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1966 Supreme(P&H) 51

PUNJAB & HARYANA HIGH COURT
S.B.Capoor, J.
Muller And Phipps India Private) Ltd
Versus
Their Employees Union
Decided On : FEBRUARY 24, 1966

Section 25H of the Industrial Disputes Act, 1947 mandates employers to give preference to retrenched workmen over other persons when filling vacancies, ensuring their re-employment.

Headnote:

INDUSTRIAL DISPUTES ACT, 1947 - SECTION 25H - RE-EMPLOYMENT OF RETRENCHED WORKMEN - PREFERENCE TO RETRENCHED WORKMEN OVER OTHER PERSONS - INTERPRETATION AND APPLICATION.

Fact of the Case:

Muller and Phipps (India) (Private), Ltd. retrenched K. C. Sub (respondent 2) in 1958 due to surplus staff. In 1962, the company filled a vacancy by promoting a clerk, S. C. Goyal, instead of re-employing respondent 2. Respondent 2 claimed re-employment under Section 25H of the Industrial Disputes Act, 1947.

Finding of the Court:

The Labour Court held that respondent 2 was entitled to re-employment from 21 May 1962, with wages and benefits from that date. The court found that the company had contravened Section 25H by not offering the vacancy to respondent 2, who had preference over other persons.

Issues: 1. Whether the dispute was an industrial dispute. 2. Whether respondent 2 was a workman. 3. Whether respondent 2 was entitled to re-employment under Section 25H of the Industrial Disputes Act, 1947.

Ratio Decidendi: 1. The dispute was an industrial dispute as the union had a direct and substantial interest in the re-employment of respondent 2. 2. Respondent 2 was a workman under Section 2(k) of the Industrial Disputes Act, 1947. 3. Section 25H requires the employer to give preference to retrenched workmen over other persons when filling vacancies. The company's promotion of S. C. Goyal, a clerk, to the vacancy of salesman was a contravention of Section 25H.

Final Decision: The writ petition filed by the company challenging the Labour Court's order was dismissed with costs.

Judgment

S. B. Capoor, J.

1. By this writ petition under Articles 226 and 227 of the Constitution of India, Muller and Phipps (India) (Private), Ltd. , challenges the order of the labour court, Delhi (respondent 3 to the petition), whereby on as Industrial dispute sponsored by Muller and Phipps (India) (Private), Ltd. , Delhi Branch Employees Union (respondent 1 to the petition), the labour court; by its award (copy annexure Q to the petition) directed that K. C. Sub (respondent 2) be deemed to be re-employed with the petitioner-company from 21 May 1962, and shall also be entitled to the wages he was drawing at the time of retrenchment and also other benefits from 2.1 May 1962, onwards.

2. The material facts are not disputed.

3. Respondent 2 was, in the year 1955, taken into the employment of the petitioner-company as a salesman. There was some retrenchment in the petitioner-company and, respondent 2 was retrenched with effect from 28 January 1958, and some other salesmen were also retrenched in that year on the ground that they were surplus to the requirement. In September 1961, the petitioner-company required a salesman and promoted its clerk, S. C. Goyal, to the post of salesman. On 21 May 1962, the petitioner-company took back in its employment one S. L. Mongia, a salesman who had been retrenched in the year 1958, but was senior to respondent 2, and it was not till the year 1964 that the petitioner-company, for the first time, made an offer to respondent 2 to coma back as a salesman. Toe communication in this respect is annexure A dated 25 June 1964, and It was mentioned in the opening paragraph that the company had a vacancy of a salesman likely to be filled up in the near future and since K. C. Sud was retrenched by the company, he was given notice to send his application to be considered on preferential basis to fill that vacancy. This officer was obviously made in terms of Sec.2511 of the Industrial Disputes Act, 1947 (14 of 1947 ). Respondent 2 was also asked to state where he had been employed since he was retrenched and whether as present he was gainfully employed in any business. This respondent, by his letter (copy annexure B) dated 2 July 1964, stated that he had already submitted his application dated 16 November 1961, and his claim for re employment in the post of a salesman was, under the provisions of the Act, with effect from 16 November 1961. It was also asserted that there was no provision in the Act under which the respondent was obliged to reply to the queries made in the second paragraph of the communication (copy annexure A ). These queries were not answered in the further correspondence between the petitioner-company and respondent 2 except that in a letter dated 10 August 1964, he said that since his retrenchment from the petitioner-company he was not employed anywhere and was depending upon an Investment made in the year 1947. Thereafter, respondent 2a cause having been espoused by respondent 1, the Delhi Administration, by its order dated 2 January 1965 (copy annexure K), referred that dispute to the labour court, the term of reference as given In the schedule being : whether K. C. Sud is entitled for re-employment under Sec.25h of the Industrial Disputes Act.1947, as claimed by him and if so, what directions are necessary In this respect?

4. On the allegation made by the parties, the labour court framed the following issues:

(1) Whether the dispute is an Individual dispute (2) Whether the applicant was a workman? (3) Whether legally the applicant cannot claim any relief under Sec.25h (4) Relief as in the reference.

5. All the points were found by the labour court in favour of the workman.

6. Section 25h of the Act may be reproduced: Where any workmen are retrenched, and the employer proposes to take Into his employ any persons, he shall, in such manner as may be prescribed, give an opportunity to the retrenched workmen to offer themselves for re-employment, and the retrenched workmen who offer them















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