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2022 Supreme(Ker) 710

IN THE HIGH COURT OF KERALA AT ERNAKULAM
Murali Purushothaman, J.
Kerala State Beverages Corporation Staff Organisation (Intuc) - Petitioner
Versus
State Of Kerala Represented By The Secretary To Government, General Administration (Sainik Welfare) Department And Ors. – Respondents
WP(C) No. 982, 1002 of 2016, 4004 of 2019, 3038 of 2018
Decided On : 20-09-2022

Advocates Appeared:
For the Petitioner: B.Ashok Shenoy, K.V.George, P.S.Gireesh, P.N.Rajagopalan Nair
For the Respondent: Sri.Naveen.T., Standing Counsel, Sri.K.M.Faizal, G.P

Point of Law : Embargo under Section 33 (1) is with regard to change of conditions of service to prejudice of the workmen concerned in the dispute.

Headnote:

I.D. Act, 1945 - Section 33 (1), 20, 12, 12 (1) - Industrial Disputes (Central) Rules, 1957 - Rule 10 - Commencement and conclusion of proceedings - Duties of conciliation officers - Conditions of service, etc., to remain unchanged under certain circumstances during pendency of proceedings - Conciliation proceedings in non-public utility service - Prohibition of strikes and lockouts in public utility services - Whether a conciliation proceedings is pending before conciliation officer so as to attract Section 33 (1) of the I.D. Act - Whether rejection of request of Union for wages for security guards deployed in FL-9 warehouses and head office of KSBC at par with security guards deployed in FL-1 shops is sustainable or not - Section 33(1) provides that, during the pendency of conciliation proceedings before a Conciliation Officer or a Board or of any proceeding before an arbitrator or a Labour Court or Tribunal or National Tribunal in respect of an industrial dispute, the employer is prohibited from altering conditions of service of the workmen; or dismissing, discharging or punishing the workmen in respect of any matter or misconduct connected with the dispute, save with express permission in writing of the authority before which the proceeding is pending. (Para 16).

Findings of the Court :

Request of Union for wages to security guards deployed in FL-9 warehouses and head office of KSBC at par with security guards deployed in FL-1 shops, relegated to KSBC by this Court was rejected stating that contract has expired and since order of status quo passed by this Court in W.P.(C) is in force, request cannot be considered. When this Court by Ext. P13 judgment in W.P. (C) directed KSBC to consider request of Union for wages to security guards deployed in FL-9 warehouses and the head office of KSBC at par with the security guards deployed in FL-1 shops, order of status quo passed by this Court in W.P.(C) was already in force and was within knowledge of Court and KSBC cannot refuse to consider request of Union for said reason. The KSBC failed to consider representation of Union as per direction in Ext. P13 judgment. Ext. P14 in W.P. (C) cannot be sustained in law.

Result : Writ petitions disposed of

JUDGMENT :

Since Common issues arise for consideration in these writ petitions, they were heard together and are disposed of by this common judgment.

2. W.P.(C) No. 1002 of 2016 is filed by the Managing Director of Force India Management Services and Securities (hereinafter referred to as the 'security agency', unless otherwise specifically stated), a proprietary firm engaged in the supply of security personnel for Government and nongovernmental institutions. The Kerala State Beverages (Manufacturing and Marketing) Corporation Ltd. (hereinafter referred to as the 'KSBC', for short) invited competitive tenders for deployment of security guards (unarmed) on contract basis for security duty at their FL-9 warehouses and head office and on being awarded the contract, the petitioner entered into Ext.P1 agreement. As per clause 9 of the agreement, the liability to pay the salary and other statutory dues of the security staff is on the security agency. Clause 22 provides that the period of Contract will be for three years with effect from 16.07.2012 with an annual escalation based on the maximum variable Dearness Allowance as per the Consumer Price Index.

3. Pursuant to the contract, the security agency recruited 97 employees and deployed them at the various sites of KSBC. While continuing with such arrangement for security duties, the General Administration Department, Government of Kerala issued Circular No.71307/12/GAD dated 01.10.2012 directing the public sector undertakings and Government companies to engage security personnel from Kerala State Ex-Service Development and Rehabilitation (KEXCON). Based on the said circular, the KSBC took steps to terminate the contract arrangement with the petitioner. The petitioner filed W.P. (C) No.1437 of 2013 before this Court and on the strength of interim order dated 18.01.2013, the contract was continued. Later, the said writ petition was finally closed by judgment dated 08.09.2015 observing that the period of contract was already over by then. This writ petition is filed by the security agency contending that even after expiry of the period of contract, they are continuing; but the KSBC is not disbursing the amounts due to them in terms of clause 22 of the contract and therefore, prays for direction to KSBC to release the amounts due as annual escalation as provided under clause 22.

4.The KSBC has filed a counter affidavit resisting the averments in the writ petition contending that it had been engaging security guards from different security agencies since its inception in 1984 following open tender process and Ext.P1 contract provides clause for termination by giving two months notice and the contract with the petitioner agency was terminated on 18.01.2013 and annual escalation as per clause 22 of the contract is not available on expiry of the contract and while continuing on the strength of interim order of the Court.

5. W.P.(C) No.982 of 2016 is filed by the Kerala State Beverages Corporation Staff Organisation (INTUC), a trade union of workmen of the KSBC, registered under the Trade Unions Act, 1926 contending that the KSBC had engaged 93 workmen as security guards in their 22 warehouses and head office from the year 1984 uninterruptedly, but they are not paid wages and benefits as payable to regular employees and they are treated as 'contract labours' based on sham contracts to deny them their legitimate benefits. The petitioner union, by Ext.P1 charter of demands, raised an industrial dispute before the Labour Commissioner under the provisions of the Industrial Disputes Act, 1947 ('I.D. Act', for short) claiming regularisation of service of 93 workmen employed in KSBC as security guards. The Additional Labour Commissioner (IR) issued Ext.P4 notice to KSBC and the petitioner union informing that he has decided to hold a conciliation meeting on 02.02.2016 on the subject raised in the charter of demands and requesting them to attend the meeting.

6. It is contended that, during the pendency o

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