Hindustan Aeronautics Ltd. Vs Hindustan Aeronautics Karmchari Sabha (Allahabad High Court)
Employees of the statutory canteen ipso facto cannot become the employees of the principal employer – Allahabad High Court
The present Writ Petition was filed by the petitioner to quash the award passed by the Presiding Officer, Industrial Tribunal, Lucknow.
Hindustan Aeronautics Ltd. (HAL), established a factory at Lucknow in the year 1971-72 for manufacturing accessories of aircrafts. A canteen was set up in the factory premises for providing eatables to the workmen at subsidized rates. The canteen was being operated by a contractor, who engaged workers to run the canteen. HAL reimbursed the contractor for the wages paid to the canteen employees.
The Governor of Uttar Pradesh (“U.P”) issued a notification under Section 10(1) of Contract Labour (Regulation and Abolition) Act, 1970 (“CLRA Act”) prohibiting employment of contract labour in engineering industries in the state of U.P. HAL requested the U.P. Government for granting exemption from the notification issued under the CLRA Act, and exemption was granted. HAL claims, in view of the exemption granted to it from the notification issued under the CLRA Act, it was free to engage workers through contractors; accordingly, HAL engaged contract workers through a contractor to operate the canteen at subsidized rates. The dispute started when Hindustan Aeronautics Employees Association, Lucknow (HAEA) demanded canteen allowance instead of the facility of a subsidized canteen, and the demand was accepted by HAL. Thereafter respondents started opposing the grant of canteen allowance and replacement of subsidized canteen by market rate canteen.
