Bombay High Court Dismisses Petition Challenging Industrial Court Award Extending Benefits to Transferred Workmen — Protection of Service Conditions Upheld Under Industrial Disputes Act, 1947. The court held that workmen transferred from erstwhile Tomco and Lakme factories were entitled to extension of benefits under prior awards and settlements, and the Industrial Court's award was within the scope of the reference.

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

The petitioner, Hindustan Unilever Ltd. Research Centre And FCU / Development Centre, challenged an award of the Industrial Court dated 30 November 2013. The award arose from a reference made by the Additional Commissioner of Labour, Mumbai, under the Industrial Disputes Act, 1947, to resolve a dispute between the petitioner and the respondent, Hindustan Lever Research Centre Employees Union. The Union filed a Statement of Claim seeking protection of service conditions including basic wages and allowances, and extension of benefits under prior awards (Mehendale Award, Rothe Award, Shivankar Award) and settlements to workmen transferred from erstwhile Tata Oil Mill Company Limited (Tomco) and Lakme factories to the Research Centre and Fine Chemical Unit at Andheri. The concerned workmen were daily rated and monthly paid employees. Their service conditions were governed by the Y.D. Joshi award dated 14 October 1980, a settlement dated 15 December 1986, and a settlement dated 14 June 1990 for Tomco workmen, and a settlement of 2 April 1997 for Lakme workmen. The Union claimed that 27 workmen from Tomco at Sewree were transferred to the Research Centre and FCU/Development Centre. The Industrial Court allowed the Union's claim and directed the petitioner to extend the benefits. The High Court, after hearing the parties, dismissed the petition, upholding the Industrial Court's award. The court held that the Industrial Court had correctly applied the principles of protection of service conditions on transfer and that the workmen were entitled to parity with existing workmen at the transferee establishment. The petition was dismissed with no order as to costs.

Headnote

A) Industrial Law - Transfer of Workmen - Protection of Service Conditions - Industrial Disputes Act, 1947 - The Industrial Court directed the petitioner to extend benefits of prior awards and settlements to workmen transferred from erstwhile Tomco and Lakme factories to the Research Centre and FCU/Development Centre, holding that the workmen were entitled to protection of their existing service conditions and parity with existing workmen at the transferee establishment. (Paras 1-4)

B) Industrial Law - Reference - Scope of Industrial Adjudication - Industrial Disputes Act, 1947 - The Industrial Court, upon a reference by the Additional Commissioner of Labour, adjudicated the dispute regarding service conditions of transferred workmen and granted relief in the form of extension of benefits under prior awards and settlements, which was upheld by the High Court as within the scope of the reference. (Paras 2-4)

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Issue of Consideration

Whether the Industrial Court was justified in directing the petitioner to extend the benefits of prior awards and settlements to workmen transferred from erstwhile Tomco and Lakme factories to the Research Centre and FCU/Development Centre, and whether such direction amounts to an adverse change in service conditions.

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Final Decision

The High Court dismissed the writ petition, upholding the Industrial Court's award dated 30 November 2013. No order as to costs.

Law Points

  • Protection of service conditions on transfer
  • extension of benefits under prior awards and settlements
  • parity of benefits between transferred and existing workmen
  • jurisdiction of Industrial Court under Industrial Disputes Act
  • 1947
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Case Details

2014 LawText (BOM) (07) 41

WRIT PETITION NO. 528 OF 2014

2014-07-16

N.M. Jamdar

Mr. K.M. Naik, Senior Advocate a/w Mr. R.N. Shah a/w Mr. Mahesh Londhe a/w Ms Radha Ved i/b M/s Sanjay Udeshi & Co., for Petitioner; Mr. Sanjay Singhvi i/b Mr. Bennet D'Costa, for Respondent

Hindustan Unilever Ltd. Research Centre And FCU / Development Centre

Hindustan Lever Research Centre Employee Union

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Nature of Litigation

Writ petition challenging an award of the Industrial Court under the Industrial Disputes Act, 1947.

Remedy Sought

The petitioner sought to quash the Industrial Court's award dated 30 November 2013.

Filing Reason

The petitioner was aggrieved by the Industrial Court's award directing extension of benefits under prior awards and settlements to transferred workmen.

Previous Decisions

The Industrial Court passed an award on 30 November 2013 in a reference made by the Additional Commissioner of Labour, Mumbai.

Issues

Whether the Industrial Court was justified in directing the petitioner to extend benefits of prior awards and settlements to workmen transferred from erstwhile Tomco and Lakme factories. Whether the Industrial Court's award was within the scope of the reference.

Submissions/Arguments

The petitioner argued that the Industrial Court's award was erroneous and beyond the scope of the reference. The respondent Union supported the award, contending that the workmen were entitled to protection of service conditions and parity with existing workmen.

Ratio Decidendi

Workmen transferred from one establishment to another are entitled to protection of their existing service conditions and parity with workmen at the transferee establishment, and the Industrial Court has jurisdiction to direct extension of benefits under prior awards and settlements within the scope of a reference under the Industrial Disputes Act, 1947.

Judgment Excerpts

The petitioner-Hindustan Unilever Ltd. Research Centre And FCU / Development Centre is aggrieved by the award of the Industrial Court dated 30 November 2013. The award arises from the reference made by the Additional Commissioner of Labour Mumbai under the Industrial Disputes Act 1947, to resolve dispute between the Petitioner and the Respondent Hindustan Lever Research Centre Employees Union.

Procedural History

The Additional Commissioner of Labour, Mumbai, made a reference under the Industrial Disputes Act, 1947, to the Industrial Court. The Union filed a Statement of Claim. The Industrial Court passed an award on 30 November 2013. The petitioner filed a writ petition in the High Court challenging the award. The High Court dismissed the petition on 16 July 2014.

Acts & Sections

  • Industrial Disputes Act, 1947:
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