High Court Of Calcutta
Nikhil Nath Bhattacharjee
STEEL AUTHORITY OF INDIA LTD. - Appellant
Versus
NINTH INDUSTRIAL TRIBUNAL - Respondent
C. O. 8308 (W) Of 1993
Decided On : 07/31/1996
INDUSTRIAL DISPUTES ACT, 1947 - SECTION 25-F - RETRENCHMENT - SECURITY PERSONNEL - CENTRAL INDUSTRIAL SECURITY FORCE ACT, 1968 - OPTION FOR ABSORPTION - NOTICE OF TERMINATION - PAYMENT OF COMPENSATION - VALIDITY OF RETRENCHMENT - AWARD OF INDUSTRIAL TRIBUNAL SET ASIDE.
Fact of the Case:
The petitioner, Durgapur Steel Plant, challenged the award of the Industrial Tribunal upholding the retrenchment of Respondent No. 3, a security guard, from the company's security force. The company had opted to wind up its security department and transfer security duties to the Central Industrial Security Force (CISF) under the Central Industrial Security Force Act, 1968. Security personnel were given the option to join the CISF or face retrenchment. Respondent No. 3 did not exercise his option for absorption in the CISF and was served with a notice of termination of employment effective from August 17, 1970, along with retrenchment compensation. However, the Tribunal found that the retrenchment was illegal and improper and directed the company to absorb the workman in an unskilled grade.
Finding of the Court:
The High Court found that the Tribunal's award was perverse and based on false premises. The company had complied with the provisions of Section 25-F of the Industrial Disputes Act, 1947, by serving the workman with a notice of termination and paying him retrenchment compensation. The Tribunal's finding that the retrenchment was effective from August 3, 1970, instead of August 17, 1970, was not supported by the evidence. The Tribunal also erred in directing the company to absorb the workman in an unskilled grade, as there was no evidence of any promise by the company to provide alternative employment to those who did not opt for absorption in the CISF.
Issues: 1. Whether the retrenchment of Respondent No. 3 was valid and in accordance with the provisions of Section 25-F of the Industrial Disputes Act, 1947? 2. Whether the Tribunal erred in finding that the retrenchment was illegal and improper? 3. Whether the Tribunal was justified in directing the company to absorb the workman in an unskilled grade?
Ratio Decidendi: 1. The High Court held that the retrenchment of Respondent No. 3 was valid and in accordance with the provisions of Section 25-F of the Industrial Disputes Act, 1947. The company had served the workman with a notice of termination and paid him retrenchment compensation, and there was no evidence to support the Tribunal's finding that the retrenchment was effective from August 3, 1970, instead of August 17, 1970. 2. The High Court held that the Tribunal erred in finding that the retrenchment was illegal and improper. The company had complied with the provisions of Section 25-F of the Industrial Disputes Act, 1947, and there was no evidence of any promise by the company to provide alternative employment to those who did not opt for absorption in the CISF. 3. The High Court held that the Tribunal was not justified in directing the company to absorb the workman in an unskilled grade. There was no evidence of any promise by the company to provide alternative employment to those who did not opt for absorption in the CISF, and the Tribunal's order was beyond the scope of the reference.
Final Decision: The High Court set aside and quashed the award of the Industrial Tribunal. The writ application filed by the company was allowed.
( 1 ) IN this writ application the petitioner has challenged the award dated April 28, 1983 made by the learned Judge, Ninth Industrial Tribunal at Durgapur in case No. X-27/80.
( 2 ) THE petitioner's case is that the Steel Plant, known as Durgapur Steel Plant belongs to the petitioner where various categories of workmen including security staff were employed. The conditions of service of security staff were governed by the Hindusthan Steel Security Force (Discipline and Appeal) rules. On December 22, 1968, the parliament enacted the Central Industrial Security Force Act, 1968 and the said Act was brought into force in Durgapur Steel Plant on August 8, 1969. After the said Act was enforced in the Durgapur Steel Plant, its security force was necessarily to be wound up. It was actually taken over by the authority under the said Act with effect from August 17, 1970. The security force personal were, however, given option to join the Central Industrial Security Force constituted under the said Act. The petitioner issued appropriate notices and circulars on and from August 8, 1969 notifying the said facts to all members of the security force of the company and they were called upon to exercise option by August 16, 1969 filling in the application form enclosed therewith and returning the same in the office of the personnel manager of the petitioner. In the aforesaid circulars it was, inter alia, laid down that those of the members of the dissolved security force of Durgapur Steel Plant who would not exercise option in favour of absorption in the CISF would not be retained by the company and they would be relieved and paid retrenchment compensation under the law.
( 3 ) RESPONDENT No. 3 a senior security guard did not exercise his option for absorption in the CISF even within the extended time valid upto August 10, 1970 and accordingly, the petitioner by a notice dated August 12, 1970 terminated his service w. e. f. the afternoon of August 17, 1970. All the legal dues including 3 months pay in lieu of notice and 15 days average pay for every completed year of service was sent to Respondent No. 3 by a Bank Draft. On the same date a P. Form duly filled in was sent to the Labour Commissioner, Govt. of West Bengal as required under Section 25-F (c) of the Industrial Disputes Act, 1947 read with Rule 77 of the West Bengal Industrial Disputes Rules. Because of introduction of the CISF which took over the security duties so long performed by the company's security department, the services of the Respondent No. 3 along with others who had not opted for absorption in the CISF had to be retrenched and the retrenchment was made on the legal and justifiable grounds after complying with the provisions of Section 25-F of the Industrial Disputes Act.
( 4 ) HOWEVER, the Govt. of West Bengal in its Labour Department by an order dated September 22, 1980 referred a purported industrial dispute to the Ninth. Industrial Tribunal for adjudication on the issue. Whether Md. S. Khan, ex-security man of Durgapur Steel Plant has been properly and legally retrenched? To what relief, if any, is he entitled to?" Written statements and rejoinders were submitted before the Tribunal. In the original written statement for Respondent No. 3 it was not averred that he had opted for absorption in the CISF. It was only after the company filed its written statement stating inter alia that Respondent No. 3 had not exercised option for CISF that the Respondent, No. 3 raised the plea that he had opted for CISF and prayed that his written statement might be amended and he filed an amended written statement. During the hearing on merits the petitioner company filed documents which were marked exhibits. Respondent No. 3 examined himself and the petitioner company examined 3 witnesses. The learned Tribunal Judge after hearing the parties passed his impugned award on April 20, 1983 wherein he found that actual retrenchment was done on August 3, 197
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