M/S H Enterprise vs The Indian Oil Corporation Ltd And 2 Ors on 6 September 2024

The brief facts of the case state that the petitioner (Contractor) was hired through a tender bidding process to render catering services for the Respondent at a value of 28,040,977.20. Regarding the contract signed by the parties, specific issues arose regarding handing over the kitchen and worksite. The petitioner was restrained from hiring its own workers and was rather compelled to engage with workers of the previous contractors. A writ petition was filed challenging the situation with the respondent, and during the pendency of the writ, the contract was terminated by the Respondent.

The petitioner argued that the petitioner could not be forced to work with the previous contractor, and it was clearly mentioned in the agreement that the petitioner would engage certain workers, which clearly meant workers of his organization. The Respondent replied that the contractor had come up with a new list that could potentially cause industrial unrest and would be against the interest of justice. Further, it was not mentioned in the agreement that a contractor could hire his workers only.

The court held that the petitioner could not be chained to engage previous workers of the previous contractor. The exploitation of workers will not be permissible in any case, and their rights cannot be curtailed regarding the engagement of a particular set of workers.