CHITTOR SUGARS VRS (SSNP) Vs. STATE OF KERALA

JUDGEMENT

(1.) An association of the employees, along with 3 workers, who voluntarily retired under the voluntary retirement Scheme from Co-operative Sugars Ltd., Chittoor, consequent to the closure of the mill, have filed this Writ Petition seeking directions for payment of 50% of the wages for the period from 2002 to 2005, when the company was not functioning. .

(2.) The Co-opertive Sugars Ltd., No.4322, Menonpara, Chittoor, Palakkad, was a Society constituted under the Multi State Co-operative Societies Act and working under the Industries Department as a State level Public Enterprise. The Society was established for the welfare of those engaged in sugar manufacturing out of sugarcane. It had a manufacturing unit and a distillery unit. The petitioners submit that there were seasonal employees, who were required to work only in the season of sugarcane crushing. On account of the arrack ban implemented by the Government in the year 1996, the distillery unit stopped functioning and the income of the sugar company was not sufficient to run the unit. It became a sick unit and the company sought permission to lay off 225 workmen for a period of six months, filing application under Section 25 M of Industries Dispute Act, 1947. However, the permission sought was refused in the year 2003 as per Ext.P1 order. The only income that could be procured was by growing sugarcane in and around the sugar factory. The society was unable to pay wages to the workers and they continued without work and wages on account of which several of the employees left the company. The petitioners submit that Ext.P1 order refusing permission for lay off was issued seeing that a revival package for VRS was under consideration of the management and 200 workers had already applied for VRS. It was found that the management had already laid off 168 workmen. It was found that financial difficulties by themselves cannot be a reason for granting permission for lay off. In Ext.P1 order, the trade union had opposed the application pointing out that the unit had become loss making from 1996 onwards. They demanded to hand over the unit to Kerala State Beverages Corporation or to allow the company to sell liquor.

(3.) As per Ext.P2 order dated 06.11.2004, the Government on the basis of decisions taken in a high level meeting convened by the Minister for Industries on 24.8.2004 ordered that a Voluntary Retirement Scheme would be floated for those employees, who are willing for the same in Chittoor Co-op. Sugars Ltd. (CHICOPS). The Minister for Finance and Excise was entrusted to take a decision as to whether the Beverages Corporation can take over the sugar factories at Chittoor and Thiruvalla after getting a study report through an agency.