High Court of Judicature at Bombay
S. J. VAZIFDAR & M.S. SONAK, JJ.
Voltas Limited
Versus
State of Maharashtra (through its department of Industries Energy and Labour) & Others
Writ Petition Nos.2633 of 2012 & 9863 of 2012
Decided On : 18-07-2013
Where there was sufficient material on record for Government to be satisfied of existence of industrial dispute between petitioner and respondent-3, Union, therefore order of reference justified. - In the present case, perusal of charter of demands in pursuance of which impugned reference came to be made makes it clear that there was sufficient material on record for appropriate Government to be satisfied of existence of industrial dispute between petitioner and respondent No. 3 Union.
Charter of demands makes specific reference to settlement and/memorandum of understanding between petitioner company and respondent No. 3 Union, wherein petitioner company had agreed in principle that there should be no engagement of ’contract labour’ where nature of work was permanent or perennial in nature.
Charter of demands protests against petitioner extracting, under guise of ’contract labour’ or ’casual labour’ works of permanent or perennial nature and alleges that this amounts to exploitation.
In light of these circumstances, 3rd respondent Union demanded parity in wages and other benefits to causal and contract labour at par with permanent employees and that such causal and contract, employees be made permanent and paid wages and benefits from dates on which such employees started working for company.
It is settled position in law that terms of reference are never to be construed pedantically. Order making reference has to be read along with pleadings of parties and other circumstances with view to cull out therefrom, various points about which parties are at variance leading to dispute and to determine real nature of dispute.
Parties are to be offered opportunity before Industrial Tribunal to file their statements of claim and response. As long as parties do not travel way beyond terms of reference, Tribunal would be well within jurisdiction in adjudicating dispute between parties.
Applying principles to facts and circumstances of present case, and taking into consideration the settled legal position that in making reference under said appropriate Government exercises administrative function and not adjudicatory function, impugned reference order in present case cannot be faulted. Issue as to whether ’employee employer relationship’ exist between parties or not, will involve disputed questions of facts and consequently adjudication. Industrial Tribunal which will have before it pleadings of both parties, will be in best position to adjudicate upon such issues.
M.S. Sonak, J.
1] By an order dated 24th September, 2012, the parties were put to notice that these writ petitions may be finally decided at the admission stage. Rule. Rule is made returnable with the consent of all the parties forthwith.
2] The petitioner challenges the order of reference dated 9th July, 2012 made under the Industrial Disputes Act, 1947 (hereinafter referred to as 'said Act') by the State of Maharashtra (respondent No.1) and the Additional Labour Commissioner (respondent No.2) at the behest of Voltas Employees Union (respondent No.3).
3] Mr. Cama appearing for the petitioner in both the matters, at the outset, submitted that there is no appreciable difference in the facts in Writ Petition No.2663 of 2012 and Writ Petition No.9863 of 2012, except that whereas in Writ Petition No.2663 of 2012 issue of “contract labour” is involved and in Writ Petition No.9863 of 2012 issues of “casual labour” and “contract labour” are involved. Accordingly, both these petitions are being disposed of, by this common judgment and order. For sake of convenience, however, the facts in Writ Petition No.2663 of 2012 have been adverted to.
4] The challenge to the impugned order of reference is based on the following grounds;
A] The order of reference concerns “contract labour”, who are not employees of the petitioner company. There is no 'employer-employee' relationship between the petitioner company and such “contract labour”. As such, the dispute is in respect of the persons, who are not “workmen” under Section 2(s) of the said Act. Inasmuch as this jurisdictional aspect has been ignored, the impugned reference order is vitiated by non-application of mind and is consequently required to be quashed and set aside.
B] As per the constitution of respondent No.3 Union, the Union can espouse the cause of its own members only. The membership of the Union is limited to the permanent employees of the petitioner company. The dispute now raised, pertains to “contract labour”, who are not even employees of the petitioner company, much less permanent employees. Therefore, the Union as per its own constitution had no right or locus standi to espouse the cause of such “contract labour”. The impugned reference order made at the behest of respondent No.3 Union is consequently ultra-vires and without jurisdiction.
C] Respondent No.3 Union has filed two complaints (ULP) Nos. 342 of 2004 and 439 of 2009 for claim of permanency on behalf of “contract labour” and the complaint (ULP) No.342 of 2004 has been dismissed by the Industrial Court, Maharashtra by judgment and order dated 20th April, 2011. In view thereof, the impugned reference order referring similar demands of the 3 rd respondent for adjudication to the Industrial Tribunal are hit by bar of Section 59 of the MRTU and PULP Act, 1971.
D] Mr. Cama relied upon the decision of the Supreme Court in the case of National Engineering Industries Ltd Vs. State of Rajasthan, AIR 2000 Supreme Court 469, in support of his contention that the High Court has jurisdiction to entertain a writ petition challenging an order of reference made under the Industrial Disputes Act,1947 and that an Industrial Tribunal, which is a creation of statute cannot go into the question of validity of reference. He placed particular reliance upon paragraph Nos.27, 28 and 29 of the judgment.
5][A] Mr. Bapat appearing for the 3rd respondent Union, countered by pointing out that the appropriate Government whilst making the impugned reference order has specifically kept the issue of locus standi of 3rd respondent open for adjudication before the Industrial Tribunal. He further contended that “contract labour”, were the members of the Union and in any case, in terms of section 2 (k) of the Industrial Disputes Act, 1947, the Union comprising direct employees of the employer were competent to raise industrial disputes with regard to the persons, who may not be 'workmen' under section 2(s) of the Industrial Disputes Act, 1947.
5][B] Mr
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