L.M.L.LTD. Vs. STATE OF U.P.AND OTHERS
LAWS(ALL)-2010-9-305
HIGH COURT OF ALLAHABAD
Decided on September 17,2010

L.M.L.LTD. Appellant
VERSUS
STATE OF U.P. Respondents

JUDGEMENT

- (1.) Counter and Rejoinder affidavits have been exchanged. With the consent of learned Counsel for the parties this writ petition is being finally disposed of at the admission stage. Heard Sri Shashi Nandan assisted by Sri Vijay Sinha learned Counsel for the Petitioner, learned Standing Counsel for Respondent Nos. 1 and 2 and Sri K.P. Agarwal learned Senior Advocate assisted by Ms. Bushera Mariam for the Respondent No. 3. The challenge in the instant writ petition by the Petitioner M/s Lohia Machines Limited is to the Order dated 21.5.2008 (Annexure 9 to the writ petition) by which the Respondent No. 1 has made a reference under Section 4-K of the U.P. Industrial Disputes Act (hereinafter referred to as 'the Act') and referred it to adjudication as well as the order dated 28.5.2008 (Annexure 10 to the writ petition) passed by Respondent No. 2 by which he required the parties to submit their written statements and the evidences in support of their respective contentions.
(2.) The Petitioner which is a public limited company duly incorporated under the provisions of "Companies Act 1956" was engaged in the business of manufacture of geared scooters and for that purpose six thousand employees were employed in the company. However, around late 1990s a significant change in consumer preference from geared scooters to motorcycles occurred which resulted in adverse market conditions causing severe financial loss of approximately Rs. 468 crores to the company. Consequently the Petitioner company was declared a Relief Undertaking under the U.P. Industrial Undertaking (Special Provisions for Prevention of Unemployment) Act, 1966 (hereinafter referred to as The U.P. Act, 1966) vide notification No. 794/XXXVI-1-2(X) 1 dated 26.4.2004 for a certain period which was subsequently extended from time to time . The company also filed a reference before the Board for Industrial and Financial Reconstrucuon(hereinafter referred to as BIFR ) under the provisions of Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) (which was registered as Case No. 80/2006) by order dated 8.5.2007. Adding to the misfortune of the company the workmen of the company resorted to illegal strike , demonstration and struck work and indulged in various subversive activities with effect from 27.2.2006 totally paralysing the company's work and the company in order to protect the company's property had to declare lockout with effect from 7.3.2008. However, after discussions between the management of the company and the sole registered union of the company, namely Lohia Machines Limited Karmchari Sangh, a settlement/agreement was entered into between the company and the union on 13.4.2007 under Section 4-F of the Act read with Rule 5 Sub-rule (1) of the Rules framed thereunder before the Additional Labour Commissioner, Kanpur Region, Kanpur (Annexure 4 to the writ petition).
(3.) According to Petitioner a small splinter group of workmen describing themselves as "LML Mazdoor Sangthan, who had received all the benefits under the agreement dated 13.4.2007 tried to disturb the peaceful functioning of the company by getting themselves registered under the Trade Unions Act. The Registration so made was challenged by the Petitioner before this Court in Civil Misc. Writ Petition No. 5903 of 2008 Lohia Machines (LML) Karmchari Sangh v. Registrar Trade Unions and Ors. which was allowed by this Court by order dated 23.4.2008 and the registration certificate issued in favour of the Respondent No. 3 was quashed and thus the Respondent No. 3 had no locus to seek reference. According to the Petitioner after agreement/settlement dated 13.4.2007 which was also acted upon and manufacturing in the Petitioner's company started there existed no industrial dispute, whatsoever. However, with a view to disturb the industrial peace the members of the Respondent No. 3 which was an unregistered and unrecognised union tried to raise an industrial dispute under Section 4-K of the U.P. Industrial Disputes Act, and on 21.5.2008 Respondent No. 1 passed the impugned order in a mechanical manner without any application of mind and thereafter a consequential notice dated 28.5.2008 was issued by the Respondent No. 2 requiring the Petitioner to file its statements and other evidences in support of its contentions and hence the instant writ petition has been filed.;


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