Food Corporation of India Workers'
Union Vs. Food Corporation of India & Ors [1985] INSC 42 (1 March 1985)
KHALID, V. (J) KHALID, V. (J) DESAI, D.A.
CITATION: 1985 AIR 488 1985 SCR (3) 150 1985
SCC (2) 294 1985 SCALE (1)383
ACT:
Contract Labour Regulation and Abolition)
Act, 1970 Section 2 (1) (a) read with sections 2 (1) (e) 1(4) (a), (b) and
Proviso and 1(5) (a) and (b) and the Explanation-Terms 'appropriate
Government', clarified-Appropriate Government for the purposes of taking
necessary steps under the Act of 1970 to redress the grievances of the contract
labours working with the Food Corporation of India's establishment situated in
the States is the respective State Government under sub-section 2 of section 2
(a) and not the Central Government-Canon of statutory construction explained-
Any industry carried on by or under the authority of the Central
Government" which is in pari materia with Section 2 (a) (l) of the Industrial
Disputes Act, 1947, meaning of-Nature of relief that can be qranted, outlined
HEADNOTE:
The Food Corporation of India has been
entrusted with the duty of procuring foodgrains and its movement and
distribution throughout the country. The Corporation employs for the discharge
of this work three types of labourers; (1) departmentalised labour who are its
regular employees; (2) direct paid labour; and (3) Contract labour who are
employed by the Corporation through the intermediary of contractors.
The petitioners who come under the third
category have been trying to pursuade the corporation for progressive
departmentalisation of its labour Or in the alternative extending to them the
benefits of the Contract Labour (Regulation and Abolition) Act 1970. By this
writ petition they prayed for a writ of mandamus either to the Union Government
or to the concerned State Governments, to extend to them the benefits of the
Act, for a direction to the corporation to pay them the same wages as are paid
to the departmentalised labour and other reliefs. The Corporation pleaded that
the appropriate Government for the purpose of the claims of the petitioners
working in its establishment in a State a is the concerned State Government and
not the Central Government, which stand was adopted by ihe 15th Respondent
State of Madhya Pradesh and the 21st Respondent State of Punjab through their
respective affidavits and therefore disowned its responsibility. The other
States did not file their counter at all.
Allowing the petition, the Court, 151 ^
HELD: 1 Section 10 of the Contract Labour
(Regulation and Abolition) Act, 1970 enables the appropriate Government by a
suitable notification after making a study of the conditions laid down therein
to prohibit employment of contract labour in any 'process, operation, or other
work' in any establishment. The petitioners, complaint that despite several
disputes and representations made to all the State Governments as well as the
Union of India, nothing has so fare been done to give the benefit of Section 10
to the contract labour in the Corporation by playing hide and seek, one
pointing to the other as the appropriate Government for redressal of their
grievances is justified. [155D - E]
2.1 On the interpretation of the relevant
sections namely, I (4), 1 (5), 2 (1) (a) and 2 (a) (e) of the Contract Labour
Act, 1970 read with section 2 (a) (1) of the Industrial Disputes Act, 1947
"appropriate Government" for the purpose of this case pertaining to
the regional offices and warehouses of the Food Corporation of India in the
respective States is the State Government and not the Central Government.
[161D]
2.2 Section 1(4) deals with the application
of the Act to establishments and contractors answering to the description given
therein and certainly the establishment of the Food Corporation and the
contractors it employs come within the ambit of the provisions of this Act.
[156F]
2.3 Various warehouses, godowns and places
alike sot up by the Corporation would be establishments where the trade of the
corporation is being carried on and within the meaning of the term
"establishment" in section 2 (1) (e) (ii) of the Act. [158EI
2.4 It is a well-established canon of
statutory construction that legislature is known to avoid tautology and
redundancy. If Food Corporation of India was an industry carried on by or under
the authority of the Central Government, it would have been comprehended in the
first part of sub-section (1) of Section 2 of the Industrial Disputes Act, but
that being not the position, it was specifically referred to by name. However,
the expression 'appropriate Government' in the Contract Labour Act, 1970 does
not include by name the Food Corporation of India as the one in respect of
which the appropriate Government would be the Central Government, while it is mentioned
so in the definition in the Industrial Disputes Act even though both the
statutes use the general expression 'any industry carried on by or under the
authority of the Central Government.' [169C - E]
2.5 Looking to the placement of the
expression in the definition clause of the Contract Labour Act and the purpose
for which it is enacted, the expression 'any industry carried on by or under
the authority of the Central Government' mean 'pursuant to the authority, such
as where an agent or a servant acts under or pursuant to the authority of his
principal or master ' Since the various establishments of the Corporation do
not pertain to any 152 controlled industry, sub-clause (1) of sub-section (1)
of section 2 (a) of the Act is not attracted and therefore, the case would be
governed by the residuary provision in sub- section (2) and the State
Government would be the appropriate Government. Further in the counter
affidavit filed by `the Corporation it is stated that this question was
examined by the Labour Ministry which had clarified that the respective State
Governments are the 'appropriate Governments' for the corporation's
establishments situated in the State. The Union of India has correctly taken a
similar stand and the States of Punjab and Madhya Pradesh have also affirmed
it. [160B; F;G; 161A-B] Heavy Engineering Mazdoor Union v. The State of Bihar
and Ors., 11969] 3 SCR 995; Rashtriya Mills Mazdoor Sangh, Nagpur v. The Model
Mills, Nagpur and Anr., AIR 1984 SC 1813, applied.
