No Claim Against Principal Employer Without Employment Proof | HC

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  • Last Updated on 28 April, 2026

principal employer liability

Case Details: Paramjeet Singh vs. BSES Rajdhani Power Ltd. [2026] 185 taxmann.com 276 (Delhi)[30-03-2026]

Judiciary and Counsel Details

  • Manoj Kumar Ohri, J.
  • Karan LuthraShiven Asthana, Advs. for the Petitioner.
  • Sandeep Prabhakar, Sr. Adv. & Vikas Mehta, Adv. for the Respondent.

Facts of the Case

In the instant case, the workman, Paramjeet Singh, claimed that he was employed as a driver from 14.12.2003 to 31.05.2012 and that his services were illegally terminated on 01.06.2012 after he demanded statutory benefits. He filed a claim against both the principal employer (BSES Rajdhani Power Ltd.) and the contractor. He relied on two identity cards issued by the contractor and a vehicle log slip to support his claim. However, BSES denied any employer–employee relationship with him, while the contractor admitted that he was its employee but stated that he had left the job on 19.05.2012 and had not completed 240 days of continuous service in the preceding year.

The Labour Court examined the facts and found that Paramjeet Singh failed to prove continuous service of 240 days, as required under Section 25F of the Industrial Disputes Act, 1947. The identity cards produced were not sufficient evidence, and there was a clear break in service, he stopped working after 30.04.2011 and rejoined only on 02.11.2011 before finally working till 19.05.2012. Importantly, he did not file any response to challenge the contractor’s version that he had voluntarily left the job. Based on these findings, the Labour Court dismissed his claim.

High Court Held

On appeal, the High Court of Delhi upheld the Labour Court’s decision. The Court noted that Paramjeet Singh had claimed to be an employee of BSES. Still, there was no evidence to establish such a relationship, especially since the contractor had admitted employment. It further held that in the absence of any allegation that the contract between BSES and the contractor was illegal, the workman could not claim to be an employee of the principal employer. Additionally, since he sought no relief against the contractor, there was no basis to interfere with the Labour Court’s award. Accordingly, the petition was dismissed.

List of Cases Referred to

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied