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Flat owner’s society employing person for rendering personal services doesn’t qualify as workmen: Delhi HC

Case Law Details

TaxGuru Citation
2024 taxguru.in 4447
Case Name
Kanchanjunga Building Employees Union Vs Kanchanjunga Flat Owner's Society & Anr (Delhi High Court)
Date of Judgement/Order
Only available for paid members
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Kanchanjunga Building Employees Union Vs Kanchanjunga Flat Owner’s Society & Anr (Delhi High Court)

Delhi High Court held that in cases where an association or a society of apartment owners have employed persons for rendering personal services to its members, in that case, such employees would not be workmen under the Contract Labour (Regulation and Abolition) Act, 1970 and the said association would not fall under the definition of an „industry within Section 2 (j).

Facts- The building, namely Kanchanjunga was constructed in the year 1972 by its promoters M/s Kailash Nath & Associates which had engaged some persons to look after the security of the building maintenance and cleaning of the common area of the building and lift etc.

After some time, M/s Kailash Nath & Associates stopped the above said engagement and requested the flat owners to look after the same. Accordingly, in February, 1978, the flat owners formed an association known as Kanchanjanga Flat Owners Association, i.e , the respondent no. 1, to look after the security, maintenance and cleanliness of the common area of the building. Pursuant to the same, some personnel, i.e., the workmen represented through Kanchanjanga Building Employees Union herein were employed during the period of 1988-1996 as security guards and lift operators. Subsequently, in March, 1998 the above said association entered into an agreement with M/s Goliath Securities Pvt. Ltd., i.e., the respondent no. 2, to look after and provide necessary services on account of the security guards and lift operators, and the workmen were transferred through intermediary Contractors.

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