The Management Of vs The Deputy Labour Commissioner
- Neutral2023:KHC:33876
Ratio decidendi
The rule this decision rests on
1. Where amendments to Model Standing Orders are issued by the Government, such amendments do not automatically apply to industrial establishments that have certified standing orders already in place. Any modification of certified standing orders requires a formal application under Section 10 of the Industrial Employment (Standing Orders) Act, 1946, followed by adjudication by the Certifying Officer with reasons, not automatic incorporation of the amended Model Standing Orders. 2. In adjudicating upon applications to modify certified standing orders, the Certifying Officer and Appellate Authority must consider the principles of fairness and reasonableness prescribed under Section 4 of the Industrial Employment (Standing Orders) Act, 1946, with regard to the specific factors enumerated in Guest Keen Williams case: the nature of work assigned, wage structure, retirement benefits and amenities, climate of work, age of superannuation in comparable industries in the region, and prevailing practice in the industry. 3. In the context of determining the appropriateness of retirement age, the Certifying Officer must independently ascertain whether a particular manufacturing process is hazardous or arduous for workmen of a specific age group, not merely whether the industry is designated as hazardous under the Factories Act, 1948; this determination requires physical inspection of the industrial establishment and assessment of whether persons aged 58 to 60 years can safely perform the work without harm. 4. Quasi-judicial authorities discharging functions under the Industrial Employment (Standing Orders) Act, 1946, including the Certifying Officer and Appellate Authority, are obliged to record reasons in their orders indicating application of mind to all material contentions, including objections raised about the nature of work and hazards involved; orders that merely record submissions of parties without adjudicating on substantive issues and without reasons suffer from non-application of mind and constitute legal infirmities remediable by writ jurisdiction.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
-1- WP No. 4114 of 2021
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 6TH DAY OF SEPTEMBER, 2022
BEFORE ® THE HON'BLE MR JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 4114 OF 2021 (L-RES) BETWEEN:
THE MANAGEMENT OF M/S MERSEN INDIA PVT. LTD., NO.5, BOMMASANDRA INDUSTRIAL AREA BOMMASANDRA, BENGALURU-560099 REP. BY MANAGING DIRECTOR ...PETITIONER (BY SRI. C.K. SUBRAMANYA, ADVOCATE OF BHOOPALAM LAW ASSOCIATES-PH)
AND:
1. THE DEPUTY LABOUR COMMISSIONER AND THE CERTIFYING OFFICE UNDER THE IE(SO) ACT, REGION 2 KARMIKA BHAVANA BANNERUGHATTA ROAD BENGALURU-560029
Digitally signed by 2. THE ADDITIONAL LABOUR COMMISSIONER POORNIMA (INDUSTRIAL RELATIONS) SHIVANNA Location: HIGH AND THE APPELLATE AUTHORITY UNDER COURT OF KARNATAKA THE INDUSTRIAL EMPLOYMENT (STANDING ORDERS ACT), 1946 DAIRY CIRCLE, BANNERGHATTA ROAD BENGALURU-560029
3. MERSEN INDIA PVT. LTD., WORKERS' UNION ANEKAL TALUK, BOMMASANDRA INDUSTRIAL AREA BOMMASANDRA, BENGALURU-560099 REP. BY THE VICE PRESIDENT ... RESPONDENTS (BY SRI. BHOJE GOUDA T. KOLLER, AGA FOR R1 AND R2-PH; SRI. H.K. NAGABHUSHAN, ADVOCATE FOR C/R3-PH) -2- WP No. 4114 of 2021
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO ORDER DATED 30.3.2019 PASSED BY THE FIRST RESPONDENT IN NO.DLCB2/SO(T)/CR-14/2018-19/231 AMENDING THE CERTIFIED STANDING ORDER OF THE COMPANY INCREASING THE AGE OF RETIREMENT FROM 58 YEARS TO 60 YEARS (ANNEXURE-F) AND ETC.
THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP AND HAVING BEEN RESERVED FOR ORDERS ON 11.08.2022, THIS DAY, THE COURT PRONOUNCED THE FOLLOWING:
ORDER
1. The petitioner is before this Court seeking for the
following reliefs:
i. Order dated 30.3.2019 passed by the First Respondent in No.DLCB2/SO(T)/CR-14/2018- 19/231 amending the Certified Standing order of the Company increasing the age of retirement from 58 years to 60 years (Annexure-F).
ii. Order dated 1.12.2020 passed by the Second Respondent in SOA/CR-05/2019-20 increasing the age of retirement from 58 years to 60 years (Annexure-J).
iii. Issue a writ of certiorari or any other appropriate writ or direction quashing the following orders:
a. Order dated30.3.2019 passed by the First Respondent in No.DLCA2/SO(T)/CR- 14/2018-19/231 amending the Certified Standing order of the Company increasing the age of retirement from 58 years to 60 years (Annexure-F).
b. Order dated1.12.2020 passed by the Second Respondent in NO.SOA/CR-05/2019-20 -3- WP No. 4114 of 2021
increasing the age of retirement from 58 years to 60 years (Annexure-J).
c. Grant any other relief(s) as may be deemed fit and proper by this Hon'ble Court, in the interest of justice and equity.
2. The petitioner is stated to be a Company engaged in
the business of manufacture of Industrial Carbon and
Carbon Brushes, which is allegedly classified as
hazardous industry as defined under Section 2(cb) of
the Factories Act, 1948. The said Section 2(cb) of the
Factories Act is reproduced hereunder for easy
reference:
1 [(cb) "hazardous process" means any process or activity in relation to an industry specified in the First Schedule where, unless special care is taken, raw materials used therein or the intermediate or finished products, bye- products, wastes or effluents thereof would--
(i) cause material impairment to the health of the persons engaged in or connected therewith, or
(ii) result in the pollution of the general environment:
Provided that the State Government may, by notification in the Official Gazette, amend the First Schedule by way of addition, omission or variation of any industry specified in the said Schedule;] -4- WP No. 4114 of 2021
3. The service conditions of the workmen are stated to
be governed by the Certified Standing Orders of the
Company as also the Memorandum of Settlement
entered into between the recognized Union and the
employer from time to time.
4. The Standing Orders were last certified by the
Certifying Officer on 18.03.2000 where the age of
retirement was enhanced from 55 years to 58 years
which is also confirmed by the Appellate Authority by
order dated 14.11.2002 and by this Court in
W.P.No.45985/2002 on 10.07.2007.
5. A Tripartite Wage Settlement came to be entered
into with the respondent No.3 on 13.02.2017. It is
contended that the said settlement is a package deal
and as such, there cannot be any claim made
contrary to the settlement arrived at in the year
2017.
-5- WP No. 4114 of 2021 6. Clause 36 of the Settlement Agreement, which deals
with Package Deal is reproduced hereunder for easy
reference:
36. Package Deal: This Settlement has been entered into as a Package Deal in full and final settlement of all the demands raised by the Union in the Charter of Demands dated 05.1.2016 and the issues raised during the course of discussions. All other Issues which have been raised in the Charter of Demands and which have not been specifically dealt in the settlement shall be treated as having been dropped and not pressed by the Union. The Union and the workmen further agreed that they will not raise any fresh demand during the currency of this Settlement, which would impose additional financial liability on the Management directly or Indirectly as this Settlement is a Package Deal.
7. Clause 37 of the Settlement Agreement also being
relevant is reproduced hereunder for easy reference:
"37. All other existing terms and conditions, practices which have not been specifically altered or modified under this settlement shall continue to be in force".
8. The petitioner contends that despite the settlement,
the respondent No.3-Union had submitted an
amendment to the existing Standing Orders seeking
for enhancement of the retirement age to 60 years
and if need be upto 62 years on satisfaction of
certain conditions.
-6- WP No. 4114 of 2021 9. It is stated that the said application was submitted in
furtherance of the amendment to the Model Standing
Orders issued by the Government of Karnataka vide
notification dated 27.03.2017 whereunder the
retirement age has been enhanced from 58 years to
60 years. On such an application being submitted,
the petitioner's management had filed a detailed
objection opposing the application.
10. The Original Authority had vide its order dated
30.03.2019 allowed the application, rejected the
contention of the petitioner thereby allowing the
amendment. Aggrieved by the said order, the
petitioner had filed an appeal before the Appellate
Authority i.e., respondent No.2 herein. Respondent
No.2 has vide its order dated 01.12.2020 confirmed
the order of the respondent No.1 and it is in that
background, the petitioner is before this Court
seeking for the aforesaid reliefs.
-7- WP No. 4114 of 2021 11. Sri.C.K.Subramanya, learned counsel for the
petitioner would submit that:
11.1. Neither the Original Authority nor the Appellate
Authority has considered the matter in the right
perspective. The said authorities have, merely
because the Model Standing Orders were
amended by the Government of Karnataka,
applied the amendment insofar as the Standing
Orders already certified in respect of the
petitioner-establishment which could not be so
done.
11.2. There is a Binding Memorandum Wage
Settlement, which continues to be in force
between the petitioner's management and the
workmen including respondent No.3-Union and
as such, during the subsistence of such
Memorandum of Wage Settlement, there could
not be any amendment to the Standing Orders, -8- WP No. 4114 of 2021
which would have an adverse impact on the
Memorandum of Wage Settlement.
11.3. Mere amendment of the Model Standing Orders
would not make the said amendment
automatically applicable to the industrial
establishment of the petitioner, the same would
be required to be certified upon an application
being made. The Certifying Officer would have
to consider all aspects relevant thereto and
pass a reasoned order.
11.4. In the present case, though an application to
amend the Certified Standing Orders was made,
the Certifying Authority as also the Appellate
Authority have not considered the binding
nature of the Memorandum of Wage Settlement
as also the non-applicability of the amendment
to the Model Standing Orders contrary to or in
violation of settlement already arrived at.
-9- WP No. 4114 of 2021 11.5. In the present case, the petitioner being
involved in manufacturing of hazardous
material coming within the ambit and purview
of Section 2(cb) of the Factories Act, this aspect
has also not been considered by the Certifying
Authority inasmuch as, such manufacturing
activities could be harmful and hazardous for
people over the age of 58 years and as such,
the Certifying Authority ought not to have
increased the age of retirement from 58 years
to 60 years with a further option upto 62 years.
