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TMI Blog2022 (1) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... r to agree for re-deployment. There was no evidence found on record to hold that the Regional Accounts Office, Nagpur formed part and parcel of the manufacturing process undertaken by various factories. It is on this basis that it was concluded that there was no material on record to satisfy the test of functional integrality, interdependence and componential relationship between the Regional Accounts Office and the various factories. On this basis it has been held that the provisions of Section 25-O(1) of the Act of 1947 were not attracted. The closure was governed by the provisions of Section 25FFF and that course had been duly followed. Once it is found that the closure of the Regional Accounts Office at Nagpur was pursuant to the settlements between the Federation and the Management the proviso to Section 9A would stand attracted. As per the said proviso, no notice of change would be required to be given if such change is effected pursuant to any settlement or award - On the factum of closure being established there would be no occasion to hold that such closure amounted to alteration of the conditions of service. Admittedly, the provisions of Item I of Schedule IV to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n merged into Hindustan Lever Limited. According to Union the Federation of its employees is the apex body of trade unions. From 1962 onwards various agreements were entered into by the Federation with the Management of Brooke Bond India Limited concerning service conditions and pay-scales of its employees. According to the Union representing about nineteen employees of the Regional Accounts Office, Nagpur the activities of the Regional Accounts Office and the manufacturing activities carried out at different factories especially the factory at Kanhan were interrelated and interdependent. All of them were thus constituted one industrial establishment. The services of the employees of Brooke Bond India Limited were transferable from various factories to the Regional Accounts Office and vice versa. On 05.01.2001 a notice of closure was displayed by the Management at the Regional Accounts Office, Nagpur. As per that notice which was not preceded by a notice of change as required by Section 9A of the Industrial Disputes Act, 1947 (for short, the Act of 1947 ) the activities of the Regional Accounts Office, Nagpur were closed down. Since this notice of closure did not contain any reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder Section 9A of the Act of 1947. On the basis of these findings the judgment of the Industrial Court was set aside and the writ petition was allowed. Being aggrieved by the aforesaid judgment, the Union has preferred the present letters patent appeal while the Management has preferred crossobjections seeking to challenge certain adverse findings recorded against it. 5. Shri S.D. Thakur, learned counsel for the appellant-Union reiterated the submissions that were canvassed before the learned Single Judge while supporting the order passed by the Industrial Court. According to him, the notice of closure dated 05.01.2001 was illegal since there was no reason mentioned therein that prompted closure of the Regional Accounts Office. Referring to the provisions of Section 25FFF of the Act of 1947 it was submitted that the workmen were entitled to notice and compensation in accordance with the provisions of Section 25F of the Act of 1947. The conditions precedent to retrenchment of workmen as stipulated therein required giving of one month s notice in writing indicating reasons for such retrenchment. Since the requirements of such Clauses (a) and (b) of Section 25F were mandatory in n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be restored. 6. Shri H.V. Thakur, learned counsel for the respondent nos.1 to 3-Management supported the judgment of the learned Single Judge. According to him the learned Single Judge by applying the correct legal tests in the light of the material on record was justified in holding that there was absence of functional integrality between the activities of the Regional Accounts Office and other establishments of the Company. As per the various settlements with the Federation, the Management had clearly indicated its desire to close down the activities of the Regional Accounts Office at Nagpur. Appropriate options were given to the employees therein but the same were not accepted by them. There was no option therefore to close down the Regional Accounts Office and hence it was not correct to contend that the same amounted to retrenchment. Referring to the provisions of Section 2(cc) and 2(oo) of the Act of 1947 it was submitted that retrenchment required existence of a live industry which was in contra-distinction with a permanent closing down of a place of employment or part thereof. He urged that the provisions of Section 25-O were not applicable in the facts of the case and i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e submitted that as a policy decision, the Management was not desirous of pressing the aspect of recovery of payments already made. It was then submitted that since the cause of action for filing the complaint was the termination of nineteen employees, the Union ought to have approached the Labour Court and not Industrial Court. In that context reliance was placed on the decisions in Rajneesh Khajuria Versus Wockhardt Limited Another [(2020) 3 SCC 86], Shankarprasad And Lokmat Newspapers Pvt. Ltd., Nagpur [1997 II LLJ 195], Executive Engineer, Electrical Division, Nagpur Another Versus Prakash Devidas Kalasit [1985 Mh.L.J. 338], Pepsico India Holdings Pvt. Ltd. And Noshir Elavia Another [2002 II LLJ 721] and Manoj Amdas Ingle Others Versus Member, Industrial Court, Nagpur Another [2004 (3) Mh.L.J. 41]. It was thus submitted that considering the fact that the entire material on record had been considered by the learned Single Judge there was no reason to interfere with the impugned judgment. However, the adverse findings as challenged in the cross-objection were liable to be set aside. 7. We have heard the learned counsel for the parties at length and with their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts Office at Nagpur was pursuant to the settlements between the Federation and the Management the proviso to Section 9A would stand attracted. As per the said proviso, no notice of change would be required to be given if such change is effected pursuant to any settlement or award. The Union has not been in a position to demonstrate that the closure of the Regional Accounts Office as per notice dated 05.01.2001 was not pursuant to the settlement at Exhibits 53 to 59. Reliance has been rightly placed on the decision of the learned Single Judge in Anglo-French Drugs and Industries Ltd. (supra) by the learned counsel for the Management that for alteration of the conditions of service, existence of a live industry is necessary. On the factum of closure being established there would be no occasion to hold that such closure amounted to alteration of the conditions of service. As regards the finding recorded by the learned Single Judge that the closure of the Regional Accounts Office was a local issue, the basis for that conclusion is that in none of the settlements was any provision made to enable the parties to the settlement to raise a question about illegal closure. In absence of an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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