The Director, Steel Authority Of India ... vs Ispat Khadan Janta Mazdoor Union

The Supreme Court upheld the decision of the Madhya Pradesh High Court, which set aside the award of the Central Government Industrial Tribunal under Section 10(1) of the Industrial Disputes Act, 1947, regarding the reinstatement of contract labourers employed by SAIL from 1993 to 1996. The Court clarified that the prohibition notification under Section 10(1) of the Contract Labour (Regulation and Abolition) Act, 1970 effectively ceased the relationship between the contractors and the contract labourers, thus denying their claim for reinstatement and back wages. The Court emphasized that the absence of a fresh agreement post-notification rendered the contract labourers' employment status void.