IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
NIRZAR S. DESAI, J.
Factory Manager Saurashtra Chemicals – Appellant
Versus
Shree Saurashtra Chemicals Mazdoor Sangh & 1 Others – Respondents
R/Special Civil Application No. 5422 of 2017 With R/Special Civil Application No. 13366 of 2019
Decided on : 16-11-2022
Unfair Labour Practice - Industrial Disputes Act - [Regularization, Permanency, Unfair Labour Practice] - [Section 18 of the Industrial Disputes Act, MRTU and PULP Act, Article 14 and 16 of the Constitution of India] - The Industrial Tribunal granted the benefit of permanency to the workmen based on completion of 240 days of work, similarity of work to permanent employees, and unfair labour practice by the company. The court held that the private company's discretion in determining the requirement of workers does not absolve it from unfair labour practices. The court also rejected the argument that the company's past financial status as a sick unit should prevent any direction of permanency that may increase financial burden.
Fact of the Case:
The petitioner, a division of Nirma Limited, challenged orders granting permanency to workmen who completed 240 days of service. The workmen claimed unfair labour practice and similarity of work to permanent employees. The company argued against regularization based on completion of 240 days and its discretion in determining worker requirement.
Finding of the Court:
The court dismissed the petitions, upholding the Industrial Tribunal's decision. It found that the Tribunal considered unfair labour practice and similarity of work, and that the private company's discretion does not absolve it from unfair labour practices. The court rejected the argument that the company's past financial status as a sick unit should prevent any direction of permanency that may increase financial burden.
Issues: The issues involved the grant of permanency to workmen, unfair labour practice, similarity of work to permanent employees, and the private company's discretion in determining worker requirement.
Ratio Decidendi: The court held that the private company's discretion in determining the requirement of workers does not absolve it from unfair labour practices. The court also rejected the argument that the company's past financial status as a sick unit should prevent any direction of permanency that may increase financial burden.
Final Decision: The court dismissed the petitions, upholding the Industrial Tribunal's decision to grant permanency to the workmen based on completion of 240 days of work, similarity of work to permanent employees, and unfair labour practice by the company.
JUDGMENT :
1. Heard learned Senior Advocate Mr. K.M. Patel for learned advocate Mr. Nirav Joshi for Gandhi Law Associates for the petitioner and learned advocate Mr. T. R. Mishra for the respondent of Special Civil Application No. 5422 of 2017 and learned advocate Mr. B. M. Mangukiya for the respondent in Special Civil Application No. 13366 of 2019.
2. By way of Special Civil Application No. 5422 of 2017, the petitioner has challenged the order dated 11.01.2017 passed by the Industrial Tribunal, Jamnagar below Exh. 162 in Reference (IT) No. 72 of 2012 (Old No. 330 of 2000) whereby the Tribunal was pleased to allow the reference of the workmen partly and granted them the benefit of permanency from the date on which they completed 240 days service. For deceased workmen, the Tribunal directed that their case would be governed as per the provisions of the Section 18 of the Act.
3. By way of Special Civil Application No. 13366 of 2019, the petitioner has challenged the award dated 02.01.2019 passed by the Industrial Tribunal, Jamnagar below Exh. 59 in Reference (IT) No. 73 of 2012 (Old No. 331 of 2000) whereby while partly allowing the reference of the workmen, the Tribunal held that except those workmen who expired or those who have taken voluntarily retirement; rest of the workmen shall be given the benefit of permanency by treating the period prior to the date of award as notional period.
4. Being aggrieved and dissatisfied with the aforesaid two orders, both the respective petitions are preferred.
5. Both the matters were finally heard with the consent of the counsels appearing for the parties on 08.11.2022 and were listed for dictation of judgment on 10.11.2022 and today i.e. on 16.11.2022.
6. Brief facts giving rise to Special Civil Application No. 5422 of 2017 can be summarized as under:-
6.1 It is the case of the petitioner that petitioner Company is engaged in the business of manufacturing various chemicals and at present it is division of Nirma Limited.
6.2 On 26.06.1998, the respondent no. 1 – Union addressed the letter to Government Labour Officer, Porbandar and raised the demand of regularization of 12 workmen. Thereafter, on 22.07.1999, the respondent – Union raised a demand by way of demand letter addressed to the petitioner – Company and demanded regularization of the workmen who were working in the Soda Godown Department and have completed 240 days. While another letter dated 27.09.1999 addressed to the Assistant Labour Commissioner, Porbandar, the respondent – Union included 13 more workmen in the said demand for regularization. Ultimately, Conciliation Case no. 3 of 1999 was registered. However, on failure of conciliation, Deputy Labour Commissioner, Rajkot sent the demand to Industrial Tribunal, Rajkot for adjudication and the same culminated in reference (IT) No. 313 of 2000. Subsequently, when the matter was transferred to Industrial Tribunal, Jamnagar, it was renumbered as Reference (IT) No. 72 of 2012.
6.3 In the aforesaid reference, the petitioner – Company opposed the statement of claim by filing the written statement and opposed the demand raised by Union by submitting that the respondent workmen are causal and daily wage workers and hence, they are not entitled to regularization even if they have completed 240 days. Ultimately, at the time of evidence, out of 48 workmen, only a few workmen were examined. It was the case of the petitioner – Company before the Industrial Tribunal that each of the workman was required to be examined and for that even an application also was given by the petitioner - Company which was subsequently not pressed by the petitioner – Company.
6.4 Same way, the workmen also preferred an application for production of muster roll. However, said application was partly allowed and Industrial Tribunal, Rajkot vide order dated 08.07.2011 directed the present petitioner to produce either muster roll or statement of the presence of the workmen from the date on which they were appointed till the dat
Abad Dairy V/s. Manjibhai Dhanjibhai reported in 2000 (3) GLH 409
Sabha Shanker Dube V/s Divisional Forest Officer and Others
Gangadhar Pillai V/s. Siements Ltd. reported in (2007) 1 SCC 533
M/s. Parry and Co. Ltd V/s. P. C. Pal, Judge on the Second Industrial Tribunal
Sabha Shanker Dube V/s Divisional Forest Officer and Others reported in (2019) 12 SCC 297
Private companies cannot use discretion to justify unfair labour practices, and past financial status as a sick unit does not prevent directions of permanency that may increase financial burden.
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Regularization of service requires proof of unfair labor practices; long service alone does not confer entitlement without due procedure.
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The main legal point established in the judgment is that the failure to regularise the service of a workman, despite the availability of vacant posts, constitutes unfair labor practices under Section....
The court upheld the Tribunal's awards for employee regularization, emphasizing the prohibition of unfair labor practices under the Industrial Disputes Act, while clarifying the need for state approv....
The obligation of the employer to regularise the service of workmen and the prohibition against unfair labour practices under Section 25T of the Industrial Disputes Act 1947.
The main legal point established in the judgment is that the municipality's actions constituted unfair labor practice, justifying the regularisation of the respondent-workman's service. The court emp....
The obligation of the employer to accommodate the workman, the power of the Labour Court to grant relief, and the legal principles related to unfair labour practices and regularisation.
The main legal point established in the judgment is the obligation of the employer to absorb workmen as permanent employees in cases of unfair labor practices, as provided in the Industrial Disputes ....
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