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2023 Supreme(SC) 1153

SUPREME COURT OF INDIA
HIMA KOHLI, RAJESH BINDAL, JJ.
Hind Filters Ltd. and Another – Appellants
Versus
Hind Filter Employees’ Union and Another – Respondents
Civil Appeal No. 8801 of 2012
Decided On : 17-08-2023

Advocates appeared:
For the Appellant(s) : Mr. S. Hariharan, Adv. Mr. Vikash Singh, AOR
For the Respondent(s): Mr. Sunil Kumar Jain, AOR Ms. Rashika Swarup, Adv. Mr. Sunny Choudhary, AOR Mr. Sandeep Sharma, Adv. Mr. Karan Bishnoi, Adv.

Industrial Disputes

Headnote:

Industrial Disputes - The Industrial Disputes Act, 1947 - Section 10(1) - The jurisdiction of the Labour Court and the Industrial Tribunal for reference of a dispute is discussed. The matters specified in the Second Schedule fall within the jurisdiction of the Labour Court, while the matters specified in the Third Schedule fall within the jurisdiction of the Industrial Tribunal, unless the dispute is not likely to affect more than 100 workmen, in which case it can be referred to the Labour Court.

Fact of the Case:

The appellants-Management sought permission to retrench 45 workmen, but the permission was declined. The workmen raised demands and the dispute was referred to the Labour Court. The claim made by the workmen was accepted by the Labour Court. The appellants-Management filed a Writ Petition challenging the award, which was disposed of with liberty to approach the Labour Court for correction of factual error. The appellants-Management filed an application for correction of the error, which was allowed by the Labour Court. The workmen challenged the orders before the High Court, which set aside the orders. The matter is remitted back to the Labour Court for fresh adjudication.

Finding of the Court:

The jurisdiction of the Labour Court and the Industrial Tribunal for reference of a dispute is discussed. The appellants-Management argued that the reference to the Labour Court was without jurisdiction as they employed more than 100 workmen. The documents placed on record by the appellants-Management show that more than 100 workmen were employed. The matter is remitted back to the Labour Court for re-examination.

Ratio Decidendi: The matter is remitted back to the Labour Court for fresh adjudication, as the material placed on record by the appellants-Management goes to the root of the case in determining the jurisdiction of the Labour Court. The workmen will have an opportunity to cross-examine the witnesses and lead their own evidence.

Result: The appeal is allowed. The impugned orders are set aside. The matter is remitted back to the Labour Court for fresh adjudication. The appellants-Management shall deposit costs with the Labour Commissioner, which will be disbursed to the workmen. The Labour Court is directed to dispose of the matter within six months.

JUDGMENT :

RAJESH BINDAL, J.

1. Aggrieved against the order1 [Dated 11.05.2011] passed by the High Court2 [High Court of Madhya Pradesh at Indore] in the Writ Petition3 [W.P. (C) No. 824 of 2011] filed under Article 227 of the Constitution of India, the Management is before this Court in appeal. Vide the aforesaid order [dated 11.05.2011] three orders4 [Dated 30.06.2010, 12.08.2010 and 06.10.2010 passed by the Labour Court] passed by the Labour Court5 [Labour Court, Dewas, Madhya Pradesh] were set aside with a direction to the Labour Court to allow the appellants-Management to exercise liberty only in relation to correction of factual errors in the order.

FACTS

2. The facts of the case, as evident from the record, are that the appellants-Management moved an application under Section 25-N of the ID Act6 [The Industrial Disputes Act, 1947 (‘ID Act’)] seeking permission to retrench 45 workmen w.e.f. 01.12.2000. However, vide order dated 16.10.2000, the permission was declined by the Labour Commissioner and the application filed by the appellants-Management was rejected. Thereafter, the workmen raised certain demands on 09.10.2001, seeking increase of wages and other facilities. The Labour Commissioner referred the dispute to the Labour Court vide order dated 07.08.2002. Statement of claim was filed by the respondents-workmen before the Labour Court to which reply was filed by the appellant-Management. Finally, the matter was adjudicated. The claim made by the respondents-workmen was accepted by the Labour Court vide Award dated 10.02.2006.

2.1 Challenging the aforesaid Award, the appellants-Management filed a Writ Petition7 [W.P. No. 2375 (S) of 2006 before the High Court of Madhya Pradesh at Indore] before the High Court [High Court of Madhya Pradesh at Indore]. As an interim measure, the High Court, while issuing notice, stayed the operation of the Impugned Award dated 10.02.2006 of the Labour Court. Plea raised by the appellants-Management before the High Court was that there being more than 100 workmen in the factory of the appellants, reference under Section 10 of the ID Act should have been made by the Labour Commissioner only to the Industrial Tribunal. Vide order dated 06.01.2010, the High Court accepted the Writ Petition filed by the appellants-Management. The prayer made was that there being a jurisdictional error with reference to the court to which the reference could be made, as the appellants-Management had more than 100 workmen, liberty be granted to the appellants to approach the Labour Court by filing an appropriate application for correction of the factual error. Respondent No. 1 being aggrieved by the order passed by the High Court filed a Review Petition8 [Review Petition No. 46 of 2010] before the High Court. However, the same was dismissed by the High Court vide order dated 12.03.2010.

2.2 The appellants-Management filed an application before the Labour Court for correction of the factual error annexing documents, showing that even in the returns filed with the Employees State Insurance Corporation and Life Insurance Corporation etc. more than 100 workmen were shown to be employed with the appellants-Management. Reply was filed by the respondents-workmen to the application, objecting to the documents placed on record by the appellants-Management along with the application for correction of the error. The Labour Court vide order dated 30.06.2010 dealing with the objections raised by the respondents-workmen, issued notice in the application and allowed the appellants-Management to file the documents in support of its claim.

2.3 Again, objection was raised by the respondents-workmen regarding maintainability of the application before the Labour Court. However, the same was also rejected vide order dated 12.08.2010. Subsequently, an application was filed by the appellants-Management for summoning of official records and the witnesses. The same was allowed by the Labour Court vide order dated 06.10.2010. At that stage

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