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Gujarat High Court

Anil Synthetics (Unit Of Kanoria ... vs Fatesing Ulfatsing....Opponent(S) on 17 July, 2017

Author: K.M.Thaker

Bench: K.M.Thaker

                   C/MCA/562/2017                                            ORDER




                   IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

              MISC. CIVIL APPLICATION (FOR DIRECTION) NO. 562 of 2017

                   In SPECIAL CIVIL APPLICATION NO. 18031 of 2003

         ================================================================
                ANIL SYNTHETICS (UNIT OF KANORIA CHEMICALS &
                             INDUSTRIE)....Applicant(s)
                                      Versus
                         FATESING ULFATSING....Opponent(s)
         ================================================================
         Appearance:
         MR DG CHAUHAN, ADVOCATE for the Applicant(s) No. 1
         MR HEMAL K ACHARYA, ADVOCATE for the Opponent(s) No. 1
         ================================================================

          CORAM: HONOURABLE MR.JUSTICE K.M.THAKER

                                    Date : 17/07/2017


                                     ORAL ORDER

1. The   respondent   in   Special   Civil  Application no. 18031 of 2003 has filed note  dated 06.07.2017.

2. The   said   note   is   filed   in   connection  with   the   judgment   dated   23.08.2016   in   the  said petition and on strength of observations  by this court in Paras - 9.5 and 9.6 in the  said judgment dated 23.08.2016.

3. Two   employees   of   company   had   filed   two  Page 1 of 11 HC-NIC Page 1 of 11 Created On Mon Aug 14 10:09:46 IST 2017 C/MCA/562/2017 ORDER petitions i.e. Special Civil Application no.  18319   of   2003   and   Special   Civil   Application  no. 18031 of 2003. The said petitions came to  be   decided   by   this   court   vide   order   dated  23.08.2006.   In   the   said   judgment   this   court  observed, inter­alia, that,

9. In this context, it is relevant to note that there   is no evidence on record that the workmen had asked   for alternative work in any other department and/or   they   were   ready   and   willing   to   accept   alternative   work in other department. The learned Labour Court   failed to take into account the fact that the claimants   could not establish that though they were willing to   accept alternative work, the company did not provide   them alternative work. This aspect/fact is noticed by   the   Industrial/Appeal   Court   from   the   material   available on record.

9.1 The   learned   Labour   Court   decided   the   two   applications on the premise that if the resignations   were submitted to the representative union, then, its   acceptance   should   have   been   conveyed   to   the   concerned   workmen   through   representative   union.   The   learned   Labour   Court   also   proceeded   on   the   premise   that   the   workmen   had   withdrawn   the   resignation vide letter dated 13.2.1992 and even the   representative union had requested the company to   allow the workmen  to withdraw  the resignation as   per their request in the letter dated 13.2.1992. Page 2 of 11 HC-NIC Page 2 of 11 Created On Mon Aug 14 10:09:46 IST 2017 C/MCA/562/2017 ORDER 9.2 However,   the   learned   Labour   Court   seems   to   have   overlooked   the   fact   that   according   to   the   company, the resignations were accepted vide order /   decision dated 8.2.1992 and even the bills / vouchers   for  payment   of  the  amount  in  accordance   with   the   settlement with the union were prepared. 9.3 The learned appellate court examined  the said   judgment by the learned Labour Court and noticed   the  errors  in   the  judgment.   The  learned   industrial   court took into account the allegation of the workmen   that they had submitted their request / intimation   for   withdrawal   of   the   resignation   on   11.2.1992.   Having taken into account the said allegation by the   workmen,   the   learned   industrial   court   has,   then,   recorded, on examination of the material on record   that the workmen failed to establish that they had   submitted   an   application   to   the   company   on   11.2.1992.   The   learned   Labour   Court,   on   examination   of   the   record,   has   observed   in   the   judgment that there is nothing in the communication   of the union which would convey that the workmen   desired   to   withdraw   the   resignation   and   had   conveyed   such   decision   to   the   union   or   to   the   company.

