High Court Of Calcutta
G.N. Ray, J.
Naresh Chandra Das – Appellant
Versus
Seventh Industrial Tribunal – Respondent
Decided On: September 23, 1981
RETrenchment - TERMINATION OF SERVICE - AUTOMATIC TERMINATION - STANDING ORDERS - SECTION 2 (OO) OF THE INDUSTRIAL DISPUTES ACT - SECTION 25 F OF THE INDUSTRIAL DISPUTES ACT - FACT OF TERMINATION - INTERPRETATION - INDUSTRIAL TRIBUNAL AWARD - INDUSTRIAL DISPUTES ACT - INTERPRETATION OF STATUTES - LABOR LAW - RETrenchment - SECTION 2 (OO) OF THE INDUSTRIAL DISPUTES ACT - TERMINATION OF SERVICE - STANDING ORDERS - AUTOMATIC TERMINATION - INTERPRETATION - INDUSTRIAL TRIBUNAL AWARD - INDUSTRIAL DISPUTES ACT - INTERPRETATION OF STATUTES - LABOR LAW
Fact of the Case:
The petitioner, a workman, challenged the termination of his service by the respondent company, alleging that it was illegal and unjustified. The company contended that the petitioner's name was struck off from the muster roll in accordance with the certified standing orders of the company, and that a letter of termination was sent to the petitioner's last known address. The Industrial Tribunal held that the management was justified in terminating the petitioner's service for his unauthorized absence without any intimation.
Finding of the Court:
The court held that the termination of service, by whatever process it is made, is retrenchment within the meaning of Section 2(oo) of the Industrial Disputes Act, and that the company was required to comply with the provisions of Section 25F before effecting the termination. The court also held that the termination of service, even if justified under the standing orders of the company, remained termination within the meaning of Section 2(oo), and that the petitioner was entitled to reinstatement with full back wages.
Issues: Whether the termination of service of the petitioner was retrenchment within the meaning of Section 2(oo) of the Industrial Disputes Act. Whether the company was required to comply with the provisions of Section 25F before effecting the termination. Whether the termination of service, even if justified under the standing orders of the company, remained termination within the meaning of Section 2(oo).
Ratio Decidendi: The court interpreted Section 2(oo) of the Industrial Disputes Act broadly, holding that the fact of termination is the most important consideration, and not the process or ground of such termination. The court held that whatever may be the reasons for bringing about the termination, the termination becomes retrenchment within the meaning of Section 2(oo).
Final Decision: The court set aside the Industrial Tribunal's decision and directed the respondent-company to pay the petitioner all back wages. The court also allowed the company to terminate the petitioner's service in view of his continued absence without leave, but only after complying with the provisions of Section 25F of the Industrial Disputes Act.
1. THIS Rule is directed against an award made by the Seventh Industrial Tribunal, West Bengal dt. Mar. 18, 1977 in case No. VIII-260/76 in a reference under the Industrial Disputes Act by the Labour department, Government of West Bengal vide Order No 3900-IR/ir/10-L-185/76 dt. 7th of Aug., 1976.
2. THE petitioner contends that he was a workman working as a permanent hand in the factory of respondent 2. M/s. Harbanslal malhotra and Sons (P) Ltd., until his service was terminated by the said respondent 2. It is contended by the petitioner that he was continuing in service under the said company for more than 14 years since Feb. . 1960. It appears that the State Government made a reference to the Industrial Tribunal for adjudication of the following issues "whether termination of service of Sri naresh Chandra Das is justified? to what relief, if any, is he entitled?"
It appears that the petitioner submitted his written statement before the learned industrial Tribunal challenging the termination of service as illegal and unjustified and prayed for reinstatement with full back wages and amenities due to him for the period of his forced unemployment. The company also filed a written statement-in-,reply to the petitioner's written statement and it was contended inte alia by the company that the name of the petitioner-workman was struck off from the Muster roll of the factory in accordance with S. O. cl. (6) (4) (a) of certified standing orders of the company. It was also stated by the company that the company sent a letter date 27th August, 1974 to the workman by registered post with and to the last known add ess, but the said letter came back with the postal remark "left" and only on 23rd september, 1974 the workman's father turned up when a copy of the letter of termination was handed over to him.
3. IT appears that the learned Industrial tribunal passed its award on 18th March, 1977 and the said award was published by the Government of West Bengal, Labour department by order dated 22nd April, 1977 and the said award is Annexure ''d" of the writ petition. The learned Seventh Industrial tribunal held that the management was justified in terminating the service of the petitioner for his unauthorised absence without any intimation and as such, he was not entitled to any relief whatsoever.
4. IT is contended by the petitioner in the instant Rule that termination of service, by whatever process it is made, is retrenchment within the meaning of S. 2 (oo), of the industrial Disputes Act, and as the conditions laid down u/s. 25 F. of the I D Act were not complied with by the company, the workman was entitled to reinstatement with full back wages.
Mr. Partha Sarathi Sen Gupta, learned counsei appearing for the petitioner workman submits that retrenchment as appearing in S. 2 (oo) of the Industrial Disputes Act, is very wide in its implication and the supreme Court has interpreted S. 2 (oo) of the I. D. Act, in clear and unambiguous terms the decision made in the case of stat Bank of India v. N. Sundara Money, reported in [1976-I L L. J. 478] It has been decided in the said case that breakdown of s. 2 (oo) unmistakably expands the semantics of retrenchment. "termination. . . . . . . . . for any reasons whatsoever " are the key words. Whatever the reason, every termination spells retrenchment. Termination embraces not merely the act of the termination by the employer but the fact of termination, however, produced. It has also been held by the Supreme Court that if the provision of s. 25 F is not complied with in effecting retrenchment it becomes illegal and void.
5. MR. Sen Gupta contends that even assuming that under the provisions of the standing order of the company, the company was entitled to terminate the service of the petitioner for his continued absence for the specified period without leave of the company, it cannot be held that the said action of the petitioner-company is not termination within the meaning of S. 2 (oo ). H
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