SUPREME COURT OF INDIA
P. JAGANMOHAN REDDY, S.N. DWIVEDI AND P.K. GOSWAMI, JJ.
Workmen of the Straw Board Manufacturing Co., Ltd., Appellant
Versus
M/s. Straw Board Manufacturing Co., Ltd., Respondent.
Civil Appeal No. 52 of 1969, D/- 21-3-1974.
U. P. Industrial Disputes Act - Section 4-K and 25-FFF – Workmen - Termination of services - Stoppage of work –Retrenchment - Straw Board Manufacturing Company, respondent (hereinafter to be referred to as the Company) is a public limited company and owns two units known as Straw Board Mill and Regmal Mill (hereinafter described as S. Mill and R. Mill respectively) - Straw Board was manufactured in S. Mill and abrasive paper-cloth described as regmal was prepared in R. Mill - These two Mills are situated close to each other with only a railway line intervening - Each has a factory registered separately under Factories Act, but one balance sheet and one profit and loss account are prepared for company as a whole consolidating accounts of both units. S. Mill was started some time in 1932 and R. Mill was established some time in 1940-41. S. Mill had more than 200 workmen whereas R. Mill had about 50 workmen - Company closed S. Mill on ground of non-availability of Bagassee which is raw material for manufacture or strawboard and terminated services of workmen of this Mill by stages between May, 7 and July 28, 1967 - Held, Claim, however, of respondent-company before us is that proviso to Section 25-FFF(1) is attracted in this case and employees are not entitled to any compensation exceeding their average pay for three months as provided therein - Tribunal, however, did not address itself to this aspect of matter as according to it "since it was a legitimate closure question of compensation could not be determined by it" - A decision against employer after considering all aspects of the matter in relation to said proviso read with Explanation will lead to granting of a higher compensation under sub-section (1) of Section 25-FFF by reason of legal fiction contained therein for payment in accordance with Section 25-F of Central Act - It will now, therefore, be duty of Tribunal to afford adequate opportunity to parties to establish their respective pleas on point, which appertains to domain of second issue in reference - Appeal partly allowed.
Judgment
GOSWAMI, J. :- This appeal by special leave at the instance of the workmen of the Straw Board Manufacturing Company Limited, is directed against the award of the Industrial Tribunal (II) at Lucknow (briefly the Tribunal) dated 30th April, 1968. The facts briefly are as follows :-
The Straw Board Manufacturing Company, the respondent (hereinafter to be referred to as the Company) is a public limited company and owns two units known as the Straw Board Mill and the Regmal Mill (hereinafter described as S. Mill and R. Mill respectively). Straw Board was manufactured in S. Mill and abrasive paper-cloth described as regmal was prepared in R. Mill. These two Mills are situated close to each other with only a railway line intervening. Each has a factory registered separately under the Factories Act, but one balance sheet and one profit and loss account are prepared for the company as a whole consolidating the accounts of both units. S. Mill was started some time in 1932 and R. Mill was established some time in 1940-41. S. Mill had more than 200 workmen whereas R. Mill had about 50 workmen. The Company closed the S. Mill on the ground of non-availability of Bagassee which is the raw material for the manufacture or strawboard and terminated the services of the workmen of this Mill by stages between May, 7 and July 28, 1967. The first batch consisted of 98 workmen whose dispute was the subject-matter of the reference before the Tribunal. On a dispute being raised by the workmen over their termination of services and on failure of conciliation, the State Government under Section 4-K of the U. P. Industrial Disputes Act (briefly the U. P. Act) referred the following two issues for adjudication by the Tribunal :-
(1) Whether the stoppage of work by the employers and the consequent non-employment by them of the workmen, detailed in the Annexure, in stages as from May 7, 1967, amounts to a lay off/retrenchment/lock-out or whether it should be treated as a legitimate closure?
(2) To what relief, if any, are the workmen concerned entitled on the basis of the findings on issue No. 1 above ?
Both the parties submitted their written statements and rejoinders. In accordance with the usual procedure followed by the Tribunal, the following fresh issues were framed on the pleadings :
(i) Whether the present reference is bad in law by reason of withdrawal of the previous reference ?
(ii) Whether this Tribunal is not competent to go into the question whether the closure was for unavoidable reasons beyond the control of the employers ?
(iii) Whether this Tribunal is not competent to determine the question of compensation in this reference ?
(iv) Whether the employers could validly close only the Straw Board Mill without closing the Regmal Mill ?
(v) Whether the awards in Adj. Cases Nos. 53 of 1965 and 93 of 1965 of Labour Courts, Allahabad and Meerut, respectively and in Adj. Case No. 10 of 1967 of Industrial Tribunal (I), Allahabad or any of them operate as res judicata between the parties.
(vi) Whether the Straw Board Mill and Regmal Mill form part of one and the same establishment, and whether this matter has been finally determined by the award of Industrial Tribunal (I) in Case No. 65 of 1963 and does the award operate as res judicata? Issue No. (i) was not pressed before the Tribunal. Numerous documents were exhibited by both the parties before the Tribunal, most of these on admission. The workmen examined only one witness while the Company examined three witnesses, including its Director. After hearing arguments in the case on April 24, 1968, the Tribunal recorded the following order :-
"24-4-68
......... Arguments have been heard on all the issues. If it appears to me that the reference can be answered on findings on the issues framed by me, I will proceed to give my award and it will not be necessary to call upon the parties to adduce evidence on the question of quantum of compensation. In case I am of the view that the question of compensation is
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.