WORKMEN Vs. SOMAIYA ORGANICS INDIA LIMITED

JUDGEMENT

(1.) He respondent-company M/s Somaiya Organics (India) Ltd. runs two Units, a Heavy Chemical factory at Barabankey and a Distillery at Captainganj. At the relevant time, the distillery unit employed about 175 workmen (out of them according to the learned counsel for the appellants, only 125 were regular workmen) and the chemical factory employed 251 workmen. There is no dispute that there is one balance sheet for both the units though their profit and loss accounts are separate. There is also no dispute that the distillery unit at the relevant time produced between 50,000. 00 and 55,000. 00 Ltrs of rectified spirit daily and the entire product was transferred to the chemical factory to be used there as raw material for production of Acetic 5 Acid and Ethyl Acetate.

(2.) It appears that the respondent-company, while it was running the distillery unit, had in 1971 purchased the chemical factory in question which was then run in the name of Shankar Distillery and Chemical Works. In the year 1968, the Heavy Chemical and Fertilizer Industrieswage Board had given an award fixing the wages in the Heavy chemical industry. After taking over the chemical factory, the respondent-company on 28/07/1973 entered into a settlement with the workmen of the said factory on the basis of that award. There is no dispute further that some more settlements were entered into with the said workmen on the same basis from time to time.

(3.) It appears that there was a tripartite settlement in respect of the workmen of the distilleries in the area which was notified on 8/01/1974. It was valid for three years from that date and covered about 35 distilleries in the region.