IN THE HIGH COURT OF JUDICATURE AT MADRAS
Mr.Justice R.SUBRAMANIAN, Mr.Justice G.ARUL MURUGAN, JJ
Management of Kandasamy Spinning Mills Private Limited – Appellant
Versus
Presiding Officer, Industrial Tribunal, Chennai – Respondent
JUDGMENT :
R. SUBRAMANIAN, J.
Challenge in the above writ appeals is to the common order made by the writ Court dated 05.10.2012 in W.P.Nos. 29877 & 29878 of 2008. Both the writ petitions were filed by the Management against the award passed by the Industrial Tribunal, Chennai in I.D.Nos. 48 & 25 of 2004 dated 23.07.2008 & 24.07.2008 respectively.
2. Reference in those two industrial disputes was made by the Government on the question of the illegal cessation of operation by the appellant / Mill. The question that was referred to in both the industrial disputes was identical and it reads as follows:-
"Whether the demand of the Union to revoke the illegal cessation of the opertion of the factory from 02.05.2003 by the Management and payment of back wages with continuity of service is justified."
3. The main contention of the Management before the Industrial Tribunal was that the land, building and the machinery of the Mills were leased out to one Selvamani and others, who started business in the name of M/s.Jupiter Packing Company. The said Company engaged labourers independently and was doing the business of reeling by getting yarn from the Spinning Mills. It is also contended that the
The liability for compensating workers following an illegal closure lies with the party that engaged them, necessitating a determination by the Labour Court.
The main legal point established is that a lessor is not liable for ESI dues during the lease period and Section 93-A does not apply upon the termination of the lease.
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.
The main legal point established in the judgment is that the consequences of an illegal closure are statutorily prescribed, and the workmen are entitled to all the benefits under any law for the time....
The definition of employer extends beyond contractual relationships, focusing on economic control over workers' livelihoods, establishing liability for compensation in interconnected businesses.
Closure of an industrial establishment requires prior governmental permission under the Industrial Disputes Act; failure to comply renders terminations invalid, allowing entitlements to compensation ....
The court upheld that the closure of the employer's business complied with statutory provisions, affirming the award of closure compensation to workers under the Industrial Disputes Act.
The validity of closure negates grounds for reinstatement unless framed properly within statutory provisions under the Industrial Disputes Act.
Non-employment of the workman found unjustified; entitlement to increased compensation established per labour law standards.
The court upheld the legality of the closure of the industrial establishment, affirming that the majority acceptance of a severance package by workers binds all, including dissenting individuals.
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