Contract Labour (Regulation and Abolition) Act, 1970:

Sections 1(4) & (5), 2(1) (a) (Before and After 1986 Amendment) 2 (1) (b) (c) (e) (g) & (i), 7 to 9, 10, 16 to 21 and 23 to 25.

Contract Labour (Regulation and Abolition) Rules, 1971:

Rules 21 (2), 25(2) (V) (a), 72 to 77, 81(3) 82(2) Forms I, II, III, IV, VI, XII, XIV and XXV.

'Appropriate Government' Correct import of expression-Government Company-Appropriate Government in respect of Who is Determination of appropriate Government-Test laid down for pre-amendment and post- amendment period.

"Appropriate Government"-Expression 'Any Industry carried on by or under the authority of the Central Government-Scope and meaning of Test to determine whether an industry was being carried out under the authority of Central Government laid down-The fact of being an instrumentality of State is not determinative in this regard.

Contract Labour-Central Government-Notification dated December 9, 1976 issued under Section 10(1)-Prohibition of employment of contract labour under the Notification-Notification held invalid for non-compliance with requirements of Section 10-Held there was non-application of mind by Central Government-Notification quashed prospectively.

Contract labour-Absorption Issue of a valid Notification prohibiting contract labour-Effect of Held provisions of Act neither expressly nor impliedly provide for automatic absorption of contract labour on issuance of a Notification-Position in this regard before and after enactment of the Act- Discussed-Consequences of prohibition Notification issued under Section 10- Discussed.

Constitution of India, 1950: Articles 12, 14, 23, 38, 39, 43A and Preamble.

State-Duty and obligation to improve the lot of the work force.

Industrial Disputes Act, 1947: Section 2(a) Scope of Object of Act.

Interpretation of statute-Duty of Court to give effect to clear and explicit language-Rule of literal interpretation-Distinction between public law and private law-Held not relevant in regard to interpretation of statutes- Applicability of Mischief Rule-Principle of liberal construction of beneficial legislation-Applicability of.

Public law Private law-Distinction between-Held not relevant in regard to interpretation of statutes.

Labour law-Principles of contract law-Applicability to labour law.

Words and Phrases:

'Authority'-Meaning of in the context of Section 2(1) (a) of the Contract Labour (Regulation and Abolition) Act, 1970.

In these appeals the following questions arose for consideration:

(i) What is the true and correct import of the expression 'appropriate Government' as defined in clause (a) of sub-section (1) of Section 2 of the Contract Labour (Regulation and Abolition) Act, 1970;

(ii) Whether the Notification dated December 9, 1976 issued by the Central Government under Section 10 (1) of the C.L.R.A. Act prohibiting employment of contract labour in all establishments of the Central Government companies is valid and applies to all Central Government companies; and

(iii) Whether automatic absorption of contract labour, working in the establishment of the principal employer as regular employees, follows on issuance of a valid notification under Section 10(1) of the C.L.R.A. Act, prohibiting the contract labour in the concerned establishment. 

Disposing of the appeals, the Court.