Karnataka HC: Govt Cannot Order Interim Wage Payment Without Hearing Management, Workers’ Union
The Karnataka High Court has ruled that the government cannot pass an interim order directing the payment of wages to workers without first hearing both the company management and the workers’ union.
Court’s Ruling on Wage Payment Order
Justice Anant Ramanath Hegde made this ruling while allowing a petition filed by Mahindra Aerostructures Private Limited. The company had challenged an order issued on June 11, 2024, by the Principal Secretary/Deputy Special Officer, Child Labour Cell, Department of Labour. The order directed the company to pay ₹6,000 per month as interim wages to its workers.
The High Court set aside the order and stated that the pending application by the workers’ union should be considered by the Labour Court or Industrial Tribunal instead.
Violation of Legal Precedents
The petitioners argued that the government’s order was not legally valid. They cited a 2003 Division Bench ruling in State of Karnataka vs BPL Group of Companies, Karmikara Sangha and Others, which had established that once a dispute is referred to the Labour Court or Tribunal, the government has no power to pass interim orders under Section 10-B of the Industrial Disputes Act.
According to the law, before issuing such an order, the government must:
- Determine if an industrial dispute exists.
- Assess if an emergency situation justifies an interim order.
- Notify both the company management and the workers’ union before making a decision.
The High Court found that in this case, the government had failed to hear the management before passing the order, violating principles of natural justice.
Government’s Argument and Court’s Response
The government’s lawyer argued that since the order was only valid for six months, it had already expired, making the case irrelevant. However, the High Court disagreed, emphasizing that the government had overstepped its authority.
The court referred to the 2003 ruling and stated that if the government wishes to use its power under Section 10-B before or during the referral to a tribunal, it must hear both sides first. In this case, since the dispute was already before the Labour Court/Industrial Tribunal, the government had no right to issue the interim order at all.
Final Decision
The court concluded that the government had acted beyond its legal limits and violated due process. It ordered that a copy of the ruling be sent to the Karnataka Department of Labour to prevent similar violations in the future.
