SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1960 Supreme(SC) 89

SUPREME COURT OF INDIA
24th March, 1960.
P.B. GAJENDRAGADKAR AND K.C. DAS GUPTA, JJ.
Management of Kairbetta Estate, Kotagiri P. O., Appellant
Versus
Rajamanickam Respondents.
Civil Appeal No. 91 of 1959.
Advocates Appeared
M/s. G. B. Pai and Sardar Bahadur, Advocates, for Appellant; M/s. M. K. Ramamurthi and T. S. Venkataraman, Advocates, for Respondents.

Advocates:
G.B.PAI, M.K.RAMAMURTHY, SARDAR BAHADUR SAHARYA, T.S.VENKATA RAMANA

A lock out is not a lay off, and therefore, the provisions applicable to the payment of lay off compensation cannot be applied to the cases of lock out.

Headnote:

INDUSTRIAL DISPUTES ACT, 1947 - S. 2(KKK), 25C - LAY OFF - LOCK OUT - DISTINCTION - LOCK OUT NOT LAY OFF - NO COMPENSATION PAYABLE.

Fact of the Case:

The appellant's manager was assaulted by some workmen, and the staff working in the lower division was threatened. The appellant closed the division from July 27, 1957, to September 2, 1957, due to these threats. The respondents, the workmen, filed a complaint under S. 33C of the Industrial Disputes Act, 1947, claiming lay off compensation for the period of closure.

Finding of the Court:

The court held that the closure of the division amounted to a lock out and not a lay off. It found that the lock out was justified due to the assault on the manager and the threats to the staff. Therefore, the respondents were not entitled to claim lay off compensation.

Issues: Whether the closure of the division amounted to a lay off or a lock out.

Ratio Decidendi: The court held that a lock out is essentially different from a lay off. Lay off generally occurs in a continuing business due to reasons specified in S. 2(kkk) of the Act, such as shortage of coal, power, or raw materials. On the other hand, a lock out is the closure of the business due to a dispute between the employer and the employees. The court found that the closure in the present case was a lock out and not a lay off, as it was due to the assault on the manager and the threats to the staff.

Final Decision: The appeal was allowed, the order passed by the Labour Court was set aside, and the complaint filed by the respondents under S. 33C was dismissed.

Judgment

GAJENDRAGADKAR, J.: This appeal by special leave is directed against the order passed by the Labour Court at Coimbatore directing the appellant, the Management of the Kairbetta Estate, Kotagiri, to pay lay off compensation to its workmen, the respondents, for the period between July 28, 1957, to September 2, 1957. This order was passed on a complaint filed by the respondents before the Labour court under S. 33C (2) of the Industrial Disputes Act XIV of 1947 (hereinafter called the Act).

2. The material facts leading to the respondents complaint must be set out briefly at the outset. On July 26, 1957, Mr. Ramakrishna Iyer, the appellant s Manager, was assaulted by some of the workmen of the appellant. He suffered six fractures and had to be in hospital in Coonoor and Madras for over a month. The appellants staff working in the division known as kelso Division was also threatened by the workmen. As a result of these threats three members of the staff wrote to the appellants on July 27, 1957, that they were afraid to go down to the lower division and it was impossible for them to work there because their lives were in danger. They added that the workers in the lower division were threatening them that they would murder them if they worked in the lower division. On receiving this communication from its staff the appellant notified on the same day that the Kelso Division would be closed from that day onwards until further notice. This notice referred to the brutal assault on the Manager and to the threat held out against the field staff who were reluctant to face the risk of working in the lower division. It appears that the Kelso Division continued to be closed until September 2, 1957, on which date it was opened, as a result of conciliation before the labour officer, when the respondents gave an assurance that there would not be any further trouble. The claim for lay off is made for the said period during which the division remained closed between July 28 to September 2, 1957.

3. Soon after the division was closed the respondents made a complaint to the Labour Court (No. 43 of 1957) under S. 33A of the Act in which they alleged that they had been stopped from doing their work without notice or enquiry and claimed an order or reinstatement with back wages and continuity of service. At the hearing of the said complaint the appellant raised a preliminary objection that the closure in question was a lock out and that it did not amount either to an alteration of conditions of service to the prejudice of the workmen nor did it constitute discharge or punishment by dismissal or otherwise under cls. A and B of S. 33 respectively, and so the petition was incompetent. This preliminary objection was upheld by the Labour Court and the complaint was accordingly dismissed on November 30, 1957.

4. Thereafter the present complaint was filed by the respondents on January 31, 1958, under S. 33C of the Act. In this complaint it was stated that the respondents were refused work from July 28 to September 2, 1957, "by declaring a lock out of a division of the estate" and the claim made was that, as the management for their own reasons did not choose to run the division during the said days and laid off the respondents, the respondents were entitled to claim lay off compensation under S. 25C of the Act. Against this complaint the appellant raised several contentions. It was urged on its behalf that the complaint was incompetent under S. 33C and that the Labour Court had no jurisdiction to deal with it. It was also contended that the closure of the division amounted to a lock out which under the circumstances was perfectly justified and as such the respondents were not entitled to claim any lay off compensation. The Labour Court rejected the preliminary objection as to want of jurisdiction and held that the complaint was competent under S. 33C. On the merits it found in favour of the respondents and so it directed the appellant to pay to the respo








Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top