Steel Authority Of India Ltd vs Union Of India & Ors

The Supreme Court addressed the issue of the jurisdiction of the State Government to refer an industrial dispute under Section 10(1)(c) of the Industrial Disputes Act, 1947, concerning the absorption of contract workers as permanent employees. The Court held that the reference was impermissible as the regulation of contract labor is governed by the Contract Labour (Regulation and Abolition) Act, 1970, and no notification prohibiting contract labor had been issued. Consequently, the Court upheld the decision of the Labour Court that the workmen did not have a legal right to claim absorption as permanent employees.