Judges : T.K.JOSEPH
South India Corporation And Others - Appellant
Versus
All Kerala Cashewnut Factory Workers Federation, Quilon And Others - Respondent
Case No : O. P. No. 376, 381, 382 of 1957
Decided On : 09/09/1959
Advocates Appeared :
M. K. Nambiar; S. Narayanan Potti; N. Palpu; N. K. Varkey; For Petitioners P. Balagangadhara Menon; For 1st Respondent K. V. Surianarayana Iyer; For 2nd Respondent
Industrial Tribunal Award - Challenge - Industrial Disputes Act, Factories Act - S.25-C, S.25-D, S.25-E, S.25-A, S.79 - The court discussed the provisions of the Industrial Disputes Act and Factories Act, particularly S.25-C to S.25-E and S.25-A of the Industrial Disputes Act, and S.79 of the Factories Act. The court emphasized the distinction between lay-off compensation and compensation for unemployment, and the applicability of these provisions to seasonal industries. The court held that the Tribunal erred in awarding compensation for unemployment and quashed the finding on this issue. However, the court upheld the finding on the provision of leave with wages for workers in seasonal industries.
Fact of the Case:
The petitioners sought to quash part of an award given by the Industrial Tribunal, Trivandrum, related to bonus, leave with wages, and compensation for non-employment in cashewnut factories.
Finding of the Court:
The court quashed the finding on compensation for non-employment but upheld the finding on leave with wages for workers in seasonal industries. The court also corrected an error in the award related to holidays with wages for Onam.
Issues: The issues included entitlement to bonus, leave with wages, and compensation for non-employment in seasonal industries.
Ratio Decidendi: The court emphasized the distinction between lay-off compensation and compensation for unemployment, and the applicability of these provisions to seasonal industries. The court held that the Tribunal erred in awarding compensation for unemployment and quashed the finding on this issue. However, the court upheld the finding on the provision of leave with wages for workers in seasonal industries.
Final Decision: The original petitions were allowed to the extent indicated above and dismissed in other respects. The court directed the parties to bear their own costs.
1. The petitioners in the three petitions seek to have part of an award given by the Industrial Tribunal, Trivandrum, quashed under Art.226 of the Constitution.
2. The facts necessary for the decision of these petitions may be briefly stated: On 24th October, 1951 the Government of Travancore-Cochin referred to the Industrial Tribunal certain disputes between the workmen in cashewnut factories represented by the first respondent, the All Kerala Cashewnut Factory Workers' Federation, Quilon and 31 owners of cashewnut factories in the State. The order of reference
specified 13 issues in dispute between the parties. The Industrial Tribunal, Trivandrum the second respondent, gave an award which was published on the 20th of August 1957. The award in respect of issues Nos. 4, 9 and 13 is questioned by all the petitioners. The petitioner in O.Ps. Nos. 381 & 382 of 1957 further challenge the correctness of the award in respect of bonus. The original petitions thus relate to the award in respect of the following issues:
"[2] Are the workmen entitled to any bonus in excess of what the employers have paid for the year 1125?
[3] Are the workmen entitled to any bonus in excess of what the employers have paid for the year 1126?
[4] Are the workmen to be given one day's leave with wage for every twenty days work irrespective of any other consideration.
[9] Are the workmen entitled to any sick leave or festival holidays with pay ?
[13] Are the workmen entitled to any compensation during the period for which the factories remain closed for reasons beyond the control of the management?"
3. The Industrial Tribunal awarded bonus at varying rates in respect of most of the concerns and disallowed the same in respect of some. On the 4th issue the award stated that the workers were to get one day's leave with wages for every 20 days of work irrespective of the total number of days worked in an year. On the 9th issue the Tribunal held that the workers were entitled to one day's leave with wages on Onam day. However in stating the conclusion on this issue it was mentioned that two days' leave with wages should be given for Onam. The finding on the 13th point is that the workers are entitled to compensation for non-payment at the rate of one day's wage for every four days of non-employment which falls short of 245 working days in an year. These are the findings which are challenged by the petitioners.
4. As regards the question of bonus covered by the 2nd and 3rd issues the petitioners in O.Ps. 381 and 382 who raised this point stated that the dispute regarding the same having been settled between the parties the point was not pressed. It is therefore unnecessary to consider this point.
5. The finding on the 9th issue may be considered next. Sri Balagangadhara Menon, learned counsel for the respondents conceded that the Tribunal erred in providing for two holidays with wages for Onam. In view of the clear finding in the award that the workers were entitled to one day as holiday with wages for Onam, this appears to be a clerical or accidental error. This will stand corrected as one holiday for Onam with wages.
6. Issue 13 raises an important question, viz., whether the workmen are entitled to compensation during the period the factories remain closed for reasons beyond the control of the management. It is admitted that a substantial part of the cashewnuts roasted and shelled in these factories is imported from Africa and that the factories invariably close down for three or four months every year when supplies run short. In Para.51 of the award the Tribunal observed as follows:
"It cannot be disputed that under the present set up it may not be possible to work the existing factories all the year round. The nonavailability of sufficient raw-nuts is a factor for consideration and unless conditions improve, from the figures now available it can be seen that there is at present only enough raw materials to provide work on an average for ten months in a year
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