0

“Karnataka High Court Overturns Labour Court Relief, Rules Manageral or Supervisorial Role Not Classified as ‘Workmen’ Under ID Act”

Case Title: SMT. N. BHUVANESHWARI Versus THE MANAGEMENT OF M/S. AMBUTHIRTHA POWER PRIVATE LTD.,

Case No: 49982/2018

Decided on: 8th April, 2024

Facts of the case

In this case, there is a disagreement about whether Smt. Bhuvaneshwari, the applicant, meets the requirements to be considered a “workman” under Section 2(s) of the ID Act and, if so, whether M/s. Ambuthirtha Power Private Limited has good reason to fire her. She was declared a “workman” by the Labour Court, which also mandated that the management give her compensation of Rs. 5,00,000. The management countered that Bhuvaneshwari could not be categorized as a “workman” under the ID Act because her position as an Executive Secretary included managerial and supervisory responsibilities. Additionally, the management emphasized that Bhuvaneshwari’s expertise, duties, and pay were consistent with a managerial role rather than a secretarial one.

Appellant’s Contentions

According to the management, Smt. Bhuvaneshwari, the applicant, was handling administrative and supervisory responsibilities instead of clerical work as an Executive Secretary, as demonstrated by her experience, responsibilities, and pay. They contend that the Labour Court erred in granting her compensation and categorizing her as a “workman” in accordance with Section 2(s) of the ID Act without taking into account the factual evidence. Furthermore, as per the management’s assertion, Bhuvaneshwari failed to prove herself as a ‘workman’ under the ID Act, meaning she was not eligible for reinstatement or other benefits, and therefore, the Labour Court should not have decided the termination issue.

Respondent’s Contentions

The respondent, requested compensation in lieu of reinstatement, back pay, and other benefits. In response, the management challenged the termination order and asked for a lump sum payment of Rs. 5,00,000 in order to avoid classifying Bhuvaneshwari as a “workman” under the ID Act. In case , the management’s attorney made several arguments.

Court Analysis and Judgement

The petitioner was mistakenly designated by the Labour Court under the ID Act as a “workman,” even though her job as an Executive Secretary involved administrative and supervisory responsibilities rather than secretarial work. Without taking into account the applicant’s work, which was more suited for a managerial role, the Court granted compensation. The management contended that the applicant’s duties and position were managerial, not clerical, and that the Court’s decision to grant the applicant Rs. 5,00,000 in compensation was unwarranted. This was made clear by the party-in-person.

“PRIME LEGAL is a full-service law firm that has won a National Award and has more than 20 years of experience in an array of sectors and practice areas. Prime legal fall into a category of best law firm, best lawyer, best family lawyer, best divorce lawyer, best divorce law firm, best criminal lawyer, best criminal law firm, best consumer lawyer, best civil lawyer.”

Judgement Analysis Written by – K.Immey Grace

 

 

 

0

“Karnataka High Court Overturns Labour Court Relief, Rules Manageral or Supervisorial Role Not Classified as ‘Workmen’ Under ID Act”

Case Title: SMT. N. BHUVANESHWARI Versus THE MANAGEMENT OF M/S. AMBUTHIRTHA POWER PRIVATE LTD.,

Case No: 49982/2018

Decided on: 8th April, 2024

Facts of the case

In this case, there is a disagreement about whether Smt. Bhuvaneshwari, the applicant, meets the requirements to be considered a “workman” under Section 2(s) of the ID Act and, if so, whether M/s. Ambuthirtha Power Private Limited has good reason to fire her. She was declared a “workman” by the Labour Court, which also mandated that the management give her compensation of Rs. 5,00,000. The management countered that Bhuvaneshwari could not be categorized as a “workman” under the ID Act because her position as an Executive Secretary included managerial and supervisory responsibilities. Additionally, the management emphasized that Bhuvaneshwari’s expertise, duties, and pay were consistent with a managerial role rather than a secretarial one.

