Gujarat High Court
General Enginering Majddor Union vs Naylon Net Plant on 30 July, 2025
Author: Sunita Agarwal
Bench: Sunita Agarwal
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 11884 of 2007
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GENERAL ENGINERING MAJDDOR UNION
Versus
NAYLON NET PLANT & ANR.
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Appearance:
MR P C CHAUDHARI(5770) for the Petitioner(s) No. 1
MR. G. M. JOSHI, SENIOR ADVOCATE with IG JOSHI(8726) for the
Respondent(s) No. 2
MR BM JOSHI(368) for the Respondent(s) No. 1
MR GM JOSHI(370) for the Respondent(s) No. 1
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CORAM:HONOURABLE THE CHIEF JUSTICE MRS. JUSTICE
SUNITA AGARWAL
and
HONOURABLE MR.JUSTICE D.N.RAY
Date : 30/07/2025
ORAL ORDER
(PER : HONOURABLE THE CHIEF JUSTICE MRS. JUSTICE SUNITA
AGARWAL)
1. Having heard Mr. P. C. Chaudhari, learned advocate for
the petitioner and Mr. G. M. Joshi, learned Senior
Advocate for the respondents and perused the record, we
may note that the present petition invoking the
supervisory jurisdiction of this Court under Article 227 of
the Constitution of India has been filed challenging the
Labour Court award dated 31.12.2005 in Reference
(LCAD)No. 26 of 1995, as also the order dated 12.07.2006
in Review Application No. 4 of 2006 passed by the Labour
Court, Ahmedabad. The award made on reference sent at
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the instance of the petitioner - Union categorically
records that the dispute raised by the workmen as
referred in the Reference dated 19.05.1995 in Reference
Case No. 18639/IDR/AJ/5395 was same as has been
adjudicated between the workmen and the employer vide
award dated 18.05.1982 in Reference (IT) No. 322 of
1977. The demand raised by way of a fresh Reference
(LCAD) No. 26 of 1995 was, thus, not maintainable.
2. The Review Application has also been rejected with the
same finding that there was no error apparent on the
record, on the ground that the Labour Court has no power
of review.
3. It was sought to be argued by learned counsel for the
petitioner that the demand raised by the workmen as
referred in Reference (LCAD) No. 26 of 1995 is
independent of any adjudication made by the Labour
Court under the award dated 18.05.1982 in Reference (IT)
No. 322 of 1977. The submission is that the Labour Court,
has, thus, committed an error of law in refusing to
adjudicate the reference on merits of the demand raised
by the workmen. This submission is based on the demand
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raised by the workmen which has part of the claim
petition before the Labour Court (finds place at page no.
25 of the paper-book). A perusal of the first demand
amongst many other, finds placed in the schedule to the
claim petition filed by the petitioner - Union on behalf of
the workmen indicates that it was sought that the
workmen of Naylon Net Plant be put in different
categories of employees and be given the same service
benefits including the pay scale as that of the workmen of
Gujarat Fisheries Central Co-operative Association
Limited, which is the principal employer, in so far as the
Nylon Net Plant workers are concerned.
4. It may be pertinent to note that the dispute raised in the
Reference Case No. 26 of 1995 was about the grant of all
service benefits to the employees of Nylon Net Plants
represented by the petitioner -Union, treating them at par
with that of the employees of the respondent -
Association. This very issue was subject matter of the
reference in Reference (IT) No. 322 of 1977 which was
adjudicated vide award dated 18.05.1982. There is no
dispute about the fact that the award dated 18.05.1982
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had attained its finality as it was not challenged by any of
the parties to the said reference. The Reference (IT) No.
322 of 1977 was made at the instance of the
Union/Association of employees/workmen of Nylon Net
Plant, which was a unit of Gujarat Fisheries Central
Cooperative Association Limited, Ahmedabad namely
respondent herein. The findings in the award dated
18.05.1982 would, thus, be relevant to be noted
hereinunder:-
"So far as employees of Association with whom the
workman of Nylon net plant claim parity are to found
in ex. 34 there are about 27 categories of such
employee of the Association and mostly they are of
the administrative category like General Manager to
Manager, Secretary, P.A., Accountant, Clerks,
Assistances and some categories are non-
administrative type but connected with management
purposes like drivers, gardeners, sweepers, khalasis,
tundel and mechanics and operators for maintenance
of boats of the Association etc. Shri Narikrishna Shah
has also not pressed about the workers working in
the Nylon net plant as operatives or helpers to be
considered at par with these categories indicated in
schedule ex. 34. So we will deal with the demands of
Nylon net plant independently for fixation of wages.
