{"id":56756,"date":"2005-04-18T00:00:00","date_gmt":"2005-04-17T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ms-s-v-tank-vessel-pvt-ltd-vs-engineering-workers-association-on-18-april-2005"},"modified":"2018-12-26T18:48:34","modified_gmt":"2018-12-26T13:18:34","slug":"ms-s-v-tank-vessel-pvt-ltd-vs-engineering-workers-association-on-18-april-2005","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ms-s-v-tank-vessel-pvt-ltd-vs-engineering-workers-association-on-18-april-2005","title":{"rendered":"M\/S. S.V. Tank &amp; Vessel Pvt. Ltd vs Engineering Workers Association on 18 April, 2005"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">M\/S. S.V. Tank &amp; Vessel Pvt. Ltd vs Engineering Workers Association on 18 April, 2005<\/div>\n<div class=\"doc_author\">Author: A Pasayat<\/div>\n<div class=\"doc_bench\">Bench: Arijit Pasayat, S.H. Kapadia<\/div>\n<pre>           CASE NO.:\nAppeal (civil)  2657-2658 of 2005\n\nPETITIONER:\nM\/s. S.V. Tank &amp; Vessel Pvt. Ltd.\n\nRESPONDENT:\nEngineering Workers Association\n\nDATE OF JUDGMENT: 18\/04\/2005\n\nBENCH:\nArijit Pasayat &amp; S.H. Kapadia\n\nJUDGMENT:\n<\/pre>\n<p>JUDGMENT<\/p>\n<p>ARIJIT PASAYAT, J.\n<\/p>\n<p>Leave granted.\n<\/p>\n<p>The appellant (hereinafter referred to as the `Employer&#8217;) calls in question<br \/>\nlegality of the judgment rendered by a Division Bench of the Bombay High<br \/>\nCourt directing it to furnish security\/bank guarantee of a Nationalised<br \/>\nBank to the extent of 50% of the amount of wages as per the calculation to<br \/>\nbe made on the basis of the order passed by the Industrial Court,<br \/>\nMaharashtra at Thane.\n<\/p>\n<p>The background facts as projected by the appellant are as follows :-\n<\/p>\n<p>The employer retrenched 33 employees after giving notice of retrenchment<br \/>\nalongwith cheques covering the notice pay and retrenchment compensation.<br \/>\nSome of the workers refused to accept the same. On account of financial<br \/>\nstringency and reduction of work force, Voluntary Retirement Scheme was<br \/>\nannounced which was availed by 72 employees. The respondent-Association,<br \/>\nhowever, instigated some of the employees not to opt for the scheme. Some<br \/>\nof the employees took law into their own hands and tried to destroy the<br \/>\nappellant&#8217;s properties and this created chaotic conditions for which the<br \/>\nappellant was forced to lodge complaint in the Industrial Court and orders<br \/>\nwere passed prohibiting some workmen from coming within a radius of 100<br \/>\nmeters of the appellant&#8217;s establishment. With a view to be charitable to<br \/>\nthe employees, letters were addressed to workers to join work, who refused<br \/>\nto work and continued with the strike. Complaint was filed by the<br \/>\nrespondent-Association in the Industrial Court questioning retrenchment.<br \/>\nAppellant filed a Written Statement and claimed that the relief claimed<br \/>\ncould not be adjudicated by the Industrial Court and it has no jurisdiction<br \/>\nto deal with the matter. According to the appellant, it was only the Labour<br \/>\nCourt which could deal with the matter. The Industrial Court passed an<br \/>\norder holding that the retrenchment of the concerned workers to be illegal.<br \/>\nThe Industrial Court, inter alia, gave the following directions :\n<\/p>\n<p>&#8220;(a)&#8230;..Reinstate 33 workmen in Annexure-C with full back wages. Their<br \/>\nretrenchment order is set aside.\n<\/p>\n<p>(b) They are directed to pay bonus at the rate of 22% for the year 1990-91<br \/>\nto the workmen except the persons who are not collected including 33<br \/>\nretrenched workmen.\n<\/p>\n<p>(c) Respondent to provide as per the terms of settlement pair of safty<br \/>\nshoes and uniforms.