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2010 Supreme(Bom) 1582

High Court of Judicature at Bombay
THE HONOURABLE MRS. JUSTICE NISHITA MHATRE
S.B. Patole & Others
Versus
Fujitsu ICIM Ltd., Pune & Others
Writ Petition No.2988 OF 1998
Decided on : 29-10-2010

Advocates Appeared:
For the Petitioners:N.D. Buch with H.D. Buch, S.K. More, Advocates.
For the Respondents:K.S. Bapat with T.R. Yadav, Advocates.

Headnote:Industrial Disputes Act, 1947 - Sections 25-O and 25-K-Closure of a division of a factory-Permissibility of-Factory, having several divisions employing more than 100 employees-Permission of appropriate Government must be obtained prior to closure of a part of Factory, an integral part of Industrial Establishment.-Under Section 25-O of the I.D. Act, which is also contained in Chapter-VB of the I.D. Act, an employer must take prior permission from the appropriate Government for closing down an industrial establishment to which the chapter applies. Therefore, before the closure of an industrial establishment employing more than 100 workers is brought into effect, permission must be sought mandatorily from the appropriate Government by the employer. The closure which is declared by the employer without such permission is illegal. The consequences of such an illegal closure have been delineated in Section 25-O of the I.D. Act. Undisputedly, the closure of a part of an industrial establishment can be effected. Thus, Division or a Department or a section of a factory can always be closed down. However, if such a factory employees mere than 100 workmen, permission of the appropriate Government must be obtained prior to the closure even when a part of the factory is to be closed. The Act does not in any manner make any distinction between one or the other Divisions of an industrial establishment. The industrial establishment for the purpose of closure and for considering whether 100 workmen were employed in the previous twelve calendar months must be considered as a whole.

       Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 - Sections 29 and 33-Industrial Court Regulations 1975-Unfair labour practice-Complaint-Filing of-Complaint filed in representative capacity-Regulations, 1975 framed under Section 33 of MRTU & PULP Act permits such filing of complaint-Order of Industrial Court in complaint bind all other workmen even though complaint signed by two workmen.-The Industrial Court Regulations, 1975 framed under Section 33 of the MRTU and PULP Act permit the filing of a complaint in a representative capacity. Therefore, merely because a complaint has been signed by five workmen and the subject-matter concerns several other workmen, whose names have been mentioned in the annexure to the com- plaint, it cannot be said that the reliefs, if any, granted in the complaint have to be restricted only to those five workmen. Furthermore, under Section 29 of the MRTU and PULP Act, an order of the Industrial Court would be binding on all persons who on the date of filing of the complaint are employed in the under- taking to which the complaint relates and all persons who may be subsequently employed in the undertaking. Thus, the submission of the Advocate for the Company that the complaint has to be limited only to hose workmen who had signed the complaint is without merit.

       Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 - Schedule IV, Items 1 and 9- Termination of services of workmen- Failure to comply with provisions of Section 25-O of I.D. Act-Complaint-Breach of provisions of law-Complaint filed under Item 9 of Schedule of IV of Act-Maintainable.-A complaint under Item 9 of Schedule IV of the MRTU and PULP Act would be maintainable before the Industrial Court after an illegal retrenchment of the workmen as a consequence of the failure to comply with the provisions of Section 25-O of the I.D. Act. Where there is a breach of a provision of law which has resulted in the termination of service, a complaint under Item 9 of Schedule IV of the MRTU and PULP Act would be maintainable in view of the aforesaid judgment. Therefore the contentions that a complaint under Item 9 was not maintainable and that relief could be granted only in a complaint filed under Item 1 of Schedule IV is without merit.

Judgment

1. This Writ Petition has been filed by 24 workmen who are employed with the respondent No.1-Company. However, out of these 24 workmen, most of the workmen have settled their disputes with the respondent No.1-Company. The Writ Petition is now prosecuted only by petitioner Nos.1, 3, 4 and 17 to 24. Aggrieved by the order dated 5th May, 1998 of the Industrial Court, Pune in dismissing the Complaint (ULP) No. 165 of 1997 filed by the petitioners, (hereinafter referred to as the workmen), under Section 28 read with Items 9 and 10 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, (for short “the MRTU & PULP Act”), the workmen filed the present Writ Petition.

2. Therespondent No.1, (hereinafter referred to as “the Company”), manufactures computers, printers, fax machines etc. It is also engaged in software development and has several Divisions including the Manufacturing and Supply Division (MSD), National Software Division (NSD), Engineering Support Division (ESD) etc. According to the workmen, there were 1200 employees totally in all the Divisions which are part and parcel of the Company, registered under the Companies Act, 1956. In 1994, the Company floated a Voluntary Retirement Scheme, (for short “VRS”), for the MSD and not for the workers in any other Division. This was because certain activities of the MSD were transferred to Pondicherry. 125 employees accepted the VRS, while 117 employees continued to work with the Company in that Division in Pune. On 15th October, 1996, the Company issued a notice of suspension of operations on the ground that work orders were not available with the Company. In 1997, a second VRS was offered by the Company to the employees working in the MSD. 82 employees accepted this scheme, while 24 employees continued in employment.

3. Complaint (ULP) No.165 of 1997 was filed by five workmen for themselves and 20 other workmen, who had authorized them to file the said complaint under Item 9 of Schedule IV of the MRTU & PULP Act. The workmen contended that they apprehended a closure of the Company and, therefore, filed the said complaint. It was pleaded that the MSD and other Divisions were an integral part of the Company and that they had functional integrality with the Company. The workers pleaded that most of the divisions/companies mentioned in the complaint were being run from the factory premises. It was contended that the closure was likely to be effected without following the provisions of law which would amount to an unfair labour practice under Item 9 of Schedule IV of the MRTU & PULP Act. They sought an injunction against the Company restraining it from closing the MSD during the pendency of the Complaint (ULP) No.165 of 1997.

4. A written statement was filed by the Company. It was contended that the Company had decided to close down the manufacturing activities in Pune by following the provisions of law. The Company pleaded that there were less than 100 workmen employed and therefore the provisions of Section 25 (O) of the the Industrial Disputes Act, 1947, (for short “the I.D. Act)”, did not apply to the facts in the present case. However, while dealing with the contention in the complaint that the Divisions of the Company were integrated, the Company pleaded that the companies and Divisions mentioned in the complaint were “independent Companies having separate legal entities”. As regards the Engineering Division, the Company has pleaded that it has nothing to do with the factory in which premises the MSD was situated.

5. An application for amending the complaint was filed by the workmen after the closure of the manufacturing activities in Pune from 24th July, 1997. Although the application was opposed by the Company, the Industrial Court has allowed the application. By this amendment the workers had pleaded that the closure effected from 24th July, 1997 was illegal and that the Company had committed an unfair labour pract







































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