{"id":168706,"date":"2009-08-03T00:00:00","date_gmt":"2009-08-02T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/adarsh-gupta-vs-state-of-haryana-on-3-august-2009"},"modified":"2018-11-02T13:46:10","modified_gmt":"2018-11-02T08:16:10","slug":"adarsh-gupta-vs-state-of-haryana-on-3-august-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/adarsh-gupta-vs-state-of-haryana-on-3-august-2009","title":{"rendered":"Adarsh Gupta vs State Of Haryana on 3 August, 2009"},"content":{"rendered":"<div class=\"docsource_main\">Punjab-Haryana High Court<\/div>\n<div class=\"doc_title\">Adarsh Gupta vs State Of Haryana on 3 August, 2009<\/div>\n<pre>CWP No.2369 of 2009                              1\n\nIN THE HIGH COURT OF PUNJAB &amp; HARYANA, CHANDIGARH\n\n\n                                    CWP No.2369 of 2009\n                                    Date of decision August 3 , 2009\nAdarsh Gupta\n\n\n                                                 .......   Petitioner\n                               Versus\n\n\nState of Haryana, through Secretary Labour Department, Haryana,\nChandigarh and others\n\n\n                                                 ........ Respondents\n\n\nCORAM:            HON'BLE MR. JUSTICE K. KANNAN\n\n\nPresent:-         Mr. Sarjit Singh, Sr. Advocate with\n                  Mr. Vikas Singh, Advocate and\n            `     Mr. Jagdev Singh, Advocate\n                  for the petitioner.\n\n                  Mr. D. S. Nalwa, Additional Advocate\n                  General, Haryana.\n\n                        ****\n\n                  1.    Whether reporters of local newspapers may be\n                        allowed to see the judgment ? Yes\n                  2.    To be referred to the reporters or not? Yes\n                  3.    Whether the judgment should be reported in the\n                        digest? Yes\n\nK. Kannan, J.\n<\/pre>\n<p>I                 Scope:\n<\/p>\n<p>                  1.     The above writ petition and a batch of 70 other<\/p>\n<p>cases involve a common question, namely, the validity of the notices<\/p>\n<p>issued by the Government of Haryana through the Secretary to<\/p>\n<p>Government, Labour Department to two named individuals purporting to<\/p>\n<p>represent the Management as liable for prosecution under Section 25-U for<\/p>\n<p>violation of Section 25-T of the I. D. Act. The prosecution notices which<\/p>\n<p>are impugned in the writ petitions germinated from individual complaints of<br \/>\n<span class=\"hidden_text\"> CWP No.2369 of 2009                                 2<\/span><\/p>\n<p>about 70 workmen against the Management when they were served with<\/p>\n<p>orders of transfer from the place where, the factory was situate, namely, at<\/p>\n<p>Gharaunda     District Karnal to Phusgarh Road where, according to the<\/p>\n<p>workmen, no unit of factory had been as yet established. Mala fides of the<\/p>\n<p>action, according to the workmen were seen from the fact that they were<\/p>\n<p>deliberately transferred after their plea to the government to close down<\/p>\n<p>some units was turned down, to a place where there was not even a<\/p>\n<p>manufacturing unit and the orders issued by the Management to<\/p>\n<p>constituted &#8216;unfair labour practice&#8217;.\n<\/p>\n<p>                   2.     The Government had issued show cause notices<\/p>\n<p>to one Adesh Gupta , who was shown as &#8220;occupier&#8221; of the factory in<\/p>\n<p>relation to certain manufacturing units of the factory. Another person was<\/p>\n<p>Adarsh Gupta who had not been issued with any notice at all but the<\/p>\n<p>impugned orders had been issued against the above named two<\/p>\n<p>individuals as &#8216;occupiers&#8217; of the manufacturing units.       The Government<\/p>\n<p>received objections only from Adesh Gupta but still proceeded to issue the<\/p>\n<p>impugned orders. The impugned orders could be seen as stereo typed in<\/p>\n<p>that they say that in exercise of the powers conferred under Section 32 and<\/p>\n<p>34 of the Industrial Disputes Act, 1947 (hereinafter referred to as the &#8216;Act&#8217;).,<\/p>\n<p>the Governor of Haryana authorized the Labour Commissioner to lodge a<\/p>\n<p>complaint against the two named private individuals referred to above<\/p>\n<p>under Section 25-T read with Section 25-U of the Act in the Court of the<\/p>\n<p>Magistrate Ist class, Karnal.