24 March 1999
Supreme Court
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WORKMEN OF M/S.BIRLA TEXTILES Vs K.K. BIRLA

Bench: S.S.AHMAD,M.J.RAO
Case number: 9999 No.-000061-000061 / 1999
Diary number: 1417 / 1999


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PETITIONER: WORKMEN OF M/S BIRLA TEXTILES

       Vs.

RESPONDENT: SHRI K.K.BIRLA & OTHERS

DATE OF JUDGMENT:       24/03/1999

BENCH: S.S.Ahmad, M.J.Rao

JUDGMENT:

M.JAGANNADHA RAO,J.

     Contempt  Petition No.61 of 1999 has been filed by the Workmen  of M/s Birla Textiles (Prop Texmaco Ltd., Calcutta) for  punishing the four respondents who are incharge of  the management  of  the  Industry,  on   the  ground  of  wilful disobedience   of  the  directions  of  this   Court   dated 18.12.1998  in Interlocutory Application No.202 in IA  No.22 in  Writ Petition No.4677 of 1985.  Contempt Petition  No.72 of  1999  is  a similar petition by the  All  India  Textile Mazdoor  Janta  Union.  Similar Contempt Petition  No.92  of 1999  is filed by two petitioners, namely, the Kapra Mazdoor Lal  Jhanda  Union  and one  Kanchan  Singh.   Interlocutory Application  by  Nawal  Kishore Misra in  Contempt  Petition No.532  of 1997 in Writ Petition No.4677 of 1985 is taken on Board.   Interlocutory Application Nos.624-628, 160, 201-203 are  filed  by  the Birla Textiles in IA 22 and 36  in  Writ Petition  No.4677 of 1985 for extension of time for  payment of  the  amounts ordered by this Court on 18.12.1998 in  the judgment  of  this Court in M.C.Mehta vs.  Union of India  & Others [JT 1998 (9) SC 104].

     When  the  matters came up before us on  1.2.1999,  we directed  an interim payment of Rs.30,000/- to the  workmen, ‘on account’ as the Mill was not admittedly functional.

     In  the  judgment of this Court dated  18.12.1998  the earlier  history  of  this litigation has been  set  out  in detail  and,  therefore, we do not propose to refer  to  the same  again.  The orders and directions given by this  Court in that order can be summarised as follows:

     (1) that the management will allow all workmen (except those  who  exercised  or would exercise an  option  not  to rejoin) to rejoin at Baddi.

     (2)  All such workmen who report at Baddi on 14.1.1999 and 15.1.1999 and sign or put their thumb-mark in a register before the two designated Dy.Labour

     Commissioners,  shall  be entitled to the benefits  of the  orders of this Court dated 8.7.96 and subsequent orders in  respect of continuity, backwages from date of closure of

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the  industry  till  date of rejoining, in addition  to  one year’s  wages towards shifting bonus.  The said amount  will be  paid by the Industry to each workman, within one week of the workmen rejoining at Baddi.

     (3)  In  respect  of workmen who do not so  report  by 15.1.1999  or  who  otherwise  give it  in  writing  to  the nominated  authority  that they are not willing  to  rejoin, they  shall  be  deemed  to   have  been  retrenched  w.e.f. 30.11.1996  and  shall be entitled only to one year’s  wages and also to Section 25F(b) compensation as per the orders of this  Court  dated  8.7.1996.   The said  amounts  shall  be disbursed  to these employees within one week from 15.1.1999 by the Industry.

     The  above directions, it will be noticed, were  given by  this  Court on the assumption that the factory at  Baddi was  fully functional.  Otherwise, this Court would not have passed an order that "all" the workmen who desired to rejoin at  Baddi  should  be  allowed  to rejoin  and  be  paid  as aforesaid.  Learned senior counsel who appeared before us at that  time  for  the industry also proceeded  on  the  above basis.   But  what  happened after the workmen  reported  at Baddi on 15.1.1999 and 16.1.1999 is indeed very unfortunate. The  factory  was not functional and the workmen  waited  in biting  cold not knowing what to do.  The amounts payable to them were not disbursed on the ground of the industry filing a  fresh  writ petition in this Court  challenging  judicial orders.   We were informed that one workman died on  account of  the acute cold weather and several others fell ill.   In our  order dated 1.2.1999, we recorded that the workmen  had to  come  back  as the Mill was not functional and  no  gate passes  were issued to them.  We, therefore, directed  that, in  respect  of  all  workmen  who  reported  at  Baddi  (as evidenced   by  the  register   maintained  by  the   Labour Commissioners),  a  sum  of Rs.30,000 be paid  ‘on  account’ without prejudice to the rights of parties.  We are informed that this sum has since been paid.  We may state that, after our  orders  dated  18.12.1998,   the  Industry  filed  writ petition D.423 of 1999 questioning various earlier orders of this  Court  and also our order dated 18.12.1998.   In  that writ  petition, we issued notice in regard to the Industry’s objections  to  certain  earlier orders of  this  Court  and referred  the matter to a Constitution Bench but we have not issued  any  notice so far as our order dated 18.12.1998  is concerned.  Therefore, the order dated 18.12.1998 stands and has  become final and has to be implemented, subject to such further  directions  as  we  may now issue  in  this  order. Inasmuch as it has been contended before us for the Industry on  1.2.1999  that  the factory at Baddi is  not  yet  fully functional,  (and  even  now that is the position)  we  have directed  the  Industry to inform us as to what  extent  the factory   is  functional  and  how   many  workmen  can   be immediately  allowed  to work, and if so, which of them.   A list  of 937 workmen who can immediately join has since been filed  by the Industry.  It may also be noted that so far as the  workmen  are concerned, that is to say, those who  have reported  at Baddi on 14.1.1999 and 15.1.1999, their counsel stated  before us that these workers are all willing to work at Baddi from such date as this Court may direct.  Before we proceed  to  issue fresh directions, we shall deal with  the allegations  raised  by the workmen in the  contempt  cases. Counsel  appearing for the workmen took serious objection to the  tenor of the counter-affidavits filed by the contemnors and  in particular to the threat of a possible "lay-off"  of

