In a recent judgment, the Karnataka High Court underscored the necessity of adhering to principles of natural justice by ruling that the government cannot unilaterally issue interim orders directing the payment of wages to workmen without affording an opportunity to be heard to both the company management and the workers' union.
The case arose when the Principal Secretary/Deputy Special Officer of the Child Labour Cell in the Department of Labour issued an order on June 11, 2024, mandating Mahindra Aerostructures Private Limited to pay an interim wage of ₹6,000 per month to its workmen. Challenging this directive, the company's management filed a petition asserting that the order was issued without prior notice or an opportunity for them to present their case, thereby violating established legal procedures.
Justice Anant Ramanath Hegde, presiding over the matter, referenced the Division Bench's decision in the case of State of Karnataka vs. BPL Group of Companies, Karmikara Sangha and others (2003), which clarified the scope of the government's powers under Section 10-B of the Industrial Disputes Act. According to this precedent, once an industrial dispute has been referred to a Labour Court or Industrial Tribunal, the government is divested of the authority to issue interim orders concerning the dispute. Furthermore, even if the government intends to exercise its powers under Section 10-B prior to such a referral, it is incumbent upon the authorities to conduct a fair hearing involving both the management and the workers' union before making any determinations.
In its defense, the government contended that the interim order was temporary, effective only for six months, and had already lapsed, rendering the petition moot. However, the court dismissed this argument, emphasizing that the core issue was the procedural impropriety of issuing the order without the requisite hearings, irrespective of its duration.
Consequently, the High Court set aside the government's interim order and directed that any applications for interim relief filed by the union should be adjudicated by the appropriate Labour Court or Industrial Tribunal. This decision reinforces the imperative that governmental bodies must observe due process and uphold the principles of natural justice, ensuring that all parties involved in industrial disputes are granted a fair opportunity to present their cases before any interim measures are enacted.
This ruling serves as a critical reminder of the checks and balances inherent in labor law, particularly concerning the government's role in industrial relations. By affirming that the government cannot bypass established legal procedures, the Karnataka High Court has reinforced the importance of impartial adjudication in maintaining equitable labor practices.
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