Judgement

SHAH, J. : The appellant is engaged in carrying on the business of regulating forward trade in groundnut oil and mustard seed, and is recognised as an Exchange under the provisions of the Forward Contracts Act, 1952. On June 1, 1964 the Government of India issued an order prohibiting trading in diverse commodities including groundnut oil and mustard-seed, and in consequence thereof no further business could be carried on through the appellant Exchange. On July 17, 1965 the appellant served notices of retrenchment upon 30 out of its 37 employees and paid them salary for the period of notice and retrenchment compensation under S. 25F of the Industrial Disputes Act, 14 of 1947. The Workmen then raised an industrial dispute. Conciliation proceedings to solve the dispute having failed, the Delhi Administration referred to the Labour Court the dispute whether retrenchment of the workmen by the appellant was unjustified and illegal. The workmen pleaded that retrenchment "on the ground of the ban imposed on forward trading in groundnut oil and mustard-seed was male fide" and that in retaining seven workmen the appellant did not follow, without any adequate ground, "the first come