SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1956 Supreme(SC) 75

SUPREME COURT OF INDIA
11th October, 1956
BHAGWATI, VENKATARAMA AYYAR, S.K. DAS AND GOVINDA MENON, JJ.
Rohtas Industries Ltd., Appellants
VERSUS
Brijnandan Pandey and others, Respondents.
Civil Appeal No. 144 of 1955,
Mr. C.K. Daphtary, Solicitor-General for India, (Mr A B N. Sinha and Mr. B. P. Maheshwari, with him), for Appellants; Mr. S. P. Sinha, Senior Advocate, Mr. R. Patnaik and Mr. A.D. Mathur, Advocates, with him, for Respondents.

The scope of enquiry on an application under S.22 of the Industrial Disputes (Appellate Tribunal) Act, 1950, is to determine whether there is a prima facie case made of the workmen and the employer, his agent or manager was not actuated by any improper motives or did not resort to any unfair practice or victimisation in the matter of the proposed discharge or dismissal of the workmen.

Headnote:

INDUSTRIAL DISPUTES - Discharge of temporary employees - Permission under S.22, Industrial Disputes (Appellate Tribunal) Act, 1950 - Scope of enquiry - Labour Appellate Tribunal dismissing application on ground of completion of erection works - Held, order vitiated by failure to consider other circumstances - Permission granted.

Fact of the Case:

The appellant company, Rohtas Industries Limited, had a number of temporary employees engaged in connection with the extension and enlargement of their factories. The terms of employment stated that the company could discharge the employee at any time without notice, compensation, and giving any reason therefor. As the erection works were completed, the temporary employees were put on a spare list and then discharged. The appellant company applied to the Labour Appellate Tribunal for permission to discharge ninety-six temporary employees, alleging that their services were no longer required. The application was contested by forty-two of the temporary employees, who denied that they were temporary workmen and alleged that they were permanent employees enjoying all the benefits of permanent employees.

Finding of the Court:

The Labour Appellate Tribunal dismissed the application of the appellant company on a finding that the erection works had been completed by the end of 1950 and there was no ground for discharging the ninety-six temporary men. The court held that the Labour Appellate Tribunal did not correctly appreciate the true scope and effect of S.22 of the Act and gave attention to only one point, namely, the completion of erection works, and did not consider the other circumstances put forward on behalf of the appellant in support of their application.

Issues: 1. Whether the Labour Appellate Tribunal correctly appreciated the true scope and effect of S.22 of the Industrial Disputes (Appellate Tribunal) Act, 1950? 2. Whether the Labour Appellate Tribunal erred in giving attention to only one point, namely, the completion of erection works, and did not consider the other circumstances put forward on behalf of the appellant in support of their application?

Ratio Decidendi: 1. The scope of enquiry on an application under S.22 of the Act is to come to a conclusion whether there was a prima facie case made of the workmen and the employer, his agent or manager was not actuated by any improper motives or did not resort to any unfair practice or victimisation in the matter of the proposed discharge or dismissal of the workmen. 2. The Labour Appellate Tribunal failed to consider the real point for determination, namely, whether the appellant company had made out a prima facie case for the proposed discharge, and whether they were resorting to any unfair practice or victimisation in the matter of the proposed discharge.

Final Decision: The appeal was allowed, the decision of the Labour Appellate Tribunal dated 25-9-1953 was set aside, and permission was granted to the appellant to discharge ninety-six temporary workmen.

Judgement

S. K. DAS J. - This is an appeal by special leave from a decision of the Labour Appellate Tribunal, Calcutta, dated 25-9-1953. The relevant facts lie within a narrow compass. On 4-5-1953 the appellant, the Rohtas Industries Limited, Dalmianagar, made an application to the said Labour Appellate tribunal under S.22, Industrial Disputes (Appellate Tribunal) Act, 1950 (48 of 1950), hereinafter referred to as the Act, for permission to discharge ninety-six temporary employees in the following circumstances.

The appellant company have a number of factories at Dalmianagar including a cement factory, power house, pulp mill, paper factory, chemical factory, factory for manufacture of certain acids and an asbestos cement factory. The company had a number of temporary employees who were engaged temporarily in connection with certain works for the extension and enlargement of those factories. The terms of employment of these employees were embodied in a temporary appointment form, which was signed by the employees as well as the management. The said terms stated, inter alia, that

"the company could discharge the employee at any time without notice, compensation and giving any reason therefor, whether on completion of the work on which the employee was engaged or earlier";

The terms also made it clear that whether the employee was on the same job or some other job, in the same department or some other, either on temporary work or permanent work, he would remain a temporary employee until the Work Manager issued a written letter expressly making him a permanent employee. As and when the various erection works were completed, the temporary employees were first put on a list of spare men and then discharged. Some time prior to 3-7-1952, sixty-nine of the temporary employees were spared for being discharged.

The names of these sixty-nine employees were given in two lists, Appendix A and Appendix B. It was alleged that on 3-7-1952, a number of these employees headed by one Brij Nandan Pandey entered the office of Shri L.C.Jain, Manager of the Cement Factory, and Brij Nandan Pandey assaulted the Manager. A serious situation resulted from that incident and the company stopped the sixty-nine temporary employees from coming to their factories or to their Labour Office and issued a notice to them stating that the company were applying to the Industrial Tribunal for permission to terminate their services. At that time an industrial dispute relating to, among other things, the payment of bonus to the employees was pending adjudication in the Court of the Industrial Tribunal, Bihar.

On 5-7-1952, the appellant company made an application to the said Tribunal for permission to discharge the sixty-nine employees. The application was made under S.33, Industrial Disputes Act, 1947. On 12-7-1952, forty nine out of the said sixty-nine employees made an application, under S.33-A, Industrial Disputes Act, to the Chairman, Industrial Tribunal, Bihar, on the allegation that the appellant company had discharged sixty-nine employees on 5-7-1952 and had there by contravened S.33, Industrial Disputes Act, 1947. On 20-8-1952 3 thirty six more temporary employees were put on the spare list and an application was made to the Industrial Tribunal, Bihar, for including these thirty-six persons also in the application which had been made for permission to discharge the temporary men; thus, all told, the application related to one hundred and five temporary men.

The case of the appellant company was that of the completion of the erection works for which these temporary men were originally employed was a gradual process and so far as the Cement Factory erection work was concerned, it was completed by the end of March 1952 except for certain minor additions and alterations. Therefore, the appellant company no longer required the services of the temporary employees and they were put on the spare list as and when their services were no longer required.

2. The two applications
































Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top