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Karnataka High Court · body

1991 DIGILAW 583 (KAR)

MINERVA MILLS (N. T. C. ) LABOUR UNION, BANGALORE v. MANAGEMENT OF MINERVA MILLS LIMITED, BANGALORE

1991-11-19

R.RAMAKRISHNA

body1991
R. RAMAKRISHNA, J. ( 1 ) AT the time of preliminary hearing, this court ordered status quo and issued rule. The respondents 1 and 2 have immediately appeared and filed statement of objections with an application for vacating the order of status quo. After taking consent of the learned advocates on both the sides, the writ petition is heard on merits for final disposal. ( 2 ) THE facts of the case in brief are as under:the general secretary of the minerva mills now (national textile corporation) labour union has filed this writ petition under articles 226 and 227 of the Constitution of india, for issue of an appropriate writ or Order, declaring that the first respondent should not coerce the petitioner to accept the proposed terms and conditions of the settlement as per Annexure 'd' and issue a mandamus to adopt the methods in accordance with law as contemplated under the Provisions of Industrial Disputes Act, instead of using violence and further to restrain the management from bringing 7,000 spindles along with the machineries and 200 permanent employees from the Mysore mills (hereinafter referred to 'as mills' ). ( 3 ) THE petitioner is a majority union in the minerva mills. Both Mysore mills and minerva mills are owned and run by the national textile corporation (a. p. k. k. and m. Ltd. ). Both the mills are engaged in spinning and weaving of textile goods and located within the radius of 2 kilometres. On 18-1-1990, there was a huge fire accident in the Mysore mills resulting in the destruction of a major part of the spinning department and preparatory machinery including large portion of the building. Out of 36328 spindles about 16808 spindles were gutted by fire and the balance of 19520 spindles were left after salvage. Due to want of preparatory machine, which gutted in the fire and also for want of accommodation these spindles were kept unused. The work was suspended for some months. The mill before the fire accident, has employed 1724, of whom 1306 were permanent. After the work of the mill was resumed in the weaving department, it was possible to provide only 550 workmen. 600 employees (attached to spinning department are without any work and they have been laid-off. It is found, after examining of the spinning department, the new building has to be constructed with a huge capital of about Rs. After the work of the mill was resumed in the weaving department, it was possible to provide only 550 workmen. 600 employees (attached to spinning department are without any work and they have been laid-off. It is found, after examining of the spinning department, the new building has to be constructed with a huge capital of about Rs. 12 crores. Therefore, the management offered voluntary retirement benefit. About 677 employees availed and retired voluntarily. ( 4 ) THE national textile corporation considering the ways and means of relieving the hardship caused to the workmen to relieve them from unemployment, found feasible to shift 7,000 spindles to the petitioner mill where there was spare preparatory capacity as well as spare accommodation to house 7,000 spindles and provide job for 200 workmen on these spindles. Therefore, the management entered into a settlement with the union of Mysore mills on 18-9-1991 to relieve the difficulty faced by the workmen to some extent. ( 5 ) ANNEXURE 'b' to the writ petition is the memorandum of settlement under Section 12, sub-clause (3) of the Industrial Disputes Act. Some of the salient features of this settlement is worth noting for proper disposal of this writ petition. Terms of settlement" (A) both the parties have agreed to shift immediately about 7,000 spindles along with the available preparatory machines and post spinning machines to minerva mills premises; (b) x x x x x x x; (c) it is also agreed to provide employment to 200 permanent workmen immediately for jobs like cleaning, dismantling, shifting and erection of machinery etc. And subsequently to work on the machines in the new premises; (d) x x x x x x x; (e) it is agreed that in addition to giving work to all the permanent workmen, the casual workers of Mysore spinning and manufacturing mills will be provided minimum of 24 days (twenty-four) of employment in a month subject to their presenting themselves for work on all working days in a month; (f) xxxxxxx; (g) x x x x x x x; (h) it is agreed to maintain separate identity of Mysore spinning and manufacturing mills; (i) it is agreed that the management shall undertake to provide security to Mysore spinning and manufacturing mills workmen who are on duty at minerva mills premises; (j) xxxxxxx; (k) x