Page 192 - DMGT306_MERCANTILE_LAWS_II

Unit 10: Industrial Disputes Act, 1947

Notes
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Caselet Twenty-first Century Printers Ltd., Mumbai v.
K.P. Abraham and Anr - Is an Officer Functioning
in the Management Capacity not a Workman?

wenty-first Century Printers Ltd., Mumbai, was engaged in the manufacture of
printed packing material. They had appointed K.P. Abraham as Purchase Officer. In
Tthe course of employment, the Company asked him to carry some article from
Mumbai to Ahmedabad, which he declined to carry. The incident took an ugly turn and
the Company decided to terminate K.P. Abraham’s services. The main issue raised in this
petition was whether K.P. Abraham was a workman as his function is managerial one
coming under the exception in Section 2 (s) (iii) of the Industrial Disputes Act, 1947, and as
such, he is not a workman.
Labour Court Judgment
However, the labour court held that K.P. Abraham was a workman under the Industrial
Disputes Act, 1947, and termination of his service was illegal. The Presiding Officer also
directed his reinstatement with continuity of service and payment of full back wages. The
Petitioner challenged the award of labour court in the Bombay High Court. Decision: The
Hon’ble High Court allowed the writ petition and quashed the order of labour court
which held K.P. Abraham a workman and set aside his termination. The High Court held
that the purchase office functioning in the managerial capacity will not be a workman
under the Industrial Disputes Act.

Source: http://www.phindia.com/srm/Court_Cases.pdf
Self Assessment

State whether the following statements are true or false:
1. The Industrial Disputes Act, 1957 recognizes certain rights to the employees employed by
the employer.

2. The employer may also be liable to compensate his customers with whom he may have
contracted for regular supply.
3. Arbitrator includes an umpire.

10.2 Objectives and Scope of Industrial Disputes Act

The Industrial Disputes Act is to secure industrial peace and harmony by providing machinery
and procedure for the investigation and settlement of industrial disputes by negotiations.
Various studies indicate that Indian labour laws are highly protective of labour, and labour
markets are relatively inflexible. These laws apply only to the organised sector. Consequently,
these laws have restricted labour mobility, have led to capital-intensive methods in the organised
sector and adversely affected the sector’s long-run demand for labour. Labour being a subject in
the concurrent list, State-level labour regulations are also an important determinant of industrial
performance. Evidence suggests that States, which have enacted more pro-worker regulations,
have lost out on industrial production in general.

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