{"id":97244,"date":"2008-02-05T00:00:00","date_gmt":"2008-02-04T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/v-p-musthafa-vs-the-shop-esmt-workers-union-on-5-february-2008"},"modified":"2014-06-20T04:15:58","modified_gmt":"2014-06-19T22:45:58","slug":"v-p-musthafa-vs-the-shop-esmt-workers-union-on-5-february-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/v-p-musthafa-vs-the-shop-esmt-workers-union-on-5-february-2008","title":{"rendered":"V.P.Musthafa vs The Shop & Esmt.Workers Union on 5 February, 2008"},"content":{"rendered":"
Kerala High Court<\/div>\n
V.P.Musthafa vs The Shop & Esmt.Workers Union on 5 February, 2008<\/div>\n
       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nOP No. 15258 of 1996(N)\n\n\n\n1. V.P.MUSTHAFA\n                      ...  Petitioner\n\n                        Vs\n\n1. THE SHOP & ESMT.WORKERS UNION\n                       ...       Respondent\n\n                For Petitioner  :SRI.U.K.RAMAKRISHNAN\n\n                For Respondent  :SRI.P.R.RAMACHANDRA MENON\n\nThe Hon'ble MR. Justice P.N.RAVINDRAN\n\n Dated :05\/02\/2008\n\n O R D E R\n                                  P.N.RAVINDRAN, J.\n\n                    ----------------------------------------\n\n                           O.P.No.15258 OF 1996-N\n\n                           -------------------------------------\n\n        DATED THIS THE 5TH DAY OF FEBRUARY, 2008\n\n\n                               J U D G M E N T\n<\/pre>\n
        Exhibit   P3   award   passed   by  the   Labour   Court,   Kannur   as<\/p>\n
early as on 23.11.1995 in I.D.No.45\/92 is under challenge in this<\/p>\n
original petition.\n<\/p>\n
      2.     The   petitioner,   who   instituted   this   Original   Petition   ,<\/p>\n
since   deceased,   was   the   proprietor   of   ‘V.P.Industries’   an<\/p>\n
industrial   unit   engaged   in   the   manufacture   and   distribution   of<\/p>\n
curry powder on wholesale basis.     On the petitioner’s death, his<\/p>\n
legal   representatives   have   been   impleaded   as   supplemental<\/p>\n
petitioners   2   to   8   as   per   order   dated   8.12.2006   passed   on<\/p>\n
I.A.No.15147\/06.\n<\/p>\n
      3.     The issue referred to the Labour Court for adjudication<\/p>\n
was the   denial of employment to 35 workers of the petitioner’s<\/p>\n
unit.  In the Labour Court, the plea of the management was that<\/p>\n
the industry was closed down in terms of Section 25-FFF of the<\/p>\n
Industrial   Disputes   Act,   1947   and   that   only   12   workers   were<\/p>\n
employed   in   his   unit.   The   Labour   Court,   on   an   analysis   of   the<\/p>\n
O.P.No.15258\/96-N<\/p>\n
                                          2<\/span><\/p>\n
pleadings  and the evidence in the case held that only 12 out of 35<\/p>\n
persons projected as employees of the petitioner’s unit were in fact<\/p>\n
employed   in   the   petitioner’s   establishment.     The   plea   of   the<\/p>\n
petitioner that the unit was closed down was held to be untenable.\n<\/p>\n
The   Labour   Court   also   held   that   the   establishment   is   still   in<\/p>\n
existence   and   that   12   workers   named   in   the   award   were   denied<\/p>\n
employment since September, 1991.  The Labour Court accordingly<\/p>\n
held   that   the   12   workers   named   in   the   award   are   entitled   to   be<\/p>\n
reinstated   with   back   wages   since   the   re-opening   of   the   unit   after<\/p>\n
lock out, with continuity of service.\n<\/p>\n
       4.     I have heard Shri U.K.Ramakrishnan, the learned counsel<\/p>\n
appearing   for   petitioner     and   Shri   P.R.Ramachandra   Menon,   the<\/p>\n
learned   counsel   appearing   for   respondents   1   and   2.   The   earned<\/p>\n
counsel for the petitioner contended that a closure notice was issued<\/p>\n
in terms of section 25-FFF  of the Industrial Disputes Act, 1947 and<\/p>\n
that   the   finding   of   the   Labour   Court   that   the   business   is   still   in<\/p>\n
existence is factually incorrect and is not supported by the evidence<\/p>\n
on record.  The learned counsel for the petitioner further contended<\/p>\n
that the business is being run by the 3rd  respondent in the original<\/p>\n
O.P.No.15258\/96-N<\/p>\n
                                          3<\/span><\/p>\n
petition   and   there   is   no   employer-employee   relationship   between<\/p>\n
the workers and the 3rd respondent.  The learned counsel appearing<\/p>\n
for  respondents   1  and  2  contended  that   the  notice  of   closure   was<\/p>\n
issued   after   employment   was   denied   to   the   workers   and   that   the<\/p>\n
claim of the management that the unit has been transferred to the<\/p>\n
3rd  respondent who is none other than the petitioner’s daughter-in-\n<\/p>\n
law  is   a   bogus   claim.     The   learned  counsel   also   submitted   that   in<\/p>\n
