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2008 Supreme(Cal) 945

IN THE HIGH COURT OF CALCUTTA
MR. JUSTICE PRANAB KUMAR CHATTOPADHYAY, MR. JUSTICE TAPAN MUKHERJEE
Birla Corporation Ltd. (Unit Soorah Jute Mill) Sramik Union
Versus
Birla Corporation Ltd. and Others
F.M.A. No. 255,549 and 548/2007
Decided on : September 23, 2008

Advocates appeared:
For Appearing Parties: Kalyan Kumar Bandyopadhyay Partha Bhanja Chowdhury, Nilay Sengupta Indranil Karfa, Biswajit Konar, Balai Chandra Roy, Milan Chandra Bhattacharya, Sandip Srimani Gautam Banerjee, Gautam Chakraborty, Bhaskar Sen, S.P. Sarkar, Samit Talukdar R.N. Majumder, H.P. Roy Chowdhury, D.N. Shanna, N. Rakshit, Bikash Ranjan Bhattacharrya, Partha Sarathi Sengupta, Arunava Ghosh, D. Ghosh, S. Majumder, Sakti Nath Mukherjee, Anindya Kumar Mitra

Shifting of an industrial establishment, on its own, does not constitute an industrial dispute unless it affects the employment or the terms of employment or the conditions of labour of any person.

Headnote:

INDUSTRIAL DISPUTE - SHIFTING OF JUTE MILL - JUSTIFICATION - JURISDICTION OF INDUSTRIAL TRIBUNAL - Section 2(k), 10 of Industrial Disputes Act, 1947.

Fact of the Case:

The dispute arose when the management of Soorah Jute Mill decided to shift the mill from Kolkata to Birlapur, 24-Parganas (South). The State Government asked the management to submit the consent of the workers' union for the proposed shift, but the management declined. The Additional Labour Commissioner started negotiations to resolve the disputes but could not resolve them and submitted his report to the appropriate authority of the State Government. The Government of West Bengal referred the dispute relating to the justification of the proposed shift to the First Industrial Tribunal for adjudication.

Finding of the Court:

The Court held that the shifting of the jute mill itself cannot constitute an industrial dispute and quashed the order of reference made by the Government. The Court observed that the decision of the management to shift the industrial establishment cannot give rise to the existence of an industrial dispute, and the appropriate Government lacks power to make any reference without being satisfied about the existence of an industrial dispute.

Issues: 1. Whether the dispute referred by the impugned order of reference is an 'industrial dispute' within the meaning of Section 2k of the Industrial Disputes Act? 2. Whether the shifting of the jute mill itself can constitute an industrial dispute?

Ratio Decidendi: 1. An industrial dispute is defined as any dispute or difference between employers and employers, or between employers and workmen, or between workmen and workmen, which is connected with the employment or non-employment or the terms of employment or with the conditions of labour, of any person. 2. Shifting of the jute mill, on the face of it, cannot constitute an industrial dispute as the same ipso facto does not give rise to any dispute or difference with regard to employment or non-employment or terms of employment or with the conditions of labour of any person. 3. The employer has an inherent right to choose his place of business, and shifting of the place of employment does not amount to closure, which is associated with the concept of loss of employment.

Final Decision: The Court dismissed the appeals filed by the State of West Bengal and two other Trade Unions, upholding the judgment of the learned single Judge who had allowed the writ petition filed by the Birla Corporation Limited and quashed the order of reference made by the Government.

Judgment

Per PRANAB KUMAR CHATTOPADHYAY, J.

All the three appeals have been preferred from the same judgment and order passed by the learned single Judge at the instance of the State of West Bengal and two other Trade Unions of one Jute Mill respectively. We have heard these appeals analogously and the same are also disposed of by this common judgment.

2. The principal question of law to be decided in these appeals is whether the dispute referred by the impugned order of reference is an 'industrial dispute' within the meaning of Section 2k of the Industrial Disputes Act?

3. The facts leading to these appeals are briefly narrated hereinafter:

The respondent/writ-petitioner Birla Corporation Limited being the owner of Soorah Jute Mill decided to shift the said Jute mill to Birlapur, 24-Parganas (South) and the Managing Director of the said company submitted its aforesaid proposal for shifting the said jute mill to the State Government in the year 2001.

4. The State Government, however, by a written communication dated February 27, 2002 asked the said writ petitioner to supply certain information for the purpose of taking decision over the aforesaid proposal of the writ petitioner and one of the requirements mentioned therein was "consent of worker's union" in favour of the aforesaid proposal of shifting of the jute mill.

5. The writ petitioner, however, declined to submit the consent of the worker's union and observed that the same would not be purposeful. The Additional Labour Commissioner of the State of West Bengal started negotiations to resolve the disputes which arose out of the aforesaid proposal of the management for shifting the jute mill. The Additional Labour Commissioner could not, resolve the disputes and ultimately, submitted' his report in this regard to the appropriate authority of the State Government.

6. The Government of West Bengal thereafter by the order dated December 19, 2005 referred the dispute relating to the under mentioned issues to the First Industrial Tribunal for adjudication:

(1) Whether the proposed shifting of the Jute Mill locate at 102, Narkeldanga Main Road, Kolkata - 54 to Birlapur 24 Parganas (South) by the management is justified:

(2) To what relief, if any, are the Workmen entitled?

7. The Birla Corporation Limited challenged the aforesaid reference before this Hon'ble Court by filing a writ petition and the learned single Judge upon hearing the parties allowed the said writ petition by the judgment and order under appeal.

8. The learned single Judge while allowing the writ petition specifically held that shifting of the jute mill itself cannot constitute an industrial dispute and quashed the order of reference.

9. Learned Advocate General appears on behalf of the appellant-State of West Bengal in the appeal bearing F.M.A. No. 548/2007 and submits that the decision of the learned single Judge to quash the reference made by the Government was not based on undisputed obvious facts and the said decision of the learned single Judge cannot be supported even from the facts apparent from the writ petition and documents annexed to it. Learned Advocate General also submits that the order of reference dated December 19, 2005, if closely scrutinised, will make it clear that the issue relating to the justification of the decision of the management with regard to the proposed shifting of the jute mill has been referred to the Industrial Tribunal by the Government in a particular context. The learned Advocate General further submits that the purport of the issues framed in the reference is to be interpreted in the context of such statement.

10. Referring to the issues referred for adjudication by the order of reference, learned Advocate General submits that the word "justification" is a word of wide import and encompasses within itself various aspects of the disputes. According to the learned Advocate General, the question of "justification" is not directed against the Management's decision but from the angle of the





















































































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