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Balwant Rai Saluja v. Air India Ltd.

Civil Appeal · Neutral citation not assigned (Civil Appeal Nos. 10264-10266 of 2013)Decided 25 Aug 2014
Civil Appeal Nos. 10264-10266 of 2013
Justice H.L. Dattu · Justice R.K. Agrawal · Justice Arun Mishra

Background

Temporary and casual workers engaged by Hotel Corporation of India's Chefair unit ran a statutory canteen at Air India's Delhi establishment. They sought recognition and regularisation as Air India employees. The labour tribunal accepted their claim, but the High Court rejected it. A three-judge Bench considered the issue after two Supreme Court judges differed.

Decision Breakdown

The Court dismissed the workers' appeals. Statutory canteen workers count as factory workers for Factories Act purposes, but that status alone does not confer Air India employment for recruitment, promotion, pension or regularisation. HCI controlled hiring, discipline, dismissal and salary payment; Air India's involvement concerned quality, subsidies and supervision of the canteen. HCI remained a separate legal entity, and ownership of the subsidiary did not establish that it was a sham designed to evade workers' rights. The workers could not demand parity with Air India's regular employees on this record; any lawful rights against HCI remained separate.

Lesson Learnt

Working in a company's compulsory canteen does not automatically make a contractor's worker its regular employee. The actual employment relationship, including control of hiring, wages and discipline, must be proved.

Official source (sci.gov.in)View Judgment (PDF)

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