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Supreme Court of India

THE WORKMEN THROUGH THE CONVENER FCI LABOUR FEDERATIONversusRAVUTHAR DAWOOD NASEEM

Citation
2020 INSC 401
Decided
19 May 2020
Disposal
Dismissed

Holding

The Supreme Court held that no civil contempt occurred as the order only required regularisation and departmentalisation, not specifically under the Departmental Labour System, and the corporation’s compliance via the Direct Payment System satisfied the direction.

Summary

The workmen, represented by the FCI Labour Federation, sought to compel the Food Corporation of India (FCI) to regularise contract labourers under the Departmental Labour System (DLS) as directed by the Supreme Court in a 2018 order. The corporation had instead regularised the workers under its long‑existing Direct Payment System (DPS), arguing that the order only required regularisation and departmentalisation, not a specific system, and that DLS was a dying cadre. The Court examined whether the corporation’s actions amounted to wilful, deliberate disobedience required for civil contempt. It held that the order did not prescribe regularisation in DLS, that the corporation complied with the general direction by regularising under DPS, and that no wilful contempt could be established. Consequently, all contempt petitions were dismissed.

Issues considered

  • Whether the Supreme Court order mandated regularisation of workers specifically under the Departmental Labour System
  • Whether the corporation's regularisation of workers under the Direct Payment System constitutes wilful disobedience of the Court's order
  • Whether the elements of civil contempt – wilful, deliberate disobedience with full knowledge – are satisfied
  • Whether the Departmental Labour System being a dying cadre affects the obligation to regularise under it
  • Whether contempt proceedings can be maintained in the absence of a clear, specific direction

Legislation cited

Subjects

civil contemptwilful disobedienceregularisation of contract labourDirect Payment SystemDepartmental Labour SystemIndustrial Disputes ActContract Labour (Regulation and Abolition) ActSupreme Court order

Judgment

642                      [2020]REPORTS
               SUPREME COURT    6 S.C.R. 642               [2020] 6 S.C.R.


A             THE WORKMEN THROUGH THE CONVENER
                    FCI LABOUR FEDERATION
                                        v.
                      RAVUTHAR DAWOOD NASEEM
B                  (Contempt Petition (Civil) No. 404 of 2019)
                                       In
                            (C.A No. 10511 of 2011)
                                 MAY 19, 2020
C      [A. M. KHANWILKAR AND DINESH MAHESHWARI, JJ.]
             Contempt of Court – When not – Abolition of contract labour
      system – Workers employed at depots of respondent-Corporation
      as contract labourers sought regularisation – Issue referred for
      adjudication – Pending references, an understanding arrived at
D     between the parties recorded in minutes of meeting dated.12.04.1996
      – Industrial Tribunal held the workmen entitled to be regularised –
      Award affirmed till Supreme Court – Workers regularised under
      Direct Payment System (DPS) – Contempt petitions filed alleging
      that the direction was to regularise the workers in Departmental
      Labour System (DLS) and not in DPS – Held: To constitute civil
E
      contempt it must be established that disobedience of the order is
      wilful, deliberate and with full knowledge of consequences flowing
      therefrom– In the present case, the issue(s) referred for adjudication
      was merely for regularisation – Corporation operates four systems
      of labour, DLS is one such system of engagement – Neither the
F     relief in the references was specific for regularisation in DLS only
      nor the tribunal, the High Courts or Supreme Court was called
      upon to deal with that issue specifically – Petitioners assumed that
      DPS commenced only from 01.05.1996, whereas it is in existence
      from 1973 – It is not a new set up created by the Corporation
      pursuant to the minutes recorded on 12.04.1996 as such –
G
      Furthermore, DLS is now a dying cadre and the policy of the
      Corporation at the relevant time entailed regularisation of workmen
      only under DPS – No case made out for initiating contempt action
      against the Corporation and its Officers – Industrial Disputes Act,
      1947 – s.10(1)(d) – Contract Labour (Regulation and Abolition)
H     Act, 1970 – s.10(1) – Labour Law.
                                       642
THE WORKMEN THROUGH THE CONVENER FCI LABOUR FEDERATION                643
             v. RAVUTHAR DAWOOD NASEEM


     Words & Expressions – Departmentalisation – Meaning of –         A
Explained.
      Dismissing the contempt petitions, the Court
       HELD: 1.1 To constitute civil contempt, it must be
established that disobedience of the order is wilful, deliberate
                                                                      B
and with full knowledge of consequences flowing therefrom. Going
by the plain text, the issue(s) referred to for adjudication was
merely for regularisation. However, the point-in-issue considered
by the Tribunal coupled with the operative part of the award, it
would at best be a case of directing the respondent Corporation
to regularise and departmentalise the concerned workmen, who          C
were party to the stated References. The Corporation operates
four systems of labour. The Departmental Labour System is one
such system of engagement. The other is Direct Payment System
(DPS). The third is No-Work-No-Pay System and fourth, the Mate
System. Neither the relief in the References was specific for
                                                                      D
regularisation in Departmental Labour System only nor the
Tribunal, the Madras High Court/Kerala High Court or this Court
was called upon to deal with that issue specifically. The claim set
up by the petitioner-Union(s) was simpliciter for regularisation
of workmen who were named in the annexure(s) to the
References. The Tribunal did issue direction to regularise and        E
departmentalise those workmen. It is axiomatic that
departmentalisation could also be an engagement in a
Department, which could be a separate part or branch/section of
the whole Organisation. Departmentalisation is dividing an
organisation into different departments or structuring it in a
manner, which perform tasks according to the specialisations in       F
the organisation. It may include departments such as functional,
product, process, geographical locations, customer, divisional,
matrix, planning task force etc. As it is indisputable that the
Corporation has four systems of labour engagement including
the Direct Payment System (DPS), the petitioner-Union(s) ought        G
to have sought specific relief against the Corporation in that
regard. Significantly, the petitioners have assumed that the Direct
Payment System (DPS) commenced only from 1.5.1996, whereas
it is noticed from the decision of this Court in Workmen of the
Food Corporation of India v. M/s. Food Corporation of India that
                                                                      H
644           SUPREME COURT REPORTS                      [2020] 6 S.C.R.