The demand is for wage-scale and we can well take
advantage of the pay-scales prevalent in the
Association for their employees for consideration of
the wage-scales demands by the workers of the
Nylon net plant. It is, however, to be stated here that
the demand in this reference for all the three
categories is not for the pay-scale of any of the
categories indicated in ex. 34. Besides these pay-
scales, the employees of the Association
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got dearness as per award copy whereof is at ex.
38/1 which is not in dispute. They also got house rent
allowance, high cost allowance compensatory legal
allowance etc And the workers of the Nylon net plant
have demanded all these benefits in this
reference.Before we deal with the demands made in
this reference we may consider the financial capacity
of the Association. I have already enumerated the
various activities of the Association and the
Association has produced the balance-sheets from
the year 1972-73 to 1976-77 and 1978-81 which
shows that the profits made by the Association. It has
been shown that the Association's profits are
gradually going down or are on decline for the last
three years. It is also sought to be shown that the
profits made by the Nylon net plant independently is
also on the decline and if we refer to the deposition
of Shri Chhaya, the General Manager ex. 27 he has
also so stated and according to him he was appointed
to this post as the financial portion of the Association
was dealt with a views to put matters in order. At
this stage it is necessary here to refer to the written
statement ex. 9 in which it is stated that the
Association is an apex body of the co-operative
societies of the fishermen of Gujarat and the
Government as a part of its welfare activities is
sponsoring and helping the formation of co-
operatives of various backward communities and
accordingly has formed co-operative societies of
fishermen and the Association with a view to help the
members of these activities to obtain their
implements at reasonable rates, the Association has
undertaken the various activities corrected with the
fisheries enumerated therein and it supplies the
materials and implements etc. To the members of the
fisheries societies at reasonable rates and present
exploitation and the same are supplied at subsidized
rates. It is also stated that these activities are not run
with a profit motive and one will have to consider the
balance-sheet for determining the loss and profits
bearing in mind that the activities of the Association
are not strictly commercial as it ought to be if it was
industry in private sector. The investment in the
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activities of the Association is of Government to an
extent of about 95. Shri Buch has urged that in the
balance-sheet no provision is made for interest for
the Government loans and the loans have remained
unpaid. Shri Harikrishna Shah on the other hand
urges that the Government in its welfare activities
have invested that amount and the Association could
have from its profits paid up the loans very easily
from time to time and the Government has also not
made demand from the Association also cannot be
overlooked. In any case, the association has been
making profits in the earlier years of 1972-73 and
1973-74. It had made huge profits and in some years
there was a steep decline in the profits but
considering the nature of activities and the purpose
of the activities of the Association and the profits it is
making from the year to year it cannot be said that
the financial condition of the association Is such that
If the workmen of the Nylon net plant be given
minimum wages or near about it has at present they
do not even get bare minimum wage the burden that
the Association will have to bear will be such
disastrous to its finances or that burden may bring
about such position crush its activities. Shri
Harikrishna Shah has shown with reference to the
profit made by the Nylon net plant from the balance-
sheet to show that in the year 1972-73 its not profit
was Rs. 2,63,230, in 1973-74 Rs. 4,98,212, in 1974-
75 Rs. 3,62,599, in 1975-76 Rs. 6,43,037 in 1976-77
Rs. 8,53,132 and he argued that in spite of the Nylon
net plant having made such profit at 3.8 less and
odd, the workmen were kept below subsistence wage
level and the demand for rise in wages was not
acceded to. He urges that the Nylon net plant is the
earning member of the Association and its workers
are not given benefits while the no-earning members
are given better benefits then the worker of Nylon
net plant and when the Association can afford to pay
to the employees of the Association better wages and
better benefits there is no jurisdiction, the balance-
sheet also reveal that not profits of the Association
were fairly good up to 1977 but the profits went
down years thereafter. It is difficult to know the
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reasons for declining the profits. But all the same if
we consider the financial position and the profits
gained during the years of its activities it cannot be
said that the financial condition of the Association is
such what it will be not possible for it to bear the
burden if the workers of the Nylon net plant be given
such wages as be slightly more than bare minimum
and near about minimum wage, considering the
present cost of living a also the standard of living. It
is also to be noted that there is no such industry as
Nylon net plant manufacturing fishing nets of Nylon
net plant in the State of Gujarat excepting the one of
the Association. The evidence of Shri Shankaran
Govinda ex. 20 reveals that there are eight Nylon net
plant of the Association in the only one. We do not
have any data on record of this case about what are
the benefits of wage-scales of workers of a Nylon net
plant manufacturing factories in other parts of India.
Thus, manufacturing process cannot be compared
with mosquito netting the textile industry and the
parties have also not been able to procure the date
regarding pay-scales etc. Of the workmen employed
in Nylon net plant manufacturing factories in other
regions. So we will have to consider the case of the
Nylon net plant on the basis of whatever evidence is
there on record.
