Back
IN THE HIGH COURT OF KARNATAKA
P.B. Bajanthri, J.
Management of Federal Mogul Goetze India Pvt. Ltd. - Appellant
Versus
Additional Labour Commissioner (Administration) and Appellate Authority, Bengaluru – Respondent
Writ Petition No. 45822, 45823, 45824, 45825, 46462 of 2012
Decided On : 12-07-2019
AGE OF RETIREMENT - EMPLOYMENT CONDITIONS - INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACT, 1946, SECTION 10-A - The court discussed the incorporation of the age of retirement of an employee at 60 years and the change of company's name as 'Federal Mogul Goetze India Ltd.' The court examined the relevant provisions of the Industrial Employment (Standing Orders) Act, 1946, and the Karnataka Industrial Employment (Standing Orders) Rules, 1961, and the subsequent amendment rules of 2017. The court also considered various decisions and legal principles related to the determination of the age of retirement and the employer's discretion to extend the services of an employee beyond the specified age, subject to medical fitness. The court concluded that the respondents were entitled to apply for the amendment of the certified standing orders in accordance with Section 10-A of the Act, 1946, and upheld the orders of the certifying officer and the appellate authority.
Fact of the Case:
The petitioner, a Multi National Company engaged in manufacturing, contested the order to incorporate the age of retirement of an employee at 60 years and the change of company's name. The respondents, employees' association, had submitted a modified charter of demands for the revision of the age of retirement from 58 to 60 years. The petitioner had entered into a settlement with the employees, but the respondents applied for the amendment of the standing orders. The certifying officer and the appellate authority affirmed the amendment, leading to the petitioner's appeal to the court.
Finding of the Court:
The court found that the respondents were entitled to apply for the amendment of the certified standing orders in accordance with Section 10-A of the Industrial Employment (Standing Orders) Act, 1946. The court upheld the orders of the certifying officer and the appellate authority, dismissing the petitioner's appeal.
Issues: The core issues in the case were whether the settlement between the petitioner and the employees would be a hurdle for the respondents in making an application for the amendment of certified standing orders, whether the amendment of certified standing orders was contrary to the terms of the settlement, and whether the orders of the certifying officer and the appellate authority were in order.
Ratio Decidendi: The court held that the respondents were entitled to apply for the amendment of the certified standing orders in accordance with Section 10-A of the Industrial Employment (Standing Orders) Act, 1946. The court also emphasized the employer's discretion to extend the services of an employee beyond the specified age, subject to medical fitness. The court distinguished the present case from previous decisions and emphasized the limited scope of judicial review in such matters.
Final Decision: The court dismissed the writ petitions, upholding the orders of the certifying officer and the appellate authority. The court also disposed of any pending applications, with no order as to costs.
JUDGMENT :
P B Bajanthri, J.
In these petitions, petitioners have assailed the order of respondent Nos.1 and 2 dated 30.5.2012 and 7.11.2012 by which 2nd respondent's decision to incorporate the age of retirement of an employee in the petitioner's Management would be at the age of 60 years with a rider and 1st respondent in appeal affirmed the decision.
2. Petitioner is a Multi National Company which is engaged in manufacturing of Pistons, Rings and Piston Pins. While engaging nearly 1735 employees in various categories, their service conditions are governed by Certified Standing Orders of the Company, Appointment Orders, Settlement issued from time to time. Goetze India Ltd. in existence till 03.08.2006 the date on which the name of the company called M/s. Federal Mogul Goetze (India) Ltd., was incorporated vide Annexure-A. On 11.09.1979, Certified Standing Orders were issued. It is an undisputed fact that age of retirement of employees is not covered under the standing orders dated 11.09.1979. Respondents-Employees formed Association called Federal Mogul Goetze India Employees Association. They have issued charter of demands on 15.7.2008. One of the demands was relating to revision of age from 58 to 60 years. When things stood thus, respondents-employees' election was held. Consequently, their Association has renamed from Federal Mogul Goetze India Employees Association to that of CITU. Consequently, on 7.7.2010, modified charter demands were submitted while retaining aspect of revision of age from 58 to 60 years. When the matter relating to consideration of modified charter demand was pending consideration, it was the Petitioner - Management and the respondents-employees entered into settlement on 19.11.2010. Pursuant to the settlement, Respondents-employees have given an undertaking in terms of settlement. Thereafter on 11.2.2012, respondent No.3 Bharathiya Mazdoor Sangha (for short 'Sangha') submitted application for amendment of Standing Orders with two issues to the 2nd respondent. The two issues are relating to revision of age of retirement from 58 to 60 years and change of company's name as 'Federal Mogul Goetze India Ltd.,' When application was submitted by respondent No.3, was pending consideration before the 2nd respondent. Respondent Nos.4 to 6 got impleaded themselves in the application filed by respondent No.3 Sangha. Petitioner on receipt of the notice from the 2nd respondent, had appeared before the Certifying Officer and filed a detailed objection dated 12.5.2012. Consequently, respondent filed rejoinder on 18.5.2012, petitioner submitted written arguments along with four decisions were cited before the certifying officer on 22.5.2012. On 30.5.2012 2nd respondent proceeded to amend the certifying orders in respect of both the issues namely assigning age of retirement of an employee at 60 years and change of company's name as Federal Mogul Goetze India Ltd., Feeling aggrieved and dissatisfied with the order of the 2nd respondent, insofar as revision of age of retirement at 60 years, the petitioner Management preferred an appeal before the appellate authority on 26.6.2012.
3. Respondent No.3 Sangha submitted their statement of objections before the Appellate Authority, so also, petitioners filed their written Synopsis on 20.7.2012 and 22.7.2012 respectively. Appellate Authority rejected the petitioner's appeal on 7.11.2012. During the pendency of the present petition, amended rules was brought into vogue called 'Karnataka Industrial Employment (Standing Orders) (Amendment) Rules, 2017' (for short Rules, 2017). Notification dated 27.03.2017 is reproduced herein:
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
