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1996 Supreme(All) 339

HIGH COURT OF ALLAHABAD
S.C.Verma
U P S E B LUCKNOW
Versus
PRESIDING OFFICER INDUSTRIAL TRIBUNAL 1 U P ALLD
Decided On : 22 March 1996
Civil Misc. W. P. No. 17785 of 1985

Advocates Appeared:
A.K.SIAHAI, K.P.AGARWAL, SUDHIR CHANDRA,

The provisions of Section 6-N (b) of the U. P. Industrial Disputes Act, 1947 are mandatory and require that the workman be paid the retrenchment compensation at the time of retrenchment.

Headnote:

RETrenchment - U. P. INDUSTRIAL DISPUTES ACT, 1947 - SECTION 6-N - CONDITIONS PRECEDENT TO RETRENCHMENT OF WORKMAN - PAYMENT OF RETRENCHMENT COMPENSATION AT THE TIME OF RETRENCHMENT - INTERPRETATION.

Fact of the Case:

The petitioner, a workman, was retrenched from his employment by the respondent. The Industrial Tribunal held that the provisions of Section 6-N of the U. P. Industrial Disputes Act, 1947 (the Act) were not complied with and as such the action of retrenchment was not in accordance with law. The petitioner challenged the award of the Industrial Tribunal by way of a writ petition.

Finding of the Court:

The court held that the provisions of Section 6-N (b) of the Act are mandatory and require that the workman be paid the retrenchment compensation at the time of retrenchment. The court found that in the present case, the payment of retrenchment compensation was made on 20-6-1984, which was after the date of retrenchment, i.e., 19-6-1984. Therefore, the court held that there was non-compliance with the provisions of Section 6-N (b) of the Act and the retrenchment notice was bad in law.

Issues: Whether the provisions of Section 6-N (b) of the Act were complied with.

Ratio Decidendi: The court relied on the following principles of law: * The provisions of Section 6-N (b) of the Act are mandatory and require that the workman be paid the retrenchment compensation at the time of retrenchment. * The expression "has been paid at the time of retrenchment" in Section 6-N (b) of the Act means that the payment should be made before the retrenchment is given effect to. * The act of payment may be simultaneous to the action of retrenchment but it cannot be after the retrenchment has already taken place.

Final Decision: The court dismissed the petition and upheld the award of the Industrial Tribunal.

S. C. VERMA, J.

This petition is directed against the award dated 19-8-1985 passed by the Industrial Tribunal No. 1, U. P. , Allahabad.

2. The Industrial Tribunal has held that the provisions of Section 6-N of the U. P. Industrial Disputes Act (hereinafter referred to as the Act) have not been complied and as such the action of retrenchment was not in accordance with law. The notice of retrenchment dated 19-6-1984 was set aside and the petitioner was directed to be reinstated with full back wages.

3. While entertaining the writ petition by an interim order dated 14-5-1986, the workman was directed to be reinstated in employment forth with. The payment of past wages, however, remain stayed.

4. Assailing the impugned award of the Industrial Tribunal, the learned Counsel for the petitioners submitted that the notice of retrench ment dated 19-6-1986 was served on 20-6-1986 alongwith the retrenchment compensation and one months pay in lieu of notice, which was refused by the workman and thereafter it was sent by registered post at his home address. A report was submitted by the Sub- Divisional Officer, on 20-6-1984 to the Executive Engineer stating therein that the retrenchment notice was served upon the workman on 20-6- 984 but the workmen refused to accept the same and thereafter the notice has been sent by the registered post at his home address. It has further been stated that while serving the retrenchment notice on the workman, he was simultaneously offered one moths wages in lieu of notice plus retrenchment compensation in full compliance of Section 6-N of the Act but as the workman in presence of S/sri Rajendra Awasthi, Junior Engineer and B. N. Singh Sub- Divisional Clerk, there was full compliance. The Executive Engineer by letter dated 22-6-1984 sent the retrenchment notice by registered post and the retrench ment compensation and wages in lieu of one months notice by money order of the same date. The petitioners got the notice published in the news paper dated 23-7-1^84 amrit Prabhat intimating that the workman may collect the arrears due to him as he had refused when the money was offered to him. In the above circumstances, the learned counsel submitted that the Industrial Tribunal grossly erred in holding that there was non-compliance of mandatory provisions of Section 6-N of the Act.

5. The petitioner has placed on record a copy of notice of retrench ment dated 19-6-1984, contained in annexure No. 2 to the writ petition. In this notice dated 19-6-1984, letter No. 1548 has been indicated and it is addressed to Prem Pratap Singh s/o Sri Hira Lal. 230 Purana Katra district Allahabad. The notice further indicated that he was employed on muster roll and his services are being terminated with effect from 19-6-1984. The workman was informed that he may collect his dues from the office. The details of the dues were indicated as Rs. 1050 towards retrench ment compensate, Rs. 300 towards one months pay in lieu of notice and salary amounting to is. 190 for the period 1-6-1984 to 19-6-1984, total Rs. 1540.

There is a letter dated 20-6-1984 ^contained in annexure No. 3, addressed to the Executive Engineer Vidyut Janpad Nirman Khand, Allahabad and the same has been sent by Up Khand Adhishasi, Vidyut Janpad Nirman, U. P. Khand-II, 57 George Town, Allahabad. In this letter it has been stated that Prem Pratap Singh, was served personally letter No. l548/m-16-dated 19-6-1984 on 20-6-1984 to which he refused and required the letter to be sent at his home address by registered post. It was pointed out that the above letter has been sent by the registered post. The petitioners have also placed on record the details of the payment pre pared by them with regard to wages of the workman and the retrenchment compensation ate. On the payment voucher dated 19-6-1984, there is an endorsement dated 20-6-1984 that the workman Prem Pratap Singh refused to accept the money. The above document further shows that the payment was sent by money order d























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