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2025 Supreme(Mad) 2977

IN THE HIGH COURT OF JUDICATURE AT MADRAS
D. BHARATHA CHAKRAVARTHY, J.
President, Fair Thozhilalargal Sangam - Appellant
Versus
General Manager, M/s. Fine Automative & Industrial, Radiators Pvt. Ltd. - Respondent
W.P.No.9033 of 2004
Decided On : 28-03-2025

Advocates:
Advocate Appeared:
For the Appellant : Mr.V.Ajay Khose
For the Respondents: Mr.S.Jayaraman

Termination of workers after union formation without adhering to mandatory procedures of the Industrial Disputes Act is unjustified, warranting compensation instead of reinstatement.

Headnote:(A) Industrial Disputes Act, 1947 - Section 2-A and Section 33(1)(b) - Writ Petition filed by trade union challenging the Labour Court's award rejecting claims of workmen for reinstatement after alleged unfair labor practices. (Paras 1-8)

(B) Nature of Dispute - Termination of workmen following the formation of a trade union deemed unjustified as the management failed to comply with mandatory provisions of the Act during the termination process. (Paras 5-7)

(C) Domestic Enquiry - Conducted by an advocate for the management found to lack impartiality, affecting validity. (Paras 7.7, 7.8)

Facts of the case:
Petition filed challenging terminations of workmen by management after union formation; claims of irregularity in process and retaliation for union activities presented.

Issues: Whether actions of the management were justified post-formation of the union and violations of labor rights.

Ratio Decidendi: Court found procedural violations substantial, indicating clear bias against workmen and held terminations as unjustified mandating compensation but not reinstatement due to the delay.

Result: Writ Petition partly allowed; award set aside, workers entitled to compensation.

ORDER :

D. BHARATHA CHAKRAVARTHY, J.

A. The Writ Petition:

This Writ Petition is filed by the FAIR Thozhilalargal Sangam, a Trade Union, challenging the award of the Labour Court, Puducherry, dated 11.02.2003 made in I.D.No.6 of 1999. By the said award, the Labour Court answered the reference rejecting the claim of the workmen and answering the points in favour of the management.

B. The Reference:

2. By G.O.Rt.No.26/99/Lab/L, dated 05.02.1999, the following was referred for adjudication by the Government of Puducherry:

1. Whether the non-employment of the workmen listed in Annexure-II by the management of M/s.Fine Automotive and Industrial Radiators (P) Limited, Pondicherry is justified? If so, to what relief they are entitled?

2. To compute the relief, if any awarded in terms of money, if can be so computed.

ANNEXURE - II

LIST OF WORKMEN TERMINATED

Sl.No.Name of the workmenDesignation
1.P.SathiyamaniOperator
2.B.SeshachalamFitter
3.P.ChakkaravarthiAssembler
LIST OF TEMPORARILY TERMINATED WORKERS
4.M.ViswanathanFitter
5.T.M.EzhumalaiAssembler
6.Veerabathiran RadiatorTester
7.M.AnbalaganFitter
8.S.MuruganWelder
9.P.KumarDipping Operator
10.P.MuruganTester
11.K.BalakrishnanWelder
LIST OF ORALLY TERMINATED WORKERS
12.K.BaluElectrician
13.M.SubramaniFitter
14. T.PrabunathanHelper
15.S.RamanHelper
16.E.VelanHelper
17.V.MuruganHelper
18.A.BaskarHelper
19.V.PathiFitter
20.U.ThirumalFitter
21.S.VeeramaniFitter
22.P.NagamuthuFitter
23.F.SavuriappanWelder
24.O.M.EzhumalaiHelper
25.S.VinayagamFitter
26.R.JayamurthiFitter
27.A.KannivelFitter
28.M.GovindarajHelper
29.S.DanasuCore Assembler
30.V.KasinathanWelder
31.K.Ashok KumarElectrician
32.S.Peter FrancisHelper
33.J.JagadeesanTester
34.M.GnanasekarHelper
35.T.EzhumalaiHelper
36.N.ParthibanHelper
37.N.ArumugasamyHelper
38.P.JanardhananDipping Operator
39.U.PanduranganHelper
40.M.SenthilHelper

C. The case of the workmen:

3. The case of the workmen before the Labour Court was that the respondent management resorted to unfair labour practices on sensing that the workers are forming trade union. On 08.12.1996, they formed the trade union called FAIR THOZHILALARGAL SANGAM affiliated to CITU. Thereupon, on 30.12.1996, the said trade union’s Vice President Sathiamani, Secretary - Jayabal, Joint Secretary - Seshachalam, Executive Member - Chakkaravarthy who are all workers of the respondent management were terminated from service. On 31.12.1996, one other Executive Member of the petitioner’s trade union Iyyappan was also terminated from service. Those terminations were illegal and without adhering to the principles of natural justice and carried out purely for the purpose of wrecking vengeance for they having formed trade union.

3.1. Before, the Labour Officer (Conciliation), a dispute was raised relating to such termination. On the intervention of the Superintendent of Police (South) and due to workers unity, the respondent management came for discussion and ultimately, agreed to take them back and to give employment. Subsequently, on 10.01.1997, those five workers started functioning under the respondent management. However, the respondent management once again resorted to unfair labour practices and orally terminated the employees Sathiamani, Jayabal, Seshachalam, Chakkaravarthy, Iyyappan, Subramani, Balu and Selvaraj.

3.2. On 27.01.1997, they expressed their grievances by sending letters to the management. Thereupon, by virtue of the letter, dated 08.02.97, the respondent management informed Sathiamani, Jayabal, Seshachalam, Chakkaravarthy, Iyyappan about their terminations. Even during the pendency before the Labour Officer (Conciliation), the respondent resorted to such termination. Various workers were also terminated from service subsequently. The respondent also engaged new workers in the place of terminated employees.

3.3. The respondent management also resorted to Domestic Enquiry in respect of few officials by appointing one K.Babu, who is an Advocate for the respondent management and who also participated in the conciliation proceedings be

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