11.6. The Model Standing Orders are issued only as a
guideline. It is not required that the said Model
Standing Orders are applied in their entirety to
an industrial establishment. The applicability or
otherwise could be with such modification as
may be required for that particular industry.
Thus, the Certifying Authority and the Appellate
Authority have misconstrued themselves while
- 10 -
WP No. 4114 of 2021 making the amended Model Standing Orders
applicable in its entirety without an agreement
having reached between the management and
workers more particularly since there is already
a binding Memorandum of Wage Settlement
which was in force.
11.7. When originally the Industrial Employment
(Standing Orders) Act, 1946, was enacted there
was no provision in the Standing Orders as
regards the retirement age or superannuation
age of a worker. It was only in the year 1982
that the age of superannuation came to be
provided as one of the matters under the
Standing Orders and by the said amendment in
the year 1982, the age for retirement or
superannuation of the workmen was stated as
"may be 58 years or such other age as may be
agreed upon between the employer and
workmen by any agreement".
- 11 -
WP No. 4114 of 2021 11.8. Thus, it is not mandatory for any establishment
to apply and/or adopt the Model Standing
Orders in its entirety, it is always open to
negotiation between the management and the
workmen on which basis the said terms could
be agreed upon.
11.9. The Certifying Officer has no power to act
contrary to the Binding Settlement Agreement
which had been entered into. If the Certifying
Officer were permitted to certify the Standing
Orders contrary to the Binding Agreements,
there would be no purpose in arriving at a
settlement.
11.10.He relies upon the decision of the Hon'ble Apex
Court in the case of Guest Keen Williams Pvt.
Ltd., vs. P.J.Sterlling reported in AIR 1959
SC 1279 wherein certain guidelines have been
prescribed by the Hon'ble Apex Court as
- 12 -
WP No. 4114 of 2021 regards fixing the age of retirement. By relying
on the above decision, he submits that the
points which are required to be taken into
consideration are as under:-
a. What is the nature of work assigned to the employees in the course of their employment?
b. What is the nature of wage structure paid to them?
c. What are the retirement benefits and other amenities available to them?
d. What is the character of the climate where the employees work and what is the age of superannuation fixed in comparable industries in the same region?
e. What is generally the practice prevailing in the industry in the past in the mater of retiring its employees.
f. The inspection of the establishment by the Authorities in order to assess whether the work is of hazardous nature.
11.11.In the present case, none of the guidelines laid
down by the Hon'ble Apex Court in Guest Keen
Williams Pvt. Ltd. Case have been followed.
The Tripartite Settlement has been wrongly
interpreted by the Certifying Authority and the
Appellate Authority.
- 13 -
WP No. 4114 of 2021 11.12.It is required of the Certifying Authority when
an application for modification is filed as also
the Appellate Authority when an appeal is filed
to visit the industry premises, consider the
application and the objections filed to the
application on the basis of ground realities and
if required by recording evidence as regards the
same.
11.13.The age fixed in the Model Standing Orders
would not apply automatically nor would it be a
uniform retirement age inasmuch as the
retirement age would vary from industry to
industry as also on the nature of the work in
each industrial establishment.
11.14.He refers to the decision of this Court in
W.P.No.12137/2014 dated 08.07.2015
[Wipro Infrastructure Engineering vs.
Additional Labour Commissioner
(Administration) and Appellate Authority,
- 14 -
WP No. 4114 of 2021 Bangalore and ors] wherein this Court had
set aside the order of the Certifying Authority
and the Appellate Authority increasing the
retirement age from 58 years to 60 years on
the ground that the authorities concerned had
not inspected the factory in order to ascertain if
the manufacturing activities and/or other
activities being carried out are hazardous in
nature or otherwise.
11.15.He relies upon the decision of the Division
Bench of this Court in W.A.No.2482/2015
dated 7.11.2015 [Wipro Infrastructure
Engineering vs. Additional Labour
Commissioner (Administration) and
Appellate Authority, Bangalore and ors]
wherein the Division Bench held that if need be
evidence could be led as regards the
amendment to the Standing Orders.
- 15 -
WP No. 4114 of 2021 11.16.He relies upon the decision of this Court in
W.P.No.115417/2019 dated 26.11.2019
[The Management of M/s.Grasim
Industries Ltd., vs. The President/General
Secretary, Aditya Birla Employees Union
and ors] to contend that in similar matters, the
orders passed by the Certifying Authority and
the Appellate Authority had been stayed by this
Court.
11.17.He relies upon the decision of the Hon'ble Apex
Court in the case of Barauni Refinery
Pragatisheel Shram Parishat vs. Indian Oil
Corporation Ltd., reported in AIR 1990 SC
1801 more particularly Paras 6 to 10 which are
reproduced hereunder for easy reference:
6. While hearing these two writ petitions the High Court formulated two points for consideration, namely,
(i) "Whether the Certifying Authority under the Standing Orders Act has the jurisdiction to entertain an application for amendment of a Standing Order which fixes the age of retirement of the workmen as 58 years which is in consonance with the model Standing Order and enhances the age of retirement to 60 years
- 16 -
WP No. 4114 of 2021 without first giving any finding whether it is practicable to give effect to the model Standing Order" and (ii) "Whether the settlement arrived at under Section 18(3) and Section 19(2) of the Industrial Disputes Act, 1947, between the petitioner and the workmen represented by their recognised majority union and which settlement was in force when impugned orders were made, had put any bar on the rights of the workmen to approach the authorities under the said Act for seeking modification of the Standing Orders with regard to the fixation of the age of superannuation of the workmen". The High Court answered the first question in the affirmative holding that it was open to the Certifying Authority to entertain an application for modification of the clause fixing the date of superannuation, the provisions in the model Standing Orders, notwithstanding. On the second point the High Court came to the conclusion that the settlement arrived at in conciliation proceedings was binding on the workmen and as clause 19 of the settlement kept the service conditions which were not changed intact and clause 21 of the settlement did not permit raising of any demand throwing an additional financial burden on the IOCL, it was not permissible to modify the certified Standing Orders by an amendment as that would alter the service condition and increase the financial burden on the management. In this view that the High Court took it quashed the orders passed by the two authorities below and made the rule in CWP No. 1717 of 1987 absolute while dismissing CWP No. 3417 of 1987 with no order as to costs. It is against this order that the trade unions have approached this Court.
7. The Standing Orders Act was enacted to define with sufficient precision the conditions of employment for workers employed in industrial establishments and to make the same known to them. The object of the Act was to have uniform Standing Orders in respect of the matters enumerated in the schedule to the Act regardless of the time of their appointment. With this in view the Act was enacted to apply to all industrial establishments wherein 100 or more workmen were employed on any date of the preceding 12 months.
- 17 -
WP No. 4114 of 2021 Within six months from the date on which this enactment becomes applicable to an industrial establishment, the employer is obliged by Section 3 to submit to the Certifying Officer draft Standing Orders proposed by him for adoption in his industrial establishment. Sub-section (2) of Section 3 lays down that in such draft Standing Orders provision shall be made for every matter set out in the schedule which may be applicable to the industrial establishment and where model Standing Orders have been prescribed shall be, so far as practicable, in conformity with such model. Section 4 provides that the Standing Orders shall be certifiable if (a) provision is made therein for every matter set out in the schedule which is applicable to the industrial establishment and (b) the Standing Orders are otherwise in conformity with the provisions of the Act. It further casts a duty on the Certifying Officer or Appellate Authority to adjudicate upon the fairness and reasonableness of the provisions of any Standing Orders. On receipt of the draft Standing Orders, Section 5 requires the Certifying Officer to forward a copy thereof to the trade union, if any, of the workmen, or where there is no such trade union, to the workmen in such manner as may be prescribed, together with a notice in the prescribed form requiring objections, if any, which the workmen desire to make to the draft Standing Orders. Thereafter the Certifying Officer must hear the concerned authorities and decide whether or not any modification of or addition to the draft submitted by the employers is necessary to render the draft Standing Orders certifiable under the Act. He is then expected to certify the draft Standing Orders with modifications, if any, and send authenticated copies thereof in the prescribed manner to the employer, to the trade union or other prescribed representatives of the workmen within 7 days. Section 6 provides for an appeal against the order of the Certifying Officer. The Appellate Authority has to communicate its decision to the Certifying Officer, to the employer and the trade union or other prescribed representative of the workmen within 7 days from the date of its order. Section 7 provides that the Standing Orders shall, unless an appeal is preferred, come into operation on
- 18 -
WP No. 4114 of 2021 the expiry of 30 days from the date on which authenticated copies thereof are sent under Section 5(3) or where an appeal is preferred, on the expiry of 7 days from the date on which copies of the orders of the Appellate Authority are sent under Section 6(2). Standing Orders duly certified as above for the Barauni Refinery came into operation on December 5, 1964 as provided by Section 7. We then come to Section 10 which provides for modification of certified Standing Orders. Sub-section (1) thereof states that the Standing Orders finally certified shall not, except on agreement between the employer and the workmen or a trade union or other representative body of the workmen be liable to modification until the expiry of six months from the date on which the Standing Orders or the last modification thereof came into operation. Sub-section (2) of Section 10 reads as under:
"10.(2) Subject to the provisions of sub-section (1), an employer or workman or a trade union or other representative body of the workman may apply to the Certifying Officer to have the standing orders modified, and such application shall be accompanied by five copies of the modifications proposed to be made, and where such modifications are proposed to be made by agreement between the employer and the workmen or a trade union or other representative body of the workmen, a certified copy of that agreement shall be filed along with the application."
It was under this provision that clause 20 of the certified Standing Orders was sought to be modified.