A     the Direct Payment System (DPS) is in existence from 1973. It is
      not a new set up created by the Corporation pursuant to the
      minutes recorded on 12.4.1996 as such. Concededly, the subject
      References, as well as, the direction issued by the Tribunal, which
      has been upheld upto this Court is silent about the system in
      which the concerned workers have to be regularised and
B
      departmentalised. Notably, the writ petition filed before the
      Kerala High Court for implementation of the stated award also
      sought direction to regularise the concerned workmen under the
      Direct Payment System (DPS). If that be the position, it is
      unfathomable as to how the respondent Corporation can be
C     proceeded against for having committed contempt of this Court.
      [Paras 12-14][658-G-H; 659-A-H; 660-A-C]
            Workmen of the Food Corporation of India v. M/s. Food
            Corporation of India (1985) 2 SCC 136 : [1985] 2 SCR
            1065; ESI Corporation v. FCI Workers Union & Ors.
D           Decision of Supreme Court dated 19.11.2019 in C.A.
            Nos. 8841-8842/2019 – relied on.
            1.2 The issue as to regularisation of the concerned workmen
      under particular labour system had not been put in issue before
      the Tribunal and upto Supreme Court. A general direction came
E     to be issued to regularise and departmentalise them. Resultantly,
      the respondents were left with the only option to regularise the
      concerned workmen as per the extant applicable policy of the
      Organisation, under the Direct Payment System (DPS). No specific
      direction was given to the Corporation to regularise the
      concerned workmen only in the Departmental Labour System.
F     Furthermore, the Departmental Labour System is now a dying
      cadre and the policy of the Corporation at the relevant time
      entailed regularisation of such workmen only under the Direct
      Payment System (DPS). No contempt action can be initiated on
      the basis of general direction to the respondents to regularise
G     and departmentalise the concerned workmen. [Paras 17, 23][662-
      F; 664-F-G]
            Ram Kishan v. Tarun Bajaj & Ors. (2014) 16 SCC 204
            : [2014] 1 SCR 538 – relied on.
            Anil Ratan Sarkar & Ors. v. Hirak Ghosh & Ors. (2002)
H           4 SCC 21 : [2002] 2 SCR 346 – distinguished.
THE WORKMEN THROUGH THE CONVENER FCI LABOUR FEDERATION                    645
             v. RAVUTHAR DAWOOD NASEEM


      Food Corporation of India & Ors. v. West Bengal Food                A
      Corporation of India Workmen’s Union (2018) 9 SCC
      469 – held inapplicable.
      State of Bihar & Ors. v. Bihar Secondary Teachers
      Struggle Committee, Munger & Ors. (2019) 8 SCALE
      124; Steel Authority of India Ltd. & Ors. v. National               B
      Union Waterfront Workers & Ors. (2001) 7 SCC 1 :
      [2001] 2 Suppl. SCR 343; Dinesh Kumar Gupta v.
      United India Insurance Company Limited & Ors. (2010)
      12 SCC 770 : [2010] 13 SCR 599; Bihar State
      Government Secondary School Teachers Association v.
      Ashok Kumar Sinha & Ors. (2014) 7 SCC 416 : [2014]                  C
      7 SCR 371; Dineshan K.K. v. R.K. Singh & Anr. (2014)
      16 SCC 88 : [2014] 3 SCR 667 – referred to.
                       Case Law Reference
[1985] 2 SCR 1065                  relied on             Para 9           D
(2019) 8 SCALE 124                 referred to           Para 9
[2001] 2 Suppl. SCR 343            referred to           Para 9
[2010] 13 SCR 599                  referred to           Para 9
[2014] 7 SCR 371                   referred to           Para 9           E
[2014] 3 SCR 667                   referred to           Para 9
(2018) 9 SCC 469                   held inapplicable     Para 10
[2002] 2 SCR 346                   distinguished         Para 10
[2014] 1 SCR 538                   relied on             Para 12          F
       INHERENT JURISDICTION: Contempt Petition No. 404 of 2019
in Civil Appeal No. 10511 of 2011.
      Petition against the non-compliance of the Order dated 20.08.2018
passed in Civil Appeal No. 10511 of 2011 by this Hon'ble Court.
                                                                          G
      With
      Contempt Petition (Civil) Nos. 508 of 2019, 507 of 2019, 394 of
2020, 754 of 2019, 1073 of 2019.

                                                                          H
646              SUPREME COURT REPORTS                         [2020] 6 S.C.R.


A           Rana Mukherjee, V. Prakash, Colin Gonsalves, Brijender Chahar,
      Mukul Rohatgi, V. Giri, Sr. Advs., R. R. Kumar, Ms. Kunika Sharma,
      Swetank Shantanu, C. Paramasivam, R. Ganesh Babu, Rakesh K.
      Sharma, Sudarsh Menon, Ram Gupta, Ronak Karanpuria, Vishwa Pal
      Singh, Abhay Kumar, Kumar Milind, Vineet Kr. Singh, Kumar Kashyap,
      Sumit Kumar, Ms. Kumari Supriya, Hemant Kumar, Arumugan, Ram
B
      Gupta, Advs. for the appearing parties.
             The Judgment of the Court was delivered by
             A. M. KHANWILKAR, J.
             1. I.A. for permission to file the contempt petition(s) is allowed.
C
              2. These contempt petitions except Contempt Petition (Civil) No.
      754/2019 emanate from the common judgment and order of this Court
      dated 20.8.2018 in Civil Appeal Nos. 10499/2011 and 10511/2011.
      Contempt Petition (Civil) No. 754/2019, however, arises from a separate
      judgment and order of this Court on the same subject matter and date
D     (i.e. 20.8.2018) in Civil Appeal No. 7961/2014.
             3. The grievance in these petitions is about non-compliance of
      direction given to the respondent-Food Corporation of India1 to regularise
      and departmentalise the concerned workers who had initiated industrial
      disputes bearing I.D. No. 39/1992 and I.D. No. 55/1993 before the
E     Industrial Tribunal2, Tamil Nadu, Chennai under Section 10(1)(d) of the
      Industrial Disputes Act, 19473. The concerned employees were employed
      at Depots of the Corporation in the Southern Zone of India including the
      States of Kerala, Andhra Pradesh, Karnataka and Tamil Nadu, as daily-
      rated labour or casual labour through contract labour cooperative societies
F     or private contractors. They were working in that capacity for quite
      some time and in some cases, for around 15 to 20 years, and were
      performing similar work as the regular employees of the Corporation.
      In I.D. No. 39/1992, following issue was referred to for adjudication: -
             “Whether the action of the management of Food Corporation of
             India, in denying to regularise 955 contract labourers engaged
G
             by management of Food Corporation of India Godown, Avadi
             through TVK Cooperative Society in respect of names as given

      1
        For short, “the Corporation”
      2
        For short, “the Tribunal”
      3
        For short, “the 1947 Act”
H
THE WORKMEN THROUGH THE CONVENER FCI LABOUR FEDERATION                        647
    v. RAVUTHAR DAWOOD NASEEM [A. M. KHANWILKAR, J.]


