BHARAT HEAVY ELECTRICALS LTD. versus MAHENDRA PRASAD JAKHMOLA & ORS.

BHARAT HEAVY ELECTRICALS LTD. versus MAHENDRA PRASAD JAKHMOLA & ORS.

The Labour Court's Award was perverse because it ignored documentary evidence that workmen were paid by contractors and not directly employed by BHEL; gate passes issued for security do not establish a direct relationship; there was no factual basis for applying the extended definition of employer under the Uttar Pradesh Industrial Disputes Act; notification exempts BHEL from applicability; findings of sham contract were incorrect.

Parties
Appellant: Bharat Heavy Electricals Ltd.; Respondents: Mahendra Prasad Jakhmola & Ors.
Jurisdiction
India
Judgment Date
20 February 2019
Procedural Posture
Civil Appeal / Final Judgment
Outcome
Appeals allowed; impugned judgments and Labour Court's Award set aside.
Legal Topics
Contract Labour, Employer Employee Relationship, Reinstatement, Judicial Review Under Article 226
Labour Law Contract Labour Employer Employee Relationship Reinstatement Judicial Review Under Article 226

Case Brief

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Parties

Bharat Heavy Electricals Ltd.

Appellant

Mahendra Prasad Jakhmola & Ors.

Respondents

Procedural Posture

Civil Appeal / Final Judgment

Legal Issues

  1. 1 Whether termination of workman was justified under the Contract Labour (Regulation and Abolition) Act, 1970
  2. 2 Whether the relationship between BHEL and the workmen was direct employment or through a contractor
  3. 3 Whether the contract was a sham

Ratio Decidendi

The Labour Court's Award was perverse because it ignored documentary evidence that workmen were paid by contractors and not directly employed by BHEL; gate passes issued for security do not establish a direct relationship; there was no factual basis for applying the extended definition of employer under the Uttar Pradesh Industrial Disputes Act; notification exempts BHEL from applicability; findings of sham contract were incorrect.

Court Disposition

Appeals allowed; impugned judgments and Labour Court's Award set aside.

Orders

  • Impugned judgments of High Court and Labour Court’s Award set aside.