industry not paying minimum wages has no right to continue...

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1 New Delhi: An industry which does not pay the minimum wages to its workers has “no right to continue”, the Delhi high court has said, terming non-payment of such wages as “unconscionable and unpardonable”. The employment of workmen without paying them the minimum wages constitute a criminal offence for which punitive sanctions are provided under the minimum wages act, 1948, the high court said. The order was pronounced by the court as it allowed the petition of a gardener and dismissed the plea of his employer, the Central Secretariat club, on the issue of payment of minimum wages to him as prescribed by Delhi Government. Justice C Hari Sankar, directed the club to disburse to gardener Geetam Singh the difference in payment between the wages and paid and the minimum wages payable to him under the act from September 1, 1989 to September, 1992, in addition to the amount awarded by the labour court. The court also directed the club to pay Rs. 50,000 cost to the man for not complying with the labour court‟s order passed 14 years ago directing it to pay Rs. 15, 240 to singh for the period between October, 1992 and September, 1995. It said the total amount to be paid to the man shall be given with an interest of 12 per cent per annum from the date of award, July 16, 2004 till the date of paying him and directed that the payment should be made within four weeks of the passing of this order. “ Non-payment of minimum wages, to a workman is unconscionable and unpardonable in law”, the court said, adding”…(the) discussion leaves no manner of doubt that minimum wages are the basic entitlement of the workman, and an industry which employs workmen without paying them minimum wages has no right to continue”, As per the order, Singh had worked with the club from September 13, 1989 to September 30, 1995 Advocate Anuj Aggarwal, appearing for singh, submitted that the workman was entitled to be paid difference in wages for entire period from September 13, 1989 to September 30, 1995 and the labour court materially erred in limiting the award of differential wages only to the period October 1992 to September 1995. The club‟s advocate said they were willing to pay Rs. 15,240 awarded by the tribunal, which was the difference between the wages paid to Singh and the minimum wages payable to him, for the period October, 1992 to September, 1995. However, the court said” such magnanimity appeared to have dawned on the club too late in the day” as despite not obtaining any stay from his court, it was admitted that no payment in accordance with the award has been made to the man and he has been paid only litigation expenses. NEWS Industry not paying minimum wages has no right to continue: Delhi High Court

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Page 1: Industry not paying minimum wages has no right to continue ...geogujarat.com/images/uploads/downloads/1535452548.pdfThe order was pronounced by the court as it allowed the petition

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New Delhi: An industry which does not pay the minimum wages to its workers has “no right to continue”, the Delhi high court has said, terming non-payment of such wages as “unconscionable and unpardonable”.

The employment of workmen without paying them the minimum wages constitute a criminal offence for which punitive sanctions are provided under the minimum wages act, 1948, the high court said.

The order was pronounced by the court as it allowed the petition of a gardener and dismissed the plea of his employer, the Central Secretariat club, on the issue of payment of minimum wages to him as prescribed by Delhi Government.

Justice C Hari Sankar, directed the club to disburse to gardener Geetam Singh the difference in payment between the wages and paid and the minimum wages payable to him under the act from September 1, 1989 to September, 1992, in addition to the amount awarded by the labour court.

The court also directed the club to pay Rs. 50,000 cost to the man for not complying with the labour court‟s order passed 14 years ago directing it to pay Rs. 15, 240 to singh for the period between October, 1992 and September, 1995.

It said the total amount to be paid to the man shall be given with an interest of 12 per cent per annum from the date of award, July 16, 2004 till the date of paying him and directed that the payment should be made within four weeks of the passing of this order.

“ Non-payment of minimum wages, to a workman is unconscionable and unpardonable in law”, the court said, adding”…(the) discussion leaves no manner of doubt that minimum wages are the basic entitlement of the workman, and an industry which employs workmen without paying them minimum wages has no right to continue”,

As per the order, Singh had worked with the club from September 13, 1989 to September 30, 1995

Advocate Anuj Aggarwal, appearing for singh, submitted that the workman was entitled to be paid difference in wages for entire period from September 13, 1989 to September 30, 1995 and the labour court materially erred in limiting the award of differential wages only to the period October 1992 to September 1995.

The club‟s advocate said they were willing to pay Rs. 15,240 awarded by the tribunal, which was the difference between the wages paid to Singh and the minimum wages payable to him, for the period October, 1992 to September, 1995.

However, the court said” such magnanimity appeared to have dawned on the club too late in the day” as despite not obtaining any stay from his court, it was admitted that no payment in accordance with the award has been made to the man and he has been paid only litigation expenses.

NEWS

Industry not paying minimum wages has no right to continue: Delhi High Court

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“This court is, therefore, constrained to observe that any reluctance on the part of an employer, to award minimum wages for a workman for the period during which he had admittedly worked, it is not only illegal and immoral but also invites criminal liability.

“Such an attitude erodes the vary foundations of a socialist society which the preamble of the constitution professes us to be, and belies the promises held out to every citizen by the constitution,” it said. (H. T., 6.11.2017)

One of the youngest professionals and the first Indian to become the CEO of India and south Asia for Japanese Consumer electronics major Panasonic, 45- years –old Manish Sharma when asked about the necessity of an MBA (he does not have one) said “I would rank apprenticeship as the highest qualification, as it not only helps you understand and deal with business but assists you to grow alongside a team while grooming yourself. A business degree is a handbook to learn the skills for its effective handling and segments constituting it. My daily experiences are my biggest source of learning”

India‟s biggest startups are betting on fresh graduates, far more than on experienced talent. Some 57 percent of hiring by the top nine most-funded startups is of such graduates says a study by job portal indeed.

The study analysed job postings between October 31, 2016 and October 31, 2017, for ventures valued at over$ 1 billion in their last round of funding – Flipkart, Hike Messenger, In-Mobi, Mu Sigma, Ola, Paytm, Shop clues, Snapdeal, ReNew Power and Zomato.

Snapdeal emerged as the unlikely top hirer, accounting for 53 per cent of all job postings by the nine companies. The e – Commerce Company had laid off a large number of its employees this year after its failed merger talks with Flipkart. So the hiring numbers perhaps reflect partly an effort to substitute higher cost talent with lower cost ones.

The popular Hindu Business Line reports that the MBAs have an edge over chartered accountants (CAs) in India Inc.‟s CEO club as companies go global, requiring skills beyond financial management.

While the charted accountant (CA) certification was earlier considered a robust qualification for the CEO‟s post, the number of CAs at the top in nifty 100 companies has decreased from 18 to 11 in the last four years.

During the same period, MBAs strengthened their hold over corner offices, up from 28 in 2013 to 45 now, according to the prime database group.

Apprenticeship is the highest qualification

Fresh graduates account for 57% of startup hiring: study

MBAs make better Chief Executive than CAs

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Some of the best-known CEOs and managing directors in India are CAs, including bankers Naina Lal Kidwai, Deepak Parekh, Keki Mistry, Aditya Puri, industrialist kumar Mangalam Birla, George Alexander Muthoot of the Muthoot Group, Rakesh Jhunjhunwala and TV Mohandas Pai. But there is a transformation now as the numbers show.

The Employees‟ State Insurance Corporation is working on a plan to set up societies across states for timely delivery of services to intended beneficiaries towards reimbursement of their medical bills.

Of late, ESIC has been receiving complaints of delays by state agencies to process medical reimbursements and sometimes-even efforts to bury them, said Raj Kumar, Director General, Employees‟ State Insurance Corporation (ESIC), at an industry seminar in Delhi.

The corporation, he said, is firming up a plan to create societies under the society act in all states capitals that will have a mandate to resolve ESIC reimbursement issues of the beneficiaries.

The charm of fetching a job overseas in waning in India as political uncertainty abroad has suffered highly skilled Indian talent to stay at home to look for employment, says a survey. As per a recent data released by global job site indeed, there has been a 38 per cent decrease in Indians looking to move to the US and 42 per cent decrease in Indians eyeing for the UK in the last year. This growing popularity of India as an employment destination is further bolstered by government initiatives such as „Make in India‟ which offers ease of doing business in India.

According to Mercer‟s 2017 India total remuneration survey, companies are likely to dole out 10 per cent salary increase across industries in 2018, consistent with 2016 and 2017. The survey of 791 organisations across industry sectors found that 55 per cent companies intend to hire in the next 12 months, as against 48 per cent last year.

Having a gender diverse workforce could be the flavour of the next financial year. In a study by BTI consultants, based on insights gathered through a market mapping of the Indian business landscape representing over top 100 corporates, nearly 70% of organisations said they would be hiring more women in 2018-19.

ESIC to set up societies in states to fix reimbursement issue

Overseas job charm in declining

2018 to see more hirings, salary rise of 10%

70% cos to up women hires for FY 19: study

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The ministry of labour & Employment is planning to launch a national licence for staffing firms supplying contract workers across industries, a move that seeks to make doing business easier for them. Since staffing firms typically operate from multiple locations, a national licence will help increase formalisation of the workforce.

The licence will be based on a set criterion and renewed every three years. It can be obtained on payment of fees and a bank guarantee as security for due performance of their obligations. At present, staffing firms are required to make a small deposit as security to the government. They are required to seek approvals for hiring contract workers at every location or premises and for every new person hired.

The government and the corporate sector employ a large number of contract

workers, who now account for 55% of public sector jobs and 45% of those in the

private sector. Furthermore, their numbers are on the rise in the country because

they can be paid less than permanent workers and retrenched more easily.

India Inc’s topline growth to hit 5 year high of 9% in Q3, says Crisil Ahead of the start of earnings season, domestic rating agency Crisil today said it expects India Inc‟s revenue growth to hit a five-year high of 9 per cent for the October-December 2017 period. However, profits will continue to contract, primarily due to the rising commodity prices, the note by its research wing said. The aggregate top line of companies in key sectors will grow 9 per cent over same period last year on higher realisations in steel, aluminium, cement and crude oil-linked sectors, and a pick-up in consumption-driven sectors such as auto and aviation, its research wing said. The revenue growth, which comes after a broad based improvement in the preceding second quarter that was taken as a prelude to a cyclical upturn, is ahead of inflation by a meaningful margin now, Crisil Ratings‟ senior director Prasad Koparkar said. After 6% rise in Jan, steel mills see room for more price hikes next month After raising prices by five to six per cent in January, steel mills plan to do so by another Rs. 2,500-3,000 a ton in February, to bridge the gap between domestically produced and landed cost of imported steel, besides other cost pressures. Government-owned NMDC raised iron ore prices this month by 19-22 per cent, one of the steepest ever. This followed similar price hikes by private miners in Odisha due to the suspension of production at five major mines in the state, by Supreme Court order. NMDC had also raised ore prices in December, by 10-13 per cent. In calendar year 2017, the country's largest iron ore miner has raised prices 48 per cent, to match those in international markets. This has prompted steel makers to pass it on to consumers. They raised product prices by up to Rs 2,500 a ton for January to maintain their profit margin.

Government will offer pan – India licence for providing contract workers

Public sector engaging contract labour higher than the private sector

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Internet speed far below what service providers claim: Study A study conducted by a voluntary action group working for consumer rights has found that the internet speed provided to users in the country is far below what is claimed by the service providers, and is amongst the lowest internationally. The study, conducted by the „Consumer Voice‟, has also concluded that consumers are not able to distinguish among poor, average and good quality of service. “A striking finding was that the internet speed the service providers are giving to the users are far below what they claim and amongst the lowest internationally,” the group said in a release. The study has found out that it is not just the provision of service that will help the country become „Digital India‟ rather quality of internet service that determines the sustainability of this vision. New industrial policy in few months: Suresh Prabhu The new industrial policy which seeks to promote emerging sectors will be released within a few months, Commerce and Industry Minister Suresh Prabhu said today. "The new industrial policy should be releasing in next few months," he told reporters here. The proposed policy, the draft of which has been prepared by the ministry, will completely revamp the Industrial Policy of 1991. Among other things, it would endeavour to reduce regulations and bring in new industries currently in focus. The Department of Industrial Policy and Promotion (DIPP) in August floated a draft industrial policy with the aim of creating jobs for the next two decades, promote foreign technology transfer and attract USD 100 billion FDI annually.

World Bank says India has huge potential, projects 7.3% growth in 2018 With an "ambitious government undertaking comprehensive reforms", India has "enormous growth potential" compared to other emerging economies, the World Bank said on Wednesday, as it projected country's growth rate to 7.3 per cent in 2018 and 7.5 for the next two years. India, despite initial setbacks from demonetization and Goods and Services Tax (GST), is estimated to have grown at 6.7 per cent+ in 2017, according to the 2018 Global Economics Prospect released by the World Bank here today. "In all likelihood India is going to register higher growth rate than other major emerging market economies in the next decade. So, I wouldn't focus on the short-term numbers. I would look at the big picture for India and big picture is telling us that it has enormous potential," Ayhan Kose, Director, Development Prospects Group, World Bank, told PTI in an interview.

Govt brings back fixed-term employment, central trade unions to oppose move The Union government has issued a draft notification to allow all businesses to offer fixed-term contracts to workers. This will enable industries to hire workers for short-term assignments and terminate their services once the projects are completed. The Labour and Employment Ministry brought back the proposal, junked earlier last year, after receiving a demand from various quarters of the industry, especially food processing and leather sectors.

India, Israel to expand industry cooperation during Benjamin Netanyahu visit Accompanied by more than 70 industry representatives from sectors such as agriculture, water technology and security, leaders of India and Israel will discuss

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cooperation in the fields of agro-business, water management and security when they meet in New Delhi next week. A visit that comes six months after Prime Minister Narendra Modi‟s visit to Israel, Benjamin Netanyahu would be the second Israeli Prime Minister to visit India since diplomatic relations were established between the two countries in 1992 and it comes after 15 years after the first visit by Prime Minister Ariel Sharon in 2003. Long working hours a challenge for young job seekers, says survey Long working hours, lack of flexibility and need for better compensation are among the challenges cited by young job seekers, according to a survey. Job portal Monster. com‟s survey focused on having a better understanding about the challenges faced by young people – 18-34 years old – while looking for their first job. Around 66 per cent of the respondents found themselves under-prepared in their first job while about 60 per cent left their first job for professional growth and work opportunities, as per the survey titled „My First Job‟. The findings are based on a survey of 4,920 job seekers. FMCG revenue seen rising 14.8% in Q3 on better rural demand Fast moving consumer goods (FMCG) players, who have been benched for the past two years, are expected to see a revenue growth of 14.8 per cent in the December quarter despite flat margins, say a report. The optimism comes from improved consumer sentiment, and gradual rise in rural demand, says a report by report by domestic brokerage ICICI Securities. In the September quarter, the sector clipped at a low 5.2 per cent. "We believe the acceleration in revenue growth is largely attributable to a pick-up in consumer sentiment, gradual demand pick-up in rural areas and also due to a lower base," the report said today. But the brokerage expects gross margins to remain flat with an expected 160 bps rise due to operating leverage benefits and lower other expenditure. We expect post-tax profit to jump 29 per cent," it noted. Thanks to FDI norms tweak, joint audits will boost Indian entities

Companies will now have to go for joint audits in case a foreign investor insists on

having an international auditor, a move that will provide a fillip to Indian audit

entities.

The government's decision is seen as a significant step towards boosting the

prospects of local auditing firms amid the backdrop of Big 4 audit firms holding

sway, especially when it comes to companies where there is an overseas investment.

Following extensive deliberations and an expert panel report related to audit firms,

the government decided to tweak the auditing requirements with respect to

companies having foreign investments.

While relaxing the Foreign Direct Investment (FDI) policy last week, the government

said that there were no provisions in respect of specification of auditors that can be

appointed by the Indian companies receiving foreign investments.

Commerce Ministry working on new support measures for next foreign

trade policy

The commerce ministry is working on new schemes for the next foreign trade policy

(FTP), to be released in 2019-20, with a view to boost exports, a senior government

official said. The ministry has asked all the commodity boards and the concerned

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ministries to identify those “support” structures, which are compliant to global trade

rules. “These support measures could be some schemes or some incentives or it could

be infrastructure related. These measures should benefit maximum number of

industries,” the official said. The ministry has recently released the mid-term review

of the current foreign trade policy. “We have started the work now, so that by the

time we have to come with the new FTP, we would be ready with the final blueprint

as we have to consult finally with the finance ministry,” the official added. The five-

year foreign trade policy provides guidelines for enhancing exports with the overall

objective of pushing economic growth and generating employment.

First labour code on wages likely to be passed in budget session

Looking to bring a wave of labour reforms this year, the government will push its

first labour code -- Wage Code Bill -- in the forthcoming budget session which would

enable it to set benchmark minimum wage for different regions. "Wage Code Bill will

be the first labour code which would be pushed for passage in the budget session.

Labour ministry is expecting Parliament's select committee to table the bill in the

budget session beginning by the end of this month," a source said. The draft Code on

Wages Bill 2017 was introduced in the Lok Sabha in August 2017. Thereafter, it was

referred to the select committee for scrutiny.

'India to post average GDP growth of 7.3 per cent over 2020-22'

The Indian economy is expected to witness an average GDP growth of 7.3 per cent

over 2020-22, says a Morgan Stanley research report. According to the global

financial services major, the structural growth story in India remains strong from a

medium term perspective. "The uptick in the private capex cycle, which we anticipate

will begin in 2018, will ensure that the economy enters into a sustained and

productive growth cycle," Morgan Stanley said in a research note, adding that over

2020-22, it expects the economy to post an average GDP growth of 7.3 per cent.

Moreover, the overall policy mix will also remain supportive of a further

improvement in productivity, which will help keep macro stability risks limited, it

added.

Jittery over Govt’s anti-profiteering drive under GST, firms may move court Anxious over the government's anti-profiteering drive under the goods and services tax regime, companies in the segments of fast-moving consumer goods (FMCG) and information technology (IT) software are planning to petition the high courts in Delhi and Mumbai, seeking more clarity on the clause. While the government has not yet prescribed rules or guidelines to compute profiteering, it has sent notices to some companies, including Hard castle Restaurants, Lifestyle, and Pyramid Infratech. “There is a lot of ambiguity in the anti-profiteering clause," said a representative of an FMCG company, who did not wish to be identified. He said product prices were not based on taxes alone but on supply and demand conditions, supplier cost, and other factors.

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Govt plans comprehensive review of functioning of independent

directors

The government plans to carry out a comprehensive review of the functioning of independent directors, including analysing the reasons for their exit from the boards of companies, as part of efforts to strengthen the corporate governance framework. The corporate affairs ministry, which is implementing the Companies Act, is also looking to bolster the regime for independent directors and might also take a relook at certain regulatory requirements pertaining to their appointment and removal, a senior government official said. Besides, the ministry would be creating a database of independent directors under the Companies Act, 2013.

Exempt export units from 'sunset clause' to boost trade: SEZs to govt

Exporters of goods and services from designated export-oriented units (EOUs) and special economic zones (SEZs) have urged the government to exempt export-centric and employment-generating units from the sunset clause, to boost exports of goods and services from India.

In a letter addressed to the Union Finance Minister Arun Jaitley, the Export Promotion Council of EOUs and SEZs said that frequent change in government policies has led to a „trust deficit‟ in such export promotion zones, affecting fresh investments from domestic and overseas investors.

Introduced in 2005, the SEZ Act had attracted huge investments in its initial years. But then, the Congress government levied Minimum Alternate Tax (MAT) and Dividend Distribution Tax (DDT) in 2012. These levies worked as a speed breaker for capital inflows into these zones, which were initially planned to be tax free.

India likely to see growth of 7-7.5 pct in 2018/19 fiscal year There is robust and broad-based revival in the Indian economy that coexists with macroeconomic challenges, chief economic adviser Arvind Subramanian, who presented the Economic Survey 2017-18 on Monday, said at an interaction. Edited excerpts: On Fiscal Consolidation This has been an unusual year because of demonetisation and GST. This is well known... There are no surprises... If activity is picking up, inflationary pressure is mounting. On Interest Rates The Indian economy could have for about a period of 18 months benefited from lower interest rates, in the period when we had really high real interest rates and the economy was weak. On Rising Crude Oil Prices We had thought that oil would not go above $55-60 per barrel. We have been proven wrong on that and we should admit that. On Growth There is robust and broad-based revival in the Indian economy. The direction is very good, but the growth is still below potential. When we give a range between 7 and 7.5%, it is because there are factors working both ways. Unless we get more data I don't want to assign probabilities to where we are going to be. Leadership changes likely in some public sector banks The government is considering a comprehensive reshuffle of top executives at state-run lenders, days after it unveiled a reform agenda linked to its recapitalisation plan.

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A senior finance ministry official confirmed that managing directors and chief executives of about four public sector banks (PSBs) may be moved as their performance has not been up to scratch. This is meant to send a signal to others. "Their performance is under review. Most of these lenders are already under the RBI's prompt corrective action (PCA) plan and if required we will make some leadership changes," he said. Last week, the government announced it will give Rs 88,000 Crore of capital support to 20 state-run banks in the current fiscal. This infusion is contingent on their performance and the changes they make. These will be evaluated by the respective bank boards. Government to bring over 10 crore BPL people under new health insurance scheme Few industries get an opportunity to grow by a third in one stroke, but the general insurance industry has, thanks to the budgetary proposal of providing health cover to a huge population. The industry has an annual premium opportunity of between Rs 30,000 crore and Rs 50,000 crore, as the government plans to bring over 10 crore people below the poverty line under a health insurance scheme and enhance health insurance cover to Rs 5 lakh from Rs 30,000. "The new health insurance scheme announced has the potential to match, if not dwarf, the crop segment, which saw momentous growth during the last two years," said Alice Vaidyan, chairman, General Insurance Corp Re. Currently, the Rashtriya Swasthya Bima Yojna provides an annual coverage of only Rs 30,000 to poor families. The average premium paid per policy is around Rs 500.

