SUPREME COURT OF INDIA
O. CHINNAPPA REDDY AND V. KHALID, JJ.
Workmen of American Express International Banking Corporation, Appellant
Versus
Management of American Express International Banking Corporation, Respondent.
Civil Appeal No. 300(NL) of 1982
Decided on 28-8-1985*
Advocates appeared
Mr. Jitendra Sharma, Advocate for Appellant; Mr. G. B. Pai, Sr. Advocate, Mr. Ashok Grover and Mr. V. N. Koura, Advocates with him, for Respondent.
Industrial Disputes Act – Section 25 – Delhi Shops and Establishments Act, 1954 – Sections 16, 17 and 18 – Payment of Gratuity Act – Section 2 - Terminated services of workman - Special leave – Workmen of American Express International Banking Corporation who sponsored the cause of their fellow workman in an Industrial Dispute are appellants in this appeal by special leave of this court – American Express International Banking Corporation terminated services of workman on common ground that provisions of Industrial Disputes Act were not complied with – According to management it was not necessary to comply with provisions of workman concerned was not in continuous service for not less than one year as prescribed by tribunal upheld contention of management workmen have preferred this appeal – Held, Court came to conclusion that expression actually employed occurring in Explanation I meant same thing as the expression actually worked occurring in Explanation II and that as workmen concerned had not actually worked for more in the year they were not entitled to payment of gratuity for that further question as to what was meant by expression actually worked was not considered as apparently it did not arise for consideration – Question whether Sundays and other paid holidays should be taken into account for purpose of reckoning the total number of days on which workmen could be said to have actually worked was not considered in that case other cases cited before us do not appear to have any bearing on the question at issue before us – Appeal allowed.
JUDGMENT
CHINNAPPA REDDY, J. :— The Workmen of American Express International Banking Corporation who sponsored the cause of their fellow workman B. Ravichandran in an Industrial Dispute are the appellants in this appeal by special leave of this court. The American Express International Banking Corporation terminated the services of the workman on Oct. 31, 1975. It is common ground that the provisions of S. 25-F of the Industrial Disputes Act were not complied with. According to the management it was not necessary to comply with the provisions of S. 25-F as the workman concerned was not in continuous service for not less than one year as prescribed by S. 25-F read with S. 25-B of the Industrial Disputes Act. The tribunal upheld the contention of the management. The workmen have preferred this appeal.
2. The facts very briefly are that the workman joined the service of the American Express International Banking Corporation on Nov. 4, 1974 as a typist-clerk in a temporary capacity and was employed as such, with a number of short breaks, till Oct. 31, 1975 when his services were terminated. According to the workman excluding the breaks in service, he actually worked under the employee for 275 days during the period of 12 months immediately preceding Oct. 31, 1975 whereas according to the employer he actually worked for 220 days only. The difference between the two computations is due to the circumstance that the workman has included and counted Sundays and other paid holidays as days on which he actually worked under the employee, while the employer has not done so. The question for consideration is whether Sundays and other holidays for which wages are paid under the law, by contract or statute, should be treated as days on which the employee ,actually worked under the employer for the purposes of S. 25-F read with S. 25-B of the Industrial Disputes Act. S. 25-F of the Industrial Disputes Act reads as follows :-
"25-F. No workman employed in any industry who has been in continuous service for not less than one year under an employer shall be retrenched by that employer until -
(a) the workman has been given one months notice in writing indicating the reasons for retrenchment and the period of notice has expired, or the workman has been paid in lieu of such notice, wages for the period of the notice;
................
(b) the workman has been paid, at the time of retrenchment, compensation which shall be equivalent of fifteen days average pay (for every completed year of continuous service) or any part thereof in excess of six months; and
(c) notice in the prescribed manner is served on the appropriate Government for Such authority as may. be specified by the fappropriate Government by notification in the Official Gazette)."
Section 25-B defines and explains what is continuous service as follows :-
"25-B. For the purposes of this Chapter,-
(1) a workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service, including service which may be interrupted on account of sickness or authorised leave or an accident or a strike which is not illegal, or a lock-out or a cessation of work which is not due to any fault on the part of the workman;
(2) where a workman is not in continuous service within the meaning of clause (1) for a period of one year or six months, he shall be deemed to be in continuous service under an employer -
(a) for a period of one year, if the workman, during a period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than -
(i) one hundred and ninety days in the case of a workman employed below ground in a mine; and
(ii) two hundred and forty days, in any other case;
(b) for a period of six months, if the workman, during a period of six calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than -
(i) nin
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