LOTTE ELECTRONICS PVT. LTD. v. STATE OF UTTARAKHAND
2015-02-27
ALOK SINGH
body2015
DigiLaw.ai
JUDGMENT : Hon’ble Alok Singh, J 1. In all these writ petitions common questions of law and fact are involved, therefore, with the consent of learned counsel for the parties, all the writ petitions are taken up together for hearing and are being disposed of by this common judgment. 2. Workmen made complaint to the Deputy Labour Commissioner that undertaking has been closed down illegally without prior approval of the State Government, as required under Section 6-W of the U.P. Industrial Disputes Act, 1947 and all the workmen were illegally retrenched, therefore, compensation should be awarded in favour of the workmen. Learned Deputy Labour Commissioner, Haldwani while exercising powers under 6-H (1) of the U.P. Industrial Disputes Act, 1947 was pleased to pass orders impugned directing the employer / undertaking to pay compensation to the workmen. Feeling aggrieved, employers / undertakings have approached this Court by way of present writ petitions. 3. Sections 6-H and 6-W of the U.P. Industrial Disputes Act, 1947 read as under: “Section 6H - Recovery of money due from an employer: (1) Where any money is due to a workman from an employer under the provisions of Section 6-J to 6-R or under a settlement or award, or under an award given by an adjudicator or the State Industrial Tribunal appointed or constituted under this Act, before the commencement of the Uttar Pradesh Industrial Disputes (Amendment and Miscellaneous Provisions) Act, 1956, the workman may, without prejudice to any other mode of recovery, make an application to the State Government for the recovery of the money due to him, and if the State Government is satisfied that any money is so due, it shall issue a certificate for that amount to the Collector who shall proceed to recover the same as if it were an arrear of land revenue. (2) Where any workman is entitled to receive from the employer any benefit which is capable of being computed in terms of money, the amount at which such benefit should be computed may, subject to any rules that may be made under this Act, be determined by such Labour Court as may be specified in this behalf by the State Government, and the amount so determined may be recovered as provided for in sub-section (1).
(3) For the purposes of computing the money value of a benefit, the Labour Court may, if it so thinks fit, appoint a Commissioner in the prescribed manner who shall, after taking such evidence as may be necessary, submit a report to the Labour Court and the Labour Court shall determine the amount after considering the report of the Commissioner and other circumstances of the case. Section 6W - Procedure for closing down an undertaking: (1) An employer who intends to close down an undertaking of an industrial establishment shall, in the prescribed manner, apply, for prior permission, at least ninety days before the date on which the intended closure is to become effective, to the State Government, stating clearly the reasons for the intended closure of the undertaking and a copy of such application shall also be served simultaneously on the representatives of the workmen in the prescribed manner: Provided that nothing in this sub-section shall apply to an undertaking set up for the construction of buildings, bridges, roads, canals, dams or for other construction work. (2) Where an application for permission has been made under sub-section (1), the State Government, after making such enquiry as it thinks fit and after giving a reasonable opportunity of being heard to the employer, the workmen and the persons interested in such closure may, having regard to the genuineness and adequacy of the reasons stated by the employer, the interests of the general public and all other relevant factors, by order and for reasons to be recorded in writing, grant or refuse to grant such permission and a copy of such order shall be communicated to the employer and the workmen. (3) Where an application has been made under sub-section (1) and the State Government does not communicate the order granting or refusing to grant permission to the employer within a period of sixty days from the date on which such application is made, the permission applied for shall be deemed to have been granted on the expiration of the said period of sixty days. (4) An order of the State Government granting or refusing to grant permission shall, subject to the provisions of sub-section (5), be final and binding on all the parties and shall remain in force for one year from the date of such order.
(4) An order of the State Government granting or refusing to grant permission shall, subject to the provisions of sub-section (5), be final and binding on all the parties and shall remain in force for one year from the date of such order. (5) The State Government may, either on its own motion or on the application made by the employer or any workman, review its order granting or refusing to grant permission under sub-section (2) or refer the matter to a Tribunal for adjudication : Provided that where a reference has been made to a Tribunal under this sub-section, it shall pass an award within a period of thirty days from the date of such reference. (6) Where no application for permission under sub-section (1) is made within the period specified therein, or where the permission for closure has been refused, the closure of the undertaking shall be deemed to be illegal from the date of closure and the workmen shall be entitled to all the benefits under any law for the time being in force as if the undertaking had not been closed down. (7) Notwithstanding anything contained in the foregoing provisions of this section, the State Government may, if it is satisfied that owing to such exceptional circumstances as accident in the undertaking or death of the employer or the like it is necessary to do so, by order, direct that the provisions of sub-section (1) shall not apply in relation to such period as may be specified in the order. (8) Where an undertaking is permitted to be closed down under subsection (2) or where permission for closure is deemed to be granted under subsection (3), every workman who is employed in that undertaking immediately before the date of application for permission under this section, shall be entitled to receive compensation which shall be equivalent to fifteen day’s average - pay for every completed year of continuous service or any part thereof in excess of six months.” 4. A combined reading of sub-Sections 6 and 8 of Section 6W would reveal that if closure of undertaking is found to be illegal, workman shall be entitled to all the benefits under any law for the time being in force, as if the undertaking had not been closed down.
A combined reading of sub-Sections 6 and 8 of Section 6W would reveal that if closure of undertaking is found to be illegal, workman shall be entitled to all the benefits under any law for the time being in force, as if the undertaking had not been closed down. However, if undertaking is permitted to be closed down or closure is found to be legal, workman shall be entitled to receive compensation, which shall be equivalent to 15 days’ average pay for every completed year of continuous service or any part thereof in excess of six months. 5. In the present case, findings should have been recorded under sub-Sections 6 or 8 of Section 6-W of the Industrial Disputes Act only by the Labour Court and not by the Deputy Labour Commissioner. 6. A bare perusal of Section 6-H would reveal that if money is found due to a workman from the employer under the provisions of Sections 6-J to 6-R or under a settlement or award, or under an award given by a adjudicator or the State Industrial Tribunal, without prejudice to any other mode of recovery, State Government may issue direction for payment of such money under the award or decree or settlement. 7. In the present case, no award has been passed by the competent Labour Court or Tribunal to the effect, as to whether closure or lock out of the undertaking was legal or illegal or as to whether what compensation should be paid to the workmen, therefore, learned Deputy Labour Commissioner was lacking jurisdiction to award compensation against the employer in favour of the workmen. 8. Consequently, all the writ petitions succeed and are allowed. Impugned orders passed by the Deputy Labour Commissioner and citation issue pursuant thereto are quashed. However, workmen shall be at liberty to approach appropriate legal forum for redressal of their grievance. 9. Let copy of this judgment be placed in each connected petition.