Kudremukh Employees’ Union … vs The Union Of India on 13 October, 2009

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IN THE HIGE COURT 0F'   A 

mrmn THIS THE 13:12 Daft)?  _(:)Cj'I' C)B' ER; 7 

BEFGRE       %
THE 1~:o1~rBLE mR.msTI¢E:._mm  §jEDnY
WRIT PETITI0:'i I{o. :33 é);_£;-' 2n;jt38 gsjkxém)

BEFWEEN

KUDREMUKH " EM ¥?.£.;§jf)Y§r1}i2_§3' --V:}N's"c>~:sr {R¥§3('}D. _)
(A TRADE UR1939_.z1*E{3-§»sfrz'3i§2F,1;:~~:;;N};:ER THE
i'NE[}£1NjTRAIf)i¥3_ 'U§s';i;Q:~:3._A{__.* 3' A 
HAVING ms? £Z3+F£}'¥C}§7;4 A?  .
:«;SRsvrI=Bu:;:..::;zNx:;T';. ..Lm~z'-1:' Hausa
H§}'_.L R(;}'AD_,. MAN'GALO}'€IE*§ ..5::r'3 30:
:3 K 1:>:s'z'1~e;(:?, RE-13.3? §'TS
ASSISTANT 'GENERAL 'SEEERETARY.

5' " F.  .. '  P{3"I'1'I'§{)Ni¥3R

 €;;¥"f%x§_:j'g:}::3;3ARA<3 £55 051,;

1 A  *1*:~§;-¢:~E; r§:'1*:;N cw iixzijm
mp. BY '1'Hf3; SECRI§"E"ARY TO
GC-rvERNMENT

 " *-.._MINEE5"i"'R¥ ms S'i"'EE':£,-
 ?.;i{}Y€){§ BHAVAN

"WW DELHI --- 11:1: 01:.

  KUQKEMUKH n~:<;3r~2 ems: company

LEMITED, HAV£NG §TS i~§I3LPs{) OFVICEJ
AT 1! BLGCK, KORAMANGALA
BANGALORE «M 34 f L

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¥?€E§P.BY ITS CBAIRMAN -~ CUM
MANEGING DEREUFOR.

(BY SR} U'f*€'f~££ KRISHNAN M, ADV F(JZ)I«? Ri}._ 

 §§§'s3.P0?§:3;E:rz'rS , V' V 

(BY SR}. K I{AS'I"UR¥, Sr. COUNSEL;:.AE§V'A3?3'{)F<'.R2    

FOR KASTURI A/S)

'm1s PE§'I'i'E'£{)I*J mm) t;:--«5f§;:ER AI%~';'_:cL.:i:.= 2':.:6 éz. 227

09" THE {3()FsES'}'I'f'U'I'i()N 09* 1N':3:A--.,PRAY':m:; $0.? QUASH
THE ADV'ER'TISEMEN':':"§?UBL£S¥iE.{j» 1§;.3*rHE NEW INMAN
EXPRESS" i)A'i'E{) 24.:wj3 1as'sL§'1is:L)"~-£32!  KUDREMUKH
ERON ORE COMPANY £,IMi_TE:D--,V1vJ:~1_x;;,*i-E,'r'1?;f;«:§:s:' .1_1:§G ft}>1¥z"i$'(;i2"'PRL.m::ARING (3.
(mos?) Tags 135$, .-'1;*;;g4.g:.<_i:m§'1'-- M5913: THE FGLLOWING:

 y%f%n§r¢n_:2:_13.
'1"h§€: Urxion claiming to espouse

the {gauge if-» ¥;}":€  ezizployaes of U33 2110' responcierm

iron Ore ijiompazzy, aggieved by the

Ai:t€iV!E?5{'iiS€,%ff;(%§,I1fV:'§EJVi;ibIiSI'lffd in the New Indian Express dt.