Manufacturing growth slips to 3-month low in January: Survey Manufacturing sector grew at its slowest pace in three months in January as factory output, new business orders and employment rose at slower rates, a monthly survey said today. The Nikkei India Manufacturing Purchasing Managers' Index (PMI) fell from December's 60-month high of 54.7 to 52.4 in January, indicating modest improvement in operating conditions across India's goods producing economy. This is for the sixth consecutive month that the index remained above 50-point-mark that separates expansion from contraction, but the rate of expansion is lowest in three months. "Following December's stellar performance, growth in the Indian manufacturing economy lost some impetus, reflected by slower growth in output, new orders and employment," said Aashna Dodhia, Economist at IHS Markit and author of the report.

Budget 2018: Govt's subsidy burden to go up by 10% to Rs 2.93 trillion The central government‟s subsidy burden is expected to rise by about 10 per cent to Rs 2.93 trillion in 2018-19, primarily due to a 21 per cent increase in food subsidy. Fertiliser subsidy is expected to rise by eight per cent and petroleum subsidy only marginally. Interest subsidy is to go down by 11 per cent to Rs 209.2 billion. There will be a 35 per cent scale-up in expenditure on account of the subsidy requirement under the National Food Security Act. A provision of Rs 1.38 trillion has been made; the current financial year is likely to end with Rs 1.02 trillion. Overall, the food subsidy is estimated to shoot up to Rs 1.69 trillion, from the Revised Estimates of Rs 1.4 trillion in the current year. In 2016-17, the government spent Rs 1.1 trillion on this. Indian economy to grow at 8.5 pc in FY19: Power Min India's economy will grow at 8.5 per cent next fiscal and the 7.5 per cent growth projection by economists is on the "conservative side", Power Minister RK Singh said

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today. "The economists are saying that our growth rate will touch 7.5 per cent in the coming financial year. I think that they are even on the conservative side. Growth will touch at least 8.5 per cent," Singh said while addressing the 7th India Energy Congress. "India is on the cusp of becoming a great prosperous country. The momentum has started. The last quarter results show that. The adaptation to GST (Goods and Services Tax) regime has happened. There is growth in GST collection. There is 50 per cent increase in GST tax base. Income Tax department has tech to trace black money, tax criminals: CBDT chief The Income Tax (IT) department possessed the technology to track suspicious transactions and black money and it would go after all those who were indulging in these crimes, the CBDT chief said today. Calling it a "big challenge" for the department to bring the tax evaders into the IT net, Central Board of Direct Taxes (CBDT) Chairman Sushil Chandra said they were getting all the required information from the banks and other establishments as part of their measure to check tax evasion. "The department's action, post demonetisation, is for everyone to see. We undertook a number of steps that also included enforcement action. We have issued about two lakh notices to those who have made deposits of over Rs 15 lakh post the note ban, but have not responded to our messages. Digital transactions continue to grow in January Continuing its strong growth momentum, Unified Payments Interface (UPI) has clocked 151.8 million transactions for the month of January against 145 million transactions reported last month, growing 4.6%. Though the growth trend has maintained, the rate of growth has fallen from almost 40% which it had clocked last month. Similarly as per data released by the government, the total value of transactions undertaken digitally for the current financial year stood at almost Rs 4.4 lakh Crore, with BHIM (Bharat Interface for Money) clocking a daily volume of 2.8 lakh. Further releasing data around Aadhaar Enabled Payments, the ministry of electronics and IT (Meity) also said that including both financial and non-financial transactions, the total had reached 1 billion. Making of an insurance giant: Government plans to merge three of its unlisted insurance firms The government plans to merge three of its unlisted general insurance companies to create a behemoth that will control a third of the non-life insurance market and be listed on stock exchanges to fetch better valuation. National Insurance Company, United India Insurance Company and Oriental India Insurance Company will be merged, an entity that could be a dominant player in the Rs 1.5-lakh-crorea-year motor, health and industrial insurance industry, which is seeing intense competition from private players. The listed state-run New India Assurance is the largest with a market share of 15%. "The merger will lead to higher retention capacity," said G Srinivasan, chairman, New India Assurance. "Subsequent listing and raising of capital will make them stronger. It will reduce the competitive intensity and will lead to better pricing and better underwriting profitability." FICCI lauds government's initiatives for MSME, agri sector The impetus to the rural economy and the overall agriculture sector in the Union Budget would be a force multiplier for overall growth in the coming years, the Federation of Indian Chambers of Commerce and Industry (FICCI) said on Thursday. "The budget is very much in line with the expectations of FICCI. It will

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drive consumption in a big way, thus helping growth in other related sectors. Additionally, the attention to the MSMEs through better access to finance or lowering of the corporate tax rate would also help spur both employment and growth in this vital segment of the economy," said FICCI President Rashesh Shah. Shah further said the stress on job creation in the Budget will help generate meaningful employment going ahead.

Government allocates Rs 5.97 lakh Crore for infra spending in 2018-19 Terming infrastructure as growth driver of the economy, Finance Minister Arun Jaitley today announced an allocation of Rs 5.97 lakh Crore for 2018-19 for infra spending, up by over Rs 1 lakh Crore from the on-going fiscal. Presenting the Union Budget 2018-19 in Parliament, Jaitley said the priority accorded to the sector was evident from the fact that Prime Minister Narendra Modi is personally monitoring infrastructure project targets and achievements. "Infrastructure is the growth driver of the economy. Our country needs massive investment in access of Rs 50 lakh Crore in infrastructure to increase growth of GDP and integrate the nation with a network of roads, airports, railways, inland water and to provide good quality services to the people," the finance minister said. For Indian Railways, he said the government has allocated capital expenditure of Rs 1,48,528 Crore for 2018-19, and all trains will soon have state-of-the-art facilities such as Wi-Fi and CCTVs. Wealth migration; 7,000 super-rich Indians shifted base in '17 India witnessed the second largest number of millionaire outflow globally after China with 7,000 high net worth individuals changing their domicile during 2017, 16 per cent more than last year, according to a report. According to the report by New World Wealth, 7,000 ultra- rich Indians shifted overseas in 2017. In 2016, the figure stood at 6,000, while in 2015 as many as 4,000 millionaires shifted base. Globally, as many as 10,000 super-rich Chinese changed their domicile in 2017. Other countries that witnessed large high net worth individual (HNWI) outflows include Turkey (6,000), United Kingdom (4,000), France (4,000) and Russian Federation (3,000). As per the migration trends, Indian HNWIs moved to the US, the UAE, Canada, Australia and New Zealand, while Chinese HNWIs moved to the US, Canada and Australia. Investment by heavy industry PSUs halved to Rs 4.3 billion in FY19 The investments by as many as 18 state-run firms under the heavy industry ministry are halved to Rs 4.37 billion for 2018-19 as compared to Rs 8.83 billion budgeted for the current fiscal. The government had estimated an expenditure of Rs 3.74 billion for the 18 PSUs, including BHEL, Cement Corporation of India and Hindustan Salts in the revised estimate of 2017-18. According to the Expenditure Budget, the government had budgeted Rs 3.7 billion for state-run power equipment maker BHEL in the current financial year, which was revised downwards to Rs 2.96 billion, and has been further slashed to Rs 2.25 billion in the 2018-19. The investment by Cement Corporation of India is pegged at Rs 422.8 million in 2018-19, higher than the revised budget estimate of Rs 22.17 Crore in the current fiscal ending March, according to the Budget presented by Finance Minister Mr. Arun Jaitley.

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Corporate tax to come down to 25% once exemptions end, says Arun

Jaitley

Finance Minister Arun Jaitley said today that corporate tax rate can be brought down

to the promised 25 per cent only after all the exemptions given to the industry have

ended. Speaking at a post-Budget meeting, organised by industry body FICCI, he said

he had in 2015 promised to cut corporate tax rate to 25 per cent, from 30 per cent, in

four years. Jaitley added however that he had also set a condition -- all exemptions

would have to go.

It would not be proper to end exemptions midway as some industries may have been

set up based on them, he said. And therefore, the opportunity to reduce the corporate

tax rate to 25 per cent will arise when all the exemptions end in the due course, he

said.

Services sector sees fastest growth in 3 months in January: PMI

A recovery in new orders propelled the services sector to its fastest growth in three

months in January, a private survey showed on Monday. Job creation accelerated to

the second strongest in more than six and a half years. The Nikkei/IHS Markit

Services Purchasing Managers' Index rose to 51.7 in January from 50.9 in December,

above the 50 mark that separates growth from contraction. "The recovery across

India's service sector continued during January, with growth in output picking up to

the joint strongest since June 2017 as underlying demand conditions improved," said

Aashna Dodhia, economist at IHS Markit.

Tax department receives 15-25 lakh PAN applications per week

The Income-Tax Department (ITD) receives 15-25 lakh Permanent Account Number

(PAN) applications per week, and takes a few hours to two weeks to allot the 10-digit

alphanumeric identifier, the government has informed Parliament. The allotment of

PAN is being carried out by the tax department through two service providers, NSDL

e-Gov and UTIITSL, which collect applications, process them, digitise the data and

submit the same to ITD for final allotment of PANs. Subsequently, physical PAN card

and/or e-PAN card is issued to the applicant. "Presently, on an average, 15-25 lakh

PAN applications are being received per week.”The time taken for processing these

applications and allotment of PAN generally ranges from few hours to two weeks,"

Minister of State for Finance Shiv Pratap Shukla said in a written reply in the Lok

Sabha.

Interest rates may rise in future, says PNB chief

Ahead of RBI's monetary policy review tomorrow, Punjab National Bank Managing

Director Sunil Mehta said lending rates are likely to go north due to hardening

inflation. "As of now interest rates are stable but the way inflation is moving, they are

likely to harden in the future," he said after announcing the third quarter numbers.

This seems to be a good news for the savers. However, borrowers will have to shell

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out extra if the lending rates go up. RBI will unveil its bi-monthly policy tomorrow

amid widespread expectations that the central bank may go in for a status quo for the

third time in a row.

884 companies under scanner in money laundering cases: Union

Minister P P Chaudhary

As many as 884 companies are under the scanner in various money laundering cases

and assets worth Rs 5,000 Crore have been attached following probes initiated as per

the PMLA, Union Minister P P Chaudhary said today. However, he said that not a

single company has been deregistered on the charges of money laundering by the

government.

As per the inputs supplied by the Finance Ministry, "884 companies are under

investigation in various money laundering cases," the Minister of State for Corporate

Affairs said in a written reply to Rajya Sabha. He further noted that investigation

against these companies has resulted in attachment of assets worth Rs 5,066.3 crore

and filing of a total of 58 prosecution cases under Prevention of Money Laundering

Act (PMLA).

