Karnataka High Court Directs Regularisation Of Mangalore Workers Serving Through Outsource Agency Subsequent To Order Abolishing Contract Labour

The Karnataka High Court has come to the aid of 16 contract workers employed in the water supply department of Mangalore Mahanagara Palike, and it has directed the corporation to regularise their services.

Justice S Sunil Dutt Yadav allowed the petition filed by Bhagwan Das and others and said “The order of regularization is to be passed within 60 days from the date of receipt of copy of this order.”

The petitioner had approached the court seeking to set aside the order of the Deputy Commissioner dated 12.12.2019, whereby the petitioner's service is not regularised.

The petitioners claimed that they worked as contract employees, working as valve men and pump operators for about 28 years. They have been performing work of a regular employee of the Mangalore Mahanagara Palike, which had availed services of the petitioners through contractors, despite having vacant posts.

It was said that on 02.11.2006 order was passed by the Government under Section 10 of the Contract Labour (Regulation and Abolition) Act, 1970, abolishing practice of engagement of contract labour in the Mangalore Mahanagara Palike as regards employees in the Water Supply Department on the basis of the reports submitted and recommendations made thereon. Subsequent to the year 2006, the petitioners are stated to have rendered service through an outsource agency to the Corporation.

Thus it was submitted that in the event the petitioners' services were discharged by virtue of the order passed under Section 10 of the Act and had ceased to work, perhaps the right to regularization would be a difficult right to assert. The petitioner's request for regularization is made on the basis of the continued rendering of services to the Municipal Authority despite the order of abolition of contract labour on 02.11.2006.

The bench referred to the Apex court judgment in the case of Shripal & Anr v. Nagar Nigam, Ghaziabad dated 31.01.2025 and in the case of Jaggo v. Union of India and Others, 2024 SCC OnLine SC 3826, wherein the court recognized the system of contract labour/ out-sourcing as methods of avoiding direct recruitment.

Following which the court directed “In light of the above, the communications at Annexures - W and X are partially set aside with further direction to the Deputy Commissioner, Mangalore, to pass an order of regularization forthwith in light of the discussions and observations made above.”

It added “It is clarified that the petitioners would be entitled only for continuity of service and the period served would be counted for post-retrial benefits. The order of regularization is to take effect from the dates on when they have completed 10 years.”

Appearance: Advocate Gowthamdev C Ullal for Petitioner.

AGA B P Radha FOR R-1.

Advocate Hareesh T Bhandary for R-2.

Advocate Sahana for R3.

Citation No: 2025 LiveLaw (Kar) 209

Case Title: Bhagwan Das & Others AND The Deputy Commissioner & Others

Case No: WRIT PETITION NO. 4478 OF 2022

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