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2006 Supreme(All) 628

[2006(2) ADJ 661 (All)]
ALLAHABAD HIGH COURT
BEFORE : SHISHIR KUMAR, J.
M/s. METAL TECHNOLOGY CORPORATION AND ANOTHER ...Petitioners
Versus
LABOUR COURT, U.P., VARANASI AND OTHERS ....Respondents
(Civil Misc. Writ Petition No. 21679 of 1999, decided on 28th February, 2006)

Advocates:
Counsel :
S.S. Nigam for the Petitioner.

Headnote:Recovery Certificate—Issue of, under Section 33-C of I.D. Act, 1947, against petitioner's partners, to get closure compensation, encashment of earned leave and Bonus, for years 1996-97 and 1997-98, through their representative—Written statement filed against, by petitioners, stating therein that amount, mentioned in said application, was disputed, as petitioner's establishment, being registered under Factories Act, 1948, was closed, w.e.f. 25-3-1998, and prior to closure, there were illegal strikes by workers on three occasions—Thus, services of workers, were interrupted, for period of illegal strikes, hence, closure compensation, due to strike, could not be computed—Because in view Section 25-FFF, closure compensation was payable, to those workers, who were in continuous service, for not less than one year—Further, that Section 2(g) of U.P. I.D. Act, 1947, excludes period of illegal strikes, from continuous service and legality and illegality, could only be decided, on a reference under Section 4(k) of U.P. I.D. Act, 1947—And that as such, workers were not entitled to relief claimed regarding Bonus—And, moreover that proceedings under Section 33-C, was not a forum for same, was provided under Section 21 of Bonus Act—Respondents repelled objection of petitioners, about maintainability of application, and directed petitioners to pay Bonus for year 1997, with interest @ 15%, closure compensation, encashment of earned leave and amount, in lieu of closure notice with 15% interest, from date of closure to date of payment—Petition against, for quashing R.C., etc.—Proceedings under Section 33-C, was in nature of execution—Unless disputes has already been adjudicated by Labour Court, either under Section 10, or under Section 4-K, proceedings under Section 33-C(2), would not be maintainable—Accepted claim between parties, can be adjudicated, under Section 33-C(2)—As regards, entitlement of Bonus to its employees, if same was disputed, it cannot be adjudicated in proceedings, under Section 33-C(2), as said proceedings, was in nature of execution, and therefore, that did not involve right of claimants, to relief, and corresponding liability of employer—Therefore, proceedings, initiated by respondents, under Section 33-C, itself was not maintainable—Impugned order and recovery against petitioners quashed and set aside—Writ petition was allowed—However, open to respondent-workmen to get their rights adjudicated before proper Forum, as provided in law. [Industrial Disputes Act, 1947—Sections 33-C(2), 25-FFF, 2(6) and 10—U.P. Industrial Disputes Act, 1947—Sections 2(g) and 4(k)—Payment of Bonus Act—Section 21]. [Paras 23, 24, 25, 26 and 27]

       

JUDGMENT

Hon’ble Shishir Kumar, J.—The present writ petition has been filed for quashing the recovery certificate dated 14.2.2000 and the Office Order dated 26.6.2000 and the order dated 29.4.1999 passed under Section 33-C (2) of the Industrial Disputes Act before respondent No. 2 against the petitioners partner to get the closure compensation, encashment of earned leave and bonus for the year 1996-97 and 1997-98 through their representative Sri Kamlapati Tripathi copy of the said application has been filed as Annexure-1 to the writ petition. After issuance of the notice, a written statement was filed on behalf of the petitioner stating therein that the amount mentioned in the said application is disputed as the petitioners’ establishment being registered under the Factories Act was closed w.e.f. 25.3.1998 and prior to closure, there were illegal strikes by the workers on three occasions namely from 20.3.90 to 20.4.90, from 20.8.96 to 24.8.96 and from 22.11.97 to 6.12.1997. Thus the services of the workers were interrupted for the period of illegal strikes hence, closure compensation due to the strike, could not be computed. It was further stated that vide Section 25-FFF of the Industrial Disputes Act, closure compensation is payable to those workers, who are in continuous service for not less than one year. Further, Section 2 (g) of the U.P. Industrial Disputes Act, excludes the period of illegal strike from continuous service and the legality and illegality of the strike, could only be decided on a reference under Section 4 (k) of the U.P. Industrial Disputes Act. As such, the workers are not entitled for the relief claimed regarding bonus. Further, submission was made that proceeding under Section 33-C (2) is not a forum for the same is provided under Section 21 of the Bonus Act, which is a complete procedure for recovery of bonus and Section 22 directs that if there is any dispute, the same would be deemed to be industrial dispute and could be referred to under the Industrial Disputes Act. Neither the respondents file any paper in support of their claim nor any witness was examined in support thereof. On the other hand, on an application moved by the employer, a file was summoned from the office of the Deputy Labour Commissioner, which clearly indicated the documents regarding the illegal strike available on the aforesaid file, which clearly corroborates the case of the petitioners.

2. Respondent No. 2 vide its order dated 29.10.1997 repelled the objection raised on behalf of the petitioner about the maintainability of the application and other legal aspect and directed the petitioner to pay the bonus claimed for the year 1997 with interest to the tune of 15%, closure compensation, encashment of earned leave and the amount in lieu of closure notice with 15% interest from the date of closure to the date of payment.

3. It has been submitted on behalf of the petitioner that the respondents have not submitted any supporting evidence to claim the aforesaid benefits. It is well settled in law now that the proceedings under Section 33-C (2) of the Industrial Disputes Act is in the nature of execution proceeding when it is based on undisputed and existing right could only be decided. The legality and illegality of the strike being item No. 4 in the second schedule in the Industrial Disputes Act, the question could only be decided in the reference by the proper Government either under Section 10 or under Section 4-K of the U.P. Industrial Disputes Act. Therefore, the application under Section 33-C (2) was not maintainable. The further submission has been made on behalf of the petitioner that in view of the proviso of Section 2 (g) continuous service has been defined, which clearly excludes the period of illegal strike; therefore, the order of payment of closure compensation, which includes the period of strike, is not maintainable. Unless a reference for determination of period of strike as legal or illegal is made by the appropriate














































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