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1972 Supreme(SC) 312

SUPREME COURT OF INDIA
P. JAGANMOHAN REDDY AND K.K. MATHEW, JJ.
Avery India Ltd. Appellant
Versus
Second Industrial Tribunal W.B. and others, Respondents.
Civil Appeal No. 1462 of 1968, D/- 5-5-1972
Advocates appeared
Mr. M. C. Setalvad, Sr. Advocate, (M/s. G. L. Mukhoty and D. N. Gupta Advocates with him), for Appellant; Mr. P. K. Chatterjee, Advocate, for Respondents No. 2 and 3.

Headnote:

Constitution of India,1950 – Article 133(1)(c) - Industrial employment (Standing Orders) Act, 1946 – Section 17-A(1),17-A(4) and 18(3) - Age of retirement – Benefits of retirement - Appellant, a company incorporated under Companies Act, filed a writ petition before High Court of Calcutta praying for issue of a writ or an order in nature of certiorari quashing award passed by Second Industrial Tribunal, directing the reinstatement second respondent, in service of the appellant - Learned Judge of that Court dismissed the writ petition - Appellant filed an appeal before a Division Bench of that Court - Second respondent was employed by appellant as a clerk in its Service Department - At the time, there was no rule prescribing age of retirement of the workmen of the company - Appellant introduced standing orders under provisions of Industrial employment (Standing Orders) Act, 1946 by which the age of superannuation of the workmen was fixed at 55 - Whether his superannuation at the age of 55 was justified and only case put forward by Union before Tribunal – Held, court do not think it necessary to decide interesting question that in view of the fact that the award became operative only in 1964, Whether 2nd respondent, who was made to retire in 1962 in accordance with the provision, in Standing Orders then in force was entitled to get the benefit of the retirement age fixed by the award, on ground that the award was binding on him and the appellant by virtue of Section 18 (3) of the Act - Only ground on which Tribunal ordered the reinstatement was that respondent was employed in the concern prior to the coming into force of Standing Orders, provision in the Standing Orders fixing the age of retirement at 55 was not binding on him in light of the decision of this Court in (1960) 1 SCR 348 - Court will be allowing the 2nd respondent to take a new plea in this Court if court are to say that the order of reinstatement was justified on some ground other than the one on which the award was based - As court find that the decision of the High Court was wrong, court set aside that decision and allow the appeal - Appeal allowed.

Judgement

MATHEW, J.:- The appellant, a company incorporated under the Companies Act, filed a writ petition before the High Court of Calcutta praying for the issue of a writ or an order in the nature of certiorari quashing the award passed by the Second Industrial Tribunal, West Bengal, Calcutta, directing the reinstatement of Ganapati Santra the second respondent, in the service of the appellant. A learned Judge of that Court dismissed the writ petition. The appellant filed an appeal before a Division Bench of that Court. That appeal was also dismissed. This appeal is preferred against the order of the Division Bench by certificate granted by the High Court under Article 133 (1) (c) of the Constitution.

2. The second respondent was employed by the appellant in the year 1946 as a clerk in its Service Department. At the time, there was no rule prescribing the age of retirement of the workmen of the company. In November, 1951, the appellant introduced standing orders under the provisions of the Industrial employment (Standing Orders) Act, 1946 (Central Act 20 of 1946) by which the age of superannuation of the workmen was fixed at 55. On September 17, 1956, the Central Act 20 of 1946 was amended by the Act 36 of 1956. The standing orders in the appellant company were modified on May 30, 1961,but the provision regarding the age of superannuation remained unchanged. On November 27, 1961, the appellant issued a notice to the second respondent informing him that he was due to retire on August 31, 1962 as he would be attaining the age of 55 on that date.

3. On August 11, 1962, respondent No. 3, the Union of the employees of the appellant, submitted a charter of demands. One of the demands was to raise the age of retirement of the workmen in the establishment from 55 to 60. On August 18, 1962, respondent No. 3 wrote to the appellant to keep the retirement of second respondent in abeyance till a decision is arrived at on the charter of demands. On August 30, 1962, the second respondent wrote to the appellant to postpone taking a final decision on the matter as a dispute had already been raised about the retirement age of the workmen in the establishment. By his letter dated August 31, 1962, the Secretary of the appellant Company replied that as long as the retirement age as provided in the standing orders was not altered, he had to be guided by the same but that, if at a later date, the retirement age was altered, the same will be adhered to. The second respondent was made to retire on September 1, 1962.

4. The Government of West Bengal, by its order dated January 29, 1963, made a reference to the first respondent of the industrial dispute between the appellant and its workmen represented by the third respondent. The second question referred, which alone is material for our purpose was:

Is the superannuation of Shri Ganapati Santra justified ? What relief if any, is he entitled to ? What should be the age of retirement of the workmen in the factory ?

5. The appellant contended before the Tribunal on the basis of the standing orders that the age of retirement was 55 years and that the action of the appellant in retiring the second respondent at the age of 55 was proper. The Union, on the other hand, contended that, as the second respondent was appointed in 1946 when there was no age fixed for superannuation, he was not bound by the provision as regards the age of superannuation in the standing orders of 1952 or the modified standing orders of 1961.

6. The Industrial Tribunal, by its award, dated April, 27, 1964, held that the retirement of the second respondent at the age of 55 was unjustified as the second respondent was employed in the concern in the standing orders of 1952 or of 1961 fixing the age of retirement at 55 as he was employed in the concern in 1946, and directed reinstatement of the second respondent. The Tribunal also held "that the age of retirement of all categories of workmen should be raised from 55 of 58 and that standing or















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