3 In the instant case, it will not be
possible or proper for the Court to grant the reliefs prayed by the petitioner
in full on the materials on record, the materials being scanty and insufficient
for a comprehensive adjudication of the claims of the petitioners. The Act
contains provisions enabling the appropriate Government to get reports as to
how to implement the provisions of the Act. The machinery provided for by the
Act has not been brought into action in any State except the State of Madhya
Pradesh. Therefore the course open lo the Court is to issue appropriate
direction to the State Governments except Madhya Pradesh State to constitute
committees within three months, under section 5 of the Act to make necessary
enquiries, and to submit a report within four months of its constitution as to
whether it would be possible to abolish contract labour in the Corporation
altogether. [161 F-G]
ORIGINAL JURISDICTION: Writ Petition No.
13508 of 1983 (Under Article 32 of the Constitution of India) C. S.
Vaidyanathan for the Petitioner.
Krishan Dayal, N.C. Talukdar, R.N. Poddar, Y
P. Rao, A.K Sanghi and R. K. Mehta for the Respondents.
The Judgment of the Court was delivered by
KHALID, J. This is representative action brought on behalf of the Contract
'Labourers, working with the Food Corporation of India, the first respondent in
the writ petition, distressed by the unhelpful attitude of both the Central and
the State Government in not redressing their grievances for either
departmentalising them or in the alternative extending to them the benefit of
the Contract Labour (Regulation and Abolition) Act, 1970 (for short 'The Act').
153 The petitioners complaint is that the
Central and the State Governments play hide and seek, one pointing to the other
as the appropriate Government under the provisions of the Act and thus denying
to them what is their dues.
2. The first respondent is the Food
Corporation of India (herein after called 'The Corporation'); the second respondent:
Union of India, the third respondent: Chief Labour Commissioner (Central) and
respondents 4 to 22, various State Governments. The Corporation has been
entrusted by the second respondent with the duty of procuring food grains and
its movement and distribution throughout the country. The corporation employs
for the discharge of this work three types of labourers: (1) departmentalised
labour who are its regular employees; (2) direct paid labour; and (3) contract
labour who are employed by the Corporation through the intermediery of
contractors.
The petitioners have been trying to pursuade
the Corporation for progressive departmantalisation of its labour. They,
however, did not succeed. Their grievance is that even the limited benefits
available to them under the provisions of the Act have not been extended to
them. By this writ petition they pray, for a writ of mandamus either to the
Union Government or to the State Governments, to extend to them the benefits of
the Act, for a direction to the Corporation to pay them the same wages as are
paid to the departmentalised labour and for other reliefs.
3. In a detailed counter-affidavit, the
Corporation has pleaded that the appropriate Government for the propose of the
claims of the petitioners is the State Government and not the Central
Government, and that it is not practicable for the Corporation to employ the
labour whom the petitioner represent as departmental labour since the nature of
the operations are seasonal, sporadic and varied from region to region, that
the work of the Corporation fluctuates in volume at different places and at
different points depending upon the procurement, movement and off take of food
grains.
It is farther stated that it is not easy for
abolition of Contract labour employed by the Corporation since other like
organisations connected with the Government of India also empley contract
labourers and hence abolition af contract labour cannot be consideder in
isolation for the Corporation alone. Among the State Governments:, the 15th respondent
(the State of Madhya Pradesh) and the 21st respondent (the State of Punjab)
have filed their respective counter- affidavits.
