1989 II LLJ 200 Mad
M Srinivasan
Audco India Ltd.
Versus
The Audco India Employees Union And Ors.
Decided on : 13/2/1989
.
INDUSTRIAL DISPUTES - STRIKE - PUBLIC UTILITY SERVICE - INJUNCTION - INTERIM INJUNCTION - BALANCE OF CONVENIENCE - UNFAIR LABOUR PRACTICES - INDUSTRIAL DISPUTES ACT, 1947 - SECTIONS 10(3), 10-A(4-A), 22, 24, 26 - ORDER XXXIX RULES 1 AND 2, CODE OF CIVIL PROCEDURE.
Fact of the Case:
The plaintiff, a company engaged in the manufacture of industrial pipeline valves and oilfield equipment, filed a suit for a permanent injunction restraining the defendants, members of the employees' union, from obstructing the movement of vehicles, materials, and personnel in and out of the factory premises. The plaintiff also filed an application for an interim injunction pending disposal of the suit. The defendants contended that the strike was legal and that the plaintiff was not entitled to an injunction. The plaintiff argued that the strike was illegal as it was in violation of Section 22 of the Industrial Disputes Act, 1947, and that it was causing irreparable loss to the company.
Finding of the Court:
The court found that the strike was illegal as it was in violation of Section 22 of the Industrial Disputes Act, 1947. The court also found that the plaintiff was likely to suffer irreparable loss if the injunction was not granted. The court further found that the balance of convenience was in favor of granting the injunction.
Issues: 1. Whether the strike was illegal? 2. Whether the plaintiff was entitled to an injunction?
Ratio Decidendi: The court held that the strike was illegal as it was in violation of Section 22 of the Industrial Disputes Act, 1947. The court also held that the plaintiff was entitled to an injunction as it was likely to suffer irreparable loss if the injunction was not granted. The court further held that the balance of convenience was in favor of granting the injunction.
Final Decision: The court granted an interim injunction restraining the defendants from obstructing the movement of vehicles, materials, and personnel in and out of the factory premises.
1. The plaintiff/applicant is a registered company engaged in the manufacture of industrial pipeline valves and oilfield equipment and the manufactured equipments are mostly supplied to public sector undertakings like Oil and Natural Gas Commission, Nuclear Power Corporation, Thermal Power Plants, Fertilisers and Petrochemical Complexes, Steel Plants Oil Industries, Refineries, Heavy Water Projects, Hydro Electric Power Stations and other Government projects of national importance. The company is also making supplies to foreign countries earning foreign exchange. The current annual turn over is stated to be 25 crores of rupees. The manufacture of valves has been declared to be a public utility service for the purpose of the Industrial Disputes Act, 1947 by the Government of Tamil Nadu till 27th June 1989. A settlement between the management of the company and the workers expired on 31st March 1988 and the union of employees placed a character of demands on 16th June 1988. As the could be no agreement by mutual discussions, the plaintiff initiated conciliation proceeding by addressing the Special Deputy Commissioner of Labour on 2nd December 1988. The latter sent notices dated 12the December 1988 and 19th December 1988 to both parties go appear before him for conciliation. In the second notice, which is filed as Document No. 3 along with the plaint, he advised the union not to indulge in any direct action in view of the conciliation proceeding. On 21st December 1988, the employees went on sudden strike without any notice to the plaintiff. Since then the unionised employees stated to be numbering about 550 are on strike. The above facts are not in dispute.
2. In the last week of December, the plaintiff filed in this Court W.P. No. 16129 of 1988 praying for issue of a writ of mandamus directing the Superintendent of Police, Chingleput (East) who was the first respondent therein to take appropriate action and afford necessary and adequate protection to the company in the exercise of its lawful and proprietary rights for the removal of their finished goods from the factory and ensure the non-commission of any offence by any outsider or stranger or the workmen individually of jointly under the direction of the Employees Union which was the second respondent therein. There was an application for interim direction in W.M.P. No. 24106 of 1988 for protection to enable the removal of finished goods as listed in the annexure to the affidavit therein. The annexure contained the description, quantity and the value of the finished goods which were ready for removal from the factory premises. The main allegation was that the workmen were preventing the dispatch of the finished goods to the respective customers. After hearing both sides, Venkataswami, J. passed an order on 10th January 1989 directing the first respondent therein to give the necessary protection to the applicant in the removal of the finished goods set out in the annexure to the affidavit filed therein subject to the condition that the removal of the goods should be after giving notice to the General Secretary of the Employees Union and in his presence or in the presence of his nominee. A further condition was imposed that the value of the goods as and when removed should be deposited in a separate account in the bank in which the petitioner was already having an account to the credit of the writ petition within two days after such removal and that the amount so deposited shall not be dealt with by the petitioner without obtaining orders of this Court. It is stated that the plaintiff got the order modified later enabling deposit of the amount after realisation of the price of the goods from the customers. It is also not in dispute that the plaintiff got an order in the same writ petition granting permission for sending certain materials for display at Indian Engineering Trade Fair at Delhi.
3. Thereafter, the present suit has been field for a permanent injunction restrain
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