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2026 Supreme(Gau) 918

THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) 
RAJESH MAZUMDAR, J. 
The Management Of Assam Carbon Products Ltd. Rep. By Its Managing Director - Petitioner
Versus
The Assam Carbon Workers And Employees Union – Respondent 
WP(C) 3275 of 2019 
Decided On : 15-05-2026

Advocates Appeared:
For the Petitioner: Mr. P.K. Tiwari Mr. S.N. Sarma Mr. K. Kalita Mr. C. Basumatary Mr. M. Hussain
For the Respondent: Mr. A. Dasgupta Mr. R. Sarkar Mr. B. Das Ms. B. Das.

A lockout declared as a necessary response to an illegal and unjustified strike involving violence is legally justified. Consequently, workers are not entitled to back wages for the lockout period, particularly when the claim for such wages is raised after an unreasonable delay.

Headnote:(A) Industrial Disputes Act, 1947 - Section 24(3) - Illegal strike - Justified lockout - Back wages - Apportionment of liability.

(B) Labour Law - Lockout justification - When a strike is found to be unjustified, a lockout declared as a necessary defensive measure against violence, obstruction, and threat to property cannot be termed illegal or unjustified; consequently, workers are not entitled to wages for such a period. (Para 37)

(C) Limitation and Delay - Service-related claims for back wages filed after a significant lapse of time are liable to be rejected on the grounds of delay and laches as relief should be sought within a reasonable timeframe. (Para 38)

Facts of the case:
An industrial establishment faced prolonged unrest involving go-slow tactics, violence, and illegal strikes. Following failed conciliation efforts and numerous notices, a lockout was implemented to secure personnel and machinery. The labour court found the strike to be unjustified, yet held the lockout was also unjustified, directing payment of fifty percent back wages. The employer challenged this award in the high court.

Findings of Court:
The court determined the lockout was a direct consequence of an illegal and violent strike, making the management's actions justified. The labour court erred in apportioning blame and ignoring the unreasonable delay in raising the dispute regarding back wages for a closed period.

Issues: The primary issues centered on the justification of a lockout following an illegal strike, the claim for back wages during the period of non-operation, and the impact of delayed litigation on the validity of such claims.

Ratio Decidendi: A lockout resulting from an illegal and unjustified strike initiated to protect property and personnel from violence is lawful. If the strike is the proximate cause of the lockout, workers are not entitled to wages. Furthermore, claims regarding back wages must be brought promptly; a five-year delay renders the claim stale and unworthy of relief.

Result: Writ petition allowed. The award of the labour court granting back wages is set aside.

Table of Content
1. historical factual background of industrial disputes and repetitive agitation impacting production. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16)
2. analysis of the labour court's justification for apportioning blame in labor disputes. (Para 17 , 18 , 19 , 20 , 21)
3. conflicting arguments regarding the justification of a lockout following illegal strike actions. (Para 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31)
4. application of judicial precedents to distinguish legal from illegal lockouts and wage entitlement. (Para 32 , 33)
5. lockout justified by illegal strike; back wages denied due to stale claims and union fault. (Para 34 , 35 , 36 , 37 , 38 , 39 , 40)

JUDGMENT:

RAJESH MAZUMDAR, J.

Heard Mr. P.K. Tiwari, learned Senior counsel assisted by Mr. K. Kalita, learned counsel appearing for the petitioner, Mr. A. Dasgupta, learned senior counsel assisted by Mr. R. Sarkar, learned counsel appearing for the respondent. 2. The present writ petition has been filed by the Management of Assam Carbon Products Limited being aggrieved by the Award dated 03.05.2018, passed by the learned Labour Court in Reference Case No. 4 of 2017, whereby the learned Labour Court had taken a view that although the strike resorted to by the Assam Carbon Workers and Employees Union was illegal and in violation of the provisions of Section 24(3) of the Industrial Disputes Act, 1947, it was simultaneously held that the lockout declared by the management from 7.12.2010 to 8.3.2012, was also illegal. The learned Court had awarded 50% wages to be paid to the workers for the lockout period.

3. Assam Carbon Products Limited is a company engaged in the manufacture of carbon blocks, carbon brushes, and mechanical carbon. It has its factory and registered office at Birkuchi, Narangi, Guwahati, in the district of Kamrup Metro, Assam. The company is registered under the Companies Act, having its corporate office in Kolkata.

4. It is the case of the petitioner that during the year 2006, and in the early part of 2007, the production in the factory at Birkuchi had come down to an all- time low. On the suggestion of the Workers’ Union, a study was conducted to assess the capabilities of the machines and the productivity at the factory. A report was submitted by the National Productivity Council, which had conducted the study, and as per the report, the machines of the factory were stated to be under-utilized, and the production ought to have been double what was being produced at that date.

5. It is the allegation in the writ petition that the workers had resorted to concerted go-slow methods, indiscipline, lawlessness and absenteeism at the instigation of the Union during that period. At the intervention of the Labour cum Conciliation Officer, who was approached by the Management of the company, a settlement between the Management and the Union was arrived at on 15.10.2007. By the aforesaid settlement, disputes pending till that date were taken to be resolved.

6. Despite the intervention of the Assistant Labour Commissioner on the agitational programs resorted to by the workers of the unit and despite the settlement having been arrived at, the workmen resorted to a lightning strike on and from 27.11.2007, which continued till 29.11.2007. The Management had to declare a lockout in the factory thereafter, with effect from 29.11.2007. After a series of conciliation parleys, a memorandum of settlement was arrived at between the Management and the Assam Carbon Staff and Workers Union before the Labour Commissioner cum Conciliation Officer, Assam, on 23.07.2008, wherein it was agreed that the wages for the period of the strike and the lockout would be governed by the principle of “No Work No Pay”. In view of the settlement, the lockout was lifted on 24.07.2008. It is the case of the petitioner that although the respondent-Union had initially participated in the conciliatory proceedings, they refused to be a party to the settlement

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