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2022 (1) TMI 1

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..... Bond India Limited. The said company was subsequently acquired by Hindustan Lever Limited through its parent company in the year 1984. The parent company had also acquired another company named Lipton India Limited. Both these companies were then merged in the year 1994 to form Brooke Bond Lipton India Limited. This company was then merged into Hindustan Lever Limited. According to Union the Federation of its employees is the apex body of trade unions. From 1962 onwards various agreements were entered into by the Federation with the Management of Brooke Bond India Limited concerning service conditions and pay-scales of its employees. According to the Union representing about nineteen employees of the Regional Accounts Office, Nagpur the activities of the Regional Accounts Office and the manufacturing activities carried out at different factories especially the factory at Kanhan were interrelated and interdependent. All of them were thus constituted one industrial establishment. The services of the employees of Brooke Bond India Limited were transferable from various factories to the Regional Accounts Office and vice versa. On 05.01.2001 a notice of closure was displayed by the Man .....

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..... nal Accounts Office was governed by the terms of various agreements between the Management and the Federation. The Regional Accounts Office was not functionally integrated with other establishments of the Company. Moreover, in view of the proviso to Section 9A of the Act of 1947 there was no need to issue any notice of closure under Section 9A of the Act of 1947. On the basis of these findings the judgment of the Industrial Court was set aside and the writ petition was allowed. Being aggrieved by the aforesaid judgment, the Union has preferred the present letters patent appeal while the Management has preferred crossobjections seeking to challenge certain adverse findings recorded against it. 5. Shri S.D. Thakur, learned counsel for the appellant-Union reiterated the submissions that were canvassed before the learned Single Judge while supporting the order passed by the Industrial Court. According to him, the notice of closure dated 05.01.2001 was illegal since there was no reason mentioned therein that prompted closure of the Regional Accounts Office. Referring to the provisions of Section 25FFF of the Act of 1947 it was submitted that the workmen were entitled to notice and comp .....

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..... 1999) 6 SCC 275]. It was thus submitted that the Industrial Court having rightly considered the entire material on record and thereafter having granted relief to the Union, its judgment ought not to have been interfered with by the learned Single Judge. It was prayed that the order passed by the Industrial Court be restored. 6. Shri H.V. Thakur, learned counsel for the respondent nos.1 to 3-Management supported the judgment of the learned Single Judge. According to him the learned Single Judge by applying the correct legal tests in the light of the material on record was justified in holding that there was absence of functional integrality between the activities of the Regional Accounts Office and other establishments of the Company. As per the various settlements with the Federation, the Management had clearly indicated its desire to close down the activities of the Regional Accounts Office at Nagpur. Appropriate options were given to the employees therein but the same were not accepted by them. There was no option therefore to close down the Regional Accounts Office and hence it was not correct to contend that the same amounted to retrenchment. Referring to the provisions of Sec .....

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..... he finding recorded that the interim payments made to the workmen were justified in view of the provisions of Section 17B of the Act of 1947 was also incorrect. The requirements of Section 17B had not been satisfied since there were no affidavits filed regarding absence of gainful employment. However, he submitted that as a policy decision, the Management was not desirous of pressing the aspect of recovery of payments already made. It was then submitted that since the cause of action for filing the complaint was the termination of nineteen employees, the Union ought to have approached the Labour Court and not Industrial Court. In that context reliance was placed on the decisions in Rajneesh Khajuria Versus Wockhardt Limited & Another [(2020) 3 SCC 86], Shankarprasad And Lokmat Newspapers Pvt. Ltd., Nagpur [1997 II LLJ 195], Executive Engineer, Electrical Division, Nagpur & Another Versus Prakash Devidas Kalasit [1985 Mh.L.J. 338], Pepsico India Holdings Pvt. Ltd. And Noshir Elavia & Another [2002 II LLJ 721] and Manoj Amdas Ingle & Others Versus Member, Industrial Court, Nagpur & Another [2004 (3) Mh.L.J. 41]. It was thus submitted that considering the fact that the entire materia .....

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..... closure was governed by the provisions of Section 25FFF and that course had been duly followed. 8. We find that the aforesaid findings going to the root of the matter have been recorded after considering the relevant material on record. Once it is found that the closure of the Regional Accounts Office at Nagpur was pursuant to the settlements between the Federation and the Management the proviso to Section 9A would stand attracted. As per the said proviso, no notice of change would be required to be given if such change is effected pursuant to any settlement or award. The Union has not been in a position to demonstrate that the closure of the Regional Accounts Office as per notice dated 05.01.2001 was not pursuant to the settlement at Exhibits 53 to 59. Reliance has been rightly placed on the decision of the learned Single Judge in Anglo-French Drugs and Industries Ltd. (supra) by the learned counsel for the Management that for alteration of the conditions of service, existence of a live industry is necessary. On the factum of closure being established there would be no occasion to hold that such closure amounted to alteration of the conditions of service. As regards the finding .....

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