Labour Law Moot Proposition

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MOOT PROPOSITION ON LABOUR LAW-1

October, 2024

In a Capital Corporation Undertaking, there were 80 workmen employed in the year


2021. In the year 2022, it was reduced to 70 workmen. Out of 70 workmen, 50%
workmen had given their name for the registration process. Initially, 7 members had
subscribed their name for formation of the Trade Union but later on 3 have
disassociated themselves from registration process. Their union was under process
for registration and their union was also not recognised by the employer. One of the
workmen, Mr. Sadanand was appointed by Capital Corporations in 2021 for
supervision of the staff at the wages of Rs. 15,000 per month on contractual basis.
He was also given one raise of wages of 2200 Rs. in June 2022 and given
permanent status on the condition that he will not join the trade union. Sadanand
was not a member of the trade union. On April, 2 at around 14.00 hrs in 2023, there
was a scuffle between two labourers working on the site, Sadanand who was
working on the machine at that time went to pacify the situation. While he was
successfully able to do so but during this he forgot to switch off the machinery. The
machinery was on with raw material in it all this time and it resulted in damage of
those materials. The material cost was around Rs. 50,000/-, however more
damaging was that the company lost an urgent contract of Rs. 10,00,000/- which
they have got from a Nashik based firm in subsequent days as in absence of raw
materials, they could not complete the contract. Sadanand’s absence was around
20-22 minutes and he knew that the raw material was sensitive in nature. By the time
he returned to the machine it was 14.22 hrs. The Company, the next day, initiated
the disciplinary proceeding in which he abused management and slapped the
manager. On this behaviour, the disciplinary committee suspended him for 1 month
and it was disclosed to him on the same day at around 16.00 hrs (22nd June 2023).

On 24th June 2023, to the surprise of Sadanand while he was working, at around
11.30 hrs, he got a call from his Supervisor, who gave him a letter which contained
his dismissal order from the management. Sadanand was shocked by this treatment
of the company, he tried to talk to higher authorities but they refused to talk to him.
He also asked the labour union to help him in this matter as according to him it was
purely an honest mistake. The union took the matter but the management refused to
budge. Sadanand who was permanent employee filed the case before
Industrial Tribunal for reinstatement in the job on the ground of unfair dismissal as
per Section 2 (k) of Industrial Dispute Act, 1947 and as per fifth schedule of Industrial
Dispute Act 1947. They went for conciliation but conciliation was not successful so
the workman applied for relief under section 10 and 11 of Industrial Dispute Act,
1947 to Industrial Tribunal but the matter was returned to the appropriate
government for reference in an appropriate forum.

In the light of the above circumstances, kindly justify your arguments with relevant
and landmark judgements:

Following are issues to be dealt with:

1. Whether this will be deemed to be a Registered Trade Union or not?


2. Will Sadanand get the benefits under the Trade Union Act, 1926 and whether
the immunity will be granted to him or not?
3. Whether it is an Individual dispute or an Industrial dispute? Give relevant
reasoning with landmark judgements and decide the appropriate jurisdiction.
4. Decide whether the ‘Capital Corporation Undertaking’ is an Industry or not
and whether Mr. Sadanand will fall under the category of workman or not?

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