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2018 Supreme(SC) 373

SUPREME COURT OF INDIA
R.K. Agrawal, Abhay Manohar Sapre, JJ.
Paradeep Phosphates Limited – Appellant
Versus
State of Orissa & Ors. – Respondents
Civil Appeal Nos. 3997-3998 of 2018 (Arising out of Special Leave Petition (C) Nos. 35347-35348 of 2016)
Decided On : 19-04-2018

Advocates:
Advocate Appeared:
For the Appellants : Snehal Kakrania, Pratik Kumar, Ms. Anushka Sarda for M/s. Khaitan & Co.
For the Respondents: C.S.N. Mohan Rao, Aditya Kumar, B. Kanti, Sanjay R. Hegde, S.S. Pratap, Sachin Das, Azim H. Laskar, Chandra Bhushan Prasad, Som Raj Choudhury, Prashant Kumar

IMPORTANT POINTS
Beneficial law should be construed liberally.
Unilateral withdrawal of enhanced age of retirement amounts to contravention of Section 9A, Industrial Disputes Act, 1947.

Headnote:(a) Interpretation of statute – Beneficial law – Should be construed liberally. (Para 11)

       (b) Service law – Age of superannuation – An integral part of service condition of employees – Enhancement of superannuation age would impliedly amount to a privilege. – Enhancement of retirement age temporary and for a purpose – Yet, before rolling it back employees ought to be given a hearing – Any unilateral withdrawal of such privilege – Amounts to contravention of Section 9A, Industrial Disputes Act, 1947 – Such act of the employer bad in law. (Para 13, 14, 16)

       Facts of the case:

       Government of India on 19.05.1998 decided to temporarily enhance the age of retirement of all Central Public Sector Employees from 58 years to 60 years. Pursuant to the said order the appellant-Company implemented the said order in the Company with retrospective effect from 27.05.1998.

       On 17.07.2002, the appellant-Company withdrew the earlier office order dated 19.11.1998 and restored the age of retirement to 58 years in respect of all the employees in terms of Certified Standing Orders and Services Rules of the appellant-Company.

       The Trade Union raised dispute with regard to the above. The Industrial Tribunal invalidated the action of the appellant-Company of rolling back the age of retirement from 60 years to 58 years due to contravention of Section 9A of the Act which says prior notice must be given to the employees by the employer.

       The Division Bench of the High Court dismissed the writ petition and held, inter alia, that there was no error apparent in the decision of the Industrial Tribunal. Thereafter, the appellant-Company also preferred a review petition but the same again got dismissed.

       Finding of the Court:

       Beneficial law should be construed liberally.

       Unilateral withdrawal of enhanced age of retirement amounts to contravention of Section 9A, Industrial Disputes Act, 1947.

       Result: Appeals dismissed.

JUDGMENT :

R.K. Agrawal, J.

Leave granted.

2. The above appeals have been preferred against the impugned common judgments and orders dated 30.08.2016 and 06.10.2016 passed by the High Court of Orissa in WPC No. 9180 of 2010 and RVWPET No. 236 of 2016 respectively whereby the Division Bench of the High Court dismissed the appeal and the review petition filed by the appellant herein while upholding the decision dated 17.04.2010 passed by the Industrial Tribunal, Bhubaneswar in I.D. Case No. 16 of 2003.

3. Brief facts:-

(a) In the year 1981, the appellant-Company was incorporated as a joint venture between the Government of India and Republic of Nauru with an objective to manufacture Di-Ammonium Phosphates.

(b) Later on, in the year 1993, the Republic of Nauru disinvested its entire equity stake to the Government of India and the appellant-company became a wholly owned Public Sector Undertaking of the Government of India having its corporate and registered office at Bhubaneswar.

(c) Due to deteriorating financial position of certain Public Sector units, the Government of India on 19.05.1998 decided to temporarily enhance the age of retirement of all Central Public Sector Employees from 58 years to 60 years with a view that the same may help industries to cut down their losses. Pursuant to the said order dated 19.05.1998, the appellant-Company implemented the said order vide order dated 19.11.1998 in Company with retrospective effect from 27.05.1998.

(d) Inspite of the enhancement of retirement age, the financial performance of the appellant-Company still not improved. As a result, the Government of India issued an Office Memorandum dated 22.08.2001 to all Central Public Undertakings including the appellant intimating its decision to roll back the age of retirement of all the employees of Public Sector Undertaking from 60 years to 58 years. Before this Memorandum, the Government of India, on 08.06.2000, had advised the appellant-Company to review the decision on enhancement of age of retirement. However, the appellant-Company did not take any decision on the said advisory.

(e) In the meanwhile, the Government of India, on 28.02.2002, divested its 74% shareholding in the appellant company in favour of one M/s Zuari Maroc Phosphates Ltd. ("Zuari"), thereby, keeping only 26% shareholding in its favour. As per the share holding agreements, under Clause 7.2 (j) it was provided that all the decisions taken by the Board of Directors of the appellant-Company, prior to the date of the disinvestment, shall be binding on all concerned.

(f) On 17.07.2002, the appellant-Company, by office order, withdrew the earlier office order dated 19.11.1998 and restored the age of retirement to 58 years in respect of all the employees in terms of Certified Standing Orders and Services Rules of the appellant-Company.

(g) Being aggrieved, the Trade Union raised dispute with regard to the above and as a consequence of the same, the Government of Orissa, Labour and Employment Department made Reference under Section 12 read with Section 10 of the Industrial Disputes Act, 1947 (in short "the Act") to the Industrial Tribunal, Bhubaneswar. The Industrial Tribunal, vide order dated 17.04.2010, disposed off the Reference and invalidated the action of the appellant-Company of rolling back the age of retirement from 60 years to 58 years due to contravention of Section 9A of the Act which says prior notice must be given to the employees by the employer which the employer intentionally omitted to give in the present case.

(h) Being dissatisfied, the appellant-Company challenged the decision of the Industrial Tribunal by way of filing writ petition in the High Court of Orissa. The Division Bench of the High Court, vide order dated 30.08.2016, dismissed the writ petition and held, inter alia, that there was no error apparent in the decision of the Industrial Tribunal. Thereafter, the appellant-Company also preferred a review petition but the same again got dismissed vide order dated























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