Mukand wins legal battle vs staff body

Mukand Ltd , promoted by the Bajaj and Shah families, has won an eight- year-old legal battle against Mukand Staff and Officers ' Association on the revision of emoluments to be paid to company's staff and officers.

The Supreme Court ruled in favour of the company's appeal against the order of the division bench of the Bombay High Court, which had permitted an increase in the emoluments being paid to the employees.

Further, the apex court has refereed the entire issue back to the Industrial tribunal. The apex court decision comes close on the heels of the Corporate Debt Restructuring Cell clearing a loan recast.

Supreme Court has ruled that the increased emoluments being paid under the order of the division bench are not payable now, the company informed the bourses. Increases in emoluments actually payable, if any, will be decided by the tribunal after fresh adjudication.

The amounts already paid to the employees during the pendancy of these proceedings are adjustable against future payments awarded by the tribunal after fresh adjudication.

The issue of arrears not paid, if any, and shown as contingent liability, will be decided by the Tribunal after fresh adjudication.

The apex court has also accepted the company's contention that more than 50 per cent of the staff and officers are not covered by the provisions of the Industrial Disputes Act, 1947 as they are not workmen as defined in the Act.

The court has directed the tribunal to adjudicate the claims of the workmen alone, within six months. Niraj Bajaj, managing director, Mukand said, "We have received an intimation from the Supreme Court that our appeal has been allowed."

About 1,500 staff had appealed about 7-8 years ago for revisions of emoluments being paid to them, he said.

The company had been negotiating with the Staff Association, Bajaj added. However, the company did mot disclose the details of increments in the emoluments.