IMPORTANT POINT
Where private colliery retrenched workmen under Section 25F of Industrial Disputes Act and later that colliery was nationalised the management of new colliery cannot refuse employment to such retrenched workmen in view of Section 25H of I.D. Act. The new colliery has to re-employ such workmen when it recruits workmen.

JUDGMENT

Rajendra Babu, J.-The management of the Bhugatdih Rise Area Colliery was taken over by the Central Government under the Coking Mines (Emergency Provisions) Act, 1971 which came into effect on October 17, 1971. Subsequently, the Colliery stood nationalised with effect from May 1, 1972 under the provisions of the Coking Coal Mines (Nationalisation) Act, 1972 (for short the Nationalisation Act ). 111 workmen who were working in these collieries were laid off by the management in 1971 and subsequently retrenched from service. Some of the workers of the Bhugatdih Colliery were taken back in employment though they were purely temporary workmen on daily basis. The Union of the workmen demanded employment of these 111 workers but the respondents did not employ them. Thereafter, a dispute whether the action of the management of Industrial Colliery of Messrs Bharat Coking Coal Limited in refusing employment to 111 workmen listed in the Annexure below was justified and, if not, to what relief are the said workmen entitled, was referred to the Industrial Tribunal.

2. The claim of the workmen before the Tribunal is that they are permanent workers and though they had been retrenched, they are entitled to preference in the matter of employment under Section 25-H of the Industrial Disputes Act, 1947 (hereinafter referred to as the Act ). The respondents took the stand that Bharat Coking Coal Limited is neither the employer of the workmen within the meaning of Section 25-H of the Act nor is it successor-in-interest of the colliery in question. The 111 workmen were retrenched on June 9, 1971 long before the Coking Mines (Emergency Provisions) Act, 1971 came into effect on October 17, 1971. Inasmuch as the 111 workmen were retrenched on June 9, 1971, they were neither in employment on the appointed day, that is, May 1, 1972, nor their retrenchment was set aside by any court or tribunal. It is contended that under Section 9 of the Nationalisation Act, the Central Government shall not be liable for any liability of the owner, agent, manager or managing director of a coking cool mine in relation to any period prior to May 1, 1972 and such liability will be that of the previous owner. The respondents contended that a person who does not acquire both the assets and liabilities cannot be a successor-in-interest and, therefore, reference should be rejected.

3 The Tribunal held that the erstwhile management of the Bharat Colliery retrenched as many as 150 or more workmen for operational and financial problems and, therefore, there was a statutory obligation on the owner flowing from Section 25-H of the Act to re-employ the retrenched workmen if it proposes to take in its employment any person as envisaged in that Section. The Tribunal, therefore, gave a direction that the refusal to employ the 111 workmen in question is not justified and on establishing the identity of the workmen as indicated in the course of the award, their cases will be considered for employment as and when any recruitment is done. The matter was carried to the High Court by way of a writ petition. After examining the provisions of Sections 9 and 17 of the Nationalisation Act, the High Court held that the workmen in question cannot claim any benefit under Section 17 as they were neither in employment on the appointed day, that is, May 1, 1972, nor their retrenchment was set aside by any court or tribunal; that thus they were neither workmen of the respondent nor are entitled to be deemed to its workmen. The High Court next considered whether the respondent is a successor-in-interest of the Colliery and on examination of Section 9 of the Nationalisation Act, took the view that the Government or the respondent cannot be considered to be successor-in-interest of the old business inasmuch as only the right, title and interest of the coking coal mines have been acquired by the Government under the Nationalisation Act free from all encumbrances; that it is neither the liabil