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1978 Supreme(SC) 402

SUPREME COURT OF INDIA
V.R. KRISHNA IYER, JASWANT SINGH AND A.D. KOSHAL, JJ.
G. T. Lad and others, Appellants
Versus
Chemicals and Fibres India Ltd., Respondent.
Civil Appeal No. 1188 of 1976, D/- 6-12-1978.
Advocates appeared
Mr. M. K. Ramamurthi, Sr. Advocate (Mr. Naunit Lal, Advocate with him), for Appellants, Mr. Sachin Chaudhuri, Sr. Advocate (Mr. G. R. Aggarwala, Advocate with him). for Respondent.

Advocates:
B.R.AGRAWAL, M.K.RAMAMURTHY, NAUNIT LAL, Sachin Chandra Chawdhury

Headnote:Industrial Disputes Act S. 33A – Abandonment – Striking workmen not resuming duty inspite of request – Employees refusing notice, pay and other amount sent as finally terminating the employment on the ground that after strike they would resume – Abandonment on to defined – Means total and absolute relinquishment of service – Can be inferred by surrounding circumstances such as the length or absence etc. (Para 5)

       Industrial Disputes Act Sec. 33A – Certified standing order not providing for abandonment of service on refusal to resume duly by striking workmen – Employer cannot terminate the employment which introduces an element of new contract unilaterally – Court while setting aside order of termination or dismissal may consider the burden of whole of the back wages on the employer in the changed circumstances. (Paras 5 & 7)

Judgement Key Points

The Supreme Court has clarified that the burden of proof regarding "gainful employment" is not solely on the worker. When a worker claims to be unemployed, the employer is required to produce "cogent evidence" to establish that the worker was earning income elsewhere. Such evidence may include concrete documents like payroll records, bank statements, or other credible proof of employment or income. This approach shifts the initial burden onto the employer to substantiate the claim that the worker was engaged in gainful employment, once the worker has asserted unemployment.


Judgment

JASWANT SINGH. J.:- This appeal by special leave is directed against the common award dated February 27, 1976 of the Industrial Tribunal, Maharashtra, Bombay rejecting as not maintainable complaints Nos. 48 of 1973 to 63 of 1973 made by the appellants against the respondent (hereinafter referred to for brevity as the Company) under Section 33A of the Industrial Disputes Act, 1947 (hereinafter called the Act) in reference (IT) No. 336 of 1972.

2. The facts material for the purpose of this appeal are:

The appellants (hereinafter described as workmen) were employees of the Company. During the pendency of the abovementioned reference No. 336 of 1972 before the Second Labour Court, Bombay for adjudication of a dispute, 344 workmen of the Company including the appellants went on an indefinite peaceful strike with effect from August 30, 1972, pursuant to the strike notice given to the Company by their registered union called "The Association of Chemical Workers in support of its demand for re-instatement of three of the union leaders who had been dismissed by the Company. On the even date i.e. August 30, 1972, the Company put up a notice stating that the strike embarked upon by the workmen was illegal and those participating in the said strike were liable to disciplinary action for misconduct as per Companys certified standing orders Nos. 22(b) and 24(a). On September 7, 1972, the Company issued notices to the appellants and 10 others asking them to report for duty on or before September 18, 1972, failing which their absence would be construed as voluntary abandonment of service and their names would be struck off from the muster rolls of the Company on September 19, 1972, the Company sent separate communications to the appellants and 10 others informing them that since "by not reporting for duty they had confirmed its presumption that they were no longer interested to continue in service of the Company and had totally abandoned the Companys service" their names had been struck off from the rolls of the Company from that date. Along with its communication, the Company sent a cheque to each one of the appellants for the amount due to him on account of gratuity, leave salary and one months salary. On September 26, 1972, the appellants wrote to the Company returning the cheques sent by the Company and stating that its letter dated September 7, 1972 which had reached them only on September 20, 1972 had already been replied by letter dated September 21, 1972, that they were interested in the service of the Company and had neither voluntarily abandoned the service of the Company nor did they wish to do so, and that they would report for work the moment the strike was called off by their union. On October 23, 1972 the Company wrote to the appellants acknowledging their letter dated September 26, 1972 but stating therein that it did not wish to revise its earlier decision under which their names had been struck off the rolls. It is to be noted that in its letter the Company did not refute the averment made by the appellants in their letter dated September 26, 1972 that the Companys letter dated September 7, 1972 had reached them only on September 20, 1972. On the even date i.e. September 20, 1972, the appellants union wrote to the Labour Commissioner complaining about the arbitrary termination of service of 25 workmen (including the appellants) and emphasising that they had not abandoned service. On October 2, 1972, the appellants and other striking workmen addressed letters to the Works Manager of the Company protesting against the action of the Company in removing them from service and asserting that the said action was by way of victimization for their participation in the strike. On March 30, 1973, the union made a formal demand calling upon the Company to reinstate the appellants and others who had been removed from service on the ground that they had abandoned their service. On May 19, 1973, certain proposals for settlements were















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