LexM/S ARIANE ORGACHEM PVT. LTD. versus WYETH EMPLOYEES UNION & ORS.
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A B (2015] 6 S.C.R. 144 M/SARIANEORGACHEM PVT. LTD. v. WYETH EMPLOYEES UNION & ORS. CIVILAPPEAL NO. 246 OF 2009 APRIL29,2015 [V.GOPALA GOWDA AND C. NAGAPPAN, JJ.] Industrial Disputes Act, 1947: s. 25-FF- Reference of c dispute - Appellant company took over the factory of third respondent company along with its workmen in accordance with provision of s. 25-FF-After sometime appellant company framed a voluntary retirement scheme which all workmen of erstwhile company availed -After few months of accepting D VRS, respondent-Union raised demand seeking their reinstatement in factory of third respondent - Stand of appellant company was that industrial dispute could not be raised since all the workmen had taken VRS benefits and therefore they were neither the workmen of appellant nor third E respondent anymore - Labour Commissioner declined to make an order of reference to Industrial Tribunal stating that there was no industrial dispute in existence between the parties - Writ petition - High Court held that the acceptance of benefits of concerned workmen from appellant may not F establish the fact that no force or compulsion was exercised by appellant and this was most contentious and disputed question offact which could not have been decided by State Government in exercise of its administrative power and directed Labour Commissioner to make an order of reference G to Industrial Dispute - Held: The allegations made against the appellant-Company regarding the alleged coercion, undue influence and force used on the workmen for obtaining their signatures on blank papers needs to be examined very H carefully by the Industrial Tribunal after recording evidence 144 ARIANE ORGACHEM PVT. LTD v. WYETH 145 EMPLOYEES UNION & ORS. from both the parties - Therefore, the question regarding the A alleged termination of the concerned workmen is required to be referred to the Industrial Tribunal by the State Government - This complicated question of fact and law could not have been decided by the alleged delegatee of the State Government in exercise of its administrative power, as he is B not the competent authority on behalf of the State Government to make an order of reference to the Industrial Tribunal - The quashing of the order of refusarto make an order of reference by the High Court is perfectly legal and valid which need not be interfered with. C Dismissing the appeals, the Court HELD: 1. The contention on behalf of the respondent-Union was that the alleged transfer of the o undertaking of third respondent (M/s Wyeth Ltd.) in favour of the appellant-Company is not a genuine transfer and it is a sham one, as it is a transfer of the · assets of the Company only and not the transfer of business of third respondent (Mis Wyeth Ltd). Therefore, E the same is not in conformity with the provisions of Section 25FF of the Act. This aspect of the matter requires adjudication by the Industrial Tribunal in order to find out the correctness of the plea. This complicated question of fact and law could not have been decided F by the alleged delegatee of the State Government in exercise of its administrative power, as he is not the competent authority on behalf of the State Government .to make an order of reference to the Industrial Tribunal. [Para 22] [163-D-H] G 2. The other important factual aspect of the case is whether the voluntary retirement of the concerned workmen was forced or not is required to be proved by the parties before the Industrial Tribunal by adducing H .. ~ 146 SUPREME COURT REPORTS [2015] 6 S.C.R. A evidence for its detailed examination and scrutiny. The fact that certain documents were sought to be sum- moned at the instance of first respondent-Union during the conciliation proceedings from the appellant-Com- pany by the Conciliation Officer which were not pro- 8 duced by it is one more important factor which is re- quired to be considered by the Industrial Tribunal under Section 10(1)(d) read with the Third Schedule of the Act in exercise of its original jurisdiction to resolve the dis- puted questions of fact. Further, the VRS produced on C record by the Management gives it the discretion to ar- bitrarily fix the compensation varying from Rs.50,000/- to Rs. 7, 11,000/-, which if proved, would be considered as arbitrary and there would be a grave miscarriage of 0 justice to the concerned workmen. This aspect of the matter has been ignored
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