Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Industrial Disputes Act 1947 s.3(j): |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Labour Laws: Industrial Disputes Act, 1947; s.3(f):Workmen working under a project sponsored by a State - Corporation Transferring of project to another company - Non-payment of salaries - Industrial dispute - Labour Court held, no material available on record to show that project transferred to the company and it was incumbent upon the Corporation either to terminate services of workmen and give terminal benefits and pay salaries to them till such decision taken-Challenged by both parties-Single Judge held since workmen in question not employees of the Corporation, it was not bound to give them benefit as awarded by Labour Court - Appeal dismissed by Division Bench of High Court - On appeal, Held: Both the Corporation and the Company have separate independent existence having independent Board of Directors - State Corporation a nodal agency/promotional organization promoting company at initial stages - Thus, it cannot be called as owner of the establishment, a company - Hence, judgment of High Court cannot be faulted - However, employees/Unions could make claim for arrears of salaries or claim due from Company - Companies Act, 1956. Words and Phrases: 'owner ' - Meaning of in the context of Industrial Disputes Act, 1947.Appellant, a registered Trade Union raised a dispute regarding nonpayment of salaries to its members employed in a Project under M/s Industrial papers (ASSAM) Ltd., a company by Assam Industrial Development Corporation Ltd. (AIDC) after October 1998 on the plea that the members of the appellant-Union were not the employees of the Corporation but of the Company. The appropriate Govt. referred the following issues to the Labour Court for adjudication: "1. As to whether the management of the Corporation is justified to deny as owner of the project of the company, though they have signed an agreement with a contractor as 'owner' of the project; 2. As to whether the Corporation is justified to deny to take the responsibility of company's employees, though the employees were appointed by the Corporation;3. As to whether the management of AIDC is justified by not absorbing or engaging the employees of the Company, in their other Promoted industries or give them salary regularly though they have failed to install or run the Company; 4. If not, then as to whether the affected employees are entitled for either regular monthly salary from the management or absorption in the other Industrial Units promoted by the Corporation.5. And as to whether the Corporation should not recruit or appoint new employees, to say in their Promoted Industries until and unless the employees of the Industrial paper are engaged or absorbed by the Management."Labour Court held that there was no material on record to show that the Corporation had transferred the project to the Company in question, at any point of time; that the Issue is redundant as members of the Union do not come within the categories of posts advertised; that it was not incumbent on the Corporation to absorb members of the appellant union; that the Company could not be run, it was incumbent for the Corporation to terminate the services of the members of the appellant-Union giving them terminal benefits according to relevant industrial and labour laws; and that until that was done the Corporation was obliged to give the members of the appellant union regular salaries. Aggrieved, both the appellant and the Corporation filed writ petitions. The writ petitions filed by the Corporation were allowed and one filed by the appellant was dismissed by the Single Judge of the High Court. Hence the present appeal.Appellant-employees Union contended that the Labour Court had taken a practical and pragmatic view; and that the Division Bench of the High Court should not have interfered with the findings recorded.Respondent-Corporation submitted that in view of materials placed on record, both Single Judge and Division Bench of the High.Court were justified in its conclusion and no interference is called for; that there is ample material on record to show that employment was for a specific project and on an expiry of that project the question of any claim to be appointed by the Company much less by the Corporation does not arise. |
Judge | Hon'ble Dr. Justice Arijit Pasayat |
Neutral Citation | 2007 INSC 24 |
Petitioner | Industrial Paper (assam) Ltd. Employees Union |
Respondent | Management Assam Industrial Dev. Corpn. Ltd. |
SCR | [2007] 1 S.C.R. 661 |
Judgement Date | 2007-01-10 |
Case Number | 7990 |
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