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U.P.Rajya Vidyut Utpadan Board & Anr vs U.P.Vidyut Mazdoor Sangh

Supreme Court4 November 2009D.K. Jain · R.M. Lodha

Ratio decidendi

The rule this decision rests on

Rule 25(2)(v)(a) of the Uttar Pradesh Contract Labour (Regulation and Abolition) Rules, 1975 mandates that where workmen employed by a contractor perform the same or similar kind of work as workmen directly employed by the principal employer, the wage rates, holidays, hours of work and other conditions of service must be identical to those of the directly employed workmen, and disputes concerning whether the work is the same or similar are to be decided finally by the Labour Commissioner. In determining whether contract workers perform the same or similar kind of work as directly employed workers for purposes of applying equal pay for equal work, the Labour Commissioner must examine the nature of duties, degree of skill required, and dimensions of the job; the difference may be one of degree, and nature of work cannot be judged by mere volume of work alone, as there may be qualitative differences in reliability and responsibility. A determination by the Labour Commissioner that contract workers are performing the same or similar work must be supported by reasoned consideration of the evidence and material placed before it, including specific findings on the nature of duties and responsibilities in both categories of employment; a bare conclusion without adverting to the facts and comparative analysis is not a valid exercise of the Labour Commissioner's power under the Rule.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

Reportable
IN THE SUPREME COURT OF INDIACIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 1989 OF 2002

U.P. Rajya Vidyut Utpadan Board & Another ...Appellants

Versus

Uttar Pradesh Vidyut Mazdoor Sangh ...Respondent

JUDGEMENT

R.M. Lodha, J.

This appeal by special leave is directed against the

judgment dated August 3, 1999 passed by the High Court of

Judicature at Allahabad whereby special appeal preferred by

the present appellants against the judgment and order dated

May 14, 1999 passed by the Single Judge has been dismissed.

The Single Judge dismissed the writ petition preferred by the

present appellants challenging the order dated October 24,

1998 passed by the Labour Commissioner, U.P.

2. Uttar Pradesh Vidyut Mazdoor Sangh (first

respondent--hereinafter referred to as `Union',) made an

application under Rule 25(2)(v)(a) of the Uttar Pradesh Contract Labour (Regulation and Abolition) Rules, 1975, (`Rules, 1975',

for short) before the Labour Commissioner, Kanpur praying

therein that order be passed for payment of the same wages

and other facilities in favour of contract labour working in

second filtration plant of Anpara Thermal Power Project as are

being paid by the employer to its employees in the main

filtration plant. The Union set up the case that there are two

filtration plants in Anpara Thermal Power Project; out of these

plants in one plant (for the sake of convenience, hereinafter

referred to as `main plant') regular employees are employed by

the Electricity Board while in the other filtration plant, contract

labour is being employed through contractors. In both filtration

plants, the nature of work done by all these employees is same

but the workers are paid their wages at different rates. Twenty-

six workers, who have been directly appointed by the Electricity

Board, are being paid regular pay scale with permissible

allowances etc. while twenty-eight contract workers engaged

through two contractors are paid at the rate of Rs. 61/- per day

for unskilled work and Rs. 71.50 per day for semi-skilled work.

The Union asserted that work in both the filtration plants is of

2 the same nature and regular.

3. The present appellants resisted the application

made by the Union on diverse grounds. That there are two

water filtration plants in Anpara Thermal Power Project was

admitted. However, it was submitted that main filtration plant is

permanent having the capacity of treating three million gallons

water per day while the second one is temporary having the

capacity of treating three lac gallons per day. It was further

submitted that from permanent filtration plant, supply is given to

the entire colony and ITI passed/trained operators are being

appointed by the department to run it; these appointments are

made by the selection committee through selection procedure

on the basis of eligibility and advertisement by the Board. The

permanent plant runs 24 hours; it has six pumps and each has

the capacity of 170 H.P. The chemicals are mixed at this plant

mechanically and for its operation eligible and responsible

employees are required. In the other filtration plant which is of

temporary nature, employees are engaged through contractor

for its operation. The temporary filtration plant is operated by

skilled and semi-skilled employees who are engaged by

3 contractors. These workers are paid wages at the rate declared

by the labour department. The appellants set up a specific case

before the Labour Commissioner that the work of the

employees in the two filtration plants cannot be compared and,

therefore, the employees working in the temporary filtration

plant are not entitled to the same wages and facilities as are

being paid to the regular employees working in the main

filtration plant.

