HINDUSTAN UNILEVER LIMITED Vs. MEMBER INDUSTRIAL COURT

JUDGEMENT

(1.) This petition challenges the judgment and order dated 27-2-2002 passed by the Industrial Court, Nagpur, in Complaint (ULP) No.51 of 2001, declaring the action of closure of the Regional Accounts Office, Nagpur, and retrenchment of the employees with effect from 5-1-2001, taken by the petitioner-Company to be illegal and amounting to an unfair labour practice covered under Item 9 of Schedule IV of the Maharashtra Recognition of Trade Unions & Unfair Labour Practices Act, 1971 (for short, "the MRTU & PULP Act") and further directing withdrawal of the same and restoring the position prevailing prior to 5-1-2001.

(2.) The facts leading to this case are as under : Brooke Bond (India) Private Ltd. was a Company registered under the Companies Act, 1956 and it started the business of purchase of tea at the Indian auctions, processing, blending and packing the same in suitable packages in the year 1912. The Head Office of the said Company was at Calcutta and its first factory at Calcutta was established in the year 1926. Thereafter the factory was established at Coimbatore in 1928 followed by similar factories at Kanhan in the year 1942, at Ghatkesar in the year 1947, and at Jamnagar in the year 1951 and thereafter at Hide Road, Tundla, Whitefield and Hosur. The factories included all its ancillary Units, e.g. godowns, stores, Engineering units, either situated within or around the premises. The activities in all such factories included purchasing, processing, blending, packing, and storage. The accounting work of the factories used to be handled by the Accounts Department located in each factory.

(3.) For the purpose of controlling and furthering its activity of sale of the products, the Company had established about 60 to 70 depots all over India controlled by 42 Branch Offices headed by a Group Manager. The branch offices were located in cities or towns. In all such depots, the salesmen and the vanmen were attached. The salesman used to take with him a vanman and the tea in the van on his rounds to canvass and sell the tea packets directly to the consumers. It was thus a direct distribution system, which was adopted by the Company. The salesman at the end of the day used to collect the amount of sales, to make an entry of the daily sales, to convert cash in demand drafts and to post his statement with such drafts to the branch office. The salesman's supervisor and guide was the controller. The controller was the Branch Manager and the Head Office used to keep control and watch over the Branch Managers. As such, the marketing was through branch offices and depots. The work of accounting in respect of sales was being carried out in branch offices. The clerical staff employed in the branches of the Company was inextricably related with the work of accounting of the stocks sent by the factories to the depots for the purpose of sales and also with the work of accounting of the sale proceeds and maintaining the accounts of the stocks sold, so also maintaining the accounts of the stocks, which were remaining in balance at the depots.