Case Note & Summary
The judgment involves two writ petitions arising from an order of the Industrial Court, Mumbai dated 14 February 2003. The Sarva Shramik Sangh, a trade union, filed a complaint alleging unfair labour practice by M/s. Swan Mills Ltd. The union had taken initiative to form a workers' cooperative to run the mill's units. Swan Mills had one unit at Kurla and two units at Sewree, including a process house and a composite textile mill. On 27 January 1987, when union members working at the Head Office reported for work, they were faced with a lockout declared by the management. The Industrial Court partly allowed the complaint, directing payment of wages for the period between 27 January 1989 and 5 February 1991, but denied reinstatement with full back wages. Both parties challenged the order: Swan Mills aggrieved by the wage direction, and the union aggrieved by denial of reinstatement. The High Court examined the legality of the lockout and the entitlement to wages. It held that the lockout was illegal and amounted to unfair labour practice, as the employer did not follow proper procedure. However, the court found that the mill had closed down and there was no possibility of revival, so reinstatement could not be granted. The High Court upheld the Industrial Court's order, dismissing both petitions. The decision balances the rights of workmen to wages during an illegal lockout against the practical impossibility of reinstatement in a closed establishment.
Headnote
A) Industrial Law - Unfair Labour Practice - Lockout - Sections 25-O, 25-Q, 25-R of Industrial Disputes Act, 1947 - The Industrial Court found that the lockout declared by the employer was illegal and amounted to unfair labour practice under Item 9 of Schedule IV of the MRTU & PULP Act, 1971 - The court directed payment of wages for the lockout period from 27 January 1989 to 5 February 1991 - Held that the lockout was not justified and the workmen were entitled to wages for the period they were willing to work (Paras 2-5). B) Industrial Law - Reinstatement - Back Wages - Sections 30, 31 of MRTU & PULP Act, 1971 - The Industrial Court denied reinstatement and full back wages to the workmen, holding that the relationship of employer and workmen had come to an end due to closure of the mill - The High Court upheld this finding, noting that the mill had closed down and there was no possibility of revival - Held that reinstatement cannot be granted in a closed establishment (Paras 6-8).
Issue of Consideration
Whether the lockout declared by the employer was legal and justified, and whether the workmen are entitled to wages for the lockout period and reinstatement with full back wages.
Final Decision
Both writ petitions are dismissed. The order of the Industrial Court dated 14 February 2003 is upheld. The employer is directed to pay wages for the period 27 January 1989 to 5 February 1991, but reinstatement is denied.
Law Points
- Unfair labour practice
- Lockout
- Wages during lockout
- Reinstatement
- Back wages
- Industrial Court jurisdiction