 _ 24.3';'--£30{}:8 iinnexurewfl and the Jab Speciiieafiazl

 . f%io£;;fiCaii9:n dated nil, A;1m=:xure~C, has p2"es&:1t.ed thia

  

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2. Ac(:o1*(;iir1.g to the petitioner the Apex c0§.11?t§:' iififis

(i{3CiSi()I1 on 30. i(}.i£IO{)2 ordered the trloefiérei *

mining operations in the K11{iI'€I}]lL§{h' irefl ('3i'::..'Ivc3c3i;:1.1;§;arIj¢%V V

w.(:.f.1.1.:2(')()6, as a Conseqmenix: "'red'z1<f§€.. rim"

power', the Company iI0a't::VdV_a §6l:.;I1ta1*y: 'z"'r::"ti':'t*:1:§1:':n$:"

S(2h€'Ifl@, Wlnence sevexfafi e1I1p£eS2éfeS"  opted
fbr voluntary re£iren1e i§L:V;5e;.:%{'}.t;;:;£§§1?;§--(?on1pan5,', it
is stated, mazif:  WV Vt"V;o":Ei'1e appropriate
Govemunergt'    ciose down the

estab£i:shIneIfij "a*1é'<:0'-._fer11'1ifiat.e the services of 7 32

woI'kInt=:r1f.$H;;g;1(3j§;eés' ozgfififs 1'*r3I_is.

'A    VAI:-.ié'--~--t1*1e afilegatiorx of the petitioner that wh€:I1

Lii1é cozfip éi:i3y';Eié .about to be closed', the Chairman and

-- Manézgfrzg fiirector issued an advertisement invifing

 .:L»a§)piés;:3t:i§):1_s fez' recrxfitxnent to certain tsp posts

-   higher salary and emaizmzents and as the said

" .§if3'§.cer is iiiiely to retire an 3{}.~<$.2(){)8, w.iI':h. undue haste

is trying to make: a.ppoi1'1tHm;r1't:s to the said posts, of

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persons of his choice. It is the further ai£ega;:iQi3.VVijI;L:4 V.

petitioner that appoinulwnts, if made, wo1iid oC_cansi011..T_ 

additional burden 0:1 the  

leading to the W()I'k;II1€Z1  _em1§lQ§.}ées 

Wages out of the reserve fund . "=
4. The petitioii ._op;§OS£$<j;  sfié1tén1€nt cf
0bjE:{:ti()I}.S d£. 29V.5.20{)§5V_(fii'.:I}f:V i;i_né"':'éS},5Q;1{ient-conlpany

irxter aiia, at  S_<ién3§i:ig f§r;c~"aiiegatioz1s of the

petitj_on:;-I"Tvsg1:9A1{ii. '  th¢'~--.¢¢mpmi}; despite the ;m;i.ni.ng
aCtiVity"".'h3:%i1"1g:  hconfinues to function by

prodL1cing: =.  peilets aricl pig iron.

 v  1:0 ¥Iié"r@i:-..por1den1: instead of procuring iron

 'g):n4 'if,S'~ §}:x,i:0.t:s which have since D6611 Closed, the

 .  p_r§3k:ures them fmm others Zike NMDC

 .,(N'atioz:~.aui'[. Minera}. Ifievelopmem: Corporation) etc. in

  ' 'a_.:i(:iL;iHi':i_0:1, it is stated that 31} empiajiees are paifi full

  35.1313; inckzding parka, mining allowance eventllough

 the cempany is 110': mvolved in mailing activity and that

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the e:xper1<ti§mre to an extent of Rs.5{) crores per'

{mm out of the profits of the company and  

Reserve Fund. At paragraph '2'  V

advertisements inviting applicatfi'0;'§s_V for  "  ~_

Genera; Mamager/Acid]. Gefie:§§j3v~%Maiiager%%g::o:£;:fi'ér¢ia;); ''

General Manager/Adei§.__ {,}€'?;i"1'{§'§'I'i:ZQ':4Nl'2)¥1ag€I "(§)éf'SO{lI}€l)
and Canxparly Secretaxfv 'fiat in securing
suitable ca:}.dit:1g£'_i:es   'béiéig pubiic sector

underta'k§:ig V.  '--élidfierfisement in leading

3:1ewspapers.1 A' far) ..V;§aragf;qfq1;\ 9, it is stated that ihc':
Compaxlji v.h.?3.s Sevtiriaj €${;)_éé;::isi<)n programs and projects

Whictfifi 'i31cIude:"~s1_ g'l£)bail tender and therefore, there is a

;f1ec_cwssif3; '::3 have the services of the pemons capable of

%i;:taifi;1«ir1'gTi;eV__:Ef;'iiit0 fha pests advertised.

