Back
PATNA HIGH COURT
V.Ramaswami and Kanhaiya Singh JJ.
Sita Ram Sah
Versus
State Of Bihar
Miscellaneous Judicial Case No. 250 of 1958 ;
Decided On : JANUARY 06, 1960
INDUSTRIAL DISPUTES ACT - INDUSTRIAL DISPUTE - SECTION 2(K) - NOTIFICATION UNDER SECTION 10(1) - CLOSURE OF FACTORY - JURISDICTION OF STATE GOVERNMENT - SUMMARY
Fact of the Case:
Petitioner, a bidi manufacturer, closed his factory due to labor unrest and wrongful confinement of his family members by workers. The workers filed an application under Section 33-C of the Industrial Disputes Act for recovery of dues. The State Government issued a notification under Section 10(1) of the Act, referring the dispute to the Labour Court.
Finding of the Court:
The court held that the notification was ultra vires and without jurisdiction as there was a real and bona fide closure of the factory, resulting in the cessation of the industry. The court relied on the Supreme Court decision in Pipraich Sugar Mills Limited v. Pipraich Sugar Mills Mazdoor Union, which held that an industrial dispute under Section 2(k) must refer to a dispute arising out of an existing industry.
Issues: Whether the State Government had jurisdiction to make a reference of an industrial dispute under Section 10(1) of the Industrial Disputes Act after a real and bona fide closure of the factory.
Ratio Decidendi: The definition of 'industrial dispute' in Section 2(k) of the Industrial Disputes Act must be construed in the context of other provisions of the Act, which assume the continued existence of an industry. Where there is a real and bona fide closure of the business, any dispute arising with reference thereto falls outside the ambit of the Act.
Final Decision: The court quashed the notification issued by the State Government under Section 10(1) of the Industrial Disputes Act and issued a writ of mandamus commanding the respondents not to take further action in pursuance of the notification. However, the court clarified that its decision would not affect the application made by the workers under Section 33C of the Act.
1. In this case the petitioner carried on the business of manufacture of bidis at Deoghar until 29-5-1957. On that day the petitioner gave a notice of closure to his employees, and the reason for the closure was that on 23-3-1957, the workers surrounded the factory where the business of bidi manufacture was carried on and kept all the family members of the petitioner in wrongful confinement for 3 to 4 hours. Later on the members of the petitioners family were rescued with the help of the police by the Subdivisional Officer of Deoghar, and a criminal case under Sec.147/342 of the Indian Penal Code was initiated against several workmen. It is also alleged in paragraph 4 of the affidavit that the workmen attempted to destroy and damage the stock of bidi leaves and the production of bidi manufacture consequently suffered. In view of the attitude of the workmen the petitioner thought that it was no longer possible to carry on the manufacture of bidis and decided to close down the factory. It appears that the workmen subsequently made an application under Sec.33-C of the Industrial Disputes Act for recovery of the money due to them from the petitioner under Chapter VA of the Industrial Disputes Act. The application was made to the Deputy Commissioner of Labour, who issued notice to show cause upon the petitioner why the payment should not be made. On 16-12-1957, the petitioner showed cause before the Deputy Commissioner of Labour. Meanwhile the State Government issued a notification on 15-1-1958, under Sec.10 (1) of the Industrial Disputes Act, purporting to make a reference of an industrial dispute between the petitioner and the workmen. The notification is annexure D to the application and reads as follows :
Government of Bihar
Labour Department.
Notification
Patna, the 25 Paush, 1879 S
15. January, 1958
No. III/D1-I709/57L-904. Whereas the Governor of Bihar is of opinion that an industrial dispute exists or is apprehended between the management of Sitaram Sah Bidi Factory, Deoghar, San-thal Parganas and their workmen represented by Santhal Pargana Bidi Labour Union, Jansagarhi, Deoghar, regarding the matters specified in Annexure A, And, whereas the dispute is not likely to affect more than one hundred workmen,
Now, therefore, in exercise of the powers conferred by Sub-section (1) of Section 10 of the Industrial Disputes Act, 1947 (XIV of 1947), the Governor of Bihar is pleased to refer the said dispute to the Labour Court, Ranchi, constituted in State Government Notification No. III/D1-12047/57 L-13149 dated 26-7-1957.
Annexure A
Whether the closure of the factory is justified; if not, whether the workmen should be reinstated and compensated and what should be the quantum of compensation,
By order of the Governor of Bihar
S/d. C. L. Raza 15/1
Under Secretary to Government
The submission made on behalf of the petitioner is that this notification is ultra vires and without jurisdiction because there could be no industrial dispute within the meaning of Sec.2 (k) of the Industrial Disputes Act after a real and bona fide closure of the factory by the petitioner. It is prayed on behalf of the petitioner that there should be a writ in the nature of mandamus commanding respondent No. 2, namely, the Presiding Officer of the Labour Court at Ranchi, not to take further proceedings under the Government notification.
2 There is no counter-affidavit on behalf of the respondents. There is no appearance on behalf of respondent No. 3, namely, the workmen represented by the Santhal Parganas Bidi Labour Union, Deoghar, and the allegation of the petitioner that the closure of the business was real and bona fide has not been controverted.
3. The main submission made by learned counsel On behalf of the petitioner is that the notification of the State Government made under Sec.10 (1) of the Industrial Disputes Act is ultra vires and without jurisdiction, because there was a real and bona fide closure of the factory on 30-5-1957, and there
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
