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2007 Supreme(SC) 1508

2007(8) Supreme 657
Supreme Court of india
(From Bombay High Court)
C.K. Thakker & Markandey Katju, JJ.
Sarva Shramik Sanghatana (K.V) Mumbai — Petitioner
versus
State of Maharashtra and Others — Respondents
Appeal (civil) 5458 of 2007
[Arising out of SLP(C) No. 15199/2007]
Decided on : 28-11-2007

important point
Some of the general principles of CPC may be applied to ID Act also.

Headnote:(a)Code of Civil Procedure, 1908 – Order XXIII, rule 1 – The principle underlying R.1 of O. XXIII of the Code should be extended in the interest of administration of justice to cases of withdrawal of writ petition also, not on the ground of res judicata but on the ground of public policy – Not applicable in present case. (Para 12)

       AIR 1987 SC 88 – Distinguished.

       (b)Precedent – Every judgment must be read as applicable to the particular facts proved, or assumed to be proved – A case is only an authority for what it actually decides. (Para 19)

       1901 AC 495; (1987) 1 SCC 213; (2003) 2 SCC 111; AIR 2004 SC 4778; 1951 AC 737; 1970 (2) All ER 294; 1972 (2) WLR 537 – Relied upon.

       (c)Industrial Disputes Act, 1947 – Section 25-O – Although the Code of Civil Procedure does not strictly apply to proceedings under Section 25-O(1) of the Industrial Disputes Act, or other judicial or quasi-judicial proceedings under in any other Act, some of the general principles in the CPC may be applicable – However, this does not mean that all provisions in the CPC will strictly apply to proceedings which are not suits. (Para 21)

       (2004)1 SCC 68 – Relied upon.

       (d)Industrial Disputes Act, 1947 – Section 25-O (5) – Section 25-O(5) only applies when an order is passed on merits either granting or refusing to grant permission for closure – Since in the present case no order on merits was passed, Section 25-O(5) has no application – Since the application for withdrawal of the first petition under Section 25-O(1) was made bona fide by the company, its re-submission was not invalid. (Para 26)

       (2006)1 SCC 479 – Distinguished.

       Facts of the case:

       1.Respondent No. 3, Century Industries Textiles Limited had about 7500 employees in its textile mill at Mumbai which suffered heavy loss due to high increase in the cost of production and competition both in the domestic as well as international market.

       2.With the object to reduce its operational cost, agreements dated 6.7.2004 and 5.9.2005 were entered into by the company with its recognized union for reducing the workforce through an offer of Voluntary Retirement Scheme. Finally, a highly upgraded VRS was offered to the employees unilaterally by the respondent-company on 13.11.2006 which offer was valid till 12.12.2006. There was an overwhelming response to the said VRS and more than 6300 employees opted for the new VRS, and were accordingly relieved from service on payment of VRS benefits and all other legal dues. Only about 275 employees did not accept the abovementioned VRS and 230 of these were the petitioners before the High Court.

       3.Allegedly all manufacturing activities in company’s textile mill came to an end on 13.12.2006 since it was left with only 275 workers. All supervisors and departmental heads had left after taking the VRS. In these circumstances, the respondent-company filed an application seeking permission for closure under Section 25-O of the Industrial Disputes Act vide application dated 13.2.2007.

       4.Before the aforesaid application under Section 25-O could be decided, in view of a meeting convened by the Hon’ble Minister for Labour, Maharashtra Government, in order to create a conducive atmosphere for discussing the problems of the remaining employees who had not taken VRS, the respondent-company withdrew its application under Section 25-O(1), but reserving its right to move fresh application under Section 25-O as and when necessary.

       5.It appears, however, that the effort for an amicable settlement failed. Hence the respondent-company filed fresh application under Section 25-O(1) on 11.5.2007 before the Commissioner of Labour, Mumbai.

