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Issues Involved
1. Regularization of services of contractual workers. 2. Jurisdiction and authority of the Industrial Tribunal and High Court. 3. Nature of employment and status of workers. 4. Applicability of legal precedents and judgments. 5. Interpretation of the reference made by the State Government. Issue-wise Detailed Analysis 1. Regularization of Services of Contractual Workers The primary issue in this case was whether the demand for regularization of services of the contractual workers by the ONGC Contractual Workers Union was justified. The Industrial Tribunal had initially ruled in favor of the Union, directing ONGC to regularize the services of the workers in a phased manner. This decision was challenged by ONGC on the grounds that the workers were employees of contractors, not ONGC, and thus ONGC had no obligation to regularize their services. The High Court's Single Judge accepted ONGC's argument, stating that the Tribunal had exceeded its jurisdiction. However, the Division Bench reversed this decision, restoring the Tribunal's award, and emphasized that the High Court should not act as a Court of Appeal in such matters. The Supreme Court upheld the Division Bench's decision, noting that the Tribunal had thoroughly examined the evidence and found no perversity or patent illegality in its award. 2. Jurisdiction and Authority of the Industrial Tribunal and High Court The Supreme Court addressed the jurisdictional boundaries of the Industrial Tribunal and the High Court. It was contended that the Tribunal was the sole fact-finding authority and that the High Court's interference under Article 226 of the Constitution should be limited to cases of patent illegality or perversity. The Supreme Court cited several precedents to support this view, including Sadhu Ram v. Delhi Transport Corporation and Trambak Rubber Industries Ltd. v. Nashik Workers Union. The Court concluded that the Single Judge had overstepped by re-assessing the evidence and substituting its judgment for that of the Tribunal. 3. Nature of Employment and Status of Workers A critical aspect of the case was determining whether the workers were employees of ONGC or contractors. The Tribunal found that there existed a master-servant relationship between ONGC and the workers, noting that ONGC supervised the workers, paid their wages directly, and took disciplinary actions against them. The Division Bench upheld these findings, and the Supreme Court agreed, stating that the real issue was the status of the workers, not merely their regularization. The Court emphasized that the Tribunal and Division Bench were justified in "lifting the veil" to determine the true nature of employment. 4. Applicability of Legal Precedents and Judgments The Supreme Court considered various judgments cited by both parties. ONGC relied on cases like Ahmedabad Municipal Corporation v. Virendra Kumar Jayantibhai Patel and Secretary, State of Karnataka and Ors. v. Uma Devi (3) to argue against the regularization of contractual workers. However, the Court distinguished these cases, noting that the present case involved determining the workers' status as ONGC employees, not merely regularizing contractual workers. The Court also referred to U.P. State Electricity Board v. Pooran Chandra Pandey to highlight that the ratio of any decision must be understood in the context of its specific facts. 5. Interpretation of the Reference Made by the State Government The reference made by the State Government was whether the demand for regularization of contractual workers was justified. ONGC argued that this presupposed the workers' status as contractual employees. However, the Tribunal and Division Bench interpreted the reference more broadly, considering the entire context, including pleadings and evidence. The Supreme Court supported this broader interpretation, citing Delhi Cloth & General Mills Co. Ltd. v. The Workmen to emphasize that the Tribunal must look at the pleadings to understand the exact nature of the dispute. Conclusion The Supreme Court dismissed the appeal by ONGC, upholding the Division Bench's decision to restore the Industrial Tribunal's award. The Court found no merit in ONGC's arguments and emphasized the importance of examining each case based on its specific facts. The judgment reaffirmed the authority of the Industrial Tribunal as the primary fact-finding body and limited the scope of High Court interference under Article 226 to cases of patent illegality or perversity.
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