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1.

2017 III CLR 840 in the Supreme Court of India September 21, 2017

Civil Appellate Jurisdiction Civil Appeal no. 4681 of 2009 presents the

Honourable Mr. Justice Arun Mishra the Honourable Mr. Justice

Mohan M Shantanagoudar Employees’ State Insurance Corporation &

Anr. (Appellants) V. Mangalam Publications (I) Private limited

(respondent)

Employees’ State Insurance act, 1948 – Ss. 2(22), 75, 82 – interim relief,

wages – whether the interim relief paid by the respondent to its employees, during

the period from 1.4.1996 to 31.3.2000, is to be treated a „wages‟ as defined u/s. 2(22)

of the ESI act and the respondent is liable to pay ESI contributions on the same? The

Apex court answered this question in the affirmative, with these conclusions: (i) the

amount paid by the respondent as interim relief, to its employees, falls within the

definition of “wages” u/s. 2(22) of the ESI act and the respondent is liable to pay ESI

contributions on the said payments. (ii) Interim relief given to employees cannot be

treated as ex gratia payment to the employees. (iii) The high court ignored to

appreciate that the effect of the ESI act cannot be circumvented by the department

office memorandum. Impugned of High Court is set aside. (Paras 1 to 12) (Civil

Appeal allowed)

Appearances: - Mr. Sonam Anand, Advocate, Mr. Sanjeev Anand, AOR for

Appellants.

Point to be noted: - The amount paid as interim relief by the employer to the

employees, definitely falls within the definition of „wages‟ under S. 2(22) of the ESI

act, 1948

2. 2017 III CLR 857 in the High Court of Judicature at Bombay April 11,

2017 Civil Appellate Jurisdiction writ petition no. 6931 of 2010 present

the Honourable Mr. Justice K K Tated, Classic Wordrob (Petitioner) v.

Raju Dhondu Jadhav (Respondent)

Industrial disputes act, 1947 – S. 17 – A – Industrial Disputes rules, 1957 – S.17

– A – Industrial Disputes Rules, 1957 – Rules 20, 26 – Restoration application to set

aside ex parte award – A challenge is from the petitioner – employer to the order of

dismissal of its restoration application, seeking setting aside the ex parte award

passed by labour court in reference (IDA) no. 645 of 2000. In view of absence of

denial of the facts mentioned by the petitioner, from the respondent – workman, the

court held that (i) on learning about the ex parte award passed against it, the

petitioner immediately applied for getting certified copy and on receipt of the same,

filed an application to set aside ex parte award within thirty days. (ii) In view of case

law available on the point, the reason assigned by Labour Court, while dismissing the

restoration application of petitioner, it is not correct to say that application filed by

the petitioner, was not maintainable in law. (iii) The impugned judgement dtd 21st

COURT JUDGEMENTS

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June 2010 passed by 7th Labour Court, Mumbai, is set aside and said miscellaneous

restoration application (IDA) no. 2 of 2008 is allowed subject to special costs of Rs.

7500/- to be deposited by the petitioner, in Labour Court, Mumbai within four

weeks, failing which this writ petition shall stand dismissed without reference to this

court. (Paras 1 to 19) (Writ petition disposed of.)

Appearances: - Shailesh S Pathak, for the petitioner. Mr. Ashok D Shetty, for the

respondent

Point to be noted: - If sufficient cause is shown, the court can condone the delay

for setting aside ex parte award under rule 26 of the Industrial Disputes Rules and

the same is upheld by the apex court in Shri Radhakrishnan Mani Tripathi Mumbai

v. L H Patel in 2008 III CLR 1043 (S.C.) (Para 17)

3. 2017 III CLR 867 in the High Court of Hyderabad (for the state of

Telangana and the state of Andhra Pradesh) January 30, 2017 writ

petition no. 4521 of 2006 present the Honourable Mr. Justice M

Seetharama Murti Chief General Manager, O & E., Hindustan

Petroleum Corporation Ltd., R R Dist & Anr. (Petitioners) v. C.

SHANKAR (Respondent)

Industrial disputes act, 1947 – S. 10(1) – Disciplinary inquiry, and unauthorized

absence from duty – discharge from service – A challenge is from the petitioner

management to the award passed by Industrial Tribunal, modifying and reducing the

punishment of dismissal from service of respondent – workman to that of his

compulsory retirement from service. The court held that (i) while modifying the

punishment awarded to respondent – workman, the tribunal has given no reasons

much less valid reasons to come to said conclusion, through it was a case of

repeatedly remaining absent from duties for pretty long periods by the respondents.

(ii) The impugned order shows that the tribunal did not examine various aspects of

the measure and nature of penalty, which was indeed properly considered by the

disciplinary authority, as well as appellate authority in this case. (iii) The penalty of

discharge imposed by the disciplinary authority and confirmed by appellate

authority, admittedly is not going to affect any monetary benefits to which workman

is entitled to on such incharge. (iv) As such there was no necessity for the Tribunal to

interfere with the punishment and modify it to one of compulsory retirement, which

is not even prescribed as one of the penalties in the standing orders of the

management. (v) As such the impugned order brooks interference by the writ court.

The punishment imposed by the disciplinary authority and confirmed by the

appellate authority is restored. (Paras 1 to 7) (Writ petition allowed)

Appearances: - Mr. P B Vijay Kumar, counsel for the petitioners. None appeared

for the respondent.

Point to be noted: - while exercising the discretionary jurisdiction, all the quasi –

judicial authorities are expected to give justifiable reasons and sound reasoning and

should not deal with the same in a causal fashion.

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4. 2017 III CLR 885 in the High Court of Gujarat May 5, 2017 first appeal

no. 1771 of 1994 present the Honourable Mr. Justice Rajesh H Shukla;

Latikaben w/o Dilip Kumar & 3 Ors. (Appellants) v. Regional Director,

Employees’ State Insurance Corporation (Defendants)

Employees’ State Insurance Act, 1948 – Ss.2 (8), 51 – A – Employment injury

– whether the injury sustained by the ex- employee can be said to be an „employment

injury‟ as defined in S.2 (8) of the ESI Act, 1948? The court answered this question in

the negative i.e., against the appellant, with these conclusions: (i) The „employment

injury‟ as defied in S. 2(8) of the ESI Act suggests a causal connection between the

injury sustained and the employment of the employee. In the absence of such causal

connection, the injury cannot be termed as „employment injury‟. (ii) In the instant

case, it cannot be said that the accident which the workman/ employee suffered,

while he had gone out of company premises for taking food, had any causal

connection with the work. The judgement of the ESI court cannot be said to be

erroneous. (iii) S. 51 – A of the ESI act, 1948, would not help the appellant herein, in

the factual background that accident in question is of 1990, while the amendment

inserting S.51 – A was added in the year 2010. Impugned Judgement of ESI court

does not call for any interference by this court. (Paras 1 to 14) (Appeal dismissed)

Appearances: - Ms. Asha H Gupta, Advocate for the Appellant no. 1. Mr. Hemant S

Shah, Advocate for the defendant no. 1.

5. 2017 III CLR 906 in the High Court of Gujarat July 4, 2017; Special

Civil Application no. 10788 of 2016 with Special Civil Application no.

8235 of 2016 present The Honourable Mr. Justice Paresh Upadhyay

ABC Bearings Limited (Petitioner) v. Ganpatsinh Bhagwansinh

Parmar & Udaysinh Shivabhai Gohil (Respondent)

Bombay Industrial Employment (standing orders) rules, 1959 – Model Standing

orders – order 27 of scheduled I – Age of superannuation, whether 60 years or 55

years – whether the labour court was justified in granting the relief to workman as

awarded, on concluding that the age of superannuation for workman was 60 years

and not 55 years. (ii) The labour court could not have termed the discontinuance of

service to retrenchment and/or illegal termination. (iii) It being case of retirement,

the workmen not only accepted retirement dues, but also had filled in necessary from

also such as application to claim gratuity etc. and received it on cessation of service

on 30.4.2009, which in terms has been named as retirement. Impugned awards are

quashed and set aside. (Paras 1 to 7) (Writ petitions allowed)

Appearances: - Special Application no. 10788 of 2016:

Mr. K M Patel, senior Advocate with Mr. Varun K Patel, Advocate for the petitioner

employer.

Mr. P H Pathak, Advocate for the Respondent no. 1 – workman, Respondent no. 2 is

served – labour court.

Special Application no. 8235 of 2016:

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Mr. K M Patel, senior Advocate with Mr. Varun K Patel, Advocate for the petitioner

employer.

Respondent no. 1 – workman has refused the notice. Respondent no. 2 is served –

labour court.

6. 2017 III CLR 924 in the High Court of Delhi April 20, 2017; FAO No. 93

of 2016 and C.M. Nos. 10222 and 6677 of 2016 Present the Honourable

Mr. Justice Valmiki J Mehta, Saket Gupta (Appellant) v. Imrana

Khatoon & Ors. (Respondents)

Employees‟ Compensation Act, 1923 – S.30 Employees‟ State Insurance Act, 1948 –

Ss.53, 75 – Compensation, who is liable – A challenge is from appellant claim/

compensation, to respondents, being legal heirs of deceased Mohd. Yameen, the

employee, who died due to an accident, during the course of his employment In view

of the fact that Mohd. Yameen was in fact an employee of M/s. Gupta Traders, a sole

proprietary concern of the father of the appellant, Sh. Vijay Prakash Gupta, and

Mohd. Yaseen can be presumed to be an „insured person‟, in the background of the

judgment of Supreme Court in the case of Bharagath Engineering v. Ranganayaki &

Anr. 2003 I LLN 819 (S.C) and the bar u/s. 53 of ESI Act, 1948, the court held that

impugned judgment passed by Employees‟ Compensation Commissioner is set aside

and respondents are directed to be made, as parties to appeal filed u/s.75 of the ESI

Act, 1948, and the respondents along with the present appellant, will be entitled to

pursue the appeal for getting appropriate claims under the ESIC act 1948, in terms of

the ratio of the judgment of Supreme Court in the above mentioned case law. (Paras 1

to 7) (Appeal disposed of.)

Appearances: - Mr. Suneel K Atreya, Advocate for Appellant. Mohd. Ataher Khan,

Advocate for Respondents.

7. 2017 LLR 1236 Gujarat High Court Hon’ble Mr. K M Thaker, J. S.C.A.

No. 15497/2007, Dt.- 5-7-2017; Shankerbhai Lebabhai Vankar vs.

Executive Engineer and others

Apprentices Act, 1961- section 18 – Apprentice – Appointed under the Apprentice Act

– not a workman – Apprentice is a trainee and not a worker – provisions of labour

laws shall not be applicable

For Petitioner: Mr. Harshad K Patel, Advocate.

