Case Note & Summary
The petitioner, Krantikari Kamgar Union, a registered trade union, challenged the order dated 27 January 2015 passed by the Labour Commissioner (Respondent No.1) granting permission for closure of the industrial undertaking of Respondent No.3, Hindalco Industries Ltd., at village Khutli, Khanvel, in the Union Territory of Dadra & Nagar Haveli. The union represented workmen employed in the factory. In September 2009, workers joined the union, and a charter of demands was served on 29 August 2012. Conciliation failed, and a lock-out was declared. The dispute was referred to the Labour Court on 21 November 2013. On 3 October 2013, the company issued a closure notice proposing closure from 2 January 2014. The union opposed, and the Labour Commissioner rejected the closure application on 30 November 2013. The company filed a review application on 27 December 2013. Meanwhile, a settlement was reached on 8 December 2014 between the union and the company regarding full and final settlement of legal dues of 95 permanent workmen, and the union agreed to withdraw all litigations. However, the union continued opposing the review application on behalf of contract workers. The Labour Commissioner entertained the review and granted closure permission on 27 January 2015. The union challenged this order. The court considered the issue of whether the review application was maintainable under Section 25-O(4) of the Industrial Disputes Act, 1947, which bars a fresh application for closure within one year of rejection. The court held that a review application is not a fresh application and can be entertained. The court also noted that the permanent workmen had settled their claims, and no permanent workman was left. The court upheld the Labour Commissioner's order granting closure permission.
Headnote
A) Industrial Disputes Act - Closure of Undertaking - Section 25-O(4) - Review Application - The Labour Commissioner entertained a review application for closure after the original application was rejected. The court held that a review application is not a fresh application under Section 25-O(4) and can be entertained even after the expiry of one year from the rejection order. (Paras 1-5) B) Industrial Disputes Act - Closure of Undertaking - Settlement with Workmen - Section 25-O - The court considered that the permanent workmen had entered into a settlement with the company and no permanent workman was left. The closure permission was granted considering the settlement and the fact that only contract workers remained. (Paras 4-5)
Issue of Consideration
Whether the Labour Commissioner could entertain a review application for closure of an industrial undertaking after the expiry of one year from the rejection of the original closure application, and whether the closure permission was validly granted.
Final Decision
The court upheld the order dated 27 January 2015 passed by the Labour Commissioner granting permission for closure of the industrial undertaking of Respondent No.3.
Law Points
- Section 25-O(4) of the Industrial Disputes Act
- 1947 bars fresh application for closure within one year of rejection
- but review application is not a fresh application and can be entertained
- closure permission can be granted after settlement with permanent workmen.
