Uttarakhand High Court lifts 31-year-old ban on hiring contract workers at ONGC

The Uttarakhand High Court has quashed a 31-year-old notification banning the hiring of contract employees in Oil and Natural Gas Corporation (ONGC) Limited.

A single-judge Bench of Justice Pankaj Purohit declared the notification issued by the Center on September 8, 1994 invalid without following the mandatory consultation process under Section 10 of the Contract Labor (Regulation and Abolition) Act, 1970.

ONGC had objected to the notification, arguing that the Central Advisory Contract Labor Board was not consulted before issuing the notification and was based solely on the report of a sub-committee that inspected only four of the company’s 34 units.

The Center claimed that the notification was issued after legal process. However, the court found that there had been no proper consultation and limited review, meaning the decision lacked sufficient factual basis.

Referring to various Supreme Court decisions, the bench said compliance with Section 10(2) is mandatory and violation thereof will render the notification void.