Case Review on M.

Rajan v Oil & Natural Gas Commission

Facts of the case:

This case involves a matter where the petitioner a security guard who was engaged by the
respondent for more than a decade as Security Guard without regularising the petitioner’s
services. The petitioner was initially employed through a private contractor and after contract
labour system was abolished , the respondent continued to engage the contract labour through
an agency called “Priyadarshni Indira Gandhi Co-operative Labour Contract and Society”.
The petitioner even though was in continuous service on daily rated wages and now paid
monthly wages but not on par with the regular workers of the category and have not been
granted permanent status for serving continuously for more than a decade. Being aggrieved
by the decision of the division bench of High Court of Judicature at Madras the petitioner has
sought the apex court to redress his grievance.

Issue of the case:

Whether the petitioner’s service is to be regularised for serving continuously?

Whether the award passed by the Industrial Tribunal is binding only on the parties to the case
or even to the parties of the agreement?

Whether there is violation of Article 14 of the Constitution of India for not granting
permanent status and for not paying them wages par to the workers of the same category
despite serving for a decade?

Legislations Referred:

 The Contract Labour (Regulation and Abolition) Act, 1970

 The Industrial Disputes Act,1947

Prayer of the Petitioner:

The petitioner is seeking regularisation of service with all the consequential benefits for
serving more than a decade temporarily and to receive salary at par with the regular workers
of the same category.

Case Laws Referred:

ONGC Ltd v Petroleum Coal Labour Union and Ors.
The Court held that non-regularisation of the concerned workmen falls within the scope of
industrial dispute as defined Under Section 2(k) of the Act. It is further held that the
concerned workmen are all victims of unfair labour practice having been employed by the
Corporation for several years on temporary basis and even though they were not appointed by
following the procedure laid down by the Corporation for recruitment to such posts, they
were entitled for regularisation and that their appointment cannot be stated to be illegal.
The Director Steel Authority of India Ltd v Ispat Khandan Janta Mazdoor Union.
The Court had taken note of various tests for determining nature of contract which has been
laid down from time to time by the judicial pronouncements i.e. supervision and control,
effective and absolute control, disciplinary action, payment of wages etc., the primary tests as
the determining factor in arriving to a conclusion as to whether any contract entered in
contradistinction to the tests laid down, if any, between the contractor and the contract labour
that indeed is sham and bogus.The consequence is restoring the relationship of the principal
employer and of contract labour as an employer and employee and this makes the Respondent
entitled for their regularisation of service and the difference of salary which has been paid to
their counterparts who were regular in employment of the Appellant establishment which
indeed could not have been denied to the Respondent.
Pandurang Sitaram Jadhav and Ors v The State of Maharashtra and Ors.
The Court directed the Respondents to regularize the Appellants Sand the necessary orders be
issued within three months from the date of the order. Also the benefits which the Appellants
would be entitled should also be remitted to the Appellants within the same period from the
date of the complaints, though the earlier period would be counted for the purpose of
calculation of benefits without the Appellants being monetarily entitled for that period.The
factual matrix shows that for decades together these Appellants have been performing the job
of the regular employees and this is not a seasonal requirement or a temporary requirement.
No doubt there was no regular process by which these appointments were made.