For Respondents: Mr. N A Acharya and Mr. Lilu K Bhaya, Advocates

Important Points: An Apprentice engaged under Apprentices Act, 1961 will not be

a „workman‟ under section 2(s) of the Industrial Disputes Act and as such he would

not be entitled to job security under the letter Act by raising an industrial dispute

against his termination.

Merely the contract of apprenticeship has not been registered under Apprentices Act,

it would not be constructed that such an apprentice has acquired the status of

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„workman to seek the protection under Industrial Disputes act by approaching the

labour authority against his grievance about alleged termination.

8. 2017 LLR 1276 Calcutta High Court Hon’ble Dr. Sambuddha

Chakrabarti, J. W.P. No. 23270 (w)/2017, Dt/- 11-9-2017; Arihant

Plantations Pvt Ltd & Ors vs. The Regional Fund Commissioner – I

Employees‟ Provident Funds and Miscellaneous Provisions Act, 1952 – EPF dues to be

paid instalment – scope of – petitioner has to remit Rs. 1.91 crores – Rs. 76.00 lacs is

towards employees‟ contribution – Financial constraints would not stand in the way

of liquidating the employees‟ share – petitioners shall liquidate employees share in 3

equal monthly instalments – Instalments of both employees‟ share and employer‟s

share for 3 months shall go on simultaneously – EPF authority shall not take coercive

measure if instalments are deposited – A solitary lapse will entitled EPF authority to

act in accordance with law. (Paras 4 and 5)

For Petitioner: Mr. Arunava Ghosh, Mr. Shrenik Singvi, Mr. Sananda Ganguli, and

Mr. Subhadip Roy, Advocate

For Respondents (EPF Authority): Mr. Aparna Banerjee, Advocate.

Important Points: EPF appellate tribunal or the writ court may allow the employer

to make payment of EPF dues in instalments as it deems appropriate with certain

conditions.

Failure to pay the EPF dues as per instalments fixed may attract EPF authority to take

coercive measure, even on a solitary lapse, in accordance with law.

9. 2018 LLR 1 Supreme Court of India Hon’ble Mr. Arun Mishra, J.

Hon’ble Mr. Shantanagoudar, J. C.A. No. 8377/2011, D/-25-7-2017;

Employees State Insurance Corporation vs. Hindustan Milk food

Manufacturers Ltd. and others

Employees State Insurance Act, 1948 – sections 2(9) and 2(22) – employees

were employed through contractor – bills towards wages were submitted by the

employees and paid by the principal employer – employees worked for several years

on contract basis under the supervision of the principal employer – ESI inspector

visited the place – ESI authority raised demand of ESI contributions towards

employees upon the principal employer – respondents – employers challenged the

notice of the ESI authority by filling petition before the employees insurance court

which was rejected holding the principal employer to pay the contributions towards

employees – principal employer challenged the judgement of the EI court before High

court – the judgement of EI court was reversed by the high court – appellant – ESI

authority challenged the order of the high court in appeal – held, proper reasons have

not been employed by the high court – employees have worked for more than 10 years

– mode of payment is covered under sections 2(22) of the act – finding recorded by

the high court are perverse, not in accordance with law – order of high court is set

aside – appeal is allowed (Paras 2 to 4)

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For Appellant: Mr. Mahesh Srivastava, Mr. Vaibhav Manu Srivastava, Ms.

Sringarika Priyadarshni, Advocates and Mr. P. N. Puri, AOR

For Respondent(s): Mr. A. K. Ganguli, Sr. Advocate, Mr. Dinesh Madan, Advocate

and Ms. Meera Mathur, AOR.

Important Points:

Mode of piece rate payment is „wages‟ under section 2(22) of the Employees‟

State Insurance Act, 1948.

Since the employees have worked for more than 10 years on contract basis,

receiving wages on piece rate basis, they would be covered under the definition

of „employee‟ as given under section 2(9) of the act.

Since the payment of wages, tough at piece rate basis, was made by the

principal employer, to the employees, they would be treated as employees of

the principal employer, making it liable to remit ESI contributions in respect of

such employees.

10. 2018 LLR 2 Supreme Court of India Hon’ble Mr. R K Agrawal, J.

Hon’ble Mr. Abhay Manohar Sapre, J. C.A.No 10766 – 67/2013, D/- 9-11-

2017; Management of Bharat Heavy Electricals Ltd vs. M. Mani & Anr.

A. Dismissal of a workman – justification of – workman committed misconduct

of theft – domestic enquiry was held – workman was found guilty of the

charges – disciplinary authority dismissed the workman on the basis of

enquiry finding – workman challenged the order of dismissal by raising an

industrial dispute – labour held the enquiry fair and proper but held the

punishment of dismissal not justified, awarding reinstatement with full back

wages – management challenged the award in writ petition – learned single

judge allowed the writ petition by setting aside the impugned award –

remanded the case back of labour court for decided it afresh – workman

challenged the judgment of the learned single judge in writ appeal which was

allowed modifying the only to reinstatement without back-wages but

including continuity of service and other benefits – management challenged

the finding of the divisions bench in appeal by way of special leave – held,

once the departmental enquiry was held legal and proper, interference in

punishment by the labour by setting aside the same, is not justified –

interference of labour court was to be exercised with regard to quantum of

punishment only – hence, impugned judgement is set aside – order of

dismissal is legal, proper and justified. (Para Nos. 16, 29 and 32)

B. Industrial Disputes Act, 1947 – section 11-A – powers of the labour court –

scope of – when the enquiry held by the enquiry officer is confirmed to be

legal and proper by the labour court, the power of the labour court is limited

to decide the disproportionality of quantum of punishment and not the

actual merits of the case. (Para no. 18)

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C. Enquiry vis-à-vis Criminal Proceedings – scope of – in enquiry proceedings

compliance of strict rules of evidence is not required as in criminal

proceedings – enquiry finding is based on the principle of preponderance of

probabilities and not to prove the misconduct or charge beyond reasonable

doubt (Para 21)

D. Enquiry vis-à-vis Criminal Proceedings – Whether both proceedings can

continue simultaneously? Yes subject to the conditions that the enquiry has

been held independently of the criminal proceedings – even after acquittal

by the criminal court, the enquiry can still be held – staying the enquiry

proceedings awaiting decision of criminal proceedings is not justified. (Para

22)

E. Industrial Adjudication – remanding the matter – when not justified – when

departmental enquiry held to be legal and proper by the labour court and

confirmed by the writ court, remanding the entire case to the labour for a

fresh decision, is not justified since I such circumstances, a short issue is

only to decide the quantum of punishment which the writ court itself can

consider on the basis of evidence on record. (Para 23)

F. Misconduct – nature of its gravity – commission of theft on duty is a serious

charge if proved; it would justify punishment of dismissal. (Para 29)

For Appellant: Mr. B K Satija, AOR.

For Respondents: Mr. M A Chinnasamy, AOR, Mr. C Rubravathi, Mr. V

Sebthil Kumar, Advocates and Dr. Kailash Chand, AOR.

Important Points:

Once the departmental enquiry was held legal and proper, interference in

punishment by the labour by setting aside the order passed by the

disciplinary authority is not justified.

Once the departmental enquiry was held legal and proper, interference

in punishment by the labour was only to be exercised with regard to

quantum of punishment only instead of setting aside the complete order

passed by the disciplinary authority.

When the enquiry held by the Enquiry officer is confirmed to be legal and

proper by the labour court, the power of the labour court remains limited

only to decide the disproportionality of quantum of punishment and not

the complete factual merits of the case.

In enquiry proceedings compliance of strict rules of evidence is not

required as in criminal proceedings.

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Enquiry proceedings/finding is based on the principle of preponderance

of probabilities and not to prove the misconduct or charge beyond

reasonable doubt as required under criminal proceedings

The enquiry proceedings as well as criminal proceedings can continue

simultaneously subject to the condition that the enquiry is held

independently from that the enquiry is held independently from that of

the criminal proceedings.

Even after acquittal by the criminal court, the enquiry can still be held.

Staying the enquiry proceedings awaiting decision of criminal

proceedings is not justified when the enquiry is being held

independently.

When departmental enquiry is held to be legal and proper by the labour

court and confirmed by the writ court, remanding the entire case to the

labour for a fresh decision, is not justified since in such circumstances, a

short issue remains only to decide the quantum of punishment which the

writ court itself can consider on the basis of evidence on record.

Commission of theft on duty is a serious charge justifying punishment of

dismissal.

11. 2018 LLR 7 supreme court of India Hon’ble Mr. Kurian Joseph, J.

Hon’ble Mr. R. Banumathi, J. C.AJ.C.A.No.11115/2017,dt/- 7-9-2017;

Anita & Ors vs. Arun Yadav & Ors

Employees‟ Compensation Act, 1923 – section 30 – monthly income for calculation

for calculation of compensation – tribunal as well as High court has taken monthly

income of deceased driver as Rs. 4200 which has been challenged in appeal – held,

Haryana State Government has notified Rs. 4360 monthly income of a skilled

person since the deceased was driver, he should have been assessed as skilled –

Adding 50% future prospectus, it would be Rs. 6540 deduction towards personal

expenses to be made @1/4th net saving comes to Rs. 4905 – taking undisputed

multiplier it works out to Rs. 10,59,480 plus Rs.1.00 towards consortium, Rs. 1.00

lacs to each mother and father plus transportation Rs. 10000 plus funeral expenses

Rs. 25000 plus litigation expenses Rs. 50000 plus total compensation would be

15,44,480 with 9 percent interest per annum from the date of application till

making of final payment – Appeal is allowed accordingly. (Paras 2 to 4)

For Appellant: Mr. Prasanna Mohan, Advocate with Mr. Kunal Verma, AOR.

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For Respondent: Ms. Prerna Mehta, AOR, Dr. M.S. Verma, Mr. N.N. Jha, Ms.

Shashi Singh, Ms. Maccika Gautam, Ms. Ranjana Vohra, Advocates and Mrs.

Santosh Singh, AOR.

Important Points:

A driver is to be taken as a skilled worker.

For calculation of compensation under the Employees‟ Compensation Act,

1923 the monthly income is to be taken atleast at the rate of minimum wages

as declared by the appropriate government during the relevant period, but

not more than the prescribed maximum income for the purpose.

Amount towards future prospectus, as assessed by the commissioner/court

is to be added in the minimum wages and after deducting 1/4th towards

personal expenses, the net saving is to be taken for the purpose.

For arriving at the amount of compensation, the net saving is to be

multiplied by the applicable multiplier.

Amount of consortium, amount to be paid to minors, parents,

transportation, funeral expenses in case of death and litigation expenses are

to be further added as assessed by the commissioner.

Interest at the rate as granted by the commissioner is applicable from the

date of filling of claim.

12. 2018 LLR 19 Bombay High Court Hon’ble Mr. A.A. Sayed, J.

