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2025 Supreme(Mad) 4718

IN THE HIGH COURT OF JUDICATURE AT MADRAS 
D.BHARATHA CHAKRAVARTHY, J.
The Management, Shri Anandakumar Mills Limited - Appellant
Versus
The Presiding Officer, Labour Court, Coimbatore - Respondent
W.P.No.2051 of 2008 and M.P.No.1 of 2008
Decided On : 28-01-2025

Advocates:
Advocate Appeared:
For the Appellant : Mr.S.Shivathanu Mohan and M/s.N.Swathy, for M/s.S.Ramasubramaniam and Associates
For the Respondents: Mr.S.Mukunth, Senior Counsel, Asst. by Mr.N.Krishna Kumar, for M/s.Sarvabhauman Associates

Termination classified as punitive requires prior approval under statutory provisions, rendering non-compliance void ab initio.

Headnote:(A) Industrial Disputes Act, 1947 - Sections 18(1), 33(1)(b) and 33(2) - Termination of employment - Workmen claimed wrongful termination without prior approval from the Labour Court - Management failed to demonstrate lawful grounds for termination, rendering action void ab initio - Wages and benefits from the date of termination ordered for workmen - Previous settlements on similar claims acknowledged. (Paras 6, 14, 19, 20)

(B) Contract of Employment - The nature of termination must be assessed to determine if statutory provisions under Section 33 are applicable - Termination simpliciter does not require prior approval, but if punitive, it invokes provisions of Section 33. (Paras 14, 18)

Facts of the case:
The management failed to implement a settlement for employees leading to disputes; workmen were terminated with retrospective effect without proper compliance with the Act.

Findings of Court:
The Labour Court rightly ruled that termination was void due to lack of authorization and signed obligations by the management.

Issues: The legality of the management's termination of workmen during the pendency of the previous dispute.

Ratio Decidendi: The court held that the termination was punitive and thus violative of previous statutory requirements.

Result: Writ petition dismissed.

Table of Content
1. management's failure to implement settlement. (Para 2 , 3)
2. workmen's claims for unpaid wages. (Para 4 , 5)
3. counterarguments regarding dismissal. (Para 6 , 7)
4. statutory provisions governing terminations relevant. (Para 8 , 14)
5. termination deemed punitive triggering section 33. (Para 15 , 19)
6. judgment emphasizes non-compliance leads to void termination. (Para 20 , 21)

ORDER :

D. BHARATHA CHAKRAVARTHY, J.

This Writ petition is filed challenging the common order, dated24.11.2006 passed by the Labour Court, Coimbatore in C.P.Nos.145 to 153 of 2005. By the said order, the Computation Petitions, filed by the nine workmen, who are arrayed as respondent Nos.2 to 10 herein, were partly allowed. A sum of Rs.97,925/- each to the petitioners in C.P.Nos.145, 146, 147, 150 and 152 of 2005, a sum of Rs.96,050/- to the petitioner in C.P.No.153 of 2005 and a sum of Rs.99,816.25 ps each to the petitioners in C.P.Nos.148, 149 and 151 of 2005 were ordered to be paid.

2. The claim of the workmen before the Labour Court is that they are the employees of the mill. There were 190 permanent employees, 152 badlis and 26 apprentices in the management mill, which is a Group - D mill. On 17.05.1996, the management entered into a settlement under Section 18 (1) of the Industrial Disputes Act, 1947 (hereinafter referred to as the 'Act'), in which, it agreed to accord permanency to the badlis and apprentices who had put in 45 months of continuous service. However, the settlement was not implemented. Therefore, the trade union raised a dispute. A failure report was submitted on 06.06.2003.

3. Under the circumstances, the management, with an ulterior motive, failed to pay electricity charges and attempted to stop the operation of the mill. Again, a fresh dispute was raised before the Assistant Commissioner of Labour and even though workers agreed to increase the productivity by 100%, the management refused to operate the mill and intended to engage coolies. On 06.07.2003, the management also declared a lockout without following the provisions of the law. Thereupon, the Assistant Commissioner of Labour sent a report on 09.01.2004 informing all these facts. The Government referred the dispute to the Industrial Tribunal for adjudication. The earlier dispute was also referred for adjudication as per G.O.D.No.1195, dated 16.09.2004. The same was pending in I.D.No.444 of2004.

4. In the meanwhile, the management obtained resignation letters from some of the employees and paid compensation to them. The workmen, involved in the present case, did not accept the demands of the management and did not resign their job. While so, on 07.01.2005, the management issued a notice to the workman Nos.2 to 10 that from 06.07.2003, they were discharged from service. The workmen sent a reply on 21.01.2005 refuting the allegations. When the dispute raised is already pending before the Court, the order of dismissing the workmen on 07.01.2005 with effect from 06.07.2003 is illegal. The management ought to have obtained permission to dismiss the workmen from service. Therefore, the order of dismissal of the workmen is illegal and thus, the workmen are entitled to salary and other benefits for the period from 06.07.2003 to 31.01.2005. Therefore, the Claim Petitions were filed.

5. The Claim Petitions were resisted by the management. The operation of the mill was stopped only because of an increase in the cost of raw materials, whereby, the management was not able to sell the yarn even for the market prices. Therefore, on 06.07.2003, the operation of the mill was temporarily suspended. It was informed to the workers that they will not be entitled to salary and the lay-off salary for the suspension period. The management only suspended the operation of the mill and did not close down the mill. The dispute raised by the Labour Union is pending in I.D.No.444 of 2004. The Computation Petitions are not maintainable as they do not have any pre-existing rights. Out of 365 wor

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