9.4 Thus, from the record of the case and from the   decision   by   learned   industrial   court,   it   comes   out   that   the   claimants   /   workmen   failed   to   establish   that the company had not accepted their resignation   and/or   that   before   the   resignations   were   accepted,   they   had   conveyed   their   decision   to   withdraw   the   resignations. From the list of the documents filed by   Page 3 of 11 HC-NIC Page 3 of 11 Created On Mon Aug 14 10:09:46 IST 2017 C/MCA/562/2017 ORDER the  respondent  company   before  the  learned   Labour   Court, it appears that the respondent company had   placed   on   record   communication   dated   8.2.1992   whereby   it   conveyed   the   acceptance   of   resignation,   however,   the   learned   Labour   Court   seems   to   have   lost sight of the said communication. In this view of   the matter, any ground to interfere with the decision   by   the     learned   industrial   court   is   not   made   out.   When the fact that the resignations were tendered by   the workmen in pursuance of the agreement with the   representative   union   and   the   fact   that   pursuant   to   the  agreement  with   the  union  entire  department   is   closed down and subsequently, even the company is   closed   down   (i.e.   manufacturing   activity   of   the   company are discontinued in totality) and that there   is   no   material   on   record   to   establish   that   the   workmen had withdrawn the resignation before the   resignation   were   accepted   and   acted   upon   by   the   company,   the   decision   by   the   learned   industrial   court cannot be faulted. The learned counsel for the   workmen has failed to show any material from the   record or any error from the judgment of the learned   industrial court which would convince this court to   take different view from the decision of the learned   industrial court and/or to restore the decision of the   learned   Labour   Court.   Apparently,   the   learned   Labour   Court   did   not   take   into   account   certain   relevant facts and certain documents on record and   proceeded on erroneous premise. In this view of the   matter,  the decision of the learned industrial court   cannot be faulted. The petition fails and deserves to   be rejected.

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4. Having   regard   to   the   facts   and  circumstances   of   the   case,   the   court   made  certain   further   observations   in   the   said  judgment. The said observations are found in  Paras - 9.5 and 9.6. The said Paras - 9.5 and  9.6 reads thus:

9.5 However, before concluding this decision, it is   necessary and appropriate to mention that during   the hearing of these petitions, learned counsel for   the   respondent   was   asked   to   inquire   from   the   company as to whether the company is ready and   willing to honour its earlier offer/commitment (i.e.   pay the amounts to the workmen) or not. Initially,   learned counsel for the respondent company, after   taking   instruction   from   competent   officer,   submitted   that   whatever   amount   was   payable   to   the workmen as per the terms of the settlement was   offered   to   the   workmen   at   the   time   when   their   resignations   were   accepted   and   the   same   can   be   paid to the workmen and the company is ready to   pay   such   amount.   This   would   translate   into   the   fact that the company was ready to pay Rs.63,360/­   to Mr. Radheshyam Chhatrapal and Rs.50,688/­ to   Mr. Fatesinh Ulfasingh. However, having regard to   the  fact  that   long  time  has  passed   since   the  said   payment   was   offered   (which   was   not   accepted   by   the workmen), the court inquired as to whether the   company   will  pay  some additional  amount to  the   concerned workmen or not. After inquiry with the   Page 5 of 11 HC-NIC Page 5 of 11 Created On Mon Aug 14 10:09:46 IST 2017 C/MCA/562/2017 ORDER competent   officer,   Mr.   Chauhan,   learned   counsel,   submitted   that   if   the   workmen   are   ready   and   willing to accept the amount towards full and final settlement   of   all   claims,   dispute,   rights,   etc.,   the   company   is   ready   to   pay   Rs.1   Lakh   to   each   claimant.   However,   learned   counsel   for   the   petitioner   workmen   informed   the   court   that   the   workmen   are  not   inclined   to  and   have  refused   to   accept the said amount as full and final settlement   (despite the fact that not only the department, but   entire manufacturing activity of the company and   even the company is closed down). 
9.6 In this view of the matter,  the court is of the   opinion that the company should be bound by its   offer for some reasonable time and the window for   the workmen to accept the said offer of the company   should be kept open for some time.

Therefore,   while   concluding   present   petition,   this   court deems it appropriate to direct the company to   keep   the   offer   open   for   the   period   of   two   months   from   the   date   of   receipt   of   certified   copy   of   this   judgment.

On this count, it is clarified that if the concerned   workmen   submit   written   application,   directly   or   through   learned   advocate,   and   convey   their   decision   to   accept   Rs.1   Lakh   in   full   and   final   settlement of all claims, disputes, demands, rights,   etc. within period of two months from the date of   receipt of certified copy of this judgment, then the   company   will   accept   the  said   intimation   and   it   Page 6 of 11 HC-NIC Page 6 of 11 Created On Mon Aug 14 10:09:46 IST 2017 C/MCA/562/2017 ORDER shall   pay   Rs.1   Lakh   to   the   workmen   (i.e.   the   workmen   who   conveys   his   decision   to   accept   the   said   amount   towards   full   and   final   settlement)   within 4 weeks from the date when it receives such   intimation.

