Karnataka High Court
WORKMEN OF DAVANAGERE COTTON MILLS LTD - Appellant
Versus
PRESIDING OFFICER, INDUSTRIAL TRIBUNAL - Respondent
Decided On : 01-02-73
W.P. : 1102 of 1908
retrenchment - Industrial Disputes Act - S. 25f - Summary of the acts and sections referenced and discussed by the court: The court discussed the provisions of S. 25f of the Industrial Disputes Act, which mandates the conditions for retrenchment of workmen. The court analyzed the interpretation of the section and its application to the retrenchment of 77 workmen, focusing on the requirement of payment in lieu of notice and retrenchment compensation. The court also considered previous Supreme Court rulings on similar provisions and their relevance to the present case.
Fact of the Case:
The writ petition challenged an award made by the Industrial tribunal in an industrial dispute regarding the retrenchment of 77 workmen and the dismissal of six workmen for misconduct. The Tribunal rejected the case of the workmen on both matters.
Finding of the Court:
The court found that the reasons for retrenchment were bona fide and justifiable, and the retrenchment was held to be valid. The court also upheld the dismissal of the six workmen for misconduct, rejecting the argument of lack of evidence in support of the charges.
Issues: The issues before the court were the validity of the retrenchment under S. 25f of the Industrial Disputes Act and the dismissal of the six workmen for misconduct.
Ratio Decidendi: The court's decision was based on the finding that the retrenchment and the payment of wages in lieu of notice and retrenchment compensation constituted a single transaction, and the conditions of S. 25f were satisfied. The court also emphasized the assessment of evidence and inference in the dismissal of the six workmen for misconduct.
Final Decision: The writ petition was dismissed, upholding the award of the Industrial tribunal.
( 1 ) THIS writ petition by the Workmen of the Davanagere Cotton Mills ltd. , represented by the Davanagere Cotton Mills Employees' Association, is directed against an award dt. !2th July, 1967 made by the Industrial tribunal in Mysore at Bangalore in Industrial Dispute 145 of 1966 referred to it by the State Government. The contesting respondent is the 2nd respondent, the Management of the Davanagere Cotton Mills Ltd. , represented by its Secretary.
( 2 ) THOUGH several points of dispute were considered by the Tribunal, the only two matters pressed before us for consideration by Mr. Byra reddy, Advocate General, on behalf of the petitioners are (1)the retrenchment of 77 workmen on 20th June, 1966 and (2) the dismissal for misconduct of six workmen after a disciplinary enquiry held by the Management. On both these matters, the Tribunal has rejected the case of the workmen.
( 3 ) REGARDING the retrenchment, the admitted facts are that consequent upon a change effected by the Management in the pattern of production and end products of the Mills, 77 workmen in the Keeling Department were found to be surplus and that the said 77 reelers were retrenched from service on 20th June 1966. When the workmen presented themselves for work on the morning of the said day they were served with notices stating that for the above reason they had become surplus and that therefore they were retrenched from service in accordance with S. 25f of the Industrial Disputes Act. The notice further stated that they would be paid one month's wages in lieu of notice as provided by the said section and they were directed to draw wages together with compensation and other statutory dues at the Managing Agent's Office, Chitradurga Road, during working hours on the said day or any day thereafter. Each such notice was accompanied by a statement of calculation of retrenchment compensation payable to such worker giving full particulars, at the foot of which was the text of recent to be signed by the workman concerned. Some of the workmen received all payments on the same day, viz. , 20th june, 1966, and some later. It is admitted before us that all the 77 persons received payment within a period of about one month from the date of retrenchment. It is also found stated in para 9 of the Award of the Tribunal, and not disputed before us, that 57 out of 77 retrenched workmen accepted the retrenchment and the compensation, and filed affidavits before the Tribunal stating that they had no dispute with the Management in that behalf. Though it was suggested that there might be some element of coercion behind these affidavits, the Tribunal did not accept the said suggestion because the affidavits had been sworn to before a magistrate and the deponents were identified by a local Pleader before the magistrate.
( 4 ) THE Tribunal found that the reasons stated by the Management for the retrenchment were bona fide and justifiable in the circumstances of the case. That is a finding of fact which cannot be questioned before us, nor has it been questioned.
( 5 ) THE only point that was strongly urged in this regard was that the retrenchment was demonstrably in contravention of the mandatory provisions of S. 25f of the Industrial Disputes Act. The said section reacts as follows :"25f. 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 month's 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; provided that no such notice shall be necessary if the retrenchment is under an agreement which specifies a date for the termination of serviice;" (b) the workman has been paid , at the time of retrenchment, compensation which shall be equivalent to fifteen days' average pay for every completed year of c
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