In a detailed judgment delivered on October 17, 2025, Justice Sandeep V. Marne of the Bombay High Court set aside a 2006 industrial tribunal award that had directed the Central Railway to regularise 37 cleaning workers deployed at Navi Mumbai railway stations. The Court ruled that these workers were never employees of the Railways but of CIDCO or its contractors.
Background
The dispute originated from an unusual arrangement between the City and Industrial Development Corporation of Maharashtra (CIDCO) and Central Railway. CIDCO had constructed and maintained modern railway stations like Vashi, Nerul, and Belapur as part of Navi Mumbai’s development, in exchange for advertisement rights to recover maintenance costs.
In 1999, the Rail Mazdoor Union sought regularisation of 37 cleaning and sweeping workers who had completed over 240 days of service at these stations. The Central Government Industrial Tribunal (CGIT) ruled in their favour in 2006, treating them as railway employees. The Railways challenged this award through a writ petition.
Court’s Observations
During the hearing, counsel for Central Railway, Ms. Smita Thakur, argued that the Tribunal had overstepped its jurisdiction since the workers were appointed and paid by CIDCO or its agency, M/s Man Power Services. She pointed out that “Railways neither supervised their work nor paid their wages,” and cited multiple Supreme Court precedents including Umadevi and Balwant Rai Saluja to argue that regularisation without sanctioned posts is unconstitutional.
On the other hand, the Rail Mazdoor Union’s counsel, Mr. Ramesh Ramamurthy, pleaded that at least six of the workers had served for over 30 years and deserved regularisation on humanitarian grounds.
The Court, however, noted that CIDCO was not a contractor of the Railways but an independent entity that built and owned the stations. “CIDCO has been maintaining its own railway stations,” Justice Marne observed, adding that “mere issuance of entry permissions by station managers cannot make the workers employees of the Railways.”
Referring to the six tests laid down by the Supreme Court to establish employer-employee relationships, the judge said none were met since the Railways did not appoint, pay, or exercise control over the workers.
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Decision
Rejecting the Tribunal’s conclusion, Justice Marne stated that regularising workers of another entity would “violate Articles 14 and 16 of the Constitution.” The Court emphasised that such appointments in the Railways must be through a proper selection process and against sanctioned vacancies.
He further noted that even today, CIDCO maintains the Navi Mumbai stations and pays the workers’ wages. “Mere grant of advertisement rights cannot imply Railways’ indirect payment,” the Court said.
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Concluding the matter, the judge ruled:
“The impugned award passed by the CGIT is indefensible and liable to be set aside. The petition accordingly succeeds.”
The High Court thus quashed the Tribunal’s 2006 award and dismissed the union’s claim for regularisation of the cleaning staff.
Case Title: General Manager, Central Railway vs The Secretary, Rail Mazdoor Union
Case Type: Writ Petition No. 576 of 2007
Petitioner: General Manager, Central Railway
Respondent: The Secretary, Rail Mazdoor Union
Date of Judgment: October 17, 2025
