Case Note & Summary
The dispute arose from a Writ Petition filed by the Chitradurga District Mazdoor Sangh against the Bhadra Shahakari S.K. Niyamita, challenging the management's inaction in implementing a settlement dated 14.05.1998. The High Court had ordered the management to implement the settlement and pay 40% back wages to the workmen. The appellant, a co-operative sugar factory, contended that it was not a 'State' under Article 12 of the Constitution, making the Writ Petition unmaintainable. The Supreme Court agreed with the appellant's position, citing several precedents, and held that the Writ Petition was not maintainable. The court also considered the financial situation of the appellant, which reported an accumulated loss of Rs.4252.85 lacs as of 31.03.2006, and directed the management to pay 10% back wages amounting to Rs.9.52 lacs instead of the previously ordered 40%. This amount was to be distributed among the 51 workmen reinstated in service. The appeal was disposed of without costs, and a related contempt petition was dismissed as infructuous.
Headnote
A) Constitutional Law - Maintainability of Writ Petition - Writ Petition against Co-operative Society - Writ Petition not maintainable as the co-operative sugar factory does not fall within the definition of 'State' under Article 12 of the Constitution of India - The court held that the appellant, being a non-governmental organization, is not subject to the writ jurisdiction. (Paras 5-6). B) Labour Law - Payment of Back Wages - Direction for payment of back wages modified - The court directed the appellant to pay 10% back wages amounting to Rs.9.52 lacs to the workmen, considering the financial difficulties faced by the appellant. (Paras 10-12).
Issue of Consideration
Whether the Writ Petition filed by the respondent-Union against the co-operative sugar factory was maintainable under Article 12 of the Constitution of India.
Final Decision
The Supreme Court held that the Writ Petition was not maintainable as the appellant is not a 'State' under Article 12. The court directed the appellant to pay 10% back wages amounting to Rs.9.52 lacs to the workmen, to be distributed within two months.
Law Points
- Maintainability of Writ Petition
- Definition of 'State'
- Back Wages Payment
- Financial Burden on Management
