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1960 Supreme(SC) 96

SUPREME COURT OF INDIA
28th March, 1960.
P.B. GAJENDRAGADKAR, K.N. WANCHOO AND K.C. DAS GUPTA, JJ.
M. L. Bose and Co., Private Ltd., Calcutta, Appellant
Versus
Its Employees, Respondents.
Civil Appeal No. 238 of 1959.
Advocates appeared
Mr. H. N. Sanyal, Additional Solicitor-General of India, (Mr. D. N. Mukherjee, Advocate, with him), for Appellant; Mr. R. C. Datta, Advocate, for Respondents.

Advocates:
B.DUTTA, D.N.MUKHERJI, H.N.SANYAL

Dismissal of workmen for trade union activities is illegal and in violation of Section 33 of the Industrial Disputes Act, 1947.

Headnote:

INDUSTRIAL DISPUTES ACT, 1947 - SECTION 33 - WRONGFUL DISMISSAL - REINSTATEMENT - BACK WAGES - MINIMUM WAGE - DEARNESS ALLOWANCE.

Fact of the Case:

The appellant, a private limited company, dismissed 47 workmen for alleged subversive activities and slow down of production. The respondents, the workmen, claimed that the dismissals were illegal and in violation of their right to form a trade union and agitate for better wages and conditions of service.

Finding of the Court:

The Industrial Tribunal found that the dismissals were illegal and contravened Section 33 of the Industrial Disputes Act, 1947, and the principles of natural justice. It ordered the reinstatement of the workmen and payment of back wages for the period from the date of dismissal till reinstatement.

Issues: 1. Whether the dismissals were illegal and in violation of Section 33 of the Industrial Disputes Act, 1947? 2. Whether the workmen were entitled to reinstatement and back wages?

Ratio Decidendi: 1. The Court held that the dismissals were illegal and in violation of Section 33 of the Industrial Disputes Act, 1947, as they were motivated by the appellant's aversion to the formation of a trade union by its employees and were not based on any genuine grounds of misconduct. 2. The Court held that the workmen were entitled to reinstatement and back wages as the dismissals were wrongful and illegal.

Final Decision: The Court dismissed the appeal and upheld the order of the Industrial Tribunal directing the reinstatement of the workmen and payment of back wages.

Judgment

GAJENDRAGADKAR, J. : This appeal by special leave arises from an industrial dispute between the appellant M/s. M. L. Bose and Co., Calcutta, and the respondents, its workmen. Five items of dispute were referred by the West Bengal Government to the Third Industrial Tribunal for its adjudication; the principal amongst them was in regard to the dismissal of 47 persons. The respondents urged that this dismissal was wrongful and illegal and the dismissed workmen were entitled to reinstatement. The other items of dispute were in regard to the scale of pay, dearness allowance, holidays and leave. The industrial tribunal has held that the dismissal of the 47 workmen was illegal and has directed their reinstatement. It has also ordered that the appellant should pay them 1/3 of their total emoluments for the period from the date of dismissal till reinstatement. In regard to the other items of dispute the tribunal has made appropriate orders. In the present appeal we are principally concerned with the order of reinstatement.

2. The appellant is a private limited company which manufactures Laxmibilas Hair Oil, Barley and other products. It is a small concern and carries on its business on the cottage industries scale. Sometime in January 1957 a charter of demands was submitted by the appellant s workmen, and according to the appellant soon thereafter the workmen started coercive measures by way of slow down of production. On April 15, 1957, the appellant issued a notice calling upon its employees to stop subversive activities and to co-operate with the appellant; but according to the appellant this notice had no effect on the workmen.

3. The respondents case, on the other hand, is that the appellant disliked the fact that its workmen had formed a union which was registered on November 2, 1956, and it is this dislike which is really responsible for the subsequent events. The charter of demands submitted by the respondents to the appellant was forwarded by the respondents to the Labour Commissioner as well on February 19, 1957. The Labour Commissioner called for the comments of the appellant on the said charter. The appellant then swiftly reacted against this development by putting a notice which is alleged to have been hung up on the notice board on April 15, 1957, calling upon the workers to stop agitational activities. That according to the respondents is the genesis of the said notice.

4. Next day a charge-sheet was issued and hung up on the notice board against 10 employees. On April 17, 1957, the Labour Officer wrote to the appellant suggesting a joint conference. On April 18, 1957, the appellant dismissed the 10 workmen. Two days thereafter another charge - sheet was similarly hung up on the notice board and it was followed by dismissal of 5 workmen on April 22, 1957. It appears that at this stage the appellant applied to the Magistrate, Sealdah, under S. 144 of the Code of Criminal Procedure against 17 of its employees. On April 25, 1957, a charge- sheet was affixed on the notice board against 32 workmen and they were dismissed on May 31, 1957. The respondents protested against this conduct of the appellant in thus dismissing a large number of its workmen illegally and that led to the present reference.

5. The tribunal has found that the orders of dismissal contravened S. 33 of the Industrial Disputes Act, 1947, that they also contravened the principles of natural justice inasmuch as no enquiry was held in respect of any of the dismissals. The tribunal was not even satisfied that the notices alleged to have been posted by the appellant were posted on the notice board in fact, and it saw no reason why the appellant could not have served each one of the workmen individually with the said notice. It is significant that 16 of the workmen in any case were dismissed even before the date fixed for the enquiry had arrived. On the evidence the tribunal also thought that the attendance register disproved the appellant s contention that








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