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2024 Supreme(Online)(CAL) 4439

CALCUTTA HIGH COURT
Mr. Justice Ravi Krishan Kapur, J
TATA STEEL LIMITED HALDIA CONTRACTORS MAZDOOR SANGHA AND ANR – Appellant
Versus
STATE OF WEST BENGAL AND ANR – Respondent
WPA 8602 / 2023



Advocates:
Mr. Soumya Majumder, Ms. Sanjukta Dutta, Mr. Sirsanya Bandyopadhyay, Ms. Tapati Samanta

The notification issued by the State to regulate recruitment in industrial establishments is unconstitutional, arbitrary, and violates the Industrial Disputes Act and Articles 14 and 19(1)(g) of the Constitution.

Headnote:(A) Industrial Disputes Act, 1947 - Sections 2(p), 3, 4, 10, 12, 18 - Employment Exchange Compulsory Notification of Vacancies Act, 1959 - Notification issued by State to regulate recruitment in industrial establishments - Held, notification is ultra vires the Act, arbitrary, and unconstitutional as it contravenes existing statutory mechanisms and violates Articles 14 and 19(1)(g) of the Constitution. (Paras 3, 6, 7, 17, 18)

(B) Locus Standi - Petitioners, as a registered trade union, have the right to challenge the legality of the notification despite political affiliations. (Paras 15, 16)

Facts of the case:
The petitioners challenge a notification issued by the State aimed at regulating recruitment in industrial establishments, claiming it violates the Industrial Disputes Act and is arbitrary.

Findings of Court:
The notification is excessive, arbitrary, and unconstitutional, quashing it and declaring all actions taken under it null and void.

Issues: Whether the notification contravenes the Industrial Disputes Act and the Constitution, and the petitioners' locus standi to challenge it.

Ratio Decidendi: The court found the notification to be an unreasonable restriction on the right to carry on a profession, lacking statutory authority and violating established legislative frameworks.

Result: WPA 8602 of 2023 stands allowed.

Table of Content
1. challenge to notification (Para 1 , 2 , 3)
2. impugned notification's objectives (Para 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17)
3. outcome of the case (Para 18)

Ravi Krishan Kapur, J .:

1. The petitioners assail a Notification dated 27 June 2022 issued by the respondent State.

2. For convenience, the notification is set out below :

Government of West Bengal Labour Department Establishment Branch (LC) New Secretariat Buildings, 12th Floor 1, K.S. Roy Road, Kolkata – 700001 Memo: Labr/638/LC-Estt., Dated: 27/06/2022 NOTIFICATION It has been observed that, engagement of employees is being made in different industrial establishments without apprising the State Government and several anomalies have been reported in this regard.

Moreover, Charter of Demands are being raised from time to time by different trade unions and sometimes settlements are arrived at, keeping the State Government in the dark.

As a result, the State Government being unaware of such engagements does not have any updated database regarding the vacancy position, employment generation and industrial relation prevailing in that area.

With a view to streamline the recruitment/engagement process, in different industrial establishments and to maintain the industrial peace and harmony, the following Committee for Employment and Finalization of Charter of Demands is proposed to be constituted in respect of Haldia and Kolaghat Industrial Area of PurbaMedinipur District and Kharagpur Industrial Area of PaschimMedinipur District:

PurbaMedinipur Haldia and Kolaghat Industrial Area Chairman : District Magistrate Secretary : Deputy Labour Commissioner Members :

Chairman, Haldia Development Authority SDO, Haldia Additional Labour Commissioner (From State Labour Department) 2 Assistant Labour Commissioner 2 Representatives of concerned management Factory Inspector Joint Director of Employment Additional Director of Employment PaschimMedinipur Kharagpur Industrial Area Chairman: District Magistrate Secretary: Deputy Labour Commissioner Members:

Additional Labour Commissioner (From State Labour Department) 2 Assistant Labour Commissioner 2 Representatives of concerned management Factory Inspector Joint Director of Employment Additional Director of Employment The function of the Committee will be as follows:

1. The committee will maintain and supervise the recruitment of contractual/permanent workers/employees in each and every industrial/commercial establishment. No recruitment will take place without the knowledge of this Committee. (emphasis added)

2. The Joint/Deputy/Assistant Labour Commissioner concerned will act as Conciliation Officer in respect of the industrial disputes raised in that area but the above noted Committee should be apprised of such disputes and settlements arrived at.

3. The committee will also supervise the finalization of Charter of Demands with a view to maintain the industrial relation in a harmonious manner.

This is issued in the interest of public service.

By order of the Governor, Principal Secretary, Government of West Bengal.

Memo: Labr/638/LC-Estt., Copy forwarded for information and necessary action to:

1. P S to MOS(IC), Labour Department,

2. Labour Commissioner, WB,

3. Director of Employment, WB, Dated: 27/06/2022

4. Chief Inspector of Factories, WB,

5. Chief Inspector of Boiler, WB,

6. District Magistrate, PaschimMedinipur

7. District Magistrate, PurbaMedinipur

8. Officer copy Special Secretary.

3. On behalf of the petitioners, it is contended that the notification has been issued without authority of law and dehors any statutory powers. The notification is also contrary to and in violation of the mechanism for settlement of industrial disputes under the Industrial Disputes Act 1947 (the Act). On a combined reading of sections 2(p), 3, 4, 12 of the Act, it would be evident that the Act and Rules framed thereunder contemplate resolution of disputes by way of bipartite settlement whereas the impugned notification has introduced a mechanism of triparti

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