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2017 Supreme(Mad) 322

IN THE HIGH COURT OF JUDICATURE AT MADRAS
NOOTY RAMAMOHANA RAO & S.M. SUBRAMANIAM, JJ.
The General Manager, Sri Bharathi Mills - Appellant
Vs.
N. Karthikeyan & Ors. - Respondents
Writ Appeal Nos.780 to 783 of 2016 and all connected pending CMPs
Decided On : 17-03-2017

Advocates Appeared:
For the Appellant : Ms. N. Mala.
For the Respondents: Mr. S. Venkataraman.

Headnote:

Constitution of India – Article 21 and 141 – Industrial Disputes Act – Section 33 and 12 – Delhi Road Transport Authority (Conditions of Appointment and Service) Regulations, 1952 – Regulation 9 – Minimum Wages Act – Encashment upon Recalculation – Compensation Claim – Writ petitions are directed against orders passed by the Labour Court, Puducherry filed by claiming arrears of wages pursuant to revision present purposes sufficient for us to note that Sri Bharathi Mills and Swadeshi Cotton Mills have been taken over and some financial assistance was provided by Government of Puducherry purpose of ensuring that mills would be able to survive and sustain – Government of Puducherry Textile Research Association Coimbatore for undertaking a techno-economic viability study of Swadeshee-Bharathee Textile Mills Limited, Puducherry one of assigned tasks aforementioned Association to identify causes for poor performance and suggest measures for improvement – Held, Learned counsel appearing for workmen has made a strenuous effort to convince us that we should not upset orders passed by Labour Court, particularly when management has not raised plea in so many words present proceedings are grounded upon a misconception of right in hands of workmen and when Labour Court passed orders which are contrary to the principles enunciated by Supreme Court which principles bind every court in this country orders of Labour Court cannot be allowed to sustain any longer orders passed by Labour Court in teeth of principles enunciated by Supreme Court are clearly unsustainable as very foundation or base upon which they are rested is wrong – Writ petitions stand disposed.

JUDGMENT :

NOOTY RAMAMOHANA RAO, J.

All these in-house appeals under Clause 15 of the Letters Patent are directed against a common order passed on 29.2.2016 by a learned Single Judge, making the interim order granted in the writ petitions on 22.4.2014 absolute subject to the condition that the petitioner - management pays to each of the employees in the writ petitions, a sum of Rs.75,000/-.

2. We notice that the respective writ petitions are directed against the orders passed by the Labour Court, Puducherry on 30.8.2012 in C.P.Nos.13 to 16 of 2012, filed by the workmen under Section 33C(2) of the Industrial Disputes Act claiming arrears of wages pursuant to the revision.

3. Sri Bharathi Mills and Swadeshi Cotton Mills, Puducherry had a long history. For the present purposes, it is sufficient for us to note that Sri Bharathi Mills and Swadeshi Cotton Mills have been taken over and some financial assistance was provided by the Government of Puducherry. For the purpose of ensuring that the mills would be able to survive and sustain, in the year 2007, the Government of Puducherry appointed M/s.South India Textile Research Association, Coimbatore for undertaking a techno-economic viability study of Swadeshee-Bharathee Textile Mills Limited, Puducherry. It was also one of the assigned tasks to the aforementioned Association to identify the causes for poor performance and suggest measures for improvement. After undertaking the techno-economic viability study, the aforementioned Association submitted its recommendations in April 2007. Since the textile mills have been incurring continuous losses over several years, as a measure to keep them floating and continue to function as effectively as is possible, a Special Voluntary Retirement scheme known as Swadheshee Bharathee Textile Mills Limited Voluntary Retirement Scheme (henceforth referred to as the VRS 2010) to the employees of Swadeshi Cotton Mills and Sri Bharathi Mills was contemplated and provided for.

4. The said VRS 2010 has been notified by the Government of Puducherry through their G.O.Ms.No.1/2010-Ind.B, Department of Industrial Development (Industries and Commerce) dated 4.6.2010. The entire contours of the scheme containing the relevant conditions applicable thereto have also been made part of the aforementioned Government Order.

5. Paragraph 3 of the VRS 2010 dealt with 'eligibility'. All employees such as regular, permanent, badli, substitute, temporary and casual workers, who have completed 10 years of service, as such, have all been rendered eligible to opt for the VRS 2010, by tendering resignation from the post held in the mills concerned. The normal age of superannuation was stipulated as 60 years. The right to refuse or accept the offer to retire voluntarily by submitting resignation has been retained in the hands of the mills. Paragraph 5 of the VRS 2010 holds out the benefits afforded to those, who opt under the scheme. First of these benefits relates to payment of ex-gratia. It has two components. Ex-gratia equivalent to 35 days of wages/salary for every completed year of service or 25 days wages/salary for the balance of service left for superannuation, whichever is less, was offered.

6. There is also a further cap on it fixed at Rs.4 lakhs. In other words, ex-gratia, calculated at the rate of 35 days of wages/salary for each completed year of service or 25 days of wages/salary for every month remaining for completing the service upto superannuation age of 60 years, whichever is higher, subject to a ceiling of Rs.4 lakhs, was offered to be paid. Apart from this ex-gratia, the other usual terminal benefits such as provident fund, encashment of accumulated earned leave/privilege leave, gratuity were also offered for payment. However, one of the most important clauses in paragraph 5 of the scheme namely Clause (iii) talks of the following :

"Arrears of wages/salary paid due to revision of wages/salary etc., will be included in computing the eligible amount and difference




































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