NATIONAL KAMGAR UNION versus KRAN RADER PVT. LTD. & ORS.

NATIONAL KAMGAR UNION versus KRAN RADER PVT. LTD. & ORS.

The total number of workers employed at the relevant time was 99, as conclusively found by the High Court, and the status of the 16 disputed employees as 'workman' was not proven by cogent evidence. Therefore, Chapter VB and Section 25-K of the Industrial Disputes Act did not apply, making compliance unnecessary. The High Court's reversal of the Industrial Court's decision was justified as it corrected a finding not supported by evidence. Lump sum compensation is however directed for workers who did not accept compensation.

Parties
Appellant: National Kamgar Union; Respondent No.1: Kran Rader Pvt. Ltd.; Previous/intervening Owners / Respondents: Other Respondents (Nos. 2, 3, 4)
Jurisdiction
India
Judgment Date
05 January 2018
Procedural Posture
Civil Appeal / Final Appeal From Bombay High Court Judgment in Writ Petition
Outcome
Appeal disposed of; no interference with High Court decision; lump sum compensation awarded to workers who did not accept compensation.
Legal Topics
Closure of Industrial Undertaking, Applicability of Chapter Vb—section 25 K Industrial Disputes Act, Unfair Labour Practices, Supervisory Jurisdiction of High Court Under Article 227, Compensation to Workers
Labour Law Industrial Disputes Constitutional Law Closure of Industrial Undertaking Applicability of Chapter Vb—section 25 K Industrial Disputes Act Unfair Labour Practices Supervisory Jurisdiction of High Court Under Article 227 Compensation to Workers

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Parties

National Kamgar Union

Appellant

Kran Rader Pvt. Ltd.

Respondent No.1

Other Respondents (Nos. 2, 3, 4)

Previous/intervening Owners / Respondents

Procedural Posture

Civil Appeal / Final Appeal From Bombay High Court Judgment in Writ Petition

Legal Issues

  1. 1 Whether provisions of Section 25-K, Industrial Disputes Act, 1947 (Chapter VB) applied to the closure of the unit by respondent No.1, depending on the number of workers employed.
  2. 2 Whether the status of certain employees (16 in number) could be conclusively proved as 'workman'.
  3. 3 Whether the High Court was correct in reversing the Industrial Court's finding regarding number of workers.

Ratio Decidendi

The total number of workers employed at the relevant time was 99, as conclusively found by the High Court, and the status of the 16 disputed employees as 'workman' was not proven by cogent evidence. Therefore, Chapter VB and Section 25-K of the Industrial Disputes Act did not apply, making compliance unnecessary. The High Court's reversal of the Industrial Court's decision was justified as it corrected a finding not supported by evidence. Lump sum compensation is however directed for workers who did not accept compensation.

Court Disposition

Appeal disposed of; no interference with High Court decision; lump sum compensation awarded to workers who did not accept compensation.

Orders

  • Respondent No.1 to pay Rs. 2,50,000/- to each worker who did not accept compensation, after verification.
  • Compensation to be deposited with the Industrial Court, Pune; Industrial Court to notify workers or their legal representatives and ensure payment by demand draft within three months.