High Court gives relief for contract workers in power sector

The Hyderabad High Court on Tuesday dismissed petitions challenging the regularisation of outsourced workers in power utilities like TS Transco, TS Genco and power utilities.

A bench of Chief Justice TB Radhakrishnan and Justice V Ramasubramanian said this while dismissing a public interest litigation (PIL) and another writ petition filed by unemployed youth on the matter. According to an estimate, this order will help 25,000 workers working as outsourced employees in various power sector departments across the city.

The bench agreed with the contention of senior counsel G Vidya Sagar, who appeared for power utilities, that a PIL is not maintainable in service matters. “The Supreme Court has made it clear that except a writ of quo warranto, no PIL is maintainable in service matters,” the bench said.

The regularisation of



outsourced employees working in the power sector was made as part of a settlement reached under section 18(1) and sealed under section 12(3) of the Industrial Disputes Act. These settlements were not challenged. “Settlements reached under this section during conciliation proceedings are binding even upon persons who are not parties to the dispute,” the bench said in its order.

The apex court had recognised the powers of the labour courts to regularise contract workers and these powers were not affected by the decision in Umadevi case which was cited by the petitioners in support of their case, the bench said, while dismissing the plea.

Regularisation of outsourced employees in the power sector was made as part of a settlement reached under section 18(1) and under section 12(3) of the Industrial Disputes Act.