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2026 DAILYLAW 53499 (KAR)

THE MANAGEMENT OF WEST COAST PAPER MILLS LTD v. THE ASSISTANT LABOUR COMMISSIONER

WP/107403/2025 · 2026-01-31

K S Hemalekha

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Judgment text

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- 1 - HC-KAR NC: 2026:KHC-D:1348 WP No. 107403 of 2025 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 31ST DAY OF JANUARY 2026 BEFORE THE HON'BLE MRS JUSTICE K.S.HEMALEKHA WRIT PETITION NO. 107403 OF 2025 (L-RES) BETWEEN: THE MANAGEMENT OF WEST COAST PAPER MILLS LTD., POST BOX NO.5, BANGUR NAGAR, DANDELI-581325, DISTRICT UTTARA KANNADA, REPRESENTED BY ITS EXECUTIVE DIRECTOR. …PETITIONER (BY SRI. RAVI HEGDE AND SRI. VINAYKUMAR BHAT, ADVOCATES) AND: 1. THE ASSISTANT LABOUR COMMISSIONER DHARWAD DIVISION, KARMIKA BHAVAN, PRIYADARSHINI COLONY, GOKUL ROAD, HUBBALLI-580030, DIST: DHARWAD. 2. SRI. SHIVAJI APPAYYA GURAV AGE: 37 YEARS, PRESIDENT, WORKERS UNION OF WESCO DANDELI, R/O. 6TH CROSS, BOMBAY CHAL, DANDELI RURAL-581325, DIST: UTTARA KANNADA. 3. SRI. MANJUNATH THAKURAPPA LAMANI AGE: 38 YEARS, GENERAL SECRETARY, WORKERS UNION OF WESCO DANDELI, R/O. NO. 250, NEAR PATHAN GALLI, GANDHINAGAR, DANDELI RURAL-581325, DIST: UTTARA KANNADA. …RESPONDENTS (BY SMT. GIRIJA S.HIREMATH, HCGP FOR R1; NOTICE TO R2 AND R3 ARE SERVED) GIRIJA A. BYAHATTI Digitally signed by GIRIJA A. BYAHATTI Location: HIGH COURT OF KARNATAKA DHARWAD BENCH Date: 2026.02.04 10:30:02 +0530 - 2 - HC-KAR NC: 2026:KHC-D:1348 WP No. 107403 of 2025 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE WRIT OF CERTIORARI OR ANY OTHER WRIT OR ORDER, QUASHING THE CERTIFICATE OF REGISTRATION DATED 19.07.2025 IN NO. ALCDH/TU/P-61002041/2025-26, ISSUED BY RESPONDENT NO.1 VIDE ANNEXURE-D, AND ETC. THIS WRIT PETITION COMING ON FOR ORDERS THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: THE HON'BLE MRS JUSTICE K.S.HEMALEKHA ORAL ORDER 1. The petitioner Management has called in question the Certificate of Registration dated 19.07.2025 issued by the Assistant Labour Commissioner, Dharwad Division, in favour of respondent Nos.2 and 3, registering a new trade union styled as “Workers Union of WESCO, Dandeli”, and all consequential proceedings, including the joint meeting notice, contending that the said registration is without jurisdiction and contrary to the statutory mandate under the Trade Unions Act, 1926 (for short, “the Act”). - 3 - HC-KAR NC: 2026:KHC-D:1348 WP No. 107403 of 2025 2. Brief facts of the case: 2.1. The petitioner is a paper manufacturing company situated at Dandeli, employing approximately 4,200 employees. 2.2. Since 1991, industrial relations in the establishment have been governed through a Joint Negotiation Committee (JNC) evolved on the basis of secret ballot elections conducted by the Labour Department, wherein only unions securing the prescribed minimum percentage of votes are entitled to representation. 2.3. Periodical tripartite settlements under Section 12(3) of the Industrial Disputes Act, 1947 (‘the ID Act’, for short) have been entered into between the Management and the recognized Unions. The latest settlement dated 28.10.2024, operative from 01.01.2023 to 31.12.2026, - 4 - HC-KAR NC: 2026:KHC-D:1348 WP No. 107403 of 2025 expressly stipulates that no fresh charter of demands shall be raised during its subsistence. 2.4. It is stated that, while the said settlement was in force, respondent Nos.2 and 3 formed a new Trade Union claiming to represent contract labourers and obtained registration on 19.07.2025 from the Assistant Labour Commissioner. 2.5. Immediately thereafter, respondent Nos.2 and 3 raised a fresh charter of demands, pursuant to which a joint meeting notice was issued by the Deputy Labour Commissioner, compelling the petitioner to approach this Court by filing the present writ petition. 3. Heard the learned counsel for the petitioner and learned HCGP for the respondents. It is noticed that respondent Nos. 2 and 3, whose registration is under challenge, have been duly served with notice and hand - 5 - HC-KAR NC: 2026:KHC-D:1348 WP No. 107403 of 2025 summons. Despite service, they have chosen to remain absent. 4. Contention of the petitioner: 4.1. Learned counsel for the petitioner contends that, by virtue of the amended notification dated 19.05.2025 issued by the Labour Department, Government of Karnataka, and the consequential office order dated 11.06.2025, the power to register Trade Unions stood transferred from Assistant Labour Commissioners to Labour Officers, and therefore, respondent No.1 – Assistant Labour Commissioner lacked jurisdiction to issue the impugned Registration Certificate dated 19.07.2025. 