x x x x x x; (1) it is agreed that there shall be no amalgamation of Mysore spinning and manufacturing mills with minerva mills; (m) it is agreed that minerva mills shall not have right on any machinery which is shifted to minerva mills premises; (n) it is agreed that any earnings in any manner from the existing unit of Mysore spinning and manufacturing mills at malleswaram will be credited to new Mysore mills unit only. " ( 6 ) THE management have sent a communication dated23-9-1991 to the petitioner's union enclosing a copy of the proposed terms and conditions of the settlement, annexures c and d, bringing to their notice of shifting 7,000 spindles along with available preparatory machines and posting 200 workmen. In this letter, the petitioner was requested to come with positive understanding at earliest. This move was protested by a letter dated 13-9-1991 'annexure 'e', by the petitioner's union to stop the shifting of 7,000 spindles along with available machinery and posting 200 permanent employees. (emphasis supplied) ( 7 ) SRI S. Krishnaiah, learned Advocate for the petitionerunion contends that taking advantage of the fire accident, the management of Mysore mills wanted to shift 7,000 spindles to the premises of minerva mills along with 200 employees to deprive 343 casual labourers working in the minerva mills to become permanent and due to induction of spindles and the workmen, there is every likelihood that the casual labourers will lose the chance of becoming permanent employees and their retrenchment is inevitable. The learned Advocate further submits that the respondents without complying the mandatory Provisions contained under Section 9-a of the Industrial Disputes Act, read with schedule iv, have resorted to effect a change in the service conditions of minerva mills. Hence their action is legally unsustainable. According to the learned counsel, by this method, the respondents have further violated si. Nos. 10 and 11 of schedule iv. Hence action should be treated as ineffective. ( 8 ) AGAINST this submission, Sri S. S. Ramadas, learned Advocate for respondents 1 and 2 submits that, there is absolutely no violative of Section 9-a of the Industrial Disputes Act and the submission of the petitioner is only imaginaryand it is nothing but blackmailing the management holding them at ransom and having this view in mind, the petitioner has filed this writ petition. When the respondents wanted to afford appointment for 200 persons in its another concern, without causing any change in the conditions of service, there is no violation of Section 9-a of the said act. ( 9 ) SECTION 9-a reads as follows:"9-a. Notice of change. no employer who proposes to effect any. Change in the conditions of service applicable to any workman in respect of any matter specified in the fourth schedule, shall effect such change, (A) without giving to the workman likely to be affected by such change a notice in the prescribed manner of the nature of the change proposed to be effected; or (b) within twenty-one days of giving such notice: provided that no notice shall be required for effecting any such change: (a) where the change is effected in pursuance of any (settlement or award)" ( 10 ) ITEMS 10 and 11 under schedule four read thus:" (10) rationalisation, standardisation or improvement of plant or technique which is likely to lead to retrenchment of workmen; (11) any increase or reduction (other than casual) in the number of persons employed or to be employed in any occupation or process or department of shift (not occasioned by circumstances over which the employer has no control ). " ( 11 ) ACCORDING to Mr. Krishnaiah, the above conditions areviolated in respect of the workmen of minerva mills. Hence the notice under Section 9-a was absolutely necessary. " ( 11 ) ACCORDING to Mr. Krishnaiah, the above conditions areviolated in respect of the workmen of minerva mills. Hence the notice under Section 9-a was absolutely necessary. The reasons formulated by the learned counsel is that if the spindles are shifted providing works for 200 permanent workmen of Mysore mills, it will result in retrenchment of casual workmen, who are working in the respondent's mills. Secondly, there is an increase in the number of persons employed in the minerva mills by adding 200 workmen, which affected condition No. 11. ( 12 ) PER contra, Sri Ramadas contends that n. t. c. being the owner of these two concerns is at liberty to make use of the place available in one of the mill to provide work for the workmen of the other mill without causing any increase of employees in minerva mills and therefore, the petitioner cannot make a grievance of this nature. ( 13 ) SOME of the important terms of the settlement areexcerpted above. The short recital of the case in the memorandum of settlement shows that due to destruction of Mysore mills in the fire accident running of the mill at present is uneconomical and the company has suffered a loss of Rs. 35 to Rs. 40 lakhs per month and the accumulated loss is about 35. 