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the  workmen  who  had  reported  at  Baddi.   According  to counsel, the Industry was bent upon violating the directions of  this  Court  dated 18.12.1998 and putting  all  possible obstacles in the way of the workmen.  The above criticism of the  attitude of the industry is, in our opinion, not wholly unjustified.   But  we  do  not propose  to  go  into  these aspects.   In view of the admitted fact that the factory  is not  fully functional, we are naturally compelled to  modify the  orders  dated  18.12.1998 for the purpose  of  its  due implementation,  leaving  the substratum of  the  directions untouched.  In Annexure R-3 dated 25.2.1999 filed along with the  Counter affidavit dated 26.2.1999, details are given as to  the sectionwise summary of workmen who will be  provided job  ‘immediately’  at Baddi.  There are  three  categories: viz.,  262 workmen belong to Essential  Services(Maintenance workmen) divided into various sub-categories;  438 belong to Production  department divided into various  sub-categories; and  237 belong to the category of workmen to be trained  in processing,  folding and packing.  This makes a total of 937 workmen.   The  names and identity of each of these  workmen has  also been furnished by the industry.  Therefore, it  is agreed  that these workmen will be provided job immediately. We  have  already recorded that all workmen who reported  at Baddi  on  14.1.1999  and 15.1.1999 have come back  and,  in fact,   they  were  to  receive   the  interim  payment   of Rs.30,000/-  at  Delhi, on account.  Now these  937  workmen have  once  again to go back at Baddi.  We are of  the  view that  inasmuch  as  the  Industry  is  responsible  for  not informing  this Court earlier, i.e.  before the order  dated 18.12.1998 was passed - that the factory was not functional, the extra expense of these workmen going to Baddi once again from  Delhi has to be borne by the Industry.  We accordingly direct  the industry to pay a sum of Rs.500 to each of these workmen  after they join the job at Baddi, to meet the extra travel  expenditure.   The 937 workmen will report at  Baddi and  once  again sign or put their thumb-mark in a  Register before  the  Deputy  Labour  commissioner,  Solan,  Himachal Pradesh  on  31.3.1999.  The same will be done at Baddi  and for   this  purpose  we  direct   the  said  Deputy   Labour Commissioner,  Solan to proceed to Baddi on 31.3.1999 and we also  direct  the 937 workmen (who had earlier  reported  at Baddi  on  14.1.1999  and 15.1.1999) to sign in  a  register before  the Deputy Labour commissioner, Solan on  31.3.1999. The  Deputy  Labour Commissioner, Solan shall also obtain  a written   undertaking  from  each  of  these  937   workmen, addressed  to this Court, that they will continue to work in the  factory  at  Baddi  and will abide  by  the  rules  and regulations  or other orders applicable to them.  Copies  of the  said  undertaking  will be handed over  by  the  Deputy Labour  Commissioner, Solan to the Industry, for being filed in  this  Court.   We may, however, make it clear  that  the reporting  of  the workmen at Baddi  on  14.1.1999/15.1.1999 will  be treated as complete so far as all these workmen who have  already  reported  on  those dates at  Baddi  and  the present  exercise  is  only meant as a  subsequent  step  in implementation  of the earlier orders.  The next question is about  payment  of the wages to these 937 workmen  from  the date  of  closure upto 15.1.1999, the earlier date on  which these  workmen had reported, together with the wages payable from  15.1.1999  to  31.3.1999.  The wages so  payable  upto 31.3.1999  together  with  the  one year  wages  payable  as shifting  bonus and the sum of Rs.500 mentioned above (minus the  sum  of Rs.30,000/- if paid earlier) shall be  paid  by cheques  to each of these 937 workmen, payable on a Bank  at Baddi,  on  or  before 07.4.1999.  Learned counsel  for  the