Appellant’s Contentions

According to the management, Smt. Bhuvaneshwari, the applicant, was handling administrative and supervisory responsibilities instead of clerical work as an Executive Secretary, as demonstrated by her experience, responsibilities, and pay. They contend that the Labour Court erred in granting her compensation and categorizing her as a “workman” in accordance with Section 2(s) of the ID Act without taking into account the factual evidence. Furthermore, as per the management’s assertion, Bhuvaneshwari failed to prove herself as a ‘workman’ under the ID Act, meaning she was not eligible for reinstatement or other benefits, and therefore, the Labour Court should not have decided the termination issue.

Respondent’s Contentions

The respondent, requested compensation in lieu of reinstatement, back pay, and other benefits. In response, the management challenged the termination order and asked for a lump sum payment of Rs. 5,00,000 in order to avoid classifying Bhuvaneshwari as a “workman” under the ID Act. In case , the management’s attorney made several arguments.

Court Analysis and Judgement

The petitioner was mistakenly designated by the Labour Court under the ID Act as a “workman,” even though her job as an Executive Secretary involved administrative and supervisory responsibilities rather than secretarial work. Without taking into account the applicant’s work, which was more suited for a managerial role, the Court granted compensation. The management contended that the applicant’s duties and position were managerial, not clerical, and that the Court’s decision to grant the applicant Rs. 5,00,000 in compensation was unwarranted. This was made clear by the party-in-person.

“PRIME LEGAL is a full-service law firm that has won a National Award and has more than 20 years of experience in an array of sectors and practice areas. Prime legal fall into a category of best law firm, best lawyer, best family lawyer, best divorce lawyer, best divorce law firm, best criminal lawyer, best criminal law firm, best consumer lawyer, best civil lawyer.”

Judgement Analysis Written by – K.Immey Grace

 

 

 

0

Delhi High Court’s Jurisdiction Limited to Cases of Perversity in Industrial Tribunal Decisions

Case title: Director General, Delhi Doordharshan Kendra v. Mohd. Shahbaz Khan, Tej Pal Manohar Paswan, Danvir Hans Raj.

Case no: LPA 242/2024, LPA 243/2024, LPA 244/2024, LPA 245/2024, LPA 246/2024,

Dated on: 22nd March, 2024

Quorum: Hon’ble Justice Rekha Palli and Hon’ble DR. Justice Sudhir Kumar Jain.

Facts of the case:

Appeals filed under Clause X of the Letters Patent LPA 242/2024 & other connected appeals to assail five similar orders dated 12.12.2023 passed by the learned Single Judge in a batch of Writ Petitions. Vide the impugned order dated 12.12.2023, the learned Single Judge has rejected the Appellant’s challenge to the award dated 15.10.2007 passed by the learned Industrial Tribunal (Tribunal), wherein the learned tribunal after holding that the termination of the respondents’ service by the Appellant was illegal, has directed the Appellant to reinstate them with 25% back wage.

Contentions of the appellant:

The learned Tribunal as also the learned Single Judge have failed to appreciate that the respondents were never employed with the Appellant but had in fact, been engaged by one M/S Navnidh Carriers who was engaged by the appellant on 31.07.1998, to provide manpower services as and when required. The learned Tribunal has not examined as to whether the Respondents had completed 240 days of continuous service in the year immediately preceding their termination, which aspect the learned Single Judge also over looked. Instead of placing the onus to prove the existence of an employer-employee relationship on the respondents, the learned Single Judge has wrongly shifted the said onus on the Appellant.

Contentions of the respondent:

The learned Tribunal has, as a matter of fact, found that the respondents had been working with the Appellant/Organization much prior to 31.07.1998, i.e; the date when the appellant had, with malafide intention, engaged M/S Navnidh Carriers for providing manpower services and therefore, it was evident that the respondents had initially been engaged by the appellant itself. The experience certificate dated 13.07.1999 issued by the appellant to one of the respondents wherein it has been categorically stated that he had been working with the appellant as a casual labourer since July 1997 and was an honest and hardworking worker. The appellant admittedly does not have any licence to engage workmen through a contractor as is mandated under the Contract Labour (Regulation and Abolition) Act, 1970 (the CLRA Act), it is evident that the respondents were to be treated as employees of the appellant itself. He, therefore, prays that the appeals be dismissed.

Legal provisions:

Contract Labour (Regulation and Abolition) Act, 1970 (the CLRA Act)- regulated the employment of contract labor in certain establishments and provides for its abolition in certain circumstances. Article 226 of the Constitution- gives the High court the power to issue orders, directions and writs to any person or the authority including the Govt for the enforcement of Fundamental rights.

