M.D., BHADRA SHAHAKARI S.K. NIYAMITA versus PRESIDENT, CHITRADURGA MAZDOOR SANGH AND ORS.

Citation: [2006] SUPP. 8 S.C.R. 212 · Decided: 31-10-2006 · Supreme Court of India · Bench: AR. LAKSHMANAN · Disposal: Disposed off

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Judgment (excerpt)

A
M.D., BI-iADRA SHAHAKARI S.K. NIY AMIT A
v.
PRESIDENT, CHITRADURGA MAZDOOR SANGH AND ORS.
OCTOBER 31, 2006
B
[DR. AR. LAKSHMANAN AND TARUN CHATTERJEE, JJ.]
Constitution of India:
Articles I 2 and 226-Co-operative Sugar Factory-Employees-
C Settlement-Writ petition for direction to implement-High Court directing
implementation of settlement and Management to pay 40% back wages to
workers since their reinstatement had already been allowed-Held, writ
petition against co-operative Sugar Factory was not maintainable-However,
in the interest of justice and in the interest of workers, Management is
D directed to pay 10% back wages for the periods 1992 to 1999.
Respondent No. 1 Maj door Sangh in CA No. 4534 of 2004 filed a writ
petition before the High Court praying for a wriUdirection to the appellant-
co-operative sugar factory to implement the settlement stated to have been
arrived at between the parties. The High Court allowed the writ petition and
E directed the Management to pay 40% of back wages to the 51 reinstated
workmen. Later, the respondent-Mazdoor Sangh filed a contempt petition,
which was rejected. Both the Management as also the Majdoor Sangh filed
appeals before the Supreme Court.
It was contended for the Management that the Co-operative Sugar
F Factory being registered under the Cooperative Societies Act, would not fall
within the definition of 'State' under Article 12 of the Constitution of India
and, therefore, the writ petition filed by the respondent- Mazdoor Sangh before
the High Court was not maintainable.
0
H
Disposing of the appeals, the Court
HELD: 1. The Writ Petition filed by the respondent-Union against the
co-operative sugar factory is not maintainable. (214-D]
General Manager, Kisan Sahkari Chini Mills Ltd., Sultanpur, U.P. v.
212
-
.~
M.D. BHADRA SHAHAKARI S.K. NIYAMITA "· PRESIDENT. CHITRADURGA MAZDOOR SANGH IAR. LAKSHMANAN. I.I 213
Satrughan Nishad & Ors., (2003) 8 SCC 639; Federal Bank Ltd v. Sagar A
Thomas & Ors., (2003) 10 SCC 733; Gayatri Dev. Mousumi Cooperative
Housing Society Ltd& Ors., (2004) 5 SCC 90; Shrikant v. Vasantrao & Ors.,
(2006) 2 SCC 682 and Pradeep Kumar Biswas v. Indian Institute of Chemical
Biology & Ors., (2002) 5 SCC 111, referred to.
2. However, considering the long pendency of the matter before the High B
Court and this Court and the plight of the workers as also the critical financial
situation of the sugar factory, the appellant-Management is directed to pay
10% back wages to the 51 workmen for the periods 1992 to 1999. Since the
reinstatement has been ordered by the High Court, the workers will not be
disturbed except in accordance with law. (214-F; 215-B-E)
C
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 4534 of2004.
From the Judgment and Final Order dated 25-2-2003 of the High Court
ofKamatakaatBangalore in W.P. No. 13524/1999
Ranjit Kumar, Rajesh Mahale, Gururaj C.B., M.A. Krishnamoorthy, M.A. D
Chinnaswamy and Krishna Kumar for the Appellant.
G.V. Chandrashekar, Anjana Chandrashekar, P.P. Singh, Sanjay R. Hegde,
Anil K. Mishra, Vikrant Yadav and Sashidhar for the Respondents.
The Judgment of the Court was delivered by:
DR. AR. LAKSHMANAN, J. Civil Appeal No. 4534/2004.
E
This appeal was filed by the Managing Director, Bhadra Shahakari
S.K.Niyamita against the President, Chitradurga Mazdoor Sangh & Ors. against F
the judgment dt.25.02.2003 passed by the High Court in W.P. No. 13524/1999.
The Writ Petition was preferred by Chitradurga District Mazdoor Sangh calling
in question the inaction of the Management in implementing the settlement
produced as Annexure-A dt.14.05.1998 and for a consequent direction to the
Management to implement the aforementioned settlement. The High Court in
para 40 of its judgment observed as follows :-
G
"In the result and for the foregoing reasons, we allow the writ
petition with costs quantified at Rs. 3000/- payable by the first
Respondent to the Petitioner's counsel within two weeks. A writ of
mandamus shall issue to the management of the first Respondent
sugar factory to implement the settlement Annexure-A dated 14.05.1998 H
214
SUPREME COURT REPORTS [2006] SUPP. 8 S.C.R.
A
and continue 51 workmen already reinstated into service and pay 40%
of backwages, if not already paid, within a period of one month from
today."
B
c
Aggrieved against the said order, the appellant-Management has
preferred the above Civil Appeal.
Mr. Ranjit Kuinar, learned seni

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