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2022 Supreme(Kar) 1141

IN THE HIGH COURT OF KARNATAKA
Sreenivas Harish Kumar, S.Rachaiah, JJ.
Rajashree Cement General Workers And Staff Union - Appellant
Versus
Management Of Ultratech Cement - Respondent
Writ Appeal No. 200010/2022 (L-RES)
Decided On : 13-07-2022

Advocates appeared:
P.Vilaskumar, Advocate, Nitesh Padiyal, Advocate, Siddaram B.Wadi, Advocate, Pradeep S.Sawkar, Advocate, S.R.Kamalcharan, Advocate, A.M.Patil Kolkur, Advocate, Viranagouda M.Biradar, Advocate

The main legal point established in the judgment is that settlements between the employer and the trade union have binding nature, and subsequent amendments to the Model Standing Orders cannot be used to modify the Certified Standing Orders without an agreement between the parties.

Headnote:

Model Standing Orders - Retirement Age - Industrial Employment (Standing Orders) Act, 1946 - MSO, CSO - The court discussed the applicability of Model Standing Orders (MSO) and Certified Standing Orders (CSO) in the context of a settlement between the employer and the trade union. It held that MSO would apply only when CSO is not in operation and that settlement between the employer and the trade union would incorporate the CSO and again certified. The court also found that when there is a negotiated settlement, neither the employer nor the trade union can claim to the contrary, let alone on the basis of the amendment to the MSO which has come into being subsequent to CSO. The court followed the judgment of the Supreme Court in the case of Barauni Refinery Pragathisheel Shramik Parishad v. Indian Oil Corporation and Kennametal India v. Kennametal Indian Employees Association.

Fact of the Case:

The appellant, a Trade Union of the Workers, appealed against the order modifying the Certified Standing Orders (CSO) to increase the retirement age from 58 to 60 years. The appellant and the first respondent had entered into a settlement, but the Government of Karnataka amended the Model Standing Orders (MSO) to increase the retirement age to 60 years, leading to the appeal.

Finding of the Court:

The court found that the settlement between the employer and the trade union binds the parties, and neither party can claim to the contrary, especially based on subsequent amendments to the MSO. It held that the CSO can only be modified if there is an agreement between the parties, and in this case, the appellant could not have moved the Certifying Officer within the agreement period when the Government of Karnataka brought an amendment to MSO increasing the retirement age.

Issues: The issues included the effect of Model Standing Orders, the applicability of MSO and CSO in the context of a settlement, and whether CSO can be modified during the time of its prevalence as agreed between the parties.

Ratio Decidendi: The court relied on the Industrial Employment (Standing Orders) Act, 1946 and the judgment of the Supreme Court in Barauni Refinery Pragathisheel Shramik Parishad v. Indian Oil Corporation to establish that the settlement between the employer and the trade union binds the parties, and subsequent amendments to the MSO cannot be used to modify the CSO without an agreement between the parties.

Final Decision: The court dismissed the appeal, finding no good reason to entertain it.

JUDGMENT

SREEN IVAS HARISH KUMAR,J. - The order dtd. 16/3/2021 in Writ Petition No. 204077/2018 is assailed in this Writ Appeal. The appellant is the Trade Union of the Workers of the first respondent company which is involved in manufacture of cement. The second respondent is the Additional Labour Commissioner.

2. The factual background for this writ appeal being filed is as follows :

    There are about 278 workmen in the skilled and unskilled category working in the first respondent industrial unit. The first respondent and the appellant used to enter into bi-partite settlements for regulating the service conditions of the workmen . Industrial establishmen ts may adopt Model Standing Orders ('MSO' for short) issued by Government o f Karnataka or it may have its own Standing Orders certified by the Certifying Officer in accordance with the provisions of Industrial Employment (Standing Orders) Act, 1946 (for short 'the Act'). The first respondent had its own Standing Orders certified by the Certi fying Of ficer. The earlier settlement between the appellant and the first respondent which had been certified by the Certifying Officer prescribed 55 years as the age of retirement of the workmen of the first respondent. The last bi-partite settlement was entered into between the appellant and the first respondent on 26/10/2016. Before this settlement came into existence, the appellant placed before the first respondent a charter of demands, one of which related to retirement age. The demand was to increase the age of retirement from 58 to 60 years. After discussion , the appellant and the first respondent arrived at a settlement on 26/10/2016; the first respondent accepted certain demands and it was agreed between the parties that all other disputes/demands raised in the char ter but not covered under the settlement should be deemed to have been dropped. It was also agreed that the demands which were dropped would not be raised or re-negotiated during the period of operation of the settlement, which was operational for a period of five years from 1 .6.2016 to 31/5/2021. This settlement was certi fied by the Certifying Officer. The demand for increasing the age of retirement was thus dropped and therefore the age of retirement continued to be 58 years. This being the background, the Government o f Karnataka amended the MSO by issuing a notification dtd. 27/3/2017 and thereby increased the age of retirement to 60 years from 58 years. Pursuant to this notification the appellant submitted an application to the Deputy Labour Commissioner and Certi fying Officer, Kalaburagi region, on 13/5/2017 for modi fying clause 23.2 of the Certi fied Standing Orders ('CSO' for short) by increasing the retirement age from 58 to 60 years. The Deputy Labour Commissioner notified the first respondent of this representation and then the first respondent appeared and filed detailed statemen t o f objections. According to the first respondent, the Deputy Labour Commissionercum-Certifying Officer did not conduct any enquiry and passed an order on 31/10/2017 modifying clause 23 .2 of CSO for increasing the age of retirement o f the workmen from 58 to 60 years. Aggrieved by this order , the first respondent preferred an appeal to the Additional Labour Commissioner who too, by his order dtd. 10/10/2018, dismissed the appeal. Challenging the order of Additional Labour Commissioner, the first respondent preferred Writ Petition No. 204077/2018 before this cour t and the said writ petition being allowed, this Writ Appeal has been preferred.

    3. The learned single Judge formulated the following four points for discussion :

      "1. What is the effect of Model Standing Orders, and to whom it would apply to?

        2. In the event of there being a settlement between the employer and the Trade Union, on which basis the Certi fying Standing Orders are amended, would Model Standing Orders be applicable to the establishment?

          3. Can any of the parties claim the benefit o f the Model Standi

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