10. The Association has produced the list of workers
working in the Nylon net plant as are at Ex. 31
attached with Ex. 5 other list is at Ex. 10/1 from
which it appears that seven persons get wages at
Rs. 11/- per day. 19 persons at Rs. 8/- per day and
13 at Rs. 9.25 per day, in all 34 persons. It also has
given dates of joining of these employees which
indicates that the wages differ according to
seniority. However, in the case of Sr. No. 30 that
employee has joined on 5-1-1976 he has been given
Rs. 11/- per day though others of the same joining
date get Rs. 8/- only. The evidence also reveals that
Nylon net plant has 14 machines and these workers
operate on different machines. So most of them are
operatives. The employees of the Association on the
other hand have wage-scales as are found at Ex. 34
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and they get the dearness allowance and other
allowances as stated In Ex. 38/1.
Employees D.A.
having basic
salary
.
Rs. 150-250 35% of the basic salary
Rs. 250-350 50% of the basic salary
Rs. 350-500 45% of the basic salary
Rs. 500-750 40% of the basic salary
Rs. 750-900 35% of the basic salary
Above Rs. 900 30% of the basic salary
The demand of the workers of the Nylon net plant
is for wage-scales as in the schedule annexed to the
order of Reference and It has demanded that these
who get Rs. 8/- per day should be put in the pay-
grade of Rs. 150-10-200-20-300. There is no much
pay-scale in any of the category of the employees of
the Association as indicated in Ex. 34. So the wage-
scale demanded are nor similar to these of the
employees of the Association. The pay-scale of
Khalasi at item No.21 of Ex. 34 is No. 150-225 and
those of Watchmen, Helper, Hamal, Gardener,
Sweeper, Gutter it is Rs. 9.25 Ps. So we will give
these workman who get Rs. 8/- per day the pay-scale
of Rs. 150-225. Then for these who get Rs. 9.25 Ps.
per day the demand is for the pay-grade of Rs. 200-
350. These pay-grades are there in Ex. 34 of
Mechanic Assistances, Mechanics and Operation but
his yearly increments are different and there is also
efficiency bar. So I propose to take the pay-scale on
the line of the employees of the Association for these
workers and remove the stage of efficiency bar for
increment looking to the nature of work these
operatives of the Nylon net plant have to do. Then for
these who get Rs. 11/- per day the demand is of the
pay-grade of Rs. 225-400. There are no such pay-
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scales in Ex. 34 but there is a pay-scale of Rs. 200-
400 as for item No.22 Drivers of the Boats. There also
there are two efficiency bars but I will remove those
bars and take that pay-scale as pay-scales
commencing from Rs. 220-10-250-15-310-20-350-25-
400 and the workers of the Nylon net plant should
got dearness allowance at the rate indicated here
above as in Ex.38/1. In views of the above, I fix the
pay-scale for the workers who at present get Rs. 8/-
per day as under:-
Rs. 150-5-185-10-225
These employees should be fixed in the above said
pay-scale and from these workers who he in the
employment of the Nylon net plant from before
January, 1976, be given in two increments in the
above said pay-scale. Similarly, the workers of the
Nylon net plant who at present got Rs. 9.25 be put in
the pay-scale of Rs. 200-10-250-15-310-20-350 and
those workers who be in the employment of the Nylon
net plant from prior to January, 1973 be given one
increment. The workers of Nylon net plant who at
present get Rs. 11/- be put in the pay-scale of Rs.
220-10-250-15-310-20-350-25-400 and those of this
category who are in the employement of Nylon net
plant from prior to January, 1965 be given one
increment. So the pay-scale No. 1 will be Rs. 150-225,
pay-scale No. 2 will be Rs. 200-350 and pay-scale No.
3 will Rs. 220-400.
11. Since these workers of the Nylon net plant have
to perform almost similar work and they get different
wages because of the length of service and not that
are fixing the pay-scales Nos. 1 and 2 reaches the
maximum of his pay-scale, he should be pat in the
next higher pay-scale and should not be made to
stagger at the maximum of the pay-scale.
12. All these workers of the Nylon net plant be given
also dearness allowances at the rate as under:-
Employees having D.A.
basic salary
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Rs. 150-250 55% of the basic salary
Rs. 250-350 50% of the basic salary
Rs. 350-500 45% of the basic salary
Rs. 500-750 40% of the basic salary
Rs. 750-900 35% of the basic salary
Above Rs. 900 30% of the basic salary
The question than is from what take these pay-i-
scales should be operative. Shri Harikrishna Shah has
urges that operations should be given from the date
of reference i.e. from September, 1977. While Shri
Buch, the learned advocate for the Association has
urged that no retrospective effect should be given
looking to the financial condition of the Association as
that will put a heavy burden on the finances of the
Association. I think looking to the fact that so far the
wages paid to the workers of Nylon net plans were
very low which may be said to be below bare
manimum looking to the increase in cost of living, I
think the effect of the pay-scale should be given from
1st January, 1980. So these workmen be put in their
respective pay-scale from 1-1-1980 and they should
be paid the arrears within a period of six months from
the date of publication of the award.