\n<\/p>\n<p>II                 Grounds of Challenge:\n<\/p>\n<p>                   3.     The notices are challenged in this batch of 70 writ<\/p>\n<p>petitions on common grounds viz. (i) The Government did not have any<\/p>\n<p>power to determine whether the particular act complained of constituted<\/p>\n<p>&#8216;unfair labour practice&#8217;. Without adjudication and finding by the Labour<\/p>\n<p>Court that the action complained of by the workmen against the<br \/>\n<span class=\"hidden_text\"> CWP No.2369 of 2009                                  3<\/span><\/p>\n<p>Management constitute unfair labour practice, the Government itself cannot<\/p>\n<p>arrive at such a conclusion and launch a proceeding; (ii) Adesh Gupta who<\/p>\n<p>is petitioner in several petitions had no doubt been served with show cause<\/p>\n<p>notices but the action taken by the Government deciding to launch a<\/p>\n<p>prosecution without considering the objections given by him that he was<\/p>\n<p>not an &#8220;occupier&#8221; of the Units from where some workmen had been<\/p>\n<p>transferred and without considering his objection that he had not<\/p>\n<p>transferred any workmen at all, was the result of a complete non-<\/p>\n<p>application of mind of the Government and hence vitiated. (iii) As regards<\/p>\n<p>Adarsh Gupta though he was a Director of the Company, no notice at all<\/p>\n<p>had been issued to him personally and the order without any proper notice<\/p>\n<p>constituted violation of principles of natural justice and hence not justified.<\/p>\n<p>(iv) The attempt to prosecute was an extraordinary power which could not<\/p>\n<p>be exercised in a cavalier fashion for alleged wrongs committed by the<\/p>\n<p>Company without ascertaining the actual personnel who was responsible<\/p>\n<p>for the decision made on behalf of the Company.\n<\/p>\n<p>III                Text of impugned order(s)<\/p>\n<p>                   The impugned order reads as thus:-\n<\/p>\n<p>                   &#8220;Whereas the management submitted the reply to the<br \/>\n                   above said show cause notice but the same was found<br \/>\n                   to be evasive as they did not explain the existence of<br \/>\n                   condition of work in any standing order or appointment<br \/>\n                   letter of any worker which provided for transferability of<br \/>\n                   any   worker to     any   other       location.   Besides   the<br \/>\n                   management also did not prove and explain the<br \/>\n                   existence of factory registered under the Factories Act,<br \/>\n                   1948 of a place to which the concerned worker was<br \/>\n                   transferred.      The management was also afforded<br \/>\n                   hearing on different dates but they failed to supplement<br \/>\n                   the submission already made in their written reply.\n<\/p>\n<p>                                  Whereas Sh. Adarsh Gupta is responsible<br \/>\n                   person being Occupier of the factory from which the<br \/>\n<span class=\"hidden_text\"> CWP No.2369 of 2009                                4<\/span><\/p>\n<p>                   concerned workman was transferred and he has<br \/>\n                   committed unfair labour practice within the meaning of<br \/>\n                   entry 7 of Vth Shedule to the Industrial Disputes Act,<br \/>\n                   1947 and is liable to be prosecuted under Section 25-U<br \/>\n                   for violation of Section 25-T of the above said Act.&#8221;<br \/>\nNote: (The respective orders in each one of the writ petitions incorporate<br \/>\nrespective name of the petitioners only and they are left out.)<\/p>\n<p>                   4.    It should be noted that the impugned orders<\/p>\n<p>themselves did not impose any penalty.        