Rajasthan High Court, Jaipur Bench
S.C. Agrawal & P.C. Jain, JJ.
M/s. National Textile Corporation - Appellant
Versus
State of Rajasthan - Respondents
D.B. Civil Writ Petition No. 895 of 1988
Decided On : August 18, 1988
2. The petitioner of D.B. Civil Writ Petition No. 895/88 is a unit of Shree Bijay Cotton Mills, Bijay Nagar, petitioner of D.B. Civil Writ Petition No. 896/88 is a unit of Mahalaxmi Mills Beawar, petitioner of D.B. Civil Writ Petition No. 897/88 is a unit of adward Mills, Beawar and petitioner of D.B. Civil Writ Petition No. 898/88 is a unit of Udaipur Cotton Mills Udaipur. The petitioner is & subsidiary Corporation of the National Textiles Corporation Ltd., New Delhi (for short NTC hereinafter) is a company incorporated under the Companies Act. The petitioners various units named above were the companies in the private sector and since they were in liquidation the management of their units were taken over by the Central Government under the Provision of the Sick Textile (Taking over of Management) Act, 1972 in the year 1972 and subsequently, the mills were nationalised in the year 1974 under the provisions of the Sick Textile undertakings (Nationalisation) Act, 1974 and their owner-ship was transferred to NTC. Ltd., under Section 3 of the said Act. The NTC Ltd. formed 9 subsidiary corporations under section 6 of the said Act and the petitioner is one of the nine subsidiary corporations which is controlling and managing the aforesaid mills. The said mills remained a relief undertaking from 1972 prior to their nationalisation. It is stated in the petition that even though the mills referred to above were nationalised in the year 1974, they continued to incur losses continuously since then. It is further stated that the petitioners are paying wages to the workmen of the mills in accordance with the recommendations of the Second Central Wage Board for Textile industries. In the year 1981. the various trade unions of workmen of Textile industries in Rajasthan, submitted a Charter of demands on the Textile Mills of Rajasthan. The said Charter of Demands was also sent to the unit of the petitioner which was not a member of the Rajasthan Textile Mills Association. It has been further pleaded by the petitioners that a settlement was reached between the Unions and the Rajasthan Textile Mills Association on 29th July, 1982 under which, inter alia, it was agreed that an ad-hoc increase of Rs. 35/- per month shall be given to the workmen of Textile Mills who were members of the Rajasthan Textile Mills Association. The petitioner also entered into a settlement on 25th September, 1982 on the lines of the settlement dated 29th July, 1982 mentioned above. Since no settlement was made in regard to the demand for increase in wages, the Labour Commissioner Rajasthan called the representatives of workmen as well as Textile Mills for negotiations and conciliation sometimes in 1984 but nothing came out of the proceedings, consequently the Conciliation Officer submitted the failure report to the State Government on 6th September, 1984. From the failure report it appears that the issues raised on behalf of the Textile Mills included the question of financial incapability to give further increase in wages as well as the question of determining work loads. On the basis of the failure report, the State Government set up a Court of Enquiry and referred the disputes and matters to the Court of Enquiry for recommendation vide order dated 2nd April, 1985. After referring the disputes and matters to the Court of Enquiry as stated above the State Government vide notification dated 5th April, 1985 issued directions under section 10-K of the Industrial Disputes Act (as applicable to State of Rajasthan) whereby it was directed that the ad-hoc increase of Rs. 35/- will continue till such time the Court of Enquiry gives its report and the said amount would be absorbed against the demand of wages, increased DA , annual increment and H.R.A. as may be determined and settled on the basis of the report of the Court of Enquiry. T
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