154
4. In its counter - affidavits the State of
Madhya Pradesh has stated that the said Government have framed rules under the
Act (which came into force on 10.2 1971) for implementation of its provisions,
that the Act is being implemented in its entirety in the said State, that it
has constituted an independent State Advisory Contract Labour Board which was
advising the State Government on such matters as are referred to it, that it
has also constituted a committee on 31st March 1981 in exercise of the powers
conferred on it under Section 5 of the Act, and that in the case of 22
branches, prosecutions were launched for non- compliance with the provisions of
the Act 5 In the Counter - affidavit filed on behalf of respondent No. 21, (the
State of Punjab) it is stated that the appropriate Government for the purpose
of the Act for the regional office of the Corporation in the Punjab State, is
the State Government.
6. Before considering the claims of the
petitioners, we will have a look at some of the provisions of the Act, which if
properly implemented would have, in some measure at least, satisfied the
labour. Section 10 of the Act reads as follows:
" 10. Prohibition of employment af
contract labour- (1) Notwithstanding anything contained in this Act, the
appropriate Government may, after consultation with the Central Board or, as
the case may be, a State Board, prohibit, by notification in the Official
Gazette, employment of contract labour in any process operation or other work
in any establishment.
(2) Before issuing any notification under
sub- section (l) in relation to an establishment, the appropriate Government
shall have regard to the conditions of work and a benefits provided for the
contract labour in that establishment and other relevant factors. such as- (a)
whether the process, operation or other work is incidental to or necessary for
the industry, trade, business, manufacture or occupation that is carried on in
the establishment;
155 (b) whether it is of perennial nature,
that is to say, it is so of sufficient duration having regard to the nature of
industry, trade, business, manufacture or occupation carried on in that
establishment;
(c) whether it is done ordinarily through
regular workmen in that establishment or an establishment similar thereto;
(d) whether it is sufficient to employ
considerable number of whole time workmen.
Explanation-If a question arises whether any
process or operation or other work is of perennial nature, the decision of the
appropriate Government thereon shall be final.' This section enables the
appropriate Government by a suitable notification after making a study of the
conditions laid down therein 1) to prohibit employment of contract labour in
any 'process, operation or other work' in any establishment. The petitioners
grievance is that despite several disputes and representations made to all the
State Governments as well as the Union of India, nothing has so far been done
to give the benefit of Section 10 to be contract labour in the Corporation.
This complaint appears to be justified.
7. We will now examine the relevant
provisions of the Act to find out as to which are the industries or
establishments to which the Act applies and which is the appropriate Government
in its contemplation, on whom is entrusted the duty to ameliorate the
conditions of labour.
We read Section 1(4) (a), (b) and Proviso and
Section 1(5) (a) and (b) and the Explanation:
"1(4) It applies:
(a) to every establishment in which twenty or
more workmen are employed or were employed on any day of the preceding twelve
months contract labour;
(b) to every contractor who employs or who
employ ed on any day of the preceding twelve months twenty or more workmen;
156 Provided that the appropriate Government
may. after giving not less than two months' notice of its intention so to do,
by notification in the Official Gazette, apply the provisions of this Act to
any establishment or contractor employing such number of workmen less than
twenty as may be specified in the notification.
(5)(a) It shall not apply to establishments
in which work only of an intermittent or casual nature is performed.
(b) If a question arises whether work
performed in an establishment is of an intermittent or casual nature, the
appropriate Government shall decide that question after consultation with the
Central Board or, as the case may be, a State Board, and its decision shall be
final.
Explanation: For the purpose of this
sub-section, work per formed in an establishment shall not be deemed to be of
an intermittant nature.
(i) if it was performed for more than one
hundred and twenty days in the preceding twelve months, or (ii) if it is of a
seasonal character and is performed for more than sixty days in a year."
Section 1(4) deals with the application of the Act to establishments and
contractors answering to the description given therein. It was not disputed
before us that the establishment in question and the contractors it employs
come within the ambit of the provisions of this Act.
However, an investigation is necessary to
collect factual details to ascertain whether the Corporation comes within the
exemption indicated in clause 1(5) quoted above.
8. Section 3 speaks of a Central Advisory
Board to advise the Central Government on matters arising out of the
administration of the Act and Section 4 speaks similarly of State Advisory
Boards. Section 5 confers on the Central Board or the State Boards as the case
may be the power to constitute committees for the proper implementation of the
provisions of the Act. Section 7 requires registration of establishments to
which the Act applies. On such registration, the principal employer will get a certificate
of 157 registration containing the necessary particulars. Chapter IV deals with
the licence of a contractor and Chapter V. with the welfare and health of the
contract labour. Chapter VI deals with penalties and procedure.
9. The petitioners case is that though the
Act came into force on 10-2-1971 no contractor has complied with the provisions
of the Act and each of them has by infringement of the provisions of the Act
rendered themselves liable to be prosecuted. Since the contractors have not got
themselves licenced, the labourers find it difficult to invoke the relevant
provisions of the Rules to secure the benefits to them under the Act.
