SC's split verdict on regularisation plea of Chef Air workmen

The legal battle over regularisation of services of some workmen, previously working with Chef Air Flight Catering, remained unresolved with the two judges of the Supreme Court coming out with diametrically opposite findings in a split verdict.
While Justice C K Prasad upheld the Delhi High Court verdict that workmen cannot claim regularisation as the Hotel Corporation of India (HCI), which is owned by Air India and runs Chef Air, is a separate entity from Air India, Justice V Gopala Gowda said they are the "deemed employee" of the national carrier.
Justice Prasad said, "I have tested the case of the workmen on the touchstone of the principles laid down by this court and find that they do not satisfy those tests so as to hold that Air India is the principal employer,"

However, Justice Gowda said, "I am in respectful disagreement with the opinion of my learned brother (Justice Prasad) and I am recording my reasons for the same."
"Indeed if I pierce the veil of legal appearances that is contained in the contractual arrangement between the two public sector corporations named above, I must come to the conclusion that what I see is a sham contract between them behind which many unfair labour practises like the 40 days contract of employment of the concerned workmen in the canteen has been perpetuated by them in order to deny permanent employment to the workmen in the canteen which is permanent and statutory in nature and therefore carries with it permanent vacancies," Justice Gowda said.

In his 104-page separate judgement, Justice Gowda upheld the findings of Central Government Industrial Tribunal (CGIT) which had held that the HCI is 100 per cent subsidiary of Air India and "hiring of employees for running the statutory canteen by the Corporation is a camouflage and the workmen employed in the Canteen are deemed employees of Air India.