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workmen  have  informed us that the Banks at Baddi  are  not willing  to  open  any  accounts   unless  there  is  proper identification and proof of local residence.  It appears the Banks  are insisting on production of a ration-card or  some other  evidence.   In  order to get over  this  problem,  we direct the Labour Commissioner, Solan to issue a Certificate of  Identity to each workman so that upon production of  the same  before the Bank, the Bank could open accounts  without insisting  on  further  evidence.   The  concerned  Bank  is directed  to  open accounts on production of the  letter  of identity  issued by the Labour Commissioner, Solan,  without insisting  on  production of ration card or other  evidence. The  question  then  is  about the other  workmen  who  have reported  at  Baddi on 14.1.1999/15.1.1999 i.e.  other  than the  above  937 workmen.  As of today, the Industry has  not informed  this  Court as to when any particular  workman  or group  of workmen, other then the 937 can join their jobs at Baddi.   Learned  senior  counsel   for  the  Industry,  Sri K.K.Venugopal,  however,  suggested that as and  when  other jobs  are  ready, the workmen will be informed and they  can report  to  duty.   For  this purpose,  the  learned  senior counsel  suggested  that the remaining workmen can  also  go back  to Baddi and stay there awaiting information from  the Industry  as  to when they can start working.   The  learned counsel  for the workmen on the other hand stated that there is  no point in the other workmen going to Baddi at present, when  no work is available.  We have considered these points carefully.   In  our  view,  the question  of  the  Industry serving  notices at Delhi periodically might create  serious disputes  about  service of notices at Delhi.  On the  other hand,  if the remaining workmen proceed to Baddi and  remain there,-  inasmuch as they have to go to Baddi one day or the other  -  then it will be easy for service of  notices  etc. upon them to join the factory work.  But at the same time it will be fair if these remaining workers are paid the various amounts due to them, for they have already reported at Baddi on  14.1.1999/15.1.1999  in obedience to the orders of  this Court dated 18.12.1998.  We, therefore, direct the remaining workmen  (other  than the 937) who have earlier reported  on 14.1.1999/15.1.1999 to report at Baddi on 09.4.1999 on which date also we direct the Deputy Labour Commissioner, Solan to be  present at Baddi.  These workmen too will again sign  in the  register at Baddi before the Deputy Labour Commissioner on  09.4.1999.  On or before 16.4.1999, the wages payable to them  from the date of closure upto 09.4.1999, together with shifting  bonus  of one year wages, plus Rs.500/- as  stated above  towards expense for journey to Baddi will be paid  by cheque  to each of these other workmen.  The Identity letter as  aforesaid  will be issued to each of them by the  Deputy Labour Commissioner, Solan for opening Bank account at Baddi and  these workmen will also give an undertaking, as  stated earlier, for continuing to work in the factory.  As and when the  Industry  thinks that other sections or departments  of the factory are ready, it shall inform these workmen atleast two  days in advance so that they can join.  It is  needless to  say  that  even during the period before  these  workmen (other  than 937) are provided with the jobs at Baddi,  they shall be paid their regular monthly wages.  Such wages have, in  our view, already become payable because of our  earlier order dated 18.12.1998 and inasmuch as all these workmen had earlier  reported at Baddi on 14.1.1999/15.1.1999.  In fact, such  an  order  is  clearly  consistent  with  the  earlier directions  given by this Court.  We have also before us Sri Naval  Kishore Misra who has filed an application to  recall our  order  dated  18.12.1998 as our order was  based  on  a

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mistake  of  fact.   As we are satisfied that  there  was  a mistake  on  the part of the Court, we set aside  the  order dated  18.12.1998  so  far  as Sri Naval  Kishore  Misra  is concerned  and direct the industry to pay him Rs.30,000/- on account  within  one week at Delhi.  He will report  to  the Deputy Labour Commissioner at Baddi on 09.4.1999 and sign in the  register,  give the undertaking as stated  earlier  and collect  the  cheque for arrears of wages from the  date  of closure  upto  09.4.1999 and the shifting bonus of one  year wage  minus  Rs.30,000/-  if he is paid that amount  in  the meantime.   There is no need to pay him the extra Rs.500  as he  had  not  gone  to Baddi  on  14.1.1999/15.1.1999.   His Interlocutory  Application  is  allowed   and  disposed   of accordingly.  The Deputy Labour Commissioner, Solan will not entertain  on  31.3.1999 and 09.4.1999, any workman who  had not  reported earlier on 14.1.1999/15.1.1999 at Baddi except Sri  Naval  Kishore Misra, in whose respect we  have  passed separate  orders,  as stated above.  The Contempt cases  are closed  and  the  above  directions will be  treated  as  in modification   and   continuation  of   our   orders   dated 18.12.1998.   The IAs too stand disposed of in terms of  the above directions.