Karnataka High Court
MYSORE KIRLOSKAR LIMITED, HARIHAR - Appellant
Versus
STATE OF KARNATAKA - Respondent
Decided On : 02-03-04
W.P. : 4821 of 2001
lockout - industrial dispute - companies act, 1956, industrial disputes act, 1947, Sec 10 (1), Sec 10 (3) - The court discussed the power of the government to prohibit the continuance of a strike or lockout in connection with a dispute referred for adjudication under Sec 10 (1) of the industrial disputes act, 1947. The court interpreted the provisions of Sec 10 (3) and examined conflicting judgments to determine the scope of the government's power to prohibit a lockout. The court held that the government has the power to prohibit the continuance of a lockout which is the subject-matter of reference itself under Sec 10 (1) of the act, and that the impugned Order was valid and legal.
Fact of the Case:
The petitioner, a company registered under the companies act, 1956, declared a lockout due to industrial recession and severe competition. The government referred the dispute for adjudication to the labour court and passed an Order prohibiting the lockout. The petitioner challenged the government's jurisdiction and the validity of the Order.
Finding of the Court:
The court found that the government had the power to prohibit the continuance of the lockout, as it was the subject-matter of reference under Sec 10 (1) of the industrial disputes act, 1947. The court also held that the impugned Order was passed after due consideration of the circumstances and facts of the case.
Issues: (1) Whether the government has the power to prohibit the continuance of a lockout which is the subject-matter of reference under Sec 10 (1) of the act? (2) Whether the impugned Order suffers from the vice of no application of mind or want of material on record justifying the exercise of such power?
Ratio Decidendi: The government has the power to prohibit the continuance of a lockout which is the subject-matter of reference under Sec 10 (1) of the act. The impugned Order was passed after due consideration of the circumstances and facts of the case.
Final Decision: The court upheld the government's power to prohibit the continuance of the lockout and dismissed the petitioner's challenge to the impugned Order.
( 1 ) THE petitioner is a company registered under the provisions of the companies act, 1956. It has its manufacturing activity, namely, the foundry unit as well as its machine tool unit both at harihar and it had employed about 1740 workmen. There were three unions in the said industrial establishment. The said three unions are arrayed as respondents 3, 4 and 5. Respondent 3 is a majority union. On account of general industrial recession in machine tool industry and also due to various severe competition for the products manufactured by the company both from the domestic manufacturers and also from imports of machines from abroad, the company suffered loss. They could not meet the statutory obligations. Power supply was disconnected for non-payment of electricity bills which brought the activities of the company to a total standstill. Petitioner-company was forced to lay-off all its workmen on 21-10-2000 and 23-10-2000 with the consent of the workmen/union. Thereafter, the petitioner-company was able to carry on its production activities partially by using diesel-generating set and by operating light machines only. Subsequently as that was not working economically all the workmen were laid off. After several rounds of talk between the trade union and the petitioner certain understandings were reached to try out from the difficult situation. The petitioner sought the co-operation of the workmen in this regard. Subsequently, the workmen indulged in arm twisting tactics like digging up trenches measuring 3 feet in depth and 2 feet in width in front of two gates of the company, one on the northern side and the other on the southern side with a view to forcibly prevent the movement of men, material, vehicles and other essential food articles, ingress and egress into the establishment including the residential colony area thereby affecting not only the normal production activities during the said lay-off period but also the normal life of the inmates in the residential colony of the petitioner- company. Subsequently, the agitating workmen took law into their hands and indulged in violent activities. The petitioner was constrained to approach civil court seeking an Orderof temporary injunction against the workmen. They were also constrained to file writ petition before this court as public interest litigation seeking urgent interim orders which were granted. In Orderto prevent any further damage to the properties of the company and other persons who are confined, the petitioner-company had to effect a lockout in all departments with immediate effect from 1st January, 2001. Then there was a conciliation meeting with the second respondent- authority. Parties appeared before them, put forth their respective cases and the conciliation officer reported to the government that conciliation has failed. On the basis of the said report, government passed Order under Section 10 (1) of the industrial disputes act, 1947 (for short hereinafter referred to as 'the act'), referring the dispute between the parties, namely, whether the lockout dated 1-1-2001 declared by the management is legal, acceptable, for adjudication to the labour court by their Order dated 23-1-2001 as per Annexure-t. On the very same day the government proceeded to pass Order under Section 10 (3) of the act prohibiting the lockout with immediate effect, a copy of which is produced at Annexure-s. The petitioner being aggrieved by the Order passed under Section 10 (3) of the act prohibiting lockout as per Annexure-s has preferred this writ petition.
( 2 ) PETITIONER contends, when the lockout declared by the management was referred for adjudication to the labour court under Section 10 (1), the government had no jurisdiction to prohibit the very same subject-matter of reference by exercising power under Section 10 (3) of the act. Secondly, it is contended that the government without application of mind, without there being any material before it to justify such an action ha
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