8. Since the High Court has answered the first point in the affirmative i.e. in favour of the workmen, we do not consider it necessary to deal with that aspect of the matter and would confine ourselves to the second aspect which concerns the binding character of the settlement. Section 2(p) of the Industrial Disputes Act, 1947 defines a settlement as a settlement arrived at in the course of conciliation proceedings and includes a written agreement between the employer and workmen arrived at otherwise than in the course of
- 19 -
WP No. 4114 of 2021 conciliation proceeding where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof has been sent to the officer authorised in this behalf by the appropriate government and the Conciliation Officer. Section 4 provides for the appointment of Conciliation Officers by the appropriate government. Section 12(1) says that where any industrial dispute exists or is apprehended the Conciliation Officer may, or where the dispute relates to a public utility service and a notice under Section 22 has been given, shall, hold conciliation proceedings in the prescribed manner. Sub-section (2) of Section 12 casts a duty on the Conciliation Officer to investigate the dispute and all matters connected therewith with a view to inducing the parties to arrive at a fair and amicable settlement of the dispute. If such a settlement is arrived at in the course of conciliation proceedings, sub-section (3) requires the Conciliation Officer to send a report thereof to the appropriate government together with the memorandum of settlement signed by the parties to the dispute. Section 18(1) says that a settlement arrived at by agreement between the employer and the workmen otherwise than in the course of the conciliation proceedings shall be binding on the parties to the agreement. Sub-section (3) of Section 18 next provides as under:
"18.(3) A settlement arrived at in the course of conciliation proceedings under this Act or an arbitration award in a case where a notification has been issued under sub-section (3-A) of Section 10-A or award of a Labour Court, Tribunal or National Tribunal which has become enforceable shall be binding on--
(a) all parties to the industrial dispute;
(b) all other parties summoned to appear in the proceedings as parties to the dispute, unless the Board, Arbitrator, Labour Court, Tribunal or National Tribunal, as the case may be, records the opinion that they were so summoned without proper cause;
- 20 -
WP No. 4114 of 2021 (c) where a party referred to in clause (a) or clause (b) is an employer, his heirs, successors or assigns in respect of the establishment to which the dispute relates;
(d) where a party referred to in clause (a) or clause (b) is composed of workmen, all persons who were employed in the establishment or part of the establishment as the case may be, to which the dispute relates on the date of the dispute and all persons who subsequently become employed in that establishment or part."
It may be seen on a plain reading of sub-sections (1) and (3) of Section 18 that settlements are divided into two categories, namely, (i) those arrived at outside the conciliation proceedings and (ii) those arrived at in the course of conciliation proceedings. A settlement which belongs to the first category has limited application in that it merely binds the parties to the agreement but the settlement belonging to the second category has extended application since it is binding on all parties to the industrial dispute, to all others who were summoned to appear in the conciliation proceedings and to all persons employed in the establishment or part of the establishment, as the case may be, to which the dispute related on the date of the dispute and to all others who joined the establishment thereafter. Therefore, a settlement arrived at in the course of conciliation proceedings with a recognised majority union will be binding on all workmen of the establishment, even those who belong to the minority union which had objected to the same. To that extent it departs from the ordinary law of contract. The object obviously is to uphold the sanctity of settlements reached with the active assistance of the Conciliation Officer and to discourage an individual employee or a minority union from scuttling the settlement. There is an underlying assumption that a settlement reached with the help of the Conciliation Officer must be fair and reasonable and can, therefore, safely be made binding not only on the workmen belonging to the union signing the settlement but also on others. That is why a settlement arrived at in the course of
- 21 -
WP No. 4114 of 2021 conciliation proceedings is put on par with an award made by an adjudicatory authority. The High Court was, therefore, right in coming to the conclusion that the settlement dated August 4, 1983 was binding on all the workmen of the Barauni Refinery including the members of Petroleum and Chemical Mazdoor Union.
9. The settlement does not make any specific mention about the age of retirement. Clause 19 of the settlement, however, provides that such terms and conditions of service as are not changed under this settlement shall remain unchanged and operative for the period of the settlement. The age of retirement prescribed by clause 20 of the certified Standing Orders was undoubtedly a condition of service which was kept intact by clause 19 of the settlement. The provisions of the Standing Orders Act to which we have adverted earlier clearly show that the purpose of the certified Standing Orders is to define with sufficient precision the conditions of employment of workman and to acquaint them with the same. The charter of demands contained several matters touching the conditions of service including the one concerning the upward revision of the age of retirement. After deliberation certain conditions were altered while in respect of others no change was considered necessary. In the case of the latter clause 19 was introduced making it clear that the conditions of service which have not been changed shall remain unchanged, i.e. they will continue as they are. That means that the demand in respect of revision of the age of retirement was not acceded to.
10. By clause 21 of the settlement extracted earlier the Union agreed that during the period of the operation of the settlement they shall not raise any demand which would throw an additional financial burden on the management, other than bonus. Of course the proviso to that clause exempted matters covered under Section 9-A of the Industrial Disputes Act from the application of the said clause. However, Section 9-A is not attracted in the present case. The High Court was, therefore, right in observing: "when the settlement had been arrived at between the
- 22 -
WP No. 4114 of 2021 workmen and the company and which is still in force, the parties are to remain bound by the terms of the said settlement. It is only after the settlement is terminated that the parties can raise any dispute for fresh adjudication." The argument that the upward revision of the age of superannuation will not entail any financial burden cannot be accepted. The High Court rightly points out : "workmen who remain in service for a longer period have to be paid a larger amount by way of salary, bonus and gratuity than workmen who may newly join in place of retiring men". The High Court was, therefore, right in concluding that the upward revision of the age of superannuation would throw an additional financial burden on the management in violation of clause 21 of the settlement. Therefore, during the operation of the settlement it was not open to the workmen to demand a change in clause 20 of the certified Standing Orders because any upward revision of the age of superannuation would come in conflict with clauses 19 and 21 of the settlement. We are, therefore, of the opinion that the conclusion reached by the High Court is unassailable.
11.18.The decision of Division Bench of this Court in
W.A.No.200010/2022 dated 13.07.2022
[Rajashree Cements General Workers and
Staff Union vs. The Management of
M/s.Altratech Cement Ltd.] wherein the
Hon'ble Division Bench of this Court has
confirmed the order of the learned Single Judge
stating that when an agreement was in force,
no change in the Standing Orders could be
- 23 -
WP No. 4114 of 2021 made contrary to the agreement arrived at
between the Management and the Workmen.
11.19.He relies upon the decision of the Hon'ble
Supreme Court in the case of Guest Keen
Williams Private Limited VS. P.J.Sterling
reported in 1959 (XVI) FJR 415 more
particularly last unnumbered para in Page
Nos.428 and 429 thereof, which are reproduced
hereunder for easy reference:
"We would, however, like to add that this conclusion should not be taken as a decision on the general question of fixing the age of superannuation in the case of industrial employees. In fixing the age of superannuation industrial tribunals have to take into account several relevant factors. What is the nature of the work assigned to the employees in the course of their employment? What, is the nature of the wage structure paid to them? What are the retirement benefits and other amenities available to them? What is the character of the climate where the employees work and what is the age of superannuation fixed in comparable industries in the same region? What is generally the practice prevailing in the industry in the past in the matter of retiring its employees? These and other relevant facts have to be weighed by the tribunal in every case when it is called upon to fix an age of superannuation in an industrial dispute. In the present case, as we have already observed, the age of 55 has been fixed by both the tribunals for future entrants; and this is substantially based on the standing order which we have already considered. In regard to the prior employees it is not seriously disputed that the retirement age can and may be fixed at 60. It is under these circumstances that we have come to the
- 24 -
WP No. 4114 of 2021 conclusion that the age of superannuation for prior employees should be fixed at 60".
11.20.He refers to the decision of the Hon'ble Bombay
High Court in the case of Tulsiram K.Gothad
vs. Superintendent, Mahatma Gandhi
Memorial Hospital, Mumbai & anr., reported
in (2002) 1 CLR 396 [W.P.No.2461/1999
dated 23.02.2001], more particularly Para 8
thereof which is reproduced hereunder for easy
reference:
8. The Model Standing Order Clause No. 27 is ex facie very clear and it can be analysed as under :-
(a) the age for retirement or superannuation of the workmen may be 60 years; or
(b) such other age as may be agreed upon between the employer and the workmen by any agreement, settlement or award which may be binding on the employer and the workmen under any law for the time being in force.
I have already held that the appointment order issued by the respondent management appointing the petitioner as a plumber and the petitioner having accepted the same and having worked for such a long period, it cannot be said that it was not an agreement between the respondent employer and the petitioner. The retirement age as reflected in Clause (a) above is 60 years or as would be agreed between the parties. It does not mandatorily say that the retirement age would be 60 only. The clause in fact contemplates an agreement between the two parties. It could be 58 years or it could be 60 years or even more. The
- 25 -
WP No. 4114 of 2021 Petitioner was issued an appointment order wherein he was informed that he would be governed by the rules and regulations framed and amended from time to time by the respondents. The said appointment order amounts to an agreement, as contemplated by the present standing order. I fail to understand if it is not an agreement what else it could be. Shri Bukhari is, therefore, right in his submissions that the respondents have not contested the claim that the Model Standing Orders do not prevail over the service regulations in the case of inconsistency. He has, therefore, rightly submitted that the appointment order being an agreement as contemplated under the said Standing Order No. 27, the age of retirement having been agreed specifically is within the four corners of the said standing order. I am not able to agree with Shri Deshpande when he has submitted that the agreement, settlement or award as mentioned in the said standing order has to be such only when there is a specific clause in respect of the age of retirement or with the union or with the large number of workmen and that an appointment order is not contemplated as an agreement within the said standing orders. There is nothing in the standing order to read that an appointment order individually issued to an employee cannot be an agreement. I, therefore, hold that the appointment order issued to the petitioner and every such appointment order issued to every such employee does constitute an agreement within the meaning of clause 27 of the standing order and both the parties are bound by such an agreement unless, it is in any way contrary to the law or inconsistent with any provisions of law. In the present appointment order I do not find anything which is inconsistent or contrary to the law. The appointment order is clear enough to inform the employee that he would be bound by the service regulations present and as amended from time to time. There is second aspect of this matter. Even the service regulations which are framed by the Board of Management and which are governing the service conditions of the employees have statutory flavour and have binding force, so long as there are not contrary to any provisions of law, including the Model Standing Orders. At the same time, we cannot forget that they are not the service rules privately framed by any employer and kept in his cupboard. The respondent management is a responsible organisation formed under the declaration of trust deed. In its organisation, there have been very highly placed
- 26 -
WP No. 4114 of 2021 dignitories consisting of representatives of the mill owners, employees, the E.S.I.C. Corporation and also the State Government. The trust deed elaborately provided for all the rules and regulations and the procedure. The Board of Management is not allowed to amend the rules and regulations unilaterally. It has to pass a resolution and approach the Government for its approval. Such rules and regulations or amendments therein can be enforced only after the State Government grants approval. In these circumstances, it cannot be said that the rules and regulations have no binding effect or have no statutory force. I have already observed that the rules and regulations of the respondent have statutory flavour. It cannot be said that the management has followed the rules and regulations and therefore, it has committed an unfair labour practice. The decision of the management is not arbitrary or whimsical. The management followed unilaterally the rules and regulations which are not contrary to any law and which are not shown to be arbitrary or unreasonable. We, further, cannot lose sight of a fact that about 304 employees of the respondent had made a representation to the Industrial Court that the age of retirement was 58 years and 60 years for Class I, II and III and Class IV employees respectively. It was complained by large number of employees that the union was acting not in favour of the employees but only for the benefit of a few and mala fide. There is a third dimension to the matter. Standing Order No. 32 reads as under :-
"32. Nothing contained in these Standing Orders shall operate in derogation of any law for the time being in force or to the prejudice of any right under a contract of service, custom or usage or an agreement, settlement or award applicable to the establishment."
