MOOT PROPOSITION

Saurashtra Electronics Limited (SEL) is a Navratna PSU under the

Ministry of Defence, Government of India, which gives progressed
items and frameworks to military, government and regular citizen
clients. SEL was originally established to suit the specific electronic
hardware requirements of the Indian Defence Services. Still, it now has a
significant presence in the non-military people market as well. SEL is
one of the top Electronic Manufacturing Companies in Delhi. SEL was
established in 1956 ushering in the heavy electrical equipment industry
in India. When it was set up in 1956, SEL was envisaged as a plain
manufacturing PSU, with technological help from the Soviet Union. In
1980's it was cutting edge in thyristor technology. In 1991, SEL was
converted into a public company. Over time, it developed the capability
to produce a variety of electrical, electronic, and mechanical equipment
for various sectors, including transmission, transportation, oil and gas,
and other allied industries. However, the bulk of the company's revenue
is still derived from the sale of power generation equipment such as
turbines and boilers. As of 2019, equipment supplied by SEL constituted
around 55% of the total installed power generation capacity in India.
The company also supplies electric locomotives to the Indian Railways
and defence equipment such as the Super Rapid Gun Mount (SRGM)
naval guns manufactured in partnership with the Ordnance Factory
Board and simulators to the Indian Armed Forces. SEL is engaged in the
design, engineering, manufacturing, construction, testing,
commissioning and servicing of a wide range of products, systems and
services for the core sectors of the economy, viz. power, transmission,
industry, transportation, renewable energy, oil & gas, and defence. It has
a network of 16 manufacturing units, two repair units, four regional
offices, eight service centres, eight overseas offices, 15 regional centres,
seven joint ventures, and infrastructure allowing it to execute more than
150 projects at sites across India and abroad. The company has
established the capability to deliver 20,000 MW p.a. of power equipment
to address the growing demand for power generation equipment. SEL
has retained its market leadership position during 2022–23 with 74%
market share in the Power Sector. An improved focus on project
execution enabled SEL record its highest ever
commissioning/synchronization of 15059 MW of power plants in
domestic and international markets in 2021–22, marking a 59% increase
over 2022–23. With the all-time high commissioning of 15000 MW in a
single year FY2022-23, SEL has exceeded 170 GW installed base of
power generating equipments. The company has grown significantly in
turnover and is consistently giving sufficient profits. SEL is focusing on
solid development of 12-15% during 2022- 23. Radar and Missile
Systems, Communication, Network-Centric Systems, and other areas
will continue to drive the company's growth in the years ahead. Inspite
of being one of the top industries in Delhi, the working condition of
contractual workers are not good. Therefore Saurashtra Electronics
Limited (SEL) Workers Union decided to amalgamate to have effective
collective bargaining as there were three Registered Trade Union and
they all were demanding 7th Pay Commission since long as it was not
applicable to contractual workers working in SEL which was comprising
40 percent of the SEL and permanent job as around 30 percent of
workers are working from the last 10 years and still on contract. There
were frequent strikes with respect to it. Now to have effective collective
bargaining with the management, all three registered trade union have
amalgamated to become a strong trade union with the name of Bhartiya
Mazdoor Sangh. Bhartiya Mazdoor Sangh were in negotiations with the
management for implementation of 7 th Pay Commission and to notify
permanent positions for several months. Despite several rounds of
discussions, no agreement has been reached. The industrial peace got
disturbed that led to frequent strikes affecting the production and target
delivery of products causing financial losses for the company. The
Union after giving notice to management decided to go for 15 days of
BHOOK HARTAL. The management of SEL claims that this strike is
illegal under the Industrial Disputes Act, 1947, as it has not followed the
prescribed procedures for calling a strike. The management has decided
to deduct 15 days wages of workers who resorted to hunger strike and
initiated disciplinary proceedings against them. Whereas few workers
have been retrenched after the management found them guilty. Bhartiya
Mazdoor Sangh on the other hand argues that they have a legitimate
demands and the strike is a last resort to press for their rights. They
contend that the strike is legal as per Industrial Disputes Act 1947. In the
meanwhile due to some dispute with the officer of SEL, one worker
named Ramesh Kumar has been suspended who was member of the
Union. In response to the above action, Bhartiya Mazdoor Sangh filed
the case before the Labour Court against the SEL. Whereas Court
decided in favour of Management along with compensation of 2 Lakhs
rupees for the losses suffered by management. Being dissatisfied by the
decision of Labour Court, Bhartiya Mazdoor Sangh filed a case before
the Delhi HC.

The labour union contends that the retrenchment of these union leaders
is a violation of their rights under the Industrial Disputes Act of 1947.

Issue Raised:-

Whether retrenchment of few workers who were member of Bhartiya

Mazdoor Sangh by the Management violates the provisions of Industrial
Dispute Act, 1947?

Agruments -