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2001 DIGILAW 757 (JHR)

Hindustan Copper Ltd. v. Government Of India, Ministry Of Labour

2001-11-20

M.Y.EQBAL

body2001
ORDER The Court 1. The petitioner M/s. Hindustan Copper Ltd. has challenged the order dated 18th February, 2000 passed by the Ministry of Labour, Central Government. New Delhi in purported exercise of power under Clause (d) of Sub-section (1) and Sub-section (2-A) of Section 10 of the Industrial Disputes Act. 1947. referring the dispute for adjudication to the Central Government, Industrial Tribunal cum Labour Court. Dhanbad. 2. The petitioners rase, inter alia, is that the Government of India, Ministry of Finance. constituted a committee called Chelliah Committee, which submitted report in 1993 and recommended that the petitioner-Company should take further measure to improve its cost effectiveness by closing down uneconomical underground mines in the Eastern sector. It is stated that the scope of substantive increase in the indigenous production appears to be limited due to depleting ore resources and poor quality of ore inspite of certain measures taken by the petitioner for expansion and modernisation to increase domestic production. The company also took furl her measure to improve its cost effectiveness by closing down uneconomical underground mines in the Eastern sector. In pursuance of the aforesaid Government policy and scheme the petitioner sought for permission to close down Musaboni mines since 1997 under Section 25O of the Industrial Disputes Act. 1947 (in short the Act) and the Government of India, after following the procedure, passed final order on 1st October, 1997 and granted permission for closing down the mines. The petitioners further case is that the respondent No. 3, namely, Copper Kamgar Union, raised an industrial dispute on 26.2.1999 on the ground that the petitioner-company is contemplating to close its mines, namely, Pathargora and Kendadih. On receipt of such dispute the Regional Labour Commissioner (Central). Government of India, Ministry of Labour, issued notices to the parties for conciliation. Pursuant to that notice the petitioner submitted its reply justifying its decision to close down the aforementioned two mines. It is stated that the conciliation proceeding ended in failure and consequently petitioner- company filed an ap- plication under Section 25O of the said Act for permission to close down the Pathargora and Kendadih mines. The Director. Ministry of Labour, heard the representatives of the management and the union and finally passed order dated 23rd December. 1999 under Section 25O of the Act granting permission for closure of the two mines subject to certain terms and conditions. The Director. Ministry of Labour, heard the representatives of the management and the union and finally passed order dated 23rd December. 1999 under Section 25O of the Act granting permission for closure of the two mines subject to certain terms and conditions. The petitioners further case is that after final order was passed under Section 25O of the Act the respondents had no authority or Jurisdiction to entertain a dispute and refer the same for adjudication in purported exercise of power under Section 10 of the said Act. 3. In the counter affidavit filed by the respondent Nos. 1 and 5, Government of India, Ministry of Labour, it is stated that even if an order granting permission under Section 25O was taken by the appropriate Government, the issues distantly connected with it could be the subject matter of the dispute. It is stated that the management of Hindustan Copper Ltd, has closed their mines before obtaining permission of the Government under the aforesaid provision. and the issue referred for adjudication is only as to whether the action of the petitioner in suspending production of mineral in August, 1999 in Pathargora and Kondadih Mines amounts to closure of mines. The other related issue was regarding denial of financial dues to the miners. Respondents further case is that if the petitioners had closed their mines before the permission granted to them under Section 25O, then it is certainly a matter of industrial dispute and, therefore, Government has rightly referred the issue for adjudication under Section 10 of the said Act. 4. The separate counter affidavits have been filed by the respondent Nos. 3 and 4 namely the Copper. Kamgar Union and Musabani Mines Labour Union respectively. In the counter affidavit filed by the respondent No. 3, it is stated that granting permission under Section 25O of the Act by the appropriate Government is not connected with the dispute referred for adjudication. It is further stated that the terms of reference is not for deciding the dispute as to whether permission granted under Section 25O of the Act by the appropriate Government is legal and proper rather it is connected with the industrial dispute between the parties so raised by the Union. 5. Mr. P.K. Sinha, learned Sr. It is further stated that the terms of reference is not for deciding the dispute as to whether permission granted under Section 25O of the Act by the appropriate Government is legal and proper rather it is connected with the industrial dispute between the parties so raised by the Union. 5. Mr. P.K. Sinha, learned Sr. Counsel appearing for the petitioners, assailed the impugned order of reference as being illegal and wholly without jurisdiction in view of the permission granted by the Ministry of Labour under Section 25O of the said Act. Learned counsel relied upon the decision of the Supreme Court in the ease of V.G. Works Ltd. v. M.G. Kamgar Union. AIR 1996 SC 1282 and in the case of Hlndalco Industries Ltd. v. Union of India, (1996) 2 PLJR 520 . 6. Before appreciating the rival contention of the learned counsels for the parties, it would be useful to refer the terms of reference made by the Government under Section 10 of the said Act. The terms of reference reads as under :-- "Whether the action of the management of Hindustan Copper Ltd. Ghatsila in suspending the production of mineral from August. 