Food Corporation of India Workers’ Regularization: Supreme Court Upholds Tribunal Decision

The case of Food Corporation of India vs. Gen. Secy, FCI India Employees Union & Ors. revolved around a long-standing dispute regarding the employment status of 955 workers at the Chennai branch of the Food Corporation of India (FCI). The Supreme Court upheld the Industrial Tribunal’s decision directing FCI to regularize these workers, emphasizing their long-term employment and the nature of their work.

Background of the Case

The dispute originated in 1992 when the 955 workers claimed that they were employees of the FCI and demanded regularization. The FCI, on the other hand, contended that these workers were contract laborers engaged through a labor cooperative society and, therefore, were not entitled to be treated as regular employees of the corporation.

Arguments Presented

FCI’s Argument

• The 955 workers were never directly employed by FCI.
• They were engaged through a contract labor cooperative society.
• Since they were not on FCI’s payroll, they were not entitled to regularization.
• The Industrial Tribunal and the High Court had erred in treating them as FCI employees.

Workers’ Union Stand

• The workers had been working for FCI for several years, performing duties similar to regular employees.
• The contract labor system had ended in 1991, and FCI continued to pay them directly.
• The nature of their work was permanent, not temporary or seasonal.
• FCI failed to provide any evidence to counter their claim of regular employment.

Industrial Tribunal’s Ruling

The Industrial Tribunal ruled in favor of the workers, directing their regularization. It based its decision on the following findings:

• The contract labor arrangement ended in 1991, after which the workers were directly paid by FCI.
• Their work was of a permanent nature.
• FCI did not present any evidence to disprove their employment claim.

The Tribunal’s award was subsequently upheld by a Single Judge and later by a Division Bench of the Madras High Court.

Supreme Court’s Verdict

The Supreme Court dismissed FCI’s appeal, affirming the decisions of the lower courts and the Industrial Tribunal. The Court observed:

“The Tribunal, on appreciating the evidence, rightly concluded that the contract labor arrangement had ended in 1991 and thereafter, these workers were directly paid by FCI, performing permanent duties within the organization.”

The Court further noted that FCI had failed to present any evidence contradicting the workers’ claims.

Additionally, the Supreme Court referred to a similar case involving FCI workers in West Bengal, where the Tribunal and High Court had also ruled in favor of regularization, a decision that FCI ultimately implemented.

Legal Significance

This judgment reaffirms the principle that workers engaged in long-term, permanent work must be treated as regular employees. It also underscores the importance of employers providing concrete evidence when challenging claims of regularization.

Conclusion

The Supreme Court’s ruling ensures justice for the 955 workers, recognizing their right to regular employment. The decision also serves as a precedent for similar disputes involving contract workers seeking regularization.

Petitioner Name: Food Corporation of India.
Respondent Name: Gen. Secy, FCI India Employees Union & Ors..
Judgment By: Justice Abhay Manohar Sapre, Justice Sanjay Kishan Kaul.
Place Of Incident: Chennai, Tamil Nadu.
Judgment Date: 20-08-2018.

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