C/SCA/3201/2019 ORDER DATED: 13/03/2023
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 3201 of 2019
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UMAR FAROOQ GULMAMAD
Versus
NAVYUG CONFESSIONARY COMPANY & 2 other(s)
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Appearance:
JEET Y RAJYAGURU(8039) for the Petitioner(s) No. 1
MR HS MUNSHAW(495) for the Respondent(s) No. 3
MR.KRUTARTH K PANDYA(7092) for the Respondent(s) No. 2
NOTICE SERVED for the Respondent(s) No. 1
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CORAM:HONOURABLE MR. JUSTICE SANDEEP N. BHATT
Date : 13/03/2023
ORAL ORDER
1. The present petition is filed by the petitioner with a prayer to direct respondent No.3 - District Development Officer, Jamnagar to initiate action against respondent No.2 and recover the amount of the dues as per recovery certificate issued by the Labour Court.
2. Heard learned advocate Mr.Jeet Y. Rajyaguru for the petitioner, Mr.Krutarth K. Pandya, learned advocate for respondent No.2 and Mr.H.S. Munshaw, learned advocate for respondent No.3 - District Panchayat, Jamnagar. Though served, none appears for respondent No.1.
3. The short facts of the petitioner are that though Page 1 of 5 Downloaded on : Mon Mar 13 21:07:53 IST 2023 C/SCA/3201/2019 ORDER DATED: 13/03/2023 the Labour Court, Jamnagar has passed the award in Reference (LCJ) No.75 of 1998 against the employer i.e. Navyug Confessionary Company - respondent No.1 herein by holding that the action of the employer terminating the petitioner workman is illegal and thereby granted reinstatement. Since the said order is not complied with, the petitioner workman has filed Recovery Application No.41 of 2008 which was allowed vide order dated 17.11.2009, by which, the Labour Court has issued recovery certificate on 08.10.2010 for the amount of Rs.1,73,120/- against the company and also directed the Collector, Jamnagar to recover the amount by following revenue procedure in accordance with law.
4. Thereafter, the District Collector, Jamnagar has sent the same to the District Development Officer, Jamnagar, who, thereafter, sent the same to the Taluka Development Officer and in turn, to the Talati of Vasai Village Panchayat, who has prepared the report on 28.03.2011 and has submitted that Navyug Confessionary Company - respondent No.1 herein is not found on the given address, but one Swan Sweet Pvt. Ltd., is there.
5. It also transpires that the statement of one Mr.Nilesh Vrajlal Shah is recorded by the authority Page 2 of 5 Downloaded on : Mon Mar 13 21:07:53 IST 2023 C/SCA/3201/2019 ORDER DATED: 13/03/2023 concerned, wherein he has stated that Navyug Confessionary Company was a partnership firm and is closed down and at present, he is working as one of the Directors of the new company - Swan Sweet Pvt. Ltd.
6. In this background, the present petition is filed by the petitioner urging this Court to direct respondent No.3 to initiate proper action to recover the amount awarded by the Labour Court.
7. Affidavit in reply is filed by the District Development Officer, Jamnagar dated 29.03.2019 and has contended that as per the revenue record of village Vasai, Navyug Confessionary Company is not having any property. It was further contended that even the statement of one Mr.Nilesh Vrajlal Shah, one of the Directors of the new company is also recorded on 05.03.2019 by the Extension Officer of the Taluka Panchayat, Jamnagar as well as by Talati-cum-Mantri, Vasai Village Panchayat, wherein it is stated that Navyug Confessionary Company is closed down and at present, Swan Sweet Pvt. Ltd., is situated at the site as there is no recovery certificate against him, he would not make any payment and he would act in accordance with the orders of this Court.
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C/SCA/3201/2019 ORDER DATED: 13/03/2023
8. Said Mr.Nilesh Vrajlal Shah himself is appeared in the matter through the learned advocate Mr.Krutarth K. Pandya and has filed affidavit in reply by contending that he was a partner of the earlier company i.e. Navyug Confessionary Company at the relevant point of time, which was closed down in the year 1998 and thereafter, he has joined the new company - Swan Sweet Pvt. Ltd., as one of the Directors in the year 2006. He has further contended that the impugned judgment and award passed by the Labour Court was against the Navyug Confessionary Company which is closed down and therefore, he cannot be held liable in personal capacity and therefore, he has said that this petition may be dismissed.
9. Considering the provisions of the Partnership Act, it can fairly be inferred that respondent No.2, who was a Partner of the erstwhile company - Navyug Confessionary Company, at the relevant point of time, can held liable for the satisfaction of the dues of the petitioner workman and in fact, when the matter was posted for hearing on earlier occasion, it was mentioned at the bar by the respective learned advocates that the talks for settlement were going on and there is a dispute about the figure of the amount of settlement as the petitioner was insisting for recovery of entire amount i.e. 1,73,120/- and respondent No.2 herein is Page 4 of 5 Downloaded on : Mon Mar 13 21:07:53 IST 2023 C/SCA/3201/2019 ORDER DATED: 13/03/2023 ready to pay Rs.1 lakh.
10. Considering this aspect and also considering the fact that respondent No.2 is now joined as one of the Directors of the Swan Sweet Pvt. Ltd., as well as considering the fact that in the proceedings before the Labour Court - Reference proceedings as well as Recovery proceedings, the learned advocate for respondent No.2 as well as erstwhile company - Navyug Confessionary Company had appeared and thereafter had not chose to contest the proceedings and also considering this chain of events and considering the conduct of respondent No.2, it is directed the District Development Officer, Jamnagar - respondent No.3 herein to expedite the recovery proceedings for recovering the amount from respondent No.2 - Mr.Nilesh Vrajlal Shah, as expeditiously as possible but preferably within a period of eight weeks from today, in accordance with law / procedure.
11. In view of above, this petition is allowed to the aforesaid extent.
Direct service is permitted.
(SANDEEP N. BHATT,J) M.H. DAVE Page 5 of 5 Downloaded on : Mon Mar 13 21:07:53 IST 2023