2 crores as on 31-3-1991. In view of the financial stringency to provide work it was decided to shift 7000 spindles and to provide work for 200 workmen. The terms indicated above shows that these spindles will be kept in a separate place available in the petitioner mills and this 200 workmen will be treated as the workmen of the Mysore mills by maintaining separate identity and there shall be no amalgamation to these two mills and the petitioner mill shall not have right on any machinery which is shifted to minerva mills premises. ( 14 ) SRI Krishnaiah further contends that there was an agreement entered into between the employees of the petitioner mills with national textile corporation on 6-3-1989, wherein, it was agreed to provide 36,000 spindles but the management has provided only 26,000 spindles. ( 14 ) SRI Krishnaiah further contends that there was an agreement entered into between the employees of the petitioner mills with national textile corporation on 6-3-1989, wherein, it was agreed to provide 36,000 spindles but the management has provided only 26,000 spindles. Therefore, the spindles, now the respondent intended to shift to the mills would be utilised for the casual labourers working in minerva mills or alternatively out of 343 casual labourers, 200 should be made permanent and they should be allowed to work on this spindles. ( 15 ) BEFORE considering the logic behind the submission of sri Krishnaiah, an examination is necessary to find out whether there is any violation of Section 9-a of the Industrial Disputes Act? ( 16 ) IN the workmen of the Food Corporation Of India v M/s. Food Corporation of India, the Supreme Court observed thus:"the food corporation of India adopted different methods at different places for employing labour for handling foodgrains. Initially a contractor was engaged by the corporation for handling storage and transit of foodgrains at one depot. Subsequently, by negotiations and settlements the contract system was abolished and the workmen were directly paid the wages, presumably at piece rate for the service rendered by them by the corporation. A further attempt was made to bring about a basic change in the system by reinducting the intermediary contractor. This attempt to change the status of the workmen from being workmen of the corporation to becoming the labour employed by the contractor was resisted by food corporation of India workers' union and it led to negotiations between the corporation and the union resulting in a settlement. The corporation addressed communication No. 1-50 (38)/78-labour, dated April 28, 1973 to its various regional managers pointing out therein that the procedure in respect of direct payment to labourers laid down in the communication shall be followed. From March 10, 1975 the corporation however, changed the method of payment superseding the direct payment system and reintroducing contractor system and that too without giving any notice of change as contemplated by Section 9-a of the Industrial Disputes Act, 1947. As a direct consequence of this change, the corporation discontinued employment of 464 workmen attached to that depot and brought in the intermediary contractor and treated the aforementioned workmen as the workmen employed by the contractor. As a direct consequence of this change, the corporation discontinued employment of 464 workmen attached to that depot and brought in the intermediary contractor and treated the aforementioned workmen as the workmen employed by the contractor. " ( 17 ) IN Hindustan Lever Ltd. V Ram Mohan Ray and others,while dealing item nos. 10 and 11, under schedule iv for issue of a notice under Section 9-a the word likely to be affected was considered by the Supreme Court at para 8 thus:"the word 'affected' in the circumstances could only refer to the workers being adversely effected and unless it could be shown that the abolition of one department has adversely effected the workers it cannot be brought under item 11. The same consideration applies to the question of change in usage under item 8. " ( 18 ) THE question of rationalisation under item No. 10 andincrease or reduction of number of persons employed coming under item No. 11 were in issue. While deciding that question, the Supreme Court has considered some of the earlier judgments on this point as to what constitute conditions of service the change of which would require notice under Section 9-a of the act. ( 19 ) IN Dharangadhara Chemical Works Ltd. V Kanju Kalu,the labour appellate tribunal of India (l. a. t. i.) held: "that the increase in the weight of bags to be carried from 1 cwt to 1 cwt was a change in the work load and the company