RAJASTHAN STATE GRANITES AND MARBLE MAZDOOR SANGH AND ORS. Vs. RAJASTHAN STATE MINES AND MINERALS LTD. AND ORS.
LAWS(RAJ)-2015-3-12
HIGH COURT OF RAJASTHAN
Decided on March 02,2015

Rajasthan State Granites And Marble Mazdoor Sangh And Ors. Appellant
VERSUS
Rajasthan State Mines and Minerals Ltd. and Ors. Respondents

JUDGEMENT

- (1.) TO question correctness of the judgment dated 5.3.2008 passed by learned Single Bench in SB Civil Writ Petition No. 5430/2003, this appeal is preferred.
(2.) THE facts necessary to be noticed for adjudication of this appeal are that the Government of Rajasthan incorporated a company in the name of Rajasthan State Granites and Marble Ltd. (hereinafter referred to as 'the RSGML'). The RSGML was a subsidiary of Rajasthan State Mineral Development Corporation (hereinafter referred to as 'the Corporation') which was holding more than 50% share capital. The RSGML suffered huge losses and thereafter there was an order of closure dated 1.12.1985, ultimately it was wound up in the year 1999.
(3.) THE services of workers of the RSGML were terminated on 30.11.1985, hence, they raised an industrial dispute that came to be referred for its adjudication to the Labour Court, Jodhpur under a notification dated 12.9.1997 in the terms that "whether the Secretary, Rajasthan State Mineral Development Corporation, Jaipur/Rajasthan State Granite and Marbles Ltd., Jaipur and the Rajasthan State Mineral Development Corporation, Jaipur are justified in terminating the employees named in the annexed list on closure of their Jodhpur unit? If not, then for what relief and amount the workmen are entitled - By way of submitting statement of claim the workmen urged that the RSGML was a subsidiary company of Rajasthan State Mineral Development Corporation, therefore, the Corporation should be treated as their employer. It was urged that their services were terminated which amounts to retrenchment as defined under Section 2(oo) of the Industrial Disputes Act, 1947. The retrenchment was made without adhering to mandatory conditions pertaining to retrenchment, hence the same is illegal and unsustainable. The Rajasthan State Mineral Development Corporation Ltd. contested the dispute with a definite stand that it had no relationship of master and servant with the workmen. The RSGML was a separate company and merely on count of it being a subsidiary company, the Corporation cannot be treated as employer of the claimant workmen.;


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