Employees of a private company have no right to prevent their employer from moving out manufactured products or raw materials from the premises just because they suspect the management of attempting to make false claims of suffering losses after shifting the goods to their sister concerns, the Madras High Court Bench here has said.
Allowing a writ petition filed by a company that manufactures industrial boilers and power plant equipment and operates from its registered office in Tiruchi, Justice S. Vimala said: “The respondents (trade union leaders) have no right to… obstruct the products being taken out since it would affect the rights of the third party customers.”
The judge directed Pudukottai Collector and SP to provide sufficient protection to the petitioner company while removing the materials from one of its manufacturing unit at Kumaramangalam village near Mathur in Pudukottai district since “there is no undertaking on the part of the employees that they will not interfere if the products are taken out.”
In its affidavit, the petitioner company claimed that it could not complete work orders due to absence of congenial atmosphere at the manufacturing unit and hence wanted to return the raw materials and semi-finished products to the customers.
Stating that the company had not paid salaries to 130 permanent staff between January and March this year, one of the trade union leaders claimed that there was an attempt to make a false claim of heavy loss after shifting the goods and raw materials.
The judge said the company had deposited Rs.80 lakh towards salary arrears, after the court appointed Advocate Commissioner A. Velan to take inventory of the products at the unit. “The employees have no right to obstruct the products being taken out from the premises… especially when the claim for salary has been settled,” she added.
