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1968 Supreme(SC) 282

SUPREME COURT OF INDIA
J.M. SHELAT AND V. BHARGAVA, JJ..
The Manager M/s. Pyarchand Kesarimal Porwal Bidi Factory, Appellant
Versus
Onkar Laxman Thenge and others, Respondents.
Civil Appeal No. 793 of 1966, D/- 27-9-1968
Advocates appeared
M/s. M. N. Phadke, Naunitlal and B. P. Singh, Advocates, for Appellant; M/s. D. D. Verma and Ganpat Rai, Advocates, for Respondent No. 1.

Advocates:
B.P.SINGH, D.D.VARMA, GANPAT RAI, M.N.Phadke, NAUNIT LAL

Headnote:

Central Provinces and Berar Shops and Establishments Act, 1947 - Factories Act - Central Provinces and Berar Industrial Disputes Settlement Act, 1947 - Section 16 and 20 (1) - Firm - Bidi factories - Employed as a clerk - Dismissal order - Appellant-firm conducts a number of bidi factories at various places in including one -Its head office is also situate there - Factory at Kamptee and head office have always been treated as separate entities though owned by same firm -Consequently, head office was registered under Central Provinces and Berar Shops and Establishments Act, 1947 and factory at Kamptee was registered under Factories Act - Factory has also its own standing orders certified - Aggrieved by order he filed an application under Section 16 of C. P. and Berar Industrial Disputes Settlement Act alleging that said order was incompetent and illegal - Whether Respondent 1 had ceased to be employee of factory and was in employment of head office at time when impugned order was passed - Whether his services were simply lent to head office and he continued all along to be employee of factory? – Held, It is true that appellants were transferred to ASI on condition that they would receive same remuneration and other benefits as they were getting in Scindias and further that it was possible to contend that Scindias alone could dismiss them - But learned Judge explained that these were special terms applicable to appellants - But in spite of them they still had become employees of ASI and were such employees on appointed day - In Court view High Court was right in setting aside order of Assistant Commissioner and Industrial Court on ground that unless a finding was reached on facts of case that contract of service with said factory came to an end and a fresh contract with head office came into being Respondent 1 continued to be in employment of factory and head office was not competent to dismiss him - Appeal dismissed.

Judgment

SHELAT, J. : This appeal, by special leave, directed against the order of the High Court of Bombay (Nagpur Bench) which set aside the orders of the Assistant Commissioner of Labour and the Industrial Court, Nagpur and remanded the case to the Assistant Commissioner.

2. The appellant-firm conducts a number of bidi factories at various places in Vidharba including the one at Kamptee. Its head office is also situate there. The factory at Kamptee and the head office have always been treated as separate entities though owned by the same firm. Consequently, the head office was registered under the Central Provinces and Berar Shops and Establishments Act, 1947 and the factory at Kamptee was registered under the Factories Act. The factory has also its own standing orders certified under the Central Provinces and Berar Industrial Disputes Settlement Act, 1947. Respondent 1 was originally employed in the factory at Kamptee. Two or three years thereafter he was directed to work at the head office and worked therein for about six years prior to the impugned order of dismissal passed against him by the munim of the head office. Aggrieved by the order he filed an application under Section 16 of the C. P. and Berar Industrial Disputes Settlement Act alleging that the said order was incompetent and illegal. The appellant-firm contended that at the material time Respondent 1 was employed as a clerk in the head office that the head office was a separate entity, that the dismissal order had not been passed by the appellant-firm as the owner of the said factory, that the firm, as such owner, was wrongly impleaded and that the application was misconceived.

3. The Assistant Commissioner dismissed the application holding that Respondent 1 at the material time was not the employee in the factory, but was employed in the firm s head office. He relied on the fact that the head office and the factory had separate rules, that Respondent 1 used to sign his attendance in the register of the head office, that he was being paid his salary by the head office, and lastly, that his name was not on the muster roll of the factory. He also found that whereas the staff of the head office was governed by the C. P. and Berar Shops and Establishments Act, the factory was governed by the C. P. and Berar Industrial Disputes Settlement Act. Against the dismissal of his application Respondent 1 filed a revision application before the Industrial Court, Nagpur. The Industrial Court dismissed the application holding that the only question raised before it was whether Respondent 1 was the employee of the head office and that being purely a question of fact, he could not interfere with the finding of fact arrived at by the Assistant Commissioner. Respondent 1 thereafter filed a writ petition in the High Court challenging the said orders. The High Court held that it was possible in law for an employer to have various establishment where different kinds of work would be done, in which case an employee in one establishment would be liable to be transferred to another establishment. But the High Court observed that unless it was established that the employment of Respondent 1 in the factory was legally terminated it could not be assumed merely because he was directed to work in the head office, that his employment was changed and the head office was substituted as his employer in place of the said factory. As the order passed by the Assistant Commissioner was not clear on this question, the High Court remanded the case for disposal according to law.

4. Mr. Phadke, for the appellants, raised the following contentions against the High Court s order: (1) that the High Court made out a new case for Respondent 1, in that respondent 1 had never challenged the validity of the order of dismissal on the ground that there was no change of employment, and that therefore, the head office was incompetent to order his dismissal, (2) that the facts of the case justified the conclusion that











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