H. L. DATTU, J, J. ( 1 ) PETITIONERS are workmen and members of KAVIKA contract workers' union. Respondent is a company incorporated under the provisions of the Companies Act. The company is engaged in the manufacture and distribution of transformers of various capacities. Their main customer is State Electricity Board. To carry out the repairs of failed transformers within the factory premises, company has engaged the services of one Sri Ethiraj and Sri Siddaramaiah on contract basis. In turn, these contractors have engaged the services of the petitioners to carry out the work within the factory premises as contract labourers. The initial contract with the contractor was for a period of six months with effect from 1. 9. 1992 with an option for extension for further period of six months with an interval of three months at the sole discretion of the respondent company. Indicating several clauses including the above clause, the company had executed a valid contract with the contractor. This contract was extended from time to time and the latest is the one which extends the period of contract upto 31st July, 1997 or till such time company makes alternate arrangements whichever is earlier. During the subsistence of the contract, a meeting came to be held by the Senior officers of the Company in the Executive Directors Chambers on 2. 7. 1996. The agenda of the meeting was with regard to increasing the repair work of transformers ailed, within and beyond the guarantee period. In that meeting, it was noted that the number of transformers repaired by the contractor is inadequate compared to the number of transformers to be repaired. Taking note of the inability of the contractor to increase the output of repair work, the Company decided tb modify the system of repair of transformers on unit rate basis so that the management can handle the labour through their officials for supervision and co-ordination work. The minutes of this meeting is very relevant, since it throws some light on the arguments advanced by learned Counsel for the parties. Therefore, the same is extracted and it reads as under: "03. By considering the above aspects, it is decided to modify the contract as under: