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2014 Supreme(Bom) 1471

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
M. S. SONAK, J.
M/s. United White Metals Limited & Ors.– Petitioner
vs.
State of Maharashtra & Ors.- Respondent
WRIT PETITION NO. 864 OF 2007, WRIT PETITION NO. 1350 OF 2007
Decided on: 25 July 2014

Advocates:
Advocate Appeared
Mr.A.V. Bukhari – Senior Advocate with Mr. B.V.Bukhari, Mr. Avinash K. Jalisatgi i/b. A. V. Jalisatgi and Mr. Amol B. Desai for Petitioner in WP 864 of 2007 and for Respondent No. 9 in WP 1350 of 2007.
Mr. K. M. Naik – Senior Advocate i/b. S. P. Salkar for Petitioner in WP 1350 of 2007 and for Respondent No. 9 in WP 864 of 2007.
Mr. J. Saluja – AGP for Respondent Nos. 1 to 3 in both Petitions.
Mr. S. D. Govekar – Respondent No. 4 in both Petitions present in person.
Mr. K. V. Joseph – Respondent No. 6 in both Petitions present in person.

Headnote:Industrial Disputes Act, 1947 - Section 2-A - Industrial dispute. - Where a dispute between workman and employer arose out of termination of services of individual workman then consequent dispute to be deemed to be an industrial dispute. - The terms of reference also make reference to absorption of their services by Otis. If the impugned order along with terms of reference is construed, not in a pedantic manner, but in the context of letter of demand dated 13 January 2006, then it is clear that the reference relates to retrenchment or otherwise termination of the services of the employees, including in particular respondent Nos. 4 to 7. Such a dispute is obviously relatable to Section 2-A of the said Act. Once a dispute or difference between the workmen and his employer is connected with or arise out of termination of services of individual workmen, then the consequent dispute shall have to be deemed to be an industrial dispute notwithstanding that no other workmen or any union of workmen is a party to the dispute. In these circumstances, it cannot be said that the impugned order making a reference is without jurisdiction because what has been referred is not at all a dispute within the meaning assigned to this term under the said Act.

       Industrial Disputes Act, 1947 - Section 10 - Reference order. - Reference order, made on subjective satisfaction of Government, is an administrative order. - The order of appropriate Government making a reference under Section 10 of the said Act is an administrative order and not a judicial or quasi judicial one and the Court, therefore, cannot canvass order of reference closely to see if there was any material before the Government to support its conclusion, as if it was a judicial or a quasi judicial order. An order made of reference made by the appropriate Government being an administrative order, no lis is involved, as such the order is made on the subjective satisfaction of the Government.

       Industrial Disputes Act, 1947 - Section 16 - Terms of reference. - Order, making reference has to be read along with pleadings of parties and other circumstances. - The terms of reference have not been happily worded. At least prima facie therefore, the terms of reference shall have to be construed by reference to the demand letter dated 13 January 2006. This demand letter, makes it clear that the employees questioned the very order dated 29 December 2003, by which their services came to be transferred from Otis to MWML. Further, the employees contend that since such transfer was itself void, action of termination brought about by UWML, which cannot be regarded as a validly constituted employer, is also void. Thus, construed, it cannot be said that the dispute, as raised, has no nexus whatsoever with the provisions contained in Section 2-A of the said Act and is exclusively referable to the industrial dispute as defined under Section 2-K of the said Act.

       Such an exercise shall have to be undertaken because the terms of a reference are never to be construed pedantically. The order making a reference has to be read along with pleadings of parties and other circumstances, with a view to draw out from various points and about which the parties are at variance leading to the dispute and to determine the real nature of the dispute. The parties are to be offered opportunity before the Tribunal to file their Statement of Claim and response. As long as the parties do not travel way beyond the terms of reference, the Tribunal would be well within its jurisdiction in adjudicating the dispute between the parties. Merely because the terms of reference may not have been happily worded or could have been worded in a better manner, does not render the order making reference infirm, null and void.

JUDGMENT

1] Both these Petitions raise common issues of fact and law and therefore can be conveniently disposed of together. The challenge in the two Petitions is directed against the Order dated 22 December 2006 passed by the Joint Commissioner of Labour, Mumbai, referring under Section 12(5) of the Industrial Disputes Act, 1947 (“said Act”), a dispute with the following terms of the reference:

“By cancelling the Order dated 29.12.2003 the workmen be absorbed in the establishment of M/s. Otis Elevators(India), Mumbai (List is enclosed herewith)”

2] The brief facts and circumstances in which the challenge arises is that the 252 employees referred to in the list annexed to the Order of Reference dated 22 December 2006 (“impugned order”) were admittedly the employees of M/s. Otis Elevator Co. (I)Ltd., (hereafter referred to as “the Otis”) at least upto 29 December2003. On and from the said date, the services of such employees were purported to be transferred on “as is where is basis” to M/s. United White Metals Limited (hereafter referred to as “the UWML”).At the time of such transfer, there were two Unions viz. Bharatiya Kamgar Karmachari Mahasangh ('BKKM') and Bhartiya Kamgar Sena ('BKS') operative against the employees. The BKKM filed Complaint (ULP) No. 11 of 2004 and BKS filed a Complaint (ULP)No. 181 of 2004 under the provisions of Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971('MRTP & PULP Act') alleging that the transfer is illegal, null and void and constituted an unfair labour practice. Both, Otis and UWML questioned the jurisdiction of the Labour Court to entertain such Complaints, inter alia on the ground that there was a serious dispute as to whether the employees could be said to be employed with Otis or UWML and that such a dispute could never be adjudicated in exercise of summary proceedings under the MRTP& PULP Act. In the alternate, Otis and UWML also urged that the employees in question had accepted the transfer without any demur, and consequently there was no unfair labour practice involved. The Labour Court, by its common judgment and order dated 30 August 2005 observed that the transfer of the employees was with their consent, but ruled that it did not have jurisdiction to entertain the Complaints, as there was a serious dispute as to whether the employees were employed with Otis or UWML. Thus, in effect the jurisdictional objection raised by Otis and UWML was upheld by the Labour Court and the two Complaints, dismissed for want of jurisdiction.

3] By order dated 17 September 2004, the Specified Authority under Section 25-N of the said Act permitted retrenchment of 116 employees out of the 235 purportedly transferred from Otis to UWML. Pursuant to the same, 116 employees were retrenched by UWML. The two Unions applied for a review. The review was rejected but the dispute was referred for adjudication to the Industrial Tribunal. At the stage when the parties appeared before the Industrial Tribunal, period of one year as prescribed under Section 25-N(5) had concluded, and therefore Otis and UWML, by applications urged for disposal of the Reference, as having become redundant. Such applications were rejected by the Industrial Tribunal by its order dated 8 December 2005. UWML preferred Writ Petition No. 838 of 2006 questioning the order dated 8 December2005, which Petition was allowed by the learned Single Judge of this Court by its judgment and order dated 3 April 2006. The Appeal against the same being Appeal No. 892 of 2006 was dismissed by the Division Bench of this Court by judgment and order dated 5March 2007.

4] The petitioners claim that out of 116 retrenched employees, 65 employees owing allegiance to BKKM on 18 January 2006 entered into a settlement with UWML and proceeded on Voluntary Retirement. Similarly, 60 employees, owing allegiance to BKKM, who had not been retrenched, also, by the same settlement, opted for Voluntary Retirement. About 110 employees, who



















































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