4.2. It is further submitted that the mandatory requirement under Section 9-A of the Act, namely, that a Trade Union must have minimum of 10% of the workmen or 100 workmen, - 6 - HC-KAR NC: 2026:KHC-D:1348 WP No. 107403 of 2025 whichever is less, was not satisfied. The Labour Inspector’s report itself discloses that several workmen were unwilling to join the proposed Union. 4.3. It is submitted that, the registration is alleged to have been granted in haste, without due application of mind and by suppressing material facts, including the inspection report. 4.4. It is also contended that, despite the subsistence of a binding settlement under Section 12(3) of the ID Act, respondent Nos.2 and 3 had no right to raise a fresh charter of demands and that the joint meeting notice issued on such basis is ex facie illegal. 5. Per contra, learned HCGP appearing for the respondents – State submits that, the application for registration of the Trade Union was received on 13.05.2025 through the official portal in the office of - 7 - HC-KAR NC: 2026:KHC-D:1348 WP No. 107403 of 2025 the Assistant Labour Commissioner. It is submitted that the amended notification dated 19.05.2025, transferring powers under the Act from the Assistant Labour Commissioner to the Labour Officer, was received in the Labour Commissioner’s office at Bengaluru only on 15.07.2025, and therefore the registration granted on 19.07.2025 was in the absence of intimation of the amended notification and as such, cannot be faulted for want of jurisdiction. Paragraph 2 of the submission reads thus: “2. It is submitted that, the application for registration of Trade Union was received on 13-05- 2025 copy is herewith produced as Annexure-R1. through the official portal addressed to this office i.e. The Assistant Labour Commissioner (Previous Competent Authority under the Trade Union Act, 1926 exercising powers of Registrar under the administrative arrangement then in force) and the subsequent administrative order of May-2025 transferring powers to Labour Officer i.e. Amended Notification No: KAE 267 LET 2020, dated: 19-05- 2025 under the Trade Union Act, 1926 was received vide Labour Commissioner, Bangalore's Office Order No: P&S/SCA/ CR-17/2024-25, Dated: 11-06-2025 on 15-07-2025 in this Office Copy is herewith marked as Annexure-R2 and 3. Administrative orders are prospective unless expressly made retrospective. There is no indication that the 19-05-2025 order intended to invalidate or transfer pending applications. Therefore, the ALC retained continuing jurisdiction - 8 - HC-KAR NC: 2026:KHC-D:1348 WP No. 107403 of 2025 over applications already received. Hence Doctrine of Continuity of Proceedings Applies. So the contents of this para are denied completely by this respondent.” 6. This Court has carefully considered the submissions and perused the material on record. 7. Upon consideration of the entire material on record, this Court finds that on the date of issuance of the registration certificate dated 19.07.2025, the amended notification dated 19.05.2025 was already in force. As such, the Assistant Labour Commissioner had no statutory authority to register a Trade Union in view of the amended notification and the consequential office order transferring such powers to the Labour Officer. Though the State contends that intimation of the amended notification was received by the office later, the same cannot be a ground to hold that the Assistant Labour Commissioner had the authority to issue the registration, since the amended notification had already come into effect. The impugned registration has been granted without considering the - 9 - HC-KAR NC: 2026:KHC-D:1348 WP No. 107403 of 2025 amended notification and, therefore, the registration certificate dated 19.07.2025 issued by the Assistant Labour Commissioner is without jurisdiction and is liable to be set aside on that ground alone. 8. Accordingly, this Court pass the following: ORDER i. The writ petition is allowed. ii. The Certificate of Registration of the Trade Union dated 19.07.2025 (Annexure-D) issued by the Assistant Labour Commissioner, Dharwad Division, is hereby quashed. Sd/- JUSTICE K.S.HEMALEKHA gab Ct:VH List No.: 1 Sl No.: 25