MODISTONE LTD Vs. PRESIDING OFFICER INDUSTRIAL TRIBUNAL

JUDGEMENT

(1.) THIS order will dispose of two Civil Writ Petitions 10362 and 11281 of 1992 both of which are directed against the award of the Industrial Tribunal, Punjab where by the reference made to it under Section 10 of the Industrial Disputes Act. 1947 (for short, the Act) was decided in favour of the workmen and they were held entitled to 50 per cent wages for the lock-out period. C. W. P. 10362 of 1992 has been filed by the management challenging the findings recorded by the Tribunal whereas the other writ petition has been filed by the workmen claiming full wages for the lock out period.

(2.) BOMBAY Tyres International Limited now known as Modistone Limited (hereinafter called the Management) is a company incorporated under the Companies Act having its registered office at Bombay and head office at New Delhi. It carries on business of manufacturing and sale of automotive tyres, tubes, flaps and other repair materials at its factory at Sewree, Bombay. There is a purchase office at Kottayam in Kerala and 21 district sales offices (sales outlets) in different parts of the country including the one at Jalandhar in the State of Punjab. At present, there are about 15 workers employed at the sales office at Jalandhar, The Management has been entering into settlements from time to time with Modistone Employees Union (the Union) representing the workmen at Bombay. One such settlement was signed on 12. 1. 1983 with the Union headed by Dr. Datta Samant. This settlement was terminated and a fresh charter of demands dated 23. 10. 1985 for the revision of the existing terms and conditions of service of the workmen was served on the Management demanding an increase in emoluments. It is stated that the workers demanded an increase of Rs. 5600/- p. m. in their emoluments per worker over and above, their existing emoluments and also demanded payment of bonus at the rate of 20 per cent along with 20 per cent ex gratia payment for the accounting year ending on 31. 10. 1985. Meanwhile, All India Bombay Tyres International Employees Federation, Bombay (hereinafter referred to as the Federation) to which the Union is said to be affiliated gave a notice dated 18. 6. 1986 demanding 20 percent bonus and two months' average total wages as ex gratia payment for the accounting year 1984-85. This notice was given on behalf of all the affiliated unions including the workers employed at Jalandhar. A copy of this notice is Annexure P-3 with the writ petition. Negotiations between the Management and workmen were going on and it is alleged that the workers in the factory at Bombay resorted to various acts of indiscipline, coercion and unfair labour practices such as wilful go slow, strikes, gherao, persistent refusal to work over-time and threats to managerial and supervisory personnel. In spite of requests made to the workmen to desist from the coercive illegal activities, they continued with the same and according to the Management it became impossible for the factory to work. Company's property including its highly sophisticated plant and machinery is said to have been damaged. The Management sent notices to the unions, copies of which have been attached with the writ petition. The Management then gave a lock-out notice dated 8. 10. 1986 in respect of its factory and central office at Bombay which became operative from 24. 10. 1986. Workers Union at Bombay is said to have challenged the lock-out notice under the provisions of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 before the Labour Court at Bombay and the action of the Management in declaring a lock-out was held to be legal as well as justified. It is alleged that the Management's factory, central office and sales offices throughout the country including the one at Jalandhar are functionally integrated and inter-dependent for proper working and that the sales offices have no independent existence. It is the case of the Management that these offices exist and survive only if the materials manufactured at the factory are sent to these offices. As a consequence of the lockout declared in the factory at Bombay, the manufacturing process had come to a halt and the Management was forced to declare a lock-out in the district sales offices as well including the one at Jalandhar. A notice in this regard is said to have been sent to the Modistone Employees Union, Jalandhar, and also to the conciliation Officer and the Labour Commissioner.

(3.) IT may be mentioned that since the Management had offices in different States in the country, different State Governments made similar references to their respective Labour Courts wether under the Act or under the provisions of a similar law prevailing in those States and different awards have been made by the Labour Courts, some justifying and upholding the action of the Management while others have taken a contrary view holding that the workmen were entitled to wages for the lock-out period. Different awards have given wages at different rates to the workmen. Learned counsel for the petitioners pointed out during the course of arguments that against one of the awards given by the Labour Court, Cuttak in favour of the Management, the workers filed as writ petition in the Orissa High Court which was dismissed in limine and a special leave petition filed in the Supreme Court too had been dismissed thereby upholding the action of the Management.