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

1977 Supreme(Raj) 265

RAJASTHAN HIGH COURT
D.P.Gupta, J.
Darumal and Ors. - Appellant
Versus
State of Rajasthan and Ors. - Respondent
S.B. Civil Writ Petition Nos. 2070, 2071 and 2072 of 1973 and 2456 of 1974.
Decided On : 11-07-1977

Retrenchment compensation under section 25F of the Industrial Disputes Act, 1947 must be paid simultaneously with the termination of service, and subsequent payment cannot validate the termination.

Headnote:

INDUSTRIAL DISPUTES ACT, 1947 - SECTION 25F - RETRENCHMENT - PAYMENT OF COMPENSATION - WORKMEN ENTITLED TO RETRENCHMENT COMPENSATION AT THE TIME OF RETRENCHMENT - SUBSEQUENT PAYMENT CANNOT VALIDATE TERMINATION OF SERVICE.

Fact of the Case:

Four workmen employed as work charge employees in the Irrigation Department of Rajasthan and working in the Rajasthan Canal Project challenged the termination of their services by way of retrenchment on the ground that the provisions of section 25F of the Industrial Disputes Act, 1947 (the Act) were not complied with, specifically the non-payment of retrenchment compensation simultaneously with the termination of their services.

Finding of the Court:

The court found that the retrenchment compensation was not paid or offered to be paid simultaneously with the termination of the petitioners' services, and that the subsequent payment of compensation could not validate the termination of service.

Issues: Whether the termination of the petitioners' services by way of retrenchment was valid and in accordance with the provisions of section 25F of the Act.

Ratio Decidendi: The court held that the requirement to pay compensation for retrenchment is a mandatory condition as provided in section 25F and it is also implicit therein that the amount of retrenchment compensation has to be paid at "the time of retrenchment". If the workman is asked to go and his services are terminated by the expiry of one month's notice of retrenchment or on payment of one month's emoluments in lieu thereof but the retrenchment compensation is not paid or offered to be paid simultaneously along with the termination of his service, then the order of retrenchment is bad in law and is invalid and inoperative.

Final Decision: The court allowed the writ petitions, set aside the orders of retrenchment, and declared that the petitioners continued to hold their respective posts in the service of the State Government. The petitioners were also entitled to get their emoluments and all other benefits for the entire period from the date of the illegal termination of their services upto the date they are restored to their respective posts.

JUDGMENT

1. - These four writ petitions have been filed in this Court by workmen who were employed as work charge employees in the Irrigation Department of the State of Rajasthan and were working in the Rajasthan Canal Project. As similar questions of law arise in these cases, I propose to dispose them of by a common order.

2. Parumal petitioner in writ petition No. 2070 of 1973 and Benarsilal petitioner in writ petition No. 2072 of 1973 were employed as Fitters in the Rajasthan Canal Project, Mechanical Circle, while Jamna Ram petitioner in civil writ petition No. 2071 of 1973 was employed as a Lineman in the same project. Harbanslal petitioner in writ petition No. 2456 of 1974 was working as a Chargeman (Electrical) in the Rajasthan Canal Project Workshop. All the aforesaid four petitioners were thus work charge employees of the State and were working in the Mechanical Division of the Rajasthan Canal Project and were `workmen' within the definition of section 2(s) of the Industrial Disputes Act, 1947, hereinafter referred to as "the Act", the services of all the four petitioners were dispensed with as they were served with retrechment notices for a period of one month.

3. The petitioners have challenged the termination of their services by means of these writ petitions and one of the principal grounds which has been urged by learned counsel for the petitioner is that the provisions of section 25F of the Act were not complied with by the employer while dispensing with the services of the petitioner. The grievance of these petitioners is that the retrenchment compensation, as specified in section 25F (b) of the Act, was not paid to the petitioners simultaneously with the termination of their services. The services of the petitioners Parumal, Benarsilal and Jamna Ram were dispensed with by retrenchment notices which were served upon them on May 15, 1973. According to the said notices of the retrenchment, the services of the aforesaid three petitioners stood terminated on the expiry of one month, effect from June 14, 1973. However, in the case of Parumal and Benarsilal petitioners the retrenchment compensation was paid on June 16, 1973, while in the case of Jam Ram petitioner the amount of salary was paid on May 15, 1973, while the amount of retrenchment compensation was paid on June 25, 1973. In this respect the case of the respondents is that petitioner Jamna Ram refused to accept the amount of retrenchment compensation while it was offered to him along with the payment of his salary. In respect of all the three aforesaid petitioners the case set up by the respondent State and its others is that the amounts of compensation of the three petitioners were passed for payment on June 14, 1973" It has further been stated that the amount were offered but the petitioners refused to accept it. The reply of the respondents is extremely vague on the question as to when the amount of retrenchment compensation was offered to the three petitioners, but from the wireless message, a copy of which has been produced along with reply in Parumil's case, it appears that the amount of compensation was offered on June 16, 1973. So far as the petitioner Harbanslal is concerned the termination of his service came into effect from May 29, 1973 while the amount of retrenchment compensation was paid to him on May 31, 1973. Thus from the facts stated above, it is quite clear that in the case of the four petitioners the amount of retrenchment compensation was not tendered or paid to any one of them simultaneously with the termination of their services. In case of each one of the petitioners, the retrenchment notice issued for a period of one month in accordance with the provisions of (cl) (a) of section 25F of the Act came to an end prior to the date the amount of retrenchment compensation in accordance with the provisions of clause (b) of section 25F was paid or even tendered to him.

4. Section 25F of the Act requires that in order to bring about a terminati









Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
whatsapp-icon Back to top