      in the Annexure is justified? If not to what relief they are entitled   A
      to?”
                                                     (emphasis supplied)
      In I.D. No. 55/1993, reference was made for adjudication of the
following issue: -
                                                                              B
      “Whether the services of workmen employed in different Food
      Storage depots in Food Corporation of India in the South where
      notifications have been issued prohibiting engagement of contract
      labourers under Section 10(1) of CL (R and A) Act are entitled to
      be regularised and if so, from which date?”
                                                                              C
                                                     (emphasis supplied)
      During the pendency of these References, an understanding was
arrived at between the parties, as recorded in the Minutes of Meeting
dated 12.4.1996, the relevant extract whereof is as under:-
      “The Charter of demand submitted by the FCI Workers Union               D
      vide their letter dated 12.2.96 was taken do for discussions and
      decision taken on each of their demands are recorded as under: -
      1. Department allegation of workers and payment of documental
      wages to the workers in all FCI depots as recommended upto
      [sic] the Hon’ble Supreme Court of India, and especially in South       E
      Sons where the Central Government have notified prohibiting
      employment of contract labour long before considering the food
      handling work as perennial in nature (both the food-handling work
      is still being done in all South Depots) by Labour Cooperative
      Society as Contractors as well as the Hon’ble High Courts of
                                                                              F
      Kerala and Karnataka have also directed for departmentisation
      of FCI workers in F.S. Depots. The Union demanded
      departmentalization of labour in all the notified depots on the plea
      that there are other notified depots where departmentalisation has
      already been done since 1991. As such, these depots may also be
      extended the benefit of departmentalisation. After having               G
      protracted discussions, keeping in view the orders of the Hon’ble
      Karnataka High Court and the Supreme Court and the scheme
      submitted for decision between the Karnataka High Court,
      following decisions were taken: -
                                                                              H
648         SUPREME COURT REPORTS                         [2020] 6 S.C.R.


A     (i)     It was decided that in all remaining, notified FCIs own
              Depots which were running under the Labour
              Cooperative Societies, or otherwise may be brought
              under Direct [sic] Payment System with all the benefits
              under the Direct Payment Scheme w.e.f. 1st May, 1996.
B     (ii)    It was also decided that proposal for
              departmentalization will be sent to the government
              by 31 st July, 1996 and till decision from the
              Government or from the concerned courts Direct
              payment System will continue.
C     (iii)   It was agreed that in the other notified depots of FCI where
              labour Cooperative Societies are not functioning, the labour
              strength will be assessed on the basis of the formula to be
              evolved in consultation with FCI Workers Union as the Union
              had mentioned that the formula of assessment of labour
              being adopted by diving the workload i.e. receipt and issue
D             by 365 is not realistic. The Union suggested that the workload
              of receipt and issue as well as all operations performed in
              the depot should be taken into account and the same should
              be divided by 240 days instead of 365. As regards labour
              Cooperative Societies, it was decided that the workers
E             already working there during last 3 years and who had
              worked for nine out of 12 months in the last year and whose
              PF deductions are being made will be extended benefit of
              Direct Payment System workers. However the actual
              requirement of labour for these depots will be assessed as
              per the norms agreed to with the Union and utilisation of
F             surplus labour including employment elsewhere will be
              resorted to by the management in consultation with the
              Union. Regarding norms, the Union expressed resentment
              about adopting 365 days a year which management agreed
              to look into and take a final view.
G     (iv)    As regards notified depots under CWC, separate
              discussions will be held for a final decision.
                                                 (Action Manager (IR-L)
      2. Immediate departmentalisation of all the workers of FCI
      Depots under Direct Payment System, Guaranteed Wages
H
THE WORKMEN THROUGH THE CONVENER FCI LABOUR FEDERATION                       649
    v. RAVUTHAR DAWOOD NASEEM [A. M. KHANWILKAR, J.]


      System, No work no pay System and B-Category system.                   A
      It was agreed that the system as in existence will continue
      [sic].”
                                                     (emphasis supplied)
       A list of Depots having Departmental Labour System in March,
2000 is annexed as annexure P-3 in the reply affidavit filed by the          B
petitioner to the counter affidavit of the respondent in Contempt Petition
(Civil) No. 404/2019.
        4. In I.D. No. 39/1992, after due consideration of the rival
submissions, the Tribunal vide award dated 19.12.1997, noted the point
for its consideration as follows: -                                          C

      “7. The point for our consideration is: whether the action of the
      management of FCI (respondent) in denying to regularise 955
      contract labourers engaged by the management of FCI godown
      at Avadi through Thiru VI. Ka. Labour Contract Cooperative
      Society is justified.”                                                 D
       After detailed analysis and reference to other decisions between
the workmen and the Corporation, the Tribunal came to issue the following
direction: -
      “14. In the result award is passed holding that action of the
                                                                             E
      respondent management in denying to regularise the 955 contract
      labourers engaged through Thiru. VI. Ka. Cooperative Society
      as not justified and the management is directed to regularise
      and departmentalise these 955 workmen from the date of
      notification Ex. W 4 with regard to Avadi depot i.e. 28.02.1990
      with all attendant benefits. No Costs.”                                F
                                                     (emphasis supplied)
      5. Similarly, the Tribunal while disposing of I.D. No. 55/1993 vide
award dated 29.7.1998, issued following directions: -
      “… Therefore, the services of workmen employed in different            G
      food storage depots of the Food Corporation of India in South
      India where notification have been issued prohibiting engagement
      of contract labour u/s 10(1) of the Contract Labour (Regulation
      and Abolition) Act, are entitled to be regularised, from the date
      of notification concerning each depot. Award passed. No costs”.
                                                                             H
                                                     (emphasis supplied)
650                SUPREME COURT REPORTS                         [2020] 6 S.C.R.


A            The aforementioned awards were subject matter of challenge
      before the High Court of Judicature at Madras4 in Writ Petition Nos.
      11416/1999 and 12416/1999. The learned single Judge vide judgment
      and order dated 14.8.2003, dismissed the writ petitions on the finding
      that the awards passed by the Tribunal were just and proper, and thus
      affirmed the same.
B
             6. Feeling aggrieved, the Corporation carried the matter before
      the Division Bench of the Madras High Court by way of Writ Appeal
      Nos. 3382/2003 and 3383/2003. The Division Bench dismissed the said
      writ appeals vide judgment and order dated 13.12.2006 having agreed
      with the conclusion arrived at by the Tribunal in passing awards and the
C     reasoning of the learned single Judge in confirming the same. The
      Corporation filed special leave petitions before this Court, which were
      converted into Civil Appeal Nos. 10499/2011 and 10511/2011. Both
      appeals have been dismissed by a common judgment and order dated
      20.8.2018 upholding the view taken by the Tribunal and the Madras
D     High Court.
             7. Contempt Petition (Civil) No. 754/2019 is in reference to a
      separate judgment and order of the same date (i.e. 20.8.2018) passed
      by this Court in Civil Appeal No. 7961/2014 in respect of writ petition
      instituted by the contempt petitioners (Thrissur Jilla General Mazdoor
E     Sangh and others) before the High Court of Kerala at Ernakulam5 being
      Writ Petition No. 14786/2013, praying for the following reliefs: -
                “(i) A writ of mandamus directing the 5th respondent to take
                effective steps for implementing Exhibit P1;
                (ii) Declare that the DPS workers in the depot of FCI at
F               Mulakunnathukavu, Thrissur, are entitled to be regularised and
                are entitled to the pay and other service benefits of departmental
                labourer…”
             The stated writ petition was dismissed by the learned single Judge
      vide judgment and order dated 4.9.2013 on the finding that there was
G     substantial compliance of directions issued by the Tribunal. It also noted
      that there was no indication in the award that the workers were required
      to be engaged in the godowns in Kerala, departmentally. Feeling aggrieved,
      the contempt petitioners filed Writ Appeal No. 1746/2013 before the
      4
          For short, “the Madras High Court”
      5
          For short, “the Kerala High Court”
H
THE WORKMEN THROUGH THE CONVENER FCI LABOUR FEDERATION                       651
    v. RAVUTHAR DAWOOD NASEEM [A. M. KHANWILKAR, J.]