       6.The appellant, which represents the workmen concerned, opposed the very entertainment of the second closure application under Section 25-O on the ground that the first application was withdrawn but without liberty from the concerned authority to file a fresh application. The appellant filed a writ petition before the Bombay High Court praying that the Deputy Commissioner of Labour should be directed not to take any further proceedings in relation to the closure application under Section 25-O.

       7.The writ petition was dismissed.

       Findings of the Court:

       Bona fide resubmission of application u/s 25-O(1) by the company was not invalid.

       Result : Appeal dismissed.

judgment

Markandey Katju, J. —

1.Leave granted.

2.This appeal has been filed against the impugned judgment dated 16.8.2007 passed by the High Court of Bombay in Writ Petition No. 1240 of 2007.

3.Heard learned counsel for the parties and perused the record.

4.Respondent No. 3, Century Industries Textiles Limited, is a company registered under the Indian Companies Act, 1956. It had about 7500 employees in its textile mill at Mumbai which suffered heavy loss due to high increase in the cost of production and competition both in the domestic as well as international market. With the object to reduce its operational cost, agreements dated 6.7.2004 and 5.9.2005 were entered into by the company with its recognized union for reducing the workforce through an offer of Voluntary Retirement Scheme (hereinafter in short ‘VRS’). However, there was hardly any success in this exercise, and only about 800 employees opted for the VRS which left with 6700 employees still on its roll. Finally, a highly upgraded VRS was offered to the employees unilaterally by the respondent-company on 13.11.2006 which offer was valid till 12.12.2006. There was an overwhelming response to the said VRS and more than 6300 employees opted for the new VRS, and were accordingly relieved from service on payment of VRS benefits and all other legal dues. Only about 275 employees did not accept the abovementioned VRS and 230 of these were the petitioners before the High Court.

5.The respondent-company further alleged that its manufacturing activities in its textile mill came to an end on 13.12.2006 since it was left with only 275 workers. All supervisors and departmental heads had left after taking the VRS. In these circumstances, the respondent-company was constrained to file an application seeking permission for closure under Section 25-O of the Industrial Disputes Act (hereinafter in short ‘the Act’) vide application dated 13.2.2007.

6.Before the aforesaid application under Section 25-O could be decided, the respondent-company received a letter dated 5.4.2007 from the Deputy Commissioner of Labour, Mumbai, a copy of which is Annexure P-1 to this appeal. This letter states that as per the directions of the Hon’ble Minister for Labour, Maharashtra Government, a meeting has been convened for discussing the matter in dispute at 11.00A.M. on 9.4.2007 in the Chambers of the Hon’ble Minister in Vidhan Bhavan.

7.In response, the respondent-company wrote a letter to the Hon’ble Minister for Labour dated 11.4.2007 stating that it was willing to discuss the matter in dispute and would attend the meeting. However, in the same letter dated 11.4.2007 the respondent-company also mentioned that under Section 25-O(3) of the Industrial Disputes Act, an application under Section 25-O(1) has to be decided within 60 days, otherwise it would be deemed to have been allowed. Since the application was made on 13.2.2007, the 60 days’ limitation was shortly about to expire and then the application would be deemed to have been allowed. However, in order to create a conducive atmosphere for discussing the problems of the remaining employees who had not taken VRS, the respondent-company was withdrawing its application under Section 25-O(1), but reserving its right to move fresh application under Section 25-O as and when necessary. Accordingly, the Commissioner of Labour, Mumbai by his order dated 12.4.2007 allowed the respondent-company to withdraw its application under Section 25-O (1). The respondent-company alleged that it could have very easily pretended to discuss the matter with the workers’ Union and bided its time till 13.4.2007 and then claimed the benefit of deemed grant of permission for closure. But, instead of doing so, the respondent-company decided to bona fide explore the possibility of an overall settlement with the remaining employees. Since that could not have been done within the remaining 4 days, the respondent-company withdrew its application under Section 25-O(1) so that an attempt f









































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