POTTERY MAZDOOR PANCHAYAT Vs. PERFECT POTTERY COMPANY LIMITED

JUDGEMENT

(1.) The respondent, M/s. Perfect Pottey Co. Ltd. was engaged in the manufacture of stoneware pipes and other refractory material at its factory known as Perfect Pottery Works, where it employed about 900 workmen. For the purposes of its factory, respondent had taken a lease of Poly Pather Clay Mines, wherein about 81 workmen were employed. On April 24, 1967 respondent issued a notice of closure of the factory and the Mines stating, that the management had decided to close down the business on account of financial difficulties and other reasons.

(2.) Consequent upon the notice of closure, the appellant herein, the Pottery Mazdoor Panchayat, applied for initiation of conciliation proceedings to the Deputy Labour Commissioner, Madhya Pradesh and to the Regional Labour Commissioner (C), Jabalpur. The reason for initiation of two different conciliation proceedings was that Perfect Pottery Works was an industry to which the Madhya Pradesh Industrial Relations Act, 1960, applied, whereas poly pather Clay Mines was an industry governed by the Industrial Disputes Act, 1947. We will refer to these two Acts as 'the State Act' and 'the Central act' respectively.

(3.) Conciliation proceedings having failed, the Madhya Pradesh State Government, on June 26, 1960, referred an industrial dispute to the arbitration of the Industrial Court under Section 51 of the State act. The main questions referred to the Industrial Court were: Whether the proposed closure by the management of the perfect Pottery Co. Ltd,. Jabalpur, of their pottery factory at Jabalpur, with effect from July 1, 1967, is proper and justified and To what retrenchment compensation are the employees entitled, if it is decided that the proposed closure is proper and justified