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IN THE HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY ORIGINAL CIVIL JURISDICTION

AND

CIVIL APPELLATE JURISDICTION

WRIT PETITION NO.1842 OF 2005(OS)

Sarva Shramik Sangh

)

A trade union registered under

)

the Trade Unions Act, 1926 having office )

at 31, Shramik, Lokmanya Tilak Vasahat,

)

Marg No.3, Dadar (East),

)

Mumbai – 400 014 & Anr.

)

..

Petitioners

Vs.

M/s. Swan Mills Ltd.

)

15, Tokersey Jivraj Road,

)

Sewree, Mumbai – 400 015 & 51 Ors.

)

..

Respondents

---

Mr.N.M. Ganguli a/w Ms. Karuna Yadav for the Petitioners.

Mr. V.P. Vaidya for the Respondent Nos.1 & 2.

--

WITH

WRIT PETITION NO.6528 OF 2003(AS)

M/s. Swan Mills Ltd.

)

15, Tokersey Jivraj Road,

)

Sewree, Mumbai – 400 015

)

..

Petitioner

Vs.

Sarva Shramik Sangh

)

31, Shramik, Lokmanya Tilak Vasahat,

)

Marg No.3, Dadar (East),

)

Mumbai – 400 014 & 51 Ors.

)

..

Respondents

---

Mr. V.P. Vaidya for the Petitioner.

Mr.N.M. Ganguli a/w Ms. Karuna Yadav for the Respondents

---

CORAM : N.M. JAMDAR, J.

DATE : 26 June 2014

JUDGMENT :

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.

Writ Petition No.6528 of 2003 is filed by M/s. Swan Mills

Limited, Mumbai. Writ Petition No.1842 of 2005 is filed by Sarva

Shramik Sangh on behalf of certain workmen of M/s.Swan Mills

Limited. Both these petitions challenge the order passed by the Industrial

Court, Mumbai dated 14 February 2003. By the impugned order, the

Industrial Court partly allowed the complaint filed by the Sarva Shramik

Sangh and directed Swan Mills Limited to pay wages to the workmen

for the period between 27 January 1989 and 5 February 1991. The Swan

Mills Limited is aggrieved by the direction of payment of wages for this

period and the Sarva Shramik Sangh is aggrieved by denial of its claim

of reinstatement with full back wages.

2.

The Sarva Shramik Sangh-Union had taken initiative in

forming the workers co-operative to run the mill’s various units in

Mumbai. The Swan Mills Limited (Swan Mills) had one unit at Kurla and

two units at Sewree. The unit at Sewree was a process house and other

unit was a composite textile mill. The material produced at both mills

was processed through the process house. The Swan Mill had a Head

Office where the various activities such as accounts, purchase, fiber

department, cotton department etc. took place. From the Head Office

Mill was being supervised.

3.

On 27 January 1987, when the concerned members of the

Union working in the Head Office had reported to their work, they were

faced with closed gates and a notice board informing that the work of

the company is closed and the workmen will be informed by general

notice when it will be resumed. Thereafter, on 5 February 1991, a

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Memorandum of Understanding (MOU) was arrived at between Swan

Mills and one Rashtriya Mill Mazdoor Sangh (RMMS). In the

Memorandum, it was recorded that the Swan Mills will operating

Spinning Units including 14 Synthetic Frames. It will also operate

Winding, Watch & Ward, Engineering and Electrical Department,

Offices, Sanitation, Hospital Dispensary, Rationing Shop and provide

employment to the employees in the Spinning Departments in Kurla unit.

All other departments of the Mill were to remain closed. It was recorded

in the memorandum that, after reopening of the mill, the employer will

pay within the period of one month from the date of receipt of

resignations, the 15 days’ average pay for each year of continuous

service, as ex-gratia payment equivalent to retrenchment compensation

and all other legal dues, including g