10. Now the question as to which is the
appropriate Government for the implementation of the provisions of the
provisions of the Act can be considered.A decision on this question is
necessary before any direction can be issued in this writ petition. The State
Governments, except those of State of Madhya Pradesh and Punjab, have not filed
their counter affidavits. In the writ petition the petitioners have indicated
that the Central and the State Governments have taken up conflicting stand on
this question.
11. 'Appropriate Government' is defined in
Section 2(1) (a) of the Act to read as under:
"2(1) (a) "Appropriate Government
means,:
(1) in relation to- (1) any establishment
pertaining to any industry carried on by or under the authority of the Central
Government, or pertaining to any such controlled industry as may be specified
in this behalf by the Central Government, or (ii) any establishment of any
railway Cantonment Board, major port, mine or oil field, or (iii)any
establishment of a banking or insurance company, (2) the Central Government,
158 in relation to any other establishment the Government of the State in which
that other establishment is situated." A bare reading will show that
sub-cls. (ii) and (iii) of sec. 2(1) (a) are not attracted in this case. The
question then is whether various establishments of the Corporation spread all
over the country could be said to be establishments pertaining to any industry
carried on by or under the authority of the Central Government or pertaining to
any such controlled industry as may be specified in this behalf by the Central
Government. Before we determine the width and ambit of sub-cl. (i) of sub-sec.
(I) of sec. 2 (1) (a), it would be advantageous to refer to the definition of
'establishment' set out in sec. 2 (I)(e). It reads as under:
"2(1) (e)- Establishment means- (i) any
office or department of the Government or a local authority, or (ii) any place
wher e any industry, trade, business, manufacture or occupation is carried on.
" We would be concerned with sub-cl (ii)
of Sec. 2 (1) (e) which provides that the establishment would be an
establishment where any industry, trade, business, manufacture or occupation is
carried on. Thus various warehouses, godowns and place alike set up by the
Corporation would be establishments where the trade of the Corporation is being
carried on. Could these establishments be said to be pertaining to an industry
carried on by or under the authority of the Central Government ? Before we find
out correct meaning of the expression 'any industry carried on by or under the
authority of the Central Government', it is necessary to draw attention to the
definition of appropriate Government' as set out in Section 2(a) (1) of the Industrial
Disputes Act, 1947, which provides that 'appropriate Government' means: (i) in
relation to any industrial dispute concerning any industry carried on by or
under the authority of Central Government (omitting the words not necessary for
the present purpose.
Or in relation to an industrial dispute
concerning the Food Corporation Or India established under section 3. Or a
Board of Management established for two or more 159 contiguous States under
Section 16 of the Food Corporation Act, 1964. .., the Central Government.
Obviously, therefore, for the purpose of Industrial Disputes Act, 1947, in
relation to any industrial dispute concerning the Food Corporation of India,
the Central Government is the appropriate Government, There is an express
reference to the Food Corporation of India. If the Food Corporation of India
was an establishment in an industry carried on by or under the authority of the
Central Government, it would be tautologous to specifically refer it and
include it. It is a well established canon of statutory construction that
legislature is known to avoid tautology and redundancy. If Food Corporation of
India was an industry carried on by or under the authority of the Central
Government, it would have been comprehended in the first part of sub-section
(1) but that being not the position, it was specifically referred to by name.
Having examined this definition, it is necessary to bring to fore the
contra-distinction between the definition of the expression 'appropriate
Government' in the Industrial Disputes Act, 1947 and the definition in the Act
under examination. It may be pointed out that the expression in the Act does
not include by name the Food Corporation of India as the one in respect of
which the appropriate Government would be the Central Government, while it is
mentioned so in the definition in the Industrial Disputes Act even though both
the statutes use the general expression 'any industry carried on by or under
the authority of the Central Government.
12. Having noticed this contra-distinction,
let us examine the width and content of the expression 'any industry carried on
by or under the authority of the Central Government'. The matter is no more
resintegra. In Heavy Engineering Mazdoor Union v. The State of Bihar and Ors.(1)
this Court held that the expression 'any industry carried on by or under the
authority of the Central Government' as used in the definition of expression
'appropriate Government' in Section 2(a) (i) of the Industrial Disputes Act,
1947, would mean 'pursuant to the authority, such as where an agent or a
servant acts under or pursuant to the authority of his principal or master.'
