The Uttarakhand High Court has struck down a 31-year-old government order that banned the hiring of contract workers at the Oil and Natural Gas Corporation (ONGC) Limited.
A single-judge bench of Justice Pankaj Purohit ruled that the notification, issued by the Centre on September 8, 1994, was invalid as it was not passed after the required consultation under Section 10 of the Contract Labour (Regulation and Abolition) Act, 1970.
ONGC had challenged the order, arguing that the Central Advisory Contract Labour Board was never consulted before the ban was imposed. The corporation said the decision was based only on a subcommittee report that had inspected four of its 34 units.
The Centre defended its decision, saying the notification was issued after due process. However, the court observed that there was no proper consultation and limited scrutiny, meaning the decision lacked sufficient factual basis.
Quoting several Supreme Court judgments, the bench said that following the procedure under Section 10(2) is mandatory. Any violation of it, the court said, makes the notification invalid.
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