Salleh Abas FJ:

[1] This Originating Motion is an application by Hotel Jaya Puri Bhd (in this judgment referred to as "the Hotel") for an order of certiorari to quash an award made against it on 1 August 1978, by the President of the Industrial Court ordering the Hotel to pay compensation of two months salaries plus fixed allowances in favour of workmen employed in the business of Jaya Puri Chinese Garden Restaurant Sdn Bhd (referred to as "the Restaurant").

[2] The Hotel is a company incorporated on 16 November 1973, and the Restaurant is also a company incorporated on 31 July 1974, and is a fully owned subsidiary of the Hotel. There were 56 workers of various categories employed in the business of the Restaurant. These workers are members of a trade union known as the National Union of Hotel, Bar and Restaurant Workers (referred to as "the Union") which was accorded recognition both by the Hotel and the Restaurant on 12 July 1975 and 3 July 1975, respectively. Subsequently, the Union signed two separate three year Collective Agreements with the Hotel on 30 October 1975 and with the Restaurant on 1 February 1976. The Collective Agreements were duly recognized by the Industrial Court in accordance with s 16 of the Industrial Relations Act 1967, and as such became binding on the parties thereto by virtue of s 17. The business of the Restaurant was carried on at the Hotel's premises which was rented to the Restaurant. The Restaurant commenced business on 30 July 1974 but due to financial losses closed the business on 31 August 1976. Thereafter, the premises was leased by the Hotel to Rodgewood Enterprises Sdn Bhd on 15 September 1976 for a three year term at an annual rental of RM360,000. Rodgewood Enterprises Sdn Bhd use the premises to run a restaurant business under the name of Arc En Ciel. This Company is not in the group of the Hotel and the Restaurant. It is entirely separate.

[3] Following the closure of business by the Restaurant, a dispute arose between the Union and the Restaurant on account of the closure and the termination of service of 56 employees. This dispute was referred by the Minister of Labour to the Industrial Court for its decision on 7 September 1976 and the reference described the dispute as between the Union and the Restaurant "mengenai penutupan syarikat dan penamatan perkhidmatan pekerja seramai 56 orang." The reference was subsequently registered in the Industrial Court as Case No 166/76.