Hon’ble Mr. M. S. Karnik, J. O.O.C.J.W.P. No. 580/2002, DT/- 19-7-

2017; S. Rahuraman vs. H.M.T. Limited, Bangalore & Ors.

A. Dismissal – from service – when justified – charge against the petitioner

was of misappropriation of money – after conducting domestic enquiry,

proving the guilt against the petitioner his services were dismissed – his

departmental appeal failed – he filed writ petition challenging the orders of

the disciplinary authority and that of the appellate authority – held, during

course of enquiry, petitioner has admitted some of the charges of

misappropriation – non-supply of documents has not caused any prejudice

to the petitioner – finding of the enquiry officer satisfies the test of

preponderance of probabilities expected in disciplinary proceedings – hence,

writ petition is dismissed. (Para 18)

B. Punishment – when not disproportionate – petitioner was an account –

charges of misappropriation, as per finding of the inquiry officer, has been

proved – hence, punishment of dismissal is not shockingly disproportionate

to the misconduct proved. (Para 19)

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C. Constitution of India – article 226 – jurisdiction – writ court cannot

interfere with the finding of enquiry officer unless they are perverse – it

cannot re-appreciate the evidence as if this is an appellate forum. (Para 18)

For petitioner: Mr. C. V. Lad, Advocate

For Respondent no.1: Mr. P M Palshikar, Advocate.

Important Points:

Admission of some of the charges of misappropriation by the delinquent

employee, during the court of enquiry, is sufficient to satisfy the test of

preponderance of probabilities expected in disciplinary proceedings.

Non- supply of documents, if has not proved to have caused any prejudice to

the delinquent employee, is not fatal.

Punishment of dismissal is not shockingly disproportionate to the gravity of

misconduct of misappropriation of money since such misconduct is a grave

and serious.

Writ court is not having jurisdiction to interfere with the finding of Enquiry

officer unless the same are perverse.

Writ court is not empowered to re-appreciate the evidence as if this is an

appellate forum.

13. 2018 LLR 24 Kerala High Court Hon’ble Mr. K. Vinod Chandran, J.

W. P. (c) no. 13811/2016, dt./- 3-10-2017; Anil Rajagopal vs. State of

Kerala

A. Sexual Harassment of Women at workplace (prevention, prohibition and

Redressal) act, 2013- sections 2(n) & 3(2) – when element of sexual

harassment would not be taken in existence – in a report prepared by the

petitioner, it was mentioned “original report was abducted by Smt. P.

Rinitha” since he was to state that original report was taken away and

suppressed by Smt. P. Rinitha – the word „abducted‟ in report inspired Smt.

P. Rinitha to move a compliant of sexual harassment against the petitioner –

report of committee, constituted under the act, does not disclose any finding

of sexual harassment – the committee concluded that the petitioner is liable

to apologize to Smt. P. Rinitha – petitioner has challenged such finding of

the committee by filing writ petition – held, intemperate language, if at all,

used in a report, merely because the report was against a female employee,

cannot constitute sexual harassment – writ petition is allowed –

recommendations of the committee are set aside. (Para 11)

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B. Sexual Harassment of Workmen at workplace (prevention, prohibition and

Redressal) Act, 2013 – sections 2(n) & 3(2) – when a solitary allegation

would not constitute offence of „sexual harassment‟ – if an act or behaviour

from the male employee is not connected with sexual harassment including

allegation of a promise, threat or an offensive or hostile work environment

or a humiliating treatment to wards female employee, the existence of

offence of sexual harassment would not come into existence. (Para 9)

For Petitioner: Mr. P. N. Sukumaran, Mr. K.A. Anas and Mr. Akhil S. Vishnu,

Advocates.

For Respondents: Mr. M. Sasidran, Ms. Asha Babu, Dr. K.P. Pradeep, Mr.

Sanand Ramakrishna, Mr. t. Thasmi, Advocates & Mr. B. Vinod, Government

Pleader.

Important Points:

A solitary allegation of intemperate language, used in a report, against a

female employee, cannot constitute an offence of sexual harassment at

workplace under the provisions of sexual harassment of women at

workplace (Prevention, Prohibition and Redressal) Act, 2013.

Until an act or behaviour from the male employee is not connected with

sexual harassment including allegation of a promise, threat or an

offensive or hostile work environment or a humiliating treatment

towards female employee, the existence of offence of sexual harassment

would not come into existence.

14. 2018 LLR 48 Madras High Court Hon’ble Mr. G. R. Swaminathan, J.

C. M. A. (MD) no, 565/2015 and M.P. (MD) no. 1/2015, Dt/- 27-10-2017;

Omega Zips vs. The Joint Director, ESI corporation

Employees‟ State Insurance act, 1948 – sections 2(22)(b) and 45A – whether

conveyance allowance is „wages‟ for ESI contribution – evidence on record reveals

that conveyance allowance paid is in the nature of travelling allowance since the

object of it is to enable the employees to reach their place of work and to defray a

part of cost incurred on a travel from their place of residence to workplace and back

– hence, such a conveyance allowance is not „wages‟, to be covered under the ESI

act as already held in the case of Regional Director, employees insurance

corporation, Madras v. Sundaram Clayton Ltd., (2004) 1 LLN 630 (mad. HC)

following an earlier decision in management of Oriental Hotels Ltd. V. ESI

corporation, 2001(1) LLN 943 – hence, impugned orders are set aside – appeal is

allowed. (Paras 5 and 6)

For Appellant: Mr. T. Ravichandran, Advocate.

For Respondents: Mr. K. C. Ramalingam, Advocate.

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Important Points:

When the conveyance allowance paid is in the nature of travelling allowance

to enable the employees to defray a part of cost incurred on a travel, by

them, from their place of residence to workplace and back, is not to be

covered under the term „wages‟ as envisaged in section 2(22) of the

Employees‟ State Insurance Act, 1948.

When the conveyance is not covered under the term „wages‟ as defined under

the act, it is exempted from ESI Contributions.

15. 2018 LLR 70 Madras High Court Hon’ble Mr. G. R. Swaminathan, J.

C. M. A (MD) no. 108/2016 and C. M. P. (MD) no. 1610/2016, dt./-2-11-

2017; The Managing Director, Mahavishnu Spinning mills Pvt Ltd. vs.

R. Ramasamy

A. Employees‟/ workmen‟s compensation act, 1923 – apprentices act, 1961 –

whether an apprentice is entitled to compensation under the Act? Yes –

section 16 – commissioner workmen‟s compensation passed award in favour

of respondent who had lost two of his figures during the course of

employment due to employment injury, striking down the objection of the

appellant that the injured was not his employee but an unpaid apprentice –

employer challenged the award in appeal – held, as per section 16 of the

Apprentices act, 1961, an apprentice even unpaid is entitled to claim

compensation for the injury suffered by him during the course of his

employment – appeal stands dismissed. (Para 6)

B. Employees‟ / Workmen‟s Compensation Act, 1923 – section 3- Applicability

– contention of the employer that accident occurred since the apprentice

disregarded safety measures – the learned single judge did not agree to such

a contention stating that in order to avail exemption from making payment

of compensation on the ground of negligence on the part of the employee,

the employer has to prove on record „wilful conduct on the part of the

employee‟ which has not been proved by the employer in this case – hence,

there is no reason to interfere with the impugned order. (Para 7)

For Appellant: Mr. S. Seenivasagam, Advocate.

For Respondent: Mr. S. Laksmanan, Advocate.

Important Points:

As per section 16 of the Apprentices Act, 1961, an apprentice even unpaid

is entitled to claim compensation under the employees‟ compensation

act, 1923, for the injury suffered by him during the course of his

employment.

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In order to avail exemption from making payment of compensation on

the ground of negligence on the part of the employee as a cause of

accident, under the provisions of section 3 of the employees‟

compensation act, 1923, cord „wilful conduct on the part of the employee‟

and not otherwise.

When an employer has failed to prove by way of leading cogent evidence „

wilful conduct‟ on the part of the apprentice/employee due to which he

suffered accident during the course of his employment, the employer

would be liable to pay compensation even to the unpaid apprentice under

the employees‟ compensation act, 1923.

16. 2018 LLR 87 Kerala high court Hon’ble Mr. K Vinod Chandran, J.

W.P.(c) no. 29255/2017, Dt/-14-9-2017; Manvish Info Solutions private

Ltd. vs. Employees Provident Fund Organisation

A. Employees‟ provident funds and miscellaneous provisions act, 1952 –

sections 7A and &B – petitioner was issued notice under section 7-A of the

act – EPF contribution was assessed, determining the wages evaded from

the ambit of contribution payable under the act – petitioner filed review

petition under section 7B which was rejected – petitioner challenged the

impugned order mainly on two grounds i.e., opportunity not granted and

objections raised not considered – stand of the EP authority is that there is

no stipulation under the act for granting oral hearing – EPF authority is only

to consider the grounds taken in the review application – held, section 7B(4)

specially speaks of notice and hearing of aggrieved party – Objections of the

petitioner were that the wages and dues determined as evaded were

incentives and HRA which do not come within the ambit of contributions –

A specific requirement for notice on and hearing the of the opposite party,

before a review is allowed is only an abundant caution – an opportunity of

hearing to review petitioner is imperative in judicial or quasi – judicial

proceedings – hence, impugned order is set aside – matter is remitted back

to EPF authority wherein the petitioner would be entitled to file a written

submission with supporting documents – EPF authority would decide the

review application in accordance with law. (Paras 6 to 8)

B. Principles of natural justice – necessity of – natural justice is a pervasive

facet of secular law where spiritual touch enlivens legislation, administration

and adjudication, to make fairness a creed of life – even if a power is given to

a judicial body without specifying that the rules of natural justice should be

observed in exercising it, the nature of the power would call for its

observance – principles of natural justice, fair adjudication and equity

warrant a reasonable opportunity of hearing before an adverse order is

passed – an opportunity of hearing to review petitioner is imperative in

judicial or quasi – judicial proceedings. (Para 6)

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C. Constitution of India – article 324 – observance of principles of natural

justice – the silence of a statute has no exclusionary effect expect where it

flows from necessary implication – article 324 of the constitution of India

vests a wide power and where some direct consequence on candidates

emanates from its exercise, we must read this functional obligation (Para 6)

For Petitioner: Mr. P. Sankarankutty Nair, Advocate.

For Respondents: Mr. S. Prasanth, Advocate.

Important Points:

While deciding review application, the EPF authority is obliged to

issue notice to the opposite/aggrieved party as provided under

section 7-B (4) of the Employees‟ Provident Funds and Miscellaneous

Provisions Act, 1952.

EPF Authority while deciding review application has to give an

opportunity to the aggrieved party and dispose of his objections by

passing a reasoned order.

Indeed, natural justice is a pervasive facet of secular law where

spiritual touch enlivens legislation, administration and adjudication,

to make fairness a creed of life.

