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ONGC Ltd. v. Petroleum Coal Labour Union & Ors.

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 3727 of 2015)Decided 17 Apr 2015
Civil Appeal No. 3727 of 2015
Justice V. Gopala Gowda · Justice C. Nagappan

Background

Security personnel of ONGC's Cauveri Basin project, originally engaged through contractors and later through a cooperative society, were directly appointed by ONGC on a short, fixed "term basis" in 1988 pending the planned induction of CISF personnel. The CISF induction never fully materialised, and the workmen continued in service for years without regularisation. An Industrial Tribunal held their non-regularisation unjustified and ordered regularisation from the date they completed 480 days; this was upheld by a Single Judge and a Division Bench of the Madras High Court. ONGC appealed to the Supreme Court, arguing the appointments were illegal (not merely irregular) and regularisation would violate the principles laid down in Secretary, State of Karnataka v. Uma Devi.

Decision Breakdown

The Supreme Court held that the workmen's appointments were irregular, not illegal, since they were made under a formal memorandum of appointment and the workmen possessed (barring one) the qualifications required under ONGC's own Recruitment and Promotion Regulations. It held Uma Devi's restrictions on regularisation did not bar relief here, since the workmen had been kept on permanent-nature duties for decades on a "stop-gap" label - an unfair labour practice under Section 2(ra) read with Schedule V Item 10 of the Industrial Disputes Act, which the Industrial Tribunal and both High Court benches had correctly found and remedied. The Court distinguished ONGC's reliance on Uma Devi and upheld the Tribunal's reliance on established industrial law principles (including Maharashtra SRTC v. Casteribe). The appeal was dismissed, with ONGC directed to regularise the workmen (computing back-wages and consequential benefits from the date they completed 240 days of service in a calendar year) within eight weeks, failing which 9% annual interest would apply to the back-wages due.

Lesson Learnt

Long-term "temporary" or "stop-gap" employment used to indefinitely delay regularising workers doing permanent, perennial work can be struck down as an unfair labour practice, and the Uma Devi ruling against "back-door" regularisation does not protect an employer when the original appointment was irregular (not illegal) and the employee is otherwise qualified.

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

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