Judgment

RANGANATH MISRA, J.:- The employer - Karnataka State Road Transport Corporation - created under a State Act entitled the Transport Corporation Act of 1950 (Corporation Act for short) is in appeal by special leave and the common decision of a Division Bench of the High Court which held that termination of employees while on probation on ground of unsuitability amounted to retrenchment and for non-compliance with the provisions of Section 25-F of the Industrial Disputes Act, 1947 (Disputes Act for short), the termination is bad, is challenged.

2. As per Rule 7 made under Section 45 of the Corporation Act, direct recruits are to be on probation for two years and such probation can be extended. The employer terminated the employment of some of the employees during the initial period of probation and of some others during the extended period on the ground of unsatisfactory service. Thereupon an industrial dispute was raised questioning the legality of their termination and the State Government referred the dispute to the Labour Court for adjudication under Section 10 of the Disputes Act. The Labour Court held, overruling the stand of the employer that Section 25-F of the Disputes