2015 Supreme(Mad) 3202
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
S.VIMALA, J.
Cethar Ltd. – Petitioner
Vs.
The District Collector & Ors. – Respondents
W.P.(MD) No.10685 of 2015
Decided On : 16.10.2015
For Petitioner: Mr.K.Govindarajan
For Mr. T. Antony Arul Raj
For R1 to R3 :Mr.P.Kandasamy, Govt. Advocate (Crl.Side)
For R4 : Mr.V.Prakash, Senior Counsel
For Mr.K.Krishnamoorthy
For R5 : No Representation
For R6 : Mr.G.Puhazh Gandhi
For Advocate Commissioner: Mr.A.Velan
The main legal point established in the judgment is that the agreement by the company to settle the arrears of salary and deposit a sum of Rs.80 lakhs towards payment of salary rendered further inquiry unnecessary, influencing the court's decision to allow the writ petition.
Headnote:
Lockout - Industrial Dispute - Writ of Mandamus - [Lockout] - [Industrial Dispute] - [Industrial Disputes Act, 1947, Section 2A; Industrial Disputes Act, 1947, Section 25F] - The court discussed the provisions of the Industrial Disputes Act, 1947, particularly Section 2A and Section 25F, which deal with the definition of lockout and the conditions for layoff of workmen. The interpretation of these provisions influenced the court's decision to allow the writ petition and direct the respondents to provide police protection for the removal of materials from the petitioner's factory site.
Fact of the Case:
The company, engaged in the manufacture of industrial boilers and power plant equipments, announced a lockout due to heavy losses and unpaid salaries. The company sought a writ of mandamus to remove materials from its factory site, which was being obstructed by the laborers.
Finding of the Court:
The court found that the company had agreed to settle the arrears of salary and was ready to deposit a sum of Rs.80 lakhs towards payment of salary. It allowed the writ petition and directed the respondents to provide police protection for the removal of materials from the petitioner's factory site.
Issues: The issues involved non-payment of salaries, obstruction of material removal by laborers, and the need for police protection for material removal.
Ratio Decidendi: The court's decision was based on the company's agreement to settle the arrears of salary and the readiness to deposit a sum of Rs.80 lakhs towards payment of salary, which rendered further inquiry unnecessary. The court also emphasized the employees' lack of right to obstruct the products being taken out from the premises of the company.
Final Decision: The writ petition was allowed, subject to conditions, and the respondents were directed to provide police protection for the removal of materials from the petitioner's factory site.
The company is the petitioner, engaged in the manufacture of industrial boilers and power plant equipments, having its registered office at Trichirappalli. The manufacturing unit of the company is at Kumaramangalam Village, Mathur, Pudukottai Village. There were about 130 permanent workers.
2. As the company incurred heavy loss, it was constrained to announce a lock out. The salary, payable to the employees for the month of January and February, 2015, had not been paid.
3. In the company, there are semi finished and unfinished materials to the tune of Rs.234.57 tonnes, belonging to various customers, such as SKS Power Generation (Chhattisgarh) Limited, IND Barath Energy (Utkal) Limited and Meenakshi Power, Nellore. They have placed orders for supply of products. The petitioner is not able to complete the production work for want of congenial atmosphere. The Management felt that even if the finished product cannot be supplied, at least the raw materials can be returned to them, so that they can utilize the same in their site “as is where is condition”. The petitioner company is not able to remove the goods from its campus. The removal is being physically obstructed by the labourers. Therefore, this writ of mandamus, has been filed, seeking direction to the respondents 2 and 3 to provide sufficient police protection for a specified period so as to enable the petitioner to remove the materials from the petitioner's factory site at Kumaramangalam Village, Mathur, Pudukottai District.
4. This petition was originally filed against the District Collector, Pudukottai, The Superintendent of Police, Pudukottai and the Inspector of Police, Mathur Police Station, Pudukottai District. On 06.07.2015, this Court directed the petitioner to implead the District Secretary of CITU, namely, K.Selvaraj and the General Secretary of Cethar Vessel Labour Union, by name S.Ramesh, as party respondents. Accordingly, both of them were impleaded as R4 and R5 by the order dated 06.07.2015 passed in M.P.(MD) No.1 of 2015. R6 has been impleaded by the order dated 19.08.2015 in M.P. (MD) 2 of 2015. Both the impleading petitions have been ordered by the Court, where the case was originally pending.
5. The petition was opposed by the 4th respondent on the following grounds;
a) The petitioner company is not incurring loss, as contended by the petitioner, but it is prospering. There are 7 units for manufacturing and out of 5000 workers being employed, 130 workers are permanent. These workers are represented by the 4th respondent. Remaining employees are paid through Contractors. Except 130 permanent workers, rest of them have been terminated from service during 2013 to 2014 of whom some of them are agitating their claim before the Labour Court. Many of jobs are being done through sub-contractors.
b) The company has utilized the services of the retired employees of BHEL and they are being paid very high. The petitioner company is adopting unfair labour practice. It deliberately did not pay wages to the workers for the month of January, February and March, 2015. As the workers demanded the unpaid wages, the petitioner management declared a lock out. Since then, the company has paid wages for January and 50% of wages for February, 2015. The permission sought for lay off during August, 2014 was declined by the Government. The non-payment of wages was deliberate. The intention of the petitioner company is to remove the semi finished goods to other sister concerns and thus divert the income that has to flow into the coffers of this petitioner company to its sister concern. The consequences of non-payment of salary is known to everyone and it need not be elaborated.
6. On account of non-payment of salary, the employees decided to stay in strike. There was a Peace Committee Meeting in the presence of the Tahsildar, Kolathur.
6.1. It appears, a representation was made before the Court stating that permission is required only to return back the raw materials to the sup