2003 Supreme(SC) 258

2003(2) Supreme 439
SUPREME COURT OF INDIA
(From Patna High Court)
R.C. Lahoti & Brijesh Kumar, JJ.
Pramod Jha and Ors. -Appellants
versus
State of Bihar & Ors. -Respondents
Civil Appeal No. 4157 of 2000
With
C.A.Nos. 1902-1905 of 2003
(@ SLP (C) Nos. 9735-9738/2000)
Decided on 3-3-2003
Counsel for the Parties :
For the Appearing Parties : P.S. Mishra, Sr. Advocate, Tathagat H. Vardhan, Anil K. Jha, Santosh Mishra, S.B. Upadhyay, B.B. Singh, Kumar Rajesh Singh, Advocates.

IMPORTANT POINT
Section 25F of Industrial Disputes Act, 1947 nowhere speaks of the retrenchment compensation being paid or tendered to the worker along with one month s notice, it is required to be made at the time of retrenchment.

Headnote:(i) Industrial Disputes Act, 1947-Sections 2(oo) and 25F-Validity of retrenchment of Project/Scheme employees as also the precise procedure to be followed so as to amount to retrenchment as per law-Whether the amount of compensation as contemplated by Section 25F(b), (and the wages for the period of notice where one month s notice is not given) must accompany the notice under Section 25F(a)? (No)-Appeal dismissed.

       Held : A bare reading of Section 25F of the Act shows that retrenchment within the meaning of the Section 2(oo) of the Act must satisfy the following requirements:-

        (i) that the workman has been given one month s notice : (a) in writing, and (b) indicating the reasons for retrenchment;

        (ii) that the retrenchment must take effect after the expiry of the period of notice, i.e., one month or else the workman should be paid in lieu of such notice, wages for the period of the notice;

        (iii) that at the time of retrenchment the worker has been paid compensation equivalent to 15 days average pay for every completed year of continuous service or any part thereof in excess of six months, and

        (iv) that the notice in the prescribed manner is served on the appropriate government or on the specified authority as notified. (Para 7)

       Section 25F nowhere speaks of the retrenchment compensation being paid or tendered to the worker along with one month s notice; on the contrary clause (b) expressly provides for the payment of compensation being made at the time of retrenchment and by implication it would be permissible to pay the same before retrenchment. Payment of tender of compensation after the time when the retrenchment has taken effect would vitiate the retrenchment and non-compliance with the mandatory provision which has a beneficial purpose and a public policy behind would result in nullifying the retrenchment. (Para 10)

       In the case before us the workmen have been given one month s notice in writing. The reasons for retrenchment have been indicated. An opportunity of hearing against the proposed termination was also afforded though not required by Section 25F. Retrenchment was to take effect on expiry of one month from the date of the notice. Compensation as required by Section 25F was available in the form of banker s cheques for payment to the workers simultaneously with the time of retrenchment and they were given an intimation in advance in that regard. The workers had already approached the High Court and secured an interim order protecting their employment and status quo being maintained. They were obviously not interested in receiving the retrenchment compensation which if done may have had the effect of frustrating the interim order. In these facts and circumstances, the retrenchment of any of the appellants cannot be found fault with on any of the grounds raised by the appellants by reference to clauses (a) and (b) of Section 25F. (Para 16)

       Held consequently : For all the foregoing reasons we find the appeals devoid of any merit and liable to be dismissed. They are dismissed accordingly. The workers are free to collect the amount of retrenchment compensation as was offered to them. For the convenience of the appellants we direct the respondents to have the banker s cheques renewed or fresh banker s cheques drawn up in lieu of the earlier banker s cheques for the amount due and payable to the workers under Section 25F of the Act and inform the workers to collect the same at an appointed time and place. Subject to the said observation the appeals are dismissed though without any order as to costs. (Para 18)

       (ii) Industrial Disputes Act, 1947-Sections 2(oo), 25F and 25K and 25N -55 daily wage workmen in a Project/Scheme retrenched-Contention that relief be allowed on the ground of non-compliance with the provisions of Section 25-N of the Act-Whether tenable? (No, because the contention was not urged before High Court or in SLP and apparently Section 25N was not attracted as number of workmen retrenched were less then 100) (see para 17).