MANAGEMENT,A .2295, MADURAI CO-OP.PRINTING WORKS LTD Vs. CONTROLLING AUTHORITY UNDER PAYMENT OF GRATUITY ACT

JUDGEMENT

(1.) In W.P. (MD) No. 9241 of 2004, the petitioner is a trade union seeking to challenge a notice issued under Section 9-A of the Industrial Disputes Act, dated 28.08.2003 issued by the second respondent co-operative society. In the notice issued under Section 9-A, it was informed that the settlement under Section 12(3) entered into by the then board of directors without prior permission dated 17.08.1999 cannot be implemented in view of the illegality in entering into the settlement and that the society was recurring heavy losses during the relevant period. Already steps were taken by the Provident Fund Department through distraint proceedings. Dues are to be paid to the ESIC also. Therefore, since the settlement was signed without prior permission and it was terminated with effect from 31.08.2003. The workers were informed that the amounts will be paid with effect from 01.09.2003 only as per earlier settlement dated 15.05.1992.

(2.) The petitioner union filed a writ petition before the Principal Bench stating that the settlement under Section 12(3) cannot be revoked by a notice under Section 9-A and such an action taken by the society was illegal. Reliance was also placed upon the judgment of the Supreme Court in Life Insurance Corporation of India Vs. D.J.Bahadur, 1981 1 LLJ 1. Further, reliance was also placed upon the judgment of the Division Bench of this Court in Thiruchirappali Hirudayapuram Co-operative Bank Employees Union Etc. Vs. Joint Registrar of Co-operative Societies, Thiruchirapalli, 1992 1 LLJ 747.

(3.) That writ petition was admitted on 06.04.2004. Pending the writ petition, this Court granted an interim stay. Despite notice, no steps were taken to get the stay vacated or disposal of the main writ petition.