The court affirmed that employee status as 'workman' under the Industrial Disputes Act hinges on actual job functions, not merely titles, impacting claims for closure compensation.

JUDGMENT :

A.D. Maria Clete, J.

1. The short question that arises for consideration in this case is whether respondents 1 to 21 are entitled to claim closure compensation, notice pay, ex gratia, arrears of salary, leave encashment, leave travel concession (LTC), and bonus by way of claim petitions filed under Section 33C(2) of the Industrial Disputes Act, 1947.An incidental question was whether the respondents have proved their status as “workman” within the meaning of Section 2 (s) of the Industrial Disputes Act, so as to sustain the maintainability of their respective claims.

2. The petitioner–Management closed its factory located at Manali and, in compliance with the requirement under Section 2 5-O of the Industrial Disputes Act, 1947, obtained prior permission from the Government of Tamil Nadu. Such permission was granted by G.O. (D) No. 517, Labour and Employment Department, dated 17.10.2013 (marked as Ex.P2).While granting permission for closure, the Government, in its order, stated the following:

“He has further stated that they were not able to file finance to meet even day to day expenses in view of the working capital shortage. It was not even possible to pay the wages. The production of the factory was almost stopped in June 2012. Several attempts were made to revive the factory. As all the attempts made to revive the factory failed, it was decided by the Management to close the factory and to settle the claims to all the stakeholders.

The workmen of the factory raised a dispute before the Deputy Commissioner of Labour-II, Chennai for the revival of the factory. However, bilateral discussions were held as advised by the Deputy Commissioner of Labour between the Management and the workmen represented by the Futura Polyesters Employees Union. Ultimately a settlement was reached between the Management and the workmen under section 18(1) of the Industrial Disputes Act, 1947 on 16.8.2013. Subsequently, it was also converted as settlement under Section 12 (3) of the Industrial Disputes Act 1947. The settlement enabled the workmen to receive ex-gratia apart from statutory dues. Although the workmen were entitled to receive Rs.13.35 crores towards statutory dues like notice pay, gratuity and compensation, the Management was decided to give Rs.19.89 crores as ex-gratia to workmen. Hence, the Chairman and Managing Director, Futura Polyesters Limited has requested to grant necessary permission to close down the factory under section 25(O) of the Industrial Disputes Act, 1947.

Notices were issued to the Management of Futura Polyesters Limited and the Futura Polyesters Employees Union and an hearing was conducted by the Principal Secretary to Government, Labour and Employment Department on 04.10.2013. Both the representatives of the Management and Employees Union of Futura Polyesters Limited participated in the hearing. Both the sides advanced their arguments. The written submissions by both the parties have also been received.

The Employees Union of Futura Polyesters Limited has stated that since the management has confirmed the tripartite settlement made on Polyesters Limited to close down the Factory without any objection. The Chairman and Managing Director, Futura Polyesters Limited has also reque