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2025 Supreme(Online)(Mad) 40859
IN THE HIGH COURT OF JUDICATURE AT MADRAS
M.DHANDAPAN, J
Kovai Mavatta Pricol Thoshilalar – Appellant
Versus
Government of Tamil Nadu – Respondent
W.P. NOS.9479 & 974 OF 2015 W.P. NO. 21983 OF 2019 | M.P. NO. 2 OF 2015 & W.M.P. NO. 21224 OF 2019
For the Appellants/Petitioners: Mr. S.Kumarasamy, Mr. K.Bharathi, Mr. V.Prakash, M/s. K.Sudalaikannu
For the Respondents: Mr. P.Kumaresan, Mr. K.Surendran, Mr. K.Rajasekar
The declaration of an industry as a public utility service requires clear evidence of public emergency or interest, and must not infringe on labor rights without proper justification.
Headnote:(A) Industrial Disputes Act - Sections 2(n)(vi) and 40 - Government Orders declaring Auto Components Manufacturing Industry as a public utility service - Petitioners challenge the legality of the declaration on grounds of lack of public emergency or interest - Court finds that declaration was arbitrary and without proper application of mind, failing to meet statutory requirements - The absence of subjective satisfaction regarding public necessity undermines the validity of the orders. (Paras 25-72)
(B) Public Utility Service - Definition and criteria for declaration - The necessity for declaration must stem from public emergency or interest, not merely to prevent labor unrest - The rights of labor under the Industrial Disputes Act must be protected from arbitrary governmental actions. (Paras 10-70)
(C) Judicial Review - The court emphasizes the need for objective criteria and proper documentation to support the declaration of an industry as a public utility service - Government's subjective satisfaction must be based on concrete evidence and not merely on policy documents or industry requests. (Paras 57-70)
Facts of the case:
Petitioners, representing unions, challenge the inclusion of the Auto Components Manufacturing Industry as a public utility service, arguing it infringes on workers' rights to strike and lacks justification based on public interest.
Findings of Court:
The court concludes that the Government Orders were arbitrary and lacked necessary justification, leading to the quashing of the orders.
Issues: Whether the declaration of the Auto Components Manufacturing Industry as a public utility service was justified under the Industrial Disputes Act, considering the absence of public emergency or interest.
Ratio Decidendi: The court held that the declaration of an industry as a public utility service must be based on demonstrable public necessity, and the Government's subjective satisfaction must be grounded in objective evidence, not merely on industry requests or policy aspirations.
Result: The Government Orders declaring the Auto Components Manufacturing Industry as a public utility service are quashed.
| Table of Content |
|---|
| 1. challenge to government orders regarding public utility service. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8) |
| 2. arguments against declaration as public utility service. (Para 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23) |
| 3. court's analysis of government powers and public interest. (Para 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33 , 34 , 35 , 36 , 37 , 38 , 39 , 40 , 41 , 42 , 43 , 44 , 45 , 46 , 47 , 48 , 49 , 50 , 51 , 52 , 53 , 54 , 55 , 56 , 57 , 58 , 59 , 60 , 61 , 62 , 63 , 64 , 65 , 66 , 67 , 68 , 69 , 70) |
COMMON ORDER
The issuance of Government Order adding ‘Auto Components Manufacturing Industry’ to the First Schedule of the Industrial Disputes Act (for short ‘the Act’) and the issuance of Government Order declaring the ‘Auto Component Manufacturing Industry’ as a public utility service for a period of six months from the date of publication of notification in the Tamil Nadu Government Gazette is put in issue before this Court by the petitioners by filing the present petitions.
2. While the writ petition in W.P. Nos.9479/15 and 974/15 have sought for quashment of G.O. (Ms) No.144 dated 3.12.2014 and G.O. (Rt.) No.331 dated 3.12.2014, W.P. No.21983/19 has been filed seeking quashment of G.O. (Rt.) No.180 dated 14.6.2019 and the consequential notification of the aforesaid Government Order in the Government Gazette dated 3.7.2019.
3. It is the case of the petitioners that they are Unions functioning for the welfare of the employees in Pricol Ltd. Plant III and Plant I and that the industry is a manufacturer of automotive component like Dash Boards, Meters & Oil Pumps and that the industry has been in existence for more than 35 years. It is the further case of the petitioners that during the third week of March, 2015, it came to the knowledge of the petitioners that the 1st respondent had included the auto components manufacturing industry in the First Schedule to the Act and also declared the said industry as a public service utility by issuing G.O. (Ms) No.144, Labour & Employment dated 3.12.2014.
4. In the above backdrop, it is the further case of the petitioners that the said declaration adversely affects the employees working in the auto component manufacturing industry. It is the further averment of the petitioners that right to strike for just and reasonable causes, which is a right of the labour force, stood negated by the declaration of the auto component manufacturing industry as public utility service. Once the industry is declared as a public utility service, it is practically not possible to resort to strike, which is a weapon in the hands of the workmen to receive just and reasonable work benefits, though equally, declaration of lockout by the management also stands negatived.
5. It is the further averment of the petitioners that Section 2 (n)(v) defines public utility service as “any industries specified in the First Schedule which the appropriate government may, if satisfied that public emergency or public interest so requires, by notification in the official gazette declare to be a public utility service for the purpose of the Act for such a period as may be specified int he notification and it has been further mandated that the said period, at the first instance shall not exceed six months, but may, by a like notification, be extended from time to time, by any period not exceeding six months, at any time, if in the opinion of the appropriate Government, public emergency or public interest requires such extension”.
6. It is the further averment of the petitioners that Section 40 (1) empowers the Government to amend Schedule I if in the opinion of the appropriate Government, it is expedient in public interest to do, by notification in the official gazette add to the first schedule any industries and on such notification being issued the First Schedule shall be deemed to be amended accordingly.
7. It is the further averment of the petitioners that vide G.O. (Rt.) No.256 dated 10
