YASHWANT JAGANNATH INGAWALE Vs. SNOWCEM INDIA LTD

JUDGEMENT

(1.) THIS petition under Article 226 of the Constitution is directed against the order dated July 9, 1999 passed by the Industrial Court Bombay dismissing Complaint (ULP) Nos. 90 to 101, 111 to 113, 118 and 119 of 1998 filed by the petitioners-workmen under the provisions of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971, hereinafter referred to as the Act. The 1st respondent Snowcem India Limited is a public limited company engaged in manufacture of cement based paints and other accessories. The 1st respondent is having manufacturing units all over India including a unit at Chandivali. In Chandivali Unit of the 1st respondent around 160 workers, including the petitioners, were employed by the 1st respondent. It seems that the company wanted to expand its activities at Chandivali and therefore it sought permission of the Government of Maharashtra for necessary expansion. However, the State Government declined to give such permission and therefore the company decided to shift its factory from the existing place at Chandivali to Sinnar in Nasik District. The State Government granted permission for shifting of the factory of the 1st respondent to Sinnar on certain terms and conditions mentioned in the letter of permission dated February 2, 1995. On January 8, 1998 the 1st respondent entered into a settlement with the Bharatiya Kamgar Sangh which was then the recognised union. This settlement provided for voluntary retirement for the employees working at Chandivali Unit. Clause 13 of the said settlement which is material for the present petition reads as follows:

(2.) ON January 29, 1998 the petitioners approached the Industrial Court by filing the aforesaid complaints under Section 28 of the Act alleging unfair labour practice under Items 9 and 10 of Schedule IV of the Act and sought a declaration that the contract of employment continues to exist unless it is validly and legitimately terminated by the employer. It was the case of the petitioners before the Industrial Court that the right of Bharatiya Kamgar Sangh as recognised union to enter into any settlement with the employer cannot be disputed but such settlement arrived at under Section 18 (1) of the Industrial Disputes Act, 1947 when resulting in termination of employment or non-employment of the petitioners, will not be binding on the petitioners. The petitioners contended that such settlement is not binding on the petitioners unless the petitioners themselves were parties to the settlement. The petitioners pointed out that the 1st respondent company has stated in the settlement that it was trying to shift all its manufacturing activities from the Chandivali unit to Sinnar. In such an event the petitioners also expressed their willingness to get themselves shifted to Sinnar and therefore according to the petitioners the contract of employment is liable to continue. It was also contended that if the settlement is resulting into non-employment, which is nothing but a closure of the unit, such a settlement would violate Section 25-O of the Industrial Disputes Act.

(3.) ALONGWITH the complaints the petitioners filed an application for interim reliefs and with consent of both sides it was directed that the services of the petitioners would not be terminated without following due process of law and the petitioners would continue to receive their salary, wages and allowances payable to them. The 1st respondent company filed its written statement raising certain preliminary objections to the maintainability of the complaints. In the meanwhile the company had declared closure with effect from January 23, 1999. According to the petitioners the closure declared by the company is totally sham and illegal inasmuch as the company has continued to pay wages to some of the employees other than the petitioners. By the impugned order dated July 9, 1999 all the complaints were dismissed by the Industrial Court upholding the preliminary objections raised by the respondent company.