Kerala High Court, which came to be allowed in terms of the directions       A
issued in O.P. No. 14360/1999 as affirmed in Writ Appeal No. 2491/
2009. The relied upon order in O.P. No. 14360/1999 was passed by the
Kerala High Court in a petition filed by Head Load Labour Congress for
implementation of the award passed by the Tribunal. The reliefs claimed
in the said writ petition read thus: -
                                                                             B
      “a) a writ of mandamus directing the 2nd respondent to take
      effective steps for implementing Exhibit P1.
      b) hold that all godowns and depots of FCI, especially in Kerala,
      the workers should be regularised and brought under direct
      payment system forthwith.”                                             C
                                                     (emphasis supplied)
       The above writ petition came to be allowed vide judgment and
order dated 22.9.2009. Feeling aggrieved, the respondent-Corporation
had filed Writ Appeal No. 2491/2009 before the Kerala High Court,
which was dismissed vide judgment and order dated 15.2.2010. Against         D
the said decision, the Corporation had filed special leave petition before
this Court, which was converted into Civil Appeal No. 10530/2011 and
came to be dismissed by a common judgment and order dated 20.8.2018
of this Court alongwith Civil Appeal No. 7961/2014, referred to above.
        8. Despite the dismissal of the appeals and confirmation of the      E
award passed by the Tribunal including the writ issued by the Kerala
High Court to implement the award, the respondent Corporation took no
initiative, which prompted the contempt petitioners to approach this Court
for initiating contempt action against the respondent Corporation and its
officers.                                                                    F
       9. The respondent Corporation would contend that it has already
regularised the eligible employees, who were party to the two References
mentioned above, under Direct Payment System (DPS) and nothing
further was required to be done. It is urged that in both the References,
the claim was restricted to regularisation of the concerned employees
                                                                             G
after abolition of the contract labour system. There was no prayer for
absorbing the concerned employees under any specific system of regular
labour prevailing in the Corporation. The Corporation has four systems
of labour engagement, namely, (i) Departmental Labour System, (ii) Direct
Payment System, (iii) No-Work-No-Pay System and (iv) Mate System.
The workmen or the Unions concerned took no steps to amend the               H
652                 SUPREME COURT REPORTS                             [2020] 6 S.C.R.


A     Reference even after the agreement arrived at in the meeting dated
      12.4.1996 to ask for specific relief of regularisation under a particular
      system. In absence of any specific relief, the respondent regularised the
      workers under Direct Payment System (DPS) during pendency of the
      References. The existence of Direct Payment System (DPS) since 1973
      is indisputable. It has been noted in the decision of this Court in Workmen
B
      of the Food Corporation of India vs. M/s. Food Corporation of India6
      and recently in ESI Corporation vs. FCI Workers Union & Ors.7. It is
      also urged that since 1991, no contract worker has been regularised
      under the Departmental Labour System, although some Direct Payment
      System (DPS) workers and ‘B category’ workers were brought under
C     Departmental Labour System in 1994 and 1997 pursuant to specific
      awards/Court orders followed by settlements during pendency of appeals
      filed by the Corporation. The recent policy guidelines issued by the
      Government of India vide letter dated 11.11.2013 unambiguously predicate
      that the contract workers be regularised only under No-Work-No-Pay
      System. It is the case of the Corporation that out of 1800 Depots operated
D
      by the Corporation, more than 1500 Depots were operating under contract
      labour system, and provided employment to more than one lakh labour,
      out of which 50% of the total regular labour is employed under the Direct
      Payment System (DPS). It has produced the Chart in regard to regular
      labour as on 31.12.2019 under three different categories as under: -
E
                    Labour Type              Number of Depots        Men in Position
           Departmental Labour System 56                            10860
           (DLS)
           Direct    Payment      System 155                        19427
           (DPS)
F
           No Work No Pay (NWNP)           85                       6427
                       Total               295                      36714

                                                                   (emphasis supplied)
            It is not as if only the workmen involved in two References have
G     been regularised in Direct Payment System (DPS). There are 19427
      workmen in this system as against 10860 under Departmental Labour
      System. It is urged that the service benefits under the Direct Payment
      System (DPS) are indicative of the fact that it is a regular engagement
      6
          (1985) 2 SCC 136
      7
H         Civil Appeal Nos. 8841-8842/2019 decided on 19.11.2019
THE WORKMEN THROUGH THE CONVENER FCI LABOUR FEDERATION                       653
    v. RAVUTHAR DAWOOD NASEEM [A. M. KHANWILKAR, J.]


by the Corporation and not on contract or casual basis. The service          A
benefits under the Direct Payment System (DPS) are outlined as follows:-
      “Service Benefits under DPS:
      The main service benefits of the DPS workers are highlighted as
      under:
                                                                             B
      i. DPS workers are governed by the Model standing Orders under
      Industrial Employment Standing Orders Act, 1946.
      ii.DPS workers are permanent and regular and thus,
      departmentalised employees of FCI and enjoys security of tenure
      as superannuation age of a DPS worker is 60 years.                     C
      iii. The Legal Heirs of a DPS worker are eligible for Compassionate
      Appointment on death as per Govt. of India policy circulated vide
      FCI Hqrs. Circular no. 4/2003 dated 04/13.03.2003.
      iv. The workers are paid monthly wages directly by the corporation
      subject to assured minimum guaranteed wages declared by Central        D
      Govt. Thus, a DPS worker gets higher monthly wages on piece
      rate basis when volume of work handled by him is high but when
      there is no work or adequate work at the depot during a particular
      month, the DPS workers is assured of minimum guaranteed wages.
      v. DPS worker is eligible for paid weekly off, 06 holidays including   E
      03 national holidays, 10 sick leave per year (accumulation upto 40
      days), 15 days “leave without pay” per annum, CPF under FCI
      CPF scheme, Ex-gratie in lieu of Bonus as per the provision of
      payment of Bonus Act.
      vi. DPS worker is eligible for productivity linked incentive as        F
      declared by FCI Hqrs. from time to time.
      vii. DPS worker is eligible for OTA admissible as per shops and
      establishment act or 1.1 of hourly earnings where exemption from
      shops and establishment act has been granted by the appropriate
      authority or said act does not apply.                                  G
      viii. DPS worker is eligible for festival advance as per FCI
      instructions applicable from time to time.
      ix. DPS worker is eligible for gratuity as per payment of gratuity
      act, 1972 from the date of notification.
                                                                             H
      x. DPS worker is eligible for workmen’s compensation as per
      workmen’s compensation as per workmen’s compensation act.
654                SUPREME COURT REPORTS                           [2020] 6 S.C.R.


