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1957 Supreme(SC) 5

SUPREME COURT OF INDIA
29th January 1957
BHAGWATI, SINHA AND KAPUR, JJ.
Messrs. Hooghly Jute Mills, Appellants
Versus
Their Employees, Respondents.
Civil Appeal No. 236 of 1956
Advocates appeared
Mr. B. Sen, Senior Advocate (Mr. S.N. Mukherjee and Mr. B.N. Ghosh, Advocates with him), for Appellants.

Advocates:
B.N.GHOSH, B.SEN, S.N.MUKHERJEE

The Labour Appellate Tribunal has no jurisdiction to entertain an appeal against the award of the Industrial Tribunal on a question of fact unless a substantial question of law is involved.

Headnote:

INDUSTRIAL DISPUTES ACT, 1947 - S. 2(k) - INDUSTRIAL TRIBUNAL - JURISDICTION - APPEAL FROM AWARD OF INDUSTRIAL TRIBUNAL - SUBSTANTIAL QUESTION OF LAW - QUESTION OF FACT - SUFFICIENCY OF EVIDENCE - INDUSTRIAL TRIBUNAL'S FINDING OF FACT - WHEN CAN BE SET ASIDE.

Fact of the Case:

Nanilal Mukherjee was employed by the appellant as a Turbine Fitter from 26th July 1944 until July 1951 when the appellant mills were electrified. Some employees were discharged as redundant, including Nanilal Mukherjee. However, he was retained and given a trial in the new set up. On 4th September 1952, the Overseer reported that Nanilal Mukherjee had no aptitude for the new work and should be treated as redundant. The Manager of the Mills dispensed with his services from 30th September 1952. Nanilal Mukherjee's union, the respondent, espoused his cause and the dispute was referred to the Industrial Tribunal, Calcutta.

Finding of the Court:

The Industrial Tribunal found that Nanilal Mukherjee was discharged by way of retrenchment due to redundancy and not due to victimisation or unfair labour practice. The Labour Appellate Tribunal, Calcutta, reversed this award and ordered Nanilal Mukherjee's reinstatement with full pay and emoluments. The appellant challenged this decision in the Supreme Court.

Issues: 1. Whether the Labour Appellate Tribunal had jurisdiction to entertain the appeal against the award of the Industrial Tribunal in regard to Nanilal Mukherjee. 2. Whether the finding of the Industrial Tribunal that Nanilal Mukherjee was discharged due to redundancy was perverse or unreasonable.

Ratio Decidendi: 1. The Labour Appellate Tribunal has jurisdiction to entertain an appeal from an award of the Industrial Tribunal only if a substantial question of law is involved. 2. The sufficiency or otherwise of evidence to enable the fact-finding Tribunal to come to a conclusion on a question of fact is a matter within its exclusive jurisdiction. 3. The finding of fact reached by the Industrial Tribunal can only be set aside if either there was no evidence at all on which such a finding could be based or the finding reached by it was perverse or such as no reasonable body of men could have arrived at.

Final Decision: The Supreme Court allowed the appeal, set aside the decision of the Labour Appellate Tribunal, and restored the award of the Industrial Tribunal, Calcutta, on issue No.2.

Judgement

BHAGWATI J. - This appeal with special leave under Article 136 of the Constitution arises out of a decision of the Labour Appellate Tribunal, Calcutta, reversing the award of the Industrial Tribunal, Calcutta, and ordering the reinstatement of one Nanilal Mukherjee in the employ of the appellant with full pay and emoluments and continuity of service without break.

2. Nanilal Mukherjee had been employed by the appellant on and from the 26th July 1944 as a Turbine Fitter. He continued in the said employ as a Turbine Fitter until July 1951 when the appellant mills were electrified. On such electrification some employees were discharged by the appellant as redundant. Nanilal Mukherjee would also have been similarly discharged, but he was retained in its employ by the appellant as he was a senior Ministry and the appellant intended to absorb him, if Possible, in the new set up of mistries in the electrified mills. He was accordingly given a trial in the new set up for a sufficiently long time. One Collins who was the Overseer in the Mills, however, made a report on 4-9-52 to the Manager of the Mills stating that Nanilal Mukherjee had been working as a general Vice Ministry after the turbine closed down, but it was found after observation that he had no aptitude for this type of work and should therefore the treated as redundant. Acting upon this report the Manager of the Mills on 15-9-52 gave notice to Nanilal Mukherjee dispensing with his services as from 30-9-52. He was paid :- (1) Gratuity for 4 1/2 years at the rate of half a month s average basic wages, (2) his own and Employer s contributions in full to his Provident Fund and (3) earned leave with wages, which he accepted.

3. It appears that the National Union of Jute Workers, Calcutta, the respondent herein, of which Nanilal Mukherjee was a member, espoused his cause and the dispute arising out of his discharge by the appellant was inter alia referred by the Government of West Bengal for adjudication to the First Industrial Tribunal Calcutta. Evidence was led on behalf of the appellant and the respondent; Nanilal Mukherjee and James Collins were examined before the Tribunal and the Tribunal after considering the rival contentions of the parties and the evidence led before it came to the conclusion that Nanilal Mukherjee was discharged by the appellant by way of retrenchment owing to the fact that he could not be gainfully employed after the dismantling of the Turbine and that his discharge was not effected by way of victimisation or unfair labour practice. The Tribunal therefore held that he was not entitled to reinstatement.

4. An appeal was taken by the respondent to the Labour Appellate Tribunal, Calcutta, against this award of the Industrial Tribunal. The Labour Appellate Tribunal overruled the objection of the appellant to the effect that the appeal did not involve any substantial question of law and therefore could not be maintain. It held that it could not possibly believe the story that Nanilal Mukherjee was in the circumstances of the case continued in service month after month. It proceeded to observe :-

"When one is dismissed in the absence of any reasonable evidence, the finding of the lower Tribunal must be set aside as not being on sufficient material but also on the ground that such a conclusion could not have been drawn in the facts and circumstances of this case, when indications are to the contrary."

It accordingly allowed the appeal to this extent and ordered that Nanilal Mukherjee should be reinstated with full pay and emoluments and with continuity in service without a break.

5. The appellant applied for and obtained from this Court special leave to appeal against that decision of the Labour Appellate Tribunal, Calcutta and this appeal has come up for hearing and final disposal before us.

6. It must be observed that the award of the Industrial Tribunal, Calcutta was based on the evidence which had been led before it by the parties, which evidence





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