Industrial Dispute - The Legal Chamber

Supreme Court Directs Independent Officer to Verify Arrears, Stop Illegal Recoveries from Workers

28Dec

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Directs Independent Officer to Verify Arrears, Stop Illegal Recoveries from Workers

This Supreme Court judgment addresses contempt proceedings for non-compliance with a prior Supreme Court order modifying an industrial tribunal award. The Court appoints an auditor to resolve wage calculation discrepancies, assess excess payment recoveries, and determine statutory gratuity interest. It refrains from intervening in a separate High Court matter concerning provident fund dues, affirming the High Court's competence on that issue. Facts Of The Case: The contempt petition arose from the Brihanmumbai Municipal Corporation's (BMC) non-compliance with a Supreme Court judgment dated April 7, 2017. That judgment had modified an Industrial Tribunal award, which originally directed the BMC to grant permanent status and retrospective benefits to approximately 2,700 sanitation workers ...

Employers Must Accommodate: Supreme Court’s Landmark Ruling on Medical Disability & Jobs

This Supreme Court held that a binding Memorandum of Settlement under the Industrial Disputes Act, 1947, which specifically provided alternate employment for colour-blind drivers, created an enforceable statutory obligation on the employer. The subsequent settlement and internal circulars could not override this specific contractual right, and the Corporation's failure to explore redeployment violated principles of natural justice and statutory compliance. Facts Of The Case: The appellant was appointed as a driver by the Andhra Pradesh State Road Transport Corporation (APSRTC) in 2014. During a subsequent periodic medical examination, he was found to be colour blind and declared medically unfit to continue in his role as a driver. Following this, the appellant sought alternate employment...

Supreme Court Upholds Right to Shut Business, Orders ₹15 Crore Compensation for Workers

This judgment primarily interprets Section 25-O of the Industrial Disputes Act, 1947, regarding deemed closure. The Court examined if an application for closure was complete and if the State's communication constituted a valid refusal within the statutory 60-day period for deemed permission. It also considered the "appropriate Government's" role and Article 19(1)(g) (freedom of trade) implications. Facts Of The Case: The case originated from an application by Harinagar Sugar Mills Ltd. (Biscuit Division) seeking permission to close its undertaking, as required under Section 25-O of the Industrial Disputes Act, 1947. The company sought closure due to various reasons, including financial viability issues. The central dispute revolved around whether the State of Maharashtra, as the appropri...