SUPREME COURT OF INDIA
19th December, 1963.
P.B. GAJENDRAGADKAR, K.N. WANCHOO AND K.C. DAS GUPTA, JJ.
Bombay Union of Journalists and others, Appellants
Versus
The State of Bombay and another, Respondents.
Civil Appeal No. 497 of 1963.
Advocates Appeared
Mr. Bishan Narain, Senior Advocate, (Mr. I. N. Shroff, Advocate, with him), for the Appellant; Mr. H. N. Sanyal, Solicitor-General of India, (M/s. V. S. Sawhney and R. H. Dhebar, Advocates, with him), (for No. 1) and Mr. S. V. Gupte, Addl. Solicitor-General of India, (M/s. J. B. Dadachanji, O. C. Mathur and Ravinder Narain, Advocates of M/s. J. B. Dadachanji and Co. with him), (for No. 2), for Respondents.
INDUSTRIAL DISPUTES ACT, 1947 - S. 25F(C) - CONSTRUCTION - NOTICE TO APPROPRIATE GOVERNMENT - CONDITION PRECEDENT - NOT MANDATORY.
Fact of the Case:
The appellants, a trade union and two employees, challenged the refusal of the State Government to refer an industrial dispute to a Tribunal under S. 12(5) of the Industrial Disputes Act, 1947. The dispute arose from the termination of services of the two employees by the second respondent, a private limited company, on the ground of retrenchment. The appellants contended that the termination was illegal as the second respondent had failed to comply with the provisions of S. 25F(c) of the Act, which requires the employer to serve a notice on the appropriate Government before retrenching an employee.
Finding of the Court:
The Court held that S. 25F(c) of the Industrial Disputes Act, 1947, which requires the employer to serve a notice on the appropriate Government before retrenching an employee, is not a condition precedent for valid retrenchment. The Court reasoned that the provision is intended to give intimation to the Government about the retrenchment, and that this only helps the Government keep itself informed about the conditions of employment in the different industries within its region. The Court further held that even if S. 25F(c) were a condition precedent, it would not necessarily follow that the appropriate Government would be bound to refer an industrial dispute arising from a breach of the provision for industrial adjudication. The Court stated that the appropriate Government has the discretion to consider the expediency of making a reference under S. 10(1) read with S. 12(5) of the Act, and that it may refuse to make a reference if it considers that it would be inexpedient to do so.
Issues: 1. Whether S. 25F(c) of the Industrial Disputes Act, 1947, is a condition precedent for valid retrenchment. 2. Whether the appropriate Government is bound to refer an industrial dispute arising from a breach of S. 25F(c) for industrial adjudication.
Ratio Decidendi: 1. The Court held that S. 25F(c) of the Industrial Disputes Act, 1947, is not a condition precedent for valid retrenchment because: a. The provision is intended to give intimation to the Government about the retrenchment, and that this only helps the Government keep itself informed about the conditions of employment in the different industries within its region. b. The provision is not intended to protect the interests of the workman as such. c. The object of the provision is different from the objects of the other provisions of S. 25F, which are intended to protect the interests of the workman and are therefore made conditions precedent. 2. The Court held that the appropriate Government is not bound to refer an industrial dispute arising from a breach of S. 25F(c) for industrial adjudication because: a. The appropriate Government has the discretion to consider the expediency of making a reference under S. 10(1) read with S. 12(5) of the Act. b. The appropriate Government may refuse to make a reference if it considers that it would be inexpedient to do so.
Final Decision: The Court dismissed the appeal, holding that the State Government's refusal to refer the industrial dispute to a Tribunal was not illegal.
Judgment
GAJENDRAGADKAR, J. : The principal point of law which this appeal raises for our decision relates to the construction of S. 25F (c) of the Industrial Disputes Act, 1947 (No. 14 of 1947) (hereinafter called the Act). The Bombay Union of Journalists which is the Trade Union registered under the Trade Unions Act, 1926, Mrs. Aruna Mukherji and Mr. T. Thomas are appellant 1 to 3; and the State of Bombay, and the Indian National Press, Bombay, which is a private Ltd. Co, are respondents 1 and 2 respectively in the present appeal. Appellant No. 2 was appointed on the staff of the second respondent on a salary of Rs. 500/- p.m. with effect from January 1, 1955. On November 30, 1957, she was served with a notice of termination of her services with effect from December 1, 1957. The notice recited the fact that the management in consultation with the Editor had decided to retrench her services. Appellant No. 3 Mr. Thomas who was employed as a Sub-Editor in the Free Press Journal some time in 1953, was similarly served with a notice of retrenchment dated November 30, 1957 by which his services were terminated as from December 1, 1957. In both the Notices the two appellants respectively were told that their services had been retrenched under S. 3(2) of the Working Journalists (Conditions of Service) and Miscellaneous Provisions Act 1955. and that in lieu of notice they would be paid their salaries for three months. Both the appellants collected their salaries for the month of November and ceased to work for respondent No. 2 as from December 1, 1957.
2. It appears that appellant No. 1 took up their cause on December 3, 1957 and wrote to the director-in-charge of the second respondent complaining that the action taken by the 2nd respondent smacked of vindictiveness against appellants 2 and 3, and demanded that the notices issued should be withdrawn forthwith and they should be reinstated in their original posts. Respondent No. 2 did not concede the said demand; thereupon, appellant No. 1 moved the Labour Commissioner of respondent No. 1 for taking further action in the matter. At that stage, the Conciliation Officer intervened and called the parties before him. As a result of the discussion held before the Conciliation Officer, it was discovered that no settlement was possible, and so, the Conciliation Officer submitted a failure report under S. 12 (4) of the Act on April 15, 1958. In this report, the Conciliation Officer expressed his opinion that in view of the stand taken by the parties, there was no possibility of any settlement, and so, he was compelled to record a failure.
3. After the matter was thus reported to respondent No. 1 by its Conciliation Officer, both the parties filed their respective statements before respondent No. 1. Respondent No. 1 considered the said statements and the report submitted by the Conciliation Officer and came to the conclusion that it was not necessary to refer the dispute to a Tribunal under S. 12 (5) of the Act. This decision was communicated to the appellants by the Dy. Secretary, Labour and Social Welfare Department of respondent No. 1 by his letter dated July 1, 1958. It is necessary to set out the reasons given in this letter for not referring the dispute to the Tribunal. These reasons were set out in the letter in these terms:-
"1. The termination of services of Shrimati Aruna Mukherji and Shri M. T. Thomas appears to be an act of retrenchment on the part of the management for which the management is willing to pay all the legal dues to the retrenched persons; and
2. in effecting the said termination the management does not appear to have acted mala fide or vindictively nor practised victimisation for trade union activities.
4. The appellants then moved the Bombay High Court under Art. 226 of the Constitution for a writ of mandamus against respondent No. 1, It was urged on their behalf that the refusal of respondent No. 1 to refer the dispute to the Industrial Tribunal under S. 12(5) of the
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.