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2024 Supreme(Online)(MAD) 42643

HIGH COURT OF MADRAS
Mr.Justice D.BHARATHA CHAKRAVARTHY, J
THE MANAGING DIRECTOR – Appellant
Versus
THE PRESIDENT – Respondent
W.P. No.4002 of 2014 and M.P.No.3 of 2014 and W.M.P.No.36099 of 2024



Advocates:
Mr.P.V.S.Giridhar for M/s Giridhar and Sai, Mr.P.R.Thiruneelakandan for R1, for R2 – Labour Court

The court ruled that non-employment of workmen was illegal, affirming reinstatement with modified back wages due to management's failure to follow proper procedures.

Headnote:(A) Industrial Disputes Act, 1942 - Sections 2(cc), 25F, 25FFA, 25FFF - Non-employment of workmen - The Labour Court ordered reinstatement with full back wages, which was contested by the management on grounds of closure due to government order - The court clarified that the closure was not bona fide and reinstatement was warranted. (Paras 10-14)

(B) Back Wages - The court modified the Labour Court's order, granting 50% back wages instead of full wages, considering the duration of service and circumstances of non-employment. (Paras 13-14)

Table of Content
1. closure definition and non-employment (Para 11)

ORDER

This writ petition is filed challenging the award of the Labour Court, Puducherry , made in I.D. No.18 of 2009 dated 19/02/2013. By G.O.Rt.

No.122/Lab/AIL/J/2009 dated 20/08/2009, the Government of Puducherry referred the questions as to, (i) Whether the dispute raised by Athiappa Chemicals (p) Limited Employees Welfare Union against the management whether non-employment of 34 workmen named therein is justified;

(ii) if justified to what relief the petitioners are entitled to; and (iii) to compute the relief in terms of money if it can be computed.

2. A claim petition was filed by the workmen. They state that the labour welfare legislations were not followed, even concerning the workmen who have been working for more than 10 years. On 10/08/2006, when the factory was alleged to have discharged toxic effluents in the air, affecting the environment, the management announced a lock-out on 12/08/2006. After the Orders of the High Court in W.P. No. 18483 of 2007, the factory reopened on 06/07/2007. Even in the said writ petition, the workmen filed M.P. No. 3 of 2007 in which the management was directed to recall the laid-off workmen for duty when it commences the operations. However, operations commenced, only 10 out of 45 workmen alone were called, that too on 26/10/2007. The rest were non-employed as such a dispute was raised. Upon failure report of Conciliation, the matter was referred and hence the claim petition.

3. The claim was resisted by the management. It is stated that the Government ordered the closure of the industry by an order dated 11/08/2006. However, the pollution could not be proved, and the High Court, by its order dated 26/07/2007 made in W.P. No. 18483 of 2007, permitted the re- commencement of the operations. While so, the employees filed M.P. No. of 2007, in which the learned Senior Counsel, appearing on behalf of the management, also agreed to reinstate the workers. Accordingly, taking note of the situation, after recommencement, ten workmen were called for work. Nine reported. Again, another seven were called for work. The workmen, at this point, resorted to illegal strike. Their non-employment is not wilful and only because the industry is closed by the Government.

4. With the above pleadings, when the matter was taken up for enquiry, one Chinnappan was examined as WW-1 for the workmen. For the management, one Sathiswaran was examined as RW- and Ex.R1 to R-13 were marked. The Labour Court considered the case of the parties and ordered that the workmen are entitled to reinstatement with continuity of service with full back wages. Aggrieved, the present writ petition is filed by the management.

5. Mr P.V.S. Giridhar , the Learned Senior Counsel appearing for the management would submit that the Labour Court had gone beyond the claim of the workmen. They had pleaded as if they were retrenched without payment of compensation under Section 25F of the Industrial Disputes Act, 1942 (in short 'the Act'). As such, the Labour Court ought to have decided only the said issue and granted the compensation payable. Even otherwise, it can be seen that the industry is closed by the order of the Government at best the workmen will be entitled to closure compensation as there was no termination of service by the management. The Labour Court erred in ordering reinstatement. It further erred in granting entire back wages.

6. To contend that the Labour Court ought not to have gone into the questions other than the pleadings, the Learned Senior Counsel relied upon the Judgment of the Supreme Court of India in Indian Hume Pipe Co. Ltd -Vs- Workmen 1 . To press home the point that the industry was closed, reliance was made on paragraph 51 of the Judgment in J.K. Hosiery Factory -Vs- Labour Appellate Tribunal of India 2 .

7. The Learned Senior Counsel relied upon paragraphs 78 and 111 of the Judgment of the Supreme Court of India in Punjab Land Development and

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