SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1963 Supreme(Guj) 90

Gujarat High Court
Judgename :N.M.MIABHOY, M.U.SHAH
AMBALAL SHIVLAL - Appellant
Versus
D.M.VIN - Respondent
S.C.A. 803 of 1961
Decided On : 10/03/1963

Advocates Appeared: C.T.DAN, V.PREMCHAND

Headnote:

Constitution of India –Articles 226 and 227 –Industrial Disputes Act 1947 –sec. 25p,33c, 7, 7-A, 10 (1), 25c –Retrenchment Compensation –Petitioner was running an establishment for manufacturing bidis – The rate so offered by petitioner was lower than the rate fixed by the Industrial award –respondents refused to accept the variation in the rate – Thereafter there was some further correspondence between the parties and ultimately petitioner gave a notice to respondents in which he said that respondents had declined his offer and that therefore they were deemed to have left his service of their own accord and though originally his offer stood till 28 of February, he had acquired a right to withdraw it and that he was not bound to wait till that date for the acceptance of his offer – Petitioner further stated in the notice that he was not under an obligation to pay any retrenchment compensation – Petitioner also raised the question about the amount of the retrenchment compensation claimed by each respondent – He also contended that the Labour Court had no jurisdiction to decide both or any of the aforesaid two questions and that those questions fell within the purview of the jurisdiction of the Industrial Tribunal –Held, Court may mention that the ultimate view which has prevailed with us is not directly in answer to the question raised by Mr. Vyas – Court ultimate conclusion is not based on the issues or the points raised by him but it is based on the finding that as there is no pre-existing right in the respondents to claim retrenchment compensation – If any retrenchment compensation is claimed for it must necessarily be claimed dehors any such existing right – Therefore Court do not answer directly the point whether the question that respondents were or were not retrenched could or could not be dealt with by the Labour Court – The only finding that we record is that having regard to the fact that the retrenchment compensation cannot be claimed and must necessarily be claimed dehors that section the Labour Court has got no jurisdiction to deal with the matter – As regards the determination of the amount of the compensation in our judgment there is also no doubt having regard to our aforesaid conclusion that the Labour Court will have no jurisdiction to do so as the right to retrenchment is not claimed under any existing law or award or settlement –Petition Allowed

N. M. MIABHOY, M. U. SHAH, J.

( 1 ) THIS is a writ petition under Articles 226 and 227 of the Constitution of India. Petitioner is Ambalal Shivlal. Respondent No. 1 was at the relevant time the Officer presiding over the 1st Labour Court Ahmedabad. Petitioner was running at Ahmedabad an establishment for manufacturing bidis. Respondents Nos. 2 and 9 (hereafter called respondents simpliciter) were petitioners employees. The wages payable to respondents were governed by an award of the Industrial Tribunal. On 20th of January 1956 petitioner gave a notice that respondents shall be paid at the rate of Rs. 2-8-0 per 1000 rolls. The rate so offered by petitioner was lower than the rate fixed by the Industrial award. By their reply dated 4th February 1956 respondents refused to accept the variation in the rate. Thereafter there was some further correspondence between the parties and ultimately on 13th of February 1956 petitioner gave a notice to respondents in which he said that respondents had declined his offer and that therefore they were deemed to have left his service of their own accord and though originally his offer stood till 28 of February 1956 he had acquired a right to withdraw it and that he was not bound to wait till that date for the acceptance of his offer. Petitioner further contended in the notice that under the circumstances of the case he was not bound to give notice pay to respondents but that in spite of this he was giving to respondents the notice pay. Petitioner further stated in the notice that he was not under an obligation to pay any retrenchment compensation on the above grounds and also on the ground that sec. 25p of the Industrial Disputes Act 1947 (hereafter called the Act) was ultra vires the Constitution. Petitioner ended the notice by stating that however if any competent authority decided that retrenchment compensation should be given to respondents petitioner was prepared to do so. Respondents did not take any steps after this notice E On 3rd April 1959 each of the respondents filed a separate application in the Court of the 1st respondent under section 33c sub-sec. (2) of The Act. Respondents alleged therein that they were retrenched with effect from 13 of February 1956 and that they had not been paid retrenchment compensation as provided for in sec. 25p of the Act. Therefore respondents claimed under the aforesaid section that the amount of their compensation should be determined by respondent No. 1 and that steps should be taken to recover the amount so determined under the provisions of the Act. Petitioner contested the applications. He contended that respondents were not retrenched but that the correct factual position was that petitioners establishment had been closed. Therefore he contended that respondents were not entitled to receive any compensation amount from petitioner. Petitioner also raised the question about the amount of the retrenchment compensation claimed by each respondent. He also contended that the Labour Court had no jurisdiction to decide both or any of the aforesaid two questions and that those questions fell within the purview of the jurisdiction of the Industrial Tribunal. Respondent No. 1 found against all the aforesaid three contentions of petitioner. He held that he had jurisdiction to decide the question whether respondents were or were not retrenched and so he had also jurisdiction to determine the amount at which the retrenchment compensation should be computed. Respondent No. 1 also found that respondents were retrenched and that the establishment was not closed. Respondent No. 1 then determined the amount of compensation payable to each of the respondents and passed a suitable order to enable respondents to take steps necessary for the purpose of recovering the amount. Respondent No. 1 had consolidated all the 8 applications of respondents and he delivered one common judgment disposing of all the aforesaid applications. The present writ application is directed aga



















Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

SupremeToday

SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top