IN THE HIGH COURT OF JUDICATURE AT MADRAS
M. DHANDAPANI, J.
The Management India Cements Ltd. Sankari Salem – Appellant
Versus
The Presiding Officer Labour Court, Salem & Others – Respondents
W.P. Nos. 8634 & 8790 of 2003 W.P. No. 7994 of 2005 W.P. No. 25872 of 2018 & W.M.P. No. 30071 of 2018
Decided On : 03-08-2023
ID Act - Contract Labour - Section 33-C(2)
Fact of the Case:
The petitioner, an industrial unit, entered into a contract with a registered contractor who engaged workers. The workers claimed wages from the petitioner after their services were terminated. The petitioner argued that there was no employer-employee relationship between them and the workers.
Finding of the Court:
The court found that the workers were not employees of the petitioner and that the Labour Court had no jurisdiction to decide disputed facts under Section 33-C(2) of the ID Act. The court also held that the workers could not claim benefits under Section 25-O of the ID Act as they were not employees of the petitioner.
Issues: 1. Whether there was an employer-employee relationship between the petitioner and the workers. 2. Whether the Labour Court had jurisdiction to decide disputed facts under Section 33-C(2) of the ID Act. 3. Whether the workers could claim benefits under Section 25-O of the ID Act.
Ratio Decidendi: The court held that the workers were not employees of the petitioner and that the Labour Court had no jurisdiction to decide disputed facts under Section 33-C(2) of the ID Act. The court also ruled that the workers could not claim benefits under Section 25-O of the ID Act as they were not employees of the petitioner.
Final Decision: All the writ petitions were allowed, and the orders impugned therein were set aside. The court held that the orders passed in the respective computation petitions by the 1st respondent were wholly perverse, illegal, arbitrary, and unreasonable.
JUDGMENT
(Prayers: W.P. No. 8634 of 2003 filed under Article 226 of the Constitution of India praying this Court to issue a writ of certiorari to call for the records from the file of the 1st respondent herein in C.P. Nos.158 to 166, 168 to 173, 175, 176 and 178 to 183/1999 on its file and to quash the common order dated 18.12.2001.
W.P. No.8790 of 2003 filed under Article 226 of the Constitution of India praying this Court to issue a writ of certiorari to call for the records from the file of the 1st respondent herein in C.P. Nos.369 to 391 of 2000 on its file and to quash the common order dated 18.12.2001.
W.P. No.7944 of 2005 filed under Article 226 of the Constitution of India praying this Court to issue a writ of certiorari to call for the records from the file of the 1st respondent herein in C.P. Nos.14 to 36 of 2002 on its file and to quash the common order dated 31.05.2004.
W.P. No.25872 of 2018 filed under Article 226 of the Constitution of India praying this Court to issue a writ of certiorari to call for the records from the file of the 1st respondent herein in C.P. Nos.202 to 212 of 2013 on its file and to quash the common order dated 17.08.2017)
Common Order
1.Assailing the respective orders passed by the 1st respondent in allowing the respective computation petitions filed by respondents 3 to 25 claiming wages, the present writ petitions have been filed.
2. The respondents herein have filed computation petitions for various periods between October, 1998 and February, 2013, claiming wages from the petitioner, on account of the termination of their services. The respective computations were allowed by the 1st respondent/Labour Court vide the aforesaid impugned orders by holding that workmen/respondents 3 to 25 are entitled to receive the compensation amount.
3. For the sake of brevity, the petitioner and the respondents 3 to 25 will be referred to as ‘petitioner’ and ‘workman’.
4. It is the case of the petitioner that it is an industrial unit engaged in the manufacture of cement. The petitioner had entered into a contract arrangement with the 2nd respondent, who is a registered contractor under the Contract Labour (Regulation and Abolition) Act, and the 2nd respondent had engaged the services of respondents 3 to 25 with the petitioner. It is the further case of the petitioner that all the payments towards wages for the aforesaid workmen were paid by the 2nd respondent and the petitioner, in no way, was associated with the workman.
5. It is the further case of the petitioner that voluntary retirement scheme was floated by the petitioner for its employees, who were employed in the unit as well as at the mines as a means of cost cutting measure due to financial implication, which had the approval of the Union as well and, accordingly, many employees had opted for VRS. Due to the economic condition and the viability to run the unit, the petitioner, after discussion with the 2nd respondent and also their Union, VRS for the contract workers, who were employed by the 2nd respondent was also discussed and in terms with the arrangement with the 2nd respondent, the contract workers were given VRS on payment of ex-gratia amount along with terminal and statutory benefits and out of the 171 contract workmen, 148 workmen opted for VRS barring the 23 persons, who are the respondents here.
6. It is the further case of the petitioner that the contract workmen had signed an agreement u/s 18 (1) of the ID Act and also submitted resignation letter and opted for VRS scheme and all the contract workmen were paid the terminal benefits by the 2nd respondent. It is the case of the petitioner that the terminal benefits were paid by the 2nd respondent to the contract workmen including respondents 3 to 25 and not by the petitioner.
7. It is the further case of the petitioner that the workmen herein, who were employed under the contractor and receiving wages from the contractor, raised an industrial dispute before the Deputy Commissiner of Labour, Salem,
The main legal point established in the judgment is that the Labour Court has no jurisdiction to decide disputed facts under Section 33-C(2) of the ID Act when there is no employer-employee relations....
The main legal point established in the judgment is that under Section 33(C)(2) of the ID Act, the Industrial Tribunal can adjudicate upon the entitlement of the workman to receive benefit in terms o....
The main legal point established in the judgment is the examination of the employer-employee relationship and the maintainability of the application under Section 33(A) of the ID Act.
The main legal point established in the judgment is that the determination of the service conditions of employees was within the domain of the contractor, and the absence of evidence showing control ....
Burden of proof in employment disputes shifts to the employer once workmen establish their employment. In cases of termination, statutory compliance is critical.
The Labour Court's determination that a sham contract exists may classify workers as employees of the principal employer, thereby validating their claims for service conditions and protections under ....
The court emphasized the importance of proving the existence of an employer-employee relationship and highlighted the limited jurisdiction of the court in examining the award passed by the Industrial....
Section 33(C)(1) of I.D.Act deals with situation where money is due to a workman under a settlement or an award.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.