High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE R. SUDHAKAR
Chief Executive Officer, District Forest Officer, Sandalwood Industrial Complex
Versus
Mallika & Others
Writ Petition Nos. 3476 to 3497 of 2001
Decided on : 01-12-2009
Industrial Disputes Act - Forest Department - Section 2(j) - Common Award dated 112. 2000 - The court discussed the interpretation of Section 2(j) of the Industrial Disputes Act, 1947 and its applicability to the Forest Department. The court relied on the decision in Chief Conservator of Forests and another – vs. - Jagannath Maruti Kondhare and another to determine whether the Forest Department can be termed as an 'industry' under the Act. The court also highlighted the 'dominant nature test' formulated in the Bangalore Water Supply & Sewerage Board case to determine the nature of work undertaken by the Forest Department. The activities of the Forest Department were found to be commercial in nature, and the plea that the department is not an industry was rejected.
Fact of the Case:
The Forest Department challenged a common award passed by the Labour Court, which upheld the claim of women employees for reinstatement with full back wages and continuity of service. The Department contended that it is not an 'industry' under the Industrial Disputes Act.
Finding of the Court:
The court dismissed the writ petitions, upholding the Labour Court's decision. It found that the Forest Department's activities were commercial in nature and rejected the plea that it is not an industry under the Act. The court also held that the Department's termination of services and denial of regular employment to the women employees were improper and mala fide.
Issues: The main issue was whether the Forest Department can be considered an 'industry' under the Industrial Disputes Act, and whether the termination of services and denial of regular employment to the women employees were justified.
Ratio Decidendi: The court applied the 'dominant nature test' to determine the nature of work undertaken by the Forest Department and relied on the decision in Chief Conservator of Forests and another – vs. - Jagannath Maruti Kondhare and another to reject the plea that the department is not an industry. It also found that the termination of services and denial of regular employment to the women employees were improper and mala fide.
Final Decision: The writ petitions were dismissed, and the Forest Department was held liable to pay all consequential benefits to the women employees as ordered by the Labour Court.
The Chief Executive Officer/District Forest Officer, Sandalwood Industrial Complex, Tirupattur has filed a batch of 22 Writ Petitions challenging the Common Award dated 112. 2000 passed in I.D.Nos.15, 26, 33, 30, 22, 29, 21, 16, 27, 25, 31, 32, 20, 23, 34, 36, 35, 24, 28, 18, 19 and 17 of 1999 respectively on the file of the second respondent Labour Court, Vellore.
2. The first respondent in each one of the cases are women who have been employed as Grade-III Mazdoors in the Additional Sandalwood Depot on daily wage basis. The wages were fixed by the Principal Chief Conservator of Forests/Conservator of Forests on the basis of the rate fixed by the Labour and Employment Department for the Sandalwood Depot workers and also complying with the requirements of Minimum Wages Act. It includes dearness allowance. The nature of employment of the first respondent workmen is to transport sandalwood kept in the Additional Depot to the Final Cleaning Depot. According to the petitioner Department, the women 1st respondent in each case were appointed as casual labourers and were paid on daily wage basis. It is stated in the affidavit that on 13. 1997, there was a big fire in the additional Sandalwood Depot which resulted in closing down the Depot. Consequently, the Department was unable to give any work to the first respondent workmen in all the petitions and they were stopped from 9. 1997. The first respondent women employees raised 22 Industrial Disputes before the Labour Court to reinstate them with full back wages and continuity of services.
3. Before the Labour Court, all the 22 Industrial Disputes were taken up together and disposed off by a common award. On behalf of the workmen, two of the workmen were examined as W.W.1 and W.W.2 and Exhibits W1 to W4 were marked. On behalf of the management, one witness was examined as M.W.1 and Exhibits M1 to M12 were marked.
4. The Labour Court, in the common award, after discussing the factual aspects of the claim, the stand taken by the management and further considering the evidence on record upheld the claim and held as follows:-
"For the foregoing reasons, the contention of the petitioners had been accepted, that of the respondent had been rejected and the Industrial Dispute raised by each of the petitioners is upheld. The respondent, to reinstate the petitioners with full backwages, continuity of service and all other monetary benefits, if any as the case may be. These petitions are allowed with an all inclusive cost of Rs.500/- at one set, directed against the respondent and in favour of the petitioners. Time for compliance till one month."
Challenging the common award, these writ petitions have been filed by the management.
5. On21. 2003, the interim stay order dated 22. 2001 was modified as follows:-
"The interim stay, already granted, is made absolute, subject to the petitioners depositing the entire backwages till the date of filing of the writ petitions with the second respondent, within a period of eight weeks from today. On such deposit, the second respondent shall invest the same in any one of the nationalised banks, in Fixed Deposit, initially for a period of three weeks to be renewal periodically depending upon the progress of the cases. The workmen are entitled to withdraw the interest on the Fixed Deposits once in three months pending disposal of the writ petitions.
The petitioners shall comply with Section 17B of the Industrial Dispute Act.
The contesting respondents to file an affidavit of non-employment.
Expedite the main Writ Petition."
6. At request of the petitioner management, the matters were listed before the Court for extension of time to deposit the amount on the ground that the Government had taken time to pass appropriate orders and the Court considering such request and after the Government sanctioned the money, the time was extended for deposit of the amount subject to compliance of the order dated 21. 2003.
7. The writ petitions have now come up
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