Under this standing order what is expected is any order which would operate in derogation of any law in the time being in force or to the prejudice of any right under the contractor service. According to this standing order the respondents have acted on the basis of the appointment order which is a contract of service or which is an agreement between the parties. It is, therefore, clear that anything which is contrary to the appointment order would be hit by the aforesaid Standing Order No. 32. It is a contract of service that the petitioner would retire at the age of
- 27 -
WP No. 4114 of 2021 58 years. The contention of the petitioner, therefore, would straightway attract the aforesaid provisions of standing order which would be prejudicial to the right of the management to retire the petitioner at the agreed age of 58 years. I, therefore, do not find any merits in the petition and the same is dismissed and rule is discharged with no orders as to costs. Shri Deshpande has complained that the petitioner was not paid his gratuity. Shri Bukhari has fairly stated that he would instruct the respondents to pay the gratuity payable to the petitioner in accordance with law within one week.
11.21.He relies upon the judgment of the Hon'ble
Division Bench of the Bombay High Court in the
case of Tulsiram K.Gothad vs.
Superintendent, Mahatma Gandhi Memorial
Hospital & anr., reported in (2007) III CLR
718 more particularly Para 4 which is
reproduced hereunder for easy reference:
4.So far as the Model standing order no.32 is concerned, it is not necessary for us to consider that provision, because in view of the provisions of Model standing order no.27 the position is clear that the age of retirement mentioned in that provision will apply only if there is no other age of retirement mentioned in the agreement between the parties. Perusal of the judgment of the learned Single Judge in the case "Engineering Workers' Association Vs. J.D.Jamdar, Member Industrial Court & others" shows that the learned Single Judge has, in support of the view that she has taken, relied on the judgment of the learned Single Judge in the case "The Indian Tobacco Company Ltd. Vs. The Industrial Court & others". Perusal of that judgment shows that the learned Single Judge in that
- 28 -
WP No. 4114 of 2021 case was considering the provisions of Model Standing Order no.4-A and not Model standing order no.27. In our opinion, this case turns on the language employed in the Model Standing Order no.27, and therefore, the judgment of the learned Single Judge in the case "The Indian Tobacco Company Ltd. Vs. The Industrial Court & others" as also the judgment of the Supreme Court in the case between "Western India Match Company Ltd. And Workmen, 1973 II L.L.J. 59" are not relevant. We may mention here that in so far as the Model Standing order no.32 is concerned, our attention was invited by the learned Counsel appearing for respondent no.1 to the judgment of the Division Bench in the case "Pune Municipal Corporation & others vs. Dhananjay Prabhakar Gokhale, 2006 II CLR 105"
referred to above, where construction different from the one placed by the learned Single Judge in the case "The Indian Tobacco Company Ltd. Vs. The Industrial Court & others" on Model Standing order no.32 has been accepted by the Division Bench. However, as observed above, in view of the clear language employed by the Model Standing order no.27, it is not necessary for us to consider Model Standing order no.32.
11.22.He relies upon the decision of Hon'ble Apex
Court in the case of Jeewanlal (1929) Ltd.,
vs. The Workmen and another reported in
(1972) 1 LLJ 472 (SC) more particularly Para
19 thereof which is reproduced hereunder for
easy reference:
19. The above decisions clearly show that the present-
day tendency is to fix the age of superannuation generally at 60 unless the Tribunal feels that the work of the operatives is particularly arduous or hazardous where workmen may lose efficiency earlier. The
- 29 -
WP No. 4114 of 2021 photographs which are on record show that in at least some sections of the factory workmen have to work at machines which resemble some in use heavy engineering industries. On the materials we do not find it possible to come to any definite conclusion on the point We may also note that whereas in engineering concerns in West Bengal the age of retirement generally fixed for operatives, is 58 years there is a divergence of opinion as regards operatives in Bombay & Delhi. Much will therefore depend on the actual assessment of the nature of the work of the operatives to find out whether it is really so arduous or hazardous as to lead the certifying Officer or the court in appeal to the conclusion that the proper age of superannuation should not be raised beyond 58 years. It is rather unfortunate that the Industrial Court ignored the prayer of both parties to make a personal inspection of the factory of the appellants to come to his conclusion. Such persona] inspection would have been more valuable then oral evidence by the parties before the Certifying Officer. In this case the Certifying Officer Went by his own previous impression without caring to inspect the factory and the Industrial court ignored the joint prayer in that behalf. We therefore feel that the matter should be re-investigated and the Certifying Officer should inspect the conditions in the factory to come to a conclusion whether the age of superannuation should be left at 58 years or whether it should be raised to 60 years.
11.23.He relies upon the decision of the Hon'ble Apex
Court (From Karnataka High Court) in the case
of Cyril Lasrado (Dead) By LRs. & ors. vs.
Juliana Maria Lasrado & anr., reported in
ILR 2004 KAR 4822 more particularly Paras 11
and 12 thereof which are reproduced hereunder
for easy reference:
- 30 -
WP No. 4114 of 2021 11. Reasons introduce clarity in an order. On plainest consideration of justice, the High Court ought to have set forth its reasons, howsoever brief, in its order indicative of an application of its mind, all the more when its order is amenable to further avenue of challenge. The absence of reasons has rendered the High Court's judgment not sustainable.
12. Even in respect of administrative orders Lord Denning M.R. IN BREEN V. AMALGAMATED ENGINEERING UNION (1971 (1) All E.R. 1148) observed "The giving of reasons is one of the fundamentals of good administration". IN ALEXANDER MACHINERY (DUDLEY) LTD. V. CRABTREE (1974 LCR 120) it was observed: "Failure to give reasons amounts to denial of justice". Reasons are live links between the mind of the decision taker to the controversy in question and the decision or conclusion arrived at". Reasons substitute subjectivity by objectivity. The emphasis on recording reasons is that if the decision reveals the "inscrutable face of the sphinx", it can, by its silence, render it virtually impossible for the Courts to perform their appellate function or exercise the power of judicial review in adjudging the validity of the decision. Right to reason is an indispensable part of a sound judicial system, reasons at least sufficient to indicate an application of mind to the matter before Court. Another rationale is that the affected party can know why the decision has gone against him. One of the salutary requirements of natural justice is spelling out reasons for the order made, in other words, a speaking out.
The "inscrutable face of a sphinx" is ordinarily incongruous with a judicial or quasi-judicial performance.
11.24.The decision of the Division Bench of this Court
in W.A.Nos.2304-2309/2018 (Karnataka
Employers Association and Others Vs. The
State of Karnataka and Others) dated
1.10.2020 more particularly Paras 8, 9 and 10
thereof, which are reproduced hereunder for
easy reference:
- 31 -
WP No. 4114 of 2021 8. The detailed narration of the facts and contentions would not call for reiteration, but, to highlight the following inferences:
1) The Model Standing Orders amended by Notification dated 27.03.2017 do not apply to these appellants as they have Certified Standing Orders.
2) As and when the Certified Standing Orders are amended to enhance the age of superannuation from 58 years to 60 years, the appellants would then have a cause of action to assail the same, if so advised, in accordance with law.
But in the absence of impugned Notification dated 27.03.2017 being applicable to them, these petitioners approached this Court without there being any cause of action to do so and when these petitioners were not in any way aggrieved by the said Notification as it was not applicable to them aggrieved by the said Notification as it was not applicable to them.
