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1996 Supreme(Pat) 798

PATNA HIGH COURT
M.Y.Eqbal, J.
Hindustan Copper Limited
Versus
Ministry Of Labour, Govt.Of India
Civil Writ Jurisdiction Case No. 2305 of 1995 ;
Decided On : DECEMBER 9, 1996

Section 25-O of the Industrial Disputes Act is a self-contained provision and once permission is granted by the Government, the workmen are entitled to compensation under sub-section (8) and not re-employment.

Headnote:

INDUSTRIAL DISPUTES ACT - SECTION 25-O - CLOSURE OF INDUSTRIAL ESTABLISHMENT - CONDITION FOR ADJUSTMENT OF WORKMEN - VALIDITY - Held, the condition imposed by the Government in the impugned order for giving employment to 38 workmen cannot be sustained in law. Section 25-O does not cast a duty on the industrial undertaking for re-employment of the employees in case permission for the closure of the industry is granted under the said provision.

Fact of the Case:

The petitioner, a Government of India undertaking, applied for permission to close its Lapso Kyanite Mines due to losses and exhaustion of reserves. The Government granted permission subject to the condition that 38 workmen be adjusted in other units of the petitioner. The petitioner challenged the condition, arguing that it was beyond the scope of Section 25-O of the Industrial Disputes Act.

Finding of the Court:

The Court held that Section 25-O is a self-contained provision and once permission is granted by the Government, the workmen are entitled to compensation under sub-section (8) and not re-employment. The Court further held that the condition imposed by the Government was not in consonance with Section 25-H of the Act, which deals with re-employment of retrenched workmen.

Issues: Whether the Government can impose a condition for adjustment of workmen in other units while granting permission for closure of an industrial establishment under Section 25-O of the Industrial Disputes Act.

Ratio Decidendi: The Court held that Section 25-O of the Industrial Disputes Act is a self-contained provision and once permission is granted by the Government, the workmen are entitled to compensation under sub-section (8) and not re-employment. The Court further held that the condition imposed by the Government was not in consonance with Section 25-H of the Act, which deals with re-employment of retrenched workmen.

Final Decision: The Court allowed the writ petition and set aside the condition imposed by the Government in the impugned order for giving employment to 38 workmen.

Judgment

M. Y. Eqbal, J.

1. In t his writ application the petitioners prayed for issuance of an appropriate writ declaring that the appropriate Government, herein the Government of India, Ministry of Labour, having granted permission for closure of the Lapso Kyanite mines of the petitioners and assigning reasons, imposing condition for such closure is beyond the scope of Section 25 of the Industrial Disputes Act (hereinafter referred to as the "said act" ). In other words the petitioners sought for a declaration that the petitioners having closed down the mines, the condition imposed by the appropriate Government to adjust/absorb 38 workmen elsewhere is beyond the scope of Sec.25 of the said Act. Such an order communicated to the petitioners on 14th July, 1995 under section 25-R of the said Act is Annexure 9 to the writ application.

2. Petitioner No.1 is a Government of India undertaking carrying on mines business. The petitioners have various mines. The petitioners case is that over the past 65 years in Lapso kyanite Mine being naturally purified highgrade floating kyanite is lying scattered over the foothill of the area. The mining of institu kyanite occurring lensoids in the hills are also undertaken. Kyanite of the petitioners mine was of highest grade available in India and abroad. However, last decade the reserves of floating kyanite has practically exhausted as the main fields have been mined as a result the quality of the kyanite degraded. The mining was then restricted to hills and the approximate reserves of insite kyanite in hills is estimated at 18,000 M. Tonnes only. This reserves consisted of poor-graded kyanite which do not have much demand. Cost effective substitutes are being used in large quantities by refractory manufacturers. According to petitioners the good grade kyanite became no longer available in the country. The petitioners further case was that as a result of above reasons Lapso Kyanite mines of petitioner No.1 was incurring losses over the years and the project was no more commercially viable. The company was, therefore, left with no other option but to go for closure of Lapso kyanite Mines. The petitioners company applied to the Secretary, government of India, Ministry of Labour, New delhi, on 20th August, 1993 under Sec.25 of the Industrial Disputes Act, 1947, for proposing to close down the lapso Kyanite Mines at Galudih, Dis-trict-Singhbhum West with effect from the close of the working hours from 30th November, 1993. In the said application it was also mentioned that in the roll there were 738 workmen in the mines. The voluntary retirement scheme was introduced in the company with effect from 1-4-1993 and most of the workmen at Lapso Kyanite Mines had opted for voluntary retirement and left the job after receiving necessary payment under the voluntary retirement scheme. As on date there were only 38 workmen at Lapso Kyanite Mine whose services will be terminated on account of closure of the mine. It was also mentioned in the said application that in the event of approval for closure being granted, the workmen shall be entitled to compensation as specified in that section. On receiving such application the communication was made from the ministry of Labour, Government of india, fixing 27-9-1993 for a meeting in the chamber of Ministry of Labour. Concerned workmen, Management and representative of the Union were requested to attend the same. The Ministry of Labour issued an order communicated by Telex message to the chairman-cum-Managing Director of petitioners company that application dated 21st August, 1993 received in the ministry seeking permission of the government for closing down the lapso Kyanite Mine was considered and after hearing the parties permission of the Government was granted for closure of the Industrial Establishment with effect from 30-11-1993, subject to condition that 38 workmen in the establishment will be adjusted in the other units of the petitjoners-company. The said or





























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