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2003 Supreme(AP) 256

Andhra Pradesh High Court
Judges : GODA RAGHURAM
I.L.Naidu - Appellant
Versus
Union of India - Respondent
Decided On : 02-18-03

Headnote:Industrial Disputes Act, 1947 - Sections 10, 2-A(2), 25(o) - Retrenchment - Bonafide closure of undertaking pursuant to orders of Government - Discharge of workman on valid closure of undertaking not amount to retrenchment.

       Held : Issues incidental to the aspects specified in an order of reference for adjudication fall within the jurisdiction of the Labour Court or Tribunal, as the case may be, which are empowered to determine questions which go to the root of their jurisdiction and that on the determination of such points would depend the question as to whether the labour Court or tribunal has the jurisdiction to adjudicate upon the points referred to it for adjudication. Even in respect of a claim presented under Section 2-A (2) of the Act, the Labour Court would have an identical jurisdiction to determine, as a preliminary issue, the existence of the jurisdictional facts upon which its jurisdiction to determine the claim rests.

GODA RAGHURAM, J.

( 1 ) W. P. NOS. 25745 of 2001, 18437 of 2001 and 26576 of 2001 and Batch, constitute three classes of disputes between the management of M/s. Hindustan Zinc Limited, visakhapatnam, a Government of India undertaking and the workmen of Lead smelter Unit at Visakhapatnam, an undertaking of Hindustan Zinc Ltd.

( 2 ) TWENTY employees of the Lead Smelter unit have filed W. P. No. 25745 of 2001 challenging the order of the Government of india dated 22-12-2000 granting permission for closure of the Lead Plant at visakhapatnam, under Section 25-O of the industrial Disputes Act, 1947 (for short the Act ) with effect from 24-1-2001, on various grounds. Contesting the discharge of workmen on the closure of the Lead Smelter unit and disputing the claim of the management that redeployment of the workmen of the Lead Plant to other plants of the company was not possible, one of the recognised unions sought reference of the dispute under Sec. 10 of the Act, after conciliation in this regard failed. The government of India by its order dated 2-5-2001 referred a specified dispute for adjudication of the Industrial Tribunal-cum- labour Court, Visakhapatnam. Challenging this order of the Government of India, the management-Hindustan Zinc Ltd. , filed w. P. No. 18437 of 2001. Subsequent to dismissal of W. P. Nos. 375 and 520 of 2001 by the order of this court dt. 19-1-2001 (details of these writ petitions are being recorded in this judgment infra) and on the basis of the observations contained therein, some of the workmen of the closed unit approached the industrial Tribunal-cum-Labour Court, visakhapatnam (for short the Tribunal ) under Sec. 2-A (2) of the Act, for a declaration to treat their discharge with effect from 24-1-2001 as illegal retrenchment, for reinstatement to employment and other benefits. Against the entertainment by the tribunal of these claims as IDs, the management-Hindustan Zinc Ltd. , has filed w. P. 26576 of 2001 and Batch, seeking writs of Prohibition.

( 3 ) AS interconnected factual and legal positions fell for consideration in these three classes of writ petitions, this court heard all the writ petitions together and is disposing them by this common Judgment.

( 4 ) HEARD Sri K. Srinivasa Murthy and ms. V. Uma Devi, learned counsel for sri P. Sriraghuram, learned counsel for the petitioner - Hindustan Zinc Ltd. , Sri Ramesh ranganathan, learned Additional Advocate general instructed by Sri J. Ramachandra rao and Sri P. B. Vijaya Kumar, learned counsel for the workmen and Sri M. Rama reddy, learned Standing Counsel for the central Government. Chronology of facts leading to the writ petitions :

( 5 ) CLOSURE of the Lead Smelter Plant of the Hindustan Zinc Ltd. , was permitted by the order of the Government of India subject to conditions including that the offer of voluntary retirement (details of which in brief have been set out in the order) should be kept open up to the date of the closure and in addition the management should explore the possibility of redeploying some of the workers in other plants of the company. The order also required that all the dues of the workers including VRS compensation, retrenchment compensation etc. , should be paid at the time of retirement/separation of the worker from the company.

( 6 ) INITIALLY Hindustan Zinc Limited was a wholly owned Government of India undertaking. However, pursuant to the disinvestment policy, at present the stake of the Government of India in the company is in the order of 49. 92 per cent. The registered office of the company is at Udaipur, rajasthan State. The company owned several smelting and other units in the States of Rajasthan, Andhra Pradesh, Bihar and orissa. Orissa mines have since been closed. The manufacturing activity of the company at Visakhapatnam commenced in 1977 and the main products of the undertaking at visakhapatnam are zinc and lead.

( 7 ) ON account of its extensively polluting nature, the undertaking of the company at visak
























































































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