Judgement

GROVER, J.:- This is an appeal by special leave from an award of the Industrial Tribunal, Allahabad, dated May 19, 1967.

2. The material facts may be stated. The appellant, which is a limited liability company and which later on went into voluntary liquidation, was carrying on the business or undertaking of generation, distribution and supply of electricity. One of such undertakings was the Electric Supply Undertaking at Allahabad in the State of Uttar Pradesh. Its affairs and business were being looked after and managed by Martin Burn & Co. Ltd., Calcutta. Some of the appellant s workmen in Allahabad and its surrounding area were members of Bijli Mazdoor Sangh - a trade union registered under the Indian Trade Union Act, 1926. The U. P. State Electricity Board compulsorily acquired and took over the assets of the appellant s aforesaid undertaking or business with effect from 16/17th September 1964.

3. In accordance with the provisions of the Industrial Employment (Standing Orders) Act 1946, hereinafter called the Act and the U. P. Industrial Employment (Standing Orders) Rules 1946 the appellant submitted draft Standing Orders defining the conditions of employment of its employees. On July 14, 1951 these orders were certified by the Certifying Officer. Clause 32 of the Standing Orders was in the following terms:

"32. RETIREMENT- An employee who has served 30 years or who has reached the age of 55 will be retired, but exemption to this may be granted by the Company in special cases".

The workmen through the Bijli Mazdoor Sangh preferred an appeal under S. 6 of the Act from the order of the Certifying Officer to the State Industrial Tribunal which was the appellate authority under the Act. That appeal, however, was dismissed. The Agra Electric Supply Co. Ltd. Agra and Benaras Electric Light & Power Co. Ltd. Varanasi, which is the appellant in the connected appeal (C. A. 164/68) also got certified Standing Orders in similar terms. These electric undertakings were also under the management of Martin Burn & Co. Ltd. On July 16, 1959 notices were served on seven workmen with effect from September 1, 1959 on the ground that they had attained the age of superannuation or completed 30 years of service and they were retired by reason of their having attained the age of superannuation. Out of these workmen one of them Haider Ali died during the pendency of proceedings. The other six employees have been impleaded as respondents Nos. 1 to 6 in the present appeal.

4. According to the appellant these respondents accepted all the accumulations due to them in respect of Provident Fund contributions made by the appellant in respect of them and by themselves and were also paid gratuities credited to them in their respective Provident Fund accounts for their services prior to their becoming members of the Provident Fund.

5. By an order dated February 22, 1960 made under Section 4-K of the U. P. Industrial Disputes Act 1947 the Government of U. P. referred to the Industrial Tribunal (I) at Allahabad for adjudication of an industrial dispute alleged to exist between the appellant and its workmen on the following issues:

"Whether the employers have wrongfully and/or unjustifiably retired their workmen, mentioned in the Annexure, with effect from 1st August, 1959? If so, to what relief are the workmen entitled?"

Respondents 1 to 6 and Haider Ali (since deceased) were the workmen mentioned in the Annexure. The case of the workmen before the Industrial Tribunal was that they had entered service of the appellant prior to the certification of the Standing Orders. At the time of their appointment there was no condition that they would be liable to retirement after attaining any prescribed age or after putting in any fixed period of service. A practice was in vogue that the workmen would continue in service till he was physically fit. Accordingly Clause 32 of the certified Standing Orders was neither binding nor enforceable. The Industrial Tribunal made