KAVERI ENGINEERING INDUSTRIES, LTD., TIRUCHIRAPALLI (BY CHAIRMAN) Vs. JOINT COMMISSIONER OF LABOUR AND ARBITRATOR

JUDGEMENT

(1.) The writ petition is for certiorari to quash proceedings of the Arbitrator (the first respondent) in A3/107998/80 under S. 10A of the Industrial Disputes Act, 1947 (hereinafter called the Act), dated 29 March 1982. The facts leading to the writ petition are shortly as under.

(2.) The petitioner-company is a public limited company registered under the Indian Companies Act, 1956, having its registered office at V. D. S. House, No. 26, Cathedral Road, Madras It is engaged in the manufacture of chemical process equipment such as pressure vessels, hat exchangers and containers in their factory situate at Golden Rock Municipality, Tiruchi. A settlement under S. 12(3) of the Act was entered into between the second respondent-union and the petitioner-management on 20 July 1978. Later on that resulted in an award in Industrial Dispute No. 64 of 1975, dated 10 Oct. 1978, on the file of the Industrial Tribunal, Madras. This settlement was to be in force for a period of three years, up to 19 July 1981. The result of that was that the second respondent-union was prohibited from raising any demand involving financial commitments on the management. Notwithstanding this position, the second respondent-union raised a charter of demands by letters, dated 12 Jan., 11 May and 13 July 1979. During the conciliation proceedings it was contended on behalf of the management that in view of the settlement above stated, the second respondent-union was precluded from raising any demand with regard to 31 demands which were tried to be conciliated upon. In the meanwhile, those 31 demands were taken up for conciliation by the Deputy Commissioner of Labour, Tiruchi. He filed his report. On his report the Government of Tamil Nadu passed G. O. Misc. 2038, dated 11 Dec. 1979, in and by which the Government accepted the stand of the management with regard to 23 of the demands and thought fit to refer to adjudication only two issuesone relating to increase in wages based on grades and night shift allowance and the other bonus. The second respondent, however, decided to go on strike from 29 Aug. 1979, following its notice dated, 13 Aug. 1979 This strike continued till 25 Feb. 1980. In view of this prolonged strike the petitioner decided on a closure of the undertaking and notified on 31 Aug. 1979, to the Government of Tamil Nadu under S. 25FFA of the Act that from 1 Nov. 1979, the closure would take place. However, the closure was deferred to 1 Feb. 1980. The prolonged strike and the labour unrest led to a serious loss. The order book position which was of the order of over Rs. 600 lakhs before commencement of strike on 29 Aug. 1979, cams down to mere Rs. 92 lakhs in Dec. 1980. Therefore, the three shift operation was reduced to a two shift basis, thereby rendering quite a number of employ es surplus. By intervention of the Joint Commissioner of Labour on 21 Feb. 1980, a settlement was arrived at. The strike was agreed to be called off from 25 Feb. 1980, besides dealing with consideration of re-entertainment of the apprentices whose apprenticeship which ended during the period of strike had not been extended In view of the plight in which the petitioner was placid it found the structural fabrication was totally uneconomical and, therefore, decided to rationalise their manufacturing line. Asa result, the production pattern had to be rationalised. Therefore, by notice on and from 4 March 1980, the management laid off certain workmen. Though initially it was thought that the workmen could be taken back, later on it was found that it was not possible. Therefore, the petitioner by its application, dated 31 March 1980, under S. 25N of the Act read with rule 61 (A) (1) of the Tamil Nadu industrial Disputes Rules, 1958 (hereinafter called the rules), sought the permission of the Government to retrench 457 workmen, the Commissioner of Labour in view of the decision of this Court striking down S. 25V of the Act as ultra vires dismissed the sail petitioner as having become infructuous, Thereupon, by notice, dated 19 May 1980, in Form R under S. 25F of the Act. the petitioner intimated the retrenchment of 245 workmen as against 457 contemplated earlier. Accordingly, it retrenched 245 workmen with the payment o; one month's wages in lieu of notice and retrench meat compensation. Though some of the retrenched workmen were seniors to some of the workmen retained, the retrenchment of these workmen had to be done since the other workmen retained were ether versatile and multicraftists and ambivalent or at any rate technically more competent. The workmen staged a tool down strike on 22 March 1980. Though a conciliation was attempted, inasmuch as physical assault was indulged the petitioner-management derecognised the union by its letter, dated 14 June 1980. The Collector of Tiruchi intervened. After discussion the Collector passed proceedings, dated 10 Aug. 1080. where under it was decided the Commissioner of Labour would snare the services of the Joint Commissioner of Labour, Madras, to arbitrate on the issue of non-employment consequent on the retrenchment and that it will be an informal arbitration. The basis for such an arbitration would be the settlement under S. 12 (3) of the Act or S. 18 (1) of the Act. It was indicated therein that out of the 245 workmen those who had not accented retrenchment will be paid three instalments of ad hoc amount equivalent to 60 per cent of their monthly emoluments for six months subject to the ceiling equivalent to retrenchment compensation. This was to be adjusted on the basis of the arbitrator's decision. The payments were accordingly made and accepted.

(3.) Further discussions took place before the Joint Commissioner of Labour. Madras, on 3 Sept. 1980. A settlement under S. 12 (3) of the Act was entered into where-under the issues as framed thereunder were referred for arbitration under S. 10 of the Act as contemplated in rule 26 of the rules. An arbitration agreement, dated 21 Nov. 1980, conforming to Form D was delivered to the Secretary to the Government. The Government by G O. M. No. 2755, dated 8 Dec. 1980. under S. 13A(3) of the Act published the arbitration agreement in the Tamil Nadu Gazette.