Even if a power is given to a judicial body without specifying that the

rules of natural justice should be observed in exercising it, the nature

of power would call for its observance.

Silence of a statute has no exclusionary effect except where in flows

from necessary implication in view of article 324 of the constitution of

India.

Principles of natural justice, fair adjudication and equity warrant a

reasonable opportunity of hearing before an adverse order is passed.

A specific requirement for notice on and hearing of the opposite

party, before a review is allowed is only an abundant caution.

An opportunity of hearing to review petitioner is imperative in

judicial or quasi – judicial proceedings.

17. 2018 I CLR 68 in the High court of Judicature at Bombay

(Aurangabad Bench) October 31, 2017 writ petition no. 3311 of 2012

Present the Hon’ble Mr. Justice Nitin W. Sambre Endurance

Technologies Limited, (Erstwhile M/s. Endurance Systems (India) Pvt

Limited), Aurangabad, through its authorised signatory (Petitioner) v.

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Union of India, through the standing counsel for the Union of India, &

Anr (Respondents)

Employees‟ Provident Funds and Miscellaneous Provisions Act, 1952 – S.7 A-

contributions in arrears/short payment – A challenge is from the petitioner

company to the order passed by respondent no. 2 R.P.F. Commissioner, to pay

short payment of contributions as ordered, which order was upheld by E.P.F.

Appellate Tribunal, while rejecting the appeal filed by the petitioner. The court

concluded that (i) though the petitioner had produced all the records such as

payment registers, balance sheets, audit reports, etc. on the basis of which the

Enforcement officer had prepared this report, despite the request of petitioner, the

Authority did not verify said records and passed impugned order. (ii) Impugned

order clearly shows that the record and documents produced by the petitioner were

not considered earlier by the enforcement officer and eventually by the R.P.F.

Commissioner. (iii) Even the payments made by petitioner against code no.

MH/AB/80866 in regard to contributions of Provident Fund of employees working

in the plant, which was made operational at sector K on plot no. 120 for the period

for which liability was imposed, was not considered. (iv) The Appellate tribunal

turned down the appeal filed by petitioner by passing a cryptic order, going to the

length of observing that „no documents are produced to substantiate the claim

made by the petitioner‟, in a challenge to the assessment order passed u/s. 7- A of

the act for the period from November 1999 to February 2001. Both the authorities

have not touched the documents and considered the admitted payments received

by respondent authority towards contributions. (v) in the absence of any reasons

much less transparency, when the payment of contributions against old code no. of

the same period, is not in dispute, the orders passed by the respondent no. 2

authority and by the appellate tribunal are not sustainable and hence quashed and

set aside with liberty to the respondent no. 2 authority to pass fresh reasoned

order, on considering the submissions of the petitioner. (Paras 1 to 25) (writ

petition allowed)

Appearances: - Mr. Y. R. Maralpalle, Advocate for petitioner. Mr. Alok Sharma,

Advocate for respondents.

Points to be noted: - All the administrative as well as quasi- judicial authorities

are expected to consider all the material evidence, documentary as well as the oral

evidence recorded as depositions on behalf of respective parties before passing any

order affecting the rights of th parties who are contesting for their respective rights

and liabilities.

18. 2018 LLR 125 Delhi High Court Hon’ble Mr. Valmiki J Mehta, J. FAO

No. 442/2017 and C.A.No 41026/2017, Dt/- 14-11-2017; M/s. Pritha

offsets Pvt Ltd. vs. Employees’ state insurance corporation & Anr.

Employees‟ State Insurance act, 1948 – sections, 75 and 82 – appellant‟s case was

that it had closed its operation from 31.03.2013 – employees had resigned –

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appellant did not deposit ESI contributions – ESI authority initiated proceedings

under sections 45-A and 45-AA of the act, directing the appellant to deposit the

determined amount – appellant challenged the order of the ESI authority before

the Employees Insurance court – insurance court dismissed the petition holding

that petitioner has failed to prove closure of the company which is registered under

the companies act – appellant challenged the order of the ESI court is appeal

learned single judge observed that appellant had failed to prove that it had closed

the company by informing labour department, factories inspector, no document

showing disposal of plant and machinery, closure of its bank accounts, informing

register of companies, list of employees who submitted resignation and/or were

retrenched placed on record – in absence of any documentary evidence, closure of

the company is not sustainable – impugned judgement is a reasoned one – hence,

appeal stands dismissed. (Paras 3 and 4)

Appellant: - Mr. Yog Verdhan, Advocate.

For Respondent: - None

Important points: -

Mere oral plea without support of documents is not sustainable in evidence.

Closure of the company, if not proved, on the basis of documents including

sending of letters to labour department, factories inspector, registrar of

companies , document showing disposal of plant and machinery, closure of

its bank accounts, list of employees who submitted resignation and/or were

retrenched, cannot be taken as genuine.

The employer is liable either to prove closure of its company on the basis of

documents or to pay ESI contributions towards its employees.

19. 2018 LLR 128 Bombay High Court Hon’ble Mr. S.C Gupte, J.

W.P.No. /1149/2015, dt. /- 7-9-2017; Pritam and others vs. Simplex Mills

Company Ltd. and others

Industrial Disputes Act, 1947 – section 25- o – notice of closure – issued and

approached state for permission of closure – order of state granting permission of

closure passed with reasons assigned – recognized union having support of

majority of workmen of 1st respondent has accepted the terms of settlement which

was in the interest of workmen closure prima facie was in compliance with

provisions of section 25-O. (Paras 7 & 8)

For Petitioners: Mr. A. S. Dhore, Advocate

For Respondent: Mr. R.B. Puranik and Mr. Sagar Katkar, Advocates.

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Important Points:

A settlement, as regards the closure can be arrived at provided such closure

has been affected in accordance with law.

A settlement could be arrived at between the employer and his workmen in

the case of an industrial dispute which even arises as regard the validity of

the closure.

The requirement of issuance of a notice in terms of section 25- O of the

Industrial Disputes act, 1947 and a decision thereon by the appropriate

government has to be effected by public policy.

The state Government, before granting or refusing such permission, was

required to comply with the principles of natural justice by giving an

opportunity of hearing both to the employer as well as the workmen and

thereafter pass an order assigning reasons, having regard to the several

factors, bearing on the subject, one of the important factors being the

interest of the workmen.

The provisions of section 25-O of the Industrial Disputes Act, 1947, being

imperative in character, would prevail over the right of the parties to arrive

at a settlement.

Such settlement must nevertheless conform to the statutory conditions

laying down a public policy.

Whenever the law makes a provision to protect the public interest, the

parties cannot contract out of such provision by a private treaty.

A settlement arrived at by the union having support of majority of the

workmen, signed specially by 228 out of 278 workmen of the employer,

cannot be lost sight of.

20. 2018 LLR 137 Calcutta High court Hon’ble Mr. Rakesh Tiwari, J.

Hon’ble Mr. Shivakant Prasad, J. Hon’ble Mr. Shivakant Prasad, J. C.A.

No. 1238/2017; 1230/2017; A.P.O.T.No. 125/2017; Champdany

Industries Ltd. vs. State of west Bengal and others

A. Industrial Disputes Act, 1947 – section 2(s) – workman – who is? – employee

was appointed as „Electrical supervisor‟ w.e.f. 29.10.1994, on probation for six

months which was further extended for three years twice – his services were

terminated on 21.11.1998 he raised an industrial dispute – industrial tribunal

held the termination valid and justified – writ petition valid and justified –

writ petition filed by the workman was allowed by setting aside the order of

the industrial tribunal as well as that of the disciplinary authority, awarding

reinstatement with consequential benefit – management has challenged the

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order of the writ court in writ appeal on the ground that workman was

supervisor and not a workman entitled to invoke provisions on the act – held,

it is not the designation but the nature of duties for deciding status of the

employee – workman was supervisor – he was not discharging any

administrative of supervisory nature of duties – hence, termination of his

services is illegal for not complying with the provisions of the act – hence, the

appeal is dismissed. (Paras 11 and 12)

B. Termination – when illegal – termination of a workman without making

compliance of provisions of Industrial Disputes Act, 1947, is illegal attracting

reinstatement with back-wages. (Paras no. 8 to 10 and 12)

For Appellant: Mr. R.K. Dubey, Advocate.

For Respondents: Mr. N.K. Das & Mr. M. Roy, Advocates.

Important Points:

It is not the designation but the nature of duties for deciding status of

the employee as to „workman‟ or „not a workman‟.

An employee designated as supervisor but working under section 2(s)

of the Industrial Disputes Act, 1947.

If an employee is a „workman‟ he is entitled to invoke provisions of the

Industrial Disputes Act, 1947 for Redressal of his grievances before the

Industrial Tribunal or Labour court.

Termination of services of a workman without making compliance of

provisions of Industrial Disputes Act, 1947 is illegal Disputes Act,

1947, is illegal, attracting reinstatement with back-wages.

21. 2018 LLR 159 Supreme court of India Hon’ble Mr. R.K. Agarwal, J.

Hon’ble Mr. Abhay Manohar Sapre, J. C.A. No. 20/2018 (Arising out of

S.L.P.(c) no. 18413/2015, Dt./- 5-1-2018; National Kamgar Union vs.

Kran Rader Pvt Ltd. & Ors.

A. Industrial Disputes Act, 1947 – section 25-K – chapter VB – applicability –

only when if the strength of workers is more than 100 at the relevant time –

Industrial court held 115 workers – while deciding writ petition, the high

court reversed the finding of industrial court, holding 99 workers on the

ground that Industrial court held that status 79 workers is not disputed –

status of 36 employees whether they are supervisors or workers was disputed

before the Industrial court – all 36 employees have been held to be workers

by the Industrial court – high court held that out of 36 workers, only 20

could be regarded as workers – thus total strength as per Industrial court

became 79+26= 115 and as per High Court 79+20=99 workers – in fact,

industrial court did not elaborately discuss the issue of status of 16 employees

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as recorded by High Court – Industrial Court should have examined the

status of each such disputed employee independently for holding whether he

could also be regarded as „worker‟ or not. It was , however, not done – even

the union did not adduce any cogent evidence as against the evidence of the

management – since the strength of workers was below 100, it was not

necessary for the management to comply with the provisions of section 25K

of the Act. (Paras 14 to 16 and 23 to 27)

B. Compensation – criterion to determined quantum of amount – most of the

workers had settled their claims by accepting compensation including

gratuity, closure compensation and 30 days wages for each completed year of

service as ex gratia – only 16 workers have not received any amount from

management – compensation paid to every workers in 1991 varies between

Rs. 1.00 lac to Rs. 2.00 lacs – accordingly a lumpsum compensation of Rs.