A               xi. DPS worker is eligible for Benevolent Fund as per the scheme
                of FCI.
                xii. DPS worker is eligible for transfer grant/packing allowance
                and joining period on their transfer within and outside region/zone
                as per the instructions of the corporation issued from time to time.”
B            Further, the Corporation has now been advised to declare the
      Departmental Labour System as a dying cadre. The same has been so
      notified by the Government of India recently on 3.1.2020 in light of
      recommendation made by the High-Level Committee constituted by the
      Government of India in August, 2014. Additionally, it was necessitated
C     because of the directions given by the High Court of Judicature at Bombay,
      Bench at Nagpur in a suo moto registered PIL No. 84/2014 vide judgment
      and order dated 20.11.2015, which has been confirmed by this
      Court vide judgment and order dated 31.7.2017 passed in SLP(C)
      No. 19218/2016 and connected matters. The respondent has placed
      reliance on State of Bihar & Ors. vs. Bihar Secondary Teachers
D     Struggle Committee, Munger & Ors.8, wherein it has been held that
      when administration adopts an integrated policy and if by process of
      judicial intervention, any directions are issued, it could create tremendous
      imbalance and cause great strain on budgetary resources. As a matter
      of fact, the Constitution Bench of this Court in Steel Authority of India
E     Ltd. & Ors. vs. National Union Waterfront Workers & Ors. 9 has held
      that the contract labour need not be absorbed after abolition of contract
      labour system. Be that as it may, the Corporation is not a profit-making
      organisation. It has been established under the provisions of the Food
      Corporations Act, 1964 and its primary duty is to undertake purchase,
      storage, movement, transport, distribution and sale of food grains and
F     other food stuff. It is an agency to implement food policy of the
      Government of India, which envisages protection of farmers by ensuring
      remunerative price (Minimum Support Price) for their produce and
      simultaneously safeguarding the interests of poor consumers by providing
      them food grains at highly subsidised rates under National Food Security
G     Act, 2013 and other welfare schemes. The food subsidy of more than
      Rs.1.50 lakh crore per annum is extended. It is stated that if all the
      regular workers in the Corporation are brought under the Departmental
      Labour System, there will be recurring liability on public exchequer to
      8
          (2019) 8 SCALE 124
      9
          (2001) 7 SCC 1 (Constitution Bench)
H
THE WORKMEN THROUGH THE CONVENER FCI LABOUR FEDERATION                          655
    v. RAVUTHAR DAWOOD NASEEM [A. M. KHANWILKAR, J.]


the tune of Rs.3,000 crore per annum and if arrears are also given with         A
effect from 2003, there will be additional financial burden of more than
Rs.40,000 crore. It is urged that the issue regarding the parity of wages
between the employees under the Direct Payment System (DPS) and
those working under the Departmental Labour System is pending
adjudication in I.D. No. 1/2003 before the National Industrial Tribunal,
                                                                                B
Mumbai. Finally, it is urged that in absence of any clear directions in
Reference proceedings, as per the extant policy, the respondent could
have regularised the concerned workers only under the Direct Payment
System (DPS) existing since 1973 as part of its organisational structure.
It is, therefore, urged that it is certainly not a case of disobedience, much
less wilful or deliberate disobedience of the order passed by this Court.       C
Reliance is placed on Dinesh Kumar Gupta vs. United India Insurance
Company Limited & Ors.10, Bihar State Government Secondary
School Teachers Association vs. Ashok Kumar Sinha & Ors. 11and
Dineshan K.K. vs. R.K. Singh & Anr.12. The respondents pray that
the show cause notice(s) be discharged.
                                                                                D
       10. The petitioners, however, submit that the direction given by
the Tribunal and upheld by the Madras High Court including by this
Court is unambiguous. It mandates the respondent Corporation to
regularise the concerned workers in the Departmental Labour System,
as has been done in other cases adverted to by the Tribunal and the
Madras High Court in the respective award/judgment. The petitioners             E
assert that the Direct Payment System (DPS) was implemented on
1.5.1996, whereas the dispute had been raised by the workers Union/
workers in 1992 and 1993. The relief granted by the Tribunal relates
back to the date of initiation of Reference proceedings and at that time,
in all other cases, regularisation of contract workers after abolition of       F
contract labour system, was done under the Departmental Labour system.
The regularisation of workers under the Direct Payment System (DPS)
would be denial of their claim for being regularised under the Departmental
Labour system. If such argument of the respondent Corporation was to
be acceded to and that too in contempt proceedings, it would be re-
writing the award of the Tribunal which had become final until this Court.      G
For, the Tribunal in its award dated 19.12.1997 in I.D. No. 39/1992 had
clearly directed the respondent Corporation to regularise and
10
   (2010) 12 SCC 770 (paragraph 17)
11
   (2014) 7 SCC 416 (paragraph 24)
12
   (2014) 16 SCC 88 (paragraphs 14 and 15)                                      H
656             SUPREME COURT REPORTS                            [2020] 6 S.C.R.


A     departmentalise the concerned workers with effect from the date of
      notification of abolition of contract labour system. It is too late in the day
      for the Corporation to contend to the contrary. It is urged that there are
      material differences between the service conditions under the
      Departmental Labour System and the Direct Payment System (DPS).
      The petitioners have relied on the decision of this Court in Food
B
      Corporation of India & Ors. vs. West Bengal Food Corporation of
      India Workmen’s Union13 and the order passed in contempt petition14
      in that matter, to urge that the Corporation was directed to regularise the
      concerned workers under the Departmental Labour system. According
      to the petitioners, the Corporation is under obligation to extend same
C     relief to these petitioners and implement the direction given by the Tribunal
      and upheld by the High Court, as well as, this Court, to regularise and
      departmentalise the concerned workers under the Departmental Labour
      system only. Reliance is placed on Anil Ratan Sarkar & Ors. vs.
      Hirak Ghosh & Ors.15 to contend that the Corporation cannot be
      permitted to raise a new plea, so as to frustrate the decision of the
D
      Tribunal and more particularly, of this Court, even after dismissal of the
      appeal preferred by the respondent.
             11. We have heard Mr. Rana Mukherjee, learned senior counsel
      for the petitioners in Contempt Petition (Civil) Nos. 508/2019 and 507/
      2019, Mr. V. Prakash, learned senior counsel for the petitioners in
E     Contempt Petition (Civil) No……………./2020 (@ Diary No. 13740/
      2019), Mr. Colin Gonsalves, learned senior counsel for the petitioners in
      Contempt Petition (Civil) No. 754/2019, Mr. Brijender Chahar, learned
      senior counsel for the petitioners in Contempt Petition (Civil) Nos. 404/
      2019 and 1073/2019, Mr. Mukul Rohatgi, learned senior counsel for the
F     respondents in Contempt Petition (Civil) No. 754/2019, Mr. V. Giri, learned
      senior counsel for the respondents in Contempt Petition (Civil) No. 404/
      2019 and Mr. Sudarsh Menon, learned counsel for the applicant in I.A.
      No. 167580/2019 in Contempt Petition (Civil) No. 404/2019.
              12. Before we proceed to analyse the stand taken by the parties,
G     it is apposite to advert to the exposition of this Court in Ram Kishan vs.
      Tarun Bajaj & Ors.16, wherein the Court has delineated the contours


