Disposed

Telangana State Tourism Contract v. Government of Telangana

Telangana HC7 Apr 2022WP(PIL)/24/2019

Case brief

AI extract

What is this about?

In a PIL regarding alleged labour law violations by outsourcing agencies supplying manpower to the Telangana State Tourism Corporation, the Court found that EPF dues were already recovered and statutory remedies existed for other grievances. Disposing of the petition, the Court directed the Tourism Corporation to blacklist contractors violating statutory provisions.

What did the court decide?

Petition disposed as infructuous resting on Tourism Corporation to blacklist non-compliant contractors.

Telangana State Tourism Contract Vs… — Pension and Retirement Benefits | Telangana HC (2022)

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HIGH COURT FOR THE STATE OF TELANGANA: AT HYDERABAD (Special Original Jurisdiction )

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THURSDAY ,THE SEVENTH DAY OF APRIL TWO THOUSAND AND TWENTY TWO

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PRESENT

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THE HON'BLE THE CHIEF JUSTICE SATISH CHANDRA SHARMA AND THE HON'BLE SRI JUSTICE ABHINAND KUMAR SHAVILI

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WRIT PETITION^(PIL) NO: 24 OF 2019

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Between:

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Telangana State Tourism Contract, Outsourcing Dailywage Employees and Workers Union, 1-7-139144, N.V.B. SmarakaKendram Risalagada, Zamistanpur, Musheerabad, Hyderabad-500020, Telangana State. Represented by its General Secretary, Sri. J. Krishna Reddy.

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...PETITIONER

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AND

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Government of Telangana, Secretariat, Hyderabad Rep by the Chief Secretary

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Department of Labour, Government of Telangana T. AnjaiahBhavan, RTC Cross Road, Behind [le..li Theatre, Chikkadpalli, Hyderabad, Telangana 500020 Rep by the Commissioner of Labour

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Employees Provident Fund Organization, BhavishyanidhiBhawan, Barkatpura Chaman, Hyderabad, Telangana 500027 Rep by Regional PF Commissioner

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E.S.l Corporation of lndia, Panchdeep Bhawan, 5-9-23, Hill Fort Road, New .^[t4LA Quarters, Adarsh Nagar, Hyderabad, Telangana 500063 Rep^by the Director

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lncome Tax Department, Govt. of lndia, lncome Tax Towers, AC Guards, Hyderabad - 50000 4 Rep by the Chief - Commissioner

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Goods and Service Tax Department, Govt of lndia, LB Stadium Rd, Band Colony, Hill Fort Road, Hyderabad, Telangana 500004 Rep by the Chief - Comm issioner

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The Union of lndia, represented by the Ministry of Labour and Employment Department Sharam Shakthi Bhawan Rafi Marg New Delhi 1100 01

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(RR 7 lS Suo moto lmpleaded as per Court Order Dated 2610212019 in wP(PrL). 24t2019))

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..RESPONDENTS

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Petition under Article 226 of Constitution of^{India praying that in the} circumstances stated in the Aff,davit filed therewith, the^{High Court may, be} pleased to issue a Writ, Order or Direction in the nature of Mandamus declaring the inaction of the Respondents in taking action on the^{representationsdated} 10-08-2017 and 06-09-2018 given to all the Respondents, is bad, illegal, ultra vires the powers of the Respondents and consequently direct the respondents to conduct enquiry in order to find out amount evaded by all the outsourcing Agencies with regard to payment of Provident fund Dues, ESl, under^paid salaries contrary to Minimum Wages Act, non-payment of Bonus as^per Payment of Bonus, Act, Leave entitlement as^per Shops and Establishment Act or Factories Act, benefits to the lady employees of outsourcing under Maternity Benefit act and also evasion of lncome Tax and service tax for the last 3^years and consequently direct the respondent to^pay dues to outsourced employees payable under various labour law enactments and recover the same from the erring outsourcing Agencies along with interest and penalty and take disciplinary action on the officials involved in the crime as well as initiate criminal cases against them and blacklist all erring outsourcing agencies involved in the irregularities.

