Research › Search › Judgment

Himachal Pradesh High Court · body

2012 DIGILAW 999 (HP)

Samtal Workers Union v. State of H. P.

2012-12-18

KURIAN JOSEPH, SANJAY KAROL

body2012
JUDGMENT Sanjay Karol, Judge (Oral) Shri R.P. Verma, Factory Manager of Samtal Color Ltd., Shri Vishwajeet Tyagi, Head HR of Samtel Avionics, from the management and Shri Gian Chand Chaudhary (General Secretary), Shri Ram Chand (Vice President), Shri Jagat Ram (Legal Advisor), Smt. Indu Devi (Member) and Smt. Surekha Kanwar (Member) from the Samtel Workers Union, Parwanoo, are present in Court. 2. Issue raised in these petitions essentially pertains to the grievances of the workmen of M/s Samtal Color Ltd and M/s Samtel Electron Devices Ltd. 3. An agreement was arrived at between the management and the workmen, terms of which could not be executed, apparently for the reason that the management was passing through financial crises. The workmen raised a dispute and vide order dated 19.4.2012, the Labour Commissioner asked the Management to explain as to why proceedings be not initiated and the dues of the workmen recovered as arrears of land revenue under Section 33(C)(1) of the Industrial Disputes Act, 1947. Pursuant thereto, a Recovery Certificate dated 13.5.2012 was also issued by the Labour Commissioner, Himachal Pradesh. The Show Cause Notice dated 19.4.2012 (Annexure P-7) and Recovery Certificate (Annexure P-9) were assailed by the management in CWP No.4159 of 2012. 4. Representation made by the union of the workmen was treated as a Public Interest Litigation and notice was issued to the management. The same was registered as CWPIL No.11 of 2012. This Court had appointed Shri Jivender Katoch as Amicus Curiae to assist in the matter. 5. Taking a holistic view, and more particularly the fact that the management was passing through acute financial crises, representatives of the parties were asked to sit with the learned Amicus Curiae and make an endeavour to arrive at an out of Court settlement. In this regard a detailed interim order was also passed on 23.6.2012. Certain workmen working in the units set up by the management at Parwanoo, within the State of Himachal Pradesh, were allowed to join at Kota (Rajasthan), where another unit of the management was being run, subject to their having lien over their job at the Parwanoo units. 6. During the pendency of these petitions, the management of the Company proposed to close down the units at Parwanoo and as such initiated appropriate proceedings before the competent authority. 6. During the pendency of these petitions, the management of the Company proposed to close down the units at Parwanoo and as such initiated appropriate proceedings before the competent authority. However, vide order dated 3.11.2012, copy of which is placed on record, the Labour Commissioner, Himachal Pradesh, declined permission to close down the establishment of the Management, only on the ground that the management had failed to disburse the legitimate dues to the workmen. 7. Thereafter, representatives of the Management and the union had several meetings in the presence of the learned Amicus Curiae and the learned counsel representing the management. 8. It is heartening to note that the management and the union of the workmen have now arrived at a settlement, which is taken on record. Resolution passed by the union is also on record. In terms of the said settlement, the management has agreed to the terms which, for the sake of reference, are reproduced as under: “1. That the Closure of Samtel Color Limted, Parwanoo and Samtel Electron Devices (SCL and SED) would take place w.e.f. 01.01.2013 and as such, all the benefits of Closure under Section 25(O) of the Industrial Disputes Act, 1947, will be made available to the Workmen of both the units (who were on muster roll of Company as on 01.12.2011), as per provision of I.D. Act, 1947. 2. That the management of Samtel Color Limited & Samtel Electron Devices (SCL and SED) agrees to pay all their statutory dues under the EPF and MP Act and 1952, ESI Act, 1948, and will take all effective steps in this regard to help workmen to claim their dues. 3. That the management of Samtel Color Limited & Samtel Electron Devices (SCL and SED) agrees to pay outstanding wages of workmen w.e.f. 01.12.2011 upto 31.12.2012 along with the closure benefits. 4. That the management of Samtel Color Limited, Samtel Electron Devices (SCL and SED) and Samtel Workers Union, Parwanoo agrees to withdraw all the cases against each other pending in courts and tribunals once the settlement is finalized. However, the same will not be applicable to individual cases filed against each other. 