Karnataka High Court rules against mandatory individual notices in certain workplace changes

Bengaluru: The Karnataka High Court has ruled that a notice under Section 9A of the Industrial Disputes Act, 1947, read with Rule 35 of the Industrial Disputes (Karnataka) Rules, 1957, is not required to be served individually to each workman via post or similar means, if the proposed change affects all workmen and the establishment has a registered union or association.

The court made this observation while allowing the petition filed by the management of Bharat Earth Movers Limited (BEML).

However, the court clarified that its judgment should not be interpreted as a blanket rule exempting the service of individual notices under Section 9A of the 1947 Act in all circumstances.

"In a situation where the proposed change does not affect all the workmen of the establishment and only impacts some or a few of them, the question of whether individual notice to such affected workmen is required or not was not addressed, as it did not arise in this petition," the court stated.

In this case, BEML had challenged a September 2013 award issued by a Labour Court in Bengaluru, which had declared the notice dated July 21, 2006, issued under Section 9A of the Industrial Disputes Act, as illegal. The notice pertained to the calculation of vacation leave.

The Bharat Earth Movers Employees Association had approached the Labour Court against this notice, arguing that the absence of individual notices to the workmen constituted a violation of Section 9A of the Industrial Disputes Act and Rule 35 of the Industrial Disputes (Karnataka) Rules, 1957.

Challenging the Labour Court’s order upholding the employees’ contention, BEML filed a petition before the High Court.

Justice Anant Ramanath Hegde ruled that the petitioner-establishment retained the right to modify service conditions related to leave encashment and, therefore, the decision could not be deemed to be beyond jurisdiction.

The court further held, "In such a situation, the publication of a notice under Section 9A of the 1947 Act on the main entrance of the establishment, on a notice board, and in the manager’s office constitutes valid notice to the workmen. Additionally, serving a notice via registered post to the secretary of the registered union amounts to valid service of notice to all workmen."