Authority: High Court of Judicature at Madras

Order Date: 30 September 2026

Case Overview

  • Parties: Petitioners – Coimbatore South Sarvodaya Sangh (represented by Secretary N. Velusamy) and several individual respondents; Respondents – Appellate Authority under the Tamil Nadu Shops and Establishments Act 1947 cum Joint Commissioner of Labour, Coimbatore, and individuals A.P. Arjunan, V. Rajendran, P. Rajagopal, Karuppusamy.
  • Nature of Proceeding: Writ petitions filed under Article 226 of the Constitution seeking certiorari to quash Appellate Authority orders (IA Nos. 8, 9, 11, 10 of 2022 in TNSE Appeal Nos. 2, 3, 5, 4 of 2022) dated 19‑Nov‑2024.
  • Background: Workers were originally employed in the printing department of a ginning factory at Khadi gramam, Kolathupalayam Village. The factory was closed on 1‑Jan‑2001 and the workers were retrenched. The Labour Court, Salem, order dated 19‑Nov‑2023 set aside the retrenchment and directed the employer to provide alternate employment. The workers were subsequently placed in a weaving operation at Akkaraipalayam branch. They refused to work, were issued charge memos, allegedly evaded enquiry, and were dismissed ex‑parte on 28‑Nov‑2014. After a nine‑year gap they filed appeals before the Appellate Authority under the Tamil Nadu Shops and Establishments Act, challenging the dismissal.
  • Contentions: The employer argued that the appeals were not maintainable because the dispute should be before the Labour Court under the Industrial Disputes Act, 1947. The Appellate Authority held that no proof was placed to show the employer was a “factory” within the meaning of the Factories Act, and therefore the appeals under the Shops & Establishments Act could proceed.

Final Outcome

  • The Court held that the pivotal question is whether the employer qualifies as a “factory” under the Factories Act.
  • It set aside the Appellate Authority’s orders dated 19‑Nov‑2024.
  • The Court directed the Appellate Authority to provide the employer an opportunity to prove its status as a factory and, thereafter, to pass fresh orders in IA Nos. 8, 9, 11, 10 of 2022.
  • The writ petitions were allowed, overturning the November 2024 orders and mandating fresh proceedings.

Topics: Labour Law, Industrial Disputes