      13
         (2018) 9 SCC 469
      14
         Contempt Petition (Civil) No. 809/2018
      15
H        (2002) 4 SCC 21 (paragraphs 20 to 22)
 THE WORKMEN THROUGH THE CONVENER FCI LABOUR FEDERATION                       657
     v. RAVUTHAR DAWOOD NASEEM [A. M. KHANWILKAR, J.]


for initiating civil contempt action. In paragraphs 11, 12 and 15 of the      A
reported decision, the Court observed thus: -
          “11. The contempt jurisdiction conferred on to the law courts
          power to punish an offender for his wilful disobedience/
          contumacious conduct or obstruction to the majesty of law, for
          the reason that respect and authority commanded by the courts       B
          of law are the greatest guarantee to an ordinary citizen that his
          rights shall be protected and the entire democratic fabric of the
          society will crumble down if the respect of the judiciary is
          undermined. Undoubtedly, the contempt jurisdiction is a
          powerful weapon in the hands of the courts of law but that
          by itself operates as a string of caution and unless, thus,         C
          otherwise satisfied beyond reasonable doubt, it would
          neither be fair nor reasonable for the law courts to exercise
          jurisdiction under the Act. The proceedings are quasi-
          criminal in nature, and therefore, standard of proof required
          in these proceedings is beyond all reasonable doubt. It             D
          would rather be hazardous to impose sentence for contempt
          on the authorities in exercise of the contempt jurisdiction
          on mere probabilities. (Vide V.G. Nigam v. Kedar Nath Gupta,
          (1992) 4 SCC 697, Chhotu Ram v. Urvashi Gulati, (2001) 7 SCC
          530, Anil Ratan Sarkar v. Hirak Ghosh, (2002) 4 SCC 21, Bank
          of Baroda v. Sadruddin Hasan Daya, (2004) 1 SCC                     E
          360, Sahdeo v. State of U.P., (2010) 3 SCC 705 and National
          Fertilizers Ltd. v. Tuncay Alankus, (2013) 9 SCC 600.
          12. Thus, in order to punish a contemnor, it has to be
          established that disobedience of the order is “wilful”. The
          word “wilful” introduces a mental element and hence,                F
          requires looking into the mind of a person/contemnor by
          gauging his actions, which is an indication of one’s state of
          mind. “Wilful” means knowingly intentional, conscious,
          calculated and deliberate with full knowledge of
          consequences flowing therefrom. It excludes casual, accidental,     G
          bona fide or unintentional acts or genuine inability. Wilful acts
          does not encompass involuntarily or negligent actions. The act
          has to be done with a “bad purpose or without justifiable excuse
          or stubbornly, obstinately or perversely”. Wilful act is to be
16
     (2014) 16 SCC 204                                                        H
658            SUPREME COURT REPORTS                          [2020] 6 S.C.R.


A           distinguished from an act done carelessly, thoughtlessly, heedlessly
            or inadvertently. It does not include any act done negligently or
            involuntarily. The deliberate conduct of a person means that he
            knows what he is doing and intends to do the same. Therefore,
            there has to be a calculated action with evil motive on his
            part. Even if there is a disobedience of an order, but such
B
            disobedience is the result of some compelling
            circumstances under which it was not possible for the
            contemnor to comply with the order, the contemnor cannot
            be punished. “Committal or sequestration will not be
            ordered unless contempt involves a degree of default or
C           misconduct.” (Vide S. Sundaram Pillai v. V.R. Pattabiraman,
            (1985) 1 SCC 591, Rakapalli Raja Ram Gopala
            Rao v. Naragani Govinda Sehararao, (1989) 4 SCC 255, Niaz
            Mohammad v. State of Haryana, (1994) 6 SCC 332, Chordia
            Automobiles v. S. Moosa, (2000) 3 SCC 282, Ashok Paper
            Kamgar Union v. Dharam Godha, (2003) 11 SCC 1, State of
D
            Orissa v. Mohd. Illiyas, (2006) 1 SCC 275 and Uniworth Textiles
            Ltd. v. CCE, (2013) 9 SCC 753.
                           xxx                  xxx              xxx
            15. It is well-settled principle of law that if two
E           interpretations are possible, and if the action is not
            contumacious, a contempt proceeding would not be
            maintainable. The effect and purport of the order is to be taken
            into consideration and the same must be read in its entirety.
            Therefore, the element of willingness is an indispensable
            requirement to bring home the charge within the meaning of the
F           Act. [See Sushila Raje Holkar v. Anil Kak, (2008) 14 SCC 392
            and Three Cheers Entertainment (P) Ltd. v. CESC Ltd., (2008)
            16 SCC 592.”
                                                           (emphasis supplied)

G            Suffice it to observe that to constitute civil contempt, it must be
      established that disobedience of the order is wilful, deliberate and with
      full knowledge of consequences flowing therefrom. For reaching that
      conclusion, it is essential to notice the scope of References before the
      Tribunal and direction issued therein, which has been affirmed upto this
      Court. Going by the plain text, the issue(s) referred to for adjudication
H
THE WORKMEN THROUGH THE CONVENER FCI LABOUR FEDERATION                           659
    v. RAVUTHAR DAWOOD NASEEM [A. M. KHANWILKAR, J.]