5. By virtue of said observation, the Court  recorded   the   submission   and   statement   by  Mr.Chauhan, learned advocate for the company  and   the   Court   also   observed   that   claimants  i.e. if the petitioners desire to put an end  the litigation and if they are interested in  accepting   Rs.1,00,000/­   in   full   and   final  settlement of all claims, disputes, demands,  rights   etc.     then     they     may     approach  Company   and   make   necessary   request   by  submitting an application. Alternatively the  company may deposit amount with the Registry  of   this   Court   and   if   claimants   desire   to  accept   the   payment   in   full   and   final  settlement   of   claims,   disputes   demands,  rights,   then   within   two   months   they   may  submit an application to the Registry.

6. The learned counsel for the workman and  Page 7 of 11 HC-NIC Page 7 of 11 Created On Mon Aug 14 10:09:46 IST 2017 C/MCA/562/2017 ORDER the   company   submitted   that   one   of   the   two  workmen   i.e.   petitioner   in   Special   Civil  Application   no.   18319   of   2003   accepted   the  said amount by declaring that he accepts said  payment in full and final settlement of all  claims,   disputes,   demands,   rights   etc.  however,   other   workman   i.e.   petitioner   in  Special   Civil   Application   no.   18031   of   2003  did not come forward to accept the amount in  full   and   final   settlement   of   all   claims,  disputes,   demands,   rights   etc.   within   the  time   limit   mentioned   in   the   judgment   dated  23.08.2006. 

7. It   appears   that   now   the   said   claimant  also   i.e.   petitioner   in   Special   Civil  Application   no.   18031   of   2003   wants   to  receive   said   amount   and   to   settle   the  dispute.   Therefore,   now   in   July,   2017   the  said other workman i.e. petitioner of Special  Civil   Application   no.   18031   of   2003   has  submitted   a   letter   /   application   dated  06.07.2017 to the Registry. 

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8. He has mentioned in the application that  the said amount of Rs. 1,00,000/­ may be paid  to him.

9. The  Registry   has   circulated  said   letter  dated   06.07.2016   under   office   note   dated  12.07.2017.

10. On   reading   said   application   /   letter  dated   06.07.2017,   it   comes   out   that   workman  is   ready   to   accept   however   he   has   not  mentioned   clearly   that   he   will   accept   said  amount   in   full   and   final   settlement   towards  all claims, disputes, demands, rights etc. 

11. However,   Mr.Acharya,   learned   advocate  for   the   workman   clarified   and   submitted   and  declared that the said workman is also ready  and willing to accept the said amount in full  and final settlement of all claims, disputes,  demands, rights etc.

12. Therefore, following order is passed.

13. The   applicant   (i.e.   petitioner   in  Special Civil Application no. 18031 of 2003,  Fatesingh   Ulfatsingh)   shall   within   1   week,  Page 9 of 11 HC-NIC Page 9 of 11 Created On Mon Aug 14 10:09:46 IST 2017 C/MCA/562/2017 ORDER submit an undertaking and declaration to the  Registry   declaring   that   he   is   ready   and  willing   to   accept   Rs.1,00,000/­   in   full   and  final   settlement   of   all   claims,   disputes,  demands,   rights   etc.   including   the   relief   /  demand     claimed   by   him   in   Special   Civil  Application no. 18031 of 2003.

14. After   the   applicant   submits   such  undertaking / declaration, the Registry shall  examine the proof of identity of the claimant  and   after   examining   proof   of   identity     and  upon being satisfied the Registry may release  the said amount and pay / disburse the said  amount sum of Rs. 1,00,000/­ to the applicant  who   has   submitted   letter   dated   06.07.2017.  The amount shall be paid by A/c Payee cheque  and   receipt   acknowledging   the   payment   shall  be taken from the workman. 

15. Mr.   Chauhan,   learned   advocate   submitted  that   the   company   has   no   objection   if   the  amount   is   paid   in   favour   of   the   said  claimant. 

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16. Therefore, with the aforesaid direction,  note   in   Misc.   Civil   Application   no.   562   of  2017 is disposed of.

(K.M.THAKER, J.) Nabila Page 11 of 11 HC-NIC Page 11 of 11 Created On Mon Aug 14 10:09:46 IST 2017