Case Law Details
Urmila International Services Private Limited Vs Jharkhand State Beverages Corporation Limited (Jharkhand High Court)
In a recent ruling, the Jharkhand High Court has brought clarity to the application of Rule 15 of the Jharkhand Excise (Operation of Retail Product Shops through Jharkhand State Beverages Corporation Limited) Rules, 2022, and its implications on placement agencies operating within the state. The case of Urmila International Services Private Limited versus Jharkhand State Beverages Corporation Limited shed light on the obligations of placement agencies and the circumstances under which they can be held accountable for monetary losses incurred by JSBCL.
The bench, comprising Justice Rongon Mukhopadhyay and Justice Deepak Roshan, emphasized that Rule 15 and its corresponding clauses should only be invoked when a placement agency, following due process, is found to have failed in providing manpower to JSBCL, consequently leading to financial losses for the corporation. Drawing upon the precedent set by the Supreme Court in the case of Gorkha Security Services v. Government (NCT of Delhi) (2014), the High Court underscored the importance of adhering to principles of natural justice when considering actions against a placement agency.
The dispute centered on the penalties imposed on several petitioner companies, including M/s. A2Z Infraservices Limited, M/s. Sumeet Facilities Limited, M/s. Primeone Workforce Private Limited, and M/s. Eagle Hunter Solutions Limited, in accordance with Rule 15. These penalties were challenged on the grounds of their legality vis-à-vis the provisions of the Bihar (now Jharkhand) Excise Act, 1915, as well as Articles 14, 19(1)(g), and 265 of the Constitution of India.
The Jharkhand Excise (Operation of Retail Product Shops through Jharkhand State Beverages Corporation Limited) Rules, 2022, were crafted by the State of Jharkhand under its rule-making power, granting exclusive privileges to JSBCL for operating retail excise shops across the state. Under Rule 24, JSBCL was authorized to appoint various agencies, including placement agencies, for the smooth functioning of these shops.
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