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lt is also prayed that this Hon'ble Court may; be pleased to direct the Respondents to draft foolproof integrated Outsourcing policy including common tender documents, common agreement, common rates for all Telangana State Government Departments, Companies, Organisations, and Government financed institutions so as to eliminate corruption, non-compliance of Labour Acts and Taxes

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lA NO: 1 OF 2019

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Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to direct the Respondents to forthwith conduct inspection of all the Organizations engaging outsourcing employees, Iist out violations under various Acts i.e. Payment of [,4inimum Wages Act, Employees Provident Fund Act, E.S.l. Act,Bonus, Gratuity Act and maternity benefit Act and submit a report to the Honourable High Court in a time bound manner, pending disposal of this Writ Petition

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CounseI for the Petitioner: SRI SUNIL B.GANU

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Counsel for the Respondent No.1: GP FOR GENERAL ADMINISTRATION/ ADDL. ADVOCATE GENERAL

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Counsel for the Respondent No.2: GP FOR LABOUR Counsel for the Respondent No.3: SRI T.BALAJI, SC for EPFO Counsel for the Respondent No.4: SRI B.G.RAVINDER REDDY

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Counsel for the Respondent No.5: SRI B.NARASIMHA SARMA, SC for lT Counsel for the Respondent Nos. 6 & 7: SRI N.RAJESHWAR RAO, ASG

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The Court made the following: ORDER

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.TI I E HON'B I,E 1'I IE CI III'F IL;S]'I CIj SATISTI (]I IANDRA SI I ARMA i\NI)

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II I tl HAVIIW.P.(PIL) No.2-1 of 2019

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ORDER: ).t ttx t k ihL t/t a:tJ,.l l''tu : iJt ( t!.,).t \ t'ttn.t)

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Petitioner before this C-ourt, the Telangana State^'fourism C-ontract, Outsourcing Dailywage Emplopes & Workers Union, has filed the present petition stating that various outsourcing agencies are supplying manforce to the Telangana State Tourisrn C-orporation (for shon 'the Tourism Colporation) on conrract and the outsourcing agencies are not paying the minimum wages as per the Minimum (ages Act, 1948, to the outsowced emplolaes, PF Contributions/ESl Contributions are not being deducted and they are not being paid bonus as per the Payment of Bonus Act.,1965.

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The petitioner has prapd for the following relief: "It is therefore, prapd that this Ftrcnourable Coun may be pleased to issue a^\iflrit, Order or Direction in the nature of Mandamus

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[1]^{declaringthe inaction of the Respondents in aking} action on the representatiom dated 10-08-2017

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..)..

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and 06-09-2018 givcn ro all the Respondents is bad, illegal, ultra vires thc powers of the Respondents and consequently dircct the respondents to conduct enquiry in order to find out amount evaded by all the ousourcing Agencies with regard to palnnent of Provident fund Dues, ESI, under paid salaries contrary to Minimum Vages Act, non-pa),rnent of Bonus x per Pa),ment of Bonus Act, kave entidement as per Shops and Establishment Act or Factories Act, benefis to the lady employees of outsourcing under Maternity Benefit act and also er.asion of Income Tax and service tax for the last I lean and consequently direct the respondent to pay dues to outsourced employees payable under various labour law enactments and recover the same from the erring outsourcing Agencies along with interest and penalty and uke disciplinary action on the officials involved in the crime as well as initiate criminal cases against them and blacklist all erring outsourcing agencies involved in the irregularities and be pleased to pass such other order or orders as *ris Ftronourable Coun deems fit and proper in the circumstances of the case.

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[2]^{It is also praledthat this Ftronourable Courtmaybe} pleased to direct the Respondents to draft foolproof integrated Ousourcing policy including common tender documenm, comnon agreement, corrrmon rates for all Telangana State Govemment departments, C-ompanies, Organizations, and Govemment financed institutions so

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as [o eliminate corruption, non compliance o[ Labor.Lr Acts and Taxes.

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INTERIM PRAYER

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It is prapd that this Honourable Qrun rnay bc pleased to direct the Respondents to fonhwith conduct inspection of all the Organisations engaging outsourced emplopes and outsourcing agencies, list out violations under variors Acts ie. Pa),rnent of Minimum Wages Acq Employees Provident Fund Act, E.S.I. Act, Pa).rnent of Bonus Act, Gratuiry Act, lrllataemiry Benefit Act and Leave Entitlement under Shops and Esablishment Act or Factories Act. Submit a report to the Honourable F[gh C-oun in a time bound manner, pending disposal of this Vrit Petition and be pleased to pass such other order or orden as this Honourable C-oun deems fit and proper in the circumstances of the case."

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The petitioner has not impleaded any of the outsourcing agencies, which has supplied manforce to the Tourism Corporation.

