Mumbai, January 31, 2025 – The Shipping Corporation of India Limited (SCI) (BSE: 523598, NSE: SCI) has informed the stock exchanges about a Supreme Court verdict directing the company to absorb and regularize canteen workers associated with the LalBavta Union, following a longstanding legal battle.
Key Highlights:
- The Supreme Court of India upheld the Central Government Industrial Tribunal (CGIT) award favoring canteen workers.
- SCI is required to absorb and regularize these workers, subject to medical fitness and superannuation criteria.
- SCI had previously challenged the CGIT order in the Bombay High Court, followed by an SLP and Review Petition in the Supreme Court, both of which have been dismissed.
Legal Timeline & Final Verdict:
| Event | Details |
|---|---|
| March 31, 2011 | CGIT, Mumbai, ordered SCI to regularize LalBavta Union canteen workers who were in service at the time. |
| Subsequent Years | SCI contested the order at the Bombay High Court and later in the Supreme Court. |
| January 27, 2025 | The Supreme Court dismissed SCI’s case and directed compliance with the 2011 CGIT order. |
| January 31, 2025 | SCI received the Supreme Court order via the Court's website at 11:00 AM. |
Financial & Operational Impact:
SCI has stated that it is currently assessing the financial implications of implementing the Supreme Court's directives. The company is in the process of determining the payables and other obligations related to the absorption of the workers.SCI’s compliance with the ruling is expected to conclude a long-standing dispute, ensuring job security for the affected canteen workers.
