Agreenco Fibre Foam PVT. LTD. vs. The District Labour Officer - Kerala High Court, 09 February 2022

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL WEDNE AY, THE 9TH DAY OF FEBRUARY 2022 / 20TH MAGHA, 1943 WP(C) NO. 4196 OF 2022 PETITIONER: AGREENCO FIBRE FOAM PVT. LTD., P.B. NO.3622, BALLAPATAM, KANNUR-670010, REPRESENTED BY ITS MANAGING DIRECTOR. BY ADV V.KRISHNA MENON RESPONDENTS: 1 THE DISTRICT LABOUR OFFICER, CIVIL STATION, KANNUR-670002. 2 THE REGIONAL JOINT LABOUR COMMISSIONER, CIVIL STATION, KOZHIKODE-673020. 3 THE FIBRE FOAM EMPLOYEES UNION (INTUC), REPRESENTED BY ITS SECRETARY, THAJUDHEEN K.M., ARAFA MANZIL, BALIABATTAM POST, KANNUR-670010. 4 THE FIBRE FOAM WORKERS' UNION (CITU), REPRESENTED BY ITS SECRETARY, PRAMOD P., POOTHATTA HOUSE, KALARIVATHUKKAL, BALIAPATTAM POST, KANNUR-670010. 5 THE FIBRE FOAM THOZHILALI UNION (HMS), REPRESENTED BY ITS SECRETARY, SURESHAN K.V., SREESHYLAM, KAPLATHUVAYAL, ANCHAMPEEDIKA POST, KNNUR-670331. SRI.JUSTIN JACOB, SR.GOVERNMENT PLEADER THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09.02.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

W.P.(C) No.4196/22 2 JUDGMENT The petitioner is a Company registered under the provisions of the Indian Companies Act manufacturing rubberised coir products such as mattresses, etc. Going by the introduction of the GST, the Company had undergone great loss and all attempts to viably run the establishment failed owing to severe financial constraints. The workers through respondent Nos.3 to 5 i.e., employees union raised a claim before the District Labour Officer, Civil Station, Kannur - respondent No.1, claiming the amounts they were entitled to. After discussion, a settlement dated 24.8.2020 Ext.P2 was arrived at and as per the conditions stipulated therein, an amount of Rs.25,000/- would be paid to each employee as compensation and an amount of Rs.7,000/- would be paid to each of its employee before Onam. The sum of Rs.7,000/- was paid to each employee before Onam as per Ext.P3 receipt. As per Ext.P2, the petitioner was to pay off the arrears towards salary before 31.10.2020 which was effected on 17.10.2020 and the payment towards gratuity was to be paid before 31.3.2021. For discharging the aforementioned amount,

W.P.(C) No.4196/22 3 the petitioner intended to sell one of its properties, but due to certain unwanted circumstances sale could not materialse before 31.3.2021. The petitioner therefore submitted Ext.P4 petition dated 31.3.2021 before the Regional Joint Labour Commissioner- respondent No.2 highlighting the aforementioned aspects, copy of which was also submitted to respondents Nos.1, 3 to 5. Without passing any order on Ext.P4, the second respondent addressed a letter to the petitioner stating that a complaint had been received by him from the Unions regarding violation of the terms of Ext.P2 settlement. The matter was reported to the Station House Officer, Valapattanam as evident from Exts.P8 and P9. Being failed to achieve any success in Ext.P4 petition, the petitioner filed Writ Petition No.13828 of 2021 before this Court seeking police protection. This Court by interim order dated 12.7.2021, directed the Station House Officer to maintain law and order. In the meantime, the petitioner had duly complied with clauses 4 and 5 of Ext.P2 agreement effecting further payment of Rs.10,000/- out of the amount of Rs.25,000/- payable as compensation in terms Clause 3 of as evidenced from Ext.P11. W.P.(C) No.4196/22 4 But, the petitioner received a showcause notice dated 8.11.2021 initiating the prosecution proceedings which was duly replied by Ext.P13. 2. Learned counsel for the petitioner submits that the petitioner apprehends initiation of coercive measures pending his reply and would be left high and dry. It is in that background, this writ petition is filed.

Sri.Justin Jacob accepts notice on behalf of respondents 1 and 2. 4. Without expressing any opinion on the merits of the matter, considering the fact that part of the settlement was complied with as per the receipts and in the wake of covid pandemic, the petitioner could not ward off the liability which has been explained in Ext.P13 reply to the showcause notice of prosecution Ext.P12. But, no action has been taken and the apprehension of the petitioner, in my view, of taking coercive action at any point of time is justified. Accordingly, I dispose of the Writ Petition by issuing directions to respondent No.1 to take a call on the reply of the

W.P.(C) No.4196/22 5 petitioner. The petitioner shall also make sincere efforts to ward off the liability. Any decision taken should be in accordance with law after affording an opportunity of hearing the petitioner either through virtual or physical mode. Till such decision is taken, no coercive steps shall be initiated. AMIT RAWAL JUDGE csl

W.P.(C) No.4196/22 6 APPENDIX OF WP(C) 4196/2022 PETITIONER'S EXHIBITS Exhibit P1OF THE LETTER DATED 28/10/2019 ADDRESSED TO THE FIRST RESPONDENT. Exhibit P2OF THE SETTLEMENT DATED 24/08/2020 WITH ENGLISH TRANSLATION. Exhibit P3OF THE RECEIPT DATED 28/08/2020 ACKNOWLEDGING RECEIPT OF RS.7,000/- BY THE 35 EMPLOYEES WITH ENGLISH TRANSLATION. Exhibit P4OF THE PETITION DATED 31/03/2021. Exhibit P5OF THE LETTER DATED 17/04/2021 WITH ENGLISH TRANSLATION. Exhibit P6OF THE REPLY DATED 03/05/2021 WITH ENGLISH TRANSLATION. Exhibit P7OF THE LETTER DATED 18/06/2021. Exhibit P8OF THE PETITION DATED 28/06/2021 ADDRESSED TO THE DISTRICT POLICE CHIEF, KANNUR. Exhibit P9OF THE PETITION DATED 28/06/2021 ADDRESSED TO THE STATION HOUSE OFFICER, VALAPATTANAM. Exhibit P10OF THE INTERIM ORDER DATED 12/07/2021 IN WPC NO.13828/2021. Exhibit P11OF THE STATEMENT SHOWING THE DETAILS OF THE AMOUNTS ALREADY PAID AND THAT WHICH IS STILL PAYABLE BY THE PETITIONER TO EACH OF ITS EMPLOYEES.

W.P.(C) No.4196/22 7 Exhibit P12OF THE NOTICE WITH ENGLISH TRANSLATION DATED 08/11/2021. Exhibit P13OF THE REPLY DATED 24/11/2021 WITH ENGLISH TRANSLATION.