13. Now with regard to the other benefits demanded
by the workers of the Nylon Net Plant as the
employees of the Association get viz. the house rent
allowance, high cost allowance, compensatory local
allowance and leave etc., I think the workers working
in the factory as operatives cannot be equated for
these demands with the administrative staff or those
connected with administrative work. From Ex.5 it
appears that the Nylon Net Plant is covered under
the Ε.S.Ι.Act and the workmen get the benefit of
provident fund, they are given also casual leave for 8
days, the earned leave at the rate of one day for
twenty days of work and they also get seven festival
holidays. They also get bonus and the benefit of
gratuity etc. as disclosed in Ex.11 which they will
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continue to get. In view of the above, I think the
demand of the workers of Nylon Net Plant for such
allowances as the employees of the Association
cannot be accepted and so refused."
A perusal of the operative portion of the award
indicates that the benefit of pay scale with Dearness
allowance has been awarded at par with the employees
of the respondent Association, to the workmen of Nylon
Net Plant with effect from 01.01.1980. The specific
conclusion drawn by the Labour Court in the award
dated 18.05.1982 is that the workmen of the Nylon Net
Plant be put in their respective pay scale from
01.01.1980 as per the categorization made of the
workmen in the category of operatives or helpers, and
that they should be paid the arrears within a period of
six months from the date of publication of the award. It
was further noted in the award that the workmen of
Nylon Net Plant covered under the E.S.I. Act, were
getting benefits of the provident fund, causal leave of
five days, earned leave, festival holidays, bonus and
benefit of gratuity which they will continue to get. The
specific demand of the workers of the Nylon Net Plant
for equal allowances as the employees of the
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Association, however, has not been accepted and thus,
refused.
5. This very demand was raised in the statement of the claim
and the Reference (LCAD) No. 26 of 1995, which has been
noted from Page No. '25' of the schedule to the claim
petition filed by the Union before the Labour Court.
6. Taking note of the above, we do not find any error in the
judgment and order dated 31.12.2005 of disposal of the
Reference (LCAD) No. 26 of 1995 passed by the Labour
Court, Ahmedabad, pertaining to the subject matter of
challenge therein. No error can be found in the order of
dismissal of the review application.
7. However, before parting with this order, pertinent is to
note that on account of closure of the plant, namely Nylon
Net Plant, certain disputes were raised subsequently by
the then employees/workmen in the year 2009, which was
referred by the Deputy Labour Commissioner, Ahmedabad
vide order dated 17.06.2009, which has led to the passing
of the judgment and order dated 04.02.2010 in a Special
Civil Application No. 1043 of 2010, filed by the Association
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namely Gujarat Fisheries Central Cooperative Association
Limited. We may further note that another set of
employees/workmen working in the Nylon Net Plant at the
relevant point of time, had raised an industrial dispute
which was referred by the Reference Case No. 127 of
2011, wherein the benefit of absorption was accorded to
such employees who were in service of the Association on
the date of reference, i.e. 08.07.2011 with the direction
that they shall be absorbed in Class - IV category from
their respective dates of joining by considering their
services as continuous.
8. Pursuant to the reference order dated 17.06.2009, the
claim of 14 workers working in Nylon Net Plant appointed
in different categories was adjudicated in the Reference
(LCA) No. 24 of 2009 by the award dated 18.03.2024.
9. All these disputes which arose with the reference order
dated 17.06.2009 and thereafter, in our considered
opinion, have been adjudicated in the facts and
circumstances arising at the relevant point of time, as a
result of termination/retrenchment or discontinuance of
the then working employees / workmen on account of the
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closure of Nylon Net Plant. We, thus, find it fit and proper
to clarify that the dismissal of the present petition or the
Reference (LCAD) No. 26 of 1995 by the impugned award
dated 31.12.2005 passed by the Labour Court, will have
no bearing on the subsequent adjudications made between
the workmen and the employer. The respondent
Association will not be able to take any benefit out of the
dismissal of the present petition in any of the
adjudications made pursuant to the subsequent references
made in the year 2009 and afterwards. Subject to the
above, the present petition stands dismissed being devoid
of merits.
(SUNITA AGARWAL, CJ )
(D.N.RAY,J)
VARSHA DESAI
