RUSHABHA PRECISION BEARINGS LTD Vs. MILL MAZDOOR SABHA

JUDGEMENT

(1.) This is a writ petition preferred under Articles 226 & 227 of the Constitution of India by Messrs. Rushabh Precision Bearings Limited [hereinafter referred to as, "the Company"]; a Company incorporated under the Companies Act and an industry within the meaning of Section 2[j] of the Industrial Disputes Act, 1947, against the judgment and award dated 30th August, 2002 passed by the Industrial Tribunal, Rajkot in Reference [IT] No. 46 of 2002, and the Order dated 15th March, 2003 passed by the Labour Court, Surendranagar in Recovery Application No. 146 of 2002 and the consequent Recovery Certificate dated 7th April, 2003 issued by the Labour Court, Surendranagar in the sum of Rs. 4,93,26,260/

(2.) The respondent no.1-Mill Mazdoor Sabha [hereinafter referred to as, "the Union"] is a Labour Union representing the 323 workmen employed by the Company and two other industries viz., M/s. SRS Bearing Industries and M/s. SRS Engineering Industries.

(3.) Mr. Nanavati has submitted that the impugned judgment and award passed by the Industrial Tribunal, Rajkot is nullity in as much as the Tribunal has answered the matters which were not referred to the Tribunal against the industries which were not party before the Tribunal. He has submitted that there were certain disputes between the Company and its workmen. According to the Company, the workmen had illegally struck off the work. According to the workmen, the Company had illegally locked out. An industrial dispute was raised in that regard and the reference came to be made to the Industrial Tribunal, Rajkot. The Reference was whether the closure declared by the Company was legal and whether the workmen were entitled to wages till they were reinstated in service. The workmen who were party to the Reference were not only the employees of the Company but were also the employees of one M/s. SRS Bearing Industries & SRS Engineering Industries [hereinafter cumulatively referred to as, "the firms"]. The Reference was contested by the Company. The Company raised a specific defense that the Company and the firms were separate and distinct legal entities. The Company cannot have any liability in respect of the workmen employed by the firms - one a proprietory firm and another a body corporate. Nevertheless, the Reference came to be decided against the Company. The learned Tribunal specifically held that the Company was the main industry and Messrs. SRS Bearing Industries and Messrs. SRS Engineering Industries were part of the Company. All the three a the Company and the firms had singular existence. The closure declared by the Company was in contravention of Section 25 [o] of the Industrial Disputes Act, 1947 [hereinafter referred to as, "the Act"] and was illegal. Consequently, the Tribunal directed the Company to reinstate all the workmen in service and to pay backwages. It appears that the impugned order was not challenged by the Company. Consequently, the impugned Recovery Certificate dated 15th March, 2003 came to be issued on the recovery application made in respect of 323 workmen of the Company and the firms.