It is the first stage   taking a<\/p>\n<p>decision for setting criminal process in motion. At this stage, no one is<\/p>\n<p>found guilty. The details of the wrong attributed to the respective private<\/p>\n<p>individuals, though form the basis for the complaint, are not put on record.<\/p>\n<p>The trial has not commenced nor is any charge sheet levied. It is at this<\/p>\n<p>stage that all the petitioners have resorted to the writ petitions that the<\/p>\n<p>batch of writ petitions have been filed at the instance of the two named<\/p>\n<p>individuals.\n<\/p>\n<p>IV                 Non-maintainability of writ petition, as perceived by<br \/>\n                   State.\n<\/p>\n<p>                   5.    To the argument of the learned counsel on behalf<\/p>\n<p>of the petitioners that the Government itself does not have power to take<\/p>\n<p>action or decide that the acts complained of constituted unfair labour<\/p>\n<p>practice, learned counsel for the State points out that the unfair labour<\/p>\n<p>practice is defined under Section 2 (ra) as meaning any practice specified<\/p>\n<p>in the 5th Schedule and the 5th Schedule includes, the acts, inter alia, in<\/p>\n<p>entry 7 &#8220;to transfer a workman mala fide from one place to another, under<\/p>\n<p>the guise of following management policy&#8221;.     According to learned counsel<\/p>\n<p>appearing for the State submits that the Government could not have<\/p>\n<p>referred the matter for adjudication under Section 10 in view of the fact that<\/p>\n<p>the transfer per se would not qualify for reference since only matters<\/p>\n<p>pertaining to 3rd Schedule could be adjudicated under Section 10 (i)<\/p>\n<p>proviso, of the Act. . He would submit that an &#8216; Industrial dispute&#8217; under<br \/>\n<span class=\"hidden_text\"> CWP No.2369 of 2009                               5<\/span><\/p>\n<p>Section 2-K could not to be adjudicated since all the complaints have<\/p>\n<p>originated not through the union but by individual workmen whose right to<\/p>\n<p>seek for adjudication stems only under Section 2-A and it applies only to<\/p>\n<p>issues of discharge, dismissal and retrenchment etc. and it would not be<\/p>\n<p>possible even for the individual workman to seek for adjudication on a<\/p>\n<p>subject mentioned in Schedule V.\n<\/p>\n<p>V.                 Complaint of unfair labour practice could originate<br \/>\n                   even from an individual workman.\n<\/p>\n<p>                   6.    In my view, the fact that individuals cannot seek<\/p>\n<p>for references for any matter other than issues of discharge\/dismissal as<\/p>\n<p>found under Section 2-A itself contains an answer to the query whether the<\/p>\n<p>issue of &#8216;unfair labour practice&#8217; could be decided only by a Court and<\/p>\n<p>whether it would be incompetent for the Government to make such a prima<\/p>\n<p>facie inference before deciding to take action for prosecution. In a similar<\/p>\n<p>fashion if we must see that the definition of &#8216;Industrial dispute&#8217; under<\/p>\n<p>Section 2-K contains a larger scope for an enquiry relating to a dispute<\/p>\n<p>between employees and        hence confined only to a      dispute espoused<\/p>\n<p>through a Union, it would lead to an absurd consequence of a complaint<\/p>\n<p>of unfair labour practice    being unavailable to an individual workman.<\/p>\n<p>Sections 25-T and U could not be seen in a restrictive sense as enabling<\/p>\n<p>only the union to seek for adjudication through reference and disabling any<\/p>\n<p>individual workman to complain of unfair trade practice.<\/p>\n<p>VI                 Prima Facie finding of unfair labour practice is the<br \/>\n                   only pre-requisite- No final proof necessary at the<br \/>\n                   stage of complaint.\n<\/p>\n<p>                   7.    