This Court took notice of the fact that the entire share capital of the Heavy
Engineering Corporation Ltd, was contributed by the Central Government and
extensive powers were conferred on it and (1) [1969]- 3 SCR 995 160 yet the
Corporation was none other than a company and could not be said to be an
industry carried on by or under the authority of the Central Government.
Therefore, the case would be covered by the residuary clause and the
appropriate Government was held to be the State Government and the reference
under Section 10 made by the State of Bihar was held valid and competent.
Looking to the placement of the expression in the definition clause of the Act
and the purpose for which it is enacted, the expression 'any industry carried
on by or under the authority of the Central Government' must receive the same
interpretation as was done in the aforementioned case. In a recent decision of
this Court in Rashtriya Mills Mazdoor Sangh, Nagpur v. The Model Mills, Nagpur
and Anr.,(l) to which both of us were parties, while interpreting more or less
an identical expression occurring in Section 32(IV) of the Bonus Act, 1965,
this Court held that in relation to an undertaking in textile industry in
respect of which an authorised controller was appointed under the provisions of
the Industrial (Development and Regulation) Act, 1951, the appropriate
Government was the State Government and not the Central Government observing
that even where an authorised controller is appointed by the Central
Government. it merely substitutes Board of Director of a company managing the
industrial undertaking by an authorised controller appointed by the Central
Government, but the undertaking none-the-less remains an under taking managed
under the provisions of the Companies Act, 1956, and it could not be said to be
an undertaking in any industry carried on by or under the authority of the
Central Government. The same approach holds good for the purpose of
construction of the expression 'any industry carried on by or under the
authority of the Central Government' under the Act. Let it be made clear that
it was not suggested that the various establishments of the Corporation pertain
to any controlled industry. 'therefore, sub-clause (i) of Sub-section (1) of
Section 2(a) of the Act is not attracted and therefore, the case would be
governed by the residuary provision in sub-section (2) and the State Government
would be the appropriate Government.
13. The question as to which is the
'appropriate Government has been briefly dealt with in the counter- affidavits
filed by the Corporation, State of Madhya Pradesh and the State of Punjab. In
the counter-affidavit filed by the Corporation, it is stated that this (1) AIR
1984 SC 1813 161 question was examined by the Labour Ministry and that the said
Ministry had clarified that the respective State Governments are the
'appropriate Governments' for the Corporation's establishments situated in the
States. The Union of India, the second respondent, in its counter- affidavit
has also taken the stand that the 'appropriate Government' for the purpose of
the Zonal establishments situated in the respective States is the State
Government and not the Central Government.
The State of Punjab and the State of Madhya
Pradesh have also stated in their respective counter-affidavits that the
'appropriate Government' for the purpose of the Act for the regional offices of
the Corporation in their respective States is the State Government. These
pleadings are indicative of the fact that the State Governments understood them
to be the 'appropriate Government' for the Zonal offices in their respective
State.
On the interpretation of the relevant
Sections extracted above, we hold that the 'appropriate Government' for the
purpose of this case pertaining to the regional offices and the warehouses in
the respective States is the State Government and not the Central Government.
14. However, we are of the opinion that it
may not be possible or proper for us to grant the reliefs prayed for by the
petitioner in full on the materials on record. The materials are scanty and
insufficient for a comprehensive adjudication of the claims of the petitioners
and to grant them reliefs as prayed for. The Act contains provisions enabling
the 'appropriate Government' to get reports as to how to implement the
provisions of the Act. The machinery provided for by the Act has not been
brought into action in any State except the State of Madhya Pradesh. Under
these circumstances. the only course open to us is to issue appropriate direction
to the State Governments to constitute committees under Section 5 of the Act,
to make necessary enquiries, and to submit a report as to whether it would be
possible to abolish contract labour in the Corporation altogether In so doing,
we will have to exclude the State of Madhya Pradesh because the
counter-affidavit filed by that State shows that necessary action is being
taken under the Act. Accordingly a writ of mandamus will be issued to all the
State Governments except the State of Madhya Pradesh for appointing a committee
under Section 5 of the Act within three months from 162 today to enquire
whether contract labour in the Corporation should be abolished. The committee
shall submit a report within four months of its constitution and the Government
is directed to take action on such report within two months thereafter. The
necessary expenses for the committees will be borne by the Corporation. Since
the Madhya Pradesh Government has already constituted committees under Section
5, the said State is directed to ask the committees so appointed to make its
report expeditiously and to take appropriate action on the report as indicated
above. The Corporation will be at liberty to place materials before the
committees whether it comes within the exemption clause. The writ petition is
allowed as indicated above with costs to the petitioner quantified at Rs. 2,000
pay able by the Corporation.
S.R. Petition allowed.
Back
