Termination of service without following proper procedure or without valid reasons constitutes illegal termination, giving rise to an industrial dispute.

Judgment

GAJENDRAGADKAR, J. : This appeal by special leave arises out of an industrial dispute between the Manager, Bengal Nagpur Cotton Mills Ltd., (hereinafter called the appellant) and Mr. J. Bastain, who was employed by the appellant as a Head Clerk (hereinafter called the respondent). It appears that on 28-12-1955, the respondent handed over charge of his office under protest to Mr. Satyabralal, as a result of the order passed by the appellant. It is this termination of his service against which the respondent applied to the Assistant Labour Commissioner, Madhya Pradesh, under S. 16, sub-sec. (2) of the Central Provinces and Berar Industrial Disputes Settlement Act, 1947 (hereinafter called the Act). He alleged that the termination of his service was illegal and improper and he prayed for an order for his reinstatement by the appellant. This claim was resisted by the appellant on the ground that the dispute between the parties was not an industrial dispute inasmuch as the respondent had voluntarily retired. It was also urged by the appellant that the claim for pension which the respondent sought to make at the time when the voluntarily retired was not valid or justified. Both these pleas were rejected by the Labour Assistant Commissioner with the result that the appellant was asked to reinstate the respondent in its service. The appellant was also directed to pay back wages to the respondent for the intervening period.

2. Against this decision the appellant preferred a revisional application before the Industrial Court, Madhya Bharat, Indore, under S. 19 of the Act. The same contentions were raised by the appellant before the Revisional Court and with the same result. The Industrial Court held that the view taken by the Assistant Labour Commissioner was right and that the respondent was entitled to an order of reinstatement with back wages. In the result, the revisional application filed by the appellant failed and was dismissed with costs. It is against this order that the appellant has come to this Court by special leave.

3. It may be convenient at the outset to state the relevant facts. The respondent was a Head Clerk working with the appellant for nearly 35 years. On 28-5-1955, he applied to the appellant that he should be retired at full pension as per the Company s rules. He also requested than in addition a reasonable gratuity may be paid to him (Ex. A-2). On 29-10-1955, he renewed his request and prayed that he may be allowed to avail himself of all leave due to him from 2-1-1956, and that he may be retired on full pension after the expiry of the said leave. A claim for pension was added in this letter on the ground that he had rendered meritorious service for a long period to the appellant (Ex. A-1). On 5-12-1955, the respondent replied to the letter received by him from the appellant on 3-12-1955, that he was thankful for the appellant s willingness to grant him gratuity but that he was keen about his pension and he reminded the appellant that his request in that behalf had been recommended to the Head Office at Calcutta for sanction. That is why he stated that he did not know why gratuity was being granted to him because he was under the impression that the pension scheme was in force and that he was entitled to full pension. Accordingly he requested for a reconsideration of his case and pressed for grant of pension to him (Ex. A-3). Thereafter, on 27-12-1955, the respondent received a copy of the office order, by which he was told that he had been granted gratuity of Rs. 5,000 and that he would cease work from 28-12-1955 (Ex. AA-2). This office order was not acceptable to the respondent, who made a protest and stated that he was prepared to continue working until he was granted pension according to the rules and custom of the appellant. This protest was not well received by the appellant and he was ordered to hand over charge to Mr. Satyabrala. Accordingly, on 28-12-1955, the respondent handed over charge under p