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2001 Supreme(SC) 206

2001(4) Supreme 332
SUPREME COURT OF INDIA
S. Rajendra Babu & S.N. Phukan, JJ.
Sain Steel Products -Appellant
versus
Naipal Singh & Ors. -Respondents
Civil Appeal No.11893/1996
Decided on 5-2-2001

IMPORTANT POINT
Where termination order asked workman to collect whatever was due to him but did not spell out whether it included the amount as contemplated u/s 25F of Industrial Disputes Act or not, it could not be said making an offer in terms of Section 25F of the Act.

Headnote:Industrial Disputes Act, 1947- Section 25-F-Termination of services -Labour Court held termination illegal and directed reinstatement with wages last drawn or minimum wages whichever was higher-High Court dismissed writ petition-Appeal-Termination order contended in terms of Section 25-F of the Act as it was open to respondent to collect dues before leaving-Termination letter did not spell out whether it included amount as contemplated u/s 25-F or not-Letter could not be taken making an offer in terms of Section 25-F of the Act-Impugned order called for no interference-However when service was terminated in 1975, it would be proper that some reasonable compensation in lieu of back wages and reinstatement was paid-Rs. 50000/- awarded to be paid by appellant to respondent. (Paras 3 & 4)

       

ORDER

In this appeal the aggrieved employer is the appellant. His case is that respondent No. 2 (hereinafter referred to as the respondent) who was employed pursuant to an appointment order dated 10.9.1974 for a period of 11 months to be on probation and to be continued only on satisfactory completion of the probation but by an order made on 8.9.1975 his services were terminated. On the ground that he had been illegally retrenched from service, a dispute was raised under the Industrial Disputes Act (for short the Act ) and the matter was referred to the labour court. The labour court held that the termination of the services of the respondent did not comply with the provisions of Section 25-F of the Act and therefore illegal and directed his reinstatement with wages at Rs. 137/- per month which was the last drawn wage or the minimum wages permissible under the Minimum Wages Act whichever is higher till the date of his reinstatement. This order was challenged in a writ petition before the High Court. The High Court dismissed the same. Hence this appeal by special leave.

2. In this Court the learned Counsel for the appellant raised several contentions of which two are important in relation to termination of the services of the respondent. Firstly, he contended that the appointment of the respondent was for a period and if it is for a period, his termination was in terms of Section 2(oo) proviso (bb); that on being brought to his notice that on the date of this termination of the services of respondent the said provision was not available, he did not pursue with this line of argument.

3. Secondly, he contended that the termination of services of the respondent was in terms of Section 25-F of the Act as the order of termination discloses that it is open to the respondent to collect the dues before leaving and in this context he relied upon two decisions of this Court in The Straw Board Manufacturing Co Ltd. Saharanpur v. Govind and Ors.1 Management of Delhi Transport Undertaking v. Industrial Tribunal, Delhi & Anr.2 to contend that even an offer of payment is as good as payment itself in terms of Section 25-F of the Act. However, a reading of the letter dated 8.9.1995 on which reliance is placed, it is clear that all that is stated is to ask the respondent to collect whatever is due to him but it does not spell out whether it included the amount as contemplated under Section 25-F or not. In these circumstances we cannot take this sentence to be making an offer in terms of Section 25-F of the Act to comply with the terms thereof. Hence the view taken by the labour court as affirmed by the High Court stands to good reason and it does not call for any interference at our hands.

4. Considering the fact that the respondent has not been in employment of the appellant since 1975 for well over quarter of a century we do not think it appropriate to put him back in service of the appellant. It would be proper that some reasonable compensation be paid to him in lieu of back wages and reinstatement. We think, in the circumstances of the case, appropriate relief to be granted is a sum of Rs. 50.000/- which shall be paid to the respondent or deposited with the labour court within a period of one month from today to be drawn by the respondent. Award made by the labour court as affirmed by the High Court shall stand modified in terms stated above.

The appeal is accordingly allowed in part.

Appeal allowed in part.

*************

Parallel Citations of other Journals :

Sain Steel Products v. Naipal Singh & Ors., 2001(4) Supreme 332 : 2001 (3) JT 578 : 2001 (89) FLR 356 : 2001 (1) LLJ 1345 : 2001 LLR 566 : 2001 (2) LLN 859 : 2001 (2) SCSLJ 123 : 2001 LIC 2372 : AIR 2001 SC 2401

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