Delhi High Court Orders Fresh Adjudication in Air India Wage Dispute

Cryptic Tribunal Order Set Aside; Court Directs Detailed Examination of Jurisdictional Objections  

In a significant development, the Delhi High Court has set aside the order of the Central Government Industrial Tribunal-cum-Labour Court regarding wage parity claims filed by contract workers against Air India Limited. The judgment, delivered by Justice Renu Bhatnagar, calls for a fresh adjudication and mandates the Tribunal to provide a comprehensive and reasoned order addressing key jurisdictional issues.  

The case revolves around 183 contract workers employed by M/s. Neha International under a contract with Air India Limited for ground handling operations at the Indira Gandhi International Airport, New Delhi. After the contract expired in 2002, the Airport Employees Union, representing these workers, sought wage parity with regular employees of Air India through an application under Section 33C(2) of the Industrial Disputes Act, 1947.  

The Tribunal initially dismissed Air India's objection to the maintainability of the application, asserting a lack of employer-employee relationship and questioning the enforceability of wage parity under Rule 25(2)(v)(a) of the Contract Labour (Regulation and Abolition) Rules, 1971. However, the High Court found the Tribunal's reasoning to be inadequate, noting that it failed to substantively address Air India's concerns or analyze the statutory provisions and precedents cited.  

Justice Bhatnagar emphasized the necessity for the Tribunal to provide a well-reasoned order, reflecting a proper application of mind, especially in cases involving complex legal frameworks like the Contract Labour Act and Industrial Disputes Act. The judgment highlighted that the Tribunal's brief and dismissive approach did not meet the threshold required for adjudicating jurisdictional objections.  

The court has directed the Tribunal to reconsider Air India's application and issue a detailed speaking order within three months. This directive aims to ensure that all arguments and legal citations from both parties are thoroughly examined.  

The decision underscores the judicial expectation for clarity and reasoned decision-making in labor disputes, especially when contractual obligations and statutory rights intersect. The parties are scheduled to appear before the Tribunal on November 17, 2025, to proceed with the fresh adjudication.  

Bottom Line:

Industrial Disputes Act and Contract Labour (Regulation and Abolition) Act - Tribunal must provide a reasoned order when addressing jurisdictional objections under Section 33C(2) of the Industrial Disputes Act.

Statutory provision(s): Industrial Disputes Act, 1947 Section 33C(2); Contract Labour (Regulation and Abolition) Act, 1970 Rule 25(2)(v)(a); Contract Labour (Regulation and Abolition) Act, 1970 Section 21

Air India Limited v. Airport Employees Union (Regd.), (Delhi) : Law Finder Doc Id # 2801536