FOREST ORGANIZATION Vs. LABOUR COMMISSIONER

JUDGEMENT

(1.) THE Forest Organisation, Proprietors-Orient paper and Industries Limited and another, have approached this Court with a prayer to quash the order dated May 16, 2000 (Annexure-2) passed by the Labour commissioner, Orissa (opposite party No. 1)refusing permission to them for laying off sixty-seven workmen out of total ninety-five, employed in their aforesaid establishment, with a further prayer to allow the application dated march 27, 2000 (Annexure- 1) and to grant the consequential reliefs.

(2.) THE Orient Paper and Industries Limited (hereinafter referred to as 'the company') owns two paper mills, one at Brajarajnagar in Orissa, and another at Amlai in the State of Madhya pradesh besides having other factories at different places. The paper mill at Brajarajnagar was set up way back in the year 1936 for manufacturing paper and paper-boards. For the purpose of procuring raw materials like bamboo for its use, the State of Orissa had granted forest areas on long-term lease in favour of the company. Petitioner No. 1 Forest Organisation was created in the year 1938 at Sambalpur which was an establishment distinctly separate from other units of the company. It was registered as a commercial establishment under the Orissa Shops and Commercial establishments Act, 1956. In the year 1988 the state Government decided to nationalize bamboo trade. Consequently the State government terminated the long-term lease granted in favour of the company with effect from October 1, 1988. Operation of the lease-hold bamboo forests allotted in favour of the petitioner stood nationalized and transferred to the Orissa Forest Development Corporation in the year 1993. With a view to increase production of bamboo in forest areas and to get higher royalty the State Government appointed paper mills as labour contractors and decided to entrust them with working of bamboo forest areas. From the year 1993-94 the Orient Paper mills and other paper mills established in the state were appointed las raw-material procurers, such as extracting bamboo from their allotted Forest Divisions.

(3.) AFTER nationalization of bamboo forest, petitioner No. 1 was engaged in procurement and transport of raw-materials from different places in the State. Due to certain difficulties, it is averred in the Writ application, production activity of the Orient Paper Mills, Brajarajnagar unit was suspended from December 27, 1998. For such eventuality, no work was available for the employees of petitioner No. 1. Consequently an application was filed under sub-section (1) of Section 25-M of the industrial Disputes Act by petitioner No. 2 before the Labour Commissioner-cum-Specified authority praying for granting permission to lay-off sixty-seven workmen out of total ninety-five employed in the establishment with effect from the date of granting such permission. The reasons assigned for seeking such permission were that the orient Paper Mills at Brajarajnagar was not having any production activity since December 27, 1998 for various reasons culminating in non-availability of work for the employees and it had become impossible to continue to pay the salary and wages of the employees without any work and procurement activity. The Labour commissioner after hearing the management and the union of petitioner No. 1 rejected the application holding that the proposed lay-off for an indefinite period was not the answer; that granting such permission was beyond his authority, and that the reasons for lay-off as enumerated in the application did not come within the definition Clause of lay-off and accordingly did not merit any consideration. The said order is assailed in this writ application.