(reproduced in paragraph 3 above) is merely for regularisation. However,         A
the point-in-issue considered by the Tribunal coupled with the operative
part of the award (which has been reproduced in the earlier part of this
judgment), it would at best be a case of directing the respondent
Corporation to regularise and departmentalise the concerned workmen,
who were party to the stated References.
                                                                                 B
        13. As noted earlier, the Corporation operates four systems of
labour. The Departmental Labour System is one such system of
engagement. The other is Direct Payment System (DPS). The third is
No-Work-No-Pay System and fourth, the Mate System. Neither the
relief in the References was specific for regularisation in Departmental
Labour System only nor the Tribunal, the Madras High Court/Kerala                C
High Court or this Court was called upon to deal with that issue specifically.
The claim set up by the petitioner-Union(s) was simpliciter for
regularisation of workmen who were named in the annexure(s) to the
References. The Tribunal did issue direction to regularise and
departmentalise those workmen. It is axiomatic that departmentalisation          D
could also be an engagement in a Department, which could be a separate
part or branch/section of the whole Organisation. Departmentalisation
is dividing an organisation into different departments or structuring it in a
manner, which perform tasks according to the specialisations in the
organisation. It may include departments such as functional, product,
process, geographical locations, customer, divisional, matrix, planning task     E
force etc.
       14. As it is indisputable that the Corporation has four systems of
labour engagement including the Direct Payment System (DPS), the
petitioner-Union(s) ought to have sought specific relief against the
Corporation in that regard. Significantly, the petitioners have assumed          F
that the Direct Payment System (DPS) commenced only from 1.5.1996,
whereas it is noticed from the decision of this Court in Workmen of the
Food Corporation of India (supra) that the Direct Payment System
(DPS) is in existence from 1973. It is not a new set up created by the
Corporation pursuant to the minutes recorded on 12.4.1996 as such.               G
Concededly, the subject References, as well as, the direction issued by
the Tribunal, which has been upheld upto this Court is silent about the
system in which the concerned workers have to be regularised and
departmentalised. It is incomprehensible as to how it would be a case of
disobedience, much less wilful disobedience, so as to entail in contemptuous
                                                                                 H
660             SUPREME COURT REPORTS                            [2020] 6 S.C.R.


A     conduct of the concerned officers of the Corporation especially when
      the eligible enlisted workers have already been regularised under the
      Direct Payment System (DPS) as per the applicable policy of 1991.
      Notably, the writ petition filed before the Kerala High Court for
      implementation of the stated award also sought direction (reproduced in
      paragraph 7 above) to regularise the concerned workmen under the
B
      Direct Payment System (DPS). If that be the position, it is unfathomable
      as to how the respondent Corporation can be proceeded against for
      having committed contempt of this Court.
              15. The argument of the petitioners, however, is that the awards
      passed by the Tribunal, as well as, the judgments of the Madras High
C     Court/Kerala High Court and this Court may have to be read as a whole
      and if so read, it would only mean that the direction given to the respondent
      Corporation was to regularise and departmentalise all the concerned
      workmen on the same terms as done in other cases referred to in the
      concerned judgment. To buttress this submission, reliance is placed on
D     the award of the Tribunal, dated 19.12.1997, wherein reference is made
      to cases of regularisation in 1991 and as back as in 1982. In the relied
      upon cases, the Tribunal did not advert to the policy of the respondent
      Corporation to engage the concerned employees after abolition of the
      contract labour system only under the Direct Payment System (DPS)
      and which was being strictly adhered to since 1991. Pertinently, there
E     was specific direction by the Tribunal/Court in those cases to regularise
      the concerned workmen under the Departmental Labour System, which
      is not so in the present case.
             16. Indeed, the award dated 19.12.1997 makes extensive reference
      to the previous judgment of the Kerala High Court. In that decision,
F     while issuing direction to the Corporation, it was made clear that the
      absorption of the concerned workmen would be governed exclusively
      by the terms and conditions prescribed by the Corporation for its own
      regular employees and the Corporation shall have all the rights such as
      retrenchment. It was further directed that the process of absorption
G     must be in accordance with the provisions of concerned labour and
      industrial law. Be that as it may, in the present case, neither any discussion
      is noticed about the efficacy of policy of the Corporation effective since
      1991 regarding regularising the concerned workmen after abolition of
      contract labour system only under the Direct Payment System (DPS)
      nor a clear direction has been given by the Tribunal to the respondent
H
THE WORKMEN THROUGH THE CONVENER FCI LABOUR FEDERATION                         661
    v. RAVUTHAR DAWOOD NASEEM [A. M. KHANWILKAR, J.]


Corporation to regularise the concerned workmen only under the                 A
Departmental Labour System. Similarly, the learned single Judge has
merely upheld the direction as given by the Tribunal. Indeed, the
impression gathered from the discussion in the judgment of the learned
single Judge does indicate that the Corporation being an instrumentality
of the State cannot be heard to discriminate between its different
                                                                               B
employees working at different Depots. As noted earlier, it is not as if
the workmen involved in subject References alone were being considered
for regularisation in the Direct Payment System (DPS). There are 19427
others who have been so appointed and working as on 31.12.2019.
Moreover, those who were working as contract labour engaged through
cooperative societies or private contractors came to be regularised in         C
the Direct Payment System (DPS) as per the policy of 1991. The fact
remains that even the learned single Judge had not issued specific
direction to the respondent Corporation to regularise the concerned
workmen under the Departmental Labour System and not under the
Direct Payment System (DPS) as such. Similarly, the Division Bench
                                                                               D
proceeded to consider the matter as to whether the direction issued by
the Tribunal is acceptable and whether the learned single Judge was
right in affirming the said direction. In examining that question, the
Division Bench, amongst others, noted as follows: -
      “21. As rightly pointed out by the learned Judge, except the
      godowns/depots in Tamil Nadu, the Labourers engaged in similar           E
      capacity in other parts of the country have been departmentalised
      or regularised. As a matter of fact, even in this State, in respect of
      Egmore and port godowns of FCI, the workers have been
      departmentalised. We already mentioned that Notifications of the
      Government of India regularising/departmentalising the workers’          F
      issue in respect of other States, were placed before the Tribunal.
      As rightly pointed out by the learned Judge, inasmuch as FCI is a
      Corporation having transactions throughout India, when it thought
      fit to regularise the workers in some parts of India, particularly in
      North, they are not justified in denying such benefits to the
      workmen in the State. Inasmuch as the main argument on the               G
      side of the appellant was projected for remanding the case to the
      Tribunal as if the materials placed before it were not considered,
      in the light of the evidence let in before the Tribunal in the form of
      various orders/Notifications by the Government of India, existence
      of more work in all the godowns, Food Storage Depots of FCI              H
662            SUPREME COURT REPORTS                          [2020] 6 S.C.R.


