Back
2025 Supreme(Mad) 2875
IN THE HIGH COURT OF JUDICATURE AT MADRAS
M. DHANDAPANI, J.
Kovai Mavatta Pricol Thoshilalar, Otrumai Sangam, rep. By its General Secretary and Anr. – Petitioners
Versus
Government of Tamil Nadu, Rep. By its Secretary Labour & employment (D2) Department and Ors. – Respondents
W.P. NOS. 9479 & 974 OF 2015 W.P. NO. 21983 OF 2019 AND M.P. NO. 2 OF 2015 & W.M.P. NO. 21224 OF 2019
Decided On : 26-03-2025
For the Petitioners: Mr. S.Kumarasamy, for Mr. K.Bharathi, Mr. V.Prakash, SC, for M/s. K. Sudalaikannu.
For the Respondents: Mr. P. Kumaresan, AAG, assisted by Mr. K.Surendran, AGP, Mr. K. Rajasekar for M/s. IPN Associates.
The Government's declaration of an industry as a public utility service under the Industrial Disputes Act must be based on public emergency or interest, failure to which renders such declaration arbitrary and unlawful.
Headnote:(A) Industrial Disputes Act - Sections 2(n)(vi) and 40 - Government Orders declaring Auto Components Manufacturing Industry as public utility service - Challenged by union of employees claiming infringement of right to strike - Court found that neither public emergency nor public interest substantiated the declaration - The declaration was seen as arbitrary and against the provisions of the Act. (Paras 2, 25, 66-72)
(B) Right to Strike - The nature and context of declaring an industry as a public utility service must rest on public emergency or necessity, not merely to appease industry demands. (Paras 10, 40)
(C) Subjective Satisfaction - Proper documentation and reasoning are essential for the Government to substantiate its claim of public emergency and interest prior to such declarations. (Paras 51-60)
Facts of the case:
The petitioners, representing employees of an auto components manufacturing plant, challenged the validity of Government Orders from 2014 and 2019 designating their industry as a public utility service, arguing it infringes upon their right to strike.
Findings of Court:
The court quashed the Government Orders, citing a failure to demonstrate required public emergency or interest deemed necessary by provisions of the Industrial Disputes Act.
Issues: Key issues included the justification of declaring the industry a public utility service and whether the Government’s decision met legal criteria.
Ratio Decidendi: The court held the Government’s declaration lacked necessary public emergency and interest justifications, rendering it arbitrary and unlawful to deny workers their right to strike.
Result: Writ petitions allowed; Government Orders quashed.
| Table of Content |
|---|
| 1. introduction of the case and government orders at issue. (Para 1 , 2) |
| 2. petitioners' claims regarding the welfare of employees. (Para 3 , 4) |
| 3. definition and conditions for declaring public utility services. (Para 5 , 6 , 38 , 39) |
| 4. previous declarations and the intent behind public utility service status. (Para 7 , 30 , 31 , 32) |
| 5. arguments against the declaration based on lack of public emergency or interest. (Para 10 , 11 , 12 , 13 , 14) |
| 6. concerns over the collective bargaining rights of workers. (Para 16 , 17 , 18) |
| 7. respondents arguing for the necessity of public utility service designation. (Para 19 , 22 , 23) |
| 8. court's reflection on the procedures and necessity behind the government's actions. (Para 24 , 25 , 26 , 27 , 28) |
| 9. the lack of objective grounding for the government’s declaration was articulated. (Para 34) |
| 10. critique of the government's failure to meet statutory conditions. (Para 52 , 53 , 56) |
| 11. the necessity of public interest for declaring a service as public utility is underscored. (Para 57) |
| 12. the declaration was deemed arbitrary leading to the quashing of the orders. (Para 71) |
| 13. final conclusion quashing the government orders. (Para 72) |
ORDER :
(M. DHANDAPANI, J.)
The issuance of Government Order adding ‘Auto Components Manufacturing Industry’ to the First Schedule of the Industrial Disputes Act (for short ‘the Act’) and the issuance of Government Order declaring the ‘Auto Component Manufacturing Industry’ as a public utility service for a period of six months from the date of publication of notification in the Tamil Nadu Government Gazette is put in issue before this Court by the petitioners by filing the present petitions.
2. While the writ petition in W.P. Nos.9479/15 and 974/15 have sought for quashment of G.O. (Ms) No.144 dated 3.12.2014 and G.O. (Rt.) No.331 dated 3.12.2014, W.P. No.21983/19 has been filed seeking quashment of G.O. (Rt.) No.180 dated 14.6.2019 and the consequential notification of the aforesaid Government Order in the Government Gazette dated 3.7.2019.
3. It is the case of the petitioners that they are Unions functioning for the welfare of the employees in Pricol Ltd. Plant III and Plant I and that the industry is a manufacturer of automotive component like Dash Boards, Meters & Oil Pumps and that the industry has been in existence for more than 35 years. It is the further case of the petitioners that during the third week of March, 2015, it came to the knowledge of the petitioners that the 1st respondent had included the auto components manufacturing industry in the First Schedule to the Act and also declared the said industry as a public service utility by issuing G.O. (Ms) No.144, Labour & Employment dated 3.12.2014.
4. In the above backdrop, it is the further case of the petitioners that the said declaration adversely affects the employees working in the auto component manufacturing industry. It is the further averment of the petitioners that right to strike for just and reasonable causes, which is a right of the labour force, stood negated by the declaration of the auto component manufacturing industry as public utility service. Once the industry is declared as a public utility service, it is practically not possible to resort to strike, which is a weapon in the hands of the workmen to receive just and reasonable work benefits, though equally, declaration of lockout by the management also stands negatived.
5. It is the further averment of the petitioners that Section 2 (n)(v) defines public utility service as “any industries specified in the First Schedule which the appropriate government may, if satisfied that public emergency or public interest so requires, by notification in the official gazette declare to be a public utility service for the purpose of the Act for such a period as may be specified int he notification and it has been further mandated that the said period, at the first instance shall not exceed six months, but may, by a like notification, be ex