Issue:

Whether Respondents were engaged by the Appellant and were illegally terminated? When can Writ Court interfere with the factual findings of fact of Labour/Industrial Tribunal?

Courts judgement and analysis:

The learned Tribunal as also the learned Single Judge, after taking into account the gate passes as also experience letter dated 13.07.1999 issued by the appellant to one of the respondents have come to a conclusion that the respondents were employed with the appellant/ organisation and had been illegally terminated. Both the learned Single Judge as also the learned Tribunal found upon appreciation of evidence that the purported contract by the appellant in favor of M/s Navnidh Carriers was sham and an attempt to conceal the engagement of the respondents with the appellant. The learned counsel for the appellant has not been able to give any explanation whatsoever for the issuance of the said experience certificate if the respondent namely Mohd. Shahbaz Khan was not their employee. The Appellant did not have any license, as mandated under the CLRA Act, 1970, to engage workmen through a contractor, hence it is evident that they were directly engaged by the appellant. In the light of these categoric factual findings by the learned Tribunal, which cannot, in any manner, said to be perverse or contrary to the evidence lead before the learned Tribunal, we are of the view that it was neither open for the learned Single Judge to interfere with these findings in exercise of its writ jurisdiction nor is it open for this Court to examine these questions of fact. In Dinesh Kumar v. Central Public Works Department, 2023 SCC On-Line Del 6518, wherein the co-ordinate Bench after examining various decisions of the Apex Court held that writ Court can interfere with the factual findings of fact recorded in the industrial award only if the same are perverse or are entirely unsupported by evidence. The jurisdiction of the High Court in such matters is quite limited. In Management of Madurantakam Coop. Sugar Mills Limited v. S. Viswanathan, (2005) 3 SCC 193, the Apex Court, held that the Labour Courts/Industrial Tribunals as the case be is the final court of facts, unless the same is perverse or not based on legal evidence, which is when the High Courts can go into the question of fact decided by the Labour Court or the Tribunal.  The Hon’ble Supreme Court in State of Haryana v. Devi Dutt, (2006) 13 SCC 32, has held that the writ Court can interfere with the factual findings of fact only if in case the Award is perverse; the Labour Court has applied wrong legal principles; the Labour Court has posed wrong questions; the Labour Court has not taken into consideration all the relevant facts; or the Labour Court has arrived at findings based upon irrelevant facts or on extraneous considerations. In the present case, the Labour Court has arrived at a conclusion based upon the evidence adduced by the parties and the learned Single Judge has affirmed the findings of fact again after minutely scanning the entire evidence, and therefore, the question of interference by this Court does not arise. In the light of the aforesaid, we find absolutely no reason to interfere with the concurrent findings of fact arrived at by the learned Tribunal and the learned Single Judge to hold that the respondents were engaged by the appellant and were illegally terminated. The appeals being meritless are, along with all pending applications, dismissed.

“PRIME LEGAL is a full-service law firm that has won a national award and has more than 20 years of experience in an array of sectors and practice areas. Prime legal fall into a category of best law firm, best lawyer, best family lawyer, best divorce lawyer, best divorce law firm, best criminal lawyer, best criminal law firm, best consumer lawyer, best civil lawyer”.

Judgement reviewed by- Parvathy P.V.

Click here to read the judgement

0

Madras High Court Says Certiorari writ should not intervene in lower court rulings unless a distinct legal error is evident.

Chairman-cum-Managing Director, Assistant Manager – Administration,   and Manager of Hotel Tamil Nadu

                            VS

Presiding Officer of the Labour Court, Coimbatore and S. Saroja Devi.

DATED: 12.06.2023

Coram: THE HON’BLE MR JUSTICE V. LAKSHMINARAYANAN

Citation: Writ Petition No.20259 of 2014

Facts

The petitioner, the management, filed a case against Smt. S. Saroja Devi, a housekeeper responsible for overseeing the work of sweepers and sanitary workers. The management accused her of not fulfilling her duties and issued multiple charge memorandums. After a specific incident, she was suspended pending an inquiry and later dismissed after a domestic inquiry.

Saroja Devi raised an industrial dispute and attempted conciliation, but it failed. The matter was then taken to the Labour Court, Coimbatore, where the court questioned the fairness of the domestic inquiry. The court concluded that the inquiry was not conducted properly and gave the management an opportunity to present additional evidence.

The petitioners argue that S. Saroja Devi was terminated for just cause, and that the Labour Court did not give them a fair hearing. The respondents argue that S. Saroja Devi was not terminated for just cause, and that the Labour Court gave the petitioners a fair hearing.

Issues

Whether S.Saroja Devi was terminated for just cause?

Whether the Labour Court gave the petitioners a fair hearing?

Whether the writ of certiorari can be used to quash orders that are made by Labour Courts?

Arguments

Arguments of the petitioners:

The petitioners argued that S.Saroja Devi was terminated for just cause. They stated that she was terminated for serious misconduct, including absenteeism, insubordination, and theft.

The petitioners also argued that the Labour Court did not give them a fair hearing. They stated that the Labour Court did not consider all of the evidence that they presented, and that the Labour Court’s decision was based on a mistake of law.

The petitioners argue that the writ of certiorari can be used to quash orders that are made by Labour Courts if there is a clear error of law.

Arguments of the respondents:

The respondents argued that S.Saroja Devi was not terminated for just cause. They stated that she was terminated for reasons that were not related to her job performance, and that the termination was therefore unfair.

The respondents also argued that the Labour Court gave the petitioners a fair hearing. They stated that the Labour Court considered all of the evidence that was presented, and that the Labour Court’s decision was based on a sound assessment of the facts.

The respondents argue that the writ of certiorari should not be used to interfere with the decisions of Labour Courts unless there is a gross injustice.

Case analysis

During the enquiry, the petitioner management presented witnesses, but one of them inadvertently supported the duty of the Sweepers cum Sanitary Workers rather than the management’s case. The other evidence provided by the management was considered general and did not support their argument. The witness involved in issuing the suspension order did not specify any room defects, leading the labour court to believe the charge was an afterthought. As for the remaining charges, there was only oral evidence without additional support. Based on the evaluation of evidence, the labour court concluded that the charges were not proven. Thus, the labour court found no issues with reinstating the petitioner with full benefits. However, since the employee did not show efforts to find a new job, the court granted only 25% of back wages. S. saroja devi challenged this and pleaded for 75% of back wages.

Judgement

The High Court upheld the Labour Court’s decision. The bench found that the petitioners had not provided any evidence to support their claims and that the Labour Court had been correct to find that the respondent had been treated unfairly.

The bench concluded its judgment by stating the following:

“In the absence of any evidence to support the petitioners’ claims, we are unable to find that the respondent was terminated for just cause. We therefore uphold the order of the Labour Court directing the reinstatement of the respondent and directing the petitioners to pay her back wages.”

The high court ordered that instead of 25% back wages, the management is directed to pay 50% back wages to S.Saroja Devi (employee) and in all other respects the award of the labour court stands confirmed. The management is directed to settle the back wages within a period of twelve weeks.

Conclusion

The High Court’s decision in the case of S.Saroja Devi is a mixed bag. It is a setback for the petitioners, but a victory for S.Saroja Devi. The decision sends a message to employers in Tamil Nadu that they cannot terminate employees without providing evidence to support their claims. The writ of certiorari is a powerful tool that can be used to quash orders that are made by lower courts, however this case suggested that the writ of certiorari should not be used to interfere with the decisions of lower courts unless there is a clear error of law. This principle is crucial for upholding the rule of law, which ensures that all individuals, including the government, are bound by the law. If higher courts could intervene in lower court decisions without clear legal errors, it would undermine the fundamental principle of the rule of law.

“PRIME LEGAL is a full-service law firm that has won a National Award and has more than 20 years of experience in an array of sectors and practice areas. Prime legal fall into a category of best law firm, best lawyer, best family lawyer, best divorce lawyer, best divorce law firm, best criminal lawyer, best criminal law firm, best consumer lawyer, best civil lawyer.”

JUDGEMENT REVIEWS BY JANGAM SHASHIDHAR.

Click here to view Judgement