fact,   there   was   no   closure   at   all   and   that   the   business   was   being<\/p>\n
carried   on   by   the   petitioner.     The   Labour   Court   has,   on   a<\/p>\n
consideration of the pleadings and the evidence in the case and on<\/p>\n
an analysis of the case law on the point held that the unit was not<\/p>\n
closed and is still continuing.   The Labour Court had in arriving at<\/p>\n
the   said   finding  taken   note   of   the  fact   that   the  licence   to   run  the<\/p>\n
factory   continues   in   the   name   of   the   petitioner   and   that   the   3rd<\/p>\n
respondent had not come forward to adduce evidence and establish<\/p>\n
her case that she is running the business on her own.   Though the<\/p>\n
petitioner had placed reliance on the decision of the Apex Court in<\/p>\n
T.D.L.Association   v.   Ex-Employees   (AIR   1960   SC   815)  to<\/p>\n
contend   that   even   if   the   closure   is   held   to   be   malafide,   the<\/p>\n
O.P.No.15258\/96-N<\/p>\n
                                         4<\/span><\/p>\n
consequence would only be the liability to pay higher compensation<\/p>\n
and   not   reinstatement,   the   said   contention   was   repelled   by   the<\/p>\n
Labour Court on the finding that there was in fact and in reality no<\/p>\n
closure   and   that   the   industrial   unit   is   still   functioning   under   the<\/p>\n
same management.\n<\/p>\n
      5.     I have considered the rival submissions made at the Bar.\n<\/p>\n
In my considered opinion, for the reason that the license to run the<\/p>\n
establishment   still   continues   in   the   name   of   the   petitioner,   the<\/p>\n
finding of the Labour Court cannot be said to be perverse or illegal.\n<\/p>\n
No document evidencing the transfer of the business in favour of the<\/p>\n
third   respondent   was   produced   before   the   Labour   Court.     It   was<\/p>\n
conceded   before   the   Labour   Court   that   the   license   to   run   the<\/p>\n
industry   still   stands   in   the   name   of   the   petitioner.   The   3rd<\/p>\n
respondent, the alleged transferee is none other than the daughter-\n<\/p>\n
in-law of the petitioner.  Though the petitioner, examined as MW1 ,<\/p>\n
on   the   side   of   the   management   attempted   to   depose   that   the   3rd<\/p>\n
respondent is doing the business independently,  the Labour Court,<\/p>\n
taking   note   of   the   admitted   fact   that   the   license   had   not   been<\/p>\n
transferred to the name of the 3rd respondent and the failure of the<\/p>\n
O.P.No.15258\/96-N<\/p>\n
                                           5<\/span><\/p>\n
3rd  respondent   to   enter   the   box   and   prove   her   case   that   she   was<\/p>\n
running the establishment independently and in her own right, held<\/p>\n
that   there   was   no  closure  of   the   establishment   in   the   eyes   of   law<\/p>\n
and that the petitioner herein is still running the business.  The said<\/p>\n
finding of the Labour Court in Exhibit P3 award is a finding of fact<\/p>\n
based   on   the   evidence   on   record   and   cannot   be   said   to   be   a<\/p>\n
perverse finding warranting interference by this Court.\n<\/p>\n
         For   the   reasons   stated   above,   I   find   no   grounds   to   interfere<\/p>\n
with   Exhibit   P3.     The   original   petition   accordingly   fails   and   it   is<\/p>\n
dismissed.  No costs.\n<\/p>\n
                                                  P.N.RAVINDRAN, JUDGE.\n<\/p>\n
dsn<\/p>\n
O.P.No.15258\/96-N<\/p>\n
                     6<\/span><\/p>\n
                          P.N.RAVINDRAN,J.\n<\/p>\n
                          ———————–\n<\/p>\n
                          O.P.No.15258\/96-N<\/p>\n
                           J U D G M E N T<\/p>\n
                               05.02.2008<\/p>\n","protected":false},"excerpt":{"rendered":"
Kerala High Court V.P.Musthafa vs The Shop & Esmt.Workers Union on 5 February, 2008 IN THE HIGH COURT OF KERALA AT ERNAKULAM OP No. 15258 of 1996(N) 1. V.P.MUSTHAFA … Petitioner Vs 1. THE SHOP & ESMT.WORKERS UNION … Respondent For Petitioner :SRI.U.K.RAMAKRISHNAN For Respondent :SRI.P.R.RAMACHANDRA MENON The Hon’ble MR. Justice P.N.RAVINDRAN Dated :05\/02\/2008 O […]<\/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":[8,21],"tags":[],"class_list":["post-97244","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"\nV.P.Musthafa vs The Shop & Esmt.Workers Union on 5 February, 2008 - Free Judgements of Supreme Court & 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\/v-p-musthafa-vs-the-shop-esmt-workers-union-on-5-february-2008\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"V.P.Musthafa vs The Shop & Esmt.Workers Union on 5 February, 2008 - 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