9. Now, leaned counsel for the appellants submits that the penultimate para of the impugned order of the learned Single Judge would be adverse to these petitioners and therefore the writ appeals may be dismissed as not pressed. The penultimate para of the learned Single Judge reads as under:
"115. Secondly, the said contention requires to be rejected in the light of the law laid down by the Apex Court wherein the Hon'ble Apex Court has held that mere technical infringement not resulting in any substantial prejudice would be of no discussions long after the time stipulated for filing of objections was over. The fact that the discussions have been held with the stake holders is apparent from
- 32 -
WP No. 4114 of 2021 Annexure-C placed on record by the petitioners. From a bare reading of the provision it is apparent that only a consultation is prescribed and no adjudicatory process is mandated. In view of the above, the writ petitions require to be rejected and in view of the conditional interim order granted, it is clarified that the employees who have retired during the pendency of the petitions, such of those employees shall been titled for their monetary benefits including back wages for the period during which they have been kept out of employment on account of superannuation during the pendency of the writ petitions. "consequence. In the light of law laid down by the Hon'ble Apex Court, it was mandatory on the part of the petitioners to demonstrate substantial prejudice caused to them or at least that they have been prejudicially affected by the omission on the part of the State to consult the stakeholders. Additionally, it also requires to be rejected, because the delay has not only not caused any prejudice to the petitioners but on the other hand has enabled the similarly placed parties to participate and file their objections and participate in the discussions long after the time stipulated for filing of objections was over. The fact that the discussions have been held with the stake holders is apparent from Annexure-C placed on record by the petitioners. From a bare reading of the provision it is apparent that only a consultation is prescribed and no adjudicatory process is mandated. In view of the above, the writ petitions require to be rejected and in view of the conditional interim order granted, it is clarified that the employees who have retired during the pendency of the petitions, such of those employees shall
- 33 -
WP No. 4114 of 2021 been titled for their monetary benefits including back wages for the period during which they have been kept out of employment on account of superannuation during the pendency of the writ petitions."
10. It is clear that since the Certified Standing Orders of these appellants have not been modified so as to incorporate the enhanced age of superannuation; the direction issued above would not have been issued by the learned Single Judge to these petitioners/appellants herein. However, there was also an interim order of stay of the same granted in these appeals by Coordinate Benches of this Court.
11.25.Sri.C.K.Subramanya, learned counsel for the
petitioner submits that in the order passed by
the Certifying Authority dated 30.03.2019 at
Annexure-F except for making note of the
submission of both sides, the Certifying
Authority has not applied its mind but has
blindly accepted the application for amendment
of the certifying industrial orders. There is
complete non-application of mind by the
Certifying Authority and as such, there being no
reasons attributed for the amendment, the
amendment is required to be quashed.
- 34 -
WP No. 4114 of 2021 11.26.As regards the judgment of the Appellate
Authority, he submits that even the Appellate
Authority has only recorded the submission of
both the parties and rejected the appeal. Even
the Appellate Authority has not bothered to give
reasons for its order and as such, the Appellate
Authority has not discharged its obligation in a
proper and required manner as that required of
a quasi-judicial authority. There being no
reasons which are attributed in the said order
and the order being a non-speaking one is
required to be quashed.
11.27.He relies upon the decision of this Court in
W.P.No.12137/2014 dated 08.07.2015
[Wipro Infrastructure Engineering vs.
Additional Labour Commissioner
(Administration) and Appellate Authority,
Bangalore and ors. more particularly Para 21
- 35 -
WP No. 4114 of 2021 thereof, which is reproduced hereunder for easy
reference:
21. In the statement of objections filed by the petitioner there is no comparative picture of the prevailing wages, wage structure, pensionary benefits, etc. The petitioner has not shown that the financial benefits given to the employees in the petitioner's undertaking are higher than those of the undertakings which have raised the age of retirement of their employees to 60 years.
11.28.He submits that the said order of the learned
Single Judge has been approved by the Division
of this Court in WA No.2482/2015 dated
7.11.2015 [Wipro Infrastructure
Engineering vs. Additional Labour
Commissioner (Administration) and
Appellate Authority, Bangalore and ors.
more particularly Paras 9 and 10 thereof, which
are reproduced hereunder for easy reference:
9. We had asked Mr.Anantharamu to cite any authority in support of his contention that there could be amendment of the Standing Order regarding enhancement of the age of retirement retrospectively.
10. He fairly conceded that there is no such authority on this aspect.
- 36 -
WP No. 4114 of 2021 11.29.Based on all the above, he submits that the
Writ Petition is required to be allowed and the
impugned orders are required to be quashed.
12. Per contra, Sri.H.K.Nagabhushana, learned counsel
for respondent No.3 - Union would submit that:
12.1. As soon as there is an amendment made to the
Model Standing Orders, the Model Standing
Orders being a beneficial enactment, the benefit
that arises on account of such amendment,
ought to be made automatically applicable to all
the workmen and it is for this reason that the
Certifying Authority has accepted the
application and increased the retirement age to
60 years in terms of the amendment which has
been made to the Model Standing Orders.
12.2. The employer's association and various
employers had challenged the amendment
made to the Model Standing Orders in
W.P.Nos.14576-14577/2017, which came to
- 37 -
WP No. 4114 of 2021 be dismissed by this Court vide order dated
29.06.2018 [Karnataka Employers'
Association and others vs. The State of
Karnataka and others]. This Court while
doing so has come to a conclusion that the age
of retirement has been constantly increasing
and as per a survey, which has been conducted
among the 133 countries who are members of
the International Labour Organization, only in
18 nations, the age of retirement is below 60
years and in several countries, the age of
retirement is 65 years. This being so on account
of the increased life expectancy, he submits
that the said decision would equally apply to the
present case. He relies upon Paras 21, 26, 29,
36,74, 105 and 108 thereof of the said
judgment, which are reproduced hereunder for
easy reference:
21. The prayer by the petitioners to strike-down the notification amending the entries in the schedule is resisted by contending that the writ petition itself is not maintainable and is liable to be dismissed in
- 38 -
WP No. 4114 of 2021 limine. It is pleaded that, for the first time in the year 1982, the age of retirement came to be introduced by inserting Clause 15-A in the Karnataka Industrial Employment Rules, 1961 fixing the age of retirement at 58 years. That the amendment enhancing the age of superannuation has been introduced after the passage of nearly 35 years and by no stretch of imagination can it be described as a hurried move. That the amendment would directly benefit nearly 21 lakhs workers employed in 4,032 factories and 6,900 shops and commercial establishments in the State of Karnataka. That the amendment introduced is after taking into consideration the socio-economic considerations, the workers face at the advance stage of their life and nearing retirement, they are many a time called upon to incur expenditure in the discharge of the parental duty to finance higher educations or weddings of their off-springs.
26. That amongst the 133 countries who are members of the International Labour Organisation, only 18 Nations have an age of retirement below 60 years. That in several developed countries the age of retirement is 65 years. That this is on account of the increase in life expectancy, which has dramatically altered on account of improved health of the populace. That the working population are required to be provided with a socio-economic security at the advanced age between 58 and 60. That the workman of this age group bring in their invaluable experience and knowledge acquired in the various fields which can be usefully passed on to the succeeding generation.
29. It is contended that the amendment to the Model Standing Orders would take immediate effect and apply to industrial establishments which do not hold certified standing orders, thereby, resulting in automatic implementation of the notification. That with regard to industrial establishments holding certified standing orders, it is open either to the management or to the employees union to make an application to certifying officer under the provisions of Section 10 of the "Act 20 of 1946" for the purpose of enhancing the age of superannuation or retirement.
36. That the Hon'ble Apex Court in similar circumstances while considering the similar issue of
- 39 -
WP No. 4114 of 2021 age of date of retirement above 50 years in the case of British Paints(India) Limited Vs. Its Workmen, reported in AIR 1966 SC 732 has pleased to observe as follows:-
Considering that there has been a general improvement in the standard of health in this country and also considering that longevity have increased, fixation of age of retirement at 60 years appears to us to be quite reasonable in the present circumstances. Age of retirement at 55 years was fixed in the last century in Government service and had become the pattern for fixing the age of retirement everywhere. But, time in our opinion has now come considering the improvement in the standards of health and increase in longevity in this country during the last fifty years that the age of retirement should be fixed at a higher level and we consider that generally speaking, in the present circumstances, fixing the age of retirement at 60years would be fair and proper, unless there are special circumstances justifying fixation of a lower age of retirement.
74. Sri.Subba Rao, learned Senior counsel would take the Court through the provisions of Section 4 of the Act and contend that the act enables the certifying authority to fix the age of retirement lower than the age specified under the Model Standing Order. Section 4 of the Act reads as under:
"4, Conditions for certification of standing orders. - Standing orders shall be certifiable under this Act, if,-
(a) provision is made therein for every matter set out in the Schedule which is applicable to the industrial establishment, and
(b) the standing orders are otherwise in conformity with the provisions of this Act; and it (shall be the function) of the Certifying Officer or Appellate Authority to adjudicate upon the fairness or reasonableness of the provisions of any standing order."
- 40 -
WP No. 4114 of 2021 105. That apart, as demonstrably argued by the respondents, several industrial establishments have on their volition and certain other establishments on the demand of the workmen have enhanced the age of superannuation from 58 to 60 years. Further, the contention put forth on behalf of the respondents that the fact of fairness and reasonableness of a provision in the Model Standing orders involve adjudication of the facts and such adjudication is solely vested in the Certifying Officer has not been negated by the petitioners. On the contrary, the contentions stand vindicated on a plain reading of Section 4 of the Act.
108. Nextly, with regard to the feasibility and appropriateness of enhancing the age of superannuationfrom58 years to 60 years is answered by the Larger Bench of the Hon'ble Apex Court in the British Paints case. The Hon'ble Apex Court was pleased to observe at Para Nos.4, 5 and 7 asunder:
"4. Then there is the question as to future workmen and whether their age of retirement should also be fixed at the same level as in the case of existing workmen. We are of opinion that generally speaking there should not be any difference in the age of retirement of existing workmen and others to be employed in future in a case like the present unless there are special circumstances justifying such difference. In this connection our attention is drawn to the case of Guest, Keen, Williams (P) Ltd.,(1960) 1 SCR 348; 1959-2 LJ 405; (AIR 1959 SC 1279), where the age of retirement of future workmen was 55 years. In that case however, the age of retirement of future workmen was fixed at 55years by the Standing Order and the question whether that age of retirement should be changed was not before this Court for consideration. All that this Court had to consider in that case was whether the age of retirement of existing employees, before the Standing Order fixing the age of retirement
- 41 -
WP No. 4114 of 2021 at 55years was introduced, should be 60 years or not. In the present company so far there is no age of retirement and unless there are valid and cogent reasons for making a differences in the age of retirement of existing workmen and those employed in future, the future workmen should also have the benefit of the same, age of superannuation.
