Neyveli Lignite Corporation Vs Nlc Podhu Contract — Writ and Judicial Review | Madras HC (2025)

Neyveli Lignite Corporation Vs Nlc Podhu Contract — Writ and Judicial Review | Madras HC (2025)

What the court decided

AI extract

Outcome

Writ petition allowed; impugned award dated 30.01.2015 in I.D.No.86 of 2012 set aside with no costs and connected M.P.No.1 of 2015 closed; workmen permitted to withdraw the deposited Rs.3,37,608/- with accrued interest; Corporation to pay/deposit a further Rs.3,15,000/- in full quit — originally by demand draft within four weeks, modified on 07.11.2025 to deposit to the credit of I.D.No.86 of 2012, with withdrawal permitted to surviving workmen and to legal representatives of deceased workmen upon proof of legal heirship.

Issue for consideration

Whether the award dated 30.01.2015 made in I.D.No.86 of 2012 by the second respondent/Labour Court (directing reinstatement of the contract workmen with 50% salary benefits) should be quashed by writ of certiorari. +1 more

Court's answer

On the joint submission that the matter stood settled, the Court permitted the workmen to withdraw the sum of Rs.3,37,608/- already deposited by the petitioner Corporation, together with accrued interest.

Ratio / Principle

The petitioner Corporation was directed to pay a further sum of Rs.3,15,000/- (Rupees Three Lakh Fifteen Thousand only) to the workmen in full quit by demand draft within four weeks from receipt of a copy of the order.

Key takeaways

The Writ Petition was allowed and the impugned award dated 30.01.2015 passed in I.D.No.86 of 2012 by the second respondent was set aside; no costs; connected miscellaneous petition closed.ratio¶49
Para 4 of the order dated 13.03.2025 stands modified: the petitioner is directed to deposit Rs.3,15,000/- in addition to the Rs.3,37,608/- already deposited in I.D.No.86 of 2012, within four weeks from receipt of a copy of the order.ratio¶74
Out of the said deposit, the respective surviving workmen are permitted to withdraw their share by filing appropriate application.

Detailed headnote1 paragraphs

Madras High Court (M. Dhandapani, J.), W.P.No.13515 of 2015 — Neyveli Lignite Corporation Ltd. v. NLC Podhu Contract Thozhilalar Sangam (CITU) and the Presiding Officer, Central Government Industrial Tribunal-cum-Labour Court: writ of certiorari under Article 226 challenging the award dated 30.01.2015 in I.D.No.86 of 2012, whereby the Labour Court had directed reinstatement of contract workman Arul Doss from 07.02.2011 with 50% of a permanent workman's salary until the date of the award, and payment of 50% of regular-workman salary until death qua workman Kanagavel who died during the pendency of the dispute. On the joint submission of counsel that the matter stood settled, the Court permitted the workmen to withdraw the Rs.3,37,608/- already deposited with accrued interest, directed payment of a further Rs.3,15,000/- in full quit, allowed the writ petition, set aside the impugned award, awarded no costs and closed the connected miscellaneous petition. By a subsequent order dated 07.11.2025 (on mention, as the workmen had died and legal heirs were untraceable), para 4 was modified: the Rs.3,15,000/- is to be deposited to the credit of I.D.No.86 of 2012 in addition to the amount already deposited, with withdrawal permitted to surviving workmen and to legal representatives of deceased workmen on proof of legal heirship before the tribunal; the Registry was directed to carry out the corrections and issue a fresh order copy.

W.P.No.13515 of 2015

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 13.03.2025

CORAM

THE HONOURABLE MR.JUSTICE M.DHANDAPANI

W.P.No.13515 of 2015 and M.P.No.1 of 2015

Neyveli Lignite Corporation Limited,

Rep.by its Director/HR, Corporate Office, Neyveli-607 801. ... Petitioner

Vs.

1.NLC Podhu Contract Thozhilalar Sangam (CITU),

Rep.by its General Secretary, Central Bus Stand South Side, Neyveli-607 801.

2.The Presiding Officer, Central Government Industrial Tribunal-cum-Labour Court, Shastri Bhavan, Haddows Road, Nungambakkam,

Chennai-600 006. ... Respondents

PRAYER : Petition filed under Article 226 of the Constitution of India

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W.P.No.13515 of 2015 praying for issuance of Writ of Certiorari, to call for the records of the second respondent, Labour Court, pertaining to I.D.No.86 of 2012 and quash the award dated 30.01.2015 made in I.D.No.86 of 2012.

For Petitioner : Mr.N.Nithianandam

For Respondents : Mr.V.Ajay Khose for R1 R2-Court

O R D E R

This Writ Petition has been filed by the petitioner Management

challenging the award dated 30.01.2015 passed in I.D.No.86 of 2012 by the

second respondent/Labour Court.

The facts of the case are that the petitioner Corporation is a Public

Sector Undertaking and engaged in mining lignite and generation of power.

The petitioner Corporation engaged contractors on temporary basis to

execute certain identified works and one Aruldoss and Kanagavel are one

among the contractors and they are not the employees of the petitioner

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W.P.No.13515 of 2015 Corporation. While so, the first respondent Union raised Industrial Dispute No.86 of 2012 seeking to reinstate the workmen and give permanency to

them and the Labour Court directed the petitioner Corporation to reinstate the said Arul Doss into service with effect from 07.02.2011 within one month from the date of award and held that the said Arul Doss would be entitled to 50% of the salary payable to a permanent workman working in the same cadre until the date of the award. Insofar as Kanagavel is concerned, since he died during the pendency of the Industrial Dispute, the petitioner Corporation was directed to pay 50% of the salary payable to the regular workman from the date of the award until the date of the death and other benefits, if any due. Challenging the same, the present writ petition has been filed.

