The question whether the High Court or the Labour Court has the power to abolish the contract labour system is no more res integra (Originally: an open question, something which has not yet been determined or resolved. Later: (Law) a case or question not covered by existing law or precedent.) after the Supreme Court decision in Air India Statutory Corporation vs United Labour Union & Ors decided on 6 November, 1996 by the Constitution
Bench of Hon'ble Justices K. Ramaswamy, B.L. Hansaria, & S.B. Majmudar. Writing the judgement Justice K Ramaswamy held, inter alia :
"..... the High Court exercising the power under Article 226 of the Constitution cannot give direction for absorption. True, Court cannot enquire into and decide the question whether employment of contract labour in any process operation or any other work in establishment should be abolished or not and it is for the appropriate Government to decide it. The Act does not provide total abolition of the contract labour system under the Act."