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Workers Employed by Contractor Not Entitled to Direct Regularization: Delhi HC

Case Law Details

TaxGuru Citation
2025 taxguru.in 216
Case Name
Kanchanjunga Building Employees Union Vs Kanchanjunga Flat Owner's Society & Anr (Delhi High Court)
Date of Judgement/Order
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Kanchanjunga Building Employees Union Vs Kanchanjunga Flat Owner’s Society & Anr (Delhi High Court)

The Delhi High Court was tasked with reviewing the case of the Kanchanjunga Building Employees Union vs. Kanchanjunga Flat Owners Society & Anr. The petitioners, who had been employed as security guards and lift operators for the Kanchanjunga building, sought regularization of their employment, claiming they were directly employed by the Kanchanjunga Flat Owners Society. The workers had been employed through an intermediary contractor, M/s Goliath Securities Pvt. Ltd., since 1998. Initially, the workers were hired by the Kanchanjunga Flat Owners Association, which later contracted these services to M/s Goliath. After years of service, the workers requested the regularization of their positions in October 2002, which was denied by the society. The workers subsequently filed an industrial dispute in 2002, but the Industrial Tribunal ruled against them in 2008, concluding that no employer-employee relationship existed between the workers and the society.

The workers contested the tribunal’s decision, arguing that the contract between the society and M/s Goliath was a mere facade to avoid the legal obligations associated with direct employment. They claimed they had been under the direct control and supervision of the society, with the latter maintaining authority over their daily operations, attendance, and salaries. The workers also stated that the society had failed to provide basic employment documentation such as leave approvals or disciplinary actions, which was typically expected in an employer-employee relationship. In contrast, the society and M/s Goliath denied the direct employment claim, asserting that the workers were employed by the contractor, and their wages were managed by M/s Goliath.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 20,910

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