Mahanadi Coalfields Ltd. Vs Brajrajnagar Coal Mines Workers’ Union (Supreme Court of India)
The appellant Mahanadi Coal fields Ltd, a subsidiary of Coal India Ltd., floated a tender for transportation of crushed coal and selected a successful bidder/contractor for performance of agreement for the period 1984 to 1994, who deployed 32 contract workers. Appellant and workers had entered into National Coal Wage Agreement – IV (“Agreement”) in 1989. As per certain clauses of the Agreement the appellant should not engage contract labour in the jobs which are permanent and perennial in nature.
The respondent union espoused the cause of workmen, who were engaged by the contractor, seeking permanent status. During the conciliation proceedings parties entered into a settlement to regularise the services of 19 workers out of 32 contract workers. Respondent raised a dispute which was referred to Industrial Tribunal. The Tribunal directed the petitioner to regularise the service of the remaining workmen, the award of the Tribunal was challenged in Orissa High Court. The Orissa High Cout considering the similar nature of the work being performed by the workmen, affirmed the findings of the Tribunal.
On appeal to the SC, it held, the petitioner has failed to establish the distinction between the two classes of similarly placed workers and upheld the findings of the Tribunal.
