Industrial Disputes Act Is Social Welfare Legislation: Gujarat High Court Directs Labour Court To Re-Examine Order Refusing 'Interest' To Workers

The Petitioners had submitted that there is no discussion on the issue as to why the interest was not awarded to them.

Justice Biren Vaishnav had taken up both Special Civil Applications for the final hearing and relied extensively on Manager, Naaz Cinema Vs. Vasantben Rameshbhai Ghumadiya w/d of Rameshbhai Raijibhai Ghumadiya [2011(2) G.L.H.523] adjudicated by the Division Bench of the Gujarat High Court.

The Single Judge Bench observed that while addressing issues such as awarding interest to the workers, the Bench must keep in mind that the Industrial Disputes Act and other similar legislative instruments are social welfare legislation which should be interpreted with the goals set out in the Preamble of the Constitution.Reference must be made to Part IV and Arts 38, 39(a), 43, 43 A which mandate that the State should secure a just and equitable social order for promoting equality and equitable distribution of resources amongst all communities.

In the aforesaid case, the Bench had held that under the Constitution, the State is expressly directed to endeavour to secure to all workers (whether agricultural, industrial or otherwise) not only bare physical subsistence but a living wage and conditions of work ensuring a decent standard of life and full enjoyment of leisure. This Directive Principle of State Policy being conducive to the general interest of the nation as a whole, merely lays down the foundation for appropriate social structure in which the labour will find its place of dignity, legitimately due to it in lieu of its contribution to the progress of national economic prosperity.

Keeping in view, the decision of the Gujarat High Court and the precedents set by the Apex Court in advancing the goal of social welfare for workers, the bench allowed the petitions partly.

It directed that the Labour Court re-examine the issue while considering the decision of the Madras High Court in The Management of Nathan's Press, Madras v. K. Krishnan 1988 Lab. I.C., 701. The High Court also directed that the order should be passed by the Labour Court within six weeks.

Case Title: SAILESH SHANTILAL LUNAVIA v/s CARBORANDUM UNIVERSAL LIMITED

Case No.: C/SCA/10950/2019

Citation: 2022 LiveLaw (Guj) 285

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