IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.M. SUBRAMANIAM, J.
The Management, Hyundai Motor India Limited, Rep. by Asst. Manager Legal, Sriperumbudur - Appellant
Versus
The Authority under the Shops and Establishment Act, 1947 cum Deputy Commissioner of Labour, Chennai - Respondent
W.P. Nos. 5316 & 5317 of 2014 & M.P. Nos. 1 & 2 of 2014
Decided On : 14-06-2022
Tamil Nadu Shops and Establishments Act - Factory - Factories Act, 1948 - G.O. Ms. No. 545 dated February 10, 1950
Fact of the Case:
The writ petitioner, a company engaged in the manufacture of passenger cars, terminated the employment of the second respondent, who was working in the factory premises. The second respondent approached the first respondent authority under the Tamil Nadu Shops and Establishments Act, 1947, challenging the termination.
Finding of the Court:
The court found that the first respondent's order was contradictory, as it initially acknowledged the factory status of the petitioner's establishment but later claimed the establishment had not proven its factory status. The court also noted the exemption granted to factories under the Tamil Nadu Shops and Establishments Act, 1947, through G.O. Ms. No. 545 dated February 10, 1950.
Issues: The issues revolved around the contradictory findings of the first respondent regarding the factory status of the petitioner's establishment and the applicability of the Tamil Nadu Shops and Establishments Act, 1947.
Ratio Decidendi: The court held that the first respondent's contradictory findings were not tenable, and the exemption granted to factories under G.O. Ms. No. 545 dated February 10, 1950, applied to the petitioner's establishment, thereby quashing the first respondent's order.
Final Decision: The writ petitions were allowed, the orders of the first respondent were quashed, and the second respondent was given the liberty to redress his grievance by approaching the appropriate forum.
JUDGMENT
(Common Prayer: Writ Petitions filed Under Article 226 of the Constitution of India, to issue a Writ of Certiorari, to call for the records relating to the order dated 20.12.2013 passed by the first respondent in TNSE No.II/IA7/2013 and TNSE No.II/IA2/2013 and to quash the same.)
Common Order
1. The order passed by the authority under the Tamil Nadu Shops and Establishments Act, 1947 is under challenge in the present writ petition.
2. The writ petitioner is a Company registered under the provisions of the Companies Act and in its factory at SIPCOT Industrial Park, Irrungattukottai, Sriperumbudur Taluk, Kacheepuram District in Tamil Nadu, the petitioner is engaged in the business of manufacture of passenger cars.
2. The second respondent joined the service of the petitioner on 01.11.2006 as Business Associate Trainee-II and he was made permanent on 01.06.2008. The second respondent was promoted as Junior Officer [General Affairs] and his place of work is situated inside the factory. The Car manufacturing factory is within the meaning of Factories Act, 1948 and the second respondent was a worker within the meaning of Section 2(1) of the said Act.
3. The petitioner has narrated the chief functions and duties of the second respondent in his position as Junior Officer [General Affairs]. While so, on account of certain allegations, the second respondent was terminated from service. Challenging the order of termination, the second respondent approached the first respondent authority under the Tamil Nadu Shops and Establishments Act, 1947. The first respondent authority dismissed the preliminary objection raised by the petitioner regarding the maintainability of the petition. Hence, the present writ petition is filed.
4. The learned counsel appearing on behalf of the writ petitioner mainly contended that the petitioner Management marked documents with the consent of the second respondent employee. By consent, nine documents were marked. Those documents reveal that the petitioner establishment in which the second respondent was working is a factory and registered under the Factories Act. Further, they have marked the documents relating to Payment of Salary, Muster roll, Adult worker register and Salary slip. Considering all the documents, the first respondent authority also made a finding that the petitioner Management has established that it is a factory and the second respondent is working in the factory premises. While made a finding that the second respondent was working in the factory premises in paragraph 9 of the order, the first respondent has turn around and taken a decision that the petitioner has not established that it is a factory in paragraph 10, for which no document is relied upon.
5. The learned counsel appearing for the petitioner reiterated that in paragraph 9, finding is made based on the documents filed by the petitioner Management, however the finding in paragraph 10 is not supported with any document. Therefore, it is self contradictory and running counter to the finding arrived in paragraph 9 based on the documents filed by the writ petitioner with the consent of the second respondent.
6. Regarding the maintainability of the petition under the provisions of the Tamil Nadu Shops and Establishments Act, 1947, the petitioner relied upon the Government Order issued in G.O.Ms.No.545 Development dated 10.02.1950. The said Government Order was elaborately considered by the Hon'ble Division Bench of this Court in the case of Management of E.I.D. Parry [India] Ltd., vs. Commissioner of Labour and others reported in [2001] 3 LW 820, wherein the Hon'ble Division Bench made following observations with reference to the exemption granted to the factory premises in the Government Order issued in G.O.Ms.No.545 dated 10.02.1950:
“15.To appreciate the contention of the learned senior counsel for the appellant, it is necessary to go through the said G.O. which reads thus:
"G.O. Ms. No. 545 Development, dated February 10, 195
The exemption granted to factories under G.O. Ms. No. 545 dated February 10, 1950, from the provisions of the Tamil Nadu Shops and Establishments Act, 1947, applies to establishments governed by the ....
The court emphasizes the necessity of procedural compliance and proper review of termination orders under the Tamil Nadu Shops and Establishments Act, 1947.
Jurisdiction of the Appellate Authority under the Tamil Nadu Shops and Establishment Act, 1947.
Maintainability challenges deferred to main hearing with evidence; interlocutory dismissal not perverse.
The Tamil Nadu Shops and Establishments Act is not applicable to cooperative bank employees governed by the Tamil Nadu Cooperative Societies Act, establishing the primacy of special laws over general....
Special Co-operative Societies Act prevails over general Shops Act; appeal under Shops Act Section 41 not maintainable for co-operative bank employees.
Special Co-operative Societies Act and bye-laws exclude Shops Act jurisdiction for employee disciplinary appeals in co-operative banks.
The appellate authority must ensure proper jurisdiction and procedural fairness in employment dismissal cases while providing detailed findings on all charges.
The main legal point established is the requirement for participation in disciplinary proceedings and the need for fresh evidence before setting aside a punishment.
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