was bound to pay wages as the workmen were willing to work but did not work on account of the unreasonable attitude adopted by the management. In chandramalai estate v its workmen the payment of cumbly allowance was held to have become a condition of service. In the Graham Trading Co. (india) Ltd. V Its Workmen, it was held that the workmen were not entitled to puja bonus as an implied term of employment. In Workmen of Hindustan Ahipyard Ltd. V Industrial Tribunal, Andhra Pradesh, in the matter of withdrawal of concession of coming late by half an hour (than the usual hour), it was held that the finding of the industrial tribunal that Section 9-a did not apply to the case did not call for interference. But the decision proceeded on the basis that the court will not interfere in its jurisdiction unless there was any manifest injustice. But the decision proceeded on the basis that the court will not interfere in its jurisdiction unless there was any manifest injustice. In Mcleod and co. V Its Workmen, the provision for tiffin was held to be an amenity to which the employees were entitled, and the provision of cash allowance in lieu of free tiffin directed to be made by the industrial tribunal could not be considered to be erroneous in law. In Indian overseas bank v their workmen, "key allowance" was treated as a term and condition of service. In Indian Oxygen ltd. V Udaynath Singh, withdrawal by the management of the supply of one empty drum at a time at reasonable intervals was held not to contravene sections 9-a and 33. In Oil And Natural Gas Commission v Their Workmen, where there was nothing to show that it was a condition of service that a workman should work for 6 hours only, no notice of change was held to ba required under Section 9-a for fixing the hours of work at eight. In Tata Iron and steel co. V Its Workmen, change in weekly days of rest from sunday to some other day was held to require notice. " ( 20 ) ON the conspectus of decisions, the Supreme Court opined that, whether any particular practice or allowance or concession has become a condition of service, would always depend upon the facts and circumstances of each case. ( 21 ) THE real object and purpose of enacting Section 9-a under the act is to afford an opportunity to the workmen to have his say whenever his service conditions are affected as shown in schedule iv by effecting change in the establishment. ( 22 ) THE management wanted to adopt a policy of 'live and let live', by providing job for 200 workmen immediately at minerva mills where there is facility of place, spare building and to house these 7,000 spindles and to provide job. The terms of settlement are clear and unambiguous which does not take away any right of the workmen of minerva mills. The petitioner's union which is not a signatory to the settlement dated 6-3-1989, wanted to take advantage of that settlement to hinder the present settlement in providing job for 200 workmen. The terms of settlement are clear and unambiguous which does not take away any right of the workmen of minerva mills. The petitioner's union which is not a signatory to the settlement dated 6-3-1989, wanted to take advantage of that settlement to hinder the present settlement in providing job for 200 workmen. It appears that the union is forcing the respondents to give permanent tag to some of the casual labourers working at minerva mills by filing this writ petition, without resorting to the Provisions contained in industrial laws to get their redressal in a proper forum. If it is the say of the petitioner that some 343 workmen are working as casual labourers and if it is their case that they have been deprived of basic necessities that is provided to permanent workmen, they" are at liberty to move the tribunal for proper benefits under the industrial disputes act. When the legislature has thought it fit to create new forums to enforce the rights created by it, this court exercising the constitutional jurisdiction under article 226 should respect the legislative wisdom. This court cannot by-pass the statutory forums and compel the respondents to do a thing which is not the subject-matter in this writ petition. Hence the apprehension in the minds of the petitioners that by providing job to these 200 employees a situation will be created to retrench the casual employees amounts to a change as contemplated under item No. 11 is without any merits. ( 23 ) SRI S. Krishnaiah, nextly contended that the respondent 1 and 2 by adopting this method of shifting the workmen of the Mysore mills to minerva mills, is indirectly achieving the object of closer without resorting to Section 25 (o) of the industrial disputes act. According to Mr. Krishnaiah, the paper publication given by the chairman which is at Annexure 'h' in the rejoinder statement, amounts to adopting this method to sell the