In Brief
The Food Corporation of India was directed by an Industrial Tribunal to regularize contract workers and departmentalize them following abolition of contract labour. This direction was upheld by the Madras and Kerala High Courts and by the Supreme Court. However, the FCI regularized these workers under its Direct Payment System (DPS) instead of the Departmental Labour System. Workers' unions filed contempt petitions. The Supreme Court held that the original direction was general and did not specify which labour system to use, and the FCI acted within its organizational policy by using the DPS (existing since 1973). The Court ruled that without an explicit direction specifying the Departmental Labour System, there was no willful disobedience. The contempt petitions were dismissed.
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