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However, respondent No.3- Employees Provident Fund Oryanisation (EPFO) has filed a detailed counter-affidavit stating that the Tourism C-olporation was not complying with the provisiors of tlre Employees Provident Fund and Miscellaneots

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Provisions Act, 1952 (for shon 'the Act 1952) and therefore, an enquiry was initiated agairrt the Tourism Colporation. Eventually, an order was passed under Section 7A of the Act 1952, a liabiliry of Rs.32,98,885/- was finalized based on the repon of the Enforcement Officer and the said amount has already been recovered.

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There is a counter.affidavit filed on behalf of respondent No.2- Commissioner of Labour, Govemment of Telangana, stating that a Grievance Gll has been constituted as per G.O.fu.No.4271 Finance (SI/PQ Department dated 01.11.2008, and t is exclusiveiy meant for redressal of the grievance of the outsourced emplopes. lt has been stated that any complaint received in the mater is thoroughly examined and remedial measures are taken by the State Govemment. It has also been stated that the outsourcing agency is cenainly under obligation to comply with the provisions of the Contract Iabour (Regulation and Adoption) Acr, 1970 (for shon 'the 1970 Act), as well as the other statutory provisions relating to EPF and ESI Contributions. It has also been suted that the outsourcing agency is also under

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I I

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obligation to pay minimum wages to the outsour:ed ernployees and in case of any complaint, there is a mechanism provided urder the Statute for its redressal.

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In the considered opinion of this Coun, as there is already a grievance redressal mechanism in existence, in case any outsourced employees are not being paid minimum wages or. contribution towards the ESI dues are not being deposited to the Emplolees State Insuance Colporation, there is a remedy ar.ailable under the 1970 Act, which can be availed bythem. Therefore, in case of non-paFnent of wages, there is cenainly a remedy under the Minimum $V'ages Act and in case other statutory provisions are not complied with, a complete mechanism is provided under the Statutes relating to the Emplopes State Insurance.

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As Provident Fund dues have already been recovered and there is remedy available to all the wod<men, this Court does not find any reason to issue any funher directions.

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However, it shall be the dury of the Tourism C-orporation to ensure strict compliance of all statutory provisions in respect of the

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outsourced emplo).rees rlso. llre contmctors, who are not comp$ng with the starutort/ provisions relating to grant of rmmmrun wages, ESI dues, EpF dues and other statutoqy dues, be blacklisted/debarred from panicipating llt future contracts by following the due process of iaw.

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Subject to the above observations, the Writ petition is disposed of.

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No costs.

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As a sequel, Miscellaneous petitions, pending if any, srand

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disposed of as infructuous.

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\ {

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SDi- B. SATYAVATHI DEPUTY REGISTRAR //TRUE COPY// '' 1l SECTION OFFICER

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To 1. The Chief Secretary,.Government of Telangana, Secretariat, Hyderabad z. I he Uommtssioner of Labour, Department of Labour, Governm'ent of Telangana T. AnjaiahBhavan, RTC Cross Road, Behind Devi Theatre, Chikkadpa i, Hydeiabad,

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' Teiangana 500b20. 3. The PF Commissioner, Employees Provident Fund Organrzation, BhavishyanidhiBhawan, Barkatpura Chaman, Hyderabiad, Telangana 500027

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1. The Director, E.S.l Corporation of India, PanchdeepBhawan, 5-9-23, Hill Fort Road, New MLA Quarters, Adarsh Nagar, Hyderabad, Telangana 500063

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1. The Chief Commissioner, lncome Tax Department,Govt of India, lncome Tax Towers, AC Guards, Hyderabad - 500004.

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1. The Chief Commissioner, Goods and Service Tax Department, Govt of lndia, LB Stadium Rd, Band Colony, Hill Fort Road, Hyderabad, Telangana 500004

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1. The Ministry of Labour and Employment Department, Union of lndia, Sharam Shakthi Bhawan Rafi Marg New Delhi I^'100 01

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1. Two CCs to the Advocate General, High Court for the State of Telangana [OUTI 9. Two CCs to the GP for General^{Administration,High Court for the State of Telangana} tourl

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1. Two CCs to the GP for Labour, High Court^{for the State of Telangana} [OUT] 11. One CC to SRI SUNIL B.GANU,^Advocate IOPUC] 12. One CC to SRI T.BALAJI, SC^{for EPFO} [OPUC] 13. One CC to SRI B.G.RAVINDER^{REDDY,Advocate} [OPUC] 14. One CC to SRI B.NARASIMHA^{SARIVIA, SC} for^lT [OPUC] 15. One CC to SRI N.RAJESHWAR^{RAO, Asst.Sol.General} [OPUC]