Foods & Farm, M/s M. R. F. Limited, The Industrial Tribunal of Goa, The Government of Goa
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Nature of Litigation
Writ petition challenging the award of the Industrial Tribunal of Goa
Remedy Sought
The petitioner union sought to quash the Tribunal's award and to direct absorption of three canteen workers by M/s M.R.F. Limited with effect from 1-10-1996 with appropriate fitment in pay scales.
Filing Reason
The union was aggrieved by the Industrial Tribunal's award holding that the contract between M/s M.R.F. Limited and M/s Icarus Foods and Farm was not sham and that the three workers were not entitled to absorption.
Previous Decisions
The Industrial Tribunal of Goa passed an award on the reference made by the Government of Goa, holding that the demand of the union was not legal and justified, and that the three workmen were not entitled to any relief.
Issues
Whether the contract between M/s M.R.F. Limited and M/s Icarus Foods and Farm is sham and bogus?
Whether the three canteen workers are entitled to absorption by M/s M.R.F. Limited with effect from 1-10-1996 with appropriate fitment in pay scales?
Submissions/Arguments
The petitioner union argued that the contract was sham and bogus, and the workers should be absorbed as regular employees of M/s M.R.F. Limited.
The respondent no. 2 (M/s M.R.F. Limited) argued that the contract was genuine and the workers were employees of the contractor.
Ratio Decidendi
The burden of proof lies on the party alleging that a contract is sham and bogus. The Industrial Tribunal's findings of fact, based on evidence, cannot be interfered with in writ jurisdiction unless perverse. The union failed to discharge its burden.
Judgment Excerpts
The petition takes exception to the award passed by the Industrial Tribunal holding that the demand of Goa M.R.F. Employees Union that the contract between M/s. Madras Rubber Factory Limited and M/s. Icarus Foods and Farm is sham and bogus and the demand for absorption of three canteen workers ... is not legal and justified.
The main submission of Shri V. Menezes, learned Advocate on behalf of the petitioner is that the Industrial Tribunal has erred in holding that the contract is not sham and bogus.
Procedural History
The union made a representation to the Government of Goa on 3-10-2002. Conciliation failed. The Government referred the dispute to the Industrial Tribunal. The Tribunal passed the impugned award. The union filed the present writ petition in the High Court of Bombay at Goa.
Acts & Sections
- Factories Act, 1948: Section 46
