HIGH COURT OF ORISSA
G. K. Misra, C. J. And R. N. Misra, J.
SAROJ KUMAR GHOSH - Appellant
Versus
CHAIRMAN, ORISSA STATE ELECTRICITY BOARD - Respondent
O. J. C. 687 Of 1969
Decided On : OCTOBER 03, 1969
INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACT, 1946 - SECTION 3, 4, 15 - SCHEDULE - STANDING ORDERS - SUPERANNUATION - WHETHER A CONDITION OF SERVICE - WHETHER CAN BE PROVIDED IN STANDING ORDERS - WHETHER TERMINATION OF EMPLOYMENT INCLUDES SUPERANNUATION - WHETHER SUPERANNUATION IS AN IMPORTANT CONDITION OF SERVICE.
Fact of the Case:
The petitioner, the General Secretary of the City Distribution Division, Electrical worker's Union and the Cuttack Electric Supply Workers' Union, challenged the order of the opposite party Board directing the workmen in the employment of the Cuttack Electric Supply Co. Ltd., whose services had been taken over by the Orissa State Electricity Board, to retire from service on attaining the age of 55. The petitioner contended that superannuation was an important condition of service and the direction in the Award was that in respect of such conditions the company's workmen employed by the Board, are to be governed by the terms of service in vogue under the Company, and, therefore, the Board, in the face of the direction in the Award and having lost its cause before the Courts, is not entitled to direct superannuation of these workmen.
Finding of the Court:
The Court held that superannuation was not a condition of service that could be provided in the Standing Orders under the Industrial Employment (Standing Orders) Act, 1946. The Court further held that superannuation was an important condition of service and was not liable to change in terms of the award which determined the terms of service of the workmen of the Company.
Issues: 1. Whether superannuation is a condition of service that can be provided in the Standing Orders under the Industrial Employment (Standing Orders) Act, 1946? 2. Whether superannuation is an important condition of service?
Ratio Decidendi: 1. The Court held that superannuation was not a condition of service that could be provided in the Standing Orders under the Industrial Employment (Standing Orders) Act, 1946, because: - None of the 11 items of the Schedule to the Act, which sets out the matters to be provided in Standing Orders, covers the case of superannuation. - The meaning of 'superannuation' and 'termination' are different and superannuation cannot be equated with termination. - The Model Standing Orders provided under the rules do not make any provision for superannuation. 2. The Court held that superannuation was an important condition of service because: - It is an event which comes more or less in an automatic process and both the parties have notice of the matter long before. - It is a positive act by which one party even against the desire of the other can bring about the end to an employment.
Final Decision: The Court issued a writ of mandamus commanding the opposite party Board not to enforce the order of superannuation in respect of the workmen who had been taken over from the Cuttack Electric Supply Co. Ltd. by the Board. The Court also directed that the superannuation of the workmen, even though given effect to, be quashed and the opposite party Board is also commanded to take them into employment and treat them to be in service.
K. N. MISRA, J.
( 1 ) IN this application under Articles 226 and 227 of the Constitution the petitioner before us is the General Secretary of the City Distribution Division, Electrical worker's Union and the Cuttack Electric Supply Workers' Union.
( 2 ) THE short point that arises for consideration in this case is as to whether the opposite party Board is entitled in law to call upon the workmen in the employment of the Cuttack Electric Supply Co. Ltd. , whose services have now been taken over by the Orissa State Electricity Board, to retire from service on attaining the age of 55.
( 3 ) IT is not disputed that the Cuttack Electric Supply Co. Ltd. which was being managed by the Managing Agency M/s. Octavus Steel Co. Ltd. was taken over by the State of Orissa and was placed under the Orissa State Electricity Board. The company came before this Court in O. J. C. No. 31 of 1962 challenging the order of the State Government in taking over the undertaking and cancelling its liecnse. Ultimately the matter was settled on certain terms and the services of 135 workmen hitherto in the employment of the Company were taken over by the state Electricity Board. The Board issued fresh orders of appointment to the workmen and attempted to change the conditions of service. A dispute arose which led to tripartite agreement on 1-7-63 to which the State, the Electricity board and the Union were parties. It was decided, inter alia, (1) that the workmen previously seiving under the Company would be entitled to the same conditions of service as were applicable to them under the Board, and (2) that the Board would take urgent steps for drafting a set of standing orders and getting them certified in accordance with law.
( 4 ) IT is alleged that the opposite party Board committed violation of the terms of the agreement. Ultimately an industrial dispute was referred to the Tribunal in the following terms:
"whether the workers of the Company which was purchased by the board are entitled to continuity of service without any change in their conditions of service they were enjoying under the Company. " the Tribunal, after a regular enquiry, came to hold. "i conclude that the employees under the Company would have continuity of service while working under the Board without any change in their important conditions of service. But regarding other matters comparatively less important they would be governed by the Boards' rules. "
It is further contended by Mr. Ram for the petitioner that no rules have yet been framed by the Board in regard to less important conditions of service. The opposite party Board came before this Court mainly for expunction of the direction in the tribunal's Award that the workmen should have continuity of service while working under the Board without any material change in their conditions of service. The said writ application was dismissed on 15-3-65. The matter was carried in appeal before the Supreme Court and their Lordships of the Supreme Court by their judgment in Civil Appeal No. 967 of 1966 D/- 29-11-1968 (SC) dismissed the same.
( 5 ) ON 21-6-69. the Board superannuated some of the employees now working under the Board on the ground that they had reached the age of 55 and were, therefore liable to superannuate.
( 6 ) THE challenge in the writ application is that the direction to the workmen to superannuate on the ground that they have reached the age of 55 is without authority of law and such a direction runs counter to the direction in the Award. In 1950, there were a set of standing orders of the Cuttack Electric Supply Co. Ltd. There was no provision for age of superannuation therein. The contention of Mr. Ram is that superannuation is one of the important conditions of service and the direction in the Award is that in respect of such conditions the company's workmen employed by the Board, are to be governed by the terms of service in vogue under the Company, and, therefore, the Board, in the face of the direction in th
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