The power exercises under Section 32 and 34 is<\/p>\n<p>after coming to a prima facie conclusion that there is &#8216; unfair labour<\/p>\n<p>practice&#8217;   The respective Sections do not stipulate any one authority to be<\/p>\n<p>exclusive for determining this question, as it does not state anywhere that<\/p>\n<p>this finding could be rendered by the Labour Court on a reference from the<br \/>\n<span class=\"hidden_text\"> CWP No.2369 of 2009                                  6<\/span><\/p>\n<p>Government. If the Section 25-T itself prohibits &#8216;unfair labour practice&#8217; and<\/p>\n<p>Section 32 provides that if an offence is committed by a Company, every<\/p>\n<p>Director, Manager, Secretary or other Officer concerned             with   the<\/p>\n<p>Management shall, unless he proves that the offence was committed<\/p>\n<p>without his knowledge or consent, be deemed to be guilty of such offence.<\/p>\n<p>It means that power of adjudication does not reside even with the<\/p>\n<p>Government any more than obtaining relevant information in order to take<\/p>\n<p>further proceedings provided under Section 34 of the Act. Section 34 of the<\/p>\n<p>Act provides thus:\n<\/p>\n<blockquote><p>                     34.   Cognizance of offences: (1)     No Court shall take<br \/>\n                           cognizance of any offence punishable under this<br \/>\n                           Act or of the abetment of any such offence, save<br \/>\n                           on complaint made by or under the authority of<br \/>\n                           the appropriate Government.\n<\/p><\/blockquote>\n<blockquote><p>                           (2)`    No Court inferior to that of a Metropolitan<br \/>\n                           Magistrate or a Judicial Magistrate of the first<br \/>\n                           class shall try any offence punishable under this<br \/>\n                           Act.&#8221;\n<\/p><\/blockquote>\n<p>The cognizance of the offence itself shall not be made either by the<\/p>\n<p>Government or by the Labour Court. Such a power resides in a Magistrate<\/p>\n<p>of the Ist Class who shall try any offence punishable under the Act. It is<\/p>\n<p>this Section which gives a clue to who determines the commission of the<\/p>\n<p>offence which the law interdicts under Section 25-T and prescribes the<\/p>\n<p>penalty under Section 25-U of the Act. In Mysore Structurals Ltd. and<\/p>\n<p>others 2002 1 SCC 477, the Hon&#8217;ble Supreme Court referred to Section 34<\/p>\n<p>and 29 of the Act to hold that Section 34 is in the nature of a limitation on<\/p>\n<p>the entitlement of a workman or a trade union or an employer to complain<\/p>\n<p>about the offences under the Act and the object behind the said limitation is<\/p>\n<p>to restrain the complainant from making frivolous, vexatious or otherwise<\/p>\n<p>patently untenable complaints.\n<\/p>\n<p><span class=\"hidden_text\"> CWP No.2369 of 2009                               7<\/span><\/p>\n<pre>VII                      Power to initiate action with appropriate\n                         government,effect.\n\n                  8.      Again, the Section places the power not on any\n\nprivate individual but leaves it   to the appropriate Government.       The\n\n<\/pre>\n<p>Hon&#8217;ble Supreme Court held in Workmen of Meenakshi Mills Ltd. and<\/p>\n<p>others Vs. Meenakshi Mills Ltd. and another 1992 (3) SCC 336          that a<\/p>\n<p>power which is entrusted to the Government under Section 25-N is of such<\/p>\n<p>a nature that it was always expected that a responsible decision is taken<\/p>\n<p>and it noted that the power vested in the Government itself to be an<\/p>\n<p>inherent check against arbitrary exercise of such power. As is Section 25-<\/p>\n<p>N, so with Section 34 of the Act. In Hindustan Lever Ltd. Vs. Ashok<\/p>\n<p>Vishnu Kate    and     others   (1995) 6    SCC 326 the Hon&#8217;ble Supreme<\/p>\n<p>Court dealt with distinction in the procedure contained in the Maharashtra<\/p>\n<p>Recognition of Trade Unions and Prevention Act, 1971 and the provisions<\/p>\n<p>that were contained under the Act. While detailing the differences the<\/p>\n<p>Hon&#8217;ble Supreme Court held that Section 25-T of the Industrial Disputes<\/p>\n<p>Act prohibits an employee or Union or workman from committing any unfair<\/p>\n<p>labour