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IN THE HIGH COURT OF DELHI
Dinesh Kumar Sharma, J.
Food Corporation of India Shramik Union - Appellant
Versus
Food Corporation of India - Respondent
W.P.(C) 10440 of 2022 & CM Appl. 30182 of 2022 (stay) and W.P.(C) 10450 of 2022 & CM Appl. 30202 of 2022 (stay)
Decided On : 12-07-2022




Notices served under the Industrial Disputes Act must adhere to prescribed forms, and service conditions remain unchanged during conciliation proceedings.

Headnote:(A) Industrial Disputes Act, 1947 - Section 9-A and Section 19(2) - The notice issued under Section 9-A for unilateral changes in service conditions was found to deviate from the prescribed Form E, and thus not in accordance with the law - The Act must be interpreted to protect workmen's interests, and any change in service conditions shall remain unchanged during the pendency of conciliation proceedings (Paras 5, 8, 10).

(B) Nature of Industrial Disputes - The proceedings must be resolved through the appropriate forum rather than by invoking writ jurisdiction. (Para 4).

Facts of the case:
Writ petitions were filed challenging notices issued for unilateral changes in wages and other service conditions, including exclusion of incentives and HRA from the computation of compensation under the Industrial Disputes Act.

Findings of Court:
The notice dated 20.06.2022 can only be given effect once the conciliation proceedings conclude, safeguarding the status quo till the disputes are adjudicated.

Issues: Whether the notice under Section 9-A complied with legal requirements, and the proper forum to address the grievances of the workmen.

Ratio Decidendi: The court emphasized that proper form must be followed, and it is the responsibility of the employer to adhere to legal obligations during ongoing conciliation prior to any changes in service conditions (Para 8, 10).

Result: Writ petitions disposed of; no effects on service conditions until conciliation is concluded.

Table of Content
1. filing of writ petitions with specific prayers. (Para 1)
2. arguments regarding legality of notice under industrial disputes act. (Para 2 , 3 , 4)
3. requirements for notice under section 9a of the industrial disputes act. (Para 5 , 6 , 8)
4. effect of the notice pending conciliation proceedings. (Para 7 , 9 , 10)
5. disposition of the writ petitions and procedural liberties. (Para 11)

JUDGMENT

Dinesh Kumar Sharma, J. (Oral)--Present writ petitions have been filed with the following prayers:

    i Notice/Order dated 20.06.2022 under Section 9-A of the Industrial Dispute Act, 1947 (21 days' notice) for the UNILITERAL change in service condition applicable to the workman in respect of matters referred in 4th Schedule of the Act i.e. withdrawing the inclusion of incentive in wages for computation of CPF and gratuity qua Departmental Workers.

    ii Notice/Order dated 20.06.2022 under Section 9-A of the Industrial Dispute Act, 1947 (21 days' notice) for the UNILITERAL change in service condition applicable to the workman in respect of matters referred in 4th Schedule of the Act i.e., treating the `Mandal' as handling labour qua Departmental Workers.

    iii Notice/Order dated 20.06.2022 under Section 19(2) of the Industrial Dispute Act, 1947 (2 months' notice) for UNILITERAL modification/termination of the settlement dated 13.03.1999 i.e. exclusion of HRA component from the wages for the computation/calculation of incentives and Over Time Allowance (OTA) qua Departmental Workers.

    iv Notice/Order dated 20.06.2022 under Section 19(2) of the Industrial Dispute Act, 1947 (2 months' notice) for UNILITERAL modification/termination of the settlement dated 03.08.2012 i.e. withdrawing, the payment of A area rates (uniform rate) to all DPS Workers across the country irrespective of place of their posting.

2. Learned counsel for the petitioners submits that W.P.(C) 10440/2022 and W.P.(C) 10450/2022 are identical in nature and these two writ petitions have been filed on behalf of two different associations. Thus, this Court is inclined to dispose of both the writ petitions by a common order.

3. Learned counsel for the petitioners submits that notice dated 20.06.2022 under Section 9-A of the Industrial Disputes Act, 1947 is not in accordance with law. Attention has been invited to Form E as provided under the Industrial Disputes (Central) Rules, 1947. Learned counsel for the petitioners submits that notice(s) under Section 9(A) and Section 19(2) of the Industrial Disputes Act, 1947 are required to be served in the form prescribed under Form E, as provided under the Industrial Disputes (Central) Rules, 1947 and since notice(s) have not been issued in accordance with the proforma, the same are liable to be quashed. Learned counsel for the petitioners further submits that in fact even as per Annexure annexed with the notice dated 20.06.2022, the respondents have stated that the practice of including incentives in the basic wages for computation of CPF contribution and gratuity payment from time to time shall stand modified in terms of Section 9A of the Industrial Disputes (Central) Rules, 1947 and the other relevant legal provisions. Learned counsel for the petitioners submits that this act of the Food Corporation of India is totally contrary to the principles of Industrial Disputes Act, 1947and is liable to be quashed.

4. Learned counsel for Food Corporation of India submits that the present writ petitions are not maintainable as there lies an equally efficacious remedy of raising an industrial dispute in accordance with the Industrial Disputes Act, 1947 before the appropriate forum. Learned counsel for Food Corporation of India submits that in fact some of the Unions have already raised the industrial disputes before the appropriate forum and Food Corporation of India has received the notices from the Office of the Deputy Chief Labour Commissioner (Central), Kolkata and the Office of the Regional Labour Commissioner (Central), New Delhi

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