As an intern, I, Yashwanth CR, was given an opportunity to observe many of the cases of M/s. Kasturi Associates. Amongst these, one case which caught my attention was the case of “Mico Contract Employee Association Vs. Motor Industries ltd & Ors.”. Mico is now popularly known as Bosch Ltd. This case was critical in nature. The judgment of this case would influence the large sector of the MNC’s and other companies, having more than 250 employees in Karnataka.
This case was under the matters of ‘Contact Labour Regulation and Abolition Act 1970’(CLRA). It was regarding the conflicts between the Mico company and the contract labour association. Both the parties had an inherent principal-employee relationship, but the employees were not the permanent employees.
It further reached the steps of the Supreme Court in the year 2012. On 10th August, 2023, Senior Counsel K. Kasturi Sir argued, the Supreme Court case of Mico contract employees via online. Several judgments of important case laws were cited by Senior counsel. A notification was issued under Section 31 of the Contract Labour Act 1970. The notification was issued in the year 2012, which laid certain exceptions to the notification under sub-clause (a) of clause (v) of sub-rule 25 of the Contract Labour Central Rules, 1971. In the case of Barat Fritz Werner LTD. v. State of Karnataka, the Advisory Board sent its advice to the Government suggesting the abolition of contract labour.
It also stated that ‘Section 10’ of the Contract Labour Act 1970, prohibits the employment of contract labour in industrial canteens. Further, the learned senior counsel of the respondents cited the “Air India Statutory Corporation and others Vs United labour Union & Ors.” in which it ‘ruled that on the abolition of the system of contract labour the workmen were entitled to absorption, and the court had powers under the Article 226
to direct the employers to absorb such workers’. (This case overruled the Dena Nath case).
Adding to it, Senior Counsel K. Kasturi Sir cited the case of “Steel Authority of India ltd Vs. National Fertilisers (SAIL’s case). The judgments of the SAIL’s case stated that they were not inclined to interfere with the judgment of the High Court. Paragraphs 125 and 126 of the SAIL’s judgment clearly implies that ‘neither section 10 of the CLRA Act nor any other provision in the Act, whether expressly or by necessary implication, provides for the automatic absorption of contract labour on issuing a notification by the appropriate Government under sub-section (1) of section 10 which prohibits the employment of contract labour in any process or operation’.
The Honourable Judges of the Supreme Court dismissed the case with references to the paragraph
125(4) and 126 of the SAIL’s judgment as the absorption was “not automatic”.Mr. K. Kasturi Sir appeared and assisted the next batch of matters, which completely changed the purview of the judges. The Supreme Court appreciated Mr.Kasturi for the assistance rendered.
This judgement protected several managements adding up to more than 750 companies. It was indeed a great learning, for which I am grateful to Kasturi Associates for allowing my internship with them. Amongst all the other aspects, the most important lesson learned from this case is that a minute aspect in every judgment passed before plays a vital role in the ‘delivery of rightful justice’.
Also, the apt usage of case laws is an important technique which is a tool of “excellency in advocacy”. I got a high insight regarding the Contract Labour Act and other matters such as the absorption of the notification alongside the rescinding of the notification. Assisting Senior Counsel was arduous as he was spontaneous and helping him with SCC books & ILR’s was a great research process. Time management is another aspect I acquired, which plays a major role in the delivery of accurate and flawless arguments.
After the end of the busy running day, the happiness of the victory that I evidenced in the four walls was delightful. Although not officially engaged, Senior counsel had been pre-vested to appear and ensure that the interests of his clients were protected. It was heartening to witness the sparkle of glory in the eyes of Senior Counsel K. Kasturi Sir. This was yet another feather in his crown of victory.
By,
Yashwanth CR
3rd Year Law student
University Law college, Bangalore University, Jnanabharathi, Bengaluru-560056
Approved by : K.Sribhoomi Yesaswini , Advocate