practice, while the Maharashtra Act prohibited any employer or<\/p>\n<p>Union or employee from engaging in any unfair labour practice, which was<\/p>\n<p>a more comprehensive term. Section 25 H makes a direct prosecution<\/p>\n<p>possible while the Maharashtra Act requires the prosecution to be<\/p>\n<p>preceded by an adjudication by a competent Court regarding such<\/p>\n<p>engagement. This distinction in my view is very significant. Unlike the<\/p>\n<p>Maharashtra Act, the Industrial Disputes Act puts the adjudication for the<\/p>\n<p>purpose of applying the penal provision to unfair labour practice only in the<\/p>\n<p>hands of a Ist class Magistrate. The High Court, in my view, shall not<\/p>\n<p>cause an impediment for the legal action to ensue at such a preliminary<\/p>\n<p>stage, when the government forms opinion about commission of the<\/p>\n<p>offence and decides to lodge a complaint.<\/p>\n<pre>\n<span class=\"hidden_text\"> CWP No.2369 of 2009                                  8<\/span>\n\nVIII.              Premature interference by High Court, undesirable\n\n                   9.     The Industrial Disputes Act being           a welfare\n\n<\/pre>\n<p>legislation, its provisions should be so interpreted as to effectuate the<\/p>\n<p>intendment of the Act. The Hon&#8217;ble Supreme Court cautioned in People&#8217;s<\/p>\n<p>Union for Democratic Rights Vs. Union of India and others 1982 (3)<\/p>\n<p>SCC 235      that violation of labour laws must be strictly followed and<\/p>\n<p>appropriate and adequate punishment must be imposed. Adverting to the<\/p>\n<p>provisions of various labour laws in relation of the workman employed in<\/p>\n<p>the construction connected with the Asian Games, the Hon&#8217;ble Supreme<\/p>\n<p>Court observed that labour laws are enacted for improving the conditions<\/p>\n<p>of workers and the employers can not be allowed to buy off immunity<\/p>\n<p>against violations of labour laws&#8230;.   All this is only to state that a violation<\/p>\n<p>of the provisions of the Act or the enforcement of the prohibition of<\/p>\n<p>commission of unfair labour practice are serious enough that the High<\/p>\n<p>Court in its exercise of writ jurisdiction, shall not interfere in lackadaisical<\/p>\n<p>fashion for an action proposed by the Government to give effect to some of<\/p>\n<p>the penal provisions of the Act.\n<\/p>\n<p>IX                 Inherent safeguards under Section 34 of Industrial<br \/>\n                   Disputes Act.\n<\/p>\n<p>                   10.     The persons against whom the proceedings are<\/p>\n<p>sought to be taken have come to no harm to this date. I have already<\/p>\n<p>outlined scope of the impugned orders. The proceedings contemplated<\/p>\n<p>under Section 34 are not a warrant procedure. In a summons procedure,<\/p>\n<p>a complaint has to contain all the necessary details and the trial could<\/p>\n<p>proceed only on the basis of facts revealed in the complaint against<\/p>\n<p>persons who are sought to be proceeded against for alleged commission of<\/p>\n<p>the prohibited offence. The sufficiency of details in the complaint before a<\/p>\n<p>Magistrate can issue summons to the persons against whom the action is<\/p>\n<p>proposed is the first safeguard against the frivolous complaint. The fact<br \/>\n<span class=\"hidden_text\"> CWP No.2369 of 2009                                9<\/span><\/p>\n<p>that the complaint should be lodged only by the Government which is a<\/p>\n<p>responsible body is the second safeguard against the irreverent use of the<\/p>\n<p>provisions.   