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2010 Supreme(Bom) 86

High Court of Judicature at Bombay
THE HONOURABLE MRS. JUSTICE RANJANA DESAI & THE HONOURABLE MRS. JUSTICE MRIDULA BHATKAR
Rashtriya Chemical & Fertilizers Limited
Versus
The Chairman & Others
WRIT PETITION NO. 456 OF 2003
Decided on : 19-01-2010

Advocates appeared:
For the Appellant:J. P. Cama with M. S. Bodhanwala, Ajay Khaire & Prachi Mhatre i/b M/s. M. S. Bodhanwalla & Co., Advocates. For the Respondents: K.M. Naik with S.P. Salkar for R-1 & 2, Milind More, AGP for R-3 & 4, Anand Grover with Ms.
F. Moosa for R-5, M.S. Topkar for R-6, Advocates.

Headnote:Maharashtra Mathadi, Hamal and Other Manual Workers (Regulation of Employment and Welfare) Act, 1969 - Sections 6 and 25 - Increase of wages of Mathadi workers - By Board for welfare of manual workers - Board directed payment of D.A. to it - No provision for D.A. in settlement - Steep increase in wages itself included D.A. - Writ petition challenging increase of wages - Held - D.A. given as a relief to workers against rising prices as per consumer price index - To deny D.A. to workers, contrary to Section 25 of Act - Petition dismissed. - In opinion, the ratio of this case is clearly attracted to the present case. Settlement dated 28.6.2002 assuming it states that no DA is payable to the Mathadi workers is bad in law and void in view of Section 25 of the Mathadi Act. Roha Dyechem Ltd. ’s case cannot be distinguished from the present case on the ground that in that case the Board was not a party to the settlement and therefore Board’s authority to fix emoluments including DA over and above wages was affirmed by the Court and that whether the Board had the right under the statutory scheme to superimpose DA on a settlement between management and labour was kept open. In opinion the petitioner is merely indulging in hairsplitting. In that case the Court has considered the scope of the Board’s power, the concept, nature and importance of DA and the effect of any contract or agreement which deprives the Mathadi workers of the rights privileges or concession accruing to them and held that such contract or agreement would be void under Section 25 of the Mathadi Act. This Court has held that basic wages has not to be confused with DA. DA is statutory in character and must be paid to the workers.

       The attempt to distinguish this judgment must fail.

       It is argued that the impugned demands place heavy financial burden on the petitioner which is likely to have adverse effect on its business. The petitioner which is a public Sector Undertaking may suffer loss and close down. This is disputed by the respondents. The respondents contend that the petitioner’s financial condition is sound. Court is not inclined to go into this disputed aspect. The legal position as regards DA is clear. Settlement dated 28.6.2002, is unambiguous. In any case there can be settlement which will deprive the Mathadi workers’ DA which is statutory in character. Section 25 of the Mathadi Act would come to the rescue of the workers.

       In view of the above, there is no substance in the petition. The petition is, dismissed.

Judgment :-

Ranjana Desai, J.

The petitioner is a Public Sector Undertaking of the Central Government engaged in the activity of manufacture and marketing of chemicals and fertilizers. The 1st respondent is the Chairman of the Grocery Markets and Shops Board constituted under Section 6 of the Maharashtra Mathadi, Hamal and other Manual Workers (Regulation of Employment and Welfare) Act, 1969 (“the Mathadi Act” for short). The 2nd respondent is the Grocery Markets and Shops Board (“the Board” for short). The 3rd respondent is the Commissioner of Labour and the 4th respondent is the State of Maharashtra. The 5th respondent is the Maharashtra Rajya Mathadi, Transport and General Kamgar Union and the 6th respondent is the Transport & Dock Workers’ Union.

2. The case of the petitioner needs to be shortly stated.

a) The petitioner is a manufacturer and distributor of fertilizers and industrial chemicals. There are about 5000 regular workers employed with the petitioner. The petitioner has two plants in Maharashtra, one at Thal in Raigad District and one at Trombay. In addition to the said 5000 regular workers, the petitioner also engaged the services of about 700 Mathadi workers at its factory at Thal and about 915 Mathadi workers at its Trombay unit. The petitioner is registered with the Board at its Thal unit. The Mathadi workers at Thal are engaged through the Board. The Board has a statutory duty to regulate and revise the terms and conditions of service of Mathadi workers registered with it.

b) Though the petitioner was paying wages and levy in excess of Rs.11000/- per month per worker, the Mathadi workers were demanding higher wages from the petitioner by submitting charter of demands to the petitioner for the year 1997-98. Though the negotiations were on in respect of the said charter of demands, the Mathadi workers gave strike notices to the petitioner in or about July, 2000. The petitioner called upon the Board to act against the erring Mathadi workers and pointed out that no increase in wages was warranted as the petitioner was already paying higher wages to Mathadi workers than any other employers in the State and the same was affecting the cost of the petitioner’s products. However, instead of taking action against erring workers the 1st respondent by an order dated 18/7/2000 declared an interim increase in wages of Mathadi workers by 10%.

c) The petitioner, therefore, filed Writ Petition No. 1840 of 2000 in this court challenging the said increase. This court by order dated 4/5/01 quashed and set aside the said order and remitted the issue of determination of wages of the Mathadi workers to the Board. The Board was directed to give a hearing to the petitioner and the union and pass a reasoned order within 8 weeks. As an interim measure the petitioner was directed to pay 10% increase in wages effective from 1/1/01 only and not retrospectively. This was without prejudice to the petitioner’s contention that no increase was warranted. This court clarified in the order that this payment would be adjusted against further payments, if the Board concluded after hearing parties that no increase was warranted.

d) According to the petitioner, thereafter the petitioner made several written and oral submissions before the Board that wages should not be increased any further. Thereafter as a measure of goodwill the petitioner agreed to give rise of 10% in the wages for the period 1/7/97 to 1/1/01 and a further 8% rise from 1/1/2001 to 30/6/04. The petitioner agreed to this on the condition that the number of Mathadi workers would be reduced.

e) Instead of declaring the increased wages as agreed by the petitioner the Board was proposing to declare two wage revisions in total disregard of what was agreed to by the parties. The petitioner, therefore, addressed letter dated 2/3/02 to the Board and letter dated 28/2/02 to the Principal Secretary Industries Energy and Labour Department of the Government of Maharashtra strongly protesting a
























































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