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2025 Supreme(Guj) 1322

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
SUNITA AGARWAL, CJ., D.N. RAY, J.
 
Arkray Healthcare Private Limited - Petitioner 
Versus 
Surat Jilla Employees Union & Ors. – Respondents 
R/Special Civil Application No. 3847 of 2025 
Decided On : 14-07-2025
 

Advocates Appeared:
For the Petitioner:Mr. G.M. Joshi, Sr. Advocate With Mr. Kartik H. Bhatt, Advocate With Mr. Sushil R. Mishra.
For the Respondents: Ms. Hetal Patel, AGP, Mr. M.N. Marfatia.

The court upheld the Industrial Tribunal's award of a 12% pay increase based on justifiable economic considerations, denying the petitioner's claims of illegality in reference and maintaining the Tribunal's jurisdiction despite typographical issues.

Headnote:(A) Industrial Disputes Act, 1947 - Section 39 - Writ under Article 226 of the Constitution - Industrial Tribunal awarded 12% pay increase; petitioner contested - Upward revisions of pay and allowances were contentious after failed negotiations between company and workers' union. (Para 2)

(B) Jurisdiction and Authority - The reference made to the Deputy Labour Commissioner was argued to be illegal due to alleged errors; however, the court found no grounds for dismissal based on typographical mistakes alone. (Para 6)

(C) Award’s Reasonableness - Court affirmed that since the worker's demands were initially 30% but 12% was awarded, it was a reasonable compromise reflecting company performance improvements. (Para 7)

Facts of the case:
The case arose from a dispute between a manufacturing company and its workers' union regarding pay increases and benefits after unsuccessful settlement attempts. Respondent union consisted of only a fraction of the workforce. (Para 2.3)

Findings of Court:
The Tribunal's award of a 12% increase and additional allowances was held valid and justified based on company performance and negotiation outcomes. (Paras 7)

Issues: The key issues involved the legality of the Tribunal's jurisdiction and the appropriateness of the award given the demands of the workforce.

Ratio Decidendi: The court emphasized that procedural errors do not void legitimate claims and upheld the Tribunal's authority to determine fair pay adjustments based on negotiations. (Paras 6, 7)

Result: Writ petition dismissed, upholding the Tribunal's award.

Table of Content
1. arguments by parties regarding the award. (Para 3 , 4 , 5)
2. court's commentary on petitioner's objections. (Para 6)
3. court's reiteration of industrial award justification. (Para 7)
4. final dismissal of the petition. (Para 8)

ORDER :

D.N. RAY, J.

1. Heard Mr. G.M. Joshi, learned Senior Advocate with Mr. Kartik H. Bhatt, learned Advocate with Mr. Sushil R. Mishra, learned Advocate for the Petitioner, Mr. M.N.Marfatia, learned Advocate for the Respondent No.1 and Ms.Hetal Patel, learned Assistant Government Pleader for the State -Respondent.

2. Brief facts of the case are as under:

2.1 The petitioner is a company engaged in the business of manufacturing invitro diagnostic kits and reagents. The present dispute originates from an industrial disagreement raised by Respondent No. 1, a recognized workers' union, after efforts to resolve differences during several conciliation meetings on a charter of demands proved unsuccessful. The said charter was initially submitted by Respondent No. 1 before the Assistant Labour Commissioner and Conciliation Officer, Surat.

2.2 Upon failure to arrive at a settlement, Respondent No. 1, through a communication dated 25.03.2022, sought intervention from the said authority. Consequently, the Deputy Labour Commissioner, Surat, by letter dated 18.06.2022, referred the matter to the Industrial Tribunal, Surat, which came to be registered as Reference (I.T.) No. 15 of 2022.

2.3 The respondent union filed a claim statement raising 31 demands, which include:

(1) a 30% upward revision in basic pay for the year 2020-2021 as well as 2021-22, (2) revision of residential rent allowance, (3) an increase in special allowances, (4) annual medical allowance, (5) revisions in leave structure, (6) an increase in the retirement age, (7) leave travel allowance, (8) shift duty allowances, (9) group insurance premium, (10) compensation for families of deceased workers, (11) festival advance, (12) food grain advance, (13) interest-free home loans, (14) provision of winter and monsoon wear, (15) filling of vacant posts, (16) special duty allowances, (17) education allowance, (18) transport or petrol cost compensation, (19) bonus provisions, (20) revision of gratuity, (21) coverage of medical expenses for duty-related injuries, (22) an increase in company-provided loans, (23) regularization of contract workers, (24) equal pay for outsourced employees, (25) equal pay and benefits for temporary workers, (26) allocation of a staff welfare fund, (27) benefits for differently-abled workers, (28) COVID-19 insurance, (29) canteen subsidies (30) a two-year settlement duration, and (31) a COVID-19 prevention scheme.

Subsequently, the respondent union withdrew demands numbered 23 to 25, pertaining to regularization and parity in pay for outsourced and temporary employees.

2.4 The petitioner filed a detailed reply at Exh. 13, disputing the claims made by Respondent No. 1. In its response, it was contended that the demands lacked adequate justification and were untenable in the given context. It was further submitted that the demands were made by only 37 members of Respondent No. 1, out of a total workforce of 472 employees, whereas the remaining employees had accepted the settlement terms voluntarily, including salary increments. The petitioner also placed reliance on the discussions held during meetings on 17.10.2020, 18.12.2021, 25.01.2022, and 02.02.2022, where a 9.5% increment was proposed for the years 2021–22 and 2022–23. These offers, it is contended, were declined by the respondent union allegedly under external influence.

2.5 By way of an award dated 23.09.2024, the Industrial Tribunal, Surat, partly allowed the reference and directed the petitioner to implement a 12% increase in basic pay for the financial years 2020-21 and 2021-22. The award also provided for an additional special allowance of Rs. 3,000, to be disbursed in two equal parts of Rs. 1,500 each for the said years.

3. Aggrieved by the said award dated 23

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