1999 in Pathergora and Kendadih Mines amounts to closure of mines and whether this is fair, legal and justified? Whether the action of the management of Hindustan Copper Ltd., Ghasila in denying the monetary dues of D.A., L.T.C., lenve encashment and amenities of health, canteen, electricity and water supply etc. to workmen employed in Patbarogda and Kendadih Mines is fair, legal and justified? If not, to what relief the concerned workmen arc entitled." 7. As noticed above, the application filed by the petitioner for grant of permission for closure of Mines under Section 25O of the said Act was allowed on 25.12.1999, a copy of the said order has been annexed as Annexure 7 to the writ application. The operative portion of the said order reads as under :-- "Taking into account the arguments advanced by both sides, the techno- economic parameters of mining operations and the present day realities of global competition there is justification for the management of H.C.L. to close down some loss making mines and restructure others for better returns on investment. The operative portion of the said order reads as under :-- "Taking into account the arguments advanced by both sides, the techno- economic parameters of mining operations and the present day realities of global competition there is justification for the management of H.C.L. to close down some loss making mines and restructure others for better returns on investment. Continuation of operations in unsustainable activities is expected to not only lead to heavy drain on scarce economic resources but to also jeopardise the very existence of the Company endangering the employment of workers in viable mines. The workers of Pathargorah and Keridadih should be given the option of an attractive VRS package, the terms and conditions of which should be such that it compensates them for loss of employment. In this regard the offer of the management to give retirement compensation which would be more than three times the retrenchment compensation should be considered favourably. In addition, the workers should be paid arrears of wages and salaries, provident fund dues, gratuity and all other statutory dues owed to them. They should be entitled to retain their quarters under terms and conditions worked out with the management, They alongwith their spouse should be entitled to medical benefit at the companys hospital. The wards of voluntary retired employees should be allowed to study in schools at the projects at par with the existing employees wards. The management may give free counseling to the voluntary retired employees for prudent and safe investment of their terminal benefits so that they can get the maximum possible returns on their investments. Taking into account the need in public interest to allow restructuring of PSUs in order to promote production and productivity and at the some time to protect the long term interest of workers through justice, equity and fair-play, permission of the Government is hereby given for closure of Pathargorah and Kendadih mines of Hindustan Copper Ltd. w.e.f. 31.1.2000 subject to the above conditions." 8. From bare perusal of the aforesaid order, it is manifest that the permission for closure of the mines was granted by the respondents with effect from 31.1.2000 subject to the condition that the employees will get their retirement compensation, arrears of wages and salary, provident fund dues, gratuity and other statutory dues. From bare perusal of the aforesaid order, it is manifest that the permission for closure of the mines was granted by the respondents with effect from 31.1.2000 subject to the condition that the employees will get their retirement compensation, arrears of wages and salary, provident fund dues, gratuity and other statutory dues. The workers shall also be entitled to retain their quarters under the terms and conditions worked out by the management and they shall also be entitled to medical benefit and free counseling for safe investment of their terminal benefits so that they can get the maximum possible returns on their investments. 9. From perusal of the affidavits and after hearing the parties, it appears that undisputedly the petitioners closed their mines and suspended production of mineral in August. 1999. i.e., much before the hearing of the application of the petitioner under Section 25O of the said Act. Admittedly, the order under Section 25O of the said Act was passed on 23rd December, 1999 granting permission for closure of two mines with effect from 31-1.2000. The first part of the dispute ie., whether the action of the management in suspending the production of mineral from August. 1999 in the aforesaid two mines amounts to closure of mines and whether this is fair and justified, is not only a matter of dispute which has no connection with the issue of granting permission for closure of the mines with effect from 31.1.2000. The issues, therefore, sought to be referred by the appropriate Government has no connection with the grant of permission under Section 25O of the said Act. Similarly, the second part of the reference, i.c. whether the action of the management in denying monetary dues to the workmen in the two mines is fair and legal, also has no nexus with the order passed under Section 25O of the said Act. 10. In the case of V.G. Works Ltd.. (supra), the ratio decided by the Supreme Court, rather goes against the petitioners particularly in view of the facts of the instant case. 11. Similarly the decision of the Division Bench of the Patna High Court in Hindalco Industries case (supra) has no application at all in the instant case. 12. Having regard to the entire facts and circumstances of the case. 11. Similarly the decision of the Division Bench of the Patna High Court in Hindalco Industries case (supra) has no application at all in the instant case. 12. Having regard to the entire facts and circumstances of the case. I am of the opinion that disputes referred by the appropriate Government by the impugned notification cannot be held to be illegal merely because of the order granting permission for closure of the mines. The impugned order of reference, therefore, needs no interference. 13. For the reason aforesaid, there is no merit in this writ application, which is accordingly dismissed. 14. Application accordingly dismissed.