2023 Supreme(Online)(MP) 2992
IN THE HIGH COURT OF MADHYA PRADESH AT INDORE BEFORE HON'BLE SHRI JUSTICE VIJAY KUMAR SHUKLA &
HON'BLE SHRI JUSTICE ANIL VERMA ON THE 28th OF APRIL, 2023 WRIT APPEAL No. 1102 of 2021 BETWEEN:- AVTEC LIMITED THROUGH ITS AUTHORIZED SIGNATORY, SECTOR III, PITHAMPUR, DISRICT DHAR (MADHYA PRADESH)
.....APPELLANT (BY SHRI J.P.CAMA - SENIOR ADVOCATE WITH MS.KIRTI PATWARDHAN - ADVOCATE )
AND
1. THE STATE OF MADHYA PRADESH THROUGH:PRINCIPAL SECRETARY, LABOUR DEPARTMENT, VALLABH BHAWAN, BHOPAL (MADHYA PRADESH)
2. STATE OF MADHYA PRADESH, THROUGH:
LABOUR COMMISSIONER, MOTI BUNGLOW, INDORE (MADHYA PRADESH)
3. AVTEC AND HINDUSTAN MOTROS SHRAMIK SANGH, B/M 150, HOUSING BOARD COLONY. PITHAMPUR, DISTT.
DHAR (MADHYA PRADESH)
4. SHRI VISHAL VAIRAGHAR S/O LATE SHRI VISHNUPANT, 181, SAHAKAR NAGAR. CAT SQUARE, INDORE (MADHYA PRADESH)
.....RESPONDENTS (SHRI UMESH GAJANKUSH – ADDL. ADVOCATE GENERAL FOR RESPONDENT NO.1 AND 2 AND SHRI BRIAN D’ SILVA – SENIOR ADVOCATE WITH SHRI SHASHANK SHARMA – ADVOCATE FOR RESPONDENT NO.3 AND 4 )
Reserved on : 25.04.2023 Pronounced on : 28.04.2023 This appeal having been heard and reserved for judgment, coming on for pronouncement this day, JUSTICE VIJAY KUMAR SHUKLA passed the following:
Ajay Lonkar,Advocate General
ORDER
The present Writ Appeal is filed under Section 2(2) of Madhya Pradesh Uchcha Nyayalaya Khandpeeth Ko Appeal Adhiniyam 2005 being aggrieved by the order dated 21.10.2021 passed in WP No.5344/2020 by which the writ petition filed by the respondent No.3 and 4 has been allowed and the order dated 17.2.2020 rejecting reference application u/S.25-N(6) has been set aside and the respondent No.2 has been directed to refer the dispute to the Tribunal for adjudication.
2. Facts of the case are that the appellant AVTEC Limited submitted an application on 25.10.2019 u/S.25-N of the Industrial Disputes Act, 1947 (hereinafter referred as “Act”) seeking permission for retrenchment of workmen from its Pithampur plant. The notices were issued by the Labour Commissioner and on an objection raised by the Union/Workmen, the said application was rejected for want of procedure and liberty was granted to the appellant to file fresh application u/S.25-N of the Act. The respondent No.3 Union moved an application for reference on the said order whereby the appellant was permitted to file fresh application. Since the application filed by the appellant was not rejected and, therefore, no reference could have been made to industrial court. The reference is permissible against an order granting or refusing to grant permission for retrenchment, however, Union challenged the order dated 19.12.2019 in WP No.247/2020 before this Court and since the permission for retrenchment was already granted during the pendency of the petition the said petition was dismissed having been rendered infructuous by order dated 7.2.2020. According to the appellant, the plant was facing financial problem and was struggling for its existence and, therefore, the application for permission for retrenchment was filed u/S.25-N of the Act. It was also stated that appellant faced dire financial conditions and accumulated loss of Rs.141.19 crores in the last six financial years between 2013-2014 to 2018-2019 and, therefore, sought permission for retrenchment of 217 workmen out of 356 workmen. The authority specified in the Act vide its order dated 3.2.2020 passed an order granting permission to appellant to retrench 217 workmen as had been applied for. After passing the order dated 3.2.2020 the respondent Union and the workmen had submitted an application seeking reference to the industrial tribunal and few workmen submitted application seeking review of the order as per the provisions of Sec.25-N(6) of the Act. Specified authority by order dated 14.2.2020 rejected the application submitted by three workmen and decided not to review the order on the application and also rejected the application for reference filed by respondent No.3 and 4 on the ground that since the application for review has already been refused and, therefore, the prayer for reference at the instance of the respondent No.3 and 4 cannot be decided as per the provisions of Sec.25-N(6) and the law laid down by the division bench of this court in WP No.1368/1997 Ujjain Mill Mazdoor Sangh and others Vs. State of MP (1999) 1 LLJ 1197 (MP) wherein it has been held that in Sec.25-N(6) it is not mandatory for the authority to refer the case to the tribunal. This is voluntary provision and since by speaking order the prayer for review has already been rejected filed by three employees, the application for reference filed by the respondents No.3 and 4 was rejected. It was further held that there is no propriety or legal basis for the trial on the same point as the detailed speaking order has been passed as per the provisions of Sec.25-N(3) of the Act. Being aggrieved by the said order, the respondent No.3 and 4 filed a Writ petition No.5344/2020 and challenged the order and sought relief of quashment of orders Annexure P/5 and P/8 by which the reference was declined and sought a direction to the respondent No.2 to refer the matter for adjudication to the industrial tribunal.
3. Senior Counsel for the appellant submitted tha