EID PARRY INDIA LIMITED Vs. LABOUR COURT GUNTUR

JUDGEMENT

(1.) The employer M/s. E. I. D. Parry (India) Ltd., is the petitioner in this writ petition. The petitioner, hereinafter referred to as "Parry Company", prays for a writ of Certiorari to call for the records from the 1st respondents in I.D. Nos. 12 of 1986 and 34 of 1986 and quash the common award dated March 25, 1987.

(2.) Respondents 2 to 4 were the employees of Parry Company. It seems a settlement was entered into between Parry Company and the Parry's Staff and Labour Union, hereinafter referred to as "the Union", under Section 18 of the Industrial Disputes Act on June 17, 1978. That award, inter alia, provided that the strength of the staff of the Company might be fixed at 265 and that 24 causal workmen be made permanent as "Pool workmen". After the expiry of the period of that settlement a fresh settlement was entered into between the Parry Company and the Union on July 24, 1982 under Section 18 of the Industrial Disputes Act under which it was agreed that not less than 100 workmen would opt to leave the service under "separation compensation plan" and that the vacancies caused thereby should not be filled up. The validity of that award was the subject matter of I.D. No. 8 of 1983. On April 16, 1983 the Industrial Tribunal passed an award holding that the settlement was not justified, the correctness of which was challenged by the Parry Company in W.P. No. 16027 of 1984. During the pendency of the writ petition a fresh settlement was entered into between the parties pursuant to which it was agreed that the strength of the man-power would be assessed and determined based on the requirement of the Company from time to time and that in the first instance the strength would be reduced by 60 under voluntary retirement scheme. It was also provided that if the number of workmen who opted under that scheme fell short of 60, the company would be entitled to retrench the employees to make up the proposed reduction in the staff by 60. The draft of this award, it is stated, was approved by the Executive Committee of the Union on March 14, 1985. On the March, 1985 it is stated to have been approved in the General Body Meeting and on March 28, 1985 the settlement was signed by the representatives of the Parry Company and the office-bearers of the Union. Under the said settlement respondents 2, 3 and 4 received Rs. 2,500/- each. The said settlement was also filed in Writ Petition No. 16027 of 1984 for replacing the award dated June 17, 1978 which was the subject matter of the writ petition. 57 workmen opted under the voluntary retirement scheme under the above settlement dated March 28, 1985. The Parry Company retrenched respondents 2, 3 and 4 offering three months wages in lieu of notice and retrenchment compensation at the rate of 15 days average pay for every completed year of service or part thereof, on July 29, 1985. However respondents 2 to 4 refused to receive the letter of retrenchment; but the cheques for the amount and the orders of retrenchment were sent by registered post with acknowledgment due. The said respondents raised a dispute before the Conciliation Officer with regard to their retrenchment which was eventually referred to the Labour Court, Guntur, by the State Government. The dispute relating to the retrenchment of 2nd respondent was numbered as I.D. 34 of 1986 and the dispute relating to the retrenchment of respondents 3 and 4 was numbered as I.D. 12 of 1986.

(3.) Both sides adduced oral and documentary evidence before the 1st respondent. By a common award dated March 25, 1987 the 1st respondent held that respondents 2 to 4 (the workmen in the said industrial disputes) were entitled to be reinstated with back wages, continuity of service and all other attendant benefits.