Case Note & Summary
The petitioners, the Authorized Officer and Chairman & Managing Director of IDBI Bank (Stressed Assets Stabilization Fund), filed four writ petitions challenging the orders of the Labour Court, Jalgaon, which allowed applications filed by the respondent workmen under Section 33C(2) of the Industrial Disputes Act, 1947 for recovery of wages for the period from 1st April 2008 to 30th June 2008. The workmen were employed by Shree Vindya Paper Mills Ltd., which was taken over by the Industrial Finance Corporation of India (IFCI) and later assigned to the petitioner bank. The Labour Court held that the petitioner bank, as assignee, is liable to pay the wages. The High Court dismissed the writ petitions, holding that the assignee bank steps into the shoes of the transferor and is liable for pre-transfer claims of workmen, and that the Labour Court has jurisdiction under Section 33C(2) to entertain such applications.
Headnote
A) Industrial Disputes Act, 1947 - Section 33C(2) - Recovery of Money - Jurisdiction of Labour Court - Workmen filed applications for recovery of wages for the period prior to transfer of the undertaking to the petitioner bank - Labour Court allowed the applications - Held that the assignee bank steps into the shoes of the transferor and is liable for pre-transfer claims of workmen, and the Labour Court has jurisdiction to entertain such applications (Paras 1-10).
Issue of Consideration
Whether the petitioner bank, as assignee of the assets and liabilities of the original employer, is liable to satisfy the claims of workmen for wages for the period prior to the assignment, and whether the Labour Court has jurisdiction to entertain applications under Section 33C(2) of the Industrial Disputes Act, 1947 against the assignee bank.
Final Decision
The High Court dismissed all four writ petitions, upholding the orders of the Labour Court. The Court held that the assignee bank is liable for the pre-transfer claims of workmen and that the Labour Court has jurisdiction under Section 33C(2) of the Industrial Disputes Act, 1947.
Law Points
- Assignee bank liable for pre-transfer claims of workmen
- Section 33C(2) I.D. Act
- 1947
- Recovery proceedings
- Transfer of undertaking
- Workmen's wages
- Labour Court jurisdiction
Case Details
2014 LawText (BOM) (02) 5
Writ Petition No. 2650 of 2013 with Writ Petition No. 2649 of 2013, Writ Petition No. 2664 of 2013, Writ Petition No. 2669 of 2013
The Authorized Officer, Stressed Assets Stabilization Fund & Anr.
Dyandeo Laxman Patil & Ors. (in WP 2650/2013); Suresh Nago Patil & Ors. (in WP 2649/2013); Sunil Waman Mahajan & Ors. (in WP 2664/2013); Manilal Namdeo Patil & Ors. (in WP 2669/2013)
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Nature of Litigation
Writ petitions challenging orders of Labour Court allowing applications under Section 33C(2) of Industrial Disputes Act, 1947 for recovery of wages.
Remedy Sought
Petitioners (bank) sought quashing of Labour Court orders directing them to pay wages to workmen.
Filing Reason
Petitioners contended that they are not liable for wages for the period prior to assignment of the undertaking.
Previous Decisions
Labour Court allowed the applications of workmen for recovery of wages for the period 1st April 2008 to 30th June 2008.
Issues
Whether the petitioner bank, as assignee of the assets and liabilities of the original employer, is liable to satisfy the claims of workmen for wages for the period prior to the assignment.
Whether the Labour Court has jurisdiction to entertain applications under Section 33C(2) of the Industrial Disputes Act, 1947 against the assignee bank.
Submissions/Arguments
Petitioners argued that they are not liable for wages for the period prior to the assignment of the undertaking.
Respondent workmen contended that the assignee bank steps into the shoes of the transferor and is liable for all pre-transfer claims.
Ratio Decidendi
An assignee of an undertaking steps into the shoes of the transferor and is liable for the claims of workmen arising prior to the transfer. The Labour Court has jurisdiction under Section 33C(2) of the Industrial Disputes Act, 1947 to entertain applications for recovery of wages against the assignee.
Judgment Excerpts
The assignee bank steps into the shoes of the transferor and is liable for pre-transfer claims of workmen.
The Labour Court has jurisdiction under Section 33C(2) of the Industrial Disputes Act, 1947 to entertain such applications.
Procedural History
The workmen filed applications under Section 33C(2) of the Industrial Disputes Act, 1947 before the Labour Court, Jalgaon, for recovery of wages for the period 1st April 2008 to 30th June 2008. The Labour Court allowed the applications. The petitioners (bank) challenged these orders by filing writ petitions before the High Court of Judicature at Bombay, Bench at Aurangabad. The High Court dismissed the writ petitions.
Acts & Sections
- Industrial Disputes Act, 1947: 33C(2)
