2004 (2) TMI 735 - HC - Indian Laws

Industrial Court Orders Prompt Recovery of Dues for Workmen, Rejects Installment Plan

Satish Arjun Surve Versus State of Maharashtra and Ors.

The court directed the State Government, Collector Mumbai, and the Registrar, Industrial Court to expedite the recovery of amounts under Recovery ... - Issues Involved:1. Expeditious recovery of amounts under Recovery Certificates issued in favor of workmen.2. Application of Rule 17 of Maharashtra Realisation of Land Revenue Rules, 1967.3. Role and responsibilities of the authorities under Maharashtra Land Revenue Code.4. Specific cases involving the National Textile Corporation (NTC) and its obligations.5. Suggestions for improving the recovery process.Issue-wise Detailed Analysis:1. Expeditious Recovery of Amounts under Recovery Certificates:The petitioners sought a directive for the State Government, Collector Mumbai, and the Registrar, Industrial Court to take appropriate steps to recover amounts under Recovery Certificates issued in their favor. These certificates were issued under Section 33-C(1) of the Industrial Disputes Act, 1947, which mandates that the Collector proceed to recover the dues as arrears of land revenue. The court noted that despite a previous directive to expedite such recoveries within three months, the authorities had not taken adequate steps, leading to delays and compelling workmen to approach the court for relief.2. Application of Rule 17 of Maharashtra Realisation of Land Revenue Rules, 1967:The court examined Rule 17, which outlines the procedure for recovering sums as arrears of land revenue. The authorities had been insisting on compliance with this rule by requiring the Industrial Court to forward details of the defaulter's properties. The court found this practice unjustified, noting that the Industrial Court is neither a department nor an entity contemplated by Rule 17. The court directed that there is no obligation on the Industrial Court to forward any requisition, and the authorities should not call upon it to furnish details of the defaulter's assets.3. Role and Responsibilities of Authorities under Maharashtra Land Revenue Code:The court emphasized that the authorities under the Maharashtra Land Revenue Code must act diligently in recovering amounts under recovery certificates. The Collector should initiate proceedings for recovery in accordance with the Code, serving a written notice of demand on the defaulter and following up with further processes, including the sale of properties if necessary. The court stressed that the authorities must prioritize the recovery of workmen's dues as they would for land revenue and taxes.4. Specific Cases Involving National Textile Corporation (NTC) and Its Obligations:The court addressed specific cases involving the NTC, where significant sums were due to workmen. The NTC argued that it was challenging to manage sick mills and requested to pay the dues in installments. The court rejected this request, directing the NTC to clear the liabilities by paying monthly installments of Rs. 5 lakhs for Kohinoor Mills and Rs. 3 lakhs for other units until the entire liability is cleared. The court warned that failure to comply with these directions would result in the authorities being held responsible for breach of the court's orders.5. Suggestions for Improving the Recovery Process:The court suggested that instead of forwarding recovery certificates to the Collectorates, recoveries could be made by appointing a Recovery Officer in the concerned Industrial Court/Labour Court. This measure was left for the decision of the respondent No. 1. The court also emphasized that all Collectors in Maharashtra must promptly recover dues under valid recovery certificates and remove any obstacles hindering the recovery process.Conclusion:The petitions were disposed of with directives to ensure the expeditious recovery of dues under recovery certificates, emphasizing the authorities' responsibilities and rejecting the NTC's request for extended time to pay dues. The court's observations and directions were to apply to all workers and employees with valid recovery certificates, urging the authorities to act diligently and prioritize the recovery of workmen's dues.