PUNJAB & HARYANA HIGH COURT
Jawahar Lal Gupta, J.
Haryana State Federation Of Consumers Cooperative
Versus
Presiding Officer, Industrial Tribunal-cum-labour
Civil Writ Petition No. 3952 of 1991,
Decided On : APRIL 7, 1994
INDUSTRIAL DISPUTES ACT, 1947 - SECTION 2(OO) - RETRENCHMENT - DEFINITION - EXCEPTION - TERMINATION OF SERVICE DUE TO NON-RENEWAL OF CONTRACT - SCOPE - CONTINUOUS EMPLOYMENT FOR MORE THAN 3 YEARS - NOT A CASE OF NON-RENEWAL OF CONTRACT - RETRENCHMENT.
Fact of the Case:
The petitioner, a cooperative wholesale store, appointed the respondent as a salesman on an ad hoc basis for a period of 89 days on February 9, 1984. The appointment was extended from time to time, and finally, on August 4, 1986, the respondent was reappointed for a period of six months, ending on January 30, 1987. After the expiry of this period, the respondent's services were terminated. The respondent raised an industrial dispute, and the Labour Court ordered his reinstatement with continuity of service and full backwages. The petitioner challenged this order in the High Court.
Finding of the Court:
The High Court held that the termination of the respondent's services amounted to retrenchment in violation of Section 25-F of the Industrial Disputes Act, 1947. The Court noted that the respondent had been in continuous employment for more than 3-1/2 years and that his services had been terminated not at the expiry of the initial period of employment but after a series of extension orders. The Court also noted that the post held by the respondent was not abolished and that there was no suggestion that there was no work for him.
Issues: Whether the termination of the respondent's services amounted to retrenchment in violation of Section 25-F of the Industrial Disputes Act, 1947.
Ratio Decidendi: The Court held that the exception to the definition of retrenchment in Section 2(oo) of the Industrial Disputes Act, 1947, which excludes termination of service due to non-renewal of contract, cannot be enlarged so as to stifle the basic provision and the real objective of the law. The Court held that the respondent's services had been terminated not at the expiry of the initial period of employment but after a series of extension orders, and that the post held by the respondent was not abolished and there was no suggestion that there was no work for him. Therefore, the Court held that the termination of the respondent's services amounted to retrenchment in violation of Section 25-F of the Industrial Disputes Act, 1947.
Final Decision: The High Court dismissed the petitioner's writ petition and upheld the Labour Court's order reinstating the respondent with continuity of service and full backwages.
Jawahar Lal Gupta, J.
1. Did the petitioner retrench the workman in violation of the provisions contained in Sec.25-F of the Industrial Disputes Act, 1947 ? The petitioner says that the respondents had been appointed on purely ad hoc basis and their services stood terminated on account of non-renewal of the contracts of employment. The Labour Court having rejected the plea of the Management, it has approached this Court through Civil Writ Petition Nos.3952 and 14046 of 1991. Issues in both the petition being similar, these can be disposed of by a common order. A few facts emanating from the record of Civil Writ Petition No.3952 of 1991 may be briefly noticed.
2. On February 9, 1984 the petitioner appointed the second respondent as a Salesman for a period of 89 days on ad hoc basis. The appointment was extended from time to time. Finally, in pursuance to the request made by the respondent vide his letter dated July 10, 1986, his appointment was extended for the period w. e. f. August 4, 1986 to January 30, 1987 for six months on the fixed salary of Rs.500.00 per month. Thereafter, his services stood terminated. However, the workman raised an industrial dispute. The appropriate Government made a reference to the Labour Court. It accepted the workmans claim vide award dated April 26, 1990. A copy of this award has been produced as Annexure P-3. The Labour Court ordered the reinstatement of the workman with continuity of service and full backwages. The petitioner approached this Court through Civil Writ Petition No.8300 of 1990. Vide order dated June 4, 1990, the Motion Bench disposed of the writ petition with the following order:-
"present. Mr. Hemant Kumar, Advocate. The sole argument is that the petitioners (respondents) going out of service could not be taken as retrenchment in view of the fixed term of the appointment vide Annexure P. I. No such point has been taken or argued before the Labour Court. The petitioner, if so advised may approach the Labour Court for the rectification of the mistake. The petition stands disposed of as indicated above. June 4, 1990 Sd/-I. S. Tiwana, J. Sd/-G. R. Majithia,j. "
3 The petitioner, thus, approached the Labour Court. It rejected the petitioners claim. It has consequently approached this Court through the present petition.
4. Learned counsel for the parties have been heard, Mr. Hemant Kumar has contended that the respondent having been appointed for a fixed period from August 4, 1986 to January 30, 1987 and the contract of employment having not been renewed, the Labour Court has erred in holding that he was retrenched in violation of the provisions of Sec.25-F. On the other hand, Mr. Surya Kant, appearing for the respondent-workman, has vehemently contended that the finding of fact recorded by the Labour Court calls for no interference. Counsel for the parties have also produced a copy of the statement of claim filed by the workman and the reply to the demand notice submitted on behalf of the petitioner- management. These documents have been taken on record collectively as "mark-A".
5. A perusal of the reply filed on behalf of the petitioner-management before the Reconciliation Officer shows that the respondent-workman had been appointed on March 23, 1984. He worked till June 19, 1984. Thereafter, he was in service of the following periods:-
(i) From June 27, 1984 to December 26, 1984; (ii) From January 10, 1985 to April 10, 1985 (iii) From April 10, 1985 to July 11, 1986 (iv) From July 15, 1985 to January 10, 1986 (v) From February 1, 1986 to July 31.1986 and ; (vi) From August 4, 1986 to January 30, 1987
6. It is, thus, clear that except for short intervals of time the respondent-workman has remained in the service of the petitioner since March 23, 1984. It is in the background of this factual position that the respective contentions of the learned counsel for the parties have to be considered.
7. Retrenchment has been defined to mean "the termination by the employer of the ser
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