M/S Paradeep Phosphate Ltd vs Paradeep Phosphate Mazdoor Union & Ors

The Supreme Court upheld the Orissa High Court's decision directing the regularization of workers engaged in the DAP Plant under the Contract Labour (Regulation and Abolition) Act, 1970, specifically referencing Section 10(1). The Court emphasized that once the State Government issued a notification abolishing contract labor for specific tasks, the workers must be treated as regular employees. The judgment clarified that the relationship between the contractor and the laborers ceases upon such prohibition, reinforcing the legal obligation of the employer to regularize these workers.