1966 Supreme(AP) 185
Andhra Pradesh High Court
Judges : KRISHNA RAO
Eluru Electric Supply Corporation, Ltd., Eluru, by its Managing Agents - Appellant
Versus
Tuluri Satyam - Respondent
Decided On : 09-13-66
The Special Officer appointed under the Andhra Electricity Supply Undertakings Acquisition Act, 1954 had jurisdiction to determine the claims of the employees for retrenchment compensation under section 25-FF of the Industrial Disputes Act, 1947.
Headnote:
INDUSTRIAL DISPUTES ACT - RETRENCHMENT COMPENSATION - JURISDICTION OF SPECIAL OFFICER - ESTOPPEL - PROVISOS TO SECTION 25-FF - LIABILITY OF EMPLOYER - INTEREST ON COMPENSATION - CROSS-OBJECTIONS - MAINTAINABILITY.
Fact of the Case:
The Eluru Electric Supply Corporation was taken over by the Andhra Pradesh Government under the Andhra Electricity Supply Undertakings Acquisition Act, 1954. The employees of the Corporation filed applications for payment of retrenchment compensation under section 25-FF of the Industrial Disputes Act, 1947. The Special Officer appointed under the Andhra Act granted compensation to the employees. The Corporation challenged the jurisdiction of the Special Officer and raised various other objections to the payment of compensation.
Finding of the Court:
The High Court held that the Special Officer had jurisdiction to determine the claims of the employees for retrenchment compensation. The Court also held that the employees were not estopped from claiming compensation, that the provisos to section 25-FF of the Industrial Disputes Act were not attracted, and that the liability to pay compensation rested upon the Corporation and not upon the Government. The Court further held that the Special Officer had no power to award interest on the compensation amount.
Issues: 1. Whether the Special Officer had jurisdiction to determine the claims of the employees for retrenchment compensation. 2. Whether the employees were estopped from claiming compensation. 3. Whether the provisos to section 25-FF of the Industrial Disputes Act were attracted. 4. Whether the liability to pay compensation rested upon the Corporation or upon the Government. 5. Whether the Special Officer had the power to award interest on the compensation amount.
Ratio Decidendi: 1. The provisions of section 11 of the Andhra Act empowered the Special Officer to inquire into the claims of the employees and determine the persons who were entitled to the compensation amount. The Special Officer also had the power to determine whether the employees satisfied the requirements of section 25-FF of the Industrial Disputes Act. 2. The letters executed by the employees on the day before the Government took over the undertaking did not cover the claim for retrenchment compensation and hence there was no estoppel. 3. The new conditions of service under the Government were less favourable to the employees than those under the Corporation and hence the provisos to section 25-FF of the Industrial Disputes Act were not attracted. 4. Section 6 of the Andhra Act only provided for the transfer of liability inter se between the Corporation and the Government and did not affect the liability of the employer under the Industrial Disputes Act to pay retrenchment compensation to the employees. 5. The provisions of section 34 of the Civil Procedure Code were not applicable to special tribunals like the Special Officer and hence the Special Officer had no power to award interest on the compensation amount.
Final Decision: The Court dismissed the appeals filed by the Corporation and the cross-objections filed by the employees.
( 2 ) THE appellant Corporation s undertaking, was taken over by the Andhra pradesh Government on 10th December, 1960, under the provisions of the Andhra electricity Supply Undertakings Acquisition Act (XV of 1954) (hereinafter referred to as the Andhra Act ). Thereupon, the State Government deposited compensation to the tune of over Rs. 10 lakhs on basis (A) contemplated by the said Act to be paid to the Corporation in view of the said acquisition. The respondents who were provisionally absorbed into the service of the State Government filed applications for payment to them, out of the aforesaid sum deposited, compensation in lieu of one month s notice under section 25-F and retrenchment compensation under section 25-FF of the Industrial Disputes Act (XIV of 1947) (hereinafter referred to as the Central Act ). One set of applications, i. e. , O. P. Nos. 66 to 78, 80 to 82 and 86 of 1961, out of which C. M. A. Nos. 228 to 244 of 1962 arise, were disposed of on 18th December, 1961, by a common judgment by the District Judge, west Godavari, Sri M. Ramamurti who was appointed as a Special Officer, under the provisions of the Andhra Act, granting compensation as claimed by the employees while the second batch of O. P. Nos. 64 to 73 and 77 of 1962, out of which C. M. A. Nos. 370 to 380 of 1963 arise, were disposed of by the District Judge, West Godavari sri Nandagiri Venkatarao, by his order dated 8th August, 1963, granting compensation to the employees as prayed for. As common questions ate involved in the two batches of appeals, I propose to dispose of them by a common judgment. Sri Kuppuswami, the learned Counsel for the appellant in all the appeals, raised the following five points: (1) The Special Officer has no jurisdiction to determine the retrenchment compensation claimed under section 25-FF of the Central Act. (2) The employees respondents are estopped from claiming the retrenchment compensation in view of certain documents executed by them in favour of the corporation. (3) The employees are not entitled to the retrenchment compensation because the provisos to section 25-FF of the Central Act are attracted. (4) The claim of the employees is only against the Government consequent on the acquisition, and that the Corporation ceased to be liable for any such claim. (5) The award of interest on the compensation amount from the date of the application till the date of payment is not warranted by any provisions of law.
( 3 ) ON this question of jurisdiction, both the Special Officers who decided the petitions came to the conclusion that they have got jurisdiction to determine the claims of the employees for retrenchment compensation. Sri N. Ramamohan Rao, the learned Counsel for the respondents argued that the provisions of of section 11 (10) of the Andhra Act empowering the Special Officer to inquire into the claims of the employees is wide enough to confer jurisdiction on the Special officer for determining the claim in question and that the Special Officer can incidentally consider whether the employee satisfies the requirements of the provisions of the Central Act in order to entitle him to the said amount. The relevant provisions of the two Acts are as follows : section 11 (9) of the Andhra Act reads as follows :"every person claiming any amount deposited in the Bank under the foregoing sub-sections or any portion thereof, shall apply to the Special Officer appointed by the Government in this behalf, within three months from the date of the deposit or within such further time as the Special Officer may allow. 11 (10) (a)-"the Special Officer shall, as expenditiously as possible, inquire into all claim made under sub-sec