3- Having hazard the laaxfied 00111236} far the

   and perusefi. the pieadings, the questicm for

   décisiozz making is, whether the pvetit:i<}11sr's have locus»

 stancii is questieitt maiters reiating to creation or

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aiaoiition of posts, f0rma1:ioI1 and s;t:'1:ct;11z'in'g-,j or

restrucmring of cadres prescribing the sour:;.c:__'c:r :

of recmlitmem, notiiicatiorz, criteria of sc5'i'3{:t;ik:)I1,n the _ "

€V3111atiOI1, etc. in the respondeflt. ni31':ag:3H1'eI";_f. 2   'V

6. Stfiiice it to st:i:ti~-tha{"- in -vsimilar * %'

circmnstances, the 0I}servat_i()fis.__<.:f_»the' Apex in

Union of Inéia --v-  i"'I'1fftl1}:4:'».circtlmstances,

is apyositez

"3'"£'A~.--'Tv   flW}'fh--'i£h4is aspect of the
case, -.we §r:€:::';sids:§*'*i§i"n.e::(§:ssa1"y to reiterate the
settIc:<;i 1€:g'a}..  matiters relating to
¢r€aTj,ofi :§i1<:'iwab(3'!itiE§.11 of posts, forxnafiori and

._iiéfirg#364:.1r%:":;g/'rs;-3£";*:*V:1ct1;ri11g af cadres,

 --» _;j;1'e§t:1:'iE3:ii'12c;_ the s0z1r{:e/mode of I'{iCI'"L1itII1CI}ii
"~T'._&i'17ci4T""_~gL{§ii§i(:ati0ns, criteria of $eiec:t.i0I:1,

A '---.4¢va,¥.u3.fia'3f; of service racords of the employees

V fa}; _ 1-Within the exciusive dornajn of the
AA  "éi:I;:1p£oyer, Wiflat steps shauid ha iaken for
 iiiaprovirig efficiency of the admini.strai:i0n is
aise the preserve cf the €:':II1p§{}_'§?€I". The power

of judicial raview can be exercised in such

111a.I;":ers carniy if it is shown that the action of



the empioyer is (:<:nf1fra1*y to any co:1stit.11fio1}a§£_""»T
or statutory pmvision or is pateiltky  
or is vitiated due to rnala fides. '1'he:. :'(:(31;zTff1:'L-"' 3

cannot sit in appeal ever th§:..ju_dg1néfit"   

employer and ordain that a:apa1ftié}j1lfir_  A  .'

filled by direst I'€CI'1iitII34E'«E_}t Qrprdmotiori.  by  A.
transfer. The court has V-roie  
the Ii1(f':U£1(}Ci£)i(i}$"  'of  '()1--- ...,.3K£-1y:i1"1g
comparative evaI{1.=r;iic:I)i~_L   .f:"1e,»I°it of the
candidates. V The '"_®1J,rt.v'V__Vcz§;1fiQ§'.'.ié§:;,1$gge:st the
Iiraamtzer §I;I~fWhfi_(:3h§  shoulé
strL:ct1§111"c"  __cadres for the
§)1E._:I'}Z)()'S'€'.','1 A'   efiiciency of

E1dI¥1iI1iSt}'Eifi(§}'?;". _ ?' ~ ., __ 

5?; _ Hévifig' 'régéfd to the well settled position sf

 £11 "' i;'r2é" fgicts and circ1m1s:ances; supra, it is not

i::~pe1: for. i:h e ;.i§ctitioner--Unio;1 espousing the cause of its

mcmbexjs  employees of the izmi respondent, to