SC disposes of GM’s petition challenging order on part payment to laid-off workers

In a setback for General Motors India Pvt. Ltd., the Indian entity of American automobile major General Motors, the Supreme Court, in a recent order, has disposed of the company’s petition seeking to quash a Pune Industrial Court order pertaining to the payment of 50% monthly salary to 1,086 retrenched workers from April till disposal of the case. 

In September, the Bombay High Court had rejected a writ petition by the auto major to quash the Pune Industrial Court order delivered in January. The workers in the Talegaon Unit of the company had moved the Industrial Court in July 2021 soon after they were laid off.

“Though the learned senior counsel for the petitioners argued vehemently with regard to the very jurisdiction of the Industrial Court, we feel that it is an aspect which would be looked into by the Industrial Court ultimately,” said the order passed by Justices A.S. Bopanna and Pamidighantam Sri Narasimha of the SC.

“For the present, we note that the order impugned is an interim relief granted to the workmen, and therefore in that circumstance, we see no reason to interfere. However, taking into consideration that such interim relief is payable to more than thousand employees and the issue, in any event, is to be decided by the Industrial Court on the jurisdiction and merit, we deem it appropriate in the instant case, to direct the Industrial Court to consider the matter on its merit as expeditiously as possible and dispose of the dispute within four months from the date of a copy is made available,” the judges said in the order.

Directing the parties to the litigation to cooperate with the Industrial Court, the SC has asked them not to seek unnecessary adjournment.

“All contention of the parties, on all issues are left open to be urged at the appropriate stage and the same shall be considered by the competent court without being influenced by the observations contained in the order passed by the Industrial Court as well as the High Court while disposing the interim issue,” the order added.

“With these observations/ directions, the petition is disposed of. Pending applications if any, shall stand disposed of,” the order further said.

Senior lawyer Sanjay Singhvi, who represented the General Motors Employees Union, said, “General Motors India Pvt, Ltd, has violated Section 25N of the Industrial Disputes Act. As per rules, permission of concerned [Maharashtra] government was not taken before retrenchment. The said labour reduction is illegal and thus injustice has been done to the workers.”

Lawyer Nitin Kulkarni, representing the Employees Union in Pune Industrial Court, said, “The law in India is very clear and it is evident from the order of the Honourable Supreme Court.”  

“We note the decision of the Supreme Court. We will assess our options upon receipt of the court order,” an official spokesperson of GM said.