Workmen of cooperative societies can raise industrial disputes under the U.P. Industrial Disputes Act, 1947, despite being governed by cooperative regulations.

JUDGMENT :

Vikas Budhwar, J.

Noticing divergent views and finding it difficult to reconcile, the learned Single Judge vide order dated 3.2.2015 has referred the following questions to be answered by Larger Bench.-

''Whether workmen of Kisan Sahkari Chini Mill Ltd. whose services are governed by the Standing Order Covering The Condition of Employment of Workmen In Vacuum Pan Sugar Factories In U.P. can raise industrial dispute involving the provisions of U.P. Industrial Dispute Act, 1947 ?''

Facts

2. Broadly, the facts of the case are that Kisan Sahkari Chini Mills Ltd. (in short 'Sugar Mill') is engaged in the business of manufacturing of sugar by vacuum pan process and claims to have obtained a licence under the provisions of U.P. Vacuum Pan Sugar Factories Licensing Order, 1969 (in short 'Licensing Order 1969').

3. In exercise of the powers conferred under clause (3) of Article 348 of the Constitution of India read with clause (b) of Section 3 of the U.P. Industrial Disputes Act, 1947 (in short 'U.P. I.D. Act, 1947'). The State of Uttar Pradesh framed Standing Orders regulating the Condition of Employment of Workmen in Vacuum Pan and Sugar Factories of Uttar Pradesh on 27.9.1988. Owing to demand for revision of the Standing Orders, revised Standing Orders Governing the Condition of the Employees and Workmen in Vacuum Pan Sugar Factories in Uttar Pradesh came to be framed on 29.4.2022.

4. Dispute with regard to termination of the employment of the workmen resulted in reference under Section 4-K of the U.P. I.D. Act, 1947 which in turn got registered as adjudication cases. Objections were preferred by the Sugar Mill taking a ground that since the Sugar Mills are governed under the provisions of U.P. Cooperative Societies Act, 1965 (in short 'Co-operative Act, 1965') read with U.P. Cooperative Societies Employees Service Regulations, 1975 (in short 'Regulations, 1975'), therefore, the adjudicating Courts under the U.P. I.D. Act, 1947 had no jurisdiction and authority to adjudicate the said disputes. The said objections came to be rejected by the Labour Courts holding that it had the competence to adjudicate the said disputes. Several writ petitions were filed before this Court, category 'A' against the order rejecting the objections raised by the Sugar Mill, category 'B' writ petition filed against the reference orders and category 'C' writ petition filed by the Workmen wherein challenge was raised to the order of the Labour Court holding that it had no jurisdiction to adjudicate the dispute since it falls under the provisions of the Co-operative Act, 1965.

5. On 29.8.2022, this Court appointed Amicus Curiae to assist the Court.

Arguments of Amicus Curiae

6. Sri Samir Sharma, Senior Advocate assisted by Sri Diptiman Singh, Amicus Curiae, submitted that the Sugar Mills are though engaged in manufacture of Sugar like private sector Sugar Mills but there lies a slight distinction that in the case of the petitioner-Sugar Mill the manufacture of Sugar is by Vacuum Pan Process. For the said purpose, a statutory licence is to be obtained under the provisions of Licensing Order, 1969. It is also submitted that in the Sugar Mills in question, the works are being executed by the employees and the workmen. As regards, the condition of the services of the workmen in Vacuum Pan Sugar Factories are concerned they are governed by the Standing Orders notified on 27.9.1988 which stood revised on 29.4.2022. With respect to the employees their service conditions are governed under U.P. Cooperative Sugar Mills and Distilleries Employees Service Regulation, 2015 (in short 'Regulation, 2015). According to the Amicus Curiae, since the Standing Orders issued from time to time specifically deals with the condition of the services of the workmen and reference has been made in the Standing Orders for adjudication of the dispute relating to condition of service