Summary: Pawan Hans Limited challenged a decision to pay Rs.5.8 crore to contract workers. The court upheld the payment, emphasizing fair treatment for all workers.
Pawan Hans Limited, a helicopter service provider under the Ministry of Civil Aviation, found itself in a legal battle with Aviation Karmachari Sanghatana, a union representing contract employees. The issue? A large sum of Rs.5,80,75,659 plus interest, which the company was told to pay as part of a wage revision agreement.
On November 17, 2025, Judge Sandeep V. Marne heard the case. The dispute began when Pawan Hans didn't give the same wage increases, agreed upon with other unions, to its contract workers. The union argued this was unfair, pointing to a Supreme Court decision that treated contract workers like regular employees.
"The Authority had no other choice but to order the issuance of a Recovery Certificate."
Pawan Hans argued the order was beyond the court's power, as there was no agreement with the contract workers' union. They claimed the Supreme Court decision only covered retirement fund benefits, not wage increases.
"The order passed by the Authority is beyond its power."
The court found that Pawan Hans didn't argue against the existence of an agreement during the initial proceedings. Judge Marne noted that the Supreme Court had already set an example by treating contract workers the same as regular employees for retirement fund benefits.
Judge Marne decided not to change the order, emphasizing fairness between regular and contract workers. The court dismissed the request, allowing the recovery order to remain.
"There is no point in forcing the First Respondent-Union into another long round of legal proceedings."
Pawan Hans asked to pause the judgment, but the court only extended temporary protection for eight weeks, given the bank guarantees already in place.
The court's decision highlights the ongoing struggle for fair treatment of contract workers and sets an example for similar disputes in the future.
