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2024 Supreme(HP) 373

IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
RAKESH KAINTHLA, J.
Managing Director M/s Devyani Food Industries Limited and anr. - Petitioners
Versus
State of Himachal Pradesh through Labour Inspector - Respondent
Cr. MMO No. 374 of 2022
Decided on : 26-02-2024

Advocates Appeared:
For the Petitioner:Mr. Surinder Saklani, Advocate.
For the Respondent:Mr. Jitender Sharma, Additional Advocate General.

The management's factory closure without requisite permission violated Sections 25(O) and 25(R) of the Industrial Disputes Act, establishing grounds for criminal charges.

Headnote:(A) Industrial Disputes Act, 1947 - Sections 25(O) and 25(R) - Petition against the complaint filed by Labour Inspector for illegal closure of factory without permission - The management failed to substantiate closure was lawful and did not comply with necessary legal procedures - The closure was regarded as an offence under Section 25(R) for neglecting the permission required under Section 25(O). (Paras 1, 24, 31)

(B) Quashing of proceedings - Principles of exercising jurisdiction under Section 482 of Cr.P.C. were reiterated, emphasizing that the Court must only ascertain whether prima facie case exists without delving into merits or evaluating evidence in detail. (Paras 9, 10)

Facts of the case:
Complaint arose from the wrongful closure of a factory without permission from the appropriate Government, as stated under Section 25(O) of the Industrial Disputes Act, following which an inquiry revealed that 150 employees were engaged. Management's claims of compliance with the law were dismissed as unsubstantiated.

Findings of Court:
The Court held that the complaint had sufficient basis for continuing proceedings against the petitioners for violating the provisions of the Industrial Disputes Act.

Issues: The primary issue was whether the management had legally closed the establishment under Section 25(O) and whether the complaint filed was maintainable despite existing civil proceedings.

Ratio Decidendi: The court maintained that the violation of procedural mandates under the Industrial Disputes Act resulted in criminal liability, and that quashing the complaint was not warranted as sufficient allegations existed to proceed.

Result: Petition dismissed.

JUDGMENT :

Rakesh Kainthla, J.

Labour Commissioner, Baddi (complainant) filed a complaint against the present petitioners for the commission of an offence punishable under Section 25 (R) of the Industrial Disputes Act, 1947 read with H.P. Industrial Dispute Rules, 1974. It was asserted that the management of M/s Devyani Food Industry served a notice of closure upon the Labour Commissioner, Himachal Pradesh vide an e-mail dated 16.5.2020 under Section 25 (FFA) of the Industrial Disputes Act, 1947 stating that the management had decided to permanently close their factory/establishment. The Joint Labour Commissioner directed the Labour Officer, Baddi to conduct an inquiry regarding the number of workmen employed by the management in the preceding 12 months before serving the notice. It was also directed that all affected workmen should be given their full and final dues as per the provisions of applicable labour laws. The Labour Officer informed the Labour Commissioner vide letter dated 27.6.2020 that Management had given an impression that it was not closing the factory an d that the factory would run at normal course. The production and dispatch activities of the unit were going on smoothly. Management did not produce the record despite the repeated visits of the Labour Officer; hence, the Labour Officer obtained the figure of workers from the Devyani Karamchari Sangh, as per which 86 workers were working in the factory. He also reported that there were no exceptional circumstances to show that the factory could not carry out its business. Rakesh Sharma (President, Bhartiya Mazdoor Sangh, Himachal Pradesh) made a complaint dated 29.07.2020 stating that the notice of closure was not given to the workers of the Company. The services of some of the workers were terminated without any notice. 105-110 workers were engaged in the company. The request was made to refer the matter to the Labour Court for adjudication. The Labour Commissioner directed the Labour Officer to reinvestigate the matter vide letter dated 30.6.2020 and ascertain the total strength of the workers. The Labour Officer reinvestigated the matter and submitted a revised report dated 1.7.2020 informing that 150 workmen were employed in the factory. He also supplied the list of 150 workmen provided to him by Devyani Karamchari Sangh. The Labour Officer concluded that no exceptional circumstances justified t he closure of the business. The Joint Labour Commissioner asked the Factory Manager not to close the factory without obtaining permission as required under Section 25 (O) of the Industrial Disputes Act vide letter dated 01.07.2020. Labour Officer, Baddi informed the Labour Commissioner that the management had closed the establishment on 6.7.2020 despite the letter of the Labour Commissioner in violation of Section 25 (O) of the Industrial Disputes Act which is punishable under Section 25 (R); hence, a complaint was filed against the Management by the Labour Inspector for taking action as per the law.

2. Being aggrieved from the complaint, the present petition has been filed for quashing the summoning order and bailable warrants issued by the Court, as well as, the complaint filed by the Labour Inspector. It is asserted that the company planned to close its plant and sent a letter dated 7.5.2020 regarding the notice of closure. An e-mail was sent to the Labour Officer to conduct an inquiry. The Labour Officer served a show cause notice upon the company, which was duly replied to. The company filed a civil suit against the workers and obtained an injunction order. The company affixed a notice on the notice board on 6.7.2020 stating that the final settlement amount would be transferred to the workmen by the evening of 6.7.2020 in their accounts. The experience letter will be given on 7.7.2020. A supplementary demand letter was received from the union, which was duly replied to. The matter was referred to the Industrial Tribunal-cum-Labour Court, Shimla for adjudicat

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