IN THE HIGH COURT OF JUDICATURE AT MADRAS
T. Raja, K. Kumaresh Babu, JJ.
The General Secretary, Madras Refineries Workers Union - Appellant
Versus
M/s. Madras Refineries Limited INDCO Serve Society Limited and ors. - Respondents
W.A.Nos.1071 & 1320 of 2012 W.A.No.1320 of 2012
Decided On : 15-12-2022
Industrial Disputes Act - Absorption of Contract Workers - 12(3) Settlement - [ABSORPTION OF WORKERS] - [INDUSTRIAL DISPUTES ACT, 1947, Section 12(3)] - The court discussed the issue of whether the demand of the union for absorption of the employees of the third respondent society was justified under the Industrial Disputes Act, 1947, Section 12(3). The court found that the reasoning arrived at by the Industrial Tribunal in the given set of facts was wholly perverse, and the settlement dated 15.12.1997 was binding on the parties, as it had not been terminated in the manner known to law. The court concluded that the order impugned in the appeal was not perverse and was wholly sustainable, leading to the dismissal of the writ appeals.
Fact of the Case:
The case involved a dispute over the absorption of workers listed in Annexure A as regular employees of Madras Refineries Ltd, now known as Chennai Petroleum Corporation Limited. The Industrial Tribunal had held that the members of the petitioner Union were entitled to be absorbed into the service of the first respondent with retrospective effect from the date of their initial entry into service of the Society/third respondent with all resultant back-wages and attendant benefits. The said Award was challenged and set aside by the learned Judge.
Finding of the Court:
The court found that the reasoning arrived at by the Industrial Tribunal in reversing the Award did not suffer from any perversity to be interfered with. The court also concluded that the settlement dated 15.12.1997 was binding on the parties, as it had not been terminated in the manner known to law. Consequently, the court dismissed the writ appeals.
Issues: The issues involved in the case included the justification of the demand for absorption of the workers, the maintainability of the reference, and the termination of the settlement dated 15.12.1997.
Ratio Decidendi: The court held that the reasoning arrived at by the Industrial Tribunal in reversing the Award did not suffer from any perversity to be interfered with. The court also found that the settlement dated 15.12.1997 was binding on the parties, as it had not been terminated in the manner known to law.
Final Decision: The court dismissed the writ appeals and held that the order impugned in the appeal was not perverse and was wholly sustainable.
JUDGMENT :
K.Kumaresh Babu, J.
Prayer : Writ Appeal filed under Clause 15 of Letters Patent Act, against the common order of this Court dated 26.04.2012 in W.P.Nos.4368 of 2009, 26724 of 2010 and 6371 of 2011 in so far as W.P.No.6371 of 2011 is concerned and allow the Writ Appeal.
Prayer : Writ Appeal filed under Clause 15 of Letters Patent Act, against the common order of this Court dated 26.04.2012 in W.P.Nos.4368 of 2009, 26724 of 2010 and 6371 of 2011 in so far as W.P.No.26724 of 2010 is concerned and allow the Writ Appeal.
Writ Appeals have been preferred by the General Secretary, Madras Refineries Workers Union being aggrieved against the common order dated 26.04.2012 made in W.P.Nos.4368 of 2009, 26724 of 2010 and 6371 of 2011, wherein the learned Single Judge has set aside the award made in I.D.No.128/2001 dated 30.03.2010 passed by the Central Government Industrial Tribunal-cum-Labour Court, Chennai.
2. The issue involved in the appeals is as to whether the Members of the appellant Union have to be absorbed as permanent workers. The case of the appellant in W.A.No.1071/2012 is that the first respondent had entered into a Contract Labour Agreement with the third respondent Society. The said third respondent Society is the creation of the first respondent, with an object to deprive the rights of the workers for better service benefits. The appellant by their letter dated 30.06.1998 had issued a strike notice over a charter of demands, including their demand for regularization of the third respondent employees in the first respondent company. The same was referred for conciliation which failed and hence, the industrial dispute was referred to the Industrial Tribunal for adjudication by the Central Government, Ministry of Labour vide Order dated 28.05.1999. The reference for adjudication is as follows:
The same was numbered as I.D.No.128/2001 and based on the statement of claim and counter, the following points for consideration were framed by the Tribunal:
“(1) Whether the demand of the petitioner Union for absorption of workmen listed in Annexure A as regular employees of Madras Refineries Ltd. now known as Chennai Petroleum Corporation Limited is justified?
(2) To what relief the concerned workmen is entitled to?”
3. The Tribunal after consideration of various documents and evidences on both sides, by its Award dated 30.08.2010 had held that the members of the petitioner Union are entitled to be absorbed into the service of the first respondent with retrospective effect from the date of their initial entry into service of the Society/third respondent with all resultant back-wages and attendant benefits. The said Award was challenged by the first respondent and by Order dated 26.04.2012, the said Award was set aside by the learned Judge, which is being assailed by the appellant in the present appeals.
4. Heard Mr.V.Prakash, learned Senior Counsel for the Appellant/Union, Mr.S.Jayaraman, learned counsel for the respondent/Management and Mr.S.Shivathanu Mohan, learned counsel for the respondent/Society and perused the materials available on record.
5. The learned Senior Counsel appearing on behalf of the appellant would at the outset submit that the contract labour agreement between the first and the third respondent is sham and nominal. The members of the appellant union who were employed in the first respondent company through the third respondent society were carrying on permanent and perennial work. To support his contention, he submitted that the third respondent society was created in the year 1983 by the first respondent. Key posts of the society were held by the managerial personnel of the first respondent and the first respondent had control over the functioning of the third respondent society. It is the first res
Workmen of Nilgiri Coop. Mkt. Society Ltd. vs. State of T.N. And Others
The main legal point established in the judgment is that the reasoning arrived at by the Industrial Tribunal in reversing the Award did not suffer from any perversity to be interfered with, and the s....
The court confirmed that contract workers may directly approach the Tribunal for adjudication on employment claims, and held that previous contracts do not guarantee automatic absorption under the Co....
The court confirms that eligibility for absorption of contract workers must be evaluated against their documented employment in abolished categories under the Industrial Disputes Act and associated g....
Court upheld that a direct industrial dispute application by a contract worker is valid and automatic absorption into the employer's establishment is not mandated but preference should be given for a....
The court established that the automatic absorption of contract labour into permanent employment is not mandated by law, and the existence of a contractor-employee relationship precludes direct claim....
The court upheld that a workman may file an industrial dispute directly with the Tribunal without government referral, affirming rights under legislative amendments pertaining to contract labour abso....
The direct filing of an Industrial Dispute by workers under the amended provisions is valid; tribunals may direct absorption into employment if conditions allow, balancing legislative and judicial in....
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.