5. 4. That the management of Samtel Color Limited, Samtel Electron Devices (SCL and SED) and Samtel Workers Union, Parwanoo agrees to withdraw all the cases against each other pending in courts and tribunals once the settlement is finalized. However, the same will not be applicable to individual cases filed against each other. 5. That the management of Samtel Color Limited, Parwanoo & Samtel Electron Devices (SCL and SED), Parwanoo further agrees to pay all the outstanding dues and closure benefits as per section 25 O of I D Act 1947 to workmen on or before 30.04.2013 and in case of any default, action will be taken against the occupier, as per law. 6. That the management of Samtel Color Limited & Samtel Electron Devices (SCL and SED) agrees to pay outstanding amount of gratuity due as per Gratuity Act 1972 along with the closure benefits. 7. That it has agreed between the workmen and the management of Samtel Color Limited & Samtel Electron Devices (SCL and SED) that the workers will have no objection for selling of the industrial undertaking/company assets and it’s stock etc for payment of the closure benefits and outstanding wages, gratuity and payment of banks loan. 8. That the parties undertake to act in good faith with respect to each other’s rights under this MOU and to adopt all reasonable measures to ensure the realization of the objective of this MOU.” 9. The memorandum of understanding is taken on record and the undertaking of the parties to comply with the terms of the understanding, in letter and spirit, are accepted and taken on record. The parties shall be bound with the same. The parties shall take all steps for facilitating fulfillment of these terms and conditions. It is seen that the stocks/buildings of the management at the units at Parwanoo have been hypothecated/ mortgaged with various financial institutions. Subject to their rights, these financial institutions shall facilitate compliance of the terms agreed upon between the parties. We are of the view that the terms entered into between the parties, in terms of the agreement, are just, fair and in the best of their interests of all and within the framework of law. 10. The management has agreed to disburse all the statutory dues to the workmen on or before 30.4.2013. 11. We are of the view that the terms entered into between the parties, in terms of the agreement, are just, fair and in the best of their interests of all and within the framework of law. 10. The management has agreed to disburse all the statutory dues to the workmen on or before 30.4.2013. 11. It is also seen that the management and the workmen have resolved all issues raised in these petitions. As such, the Show Cause Notice dated 19.4.2012 (Annexure P-7) and the Recovery Certificate dated 13.5.2012 (Annexure P-9), implementation of which was stayed by this Court, stand quashed. Also, the order dated 3.11.2012, passed by the Labour Commissioner, Himachal Pradesh, is modified to the extent that the units of the management located at Parwanoo shall be deemed to be closed with effect from 1.1.2013. 12. If so required, liberty is granted to either of the parties to approach this Court for appropriate clarification. 13. The parties agree that any other issue pertaining to this settlement will be sorted out only before this Court. 14. In view of the settlement arrived at between the parties, the proceedings initiated by the Labour Inspector in the Court of Judicial Magistrate 1st Class, for not complying with the settlement, which is subject matter of CWP No.4159 of 2012, are quashed. 15. It is made clear that with the passing of this order, all proceedings pending between the union and the management under the Industrial Disputes Act, 1947 shall be deemed to have been settled. It is clarified that individual cases, individually filed by the workmen, shall be independently settled by the management, if possible. 16. We place on record, with appreciation, the efforts put in by the learned Amicus Curiae Mr. Jivender Katoch and more particularly Shri Rahul Mahajan, learned counsel appearing for the management, for rendering their valuable assistance and helping the parties to arrive at the aforesaid settlement. 17. Writ petitions are disposed of in the aforesaid terms, so also the pending application, if any. For compliance, list the matters on 25.3.2013.