lands of Mysore mills and to deprive the legitimate claim of the workmen. There is absolutely no merits in the submission of Mr. Krishnaiah and it is not the subject-matter of this writ petition. ( 24 ) THE next submission of Mr. There is absolutely no merits in the submission of Mr. Krishnaiah and it is not the subject-matter of this writ petition. ( 24 ) THE next submission of Mr. Krishnaiah is that the management are adopting unfair labour practice as defined under v schedule is also without any merits as there is no infringement of the rights created under the statute in respect of the workmen of minerva mills. A mere providing job for 200 workmen in a place belonging to the management without affecting the rights and privileges of the workmen working in the minerva mills, under any stretch of imagination should be called as an act of unfair labour practice. The further submission of Sri Krishnaiah that any dismissal of the writ petition is encouraging the respondents 1 and 2 to do the illegal act is a direct threat to the independence of the judiciary and such a submission is unwarranted. ( 25 ) SRI Ramadas, has also placed before the court the photos taken immediately after the fire accident only to show that reconstruction of building immediately is not possible and enormous finance is required which the company is unable to bear at present. It is admitted that the n. t. c. now managing about 16 units of textile industry in south India as they became sick industries. The object behind this is to see that some effort is to be made to make these sick mills as viable units, to provide work which is a fundamental right of every workman. ( 26 ) THE petitioners have prayed for issue of mandamus order Section to the respondents to adopt the methods in accordance with law and to exhaust an alternative remedy by raising an industrial dispute instead of using violence. This prayer shows that the respondents to shift 7,000 spindles to provide work for the 200 workmen of the Mysore mills, should raise an industrial dispute and get permission to do the same. This prayer by the petitioner is not supported by any legal infringement. When no such right vested to the petitioners which will be infringed by the respondents and to achieve that, an industrial dispute is necessary. ( 27 ) IN mani subrat jain, etc. This prayer by the petitioner is not supported by any legal infringement. When no such right vested to the petitioners which will be infringed by the respondents and to achieve that, an industrial dispute is necessary. ( 27 ) IN mani subrat jain, etc. V state of haryana and others, the Supreme Court had an occasion to deal with the right to seek a writ of mandamus under article 226, the court held:"it is elementary though it is to be restated that no one can ask for a mandamus without a legal right. There must be a judicially enforceable right as well as a legally protected right before one suffering a legal grievance can ask for a mandamus. A person can be said to be aggrieved only when a person is denied a legal right by some one who has a legal duty to do something or to abstain from doing something. State of haryana v subash chander marwaha and another, jasbhai motibhai desai v roshan kumar haji bashir ahmed and others and halsbury's laws of england, 4th edn. , vol. 21, para 122, relied on. " ( 28 ) SINCE no legal right of the workmen working in the minerva mills are infringed, a prayer for writ of mandamus is legally unsustainable. ( 29 ) THE respondents and 2 have not altered the service conditions of the workmen at minerva mills for issue of a notice under Section 9-a of the Industrial Disputes Act. In view of the circumstances as discussed above, this writ petition is devoid of any merits and the same is hereby dismissed. Rule is discharged. No costs. R. Ramakrishna, j. 19-11-1991 after pronouncement of the Order, Sri S. Krishnaiah, learned counsel for the petitioner, has filed a memo to suspend the operation of the order for 5 days as the petitioner intends to prefer a writ appeal against the said order. Sri S. G. Sundaraswamy, learned senior counsel for respondents 1 and 2 has submitted that, there is no provision for suspending the judgment and in any case, there is no ground made out in the memo for suspending the operation of the order. This court 'after considering the issues arising in this case, both on law and facts, has passed this order dismissing the writ petition. In my considered view, there is absolutely no justification for suspending the order at this stage. This court 'after considering the issues arising in this case, both on law and facts, has passed this order dismissing the writ petition. In my considered view, there is absolutely no justification for suspending the order at this stage. Hence the memo filed by the learned counsel is hereby rejected. --- *** --- .