5. Considering that there has been a general improvement in the standard of health in this country and also considering that longevity has increased, fixation of age of retirement at 60 years appears to us to be quite reasonable in the present circumstances. Age of retirement at 55 years was fixed in the last century in government service and had become the pattern for fixing the age of retirement everywhere. But time in our opinion has now come considering the improvement in the standard of health and increase in longevity in this country during the last fifty years that the age of retirement should be fixed at a higher level, and we consider that generally speaking in the present circumstances fixing the age of retirement at 60years would be fair and proper, unless there are special circumstances justifying fixation of a lower age of retirement.
7. As to the factory workmen, it is urged that their age of retirement should be fixed at a lower level as work in the factory is more arduous than the work of clerical and subordinate staff, and in this connection reliance is placed on the decision of this Court in Jessop and Co. Ltd. (1964) 1 Lab LJ 451(SC), where one age was fixed for clerical and subordinate staff and a slightly lower age was fixed for the factory workmen. Here again we are of opinion that generally speaking, there is no reason for making a difference in the age of retirement as between clerical and
- 42 -
WP No. 4114 of 2021 subordinate staff on the one hand and factory workmen on the other, unless such difference can be justified on cogent and valid grounds. It is only where work in the factory is of a particular arduous nature that there may be reason for fixing a lower age of retirement for factory workmen as compared to clerical and sub-ordinate staff. This appears to have been so in the case of Jessop and Co. Ltd. (1964) 1 Lab LJ 451 (SC), for that was a heavy engineering concern, where presumably work in the factory was much more arduous as compared to the work of clerical and subordinate staff. There might, therefore, have been then some justification for fixing a lower age of retirement for factory workmen in the case of those factories where the work is of a particularly arduous nature. But the present company is a paints manufacturing company and there is in our opinion no reason to suppose that the work in the factory in the present case is particularly arduous as compared to the work of clerical and subordinate staff. We therefore, think that even in the case of future factory-workmen in the present concern there is no special reason why the age of retirement should be fixed at a lower level. It is of course always possible for an employer to terminate the services of a workman if he becomes physically or mentally incapable of working before the age of retirement.
This power being there, there is no reason to suppose that there will be inefficiency in work on account of fixing the age of retirement at 60 years on the other hand with the age of retirement at 60 years there will be added advantage that more experienced workmen will be available to the management and that would be a cause for greater efficiency. On the whole, therefore, we are of opinion that the age of retirement in the case of factory workmen also in the present company should be fixed at the age of 60
- 43 -
WP No. 4114 of 2021 years. We, therefore, modify the award of the tribunal and fix the age of retirement for the clerical and subordinate staff as well as for the factory workmen, whether existing or future, at the age of 60years."
The observations of the larger Bench emphatically answers issues raised by the petitioners.
12.3. He relies upon the decision of this Court in
W.P.Nos.45822-25/2012 dated 12.07.2019
[Management of Federal Mogul Goetze
India Pvt. Ltd., vs. Additional Labour
Commissioner and others], more
particularly, Paras 21, 22 and 24 thereof, which
are reproduced hereunder for easy reference:
21. In case of establishments which are not governed by Act, 1946, the age of retirement is decided by service conditions such as settlement/appointment letters, employment agreements. However, if the retirement age is not determined, in such an establishment the worker can claim that since the age of retirement is not decided by law as well as by service conditions, he can work till the time he is physically fit and able to do work. However, by and large, Courts have held that age of retirement should be 60 yrs. In G.M.TALANGE cited supra decided on 24.03.1964, Apex Court in making its decision in the above matter, relied upon the report of the Norms Committee in which the following opinion was expressed:
- 44 -
WP No. 4114 of 2021 "After taking into consideration the views of the earlier Committees and Commissions including those of the Second Pay Commission, the report of which has been released recently,, we feel that the retirement age for workmen in all industries should be fixed at 60. Accordingly, the norms for retirement age is fixed at 60".
22. The Apex Court held that, "it is important to notice that the correctness of the Tribunal's findings that in all the concerns in the Bombay Region, trend set had been to fix the retirement age at 60 years, was not challenged before this Court". Therefore, coming to the decision that the age of retirement of workman should be assigned at not less than 60, the Supreme Court relied on reports of the Norms Committee which formed its decision taking into consideration earlier Committees and Commissions. The above Judgment was upheld in TEJ BAHADUR RAM vs STATE OF UTTAR PRADESH AND ANR. arising in SLP (C) No.18692/2005.
24. The International Labour Conference (for short 'ILC') has passed a recommendation which recognizes violence and harassment in the world of work as 'Human rights violence or abuse'. A new Convention and accompanying recommendations were adopted by ILC on the final day of Centenary of International Labour Conference in Geneva. The conference is organized by the International Labour Organisation to set its broad bye-laws including conventions and recommendations. Under the convention, violence and harassment in the world of work can be recognized as constituting, "Human rights violence or abuse". Harassment and violence are also, "a threat to equal opportunities, is unacceptable and incompatible with decent work", it says violence and harassment have been defined as behaviour, practice or threats "that aim at, resulting or are likely or likely to result in physical, psychological, sexual or economic harm". Member
- 45 -
WP No. 4114 of 2021 States have been reminded that they have a responsibility to promote, "general environment of 'zero' tolerance".
12.4. He relies upon the decision of the Division
Bench of this Court in W.A.No.2771/2019
dated 25.02.2021 [Management of Gederal
Mogul Mogul Goetze India Pvt. Ltd., vs.
Additional Labour Commissioner and
others], more particularly Paras 16, 22 and 23
thereof, which are reproduced hereunder for
easy reference:
16. In so far as the present case is concerned, the Courts have always held in favour of upward revision of the age of retirement and have fixed it at sixty (60) years, even in cases where there was no age of retirement fixed or agreed between the parties. In Guest Keen Williams P. Ltd., (supra), the Hon`ble Apex Court held as under:
"23. ............In our opinion, it is necessary to fix the age of superannuation even with regard to the prior employees, and we feel no difficulty in holding that it would not be unfair or unreasonable to direct that these employees should retire on attaining the age of 60."
22. Learned Senior counsel contended that the decision in Barauni Refinery applied an all fours to the facts of the present case and therefore there
- 46 -
WP No. 4114 of 2021 was no question of modification of the standing orders, as that would have resulted in an additional financial burden. In Barauni Refinery, there was a set of standing orders relating to the age of retirement which was coupled with an agreement which insulated the standing orders from being modified under Section 10 of the Act of 1946, during the currency of the agreement. However, in the present case, there was no standing order relating to the age of retirement in the establishment of the appellant. The contention of the learned Senior Counsel, Sri. S.S. Naganand, that, mentioning the age of retirement in the order of appointment is sufficient compliance, cannot be accepted, since the model standing order 15-A which admits of "such other age as may be agreed upon between the employer and the workman by any agreement, settlement or award" (underlining by Court) is only for the purpose of fixing the number and not for the purpose of dispensing with the requirement of incorporating the age of retirement in the standing order. The contention of the learned Senior Counsel for the appellant would have appealed to us, if the age of retirement consequent to the settlement agreement was incorporated in the standing orders, as that would have been subject to the satisfaction of the Certifying Officer about its reasonableness or fairness. Therefore, as a first step, soon after the settlement agreement, the appellant ought to have amended its standing order to bring it in line with the agreement entered into with its workmen. It would have then fitted into the situation as it prevailed in Barauni Refinery. Thus, even otherwise, the settlement agreement is not sacrosanct and inviolable. The settlement can be ignored in exceptional circumstances if it is demonstrably unjust, unfair and if it militates against the spirit and basic postulate of the agreement reached as a result of conciliation. Hence the first question is answered in the negative.
- 47 -
WP No. 4114 of 2021 23. While dealing with the next question, it is necessary to note that by the Amendment Act 36 of 1956, the Certifying Officer under the Act of 1946 is empowered to adjudicate upon the fairness or reasonableness of the provisions of any standing order. It is not in dispute that the standing order of the appellant did not contain any stipulation regarding the age of retirement of its workmen. However, the appellant claimed that the age of retirement was contained in the orders of appointment. Thus, even if this contention of the appellant is accepted, then too it cannot prohibit the Certifying Officer from satisfying whether it was just and fair. The Certifying Officer has taken into account the overall standard age of retirement in the industry as well as the age of retirement all over the world and has directed the appellant to modify the standing orders fixing the age of retirement at sixty (60)years, subject however to the condition that the workmen are found to be medically fit by the medical officer and upon such terms and conditions as the Company may in this behalf prescribe.
12.5. That was the issue in W.A.No.100250/2021
dated 05.07.2022 [The Management of
M/s.Grasim Industries Ltd., vs. The
General Secretary, Harihar Polyfibers
Employees Union and others], more
particularly, Para H(i) and (ii) thereof, which are
reproduced hereunder for easy reference:
H. AS TO CONTENTION OF HAZARDOUS INDUSTRYAND DESIRABILITY OF EARLY RETIREMENT, i.e., 58YEARS: - 48 - WP No. 4114 of 2021
(i) Learned Senior Counsel Mr. Kathawi passionately submitted that appellants'
manufacturing unit involves considerable amount of risk to the workmen "owing to exposure to Hot work, confined to space working, working at height, chemical exposure etc in case of accidental release of fumes & gases and acid spills." He argues that the nature of job which the workmen have to attend to, causes both physical & mental strain and therefore, it is not prudent to continue the workmen in service once they attain 58 years so that the risk to their life & limb is avoided. We do not agree with the logic of this argument and the reasons are at anarm's length: Firstly, the industry of the Appellant is not registered as involving 'hazardous processes' under the provisions of the Factories Act, 1948 and the Rules promulgated thereunder, as rightly pointed out by Mr. S.L Matti the learned counsel appearing for the Employee Union. Secondly, every industry of the kind arguably involves some job near furnace, some near wheels, some near belts and some near spikes; that per se, does not make the 'industrial process hazardous' to all classes of workmen.
