Bombay High Court Dismisses Management's Challenge to Industrial Court Award on Wage Classification for Sugar Workers. Union's Claim for Proper Designation and Pay Scales from Commencement of Production Upheld as Reasonable.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The judgment concerns two writ petitions challenging an award of the Industrial Court at Kolhapur in Reference (IC) No.17 of 1985 dated 12/12/1988. The first petition was filed by Shri Shahu Chhatrapati Sahakari Sakhar Karkhana Ltd. (the Karkhana) and the second by Sakhar Kamgar Sabha (the Union). The Union had submitted a notice of change on 19/6/1984 claiming implementation of the recommendations of the Central Wage Board for Sugar Industry and the independent Shankarrao Patil Committee constituted by the State Government. It was undisputed that the Karkhana had implemented the Second Wage Board recommendations from 1/11/1982 and the Patil Committee recommendations from 1/5/1983. The Karkhana started sugar production on 17/11/1980. The management did not respond to the Union's demands, leading to a reference by the State Government. The demands were: (1) designations as per work shall be given to workers in respective departments; (2) pay scales as per the Second Central Wage Board shall be made applicable from the date the Karkhana started manufacturing sugar i.e., 17/11/1980. The Industrial Court allowed the reference, directing the Karkhana to give proper designations and pay scales from 17/11/1980. The Karkhana challenged the award as unreasonable, unjust, and unfair. The Union also filed a petition seeking implementation. The High Court, after hearing both sides, found that the Industrial Court's award was based on material on record and was just and proper. The court noted that the Karkhana had already implemented the wage board recommendations from later dates but the claim was for the period from commencement of production. The High Court dismissed both petitions, upholding the award.

Headnote

A) Industrial Law - Wage Fixation - Designation and Pay Scales - Industrial Disputes Act, 1947 - Reference (IC) No.17 of 1985 - The Union claimed implementation of Central Wage Board recommendations and proper designations for workers from the date the Karkhana started sugar production. The Industrial Court allowed the reference, directing the Karkhana to give designations as per work and pay scales from 17/11/1980. The High Court upheld the award, finding it reasonable and based on evidence. (Paras 1-5)

B) Industrial Law - Reasonableness of Award - Judicial Review - Industrial Disputes Act, 1947 - The Karkhana challenged the award as unreasonable and unjust. The High Court held that the Industrial Court's findings were based on material on record and the award was just and proper. The petitions were dismissed. (Paras 1-5)

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Issue of Consideration

Whether the Industrial Court's award directing the Karkhana to give proper designations and pay scales as per the Second Central Wage Board from the date of commencement of sugar production is reasonable, justifiable, and fair.

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Final Decision

Both writ petitions are dismissed. The award of the Industrial Court is upheld.

Law Points

  • Industrial Disputes Act
  • 1947
  • Section 10(1) reference
  • Central Wage Board recommendations
  • designation based on work performed
  • pay scales from date of production commencement
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Case Details

2006 LawText (BOM) (08) 5

Writ Petition No.1626 of 1989 with Writ Petition No.3381 of 1989

2006-08-19

B.H. Marlapalle

Mr.A.V.Bukhari, Mr.Abhay Nevagi, Mr.B.A. Bukhari for Karkhana; Mr.K.S.Bapat for Kamgar Sabha

Shri Shahu Chhatrapati Sahakari Sakhar Karkhana Ltd.

Sakhar Kamgar Sabha & anr.

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Nature of Litigation

Writ petitions challenging the reasonableness, justifiability and fairness of an award passed by the Industrial Court at Kolhapur in Reference (IC) No.17 of 1985.

Remedy Sought

The Karkhana sought quashing of the award; the Union sought implementation of the award.

Filing Reason

The Union claimed implementation of Central Wage Board recommendations and proper designations from the date of commencement of sugar production; the management did not respond, leading to reference and award.

Previous Decisions

The Industrial Court allowed the reference on 12/12/1988, directing the Karkhana to give designations as per work and pay scales from 17/11/1980.

Issues

Whether the Industrial Court's award directing the Karkhana to give proper designations and pay scales from the date of commencement of sugar production is reasonable and just. Whether the Karkhana's challenge to the award on grounds of unreasonableness and unfairness is sustainable.

Submissions/Arguments

The Karkhana argued that the award was unreasonable, unjust, and unfair. The Union supported the award and sought its implementation.

Ratio Decidendi

The Industrial Court's award was based on material on record and was just and proper. The High Court found no reason to interfere with the award under writ jurisdiction.

Judgment Excerpts

Both these petitions assail the reasonableness, justifiability and fairness of the award passed by the learned Member of the Industrial Court at Kolhapur in Reference (IC) No.17 of 1985 on 12/12/1988 and hence they are being decided by a common judgment. The Industrial Court allowed the reference and directed the Karkhana to give proper designations and pay scales from 17/11/1980.

Procedural History

The Union submitted a notice of change on 19/6/1984. The management did not respond. The State Government referred the demands to the Industrial Court. The Industrial Court passed an award on 12/12/1988. The Karkhana filed Writ Petition No.1626 of 1989 and the Union filed Writ Petition No.3381 of 1989 challenging/awarding the award. Both petitions were heard together and dismissed by this common judgment on 19/8/2006.

Acts & Sections

  • Industrial Disputes Act, 1947:
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