4. The Labour Commissioner, however, was not

persuaded by the reply submitted by the Electricity Board and

vide his order dated October 24, 1998 held that the contract

labour in temporary filtration plant should be paid the wages at

the rate admissible to the workers in the main plant.

5. The present appellants challenged the order of the

Labour Commissioner by filing writ petition before the High

Court of Judicature at Allahabad. The Single Judge dismissed

the writ petition on May 14, 1999 holding that the findings

recorded by the Labour Commissioner required no interference.

6. The special appeal preferred by the present

appellants before Division Bench was held not maintainable.

4 Even on merits, the Division Bench held that the view of the

Single Judge did not commend itself for interference in view of

the order passed by the Labour Commissioner holding that the

employees employed through the contractor were performing

same or similar kind of work as the workmen directly employed

by the appellants.

7. We heard Ms. Shobha Dikshit, learned Senior

Counsel for the appellants and Mr. J.C. Batra, learned Senior

Counsel for the Union.

8. Rule 25(2)(v)(a) of the Rules, 1975 provides that in

cases where the workmen employed by the contractor perform

the same or similar kind of work as the workmen directly

employed by the principal employer of the establishment, the

wage rates, holidays, hours of work and other conditions of

service of the workmen by the contractor shall be the same as

applicable to the workmen directly employed by the principal

employer of the establishment. It further provides that in case of

any dispute with regard to the type of work, the Labour

Commissioner, Uttar Pradesh shall decide the same and his

decision shall be final.

5

9. It would be, thus, seen that Rule 25(2)(v)(a)

incorporates the principal of `equal pay for equal work'. By

statutory provision, it is mandated that the employees engaged

by the employer through contractor who perform the same or

similar kind of work must be paid the same wages and facilities

as being paid to the employees employed directly by the

principal employer of the establishment. In case of any

controversy as to whether the workmen employed by the

contractor perform the same or similar kind of work as

employed directly by the principal employer of the

establishment, the Labour Commissioner has been empowered

to resolve such dispute.

10. Nature of work, duties and responsibilities attached

thereto are relevant in comparing and evaluating as to whether

the workmen employed through contractor perform the same or

similar kind of work as the workmen directly employed by the

principal employer. Degree of skill and various dimensions of a

given job have to be gone into to reach a conclusion that nature

of duties of the staff in two categories are on par or otherwise.

Often the difference may be of a degree. It is well settled that

6 nature of work cannot be judged by mere volume of work; there

may be qualitative difference as regards reliability and

responsibility.

11. In the instant case, except recording that the

contract labour engaged through contractors is doing the

similar work, the Labour Commissioner in its order has not

adverted to the evidence and material placed before it. The only

consideration by the Labour Commissioner in its order dated

October 24, 1998 is as follows :

"I have fully considered all the facts and perused the records and documents produced by the parties. On the basis of the facts submitted, there is no reason before me on the basis of which the contract labour engaged through contractors who is working the similar work, should be given wages at a lesser rate than the permanent employees. Only minimum qualification could be the basis for the worker of both the plants to some extent. Therefore, considering all the facts my opinion is that 28 contract labour in temporary plant through contractor M/s. Eastern Engineering Corporation and M/s. Kheroni Constructions Company should be paid the wages at the rate admissible to the workers/labours in permanent plant. This is my decision in respect of application......"

12. As a matter of fact, the present appellants

specifically set out the details of works in two water filtration

plants thus :

"There are two water filtration plants in Anpara Project. One is permanent having the capacity of treating 3 million Gallon

7 water per day (3 M.G.D) or 30 lacs gallon per day and the second is temporary having capacity of treating 3 Million Gallons per day i.e. 3 lacs gallons per day. From permanent treatment plant, water supply is given to the entire permanent colony. This plant is very important and permanent. Therefore, I.T.I. passed/trained operators are being appointed by the department to run it. The appointments are being made by the Selection Committee through selection procedure on the basis of eligibility and advertisement by the Board. Therefore, the operators and employees appointed on this plant are permanent employees of the department and they are fully responsible for the work done by them. The equipments installed at this plant are of permanent nature and it is being run 24 hours (day and night). There are 6 pumps at this plant and each has the capacity of 170 H.P. and consumes 9302.40 watts electricity. The chemicals are mixed at this plant mechanically and for its operation eligible and responsible employees are required. The salary of these employees comes in the payscale of permanent employees who have been appointed. There are 26 employees have been appointed and working in this plant.

