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1962 Supreme(Online)(Mad) 6

MADRAS HIGH COURT
Venkatarama Aiyar, J
P.S. Desikachari, C. Theobald and A. Krishnamurthi – Appellant
Versus
Mail Private Limited – Respondent
W.P. Nos.17, 18 and 19 of 1959



Advocates:
For the Appellants/Petitioners: P.S. Desikachari, C. Theobald, A. Krishnamurthi
For the Respondents: Mr. Ramamurthi Aiyar

Termination by employer does not amount to retrenchment when no statutory rule for superannuation exists, granting rights to compensation under the Industrial Disputes Act.

Headnote:(A) Industrial Disputes Act, 1947 - Sections 2(oo) and 25(F) - Working Journalists (Conditions of Service) and Miscellaneous Provisions Act, 1955 - Termination of service not amounting to retrenchment - Petitioners employed over 35 years, terminated upon reaching alleged superannuation age - Court finds that no rule existed for such termination, thus entitling petitioners to retrenchment compensation - Labour Court's decision quashed for legal errors, reinstating employees' right to compensation. (Paras 6, 9, 17, 20)

(B) Errors of Law - Legal interpretation of ‘retrenchment’ and ‘superannuation’ - The definition not satisfied as termination was not voluntary or under a valid rule. (Paras 9, 18)

(C) Benefits - Petitioners entitled to statutory benefits as retrenched employees; management to compensate according to statutory provisions. (Paras 14, 15)

Table of Content
1. factual background of employment and relevant acts. (Para 1 , 2 , 3)
2. management's intent to retire employees. (Para 4)
3. arguments on retrenchment compensation and superannuation. (Para 5 , 9 , 12)
4. application of working journalist act and retirement rules. (Para 6 , 8)
5. court's observations on retirement and retrenchment definitions. (Para 7 , 10 , 11)
6. procedural errors related to retrenchment. (Para 13 , 14)
7. clarification of jurisdiction under art. 226. (Para 19)
8. mistakes in law and basis for certiorari. (Para 20)
9. final order and directions. (Para 21)

1. These petitions are filed under Art.226 of the Constitution for the issue of a writ of certiorari, calling for the records relating to W.P. Nos.17, 18 and 19' of 1959 on the file of the Labour Court, Madras, and for quashing the orders passed thereon on 8th July 1960, rejecting the claim of the petitioners for certain monetary compensation.

2. The respondent is a private limited company, which owns and publishes the "Mail" one of the premier English daily newspapers of Madras. P.S. Desikachari, C. Theobald and A. Krishnamurthi, the petitioners in the above petitions, were employed by the respondent as the Chief Reporter, Sports Editor and Reporter respectively for the paper. Each one of them had put in more than 35 years of continuous service in the establishment; by the year 1956, they had attained respectively 62, 58 and 58 years of age. The relationship between the management and the petitioners during the entire period of service was happy; the management treated the employees with kindness and consideration, and the latter, on their part, responded by doing substantial work to forward the interests of the paper. There was no special conditions of service regulating the relationship between the petitioners and the respondent. Their service would, however, be terminated by notice on either side. To be more specific the contract of employment did not provide for retirement of the employee on reaching any particular age; nor were there any standing orders providing for superannuation of the employees. There is, however, nothing unusual or strange in this as the employer could always discharge the employee by giving the necessary notice.

3. The working conditions of the journalists formed one of the subjects which the Press Commission had to enquire into and consider. The Commission made its report on 14-7-1954. Shortly thereafter, the Central Legislature passed Act 45 of 1955 , which came into force on 20-12-1955, regulating the conditions of service of working journalists and other persons employed in newspaper establishments. It also provided a machinery to fix the emoluments or the working journalists. It is not disputed that the petitioners would come within the definition of the term "working journalists" under that enactment.

4. At about that time, the management of the "Mail" appears to have considered the expediency of continuing in service the petitioners. The willingness of the latter to retire was not ascertained, presumably because their consent was not necessary for the termination of their service. The management decided to retire them from 1-6-1956 on payment of "the usual statutory compensation". Mr. Taylor, the editor, communicated the decision to the three petitioners in due course; it is not disputed that the latter were then told that they would be paid all statutory benefits due to them. Indeed, the letters individually addressed to the three petitioners, by the management on 22-3-1956 specifically stated that the former would be paid "retrenchment compensation" Theobald was willing for the termination of his services on those terms. But the other two placed before the management their special difficulties in the event of their immediate discharge, and pleaded for a reconsideration of the decision. The management was, however, not agreeable to reconsider their decision to retire them, but was willing to mitigate the rigour o



























































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