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2000 Supreme(SC) 2024

2000(8) Supreme 482
SUPREME COURT OF INDIA
S. Rajendra Babu & S.N. Variava, JJ.
J.K. Synthetics -Appellant
versus
Rajasthan Trade Union Kendra & Ors. -Respondents
Civil Appeal Nos. 5074-5079 of 1996
Decided on 12-12-2000
Counsel for the Parties :
For the Appearing Parties : Anoop Choudhary, Jitendra Sharma, Har Dev Singh, Sr. Advocates, Ms. June Chaudhary, Sameer Parekh, Rohit Alex, M.K. Sharma, P.H. Parekh, P. Gaur, P.N. Jha, B.K. Pal, Dinesh Rai Dewedi, Ms. Minakshi Vij, Ms. Madhu Moolchandani, Advocates.

Headnote:Industrial Disputes Act, 1947-Section 2(oo)-Retrenchment-Validity/legality of-Dispute referred to Tribunal to find out if retrenchment was justified-Company sought to justify retrenchment on basis that there was closure of division of Company-Tribunal going into issue whether there was closure and if closure was bona fide-Finding that there was closure and same was bona fide and retrenchment was valid-Single Judge of High Court upholding finding of Tribunal-Division Bench holding that issue of closure ought not to have been gone into by Tribunal since it was not referred to Tribunal-Division Bench holding there was no such division of company and there was no closure and retrenchment not valid-Untenable-It was absolutely necessary for Tribunal to ascertain first whether there was closure and it was bona fide-Before Tribunal existence of unit and closure of same not disputed-Division Bench not justified in holding to the contrary-Direction to prosecute company and its office bearers for contravention of Act and Rules unjustified and unsustainable. (Paras 18 to 28)

       

JUDGMENT

S.N. Variava, J.-These Appeals are against a common Judgment dated 13th November, 1995 passed by the Division Bench of the Rajasthan High Court in five Civil Special Appeals and a Writ Petition.

2. In 1983 the Appellant Company had a "lay off". According to the Appellant the lay off became necessitated because there was a 100% power cut and the Company s own generators were under repairs. Thereafter on 15th January, 1983 the Appellant Company terminated the services of 1164 workmen. According to the Appellant this termination was necessitated because of closure of a section of the Nylon plant. According to the Appellant Company this unit had to be closed because of huge losses and also because of lack of power.

3. On 17th January, 1983 another 1201 workmen were retrenched by the Appellant Company. The Rajasthan Trade Union Kendra (hereinafter referred to as RTUK) filed a Petition in the Rajasthan High Court (W.P. No. 213 of 1983) challenging the termination and retrenchment of the 2367 workmen.

4. On 17th February, 1983 the Appellant Company lifted its lay-off. However, the workmen refused to report for duty and proceeded on a strike.

 5. On 7th March, 1983 the Appellant filed a Writ petition (W.P. No. 409 of 1983) challenging the constitutional validity of Section 25-N of the Industrial Disputes Act (hereinafter called the said Act).

6. On 28th August, 1983 the Government of Rajasthan referred the following disputes to the Industrial Tribunal under Section 10(H) of the said Act:

"1. Whether the lay off in 4 Divisions of J.K. Synthetics Ltd., Kota (viz. J.K. Synthetics, J. K. Acrylics, J.K. Staple & Tows and J.K. Tyre Cord, Kota) from January 10, 1983 to February 17, 1983 was legal and justified and if not, to what relief the workers are entitled?

2. Whether the retrenchment in 4 Divisions of J.K. Synthetics (viz. J.K. Synthetics, J.K. Acrylics, J.K. Tyre Cord and J.K. Staple and Tows, Kota) was justified and if not, to what relief the workers are entitled?

3. Whether in case the provisions of Section 25-N of the Industrial Disputes Act, 1947 are held to be unconstitutional by the Hon ble High Court in the Writ Petitions (213/1983 and 409/1983) the retrenchment was in accordance with other provisions of the said Act, and to what relief workers are entitled?

4. Whether non-resumption of duty by unretrenched workmen engaged in the four Divisions of J.K. Synthetics Ltd., Kota (viz. J.K. Synthetics, J.K. Acrylics, J.K. Staple & Tows and J.K. Tyre Cord, Kota) was justified and whether the workmen are entitled to any relief for this period from February 17, 1983 till they resumed duty."

7. On 19th October, 1983 a Full Bench of the Rajasthan High Court allowed the Writ Petition filed by the Appellant and dismissed the Writ Petition filed by RTUK.

8. On 12th December, 1983 the Industrial Tribunal, with the consent of parties and on the basis of pleadings, raised the following 8 issues :

"1. Whether the lay off in four Divisions of J.K. Synthetics, Kota (namely J.K. Synthetics, J.K. Acrylics, J.K. Staple & Tows and J.K.Tyre Cord, Kota) from January 10th to February 17th 1983 was legal and justified?

2. Whether the retrenchment in aforesaid four Divisions was justified?

3. The provisions of Section 25-N of the Industrial Disputes Act, 1947 having been held to be unconstitutional by Hon ble High Court of Rajasthan, whether the retrenchment in the aforesaid four Divisions of J.K. Synthetics is still in accordance with the other provisions of the Industrial Disputes Act, 1947.

4. Whether the non-resumption of duty by unretrenched workmen engaged in the aforesaid four Divisions from 17.2.83 was justified?

5. Whether for the reasons contained in para 25 and its various sub-paras of statement of demands of J.K. Synthetics Ltd., the reference made to this Tribunal is mala fide, misconceived a




















































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