R. V. Raveendran, J. - (1.) This appeal by special leave is filed against the judgment and order dated 12.11.2001 passed by the High Court of Madras in Writ Appeal No.544/1998 reversing the order dated 15.12.1997 passed by a learned single Judge in Writ Petition No. 6126 of 1995 and restoring the award dated 23.12.1994 passed by the Industrial Tribunal, Madras in ID No.65 of 1991. The case has a chequered history and has come up after several rounds of litigations.
(2.) The International Airport Authority of India (IAAI for short), the appellant herein, was established under the International Airports Authority Act, 1971. It established a cargo complex at Madras in the year 1978. Under an agreement dated 30.1.1978, it granted a licence to a private company known as M/s. Airfreight Private Ltd. (referred to as 'Airfreight') to be its ground handling agent in respect of export, import and transshipment cargo consignments. Under the said agreement, Airfreight was to receive payment from the owners of the cargo for the work done, had to engage the services of required number of workers for handling the cargo and be responsible for payment of wages to the workers. It was also required to pay a licence fee to IAAI, linked to the total revenue realized by it. (minimum being Rs. 12 lacs, maximum being Rs. 43.50 lacs plus an agreed percentage of the revenue over and above 60 lacs). IAAI had no privity of contract, obligation or responsibility towards the workers employed by the Airfreight.
(3.) In the year 1985 IAAI decided to take over the ground handling work and entrust it to a new licencee by inviting competitive tenders. Therefore, by letter dated 19.9.1985 IAAI informed Airfreight that the ground handling agency operations should be handed over to its officers on 31.10.1985. Thus from 1.11.1985, Airfreight ceased to be the ground handling agent of IAAI at Madras Airport. The termination of the handling contract of Airfreight did not require IAAI or the new licencee of IAAI to take over the workers employed by Airfreight. In the circumstances, the workers (loaders and packers) employed by Airfreight in connection with the ground handling work, who were likely to be retrenched/discharged, made an appeal to IAAI to provide them employment. First Round;