\n<\/p>\n<p>(d) Allow other non-retrenched employees on duty and to pay them the dues<br \/>\nfrom the days when they are not allowed to do the work i.e. from<br \/>\n24.10.1991.\n<\/p>\n<p>(e) They are directed to pay salary and wages of the workmen on the due<br \/>\ndates i.e. 7th of every month.&#8221;\n<\/p>\n<p>The stand of the appellant is that in terms of The Maharashtra Recognition<br \/>\nof Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (in<br \/>\nshort the `Act&#8217;) the proceedings before the Industrial Court were clearly<br \/>\nnot maintainable and order passed by the Industrial Court is without<br \/>\njurisdiction.\n<\/p>\n<p>A Writ Petition was filed by the employer before the Bombay High Court. A<br \/>\nlearned Single Judge passed an interim order, and stayed operation of<br \/>\ndirections 3(c) to 3(e).\n<\/p>\n<p>The interim order was challenged in a writ appeal before the Division Bench<br \/>\nby the respondent-Association and the direction for furnishing<br \/>\nsecurity\/bank guarantee as noted above was given.\n<\/p>\n<p>In support of the appeal learned counsel for the appellant submitted that<br \/>\nwithout indicating as to how learned Single Judge&#8217;s interim order was in<br \/>\nany way illegal or deficient, a Division Bench should not have directed<br \/>\nfurnishing of security\/bank guarantee. The proceedings before the<br \/>\nIndustrial Court were clearly without jurisdiction and this aspect has not<br \/>\nbeen considered by the Division Bench.\n<\/p>\n<p>In response, learned counsel for the respondent-Association submitted that<br \/>\nblanket order of stay was passed by learned Single Judge. Division Bench<br \/>\nwas justified in protecting the interest of the workman in whose favour the<br \/>\nIndustrial Court had decided. Therefore, this is not a fit case which calls<br \/>\nany interference as dispute revolves round interim protection given to the<br \/>\nsuccessful employees.\n<\/p>\n<p>Division Bench has thought it proper to make the interim order conditional.<br \/>\nBasic issue relates to jurisdiction of the Industrial Court. Additionally,<br \/>\nthe justifiability of the orders of retrenchment has to be gone into. It is<br \/>\npointed out by the learned counsel for the appellant that the back wages on<br \/>\nthe basis of the Industrial Court&#8217;s order have to be paid from 1991 and if<br \/>\nthe impugned order is maintained, the appellant who is not in good<br \/>\nfinancial state would be required to provide nearly rupees 40 lakhs for the<br \/>\npurpose of obtaining bank guarantee. Taking peculiar facts into account we<br \/>\nfeel interest of justice would be best served if the appellant pays each of<br \/>\nthe concerned employees an amount equivalent to two years&#8217; wages on the<br \/>\nbasis of the last wages drawn within eight weeks from today, without<br \/>\nprejudice to the claims involved in the Writ Petition. Considering the<br \/>\nlimited nature of the controversy, the High Court is requested to explore<br \/>\nthe possibility of early disposal of the writ petition.\n<\/p>\n<p>The appeals are accordingly disposed of. No costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India M\/S. S.V. Tank &amp; Vessel Pvt. Ltd vs Engineering Workers Association on 18 April, 2005 Author: A Pasayat Bench: Arijit Pasayat, S.H. Kapadia CASE NO.: Appeal (civil) 2657-2658 of 2005 PETITIONER: M\/s. S.V. Tank &amp; Vessel Pvt. Ltd. RESPONDENT: Engineering Workers Association DATE OF JUDGMENT: 18\/04\/2005 BENCH: Arijit Pasayat &amp; S.H. [&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":[30],"tags":[],"class_list":["post-56756","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>M\/S. S.V. Tank &amp; Vessel Pvt. 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