TEXCO cannot insist BSNL to retain security guards: HC -The Hindu 15 10 10 on line edition

TEXCO cannot insist BSNL to retain security guards: HC
Mohamed Imranullah S.

Labour supplying contractor cannot dictate terms: judge

MADURAI: The Madras High Court on Friday said that the Tamil Nadu Ex-servicemen's Corporation (TEXCO), a State Government undertaking, cannot insist upon Bharat Sanchar Nigam Limited (BSNL) to retain ex-servicemen sponsored by it for employing them as security guards until the completion of a contract entered between the two organisations.

Dismissing a batch of writ petitions filed in the Madurai Bench by TEXCO and two associations working for the welfare of ex-servicemen, Mr. Justice K. Chandru said: “Under the Industrial Law, the BSNL has power to restructure its own work force. There is no gainsaying that the labour supply contractor can dictate terms as to how many security guards the BSNL must possess.

“The TEXCO do not render execution of any work in favour of the BSNL, they merely supply security guards… The Corporation, in many other cases, had taken a stand that the security guards supplied by them cannot have employer-employee relationship it and no claim can be made against it. If that is so, the question of TEXCO trying to enforce the terms of contract against BSNL will not arise.”

The judge also pointed out that BSNL had stoutly denied the existence of any concluded contract between it and TEXCO. “Even if there was any contract between them and if there is any breach, the TEXCO can only claim damages for such breach of contract under the Civil law and not by filing a writ petition to enforce a non-existing contract between it and the BSNL,” he observed.

“TEXCO cannot have any superior right of maintaining the work force supplied by them till the end of the contract period which is on June 30, 2011. That would amount to claiming superior right over the right of direct workmen employed by the BSNL and such a right is not recognised either under the Industrial Law or in any other law including Contract Law,” the judge added.

He also rejected writ petitions filed by National Ex-Servicemen Welfare Association and Tiruchi Region Ex-Servicemen Welfare Association on the ground that they did not have any privity of contract with BSNL. “If the members of the two associations lose their employment due to reduction of security guards by BSNL, their grievance can only be against TEXCO and not BSNL,” Mr. Justice Chandru said.

He recalled that the Supreme Court in Steel Authority of India Limited Vs. National Union Waterfront Workers (2001) had held that the right of the contract workmen in seeking either regularisation or absorption cannot be claimed through a writ petition filed under Article 226 of the Constitution. In such cases, the workmen would have to take recourse to the Industrial Disputes Act.