(ii) The Appellant has not disclosed as to how the manufacturing process in its establishment was hazardous or arduous and that workmen beyond the age of 58 years are not suitable to continue in employment. In fact, appellant had signified his willingness before the authorities to favorably consider employees request for enhancement of retirement age, which aspect we discuss separately later. Whatever potential hazard that lies in every industrial activity can be taken care of by the advanced technology and safety measures; the appellant in the synopsis to the Writ Appeals has specifically admitted that he has installed "the state of the art safety system" and that there is "safe environment" in the unit. Appellant has not produced any expert medical opinion to substantiate the contention that there would be
- 49 -
WP No. 4114 of 2021 considerable deterioration in the fitness & agility of the employees in the age group of 58 - 60 years. No statistical data supportive of the contention was produced before the authorities or the learned Single Judge or even here before us. The Co- ordinate Bench in FEDERAL MOGUL, supra referred to several decisions on being challenged in SLP of the Apex Court wherein challenge to fixation of 60years as the age of retirement was repelled and observed at paragraph 16: "...the Courts have always held in favour of upward revision of the age of retirement and have fixed it at sixty (60) years, even in case where there was no age of retirement fixed or agreed between the parties... " The Bench at paragraph 19 further observed: "This Court too has followed the above and have consistently held that the age of superannuation of workmen in industrial establishments could be fixed at sixty(60) years..." It is pertinent to state that these observations were made after repelling the contention of 'hazardous industry' and that this decision has got the seal of Apex Court as already mentioned above.
12.6. On the basis of the above, he submits that
there is no hazardous activity which has been
carried out by the petitioner's Company. The
necessary registrations have not been obtained
by the petitioner's Company for carrying out
any hazardous activities. Thus, it is the General
Law, which would be applicable and as such,
even persons aged about 60 years can
discharge their functions without any hindrance.
- 50 -
WP No. 4114 of 2021 This aspect has been taken into consideration
by the Certifying Authority and the Appellate
Authority and as such, the orders passed by the
Certifying Authority and the Appellate Authority
need not be interfered with and the petition be
dismissed.
13. Sri.Bhoje Gouda T.Koller, learned AGA for
respondents No.1 and 2 would submit that the
Certifying Authority and the Appellate Authority has
considered all the aspects in a proper perspective
and has passed a reasoned order accepting the
amendment to the Certified Standing Orders and as
such, this Court ought not to intercede in the matter.
14. Heard Sri.C.K.Subramanya, learned counsel for the
petitioner, Sri.Sri.Bhoje Gouda T.Koller, learned AGA
for respondents No.1 and 2 and
Sri.H.K.Nagabhushan, learned counsel for
respondent No.3 and perused the papers.
- 51 -
WP No. 4114 of 2021 15. The points that would arise for consideration by this
Court are:
1. Whether any amendment to the Model Standing Orders would automatically make the same applicable to the Certified Standing Orders, certified for Industrial Establishments?
2. What are the aspects that are required to be considered by the Certifying Authority while approving an amendment to the Certified Standing Orders?
3. For an establishment to claim itself to be hazardous, would there be a requirement for registration under the Factories Act, 1948 as an hazardous industry?
4. Whether the order passed by the Certifying Authority and the Appellate Authority suffers any legal infirmities requiring interference at the hands of this Court?
5. What order?
16. I answer the above points as under:-
17. Answer to Point No.1: Whether any amendment to the Model Standing Orders would automatically make the same applicable to the Certified Standing Orders, certified for Industrial Establishments?
- 52 -
WP No. 4114 of 2021 17.1. I have in an earlier judgment in the case of
MANAGEMENT OF ULTRATECH CEMENT LTD.,
VS. RAJASHREE CEMENT GENERAL WORKERS
& STAFF UNION & OTHERS
[W.P.NO.204077/2018 DATED 16.03.2021]
already held that any amendment to the Model
Standing Orders scheduled to the Rules would
not be automatically applicable. In the event of
either the employer or the trade union or the
workman wanting to make any change or
modification in the Standing Orders applicable,
necessary application has to be made in terms
of Section 10 of the Industrial Employment
(Standing Orders) Act, 1946 (for short, 'IESO
Act') and it is up to the Certifying Officer to,
after considering all relevant aspects, allow the
amendment and certify the same.
18. Answer to Point No.2: What are the aspects that are required to be considered by the Certifying Authority while approving an amendment to the Certified Standing Orders?
- 53 -
WP No. 4114 of 2021 18.1. Section 3 of the IESO Act reads as under:-
3. Submission of draft standing orders.--
(1) Within six months from the date on which this Act becomes applicable to an industrial establishment, the employer shall submit to the Certifying Officer five copies of the draft standing orders proposed by him for adoption in his industrial establishment.
(2) Provision shall be made in such draft for every matter set out in the Schedule which may be applicable to the industrial establishment, and where model standing orders have been prescribed, shall be, so far as is practicable, in conformity with such model.
(3) The draft standing orders submitted under this section shall be accompanied by a statement giving prescribed particulars of the workmen employed in the industrial establishment including the name of the trade union, if any, to which they belong.
(4) Subject to such conditions as may be prescribed, a group of employers in similar industrial establishments may submit a joint draft of standing orders under this section.
18.2. A perusal of above provision would indicate that
within 6 months from the date on which the Act
becomes applicable to an industrial
establishment, an employer should prepare the
Standing Orders proposed by him for adoption
in its Industrial Establishments.
- 54 -
WP No. 4114 of 2021 18.3. The said Standing Orders are to refer to every
matter set out in Schedule to the Rules, the
Standing Orders to be discussed with the trade
unions existing in the industrial establishments
or representative of workmen before adoption.
18.4. If there is no disagreement or dispute as
regards the said clauses, the same would
become applicable to the industrial
establishment as if it is certified on being sent
to the certifying officer by registered post
acknowledgement due. However, if there is a
dispute or disagreement, then the Standing
Orders drafted by the employer will have to be
submitted to the Certifying Officer for necessary
adjudication.
18.5. Thus, even when the first Standing orders are
drafted, it is only if there is an agreement
between the employer and trade union or
- 55 -
WP No. 4114 of 2021 representative of the workmen, that the drafted
Standing Orders would be applicable
immediately.
18.6. If there is any dispute as regards any of the
contents, the same would have to be
adjudicated by the Certifying Officer.
18.7. Section 4 of IESO Act reads as under:-
4. Conditions for certification of standing orders.--Standing orders shall be certifiable under this Act if--
(a) provision is made therein for every matter set out in the Schedule which is applicable to the industrial establishment, and
(b) the standing orders are otherwise in conformity with the provisions of this Act;
and it 1[shall be the function] of the Certifying Officer or appellate authority to adjudicate upon the fairness or reasonableness of the provisions of any standing orders.
18.8. In terms of Section 4 of IESO Act, the Standing
Orders would be certifiable only if provisions are
made thereunder for all matters set out in the
Schedule, which is applicable to that particular
industrial establishment and the Standing
- 56 -
WP No. 4114 of 2021 orders are otherwise in conformity with the
provisions of the Act. It is also made a function
of the Certifying Officer or the Appellate
Authority to adjudicate upon the fairness or
reasonableness of the provisions of any
Standing Orders. This being for the reason that
the schedule only provides a broad basis
itemized list as regards what is required to be
included, it is on that basis that the detailed
draft of the Standing Orders would have to be
appreciated and adjudicated by the Certifying
Officer. One of the important aspects to be
taken into consideration is fairness and
reasonableness of the provisions made in the
said Standing Orders.
18.9. Section 5 of IESO Act reads as under:-
5. Certification of standing orders.--
(1) On receipt of the draft under section 3, the Certifying Officer shall forward a copy thereof to the trade union, if any, of the workmen, or where there is no such trade union, to the workmen in such manner as may be prescribed, together with a notice
- 57 -
WP No. 4114 of 2021 in the prescribed form requiring objections, if any, which the workmen may desire to make to the draft standing orders to be submitted to him within fifteen days from the receipt of the notice.
(2) After giving the employer and the trade union or such other representatives of the workmen as may be prescribed an opportunity of being heard, the Certifying Officer shall decide whether or not any modification of or addition to the draft submitted by the employer is necessary to render the draft standing orders certifiable under this Act, and shall make an order in writing accordingly. (3) The Certifying Officer shall thereupon certify the draft standing orders, after making any modifications therein which his order under sub- section (2) may require, and shall within seven days thereafter send copies of the certified standing orders authenticated in the prescribed manner and of his order under sub-section (2) to the employer and to the trade union or other prescribed representatives of the workmen.
18.10.The Certifying Officer, upon receipt of the draft,
in terms of Section 3, from the employer is
required to forward the same to the trade union
or representative of the workmen. It is after
hearing the employer and the representatives
of the workmen or the trade union that the
Certifying Officer would have to decide whether
or not any modification of addition to the draft
submitted by the employer is necessary. While
doing so, reasons for the same would also have
- 58 -
WP No. 4114 of 2021 to be provided by the Certifying Officer. Thus,
in essence the Certifying Officer could either
modify the disputed clause leaving out the
agreed clauses or add a particular clause to
cater to the requirements of the employer and
the workmen so as to make the same fair or
reasonable or in the event of Certifying Officer
coming to conclusion that one of the clauses is
not fair or reasonable and the same cannot be
modified, the Certifying Officer could delete the
said clause. The Certifying Officer, therefore,
discharges a very important role in finalizing
the Standing Orders which are applicable and it
is the bounden duty on the part of the
Certifying Officer to hear all the parties
concerned and thereafter adjudicate the issues
by giving reasons.
18.11.In the event of any employer, workmen, trade
union and other stake holders are aggrieved by
- 59 -
WP No. 4114 of 2021 any order passed by the Certifying Officer under
Sub-Section (2) of Section 5 of IESO Act, an
appeal can be filed to an Appellate Authority
challenging the said order. The Appellate
Authority shall send the copies of the appeal to
other parties and after hearing all the parties,
pass such order as it deems fit.
