SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2017 Supreme(Del) 3612

IN THE HIGH COURT OF DELHI AT NEW DELHI
C.HARI SHANKAR, J.
M/S. Dujodwala Resins & Terpenes – Petitioner
Versus
Govt. of NCT of Delhi & Ors. – Respondents
W.P (C) No. 14502 of 2004
Decided On : 14-09-2017

Advocates Appeared:
For the Petitioner: Mr. Ashok Mathur with Ms. Nidhi Agarwal, Advs.
For the Respondent: Mr. Abhay Singh & Ms. Chiral Dugar, Advs.

Headnote:

Writ petition challenging attempt to enforce an award against the petitioner, which was not a party to the proceedings before the Labour Court, and had no connection with the company against whom the award was passed. Held, the impugned notice seeking to enforce the award against the petitioner is quashed.

Fact of the Case:

The petitioner, a public limited company, received a notice from the Implementation Cell of the Labour Department, seeking to enforce an award passed by the Labour Court against M/s Naval Store Corporation, a company with which the petitioner had no connection. The petitioner responded that it had never employed the workman in question and was not aware of the award. Subsequently, a writ of demand was issued by the Tehsildar/Sub Divisional Magistrate to M/s Dujodwala Industries, at the petitioner's address, for recovery of dues on account of the workman. The petitioner filed a reply denying any liability and stating that M/s Dujodwala Industries was a separate legal entity. The Assistant Collector issued a notice to the petitioner, directing it to appear and deposit the amount due, failing which the amount would be recovered by attachment and sale of its movable and immovable property.

Finding of the Court:

The court found that the petitioner was not a party to the proceedings before the Labour Court and had no connection with M/s Naval Store Corporation. The award, therefore, could not be enforced against the petitioner. The court also found that the notice issued by the Assistant Collector was arbitrary and without any basis. The court held that the impugned notice was vitiated ab initio and deserved to be quashed.

Issues: Whether the award passed by the Labour Court against M/s Naval Store Corporation could be enforced against the petitioner, which was not a party to the proceedings and had no connection with the company.

Ratio Decidendi: The court held that the principle of piercing the corporate veil could not be applied in the present case, as the petitioner was a separate legal entity from M/s Naval Store Corporation. The court also held that the notice issued by the Assistant Collector was arbitrary and without any basis.

Final Decision: The court allowed the writ petition and quashed the impugned notice seeking to enforce the award against the petitioner.

JUDGMENT :

1. Unusually, the present writ petition lays a challenge, not to any award, as such, but to the attempt, of the Respondents 1 and 2, to enforce, against the petitioner, an award, dated 07th July,1987, passed by the Labour Court in ID 20/1982 with which, according to the petitioner, it is in no way concerned.

2. Vide Certificate of Incorporation issued by the Registrar of Companies, Maharashtra (hereinafter referred to as “the ROC”), the petitioner-Company was incorporated, on 17th November 1976, as a private limited Company, under the name “M/s Dujodwala Resins & Terpenes Pvt. Ltd”. It became a deemed limited Company, viz. “M/s Dujodwala Resins & Terpenes Ltd”, on 16th February 1989, and an amended Certificate of Incorporation was, accordingly, issued by the ROC, under which name and style it continues till date. The office of the petitioner was – and is – located at No. 1206, Vijaya Building, 12th Floor, 17, Barakhamba Road, New Delhi – 110 001, and its factory is situated at Industrial Complex, Bari Brahmana, Jammu.

3. It is the assertion of the petitioner that, out of the blue as it were, the petitioner received a notice, dated 27th February, 2003 from the Implementation Cell of the Labour Department, Government of National Capital Territory of Delhi (GNCTD), (impleaded as Respondent No.2 herein) alleging that the petitioner had defaulted in implementing the aforementioned award dated 07th July, 1987 passed by the Labour Court in ID 20 of 1982 (Management of M/s. Naval Store Corporation v. its workman Sh. Vishambar Dutt).

4. Before advancing further with the story, as recited by the petitioner before this Court, it would be necessary to briefly advert to the aforementioned Award, dated 07th July 1987, which constitutes, as it were, the proverbial apple in the petitioner’s garden of Eden.

5. A perusal of the Award, dated 07th July 1987, (which constitutes Annexure P-1 to the writ petition) reveals that it was passed consequent on the reference, of “an Industrial Dispute existing between the management of M/s Naval Store Corporation and its workman Shri Vishambar Dutt”, to the Labour Court, by the Secretary (Labour), Delhi Administration, vide Notification No. F. 24 (1816)/81-Lrd dated 15th November 1981. The terms of reference read thus:

“Whether the termination of services of Shri Vishambar Dutt is illegal and/or unjustified, and if so, to what directions are necessary in this regard?”

6. Be it noted, here, that the parties, before the Labour Court, were “The Management of M/s Naval Store Corporation” and “Its workman Shri Vishambar Dutt”, and that, consequent to framing of issues, by the Labour Court, on 23rd May 1985, the management was proceeded ex-parte on 19th December 1985 and, thereafter, an application, filed by the management, for setting aside the order proceeding, against it, ex-parte, was also dismissed, by the Labour Court.

7. The Award, dated 07th July 1987, further notes that, in his ex-parte evidence, as recorded by the Labour Court, Vishambar Dutt (who was arrayed, later, as Respondent No. 4) deposed that

(i) he had been in the employment of the management since 12th March 1978, as Senior Store Keeper, on a monthly salary of Rs.310/-,

(ii) he had, however, not been given any appointment letter by the management,

(iii) the management, without any reason, did not pay him from December 1980 to February 1981,

(iv) on 3rd March 1981, when he demanded his wages thus withheld by the management, his services were terminated, w.e.f. 5th March 1981,

(v) his signatures were, for the said purpose, forcibly obtained on a “resignation letter”,

(vi) he had not been served any notice or charge-sheet, and no enquiry was held against him, and

(vii) he had been unemployed since the date of his termination.

8. No other evidence being forthcoming, the Labour Court, vide the Award dated 7th July 1987, held that Respondent No. 4





































































































































































Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

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

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top