Case Note & Summary
The petitioner, D.G.P.Windsor (India) Ltd., challenged an order dated 22nd September 2005 passed by the Industrial Court, Thane in Complaint (ULP) No.414/2001. The Industrial Court directed the petitioner to pay full back wages, retrenchment allowance, compensation, and other legal dues to the respondent-workmen. The petitioner-company had factories at Thane, Vatwa, and Chhatral, and sales outlets across India. The company claimed that due to economic policy changes between 1990 and 1997, its market cap deteriorated, leading to huge losses and financial crunch. It could not gainfully employ even 100-125 employees. After discussions with the union, a Voluntary Retirement Scheme (VRS) was introduced but received no response. The company then claimed to have displayed a notice on the notice-board regarding closure. The workmen filed a complaint alleging unfair labour practices. The Industrial Court found that the company had not complied with the requirements of Sections 25FFF, 25G, and 25N of the Industrial Disputes Act, 1947, and had engaged in unfair labour practices under Items 1(a), 1(b), and 1(d) of Schedule IV of the MRTU & PULP Act, 1971. The court directed payment of full back wages and other dues. The High Court upheld the Industrial Court's order, holding that the company's claim of financial difficulty and closure was not substantiated and that the workmen were entitled to the relief granted.
Headnote
A) Industrial Law - Unfair Labour Practice - Retrenchment Compensation - Sections 25FFF, 25G, 25N, Industrial Disputes Act, 1947 read with Items 1(a), 1(b), 1(d) of Schedule IV, MRTU & PULP Act, 1971 - The Industrial Court found that the company had engaged in unfair labour practices by retrenching workmen without complying with statutory requirements and without paying retrenchment compensation. The court held that the company's claim of financial difficulty and closure was not substantiated and that the workmen were entitled to full back wages and other benefits. (Paras 2-10)
Issue of Consideration
Whether the Industrial Court was justified in directing the petitioner-company to pay full back wages, retrenchment allowance, compensation, and other legal dues to the respondent-workmen despite the company's claim of financial difficulty and closure.
Final Decision
The High Court dismissed the writ petition and upheld the order of the Industrial Court directing the petitioner-company to pay full back wages, retrenchment allowance, compensation, and other legal dues to the respondent-workmen.
Law Points
- Unfair labour practice
- retrenchment compensation
- back wages
- closure of undertaking
- burden of proof
- MRTU & PULP Act
- 1971
- Industrial Disputes Act
- 1947
Case Details
2006 LawText (BOM) (03) 86
Writ Petition No. 7852 of 2005
C.U. Singh, senior counsel with P.N. Anaokar and A.K. Jalisatgi for the petitioner; Ms. Naina Buch with S.K. More for the respondents
D.G.P.Windsor (India) Ltd.
Pradeep Shivram Thakurdesai and others
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Nature of Litigation
Writ petition challenging the order of the Industrial Court directing payment of full back wages, retrenchment allowance, compensation, and other legal dues to workmen.
Remedy Sought
Petitioner sought to quash the Industrial Court's order directing payment of full back wages and other dues to the respondent-workmen.
Filing Reason
The petitioner-company claimed financial difficulty and closure, and challenged the Industrial Court's finding of unfair labour practices.
Previous Decisions
The Industrial Court, Thane, in Complaint (ULP) No.414/2001 dated 22nd September 2005, directed the petitioner to pay full back wages, retrenchment allowance, compensation, and other legal dues to the respondents.
Issues
Whether the Industrial Court was justified in directing payment of full back wages and retrenchment compensation despite the company's claim of financial difficulty and closure.
Whether the company had complied with the requirements of Sections 25FFF, 25G, and 25N of the Industrial Disputes Act, 1947.
Submissions/Arguments
Petitioner argued that due to economic policy changes, the company suffered huge losses and could not gainfully employ employees; VRS failed; closure was inevitable.
Respondents argued that the company engaged in unfair labour practices by retrenching workmen without complying with statutory requirements and without paying retrenchment compensation.
Ratio Decidendi
The court held that the company's claim of financial difficulty and closure was not substantiated and that the workmen were entitled to full back wages and retrenchment compensation as the company had engaged in unfair labour practices under the MRTU & PULP Act, 1971.
Judgment Excerpts
This petition is directed against the order dated 22nd September, 2005 passed by the Industrial Court, Thane in Complaint (ULP) No.414/2001 directing the petitioner- Company to pay full back wages, retrenchment allowance, compensation and other legal dues to the respondents- workmen.
Procedural History
The workmen filed Complaint (ULP) No.414/2001 before the Industrial Court, Thane, alleging unfair labour practices. The Industrial Court passed an order on 22nd September 2005 directing the petitioner-company to pay full back wages and other dues. The petitioner challenged this order by filing Writ Petition No. 7852 of 2005 before the Bombay High Court, which was dismissed on 31st March 2006.
Acts & Sections
- Industrial Disputes Act, 1947: 25FFF, 25G, 25N
- Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: Items 1(a), 1(b), 1(d) of Schedule IV
