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2024 Supreme(Gau) 1180

IN THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
KAUSHIK GOSWAMI, J.
The Management Of Assam Carbon Products Ltd. – Appellant
Versus
The Assam Carbon Workers And Employees Union And Anr - Respondent
WP(C) 1744 of 2018
Decided on : 23-09-2024

Advocates:
Advocate Appeared:
For the Appellant :MR S N SARMA SENIOR ADVOCATE, MR. P K TIWARI,MR. A JAHID, MR. K KALITA
For the Respondent: MR A DASGUPTA, MS. B DAS,MR. B DAS,MR. R SARKAR

Headnote:(A) Industrial Disputes Act, 1947 - Sections 10(c) and 18(3) - Writ petition under Article 226 challenging Labour Court's Award in Reference Case No. 02/2017 regarding payment of Rs. 1,00,00,000/- to workmen - The Labour Court erred in questioning authenticity of the Memorandum of Settlement (MoS) dated 21.02.2012, and its findings lacked evidence supporting that workmen had fulfilled productivity norms set by NPC. The terms of the settlement being binding cannot be contradicted post hoc by the Labour Court. - Writ petition succeeds leading to award's nullification due to the Labour Court acting beyond jurisdiction and resulting in perverse findings. (Paras 74, 75, 76)

(B) Jurisdiction - The Labour Court must do so within the confines of its terms of reference; no scope for addressing issues outside said reference. Burden of proof regarding compliance with MoS rests on workmen. (Paras 54, 68)

(C) Certiorari Jurisdiction - High Court’s role is to ensure the correct application of law, not to substitute its own interpretations or factual conclusions for those of lower tribunals. (Paras 72, 73)

Facts of the case:
The dispute arose post non-payment of Rs. 1 crore lumpsum agreed in MoS due to failure of workmen to achieve productivity norms following a lockout. The Labour Court ruled in favor of workmen, the employer challenged this ruling.

Findings of Court:
The Court found that the Labour Court's Award was based on a misinterpretation of terms and lacked sufficient factual evidence supporting workmen’s claims.

Issues: The main issues were the compliance to the productivity norms by the workmen and the legitimacy of the Award rendered by the Labour Court.

Ratio Decidendi: The Court held the Memorandum of Settlement was binding, and the Labour Court misapplied legal standards concerning jurisdiction and evidentiary burden.

Result: The impugned Award set aside and writ petition allowed.

Table of Content
1. overview of the dispute and settlement details. (Para 2 , 3 , 4 , 5 , 6)
2. petitioner's arguments regarding the labour court's errors. (Para 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16)
3. respondents argue the binding nature of the settlement. (Para 37 , 38 , 39 , 40 , 41)
4. court's assessment of jurisdiction and procedural adherence. (Para 48 , 49 , 50 , 51 , 52 , 53)
5. emphasis on binding nature of settlements under the law. (Para 60 , 61 , 62 , 63 , 64)
6. court's final observations on productivity norms and entitlement. (Para 66 , 67 , 68 , 69 , 70)
7. final judgment and consequences of the court's decision. (Para 74 , 75 , 76)

JUDGMENT :

1. Heard Mr. P.K. Tiwari, learned Senior Counsel for the petitioner assisted by Mr. K. Kalita, learned counsel and Mr. A. Dasgupta, learned Senior Counsel for the respondent, assisted by Ms. B. Das, learned counsel.

2. By filing this petition, under Article 226 of the Constitution of India, the petitioner is assailing the Award dated 25.01.2018 passed by the Labour Court, Guwahati in Reference Case No. 02/2017 published by Letter No. GLR.20/2017/2024 dated 17.02.2018.

3. The brief facts of the case are as hereunder:-

The Government of Assam in exercise of its power conferred under Section 10 (c)(e) of the Industrial Dispute Act, 1947, referred a dispute before the Labour Court of Assam at Guwahati for its adjudication with the following terms of reference:-

    i) Whether the management of M/S Assam Carbon Products Limited, Birkuchi, Narengi, Guwahati 781026 is justified in denying the payment of Rs. 1,00,00,000/- (Rupees one crore) only committed in terms 2 (d) of the Memorandum of Settlement (MoS) dated 21.02.2012 to the Workmen now?

    ii) If not, whether the workmen are entitled to the committed amount?

4. Upon receipt of the aforesaid reference, the Labour Court registered a reference case being Reference Case No. 2/2017 whereupon notices were issued to the Management of Assam Carbon Products Limited and to Assam Carbon Worker’s & Employees Union, Guwahati.

5. Pertinent that by the settlement referred in the Memorandum of Settlement (MoS) dated 21.02.2012, a lock out was lifted. Prior to that there was another lock out from 20.09.2007 to 24.07.2008 and the present settlement is with regard to the second lock out.

6. Both the parties submitted their written statement before the Labour Court whereafter the Labour Court adjudicated the said reference and rendered its Award on 25.01.2018 answering the reference in favour of the Union which was thereafter published by the Government of Assam on 17.02.2018. Aggrieved by the aforesaid Award, the present writ petition has been filed by the Management.

7. Mr. P.K. Tiwari, learned Senior Counsel submits that the impugned Award is perverse and that the Labour Court misread and misinterpreted the condition of settlement. He further submits that the Labour Court acted beyond its jurisdiction by questioning the MoS by observing that the Management did not make an effort to bring at least one of the signatories to the MoS dated 21.02.2012 from the side of Workmen to show that the said document was executed by the signatories after their full knowledge to the document and it was understandable to the person of ordinary prudence. In support of the aforesaid submission, he relies upon the decision of the Apex Court in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited & Others, reported in (1976) 4 SCC 736.

8. He further submits that the Labour Court by doubting the Settlement dated 21.02.2012, has travelled beyond the terms of reference and therefore committed manifest error. In support of the aforesaid submission, he relies upon the following decisions of the Apex Court:-

    i) Oshiar Prasad & Others Vs. Employers in relation to Management of Sudamdih Coal Washery of M/S Bharat Coking Coal Limited, Dhanbab, Jharkhand, reported in (2015) 4 SCC 71 (para 22).

    ii) Delhi Cloth & General Mills Co. Limited Vs. Workmen & Others, reported in AIR

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