The other filtration plant is of temporary nature and is being operated till the next phase of the project is completed and after the completion of next phase it will be closed. From this plant water is supplied to the temporary colony and project area. It is being operated through contractor. The Department makes the payment to the contractor on the basis of itemwise as per the work executed and not labour wise. The contractor used to make payment to his employees on the basis of minimum wages declared by the Government from time to time and not less than that amount. The contractor get this plant operated by his 3 unskilled and 3 semi-skilled employees.

The basic pay of the regularly operated appointed by the Board are water filtration plant is as follows :

Operators--Basic Pay Rs. 1200 D.A.2572 Local compensatory Allowances 180. Interim Relief 340. Total 4292 per month. Labourers : Basic Pay Rs. 900 D.A. 1931 Local compensatory Allowance Rs. 120 Interim Relief Rs. 300 Total Rs. 3251 per month

8 The contractors used to pay to his semi-skilled employees Rs. 1857.87 per month and to unskilled employees Rs. 1580.23 per month which are declared by Labour Department to the employees in temporary filtration plant. Its photocopy is enclosed.

The above facts show that it will not be justiciable to compare the work and facilities of the employees working in permanent filtration plant with the employees working in Temporary Filtration Plant."

13. Despite such a specific case set up by the present

appellants before the Labour Commissioner to show that the

contract labour in filtration plant engaged through the

contractors do not perform the same or similar kind of work as

is done by the employees employed directly by the employer in

main plant, the Labour Commissioner did not advert to these

aspects at all. The Labour Commissioner ought to have

adverted to the nature of duties of the staff in the two

categories, degree of skill and dimensions of the job for

reaching the conclusion that the work done by the contract

labour in the second filtration plant is same or similar to the kind

of work done by the employees employed by the principal

employer directly in the main plant. There is no discussion at

all by the Labour Commissioner as to how he arrived at the

conclusion about similarity of work. The evidence let in by the

9 parties and the material placed by them seem to have not at all

been considered by the Labour Commissioner.

14. The order of Single Judge is no better. He has

simply not considered any thing. Insofar as Division Bench is

concerned, although, the judgment runs in nine foolscap typed

pages but out of that, eight pages relate to maintainability of

appeal. In one paragraph, on merits, the Division Bench said

thus :

"........,we are of the considered view that the judgment of the learned Single Judge does not commend itself for interference on merits. The learned Single Judge has committed no illegality in maintaining the order passed by the Labour Commissioner holding that the workmen on whose behalf application under the proviso to rule 25(2)(v)(a) of the U.P. Rules was filed, though employed by the Contractor, were performing the same or similar kind of work as the workmen directly employed by the appellant and therefore, the wage rates and other conditions of service of the workmen of the contractor shall be the same as applicable to the workmen directly employed by the appellants on the same or similar kind of works."

15. We are afraid, the consideration of the question as

to whether the workmen employed by the contractors in the

second filtration plant perform the same or similar kind of work

as the employees directly employed by the principal employer

in the main plant by the Labour Commissioner as well as High

Court is highly unsatisfactory. In a situation such as this, we

1 are constrained to set aside the impugned judgment of the High

Court as well as the order dated October 24, 1998 passed by

the Labour Commissioner, Uttar Pradesh. The application

made by the Union under Rule 25(2)(v)(a) of the Rules, 1975 is

restored to the file of Labour Commissioner, Kanpur, Uttar

Pradesh for fresh consideration in accordance with law.

16. Appeal is allowed to the aforesaid extent with no

order as to costs.

..................

......J (D.K. Jain)

............. ...........J (R. M. Lodha)

New Delhi November 4, 2009.

1

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