Labor Law - 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 ...

Supreme Court Protects Bank Officer’s Pension Rights: Mandates Board Consultation for Deductions

The Supreme Court held that under Regulation 33 of the Central Bank of India (Employees’) Pension Regulations, 1995, prior consultation with the Board of Directors is mandatory before reducing the pension of a compulsorily retired employee below the full admissible amount. The Court emphasized that pension is a constitutional right under Article 300A and cannot be curtailed without strict adherence to procedural safeguards. The word "may" in Regulation 33(1) does not grant discretion to reduce pension below two-thirds of the full amount but clarifies eligibility. The judgment clarified that clauses (1) and (2) of Regulation 33 must be read harmoniously, and any reduction in pension requires prior Board consultation, rendering post-facto approval insufficient. The High Court's interpretatio...

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...