Per chance,     if the basic safeguards are flouted and a<\/p>\n<p>complaint is made with no details sufficient to hold the persons responsible<\/p>\n<p>such persons against whom complaint is made, they shall always have<\/p>\n<p>opportunity to resort to the relevant provisions of the Criminal Procedure<\/p>\n<p>Code to have the complaint quashed. If the complaint passes the stage<\/p>\n<p>and summons are issued the workman shall still have opportunity to allow<\/p>\n<p>the case to go through trial and require the prosecution to establish its<\/p>\n<p>case. If the Government cannot show that any of the persons against<\/p>\n<p>whom the prosecution is attempted is not in any way responsible for the<\/p>\n<p>transfer, on that day comes the sure exit for the petitioners. Again, if it is<\/p>\n<p>not shown by the prosecuting agency that the persons against whom the<\/p>\n<p>action was proposed had not been guilty of any mala fide exercise of the<\/p>\n<p>power of transfer that should also be possible at the stage of trial         to<\/p>\n<p>establish that they were not owners or occupiers of the manufacturing<\/p>\n<p>units from where the particular workmen were ordered to be transferred, or<\/p>\n<p>that they had no role to play at all in the orders of transfers will be matters<\/p>\n<p>that could be established only at the trial. In other words, every one of the<\/p>\n<p>contentions which is sought to be now raised to throw a cloud of doubt to<\/p>\n<p>prosecute the named individuals could be appropriately taken at the stage<\/p>\n<p>when the case is filed and when summons are issued. This is not certainly<\/p>\n<p>an occasion propitious to intervene under Article 226.<\/p>\n<p>                   11.          The Delhi High Court        held through its<\/p>\n<p>decision in Tarlok Chand Vs. National Industrial Development Corpn.<\/p>\n<p>Ltd. 1994 (4) SCT 745 that a relief under Article 226 of the Constitution<\/p>\n<p>cannot be availed to consider whether the Management had been guilty of<\/p>\n<p>unfair labour practice. The Delhi High Court was dealing with a case of a<\/p>\n<p>workman&#8217;s complaint against the Management that it was guilty of unfair<br \/>\n<span class=\"hidden_text\"> CWP No.2369 of 2009                                10<\/span><\/p>\n<p>labour practice and the Court had held that the appropriate remedy would<\/p>\n<p>be to seek a reference. In this case, a reference is not sought by either the<\/p>\n<p>workman or the Management and the Government had taken a prima facie<\/p>\n<p>decision that there had been an offence committed. Most importantly, the<\/p>\n<p>Government, at this stage when it proposes to take the action, does not<\/p>\n<p>itself have the power to impose any penalty, it is always left in the hands of<\/p>\n<p>the judiciary. In this case, it shall be the Judicial Magistrate who shall<\/p>\n<p>decide whether it is a fit case to take cognizance of the case and issue<\/p>\n<p>summons and if it chooses to issue summons to decide whether the<\/p>\n<p>offence has been committed against the persons who are accused.<\/p>\n<p>X                  Conclusion:\n<\/p>\n<p>                   12.   The complaint of want of notices or solid proof<\/p>\n<p>against the persons against whom the orders are issued are quite<\/p>\n<p>unnecessary at this stage.The intervention as sought for through writ is<\/p>\n<p>impermissible and unwarranted. The writ petitions are dismissed. No costs.<\/p>\n<p>                                                         (K. KANNAN)<br \/>\n                                                           JUDGE<br \/>\nAugust 3, 2009<br \/>\narchana\n <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Punjab-Haryana High Court Adarsh Gupta vs State Of Haryana on 3 August, 2009 CWP No.2369 of 2009 1 IN THE HIGH COURT OF PUNJAB &amp; HARYANA, CHANDIGARH CWP No.2369 of 2009 Date of decision August 3 , 2009 Adarsh Gupta &#8230;&#8230;. Petitioner Versus State of Haryana, through Secretary Labour Department, Haryana, Chandigarh and others &#8230;&#8230;.. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,28],"tags":[],"class_list":["post-168706","post","type-post","status-publish","format-standard","hentry","category-high-court","category-punjab-haryana-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Adarsh Gupta vs State Of Haryana on 3 August, 2009 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/adarsh-gupta-vs-state-of-haryana-on-3-august-2009\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Adarsh Gupta vs State Of Haryana on 3 August, 2009 - Free Judgements of Supreme Court &amp; 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