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Issues:
Claim of contract labourers for direct employment with principal employer, interpretation of notification under Section 10 of the Contract Labour Act, applicability of Steel Authority of India Ltd. case judgment, disputed questions of fact regarding service conditions, appropriate forum for resolution. Analysis: The Supreme Court addressed a case where contract labourers sought direct employment with the principal employer, ONGC Limited, following the prohibition of contract labour in certain posts by a government notification under Section 10 of the Contract Labour Act. The High Court initially ruled in favor of the contract labourers, deeming them to be performing duties directly under ONGC Limited and entitled to the same terms of service as other employees. However, the Division Bench raised concerns about disputed facts and directed the matter to be resolved through an investigation by the Industrial Tribunal, suggesting conciliation proceedings and subsequent referral to the Tribunal under the Industrial Dispute Act. In its analysis, the Supreme Court referred to the Steel Authority of India Ltd. case, emphasizing the distinction between genuine and sham contracts and the implications for the status of contract labourers. The Court highlighted the need for the Industrial Tribunal to consider the specific circumstances of the case, including allegations of changes in contractors and varying employment terms. The Court reiterated the principles outlined in the Steel Authority of India Ltd. case regarding the absorption of contract labourers and the prospective application of its decision. The Court concluded that the directions given by the High Court should be upheld, subject to the observations made and in compliance with the principles established in the Steel Authority of India Ltd. case. The appeal was disposed of accordingly, emphasizing the need for the Industrial Tribunal to address the disputed facts and provide appropriate directions based on the specific circumstances of the case.
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