SUPREME COURT OF INDIA
M. HIDAYATULLAH, V. BHARGAVA AND C.A. VAIDIALINGAM, JJ.
Workmen of Brahmputra Tea Estates, Appellants
Versus
Incoming Management of Brahmputra Tea Estates and others, Respondents.
Civil Appeal No. 752 of 1966,
D/- 25-9-1967.
Advocates Appeared
Mr. H. R. Gokhale, Senior Advocate, (M/s. G. L. Sanghi and K. P. Gupta, Advocates with him), for Appellants; Mr. S. V. Gupte, Solicitor-General of India, (Mr. D. N. Mukherjee, Advocate, with him), for Respondent (No. 1); Mr. M. M. Kshatriya, Advocate and Mr. G. S. Chatterjee, Advocate for Mr. P. K. Bose, Advocate, for Respondents (Nos. 2 and 3).
INDUSTRIAL DISPUTES - Termination of services of workmen - Reference to Labour Court - Purchase of Tea Gardens by respondent during pendency of reference - Whether respondent liable for claims of workmen - Applicability of Section 25FF of Industrial Disputes Act, 1947.
Fact of the Case:
Fifteen workmen of Brahmputra Tea Estate were terminated from service by the Superintendent of the Tea Gardens, acting on behalf of the Court Receiver, in August 1961. The Government of Assam referred the dispute to the Labour Court in July 1962. During the pendency of the reference, the Tea Gardens were purchased by the respondent in August 1962. The Labour Court held that the respondent was not liable for the claims of the workmen and that the reference had become infructuous.
Finding of the Court:
The Labour Court's finding that the respondent was not liable for the claims of the workmen was upheld by the Supreme Court. The Court held that the respondent was not the successor-in-interest of the Tea Company and did not claim through the Receiver or Liquidator. The Court also held that the transfer of the Tea Gardens to the respondent did not come within the proviso to Section 25FF of the Industrial Disputes Act, 1947, and therefore, the workmen were not entitled to claim reinstatement against the respondent.
Issues: 1. Whether the respondent was liable for the claims of the workmen. 2. Whether the Labour Court should have issued notices to the Receiver or Official Liquidator or both and proceeded to consider the claims of the workmen.
Ratio Decidendi: 1. The respondent was not the successor-in-interest of the Tea Company and did not claim through the Receiver or Liquidator. 2. The transfer of the Tea Gardens to the respondent did not come within the proviso to Section 25FF of the Industrial Disputes Act, 1947. 3. The Labour Court should have issued notices to the Receiver or Official Liquidator or both and proceeded to consider the claims of the workmen.
Final Decision: The Supreme Court set aside the award of the Labour Court and directed it to take up the reference again and deal with it afresh in the light of the directions given by the Court. The Court also held that the respondent would be completely out of the picture in the fresh adjudication and that the workmen could not claim any relief against him.
Judgement
VAIDIALINGAM, J. : This appeal, by special leave, by the workmen of Brahmputra Tea Estate, is directed against the award, dated February 18, 1965, of the Labour Court, Assam, in Reference No. 38 of 1962, holding that the Reference has become infructuous.
2. The circumstances, under which the Reference was made, by the Government of Assam, may be stated. The Brahmputra Tea Estate (hereinafter called the Tea Company), comprised of three gardens, viz., Negheritting, Rangamati and Missamara Tea Estates, with their outer-gardens, were owned and managed by Brahmputra Tea Co. (India) Ltd. The Tea Company had incurred very heavy liabilities; and hence, on November 6, 1956, it created an equitable mortgage, by deposit of title deeds, in favour of the Eastern Bank Ltd., (hereinafter called the Bank). The gardens, mentioned above, formed part of the security covered by the equitable mortgage. This memorandum of equitable mortgage was registered on November 26, 1956. As the Tea Company failed to make payment of the money due to the Bank, the latter filed Suit No. 21 of 1957, in the Court of the Subordinate Judge, Upper Assam, District Johrat, for enforcing its rights, under the equitable mortgage. A preliminary decree was passed, on February 21, 1958; this was followed, by a final decree, on September 19, 1960.
3. In the meantime, on September 16, 1958, the Calcutta High Court had ordered the winding-up of the Tea Company, because of certain defaults made by it. Mr. D. A. Weatherson of the Bank, who had been appointed, by the Johrat Court, as Receiver of the Tea Gardens, by his letter, dated December 30, 1958, intimated the Superintendent of the Tea Gardens, about the winding-up order, passed by the Calcutta High Court on September 16, 1958, and stated that the winding-up order operated as a statutory notice of discharge, of all officers and employees of the Tea Company; nevertheless, the Receiver stated that he desired to offer employment to all the members of the staff who were employed in the Tea Gardens on November 18, 1958, with the exception of fifteen employees, mentioned by him. The Superintendent was requested to obtain the consent of the members of the staff, regarding the offer made by the Receiver.
4. It may be stated at this stage, that the fifteen employees, who were excluded in the letter of the Receiver, were the persons whose claims were referred, by the Government of Assam, to the Labour Court, in Reference No. 38 of l962. The Superintendent, in his turn, sent communication, dated January 19, 1959, to the various workmen, offering employment, on behalf of the Recevier, and requesting them to intimate their acceptance; but, so far as the fifteen workmen, referred to above, were concerned, the Superintendent sent communication to each of them on August 21, 1961, terminating their services, with one month s notice. The workmen concerned were also promised to be paid the Provident Fund amounts that might stand to their credit. It was specifically stated, by the Superintendent, is his turn, sent the communication was being sent, by him, on behalf of the Receiver of the Tea Company and that the termination of the services of the workmen was because of their age.
5. The Assam Chah Karmachari Sangha (hereinafter called the Karmachari Sangha) complained to the Conciliation Officer, Assam, stating that the termination of the services of the fifteen workmen, concerned, was illegal and arbitrary. Though the Conciliation Officer appears to have taken some steps to effect conciliation, be could not proceed further, because the Superintendent of the Tea Gardens regretted his inability to participate in the conciliation proceedings as he had not been authorized to do so by the Receiver of the Tea Gardens. Nevertheless, the Conciliation Officer, on September 18, 1961, wrote to the Receiver, direct, suggesting payment of compensation to the workmen concerned; but that suggestion was not accepted by the Receiver.
6. On February 18, 19
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