Govt Can't Pass Interim Order Directing Payment Of Wages To Workmen Without Hearing Management, Workers Union: Karnataka HC

The Karnataka High Court has reiterated that the government cannot pass an interim order directing payment of wages in favour of workmen of a company without hearing the company management and the workers union.

Justice Anant Ramanath Hegde held thus while allowing a petition filed by the Management of Mahindra Aerostructures Private Limited, challenging a June 11, 2024 order passed by Principal Secretary/Deputy Special Officer, Child Labour Cell To Department Of Labour, directing payment of Rs.6,000 per month as interim wages in favour of the workman of the petitioner/Management. 

The court set aside the order and said “The application filed by the Union pending before the Labour Court/Industrial Tribunal seeking interim measure shall be considered by the Labour Court/Industrial Tribunal.”

The petitioners argued that such an order is impermissible as the order impugned is in violation of the law laid down by the Division Bench of this Court in the case of State of Karnataka vs BPL Group of Companies, Karmikara Sangha and others (2003). 

Further, the Government was required to form an objective opinion as to whether the industrial dispute exists or not and thereafter, it ought to have considered whether an emergent situation has arisen or not to pass an interim order pending dispute before the Labour Court/Industrial Tribunal. Moreover, it ought to have issued notice to the petitioner/Management as well as 4th respondent - Union before passing such an order.

The government advocate submitted that the order impugned was passed on June 11, 2024 and it will be effective only for six months and the same has spent its life. Thus, the order has spent its life and the writ petition has become infructuous.

Findings

The court referred to a judgment passed by the high court in State of Karnataka vs BPL Group of Companies, Karmikara Sangha and others (2003) wherein it was held that once the dispute is referred to the Labour Court or the Tribunal, the Government will have no power to pass interim order under Section 10-B of Industrial Disputes Act

As per the ratio of the judgment, the court noted, if the Government chooses to exercise power under Section 10-B before referring the matter to the Labour Court or the Industrial Tribunal or simultaneously chooses to pass interim orders and refer the dispute to the Industrial Tribunal, the Government has to hear the Union as well as the Management before passing the interim order.

While exercising power under Section 10-B, the Government has to arrive at a conclusion that the industrial dispute exists or industrial dispute is apprehended, it noted.

The high court thereafter said, “Admittedly, in this case while passing the impugned order, the Government has not heard the Management. Thus, the principles of natural justice are violated and the interim order which has got the civil consequence could not have been passed without hearing the Management.”

It added “When the impugned interim order was passed the matter was already pending consideration before the Labour Court/Industrial Tribunal. Hence, the Government could not have passed the interim order at all.”

Before parting it noted that the law being settled in terms of BPL Group of Companies supra, the orders are passed without noticing the ratio laid down. Thus the Registry was directed to circulate the copy of this order to the Secretary, Department of Labour, Government of Karnataka.

Case Title: THE MANAGEMENT OF MAHINDRA AEROSTRUCTURES PRIVATE LIMITED AND THE PRINCIPAL SECRETARY/ DEPUTY SPECIAL OFFICER & Others

Appearance: Advocate Prashanth B K for Petitioner.

AGA M Rajkumar FOR R1 TO R3.

Advocate Avani Chokshi for R4.

Citation No: 2025 LiveLaw (Kar) 80

Case No: WRIT PETITION NO. 16742 OF 2024

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