The age of superannuation should not be fixed retrospectively so as to affect the prior employees of the appellant.

Judgement

GAJENDRAGADKAR J.: This appeal by special leave arises from an industrial dispute between Guest, Keen, Williams Private Ltd., (hereafter called the appellant) and its workmen represented by Guest, Keen, Williams Staff Association (hereafter called the respondent) which was referred for adjudication to the Fifth Industrial Tribunal, West Bengal, Calcutta, by the Government of West Bengal on 29-12- 1954. Three questions were the subject-matter of the reference: "(1) If the system of forced retirement of workmen at the age of 55 as introduced by the management in May 1954 is justified? (2) To what relief the workmen are entitled on retirement? and (3) If the forced retirement of the workmen named in the attached list is justified?- To what relief including reinstatement and or compensation are they entitled?" These three questions were answered substantially in favour of the appellant by the tribunal; but on appeal by the respondent, the Labour Appellate Tribunal has reversed the findings of the tribunal and has substantially answered the questions in favour of the respondent. The correctness of this decision is challenged by the appellant by its present appeal.

2. The appellant is a company incorporated with limited liability under the Indian Companies Act. It carries on business at 41, Chowringhee Road, Calcutta. Its business is engineering and manufacturing of engineering products. It has a factory at Howrah where about 5000 workmen are employed.

3. After the Industrial Employment (Standing Orders) Act, 1946 (20 of 1946) (hereafter called the Act) came into force on 23-4-1946, the appellant submitted its draft standing orders for certification to the certifying officer. On 19-12-1953, the certifying officer duly certified the said orders after giving the trade unions or the appellant s workmen an opportunity to be heard and after considering their objections. Against the said orders no appeal was preferred by the respondent, and so they became final and operative as conditions of service between the parties.

4. The standing order in regard to retirement of the appellant s employees provides that "workmen shall retire from the service of the company on reaching the age of 55 years but the company may at its sole discretion offer an extension of service beyond this age to anybody". In pursuance of this standing order the appellant examined the cases of 56 of its employees who according to their service records appeared to have attained the age of superannuation. The objection raised by two workmen about the correctness of the age shown in their service records was examined and ultimately upheld; their records were accordingly corrected on the strength of the certificates granted to their by the Civil Surgeon, Howrah, seven were allowed extension of service up to 31-1-1955, while the remaining 47 who were over the age of 55 were retired with effect from 31-5-1954, after giving each one of them a notice in that behalf on 11-5-1954. These 47 workmen are shown in the list attached to the reference and it is in respect of them that question No. 3 has been referred to the tribunal.

5. The said 47 workmen were paid all the emoluments due to them in respect of Provident Fund contributions made by the appellant in respect of them and by themselves; they were also paid gratuities at the rate of 15 days pay for each year of their service prior to their becoming the members of the Provident Fund. Besides they were given valuable presents by the appellant in appreciation of their services; and in a large number of cases the appellant offered employment to the sons or other relatives of the said workmen.

6. Even so the respondent raised a dispute about the compulsory retirement of the said workmen and in fact challenged the validity of the relevant standing order itself. It is after this dispute was referred to the tribunal for adjudication that the present proceeding commenced.

7. The tribunal held that the system of forced retirement in