18.12.Section 6 of IESO Act, which relates thereto is
reproduced hereunder for easy reference:
6. Appeals.--(1) Any employer, workmen, trade union or other prescribed representatives of the workmen aggrieved by the order of the Certifying Officer under sub-section (2) of section 5 may, within 4 [thirty days] from the date on which copies are sent under sub-section (3) of that section, appeal to the appellate authority, and the appellate authority, whose decision shall be final, shall by order in writing confirm the standing orders either in the form certified by the Certifying Officer or after amending the said standing orders by making such modifications thereof or additions thereto as it thinks necessary to render the standing orders certifiable under this Act.
(2) The appellate authority shall, within seven days of its order under sub-section (1), send copies thereof to the Certifying Officer, to the employer and to the trade union or other prescribed representatives of the workmen, accompanied, unless it has confirmed without amendment the standing orders as certified by the Certifying Officer, by copies of the standing orders as certified by it and authenticated in the prescribed manner.
- 60 -
WP No. 4114 of 2021 18.13.In the event of any modification of Certified
Standing Orders being required, the same can
be done only by following the requirements of
Section 10 of IESO Act.
18.14.Section 10 of IESO Act is reproduced hereunder
for easy reference:
10. Duration and modification of standing orders.--(1) Standing orders finally certified under this Act shall not, except on agreement between the employer and the workmen 1[or a trade union or other representative body of the workmen], be liable to modification until the expiry of six months from the date on which the standing orders or the last modifications thereof came into operation.
2 [(2) Subject to the provisions of sub-section (1), an employer or workman or a trade union or other representative body of the workmen may apply to the Certifying Officer to have the standing orders modified, and such application shall be accompanied by five copies of 3[***] the modifications proposed to be made, and where such modifications are proposed to be made by agreement between the employer and the workmen or a trade union or other representative body of the workmen, a certified copy of that agreement shall be filed along with the application.]
(3) The foregoing provisions of this Act shall apply in respect of an application under sub-section (2) as they apply to the certification of the first standing orders.
4 [(4) Nothing contained in sub-section (2) shall apply to an industrial establishment in respect of which the appropriate Government is the Government of the State of Gujarat or the Government of the State of Maharashtra.
- 61 -
WP No. 4114 of 2021 18.15.A perusal of the above provision would indicate
that final Certified Standing Orders cannot be
disturbed for atleast a period of 6 months
except on an agreement between the employer
and the workmen.
18.16.In the event of an agreement being arrived at
between the employer or the trade union or
representative body of the workmen as regards
the modification to be carried out, the said
agreed clauses can be submitted to the
Certifying Officer, who would then permit the
modification and certify the Model Standing
Orders. In the event of only one of the parties
seeking for modification i.e., either the
employer, the trade union or the
representatives body of the workmen or
workman seeking for a modification, then an
application along with 5 copies of such
modification sought for would have to be filed.
- 62 -
WP No. 4114 of 2021 18.17.The Certifying Officer would issue necessary
notices to all other stakeholders and thereafter
upon hearing the parties and following the
procedure as prescribed under Sections 4 and 5
of IESO Act extracted hereinabove could certify
the modification, of course, there being an
appellate remedy provided under Section 6 of
IESO Act. Thus, the Certifying Authority or the
Appellate Authority would have to consider all
aspects relating to the modification either by
addition, deletion or substitution by applying
the principles of fairness and reasonableness as
also considering that the said modifications are
covered by the Act or the Rules and/or not
violative of any of the provisions applicable
thereto, as held in Guest Keen Williams's
Case, Wipro Infrastructure Engineering's
Case, Barauni Refinery's Case, Jeewanlal's
Case supra.
- 63 -
WP No. 4114 of 2021 19. Answer to Point No.3: For an establishment to claim itself to be hazardous, would there be a requirement for registration under the Factories Act, 1948 as an hazardous industry?
19.1. Sub-Section (cb) of Section 2 of the Factories
Act 1948 describes 'hazardous process' as
under:-
1 [(cb) "hazardous process" means any process or activity in relation to an industry specified in the First Schedule where, unless special care is taken, raw materials used therein or the intermediate or finished products, bye-products, wastes or effluents thereof would--
(i) cause material impairment to the health of the persons engaged in or connected therewith, or
(ii) result in the pollution of the general environment:
Provided that the State Government may, by notification in the Official Gazette, amend the First Schedule by way of addition, omission or variation of any industry specified in the said Schedule;]
19.2. Chapter IVA contained Section 41A to 41H of
the Factories Act, 1948 deals with 'Provisions
relating to Hazardous Process', these provisions
deal with the manner of setting up of a factory
dealing with hazardous processes, thus making
- 64 -
WP No. 4114 of 2021 it the requirements of those provisions
mandatory.
19.3. The hazardous process dealt by Factories Act,
1948 are more in the nature of the equipment
and/or the material used. Ofcourse, there could
be separate Standing Orders insofar as
industrial establishment dealing with hazardous
process. However, in respect of any industrial
establishment more so as regards the
determination of age of retirement, it is not as
much as the manufacturing process being
hazardous but it is the process being incapable
of being done by the workman of a particular
age, which is required to be determined.
19.4. Thus, what is required to be determined is not
whether the process of manufacture per se is
hazardous but as to whether the process of
manufacture is hazardous for a workman of a
particular age group. Therefore, in my
- 65 -
WP No. 4114 of 2021 considered opinion obviously in the event of an
industry being designated as hazardous under
the Factories Act, the same would be
considered to be hazardous. However, in
respect of the aspect of determining of age of
retirement, it would be required that the
process of manufacture be determined as
hazardous or not on the basis of age of the
workman after visiting the industrial
establishment and ascertaining the process of
manufacturing.
20. Answer to Point No.4: Whether the order passed by the Certifying Authority and the Appellate Authority suffers any legal infirmities requiring interference at the hands of this Court?
20.1. In the present matter, the Certifying Authority
has referred to certain decisions and has
allowed the application for modification filed by
the Trade Union under Section 10 of IESO Act.
Similar is the situation with the Appellate
- 66 -
WP No. 4114 of 2021 Authority when the employer went on appeal
under Section 6 of IESO Act.
20.2. The principles as detailed hereinabove as
regards the aspects that are required to be
considered by the Certifying Authority or the
Appellate Authority have been given a go by
both by Certifying Authority and the Appellate
Authority. Except for placing on record the
contentions of both the parties neither the
Certifying Authority nor the Appellate Authority
have applied their independent mind to reach
the conclusion as to why the modification has to
be permitted or not.
20.3. Both the Certifying Authority and the Appellate
Authority have mechanically allowed the
application for modification. Infact, when there
was a specific contention raised by the
employer that the manufacturing process would
be hazardous to a particular age group of
- 67 -
WP No. 4114 of 2021 workmen, it was required of the Certifying
Authority to have inspected the premises and to
ascertain if in fact it was hazardous or not.
20.4. Though all workmen would like the age of
retirement to be increased, the increase in the
age of retirement cannot be at the cost of life of
such workman. If indeed the manufacturing
process is hazardous for persons above a
particular age group, then, it would be required
for the Certifying Authority in discharge of its
obligation and duties to have inspected the
premises, ascertain whether the manufacturing
process is hazardous to that particular age
group or not. Suffice it to say that the Certifying
Authority has to ascertain independently
whether a person aged above 58 years and
under 60 years could be a part of the
manufacturing process without any harm being
caused to such workman. That is what this
- 68 -
WP No. 4114 of 2021 Court has held in Wipro Infrastructure
Engineering vs. Additional Labour
Commissioner in W.P.No.12137/2014 dated
08.07.2015, which has been approved by the
Division Bench in W.A.No.2482/2015 dated
07.11.2015. Whether there is an increase in
the age of retirement to be made or not are all
aspects which ought to have been considered
by the Certifying Authority while passing the
order.
20.5. Both the Certifying Authority and the Appellate
Authority discharging the quasi judicial
functions, it is required that for any decision
rendered by the Certifying Authority and/or
Appellate Authority, reasons are made known in
the order passed by such authority. As
aforesaid, when there is an important duty
being discharged by the Certifying Authority
and the Appellate Authority, which would have
- 69 -
WP No. 4114 of 2021 an impact not only on the functioning of the
industrial establishment but also on all the
workmen working therein, this aspect of the
matter cannot be taken lightly by the Certifying
Authority and the Appellate Authority.
20.6. The manner in which the Certifying Authority
and the Appellate Authority have dealt with the
matter in the present case leaves much to be
desired. Both the authorities have given a goby
to their duties and have mechanically acted
which is deprecated.
20.7. In view of the above, both the orders passed by
Certifying Authority and the Appellate Authority
would be required to be set aside and the
matter remitted back to the Certifying Authority
for fresh consideration as per the principles
enunciated hereinabove and the decision of the
various Courts more so in Guest Keen
Williams's Case, Wipro Infrastructure
- 70 -
WP No. 4114 of 2021 Engineering's Case, Barauni Refinery's
Case, Jeewanlal's Case.
20.8. The certifying authority is directed to inspect
the industrial establishment of the petitioner,
ascertain if a workman between the age group
of 58 years and 60 years can be involved in the
manufacturing process without any harm being
caused to him/her after ascertaining the
manufacturing process and the age and health
requirements of the workmen. If it is
permissible and possible for persons above 58
years and within 60 years to discharge such
manufacturing functions, to approve the same,
if not to reject the modification sought for.
21. Answer to Point No.6: What order?
21.1. In view of the above, I pass the following:
ORDER
i. The Writ Petition is allowed.
ii. The order dated 30.03.2019 passed by the respondent No.1 at Annexure-F is hereby quashed.
- 71 -
WP No. 4114 of 2021 iii. The order dated 01.12.2020 passed by respondent No.2 at Annexure-J is hereby quashed.
iv. The matter is remitted to the respondent No.1 to comply with the observations made hereinabove within a period of 6 weeks of the receipt of a copy of this order.
Sd/-
JUDGE
Prs* List No.: 1 Sl No.: 51
This page reproduces a public judgment and a summary of it. It is research material, not legal advice, and it is no substitute for advice from an advocate on your own facts.
Research this judgment with Miss Lucy
Ask what it holds, what has followed it, and what it means for your matter — in plain English, with the citations.
Try Miss Lucy free