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2002 (6) TMI 610

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..... he Contract Labour (Regulation and Abolition) Act, 1970 (for short, the Act), abolishing contract labour in M/s. Ferro Alloys Corporation Limited, Garividi, Srikakuiam District, in certain operations mentioned in the said notification. M/s. Ferro Alloys Corporation Limited, in the same writ petition, has also assailed the avidity and legality of G.O.Ms. No. 915 Labour, Employment and Technical Education (Lab.II) Department dated 24-8-1978 issued by the Government directing the Management of M/s. Ferro Alloys Corporation Limited to absorb the persons employed through contract labour in the newly fixed compliments subject to suitability. The petitioners in the other writ petitions have assailed the validity and legality of the Government Order, G.O. Ms. No. 11, Women's Development, Child Welfare and Labour (Lab.II) Department dated 12-2-1990 issued by the Governor of Andhra Pradesh in exercise of the power conferred by Sub-section (1) of Section 10 of the Act prohibiting employment of contract labour in all operation of canteens required to be provided under the Factories Act, 1948 and directing the principal employer of such Factories to absorb the canteen workers employed by th .....

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..... dated 12-2-1990, by which contract labour in canteens of all factories is abolished, would contend that the Government is not entitled to issue such omnibus notification under Section 10 of the Act abolishing contract labour in canteens of all the factories without examining the fact-situation obtaining in individual canteens maintained by the factories with reference to the conditions specified in Clauses (a) to (d) of Sub-section (2) of Section 10 of the Act. The learned Counsel would maintain that mere exploitation of labour cannot be a conclusive test or condition for determining whether contract labour system in a particular factory or unit should be prohibited or not, though such a test or condition may be an important test or condition. According to the learned Counsel, before issuing notification under Section 10 of the Act prohibiting contract labour, the Government is required to examine whether it would be possible to employ full-time workmen for running the canteen and/or whether there is exploitation of contract labour and, therefore, such an investigation is required to be made with reference to each and every factory and establishment, and it is not open for the Sta .....

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..... errides the other provisions of the CLRA Act in empowering the appropriate Government to prohibit by notification in the official gazette, after consultation with central advisory board/state advisory board, as the case may be, employment of contract labour in any process, operation or other work in any establishment. Before issuing notification under Sub-section (1) in respect of an establishment the appropriate Government is enjoined to have regard to: (i) the conditions of work; (ii) the benefits provided for the contract labour; and (iii) other relevant factors like those specified in Clauses (a) to (d) of Sub-section (2). Under Clause (a) the appropriate Government has to ascertain whether the process, operation or other work proposed to be prohibited is incidental to, or necessary for the industry, trade, business, manufacture or occupation that is carried on in the establishment; Clause (b) requires the appropriate Government to determine whether it is of perennial nature, that is to say, it is of sufficient duration having regard to the nature of industry, trade, business, manufacture or occupation carried on in that establishment; Clause (c) contemplates a verification by .....

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..... bour (Regulation and Abolition) Act, 1970 (37 of 1970) the Central Government after consultation with the central advisory contract labour board hereby prohibits employment of contract labour on and from the 1st March, 1977, for sweeping, cleaning, dusting and watching of buildings owned or occupied by the establishments in respect of which the appropriate Government under the said Act is the Central Government. Provided that this notification shall not only apply to the outside cleaning and other maintenance operations of multi-storied buildings where such cleaning or maintenance operations cannot be carried out except with specialized experience . 8. The Supreme Court commenting upon the above notification, and dealing with the question whether that notification fulfilled the essentials of Clauses (a) to (d) of Sub-section (2) of Section 10 of the Act, held-- A glance through the said notification, makes it manifest that with effect from March 1, 1977, it prohibits employment of contract labour for sweeping, cleaning, dusting and watching of buildings owned or occupied by establishment in respect of which the appropriate Government under the said Act is the Central Government. Th .....

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..... ing back of raw-materials slipped if any at feeding and transfer plant. 6. Collection of raw materials fallen and scattered in between the rail tracks, roads and yard inside the factory. 7. Packing the finished goods. 8. Separation of metal over flowing into slag cakes from the furnaces. 9. Resisting the metal and collection of scrapped material including metal furnaces breaking and screening slack power picking. 10. Carrying coke into conveyor belt and repairing of machinery, relining of furnaces, ladies lining, brick lining of line kilns etc. Sd/- D.S.R.Somayaju Deputy Secretary to Government. There is no need to extract G.O. Ms. No. 915 dated 24-8-1978, because, it is only a consequential Government Order issued in pursuance of G.O.Ms. No. 914, dated 24-8-1978, directing the Management of M/s. Ferro Alloys Corporation Limited to absorb persons employed through contract labour system in the 10 operations mentioned in the notification, G.O.Ms. No. 914. 10. G.O.Ms. No. 11, Women's Development, Child Welfare and Labour (Lab.II) Department dated 12-2-1990 reads as follows: GOVERNMENT OF ANDHRA PRADESH Contract Labour (Regulation and Abolition) Act, 1970 - Recommendations of the B .....

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..... s, which do not reveal compliance of Sub-section (2) of Section 10 of the Act and, therefore, they are ex-facie contrary to the postulates of Section 10 of the Act. The impugned notifications do not exhibit application of mind on the part of the appropriate Government. If that is so, the impugned notifications cannot be sustained solely on the ground of non-compliance of Sub-section (2) of Section 10 of the Act and also the binding judgment of the Apex Court in Steel Authority of India case (supra). In that view of the matter, there is no need for us to deal with the other contentions advanced by Sri C.R. Sridharan in detail and, therefore, they are left open to be agitated at an appropriate stage. Suffice it to state that as held by the Supreme Court in Hari Shankar Sharma and Ors. v. Artificial Limbs Manufacturing Corporation and Ors., assuming that Section 46 of the Factories Act shall apply to the petitioners, it cannot be said as an absolute proposition of law that whenever in discharge of statutory mandate, a canteen is set up or other facilities are provided by an establishment, the employees of the canteen or such other facility become the employees of the establishment. It .....

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