Authority: High Court (Presiding Judge Shampa Dutt (Paul))
Order Date: 06 October 2026
Case Overview
- Petitioners: Ferro Scrap Nigam Limited Employees' Union, Durgapur Unit & Anr.
- Respondents: Union of India & others, including Durgapur Steel Plant (a unit of Steel Authority of India Ltd).
- The writ petition (WPA 28429 of 2026) seeks a direction that contract labour engaged by FSNL should not be discontinued until the pending reference before the Central Government Industrial Tribunal‑cum‑Labour Court (Reference No. 14 of 2026) is finally decided.
- The reference poses two questions: (1) whether FSNL workmen are entitled to absorption/regularisation by Durgapur Steel Plant, and (2) whether denial of wage parity and related benefits is illegal.
- An earlier writ petition (WPA 22386 of 2026) was disposed on 01‑09‑2026, with the Court directing the private respondent to proceed with a tender dated 19‑01‑2026 while keeping in mind the pending tribunal reference (order (44)/2025/E dated 24‑02‑2026).
- The petitioners argue that a Section 33 Industrial Disputes Act application before the Tribunal is scheduled for hearing on 23‑12‑2026, and that the respondents intend to operationalise a new contract awarded on 20‑08‑2026 via the GeM portal, which would prejudice the pending reference.
- The respondents’ written statement (clause 2(c)) contends that the contract awarded to FSNL (then a Central Public Sector Enterprise) is not covered by the NJCS Agreement, 2014 clauses intended to prevent engagement of contract workers, and that any grievance should be directed at FSNL, not SAIL/Durgapur Steel Plant.
- Clause 2(d) of the written statement asserts that after FSNL’s privatisation to FSNL Pvt. Ltd., the existing contract with Durgapur Steel Plant is extended only till 30‑09‑2026, after which the new GeM‑awarded contract (20‑08‑2026) will take effect. It also references the disposal of appeals FMAs 265 and 266 of 2019 on 09‑12‑2024.
- The petitioners rely on a Notification dated 22‑02‑1982, which documents a continuous contract‑labour arrangement at Durgapur Steel Plant since June 1962, with successive contractors (including FSNL) redeploying the same workforce.
- Respondents argue that the present writ is barred by res judicata, as the earlier writ addressed the same issue.
Final Outcome
- The Court re‑affirms that the direction issued in Paragraph 7 of its order dated 01‑09‑2026 remains in force.
- Respondents are restrained from giving effect to any new contract, specifically the contract awarded on 20‑08‑2026, until the Tribunal disposes of the pending reference.
- The private respondents must remain bound by law concerning the eventual Tribunal award, as the reference predates the new contract.
- Respondents and their agents are prohibited from discontinuing or taking any coercive action against the petitioners/contract workers pending the Tribunal’s decision.
- The writ application is hereby disposed of.
- An urgent photostat certified copy of this order may be supplied to the parties after completion of formalities.
Topics: Labor Dispute, Contract Labour Regulation