The Denial of Regularization of 13 Workmen Wholly Unjustified: Supreme Court Asserts in Mahanadi Coalfields Case

The Supreme Court addressed a significant legal issue concerning the regularization of contract workers performing perennial and permanent tasks. The judgment delved into the interpretation of contractual obligations and workers’ rights under the National Coal Wage Agreement and Industrial Disputes Act.

The dispute involved Mahanadi Coalfields Ltd. (MCL) and Brajrajnagar Coal Mines Workers’ Union over the regularization of contract workers. MCL had employed workers through a contractor for coal transportation. The Union sought permanent status for these workers under the clauses of the National Coal Wage Agreement-IV, which discourages employing contract labour for permanent jobs.

The Court meticulously assessed the nature of work performed by the 13 non-regularized workers. It was found that their duties were similar to those performed by the 19 regularized workers, contradicting MCL’s classification of their jobs as 'casual'. This formed the basis for the Court's disagreement with MCL’s contention that the settlement regarding 19 workers was binding and final.

The Court referenced the evidence from witnesses, including the personal manager (MW3) and project officer (MW4) of the appellant company, who admitted that the tasks undertaken by all workers were regular and perennial. This undermined the distinction made between the workers in the earlier settlement.

Further, the Court criticized the artificial distinction between workers in the bunker, Coal Handling Plant, and railway siding. It was highlighted that such distinction lacked substantial justification as the duties were perennial, and no credible evidence was presented to treat the two groups differently.

The Supreme Court, considering the facts and the Tribunal’s findings, dismissed the appeals by MCL. It upheld the Tribunal’s decision for regularization of the 13 workers and granted them backwages from the date of the Tribunal's decision (23.05.2002), citing the unjustified denial of regularization.

Date of Decision: 12th March 2024

Mahanadi Coalfields Ltd. vs Brajrajnagar Coal Mines Workers’ Union,