SARVA SHRAMIK SANGH Vs. SWAN MILLS LTD

JUDGEMENT

(1.) Writ Petition No. 6528 of 2003 is filed by M/s. Swan Mills Limited, Mumbai. Writ Petition No. 1842 of 2005 is filed by Sarva Shramik Sangh on behalf of certain workmen of M/s.Swan Mills Limited. Both these petitions challenge the order passed by the Industrial Court, Mumbai dated 14 February 2003. By the impugned order, the Industrial Court partly allowed the complaint filed by the Sarva Shramik Sangh and directed Swan Mills Limited to pay wages to the workmen for the period between 27 January 1989 and 5 February 1991. The Swan Mills Limited is aggrieved by the direction of payment of wages for this period and the Sarva Shramik Sangh is aggrieved by denial of its claim of reinstatement with full back wages.

(2.) The Sarva Shramik Sangh-Union had taken initiative in forming the workers cooperative to run the mill's various units in Mumbai. The Swan Mills Limited (Swan Mills) had one unit at Kurla and two units at Sewree. The unit at Sewree was a process house and other unit was a composite textile mill. The material produced at both mills was processed through the process house. The Swan Mill had a Head Office where the various activities such as accounts, purchase, fiber department, cotton department etc. took place. From the Head Office Mill was being supervised.

(3.) On 27 January 1987, when the concerned members of the Union working in the Head Office had reported to their work, they were faced with closed gates and a notice board informing that the work of the company is closed and the workmen will be informed by general notice when it will be resumed. Thereafter, on 5 February 1991, a Memorandum of Understanding (MOU) was arrived at between Swan Mills and one Rashtriya Mill Mazdoor Sangh (RMMS). In the Memorandum, it was recorded that the Swan Mills will operating Spinning Units including 14 Synthetic Frames. It will also operate Winding, Watch & Ward, Engineering and Electrical Department, Offices, Sanitation, Hospital Dispensary, Rationing Shop and provide employment to the employees in the Spinning Departments in Kurla unit. All other departments of the Mill were to remain closed. It was recorded in the memorandum that, after reopening of the mill, the employer will pay within the period of one month from the date of receipt of resignations, the 15 days' average pay for each year of continuous service, as ex-gratia payment equivalent to retrenchment compensation and all other legal dues, including gratuity under the Payment of Gratuity Act, bonus, earned wages, leave with wages etc.; to those employees whose services were not required. There were various other clauses in the Memorandum. It was recorded that a suitable agreement under the Bombay Industrial Relations Act would be drawn later. At that time, the Mill was owned by one J.P. Goenka group. One Shri Navin C. Dave, an industrialist, Mumbai was also signatory to the Memorandum, styling himself as the new promoter.