IN THE HIGH COURT OF ORISSA, CUTTACK
S. Panda, S.K. Panigrahi, JJ.
Sun Pharmaceutical Industries Ltd. - Appellant
Versus
State Of Odisha & Anr. - Respondents
W. P. (C) No. 6156 of 2017
Decided On : 11-06-2021
Labour Dispute - Industrial Disputes Act, 1947 - Section 2(s), Section 10, Section 12 - The judgment discusses the reference by the Government, jurisdiction of the Court, and the workman's entitlement to back wages. It highlights the legal provisions and their interpretations, influencing the court's decision.
Fact of the Case:
The case involves a dispute over the termination of an employee, Opposite Party No.2, by M/s. Ranbaxy Laboratories Ltd. The Labour Court held the termination illegal and ordered reinstatement with 50% back wages. The petitioner challenges the order, claiming jurisdictional issues and lack of workman status for Opposite Party No.2.
Finding of the Court:
The Court found that the reference by the Government was binding on Sun Pharmaceuticals, the successor of M/s. Ranbaxy Laboratories Ltd. It also affirmed its jurisdiction to decide the dispute and determined Opposite Party No.2 as a 'workman' under the Industrial Disputes Act, 1947. The Court held the termination illegal due to non-compliance with natural justice principles and ordered 100% back wages for Opposite Party No.2.
Issues: The issues revolved around the jurisdiction of the Court, workman status of Opposite Party No.2, compliance with natural justice in the domestic enquiry, and entitlement to back wages.
Ratio Decidendi: The Court's decision was influenced by the binding nature of the reference, the determination of workman status based on duties performed, and the violation of natural justice in the domestic enquiry, leading to the illegal termination of Opposite Party No.2.
Final Decision: The Court affirmed the Labour Court's order, modifying the back wages to 100% and disposing of the Writ Petition with no cost.
JUDGMENT
S.K. Panigrahi, J. - The petitioner by way of this writ petition, assails the award dated 31.12.2016 in I.D. case No. 32 of 2015 passed by the learned Presiding Officer, Labour Court, Bhubaneswar holding that the present petitioner was bound by the reference by Government and directing reinstatement of the Opposite Party No.2 with further direction to pay 50% back wages.
2. The factual conspectus of the present petition hovers around the order of termination of the opposite party No.2 w.e.f. 18.02.2014 and the alleged dispute was set into motion based upon a reference vide letter No.4643-IR(ID)-16/2015-LESI dated 22.05.2015 by the Government of Odisha, in the Labour and E.S.I. Department which runs as follows:
'Whether the termination of the services of Shri Niranjan Sahoo, Ex-District Manager, Maxxim by the management of M/s. Ranbaxy Laboratories Ltd., Maxxim Division, Western EdgeI, Unit No.201-204, 2nd Floor, Western Express Highway, Borivali (East), Mumbai, having their Regional Office at OLISA House, 2nd Floor, 4, Govt. Place (North), Kolkata-1 with effect from the 18th February 2014 is legal and/or justified? If not, to what relief the workman is entitled?'
3. The Opposite Party No.2 was employed with the erstwhile M/s. Ranbaxy Laboratories Ltd. as District Manager and was posted at Bhubaneshwar Headquarters w.e.f. 03.05.2010 in Maxxim Strategic Business Unit. During the short period of his joining in duty, his superiors identified issues of poor attitude, performance and team management by the Opposite Party No.2 and based on the same, the Regional Manager started conducting monthly reviews to guide and monitor him. On seeing, no significant improvement in the performance of the Opposite Party No.2 and the issues continued as such, it was recommended by the Strategic Business Unit to have his performance reviewed at Head Office, Mumbai. Accordingly, he was called to Head Office on 27.05.2012 and his performance was reviewed in the presence of HR and National Sales Manager. During the review process, it was observed that he was defiant on most of the points, even to the extent that he refused to sign the minutes of the meeting so held.
4. Subsequent to the same, there was no improvement seen in the working of the opposite party No.2 and when questioned, he projected indifferent attitude. Based on the same, the erstwhile Company decided to conduct a domestic enquiry against him through an independent Enquiry Officer and accordingly the services of Opposite Party No.2 were suspended vide letter dated 19.07.2013, pending enquiry. Thereafter, the concerned Regional Manager of the Maxxim Business Unit, while conducting a meeting of his District Managers at Cuttack, was illegally detained by the members of the Orissa Union with a demand of revoking the suspension of the Opposite Party No.2, for which the Company filed an FIR at the local Police Station. The Enquiry Officer submitted his report having afforded the opportunity of hearing to the Opposite Party No.2. Based on the findings thereof, the service of Opposite Party No.2 was terminated w.e.f. 18.02.2014 by erstwhile Ranbaxy Laboratories Ltd.
5. Being aggrieved by the punitive culture of the management of the said Company, the Odisha Sales Executives' Association raised an industrial dispute before the DLO, Cuttack for conciliation against the termination order and the same having failed, was referred by Appropriate Government to Presiding Officer, Labour Court, Bhubaneswar. The Presiding Officer during pendency of the proceeding without any further reference impleaded the petitioner as a party and issued summons to the petitioner. Prior to the date of reference, the said M/s. Ranbaxy Laboratories Ltd. had been amalgamated with M/s. Sun Pharmaceuticals Industries Ltd. and there was no existence of the said management as M/s. Ranbaxy Laboratories Ltd. on the date of reference. Therefore, it was contended that without the rectification of the reference by the appropriat
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