A           and of the fact that all those acceptable materials were correctly
            appreciated by the Tribunal, we are of the view that there is no
            case for remand. As rightly pointed out by the learned Judge
            as well as correctly observed by the Tribunal, the FCI,
            which is a wing of Government of India, should be a model
            employer, more particularly, when they are having plenty
B
            of continuous work and are in need of more work Force,
            we are satisfied that both the Unions are justified in their
            demand for regularisation and for departmentalisation.
            22. Under these circumstances, we are in entire agreement
            with the conclusion arrived at by the Industrial Tribunal in
C           passing award and the reasoning of the learned single Judge
            in confirming the same. Consequently, both the Writ
            Appeals fail and are, accordingly, dismissed. No costs.…”
                                                           (emphasis supplied)
D           It is thus seen that even the Division Bench did not issue any
      specific direction to the respondent Corporation to regularise the
      concerned workmen under the Departmental Labour system and not to
      do so under the Direct Payment System (DPS) as per the policy of
      1991. This Court has merely affirmed the view taken by the Tribunal
      and the Madras High Court. More importantly, the Departmental Labour
E     System has since been notified as a dying cadre.
             17. To put it differently, the issue as to regularisation of the
      concerned workmen under particular labour system had not been put in
      issue before the Tribunal and upto this Court. A general direction came
      to be issued to regularise and departmentalise them. Resultantly, the
F     respondents were left with the only option to regularise the concerned
      workmen as per the extant applicable policy of the Organisation, under
      the Direct Payment System (DPS).
             18. Reverting to the decision of the Kerala High Court in Writ
      Petition No. 14360/1999 filed for directing implementation of the award
G     in question, the relief claimed was to regularise the concerned workmen
      under the “Direct Payment System (DPS)” forthwith. That relief was
      already acceded to by the Corporation in the minutes recorded between
      the parties dated 12.4.1996. For that reason, the Corporation did not
      participate in the Reference proceedings in I.D. No. 39/1992 and allowed
      the I.D. No. 55/1993 to proceed ex-parte. Indeed, the Corporation assailed
H
THE WORKMEN THROUGH THE CONVENER FCI LABOUR FEDERATION                        663
    v. RAVUTHAR DAWOOD NASEEM [A. M. KHANWILKAR, J.]


the awards upto this Court on the basic issue of right and entitlement of     A
the concerned workmen to be regularised. The fact whether regularisation
should be under the Departmental Labour System or the Direct Payment
System (DPS) was not put in issue at any stage including the appeal
decided by this Court. The Corporation having lost on the basic issue of
regularisation was obliged to give effect to the award as per its extant
                                                                              B
policy in that regard in force since 1991.
       19. Notably, the relief granted by the Division Bench of the Kerala
High Court in Writ Appeal No. 2491/2010 was only for regularisation in
the Direct Payment System (DPS) as prayed in the writ petition. In the
subsequent writ petition filed before the Kerala High Court being Writ
Petition No. 14786/2013, against which the appeal came to this Court          C
being Civil Appeal No. 7961/2014, the relief claimed was for regularisation
and to give all other service benefits of Departmental Labour system.
This writ petition was dismissed by the learned single Judge on the finding
that the award in question was already substantially complied with. When
the matter went up to the Division Bench by way of writ appeal being          D
Writ Appeal No. 1746/2013, the same was disposed of as per the direction
issued in the earlier writ petition being O.P. No. 14360/1999 and Writ
Appeal No. 2491/2009 referred to above. The relief granted in these
proceedings was, therefore, only regarding regularisation in the Direct
Payment System (DPS). If that be so, we fail to understand as to how
the writ petitioner(s) therein could ask for relief different than            E
regularisation under the Direct Payment System (DPS).
      20. Reliance was placed by the petitioners on the dictum in
paragraph 23 of the judgment dated 20.8.2018 in Civil Appeal Nos. 10499/
2011 and 10511/2011, which reads thus: -
                                                                              F
      “23. It was then brought to our notice that similar industrial
      reference alike the one in the present case was also made in
      relation to the FCI Branch at West Bengal and the said reference
      was answered in favour of workers’ Union. The matter was then
      taken to the High Court unsuccessfully and then carried to this
      Court at the instance of the FCI in Civil Appeal No. 7452 of 2008       G
      and the appeal was dismissed on 20.07.2017 resulting in upholding
      the award of the Industrial Tribunal. It was stated that the FCI
      then implemented the award, as is clear from the notice on
      05.10.2017, in favour of the concerned workers. Be that as it
      may, since we have upheld the impugned order in this case               H
664             SUPREME COURT REPORTS                            [2020] 6 S.C.R.


A            on the facts arising in the case at hand, we need not place
             reliance on any other matter, which was not before the High
             Court.”
                                                              (emphasis supplied)
            21. The petitioners have adverted only to the opening part of this
B     paragraph. The crucial part, in our opinion is, the latter (highlighted) part,
      wherein the Court has made it clear that the judgment relied upon was
      not being taken into account for deciding the appeal.
             22. In West Bengal Food Corporation of India Workmen’s
      Union (supra) involving a case arising from the proceedings and order
C     dated 8.3.2001 passed by the High Court of Calcutta in C.R. No. 5498
      (W) of 1991, which is extracted in the order passed by this Court, dated
      20.7.2017, the Court opined that order in the said case had directed the
      respondents to frame a scheme or to find ways and means to absorb the
      concerned workmen. That direction can have no bearing on determination
D     of the matters at hand, being contempt petitions. For the same reason,
      the subsequent orders passed in contempt petition in the said appeal will
      have no bearing on the present case. For, these petitions will have to be
      decided strictly on the basis of the awards passed in the References in
      question and the judgment of the Madras High Court/Kerala High Court
      and this Court, being contempt action.
E
             23. In the present case, as noticed earlier, no specific direction
      has been given to the Corporation to regularise the concerned workmen
      only in the Departmental Labour System. Furthermore, the Departmental
      Labour System is now a dying cadre and the policy of the Corporation at
      the relevant time entailed regularisation of such workmen only under the
F     Direct Payment System (DPS). Thus understood, no contempt action
      can be initiated on the basis of general direction to the respondents to
      regularise and departmentalise the concerned workmen. For, it is not
      possible to hold that intrinsic in the general direction was to ordain the
      respondents to regularise and departmentalise the concerned workmen
G     under the Departmental Labour System in the teeth of the extant policy
      of the Corporation in force since 1991 regarding regularisation against
      Direct Payment System (DPS).
            24. Reverting to the decision of this Court in Anil Ratan Sarkar
      (supra), it was a case in which crystal-clear direction was given to the
      management to treat the concerned employees at par with another set
H
THE WORKMEN THROUGH THE CONVENER FCI LABOUR FEDERATION                           665
    v. RAVUTHAR DAWOOD NASEEM [A. M. KHANWILKAR, J.]


of specified employees. Further, despite six rounds of litigation, the           A
management kept on taking defence of its bona fide understanding of
the situation, which came to be deprecated. Had it been a case of clear
direction by the Tribunal, the High Court or this Court, and an attempt
was made to interpret, or so to say, misinterpret, such direction, to
regularise the employees concerned under the Departmental Labour
                                                                                 B
System, and if such direction was not to be complied with by the
respondent Corporation, the situation could have been viewed differently
- being a contempt action. In the present case, it is not a moonshine
defence as was the finding recorded in the reported decision.
      25. Suffice it to observe that no case for initiating contempt action
against the respondent Corporation and its officers has been made out.           C
We need not, therefore, analyse any other aspect of the matter, which
would require rewriting of the judgments on the basis of which this
contempt action has been instituted. That cannot be countenanced in
contempt proceedings.
      26. Accordingly, these petitions fail and are dismissed. Show cause        D
notices stand discharged. Pending interlocutory applications, if any, shall
stand disposed of.


Divya Pandey                                     Contempt Petitions dismissed.
                                                                                 E




                                                                                 F




                                                                                 G




                                                                                 H


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