AMBALAL SARABHAI ENTERPRISES LIMITED Vs. KISHOR G SALUNKE

JUDGEMENT

(1.) THE petitioners, the respondents in Complaint (IT) No.12 of 2010 in Reference (IT) No. 167 of 2000 and 104 of 2004 pending before the Industrial Court, Vadodara have approached this Court under Articles 226 and 227 of the Constitution of India, challenging the interim order passed below Ex. 2 by the Industrial Tribunal on 9.7.2010 on the ground that said order is passed without jurisdiction and contrary to the provisions of law and hence, it is prayed to be quashed and set aside.

(2.) FACTS in brief leading to filing this petition deserve to be set out as under:

(3.) THE Company could not make payment to its employees from December, 2003 to July, 2004. Hence, the union was constrained to raise dispute in respect of the demands for regular wages and other ancillary issues, which culminated into consensus between the Management and workmen in form of agreement dated 25.08.2004 on eight points including making reference under Section 10 (2) of I.D.Act 1047. Accordingly vide order dated 13.04.2004 the dispute was referred to the Industrial Tribunal herein it was registered as Reference (IT) No. 104 of 2004. The said demands were pertaining to immediate payment of the wages from December, 2003 to July, 2004; payment for 14.8.2004 to 19.8.2004 be made to the employees as they were not responsible for the situation arisen at that time; the Company had closed the working from 20.8.2004 to 25.8.2004, the workmen were entitled for wages thereof to the complaints made against the workmen should be withdrawn and the payment should be made, the suspension order and inquiry should be withdrawn and in past, if any property or asset is sold, alienated by the ASE or if any adequate source of income has arisen, the Company shall pay immediately the remaining outstanding amount to the workmen. These two References were pending and in the meantime, the complaint came to be filed in both these References under Section 33-A of the Industrial Disputes Act, 1947, which came to be marked as Complaint No. 12 of 2010. The said complaint was filed on 21.5.2010 and sought interim relief against transferring of the Company's property as the grievances was voiced that surreptitiously the company was siphoning off the property and assets of the company and depriving the workmen of their legitimate rights and dues. The Industrial Court passed an order on 9.7.2010 partly allowing the interim order application modifying its earlier order and permitting the Company to mortgage property for maintaining the Company or for paying the outstanding wages but while doing so, the Company will be under an obligation to mention and accept the first charge of the workmen on such mortgage. When such money is raised in such a way, the 60% of the amount be earmarked and spent on paying the remaining wages to the workmen and only 40% of the amount be spent towards managing the company for other affairs and creditors. The Company would be under an obligation to give details of such funds and it will not be in a position to sale its assets without prior permission of the Industrial Court. This order is assailed in this petition under Articles 226 and 227 of the Constitution of India.