When the matter is taken up for hearing, the learned counsel

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W.P.No.13515 of 2015 appearing for both sides would submit that the matter has been settled

between the parties and apart from a sum of Rs.3,37,608/- deposited by the

petitioner Corporation, the petitioner Corporation has agreed to pay another sum of Rs.3,15,000/- to the workmen as full quit.

4. In view of the submission made by the learned counsel appearing

for the petitioner Corporation and the learned counsel appearing for the first

respondent Union, this Court issues the following directions :-

(i) the workmen are permitted to withdraw a sum of

Rs.3,37,608/- already deposited by the petitioner Corporation along with accrued interest;

(ii) the petitioner Corporation, as agreed, is directed to pay another sum of Rs.3,15,000/- (Rupees Three Lakh Fifteen Thousand only), in full quit, in favour of the workmen by way of demand draft, within a period of four (4) weeks from the date of receipt of a copy of this order.

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W.P.No.13515 of 2015

5. With the above direction, this Writ Petition is allowed and the

impugned award dated 30.01.2015 passed in I.D.No.86 of 2012 by the second respondent, is set aside. No costs. Connected miscellaneous petition is closed.

13.03.2025 NCC: Yes / No Index : Yes / No Speaking Order : Yes / No ssb

To The Presiding Officer, Central Government Industrial Tribunal-cum-Labour Court, Shastri Bhavan, Haddows Road, Nungambakkam, Chennai-600 006. Page 5 of 10

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W.P.No.13515 of 2015

M.DHANDAPANI,J.

ssb

W.P.No.13515 of 2015

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W.P.No.13515 of 2015

13.03.2025

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M. DHANDAPANI, J.

W.P.No.13515 of 2015

W.P.No.13515 of 2015

This matter has been listed under the caption “For being mentioned” at the instance of the learned counsel for the petitioner.

When the matter is taken up hearing, learned counsel for the petitioner submitted that this Court vide order dated 13.03.2025 had issued a direction to the petitioner to pay a sum of Rs.3,15,000/- in favour of the workmen by way of demand draft however, the workmen died and the petitioner is unable to find out the legal heirs of the petitioner. Hence, this Court may permit the petitioner to deposit the amount as ordered by this Court to the credit of I.D.No.86 of 2012 on the file of the Central Government Industrial Tribunal-cum-Labour Court, Chennai.

Learned counsel appearing for the 2nd respondent submitted that

he has no objection to the such modification. In such view of the matter, para 4 of the order dated 13.03.2025 shall stand modified as under:-

“4. In view of the submission made by the learned counsel appearing for the petitioner

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W.P.No.13515 of 2015

Corporation and the learned counsel appearing for the first respondent Union, the petitioner is directed to deposit a sum of Rs.3,15,000/- in addition to Rs.3,37,608/which has already been deposited in I.D.No.86 of 2012 within a period of four (4) weeks from the date of receipt of a copy of this order. Out of the said deposit, the respective surviving workmen are permitted to withdraw their share by filing appropriate application and in respect of workmen who are since deceased, their legal representatives are permitted to file appropriate application along with proof of their legal heirship status before the tribunal for withdrawal of their respective shares”

M. DHANDAPANI, J.

Nhs

Registry is directed to carry out the corrections as aforesaid in the order dated 13.03.2025 and issue a fresh order copy to the parties as

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W.P.No.13515 of 2015

aforesaid.

07.11.2025

Nhs

W.P.No.13515 of 2015

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Procedural history

How this case reached the court

AI extract

Order under challenge
Award dated 30.01.2015 in I.D.No.86 of 2012 directing the petitioner Corporation to reinstate Arul Doss into service with effect from 07.02.2011 with 50% of a permanent workman's salary until the date of the award, and to pay 50% of regular-workman salary (from the date of award until death) and other benefits due qua deceased workman Kanagavel.¶17
Central Government Industrial Tribunal-cum-Labour Court (second respondent/Labour Court), Chennai · 30.01.2015
Prior proceeding
Petitioner Corporation, a public sector undertaking engaged in lignite mining and power generation, engaged contractors (including Aruldoss and Kanagavel) on temporary basis for identified works.¶26
Prior proceeding
First respondent Union raised Industrial Dispute No.86 of 2012 seeking reinstatement of the workmen and permanency.¶31
Prior proceeding
Labour Court directed reinstatement of Arul Doss with effect from 07.02.2011 within one month from the date of award and held him entitled to 50% of the salary payable to a permanent workman in the same cadre until the date of the award.¶32
Prior proceeding
Kanagavel having died during the pendency of the industrial dispute, the Labour Court directed the Corporation to pay 50% of the salary payable to the regular workman from the date of the award until the date of death, with other benefits if any due.¶32
Prior proceeding
At the hearing, counsel for both sides submitted the matter stood settled: apart from Rs.3,37,608/- already deposited by the Corporation, it agreed to pay a further Rs.3,15,000/- to the workmen as full quit.¶38
Prior proceeding
Matter listed under the caption 'For being mentioned' at the instance of petitioner's counsel, who submitted that the workmen had died and the legal heirs could not be traced, and sought permission to deposit the ordered amount to the credit of I.D.No.86 of 2012 before the Central Government Industrial Tribunal-cum-Labour Court, Chennai.¶66
Prior proceeding
Counsel for the second respondent (Presiding Officer) submitted he had no objection to the proposed modification of para 4 of the order dated 13.03.2025.¶69