Retrenchment compensation is not available to an employee who is dismissed as a disciplinary measure.

Shamsher Bahadur, J.

1. A notification of the Punjab Government, dated 13 September 1958, notified that an industrial dispute, existed between the management of British Motor and Cycle Mart, Ambala Cantonment, and their employee, Babu Lal, and accordingly referred it to the labour court for adjudication. The dispute was formulated in these terms: Whether the dismissal of Babu Lal, workman is in order and justified and if not, to what relief is he entitled?

2. Briefly stated, the dispute turned round the termination of Babu Lals services by the management on 15 May 1958. The management Contended that Babu Lal having left work of his own accord without applying for any leave, was chargesheeted the next morning. Subsequently, Babu Lal having tendered a resignation, the necessity of an enquiry was obviated. Babu Lal, on the other hand, contended that he took leave for Abe afternoon of 15 May 1958 from the proprietor of the British Motor and Cycle Mart and when he came next morning no work was assigned to him. He brought this to the notice of the labour inspector and continued to do so till he was served with a charge-sheet on 29 May 1958. Although he gave a reply to this charge-sheet, he did not hear anything from the management which asked him finally on 9 June 1958 to quit the factory premises. The labour court, presided over by Sri Sher Singh, accepted the version of the employee and found that his dismissal was not justified. So far as this aspect of the dispute is concerned, it is not in issue now, being essentially a decision on a question of fact. It is only the relief granted by the, labour court which has been challenged by the petitioner, British Motor and Cycle Mart by way of a writ under Article 226 of the Constitution of India. The labour court granted the following five reliefs to the respondent Babu Lal:-

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(i) Retrenchment compensation under Sec.25f of the Act; (ii) three months pay as compensation for loss of employment; (iii) one months pay in lieu of notice; (iv) full back wages for the period from 16 May 1958 to 10 January 1959; and (v) minus fine of one months pay which is being inflicted as punishment for his absence on 15 May 1958, without leave or permission.

3. The award was made by the labour court on 10 January 1959.

4. Sri Sarin, the learned Counsel for the petitioner, contends that the award is vitiated in as much as the reliefs granted to Babu Lal are in contravention of the provisions of law. So far as the first relief of the retrenchment compensation is concerned, my attention has been invited to Clause (oo) of Sec.2 of the Industrial Disputes Act, 1947 , under which "retrenchment" means the termination by the employer of the service of a workman for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action, but does not include. . . .

5. It has been contended that in spite of the amplitude of the definition, the termination of services of Babu Lal being the result of punishment "inflicted by way of disciplinary action" is definitely excluded from its purview. The finding of the Court is that Babu Lal was dismissed and his dismissal was not justified. According to the management, the services of Babu Lal were terminated as a disciplinary measure because he absented himself from the duty without applying for leave. Whatever view may be taken of this dismissal, it cannot be denied that the services of Babu Lal were terminated as a disciplinary measure. Under Sec.25f of the Industrial Disputes Act, the meaning of the word "retrenchment" has to be gathered from the context in which it is used in the Act. According to the dictionary meaning "retrenchment" implies the removal of a person with the object of cutting down expenses or to introduce economy in management. Sec.25f of the Act, which lays down the conditions precedent to the retrenchment of a workman, also appears to have this conception of "retrenchment" in view. It is laid down under the section that: