High Court · 2025

W.P.Nos.28509 of 2015 & 2196 of 2017IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 04.03.2025CORAM :THE HONOURABLE MR. JUSTICE M. DHANDAPANIW.P.Nos.28509 of 2015 & 2196 of 2017andM.P.No.1 of 2015 & W.M.P.No.2171 of 2017W.P.No.28509 of 2015The Chairman,M/s.Chemfab Alkalis Ltd.,Chlorate Division,Abishekapakkam,Poornakuppam Post,Pondicherry – 605 007.... PetitionerVs.1.The Presiding Officer, Labour Court, Pondicherry.2.Chemfab Alkalis Thozhilalargal Sangam, Reg.No.1552/RTU/2008, Office No.42, Cuddalore Road, Bharathi Mill Thittu, Mudaliar Pettai, Pondicherry – 4, Rep. by its Secretary, K.Suresh... RespondentsW.P.No.2196 of 2017Chemfab Alkalis Thozhilalargal Sangam,Reg.No.1552/RTU/2008,having its office atNo.42, Cuddalore Road,Page No.1 of 12https://www.mhc.tn.gov.in/judis https://www.mhc.tn.gov.in/judis W.P.Nos.28509 of 2015 & 2196 of 2017Bharathi Mill Thittu, Mudaliarpet,Pondicherry – 4 represented by itsSecretary, K.Suresh... PetitionerVs.1.The Presiding Officer, Labour Court, Pondicherry.2.The Chairman, M/s.Chemfab Alkalis Ltd., having office at Gnananandha Place, Kalapet, Pondicherry – 605 007.... RespondentsPrayer in W.P.No.28509 of 2015 : Writ Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Certiorari, to call for the entire records connected with the award dated 19.03.2015 made in I.D.No.19 of 2009 on the file of the 1st respondent, Labour Court, Puducherry and quash the same.Prayer in W.P.No.2196 of 2017 : Writ Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Certiorari, to call for the records relating to the impugned award of the first respondent passed in I.D.(L) No.19/2009 dated 19.03.2015 and quash the same in so far as denial of reinstatement in service, back-wages with continuity of service and award of lesser compensation is concerned.W.P.No.28509 of 2015Page No.2 of 12https://www.mhc.tn.gov.in/judis https://www.mhc.tn.gov.in/judis W.P.Nos.28509 of 2015 & 2196 of 2017For Petitioner:Mr.Sai Prasadfor M/s.Sai Raaj AssociatesFor Respondents:Labour Court [R1]Mr.P.Manoj Kumar [R2]W.P.No.2196 of 2017For Petitioner:Mr.P.Manoj Kumar For Respondents:Labour Court [R1]Mr.Sai Prasadfor M/s.Sai Raaj Associates [R2]*****COMMON ORDERThese two writ petitions attack the award passed by the Labour Court, Pondicherry, in I.D.No.19 of 2009, dated 19.03.2015, but for different reasons.2. WP No.28509 of 2015, filed by the management, seeks to strike down the entire award.3. WP No.2196 of 2017, filed by the employer's union (hereinafter referred to as 'the Sangam'), seeking enhancement of compensation from Rs.1,00,000/- to Rs.2,00,000/-.Page No.3 of 12https://www.mhc.tn.gov.in/judis https://www.mhc.tn.gov.in/judis W.P.Nos.28509 of 2015 & 2196 of 20174. Brief facts are as follow:The management factory was started in the year 1983 and it was engaged in the manufacture of chlorate, which was used for rocket fuel and bleaching purpose in paper and textile mills. On 01.04.2000, the factory was amalgamated with Chemfab Alkalis Ltd, Kalapet. After the amalgamation, Chemfab Alkalis Ltd took control of the Chlorate divison and its entire staff. Though both the divisions were amalgamated, there was huge difference between the wage and service conditions of both the divisions. The workers of the Alkalis division got their wage settlement in the year 2008. On comparison with the alkalis division, according to the sangam, the chlorate workers were not even paid 1/3rd of the said settlement. To air their grievances in a democratic manner, the sangam was formed and it was registered on 04.08.2008 under the Trade Union Act. On 10.09.2008 the sangam submitted a charter of demands for wage revision and other allowances to the management. However, no positive response was forthcoming. On 15.09.2008 and 16.10.2008, the sangam submitted that representations to the management seeking for payment of bonus. The management called the sangam members for negotiations but avoided negotiations with regard to enhancement of wages and payment of bonus. The sangam was threatened with lock out. Ultimately, on Page No.4 of 12https://www.mhc.tn.gov.in/judis https://www.mhc.tn.gov.in/judis W.P.Nos.28509 of 2015 & 2196 of 201730.03.2009, the management locked out the factory. The sangam raised a dispute between the Labour Officer. The management insisted on the workers to submit a letter of apology, which the sangam members refused. Thereafter on 03.06.2009, the management representative appeared before the Deputy Commissioner of Labour and submitted that a letter of permanent closure of the factory, citing the workers for lesser productivity. The workers were informed that their services were terminated with effect from 03.06.2009 and that their compensation would be remitted in their bank account. The conciliation proceedings ended in failure and the conciliation officer submitted his failure report dated 20.08.2009 to the Government. Thereafter, the dispute was referred to the Labour Court, Pondicherry for adjudication and the same was taken on file as I.D.No.19 of 2009. On the side of the workers, two witnesses were examined and 11 documents were marked; on the side of the management also two witnesses were examined and 69 documents were marked. After an analysis of the entire case before it, the Labour Court held that the suspension of plant operation in Chlorates division and closure of chlorates division was declared illegal and the workmen of the sangam were directed to be paid a compensation of Rs.1,00,000/- each. Impugning the said order, the writ petitions are filed seeking the prayer as Page No.5 of 12https://www.mhc.tn.gov.in/judis https://www.mhc.tn.gov.in/judis W.P.Nos.28509 of 2015 & 2196 of 2017mentioned above.5. Learned counsel appearing for the sangam submitted that, the management has always given step-motherly treatment to the members of the sangam. When the amalgamation happened as per the orders of the High Court, the workers of the sangam wilfully joined the management factory. They were under the hope and impression that they would be treated on a par with the workers in the Alkalis division. Only after joining the factory, they came to know that the salary that was paid to the workers in the Alkalis division was much higher than the salary paid to the members of the sangam. According to the learned counsel, to raise their genuine grievances, the workers from the Chlorates Division formed a union which was duly registered under the Trade Union Act. The management have entered into an agreement that the workers of the Alkalis Division and reached a wage settlement in the year 2008. When the workers of the sangam raised a similar demand, their genuine request was not considered favourably and the management was hell bent on employee diversion in tactics. Left with no other option, the workers gave representations to the management to negotiate for a better wage and bonus settlement. However, the management did not pay any respect to Page No.6 of 12https://www.mhc.tn.gov.in/judis https://www.mhc.tn.gov.in/judis W.P.Nos.28509 of 2015 & 2196 of 2017the genuine aspirations of the workers and closed the unit on a false reason that the workers were employing go-slow tactics. The labour court has rightly concluded that the said accusation was not proved before the labour court and therefore, the court was pleased to hold that the closure of the union was illegal. Having held that the closure was illegal, the learned counsel submitted that the labour court ought to have granted compensation of Rs.2,00,000/- as prayed for by the workers union. Therefore, he prays for allowing of writ petition filed by the sangam and dismissal of the writ petition filed by the management.6. Per contra, learned counsel appearing for the management contended that the management did not show any partiality between the workers and all the workers were treated equally. Though the workers of Alkalis division were there in service for a very long period, they never formed any union or disrupted the workers. Soon after the amalgamation, the workers from Chlorates division formed a union and made unjust demands. When the management did not bent to their threats, the sangam started using go-slow tactics, which has affected the production of the factory to a very large extent. The factory was not able to meet the demands and supply and left with no other option, the factory had to be Page No.7 of 12https://www.mhc.tn.gov.in/judis https://www.mhc.tn.gov.in/judis W.P.Nos.28509 of 2015 & 2196 of 2017closed. Further, he submitted that the management has produced as many as 69 documentary evidence to prove the genuineness on their side. However, the labour court has erroneously held that the closure of Chlorates division factory was illegal. He also submitted that the award of compensation of Rs.1,00,000/- each to the workers of the sangam is totally unjustified and a case of misplaced sympathy. Therefore, he submitted that the order of the labour court deserves interference of this court.7. Heard the learned counsel appearing for the sangam as well as the management and also perused the materials available on record.8. The short point to be decided in these two writ petitions is whether the management was correct in closing the factory and whether the sangam is justified in seeking enhanced compensation.9. The management has taken a stand before the labour court that the nature of job, skills required to execute the job and service conditions are totally different between the Chlorates division and the Alkalis division. The management has also let in evidence and produced Page No.8 of 12https://www.mhc.tn.gov.in/judis https://www.mhc.tn.gov.in/judis W.P.Nos.28509 of 2015 & 2196 of 2017documents to that effect. However, there is nothing on record to show that the workers of the sangam were put on notice before the amalgamation that there would be pay disparity and they would not be treated on par with the workers of the Alkalis division. The management, in the affidavit filed in support of this writ petition, has stated that there were only 13 workmen in the Chlorates division, however, there is no whisper about the number of workers in the Alkalis division. When the amalgamation has taken place, this Court is not able to understand as to why the management was having difficulty in treating the 13 workers equally with that of the workers in the Alkalis division. The 13 workers is not a huge number. This disparity in pay and payment of bonus is nothing but unfair labour practice. Though the management has taken a contention before the labour that the workers of the sangam adopted go-slow tactics, R.W.1, in his cross-examination has clearly stated that there is no evidence in support of such accusation. The management has produced Ex.R.53 and Ex.R.54 viz., log books relating to the work schedule for the relevant period. However, the management has not proved any clear terms that the workers were successful in slowing the production. The management has also taken a stand that the Chlorates division was locked out and not the Alkalis division. This itself clearly Page No.9 of 12https://www.mhc.tn.gov.in/judis https://www.mhc.tn.gov.in/judis W.P.Nos.28509 of 2015 & 2196 of 2017shows that the management had a grudge against the workers of the sangam. The management has not justified as to what prompted them to close the unit forever. The management should have taken into consideration the fact that by closure not only the employees but also their families who would suffer. Even before the conciliation officer, the management wanted the employees to give written apology. When the workers were hesitant to give such an apology, the management withdrew from conciliation talks. This also shows that the management wanted to change the workers in one way or other. They had indeed succeeded by closing the unit once and for all. Therefore, this Court has no hesitation to hold that the closure of Chlorates division by the management is illegal and concurs with the findings of the labour court.10. Now, the question that would remain to be answered is that whether the workers are entitled for an enhanced compensation of Rs.2,00,000/-.11. The labour court awarded a sum of Rs.1,00,000/- as compensation to the members of the sangam. The labour court has also given reasons for fixing compensation at Rs.1,00,000/-, indeed the labour Page No.10 of 12https://www.mhc.tn.gov.in/judis https://www.mhc.tn.gov.in/judis W.P.Nos.28509 of 2015 & 2196 of 2017court has directed the management to pay the said sum along with 6% interest within a period of three months from the date of the order, failing which, the said amount would carry interest of 9%. The labour court is perfectly justified in fixing the compensation at Rs.1,00,000/- for each of the workers.12. At the time of admission of W.P.No.28509 of 2015, this Court had granted interim stay of the order of the labour court on condition that the management shall deposits a sum of Rs.5,00,000/- to the credit of I.D.No.19 of 2009. The said order was passed in the year 2015, now we are in the year 2025 and a decade has passed. The said amount of Rs.5,00,000/- would have accrued interest over the period. The workers would be entitled to share the accrued interest equally. The management is directed to deposit the remaining amount before the labour court by calculating a sum of Rs.1,00,000/- for each of the members of the sangam as ordered by the labour court, within a period of two (2) weeks from the date of receipt of a copy of this order. On such deposit, the workers would be entitled to withdraw their share of compensation along with the accrued interest, which would be divided equally amongst them.Page No.11 of 12https://www.mhc.tn.gov.in/judis https://www.mhc.tn.gov.in/judis W.P.Nos.28509 of 2015 & 2196 of 2017M.DHANDAPANI, J.sp13. With the above observations and directions, these Writ Petitions are dismissed. No costs. Consequently, the connected miscellaneous petitions are also dismissed.04.03.2025Index : Yes / No Speaking order / Non-speaking orderNeutral Citation Case : Yes / NospToThe Presiding Officer,Labour Court,Pondicherry.W.P.Nos.28509 of 2015 & 2196 of 2017Page No.12 of 12https://www.mhc.tn.gov.in/judis