2.50 lacs is justified to each workers. (Paras 36 to 39)

C. Constitution of India – article 226/227 and 136 – scope of while hearing

appeal under Article 136, the finding of lower court, be that to concurrence or

reversal, is binding on the supreme court – only when such a finding is

wholly perverse to the extent that no average judicial person could ever

record such finding, would not be binding upon the superior court – status of

a „workman‟ involves certain legal tests, is necessarily a mixed question of

fact and law even the supreme court would not readily interfere with the

conclusion of the tribunal unless it is satisfied that the said conclusion is

manifestly or obviously erroneous – under Article 227, it is duty of the High

Court, while exercising its supervisory jurisdiction to see that subordinate

court has exercised its powers in accordance with law and did not commit

any illegality or perversity in searching to its conclusion. (Paras 18 to 21)

For Appellant: Mr. B. H. Maralpalle, Sr. Counsel and Mr. O.P. Gagger

Advocate.

For Respondent: Mr. D.J. Bhanage and Mr. Sanjay R. Hegde, Sr. Counsels.

Important Points:-

Provisions of section 25-K, Chapter VB of the Industrial Disputes Act,

1947 are applicable only when the strength of workers in the

establishment is more than 100 at the relevant time of closure of the unit.

For deciding the strength of total workers, the status of each and every

disputed employee has to be examined by way of recording elaborated

cogent evidence.

If the strength of worker is/was below 100 at the relevant time of closure

of the unit, it is/was not necessary for the management to comply with the

provisions of section 25K of the Industrial Disputes Act, 1947.

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It depends upon fact of each case as to what criterion is to be taken into

consideration to determined quantum of amount of compensation,

including length of service, last drawn wages, financial position of the

management, previous payment of compensation, if paid to any employee

etc.

While gearing appeal under article 136 of the constitution of India, the

finding of lower court, be that of concurrence or reversal, is binding on

the Supreme Court.

Only when a finding given by the lower court is wholly perverse to the

extent that no average judicial person could ever record such finding,

would not be binding upon the superior court

Status of an employee as to whether he is a „workman‟ or not involves not

only the facts but also certain legal tests, making it, necessarily a mixed

question of fact and law.

Even the Supreme Court would not readily interfere with the conclusion

of the tribunal in respect of a mixed question of fact and law unless it is

satisfied that the said conclusion is manifestly or obviously erroneous.

Under Article 227, it is duty of the High Court, while exercising its

supervisory jurisdiction to see that subordinate court has exercised its

powers in accordance with law and did not commit any illegality or

perversity in reaching to its conclusion

22. 2018 LLR 169 Kerala High Court Hon’ble Mr. A.K. Jayasankaran

Nambiar, J. w.p. (c) No. 11991/2015 (y), Dt/-9-8-2017; All Kerala

Plywood &Block Board Manufactures’ Association and others vs. State

of Kerala and Others

Minimum wages Act, 1948 – sections 3 and 4 – object of act provides for fixation of

minimum rates of wages to employees in scheduled employment and to review the

same periodically – for the purpose statue provides for comprehensive mechanism

using datas gathered by appropriate Government – court will not ordinarily

substitute its view for that of the appropriate government except in exceptional

situations regarding policy decisions such as illegality, irrationality, procedural,

impropriety or unreasonableness of the decision in the Wednesburysense – since

the wage board has considered all factors for fixing minimum wages, no interference

is called for –writ petition dismissed. (Paras 4, 6, 9 and 11)

For Petitioner: - Mr. Sumathy Dandapani, Sr. Advocate, M/s. Millu Dandapani &

Anna Thomas, Advocates.

For Respondents: - Mr. Mathew George Vadakkal, Government Pleader.

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Important Points:-

The Minimum Wages Act, 1948 provides for fixation of minimum rates of

wages to employee in scheduled employment and to review the same

periodically.

For the purpose of fixation of minimum rates of wages statute provides for

comprehensive mechanism using datas gathered by appropriate Government.

The Workman’s Compensation (Transfer of Money)

Amendment rules, 2017

Notification November 28, 2017

G.S.R. 1466 (E).- In exercise of the powers conferred under section 35 of the

Employee‟ Compensation Act, 1923, the Central Government hereby makes the

following rules further to amend the Workmen‟s Compensation (Transfer of Money)

rules, 1935, namely: -

1. (1) These rules may be called The Workmen‟s Compensation (Transfer of

Money) Amendment rules, 2017.

(2) They shall come into force on the date of their publication in the official

gazette.

2. In the Workmen‟s Compensation (Transfer of Money) rules, 1935

(hereinafter referred to as principal rules), in rule 1, for the word

“Workmen‟s”, the word “Employee‟s” shall be substituted;

3. Throughout the principal rules for the words “workman” and “workmen”,

whenever they occur, the words “employee” and “employees” shall

respectively be substituted, and such other consequential amendments as

the rules of grammar may require, shall also be made. (F. No. S-

36025/01/2011 – SS-I)

Manish Kumar Gupta, Jt. Secy.

The Workmen’s Compensation (Venue of Proceedings)

Amendment rules, 2017

Notification November 28, 2017

GOVT. CIRCULARS & NOTIFICATIONS

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G.S.R. 1467(E).- In exercise of the powers conferred under sub-section (1) of the

section 21 of the Employee‟s Compensation act, 1923, the Central Government

hereby makes the following rules further to amend the Workmen‟s Compensation

(Venue of Proceedings) rules, 1996, namely:-

1. (1) These rules may be called The Workmen‟s Compensation (Venue of

Proceedings) Amendment rules, 2017.

(2) They shall come into force on the date of their publication in the official

Gazette.

2. In the workmen‟s Compensation (Venue of Proceedings) rules, 11996

(hereinafter referred to as principal rules), in rule 1, for the word “ Workman”

the word “Employee‟s” shall be substituted;

3. Throughout the principal rules for the words “workman” and “workmen”,

whenever they occur, the words “employee” and “employees” shall

respectively be substituted, and such other consequential amendments as

the rules of grammar may require, shall also be made. (F. No. S-

36025/01/2011 – SS-I)

Manish Kumar Gupta, Jt. Secy.

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We as employers are aware about talent loss through attrition. Retention of talent in

any Industry or for that matter in any organisation is a vital challenge. The key to any

organisation are it people whether they are there as leaders, technicians, teammates

or in any other form/level of employment. So, retaining a valuable employee has

become a challenge and this in turn has created new aspect of HR as “Talent

Management”. The fact is that in the fierce

competition due to global market industry is

facing the crunch of right talent which is

really scarce – to replace a talented

employee may not be impossible, but it is

certainly difficult.

Another fact which has evolved during

surveys is that “Majority of employees do

not leave company, but they leave the

BOSSES”. So retaining a star performer;

BOSSES have to be balanced and how they

can retain, some guidelines:

I. HIRE RIGHT: -

First and foremost is “hire right person for the right place”. Focus more on job

skills than the personality. This may lead to long employment tenure. Do not

hire a person on your personal likings; select an executor – who really can

execute. Working with sub- ordinates /team mates boss has to be genuine,

unbiased and with high morals

II. GIVE TIME:

Provide time to new employee to integrate in your culture, to understand your

vision and align with your goals and objectives.

III. OFFER RECOGNITION & RESPONSIBILITY: -

Each and every one has set of skills and you have hired exactly for the same.

So RECOGNISE & gradually share RESONSIBILITIES – so that employee

feels sense of accomplishment and success.

IV. FLEXIBILITY IN WORKPLACE:-

Provide flexibility at workplace – rigid work rules – No – No.

RETENTION - A DIFFICULT TASK ??

ARTICLE

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V. COACHING & MENTORSHIP:-

Be a patient coach and mentor for your employees. Let employees build and

develop their skills – help them to reach their fullest. Provide proper feedback.

Provide congenial atmosphere

VI. BENEFIT PACKAGE: Last but not the least revaluating the benefit package

will be in your favour. Before some body poaches – your offer will be definitely

considered.

Retention Bonus, Non -Monetary Benefits and ESOP/ESOS etc. etc. can be

many options

VII. STRESS:-

Do not put pressures and if there is one; help employee to de-stress. Most

important is your support and trust. Not only have TRUST but express that.

Always extend your support.

VIII. REPRIMAND: -

In front of all; no personal attacks, no insults in public. Mistakes are part of

human being – call in the cabin and humbly point out what went wrong and

then guide appropriately. Do not create negativity.

Lastly just be sure your star performers are with you. That means low

performers should leave the organisation - then attrition is considered

healthy.

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

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Hiring has new tem “Talent Acquisition” – which if not handled with care –generally

ends up in lost productivity and business opportunity. In our country thousands and

thousands people seek jobs every day. It is really a daunting task to find a real

appropriate person and avoid bad hire. Many large and multinational companies

have their own portals – where resumes are uploaded

I. ACCURATE JOB DESCRIPTION:-

This is the first step. An effective and meaningful job description with skill set

and relevant experience is the basic fundamental need of choosing

appropriate employee.

II. DRAFTING AND POSTING

OF AN AD:-

Proper drafting of ad will limit the

unqualified applicants to respond for

specific job. Post the ad in leading

publications and local newspapers.

Though social media like internet and

company‟s own portal are now

common but newspapers still is the

better answers.

III. REVIEWING THE RESUMES: -

Reviewing the resumes received is one of the critical tasks of hiring. So stick to

your own requirements and identify the best candidates and short list. Also in

India many people do not write their own resumes, this is a new business

“Resume Writing.” CV demands proper checking. Shortlisted candidates can

be put in to objective screening with different assessment tools – which will

focus on your requirements

IV. DEVELOP PHONE SEARCHING QUESTIONS: -

Prepare and develop suitable questions – you should ask telephonically. This

will help you to eliminate other few which may not fit in your requirements.

V. SCHEDULE AND CONDUCT FIRST INTERVIEW:-

You may be accompanied by your senior/junior colleagues for interview – so

just decide who is going to ask what – so that all aspects are covered viz.

Qualification

Relevant experience & Technical Knowledge

Assessment of skills/talents and attributes

Any other aspect

MAKE HIRING: A SUCCESS

ARTICLE

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VI. RUN A BACK GROUND CHECK:-

If you feel the candidate is appropriate, check his references, his background

not only at workplace but have an idea about family responsibilities. Social

checks are also important

VII. 2ND PERSONAL INTERVIEW:-

This is the most important one: make sure you are choosing the right one.

Make the offer of the job and compensation package. (Which should be as per

qualification, experience and at par with other industries of your sector and

region?)

Finalise compensation package.

VIII. PROVIDE APPROPRIATE TIME:

Candidate to join provide reasonable time. Notice periods are not in the hands

of applicants.

Right candidates are definitely out there. HR professionals should look for

career oriented persons, look for basic human strengths, can start with inter/

probation and let the person get settled.

Simultaneously company / HR professional should be genuine – in the

process no negativity should arise. Some companies hire a person – and just

sack those unceremoniously giving vague reasons – nobody‟s life should be

threatened – no career should spoil. Even if you feel the person is not fit for

the job or for organisation – give a chance to search new job.

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