VIP INDUSTRIES LIMITED Vs. MAHARASHTRA KAMGAR KARMACHARI SANGHATANA

JUDGEMENT

(1.) by consent of Counsel returnable forthwith. Counsel appearing on behalf of the Respondents waive service. By consent of Counsel and at their request taken up for hearing and final disposal.

(2.) The Challenge in these proceedings is to an order dated 14th February 2008 of the Industrial Court at Satara by which, pending the hearing and final disposal of a complaint of Unfair Labour Practices, the Petitioner was restrained from giving effect to an order dated 28th January 2008 by which the employees of the factory at Satara were transferred to the factory at Sinnar. The Petitioner conducts a factory at Satara which is engaged in the business of manufacturing luggage and about 171 employees have been employed at the unit. In April 2007, a scheme of arrangement was formulated under Section 391 to 394 of the Companies Act, 1956 by and as a result of which the industrial unit belonging to a company by the name of Artistocrat Luggage Limited came to be transferred to and vested in the Petitioner. By an order of the learned Company Judge of 14th December 2007, sanction was granted to the scheme of amalgamation and arrangement. On 19th December 2007, a notice was put up by the Petitioner intimating that in view of worsening business conditions, the Petitioner had decided to "presently stop" the manufacturing activities at Satara until a re-organization of manufacturing activities took place. The employees were directed that they were not required to report but they would be paid full wages and other benefits. On 28th January 2008, a communication was addressed to the Respondent Union by which it was stated that the plant at Satara had been rendered unviable. Consequently, the Petitioner transferred all the workers of the plant at Satara to the plant at Sinnar. This was followed by a further notice dated 25th January 2008 under which the Petitioner agreed to pay to the employees who were transferred a 10% rise of existing wages, two days special leave per month within a span of three months and an additional amount of Rs.1,000/- for house rent allowance for a period of three months.

(3.) A complaint of unfair labour practice was instituted by the Union, the Respondent to these proceedings under Items 3,9 and 10 of Schedule IV of the M.R.T.U. and P.U.L.P. Act, 1971. The Industrial Court by an interim order dated 14th February 2008 stayed the operation of the order of transfer holding that :