2007(3) Supreme 1050
SUPREME COURT OF INDIA
(From Bombay High Court)
Dr. Arijit Pasayat and Lokeshwar Singh Panta, JJ.
Tulip Star Hotels and Ors. — Appellants
versus
Union of Centaur-Tulip Employees & Ors. — Respondents
Civil Appeal No. 2431 of 2007
(Arising out of S.L.P. (C) No. 6787 of 2006)
Decided on 10-5-2007
Counsel for the Parties :
For the Appellants : J.P. Cama, Sr. Advocate, Rituraj Biswas, Rahiv Moolchandani and Gopal Singh, Advocates.
For the Respondents : Colin Golsalves and Shyam Divan, Sr. Advocates., Ms. Anubha Rastogi, Ms. Jyoti Mendiratta, Parimal K. Shroff, Mrs. Inklee Barooah, Mrs. Shweta Verma, Ms. Radhika, Ms. Bina Gupta and Himanshu Munshi, Advocates.
Held : We find that on the question of existence of relationship between the employer and the employee in the background of the Trade Union Act several decisions have been rendered (See Vividh Kamgar Sabha v. Kalyani Steels Ltd. and Anr. (2001 (2) SCC 381), Cipla Ltd. v. Maharashtra General, Kamgar Union and Ors. (2001 (3) SCC 101) and Sarva Shramik Sangh v. Indian Smelting & Refining Co. Ltd. and Ors. (2003 (10) SCC 455). (Para 8)
Though the plea appears to have been specifically urged before the Industrial Court and the High Court, no finding has been recorded on the basic issue. It is also necessary to take note of what has been stated by this Court in Vice-Chairman and Managing Director, A.P. SIDC Ltd. and Anr. v. R. Varaprasad and Ors. (2003 (11) SCC 572). In that case it was held that delayed payment per se did not render the scheme to be frustrated, on the contrary, the entitlement is of monthly wages. The decision in General Labour Union (Red Flag), Bombay v. Ahmedabad Mfg. & Calico Printing Co. Ltd. and Ors. (1995 Supp (1) SCC 175) also throws considerable light on the controversy. (Para 9)
Since the relevant aspects have not been considered by the Industrial Court and the High Court, we set aside the impugned orders of the Industrial Court and the learned Single Judge and the Division Bench and direct re-consideration, by learned Single Judge, of the issues, as noted above. Consideration shall be of applicability of the three judgments in Vividh Kamgar, Cipla and Sarva Shramik cases (supra). The effect of part acceptance shall be considered as also the question as to when there has been adjustment of the sums payable in respect of the VRS. (Para 14)
`JUDGMENT
Dr. Arijit Pasayat, J. — Leave granted.
2. Challenge in this appeal is to the order passed by a Division Bench of the Bombay High Court dismissing the Letters Patent Appeal filed by the appellants.
3. Factual background as presented by the appellants is as follows:
An agreement was entered into between the appellants and the Hotel Corporation of India relating to purchase of hotel called Centaur Hotel, Juhu Beach, on 31.3.2003. On 11.3.2002, an agreement was entered into wherein it was stipulated that Voluntary Retirement Scheme (in short ‘VRS’) shall be introduced within one year from the transfer dated 31.5.2002 i.e by 31.5.2003. A Writ Petition was filed on 30.5.2003 with a prayer to enforce the VRS and alternatively it was prayed that the appellant-company be directed to independently float and pay according to VRS. By order dated 8.7.2003, the High Court directed the appellant-company to consider and float the VRS. The said scheme was floated on 1.10.2003. On 27.10.2003 there was a meeting of the recognized Union functionaries with the functionaries of the appellant-company. A request was made to extend the time of VRS upto 30.11.2003 to accept the option. This was confirmed by the Union’s Advocate letter dated 29.10.2003. On 29.1.2004, applications of 570 workers for VRS were accepted and payment was to be made by 29.4.2004. The terms were set out in Clause 3.3. On 1.7.2004 notice of motion was taken by officers of the appellant-company and on 2.7.2004 by the workers. The prayer essentially was to do the needful within such time as may be determined by the Court. In the counter affidavit, the resolutions were referred to. One Sada Parab represented the Union of workers. The modalities for implementation of the VRS were fixed for both the officers and the workers. The schedule for payments was also fixed. Subsequently, there appears to be change of mind and after acceptance, because of financial difficulties there was delay in implementation of the VRS. Majority of the workers accepted the cheques without demur. Some of the employees formed a new trade union called “Union of Centaur Tulip Employees”. A request was made by the employees for splitting in each case the cheque amount i.e. VRS amount and on 5.5.2005 the writ petition was withdrawn. Separate cheques were issued but the respondents refused to accept the cheques so far as they related to the VRS scheme. The loan amounts were adjusted and no objection was raised.
4. Complaint was filed under the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (in short the ‘Trade Union Act’). Objection was filed by the present appellant taking the stand that in view of various decisions of this Court complaint was not maintainable. The Industrial Court rejected the objection and held that the complaint was maintainable.
5. Writ petition was filed by the appellant and the learned Single Judge dismissed the same. As noted above, the Division Bench also affirmed the views of the Industrial Court and the learned Single Judge.
6. In support of the appeal, learned counsel for the appellants submitted that unfortunately both the Industrial Court and the High Court did not consider the effect of several judgments of this Court which had direct bearing on the present issue. Before a learned Single Judge, a plea was specifically urged but not dealt with. After having concluded that the relationship of employer and employee existed learned Single Judge observed that whether relationship of employer and employee existed was kept open and the parties are at liberty to advance evidence if any on that point. The High Court also did not consider those aspects. It is, therefore, submitted that the impugned orders are liable to be set aside.
7. Per contra, learned counsel for the respondents submitted that by now the whole enquiry would have been over and unnecessarily the appellants have prolonged the proceedings.
8. We find that on the question
Bank of India and Ors. v. K.V. Vivek Ayer and Anr.
Vice-Chairman and Managing Director, A.P. SIDC Ltd. and Anr. v. R. Varaprasad and Ors.
Vividh Kamgar Sabha v. Kalyani Steels Ltd. and Anr.
Cipla Ltd. v. Maharashtra General, Kamgar Union and Ors.
Sarva Shramik Sangh v. Indian Smelting & Refining Co. Ltd. and Ors.
General Labour Union (Reg Flage), Bombay v. Ahmedabad Mfg. & Calico Printing Co. Ltd. and Ors.
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