Dismissing an appeal in Bhilwara Dugdh Utpadak Sahakari S Ltd v Vinod Kumar Sharma, a two-judge bench of the Supreme Court lamented “the unfortunate state of affairs prevailing in the field of labour relations in the country”.
The primary issue before the court was the interpretation of section 10 of the Contract Labour (Regulation and Abolition) Act, 1970, and situations where employers try to show that their own employees are, in fact, the employees of a contractor. The appellant, Bhilwara Dugdh Utpadak Sahakari S, was the employer in question. Section 10 of the act deals with the prohibition of employment of contract labour.
The Supreme Court affirmed the judgment of Rajasthan High Court, which had found that the plea of the employer that the respondents were employees of a contractor was not correct and that they were employees of the appellant.
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The update of court judgments is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at lbhasin@bhasinco.in or lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.
