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1993 Supreme(Cal) 346

High Court Of Calcutta
SUSANTA CHATTERJI, NISITH KUMAR BATBYAL
EXECUTIVE ENGINEER, ELECTRICITY DEPT., RURAL DIVISION - Appellant
Versus
SHRI CHANDRAIAH AND 273 WORKMEN (REPRESENTED BY BIJILI KAMGAR UNION) - Respondent
Circuit Rule 33  Of  1991
Decided On : 07/26/1993

Advocates Appeared:
A.K.RAY, A.S.Roy, B.SHIVASARUP

The Electricity Department, Rural Division, Rangat, is an industrial establishment within the meaning of Section 25L of the Industrial Disputes Act, and therefore, Chapter VB of the Act, including Section 25N, is applicable. Retrenchment of workmen without complying with the requirements of Section 25N is illegal and unjustified.

Headnote:

INDUSTRIAL DISPUTES ACT - SECTION 25L - APPLICABILITY - ELECTRICITY DEPARTMENT - INDUSTRIAL ESTABLISHMENT - MANUFACTURING PROCESS - RETRENCHMENT - LEGALITY - CONDITIONS PRECEDENT - COMPLIANCE.

Fact of the Case:

The applicant, the Electricity Department, Rural Division, Rangat, challenged the Award of the Industrial Tribunal, Port Blair, which declared the retrenchment of 273 workmen with effect from April 1, 1989, as illegal, unjustified, and void. The Tribunal held that the retrenchment was not in accordance with Section 25N of the Industrial Disputes Act, which requires prior permission from the appropriate government and notice to the workmen.

Finding of the Court:

The High Court found that the Electricity Department was an industrial establishment within the meaning of Section 25L of the Industrial Disputes Act, as it engaged in the manufacturing process of generating, transforming, or transmitting power. Therefore, Chapter VB of the Act, which deals with lay-off, retrenchment, and closure in certain establishments, was applicable to the applicant.

Issues: 1. Whether Chapter VB of the Industrial Disputes Act is applicable to the Electricity Department, Rural Division, Rangat. 2. Whether the retrenchment of the workmen was legal and justified.

Ratio Decidendi: The High Court held that the Electricity Department was an industrial establishment as defined in Section 25L of the Industrial Disputes Act, and therefore, Chapter VB of the Act, including Section 25N, was applicable. The Court found that the applicant had not complied with the requirements of Section 25N, which rendered the retrenchment illegal.

Final Decision: The High Court dismissed the application under Article 227 of the Constitution of India, upholding the Award of the Industrial Tribunal. The Court held that the retrenchment of the workmen was illegal and unjustified as the applicant had failed to comply with the provisions of Section 25N of the Industrial Disputes Act.

SUSANTA CHATTERJEE, J.

( 1 ) THE present application under Article 227 of the Constitution of India at the instance of the applicant challenges the Award dated May 31, 1991 of the Industrial Tribunal, Port Blair pursuant to the reference dated April 25, 1990 under Section 12 (5) of the Industrial Disputes Act, 1947, since made by the Lt. Governor (Administrator ). Andaman and Nicobar Islands for adjudication of the dispute;"whether the action of the Executive Engineer, Electricity Department, Rural Division, Rangat in retrenching 273 workmen with effect from April 1, 1989 is legal and justified, and if not, to what relief, are the concerned workmen entitled?"

( 2 ) THE Presiding Officer considered three issues: (1) Is the reference maintainable? (2) Were the workmen retrenched as stated by the first party? If so, was the retrenchment with effect from April 1, 1989 legal and justified? (3) To what relief, if" any, are the first party workmen entitled?

( 3 ) ASSIGNING the reasons the Presiding Officer has held that the retrenchment of the workmen with effect from April 1, 1989 is to be declared illegal, unjustified and void. He has held, inter alia, that the workmen numbering 273 cannot be treated to be disengaged from April I, 1989. There has been a direction for publication of the Award in the Official Gazette.

( 4 ) BEING aggrieved the present application has been filed with an application under Section 5 of the Limitation Act for condonation of delay. The Affidavit is sworn on November 20, 1991. A rule was issued on November 22, 1991. The matter appeared before different Benches of the Circuit Court and time to time the part-heard matter has appeared before this Bench and the matter is disposed accordingly.

( 5 ) THE grievance of the applicant is that 273 respondents were daily rated mazdoors and they were all appointed on different dates and engaged for different work in connection with the execution and implementation of Rural Electrification work in the area including Rangal, Bakultala, Yerratta, Kadamtala, Baratang under the jurisdiction of the Executive Engineer (Ru-rai), Electricity Department, Middle Andaman vide Orders No. 18 dated January 4, 1989, No. 25 dated January 5, 1989, No. 26 dated January 5, 1989, No. 27 dated January 5, 1989, No. 28 dated January 5, 1989, No. 29 dated January 5, 1989, No. 112 dated February 1, 1989, No. 121 dated February 2, 1989. No. 126 dated February 3, 1989, No. 173 dated February 21, 1989 of the Executive Engineer (R), Electricity Department, Middle Andaman. A dispute against the alleged retrenchment was raised and Andaman and Nicobar Administration made the reference for effective adjudication by notification No. F75-73/88-Handr dated April 25, 1990. After filing of all statements, and giving full opportunity to both sides, the impugned order was made.

( 6 ) MR. A. S. Ray, the learned Advocate appeansig for the applicant, has argued before us that the impugned Award cannot be sustained in view of the fact that the learned Tribunal has held, inier-alia, that the conditions precedent to the retrenchment of the workmen in the Electricity Department at Middle Andaman are to be made in accordance with S. 25-N of the Industrial Disputes Act. Chapter-VB of Industrial Disputes Act shall apply to an industrial establishment and under Section 25n, no workman who has been in continuous service for not less than one year in an industrial establishment shall be until,- (a) the workman has been given three months 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; and (b) the prior permission of the appropriate Government or such authority as may be specified by that Government by notification in the Official Gazette has been obtained on an application made in this behalf.

( 7 ) ACCORDING to Mr. Ray, the Tribunal has committed a grave error in view of the fact t







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