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Uttar Pradesh State ... v. Presiding Officer, I...
Structured Summary of the Legal Opinion
Factual and Procedural Background
The petitioners, Uttar Pradesh State Electricity Board, filed a writ petition under Article 226 of the Constitution challenging an award of the Industrial Tribunal (I), U.P., at Allahabad dated 9 August 1985 (annexed as Annexure 1). The contesting respondent-workman, Mohd. Jameel, was employed as a pump operator-cum-electrician from 1 June 1977. His services were terminated with effect from 1 February 1979, which led to an industrial dispute registered as Adjudication Case No. 168 of 1980. The Tribunal earlier, by an award dated 17 August 1981 (published 3 October 1981), held that the termination was illegal and directed reinstatement with continuity of service and back-wages.
Subsequently, an order of termination dated 19 June 1984 was issued (Annexure 2). The Tribunal in the impugned award again answered issues in favour of the workman, holding that the termination(s) did not comply with S.6-N of the U.P. Industrial Disputes Act, 1947 (pari materia to S.25-F of the Industrial Disputes Act, 1947), directed reinstatement with continuity of service and back-wages, and observed that the workman had been in continuous service since 1977 and that his prolonged engagement on casual/daily wage basis justified consideration for absorption on a regular basis.
Legal Issues Presented
- Whether the termination/retrenchment of the workman complied with the requirements of S.6-N of the U.P. Industrial Disputes Act, 1947 (pari materia to S.25-F of the Industrial Disputes Act, 1947), such that the termination could stand.
- Whether "substantial compliance" (e.g., an order offering the workman an opportunity to collect retrenchment compensation and wages, or service by peon/registered letter) suffices where S.6-N / S.25-F prescribe payment/conditions at the time of retrenchment.
- Whether the Tribunal's findings on the facts (e.g., non-service of the termination order, timing of compensation calculation) warranted interference by the High Court in exercise of writ jurisdiction.
Arguments of the Parties
Petitioners-Employers' Arguments
- The termination order dated 19 June 1984 purports to comply with Ss.6-N/25-F because it informs the workman that he may collect retrenchment compensation and wages in lieu of notice; this constitutes substantial compliance and is sufficient.
- It is not necessary that the amount contemplated under Ss.6-N/25-F be paid at the exact time of retrenchment if the order contemplates an offer to collect the amount later.
- When the notice was offered on 19 June 1984, the peon reported that the workman refused to accept it and requested it be sent to his home address; a registered letter was allegedly sent thereafter.
- Relying on Ratnesh Hydromachs v. Labour Court, Hubli [1985 (1) L.L.N 940] and B.N Elias and Company (Private), Ltd. v. Fifth Industrial Tribunal of West Bengal [A.I.R 1965 Cal. 166], the petitioners argued for the validity of the termination on the basis of substantial compliance.
Respondent-Workman's Arguments
- Learned senior counsel for the workman relied on State of Bombay v. Hospital Mazdoor Sabha [A.I.R 1960 S.C 610] (three-Judge Bench), submitting that S.25-F (pari materia S.6-N) prescribes a condition precedent and non-compliance renders retrenchment invalid.
- Also relied on State Bank of India v. N. Sundaramony [1975 (2) L.L.N 101] (equated to 1976 (2) L.L.N 5) and the Apex Court's approval of A.I.R 1960 S.C 600 to support the principle that if a workman falls within S.25-F he cannot be retrenched without payment at the time of retrenchment.
- The workman denied receiving the termination order when offered and denied receiving the registered letter; the employers did not produce the person who prepared the peon's report of refusal. The Tribunal recorded findings adverse to the employers on these factual points.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Ratnesh Hydromachs v. Labour Court, Hubli, [1985 (1) L.L.N 940] | Cited by petitioners in support of the contention that substantial compliance with procedural requirements may suffice. | The Court noted this decision was relied upon by the petitioners; the opinion does not adopt it over Apex Court authorities and instead follows the law as laid down by the Apex Court. |
| B.N Elias and Company (Private), Ltd. v. Fifth Industrial Tribunal of West Bengal, [A.I.R 1965 Cal. 166] | Cited by petitioners in support of substantial-compliance argument on termination/ retrenchment formalities. | The Court recorded that petitioners relied on this decision; it did not treat it as overriding the Apex Court decisions cited by the workman's counsel. |
| State of Bombay v. Hospital Mazdoor Sabha, [A.I.R 1960 S.C 610] | Establishes that S.25-F (pari materia S.6-N) prescribes a condition precedent for retrenchment and non-compliance renders retrenchment invalid. | The Court quoted and applied this Apex Court authority to hold that failure to comply with the statutory condition precedent invalidates retrenchment. |
| State Bank of India v. N. Sundaramony, [1975 (2) L.L.N 101] (equivalent to 1976 (2) L.L.N 5) | Affirms that if a workman falls within S.25-F he cannot be retrenched without payment at the time of retrenchment; discusses the definition of "retrenchment" (S.2(oo)). | The Court relied on the law as expounded in this decision (and the Apex Court approvals it contains) to support the conclusion that non-compliance with S.6-N / S.25-F is fatal to retrenchment. |
| A.I.R 1960 S.C 600 | Referenced as approved by later Apex Court authority and in support of the requirement of compliance with S.25-F. | Mentioned in the opinion as part of the line of Apex Court authorities the Court followed in concluding that non-compliance invalidates retrenchment. |
Court's Reasoning and Analysis
The Court analyzed both the factual findings recorded by the Tribunal and the applicable law as laid down by the Apex Court. Key elements of the reasoning were:
- The Tribunal recorded specific factual findings: the termination order dated 19 June 1984 was not shown to have been validly served on the workman (the workman denied service and denied receipt of the registered letter), the employers did not produce the person responsible for the peon's report of alleged refusal to accept the notice, and the calculation/working of retrenchment compensation on the account slip was done after the date of the termination. The petitioners did not dispute those factual findings before the High Court.
- On law, the Court relied on the line of Apex Court authorities (notably State of Bombay v. Hospital Mazdoor Sabha and State Bank of India v. N. Sundaramony) which establish that S.25-F (and pari materia provisions such as S.6-N) prescribe a condition precedent to retrenchment and that if a workman falls within the scope of that section he cannot be retrenched without fulfilling the statutory requirement (including payment as prescribed) at the time of retrenchment.
- The Court considered the petitioners' submission of "substantial compliance" (including reliance on Ratnesh Hydromachs and B.N. Elias) but concluded that the Apex Court's law on mandatory compliance with S.25-F/S.6-N governs the matter. Given the Tribunal's findings of non-compliance and the settled principle that non-compliance renders the retrenchment invalid, the High Court found no ground to interfere with the Tribunal's award.
Holding and Implications
DISMISSED. The writ petition filed by the petitioners (U.P. State Electricity Board) is dismissed.
Direct consequences and practical effects:
- The Industrial Tribunal's award holding that the termination/retrenchment was invalid for non-compliance with S.6-N (pari materia to S.25-F) remains undisturbed.
- The interim order, if any, granted in the writ petition is vacated.
- The parties were directed to bear their own costs.
No broader or novel precedent was created by this opinion; the Court applied and followed existing Apex Court authority on the mandatory nature of S.25-F/S.6-N compliance.
1. The petitioners-employers Uttar Pradesh State Electricity Board, by means of present writ petition under Art. 226 of the Constitution of India, have challenged the award of the Industrial Tribunal (I), U.P, at Allahabad (hereinafter referred to as the Tribunal), dated 9 August, 1985, copy whereof has been annexed as Annexure 1 to the writ petition.
2. The facts leading to the filing of present writ petition are that the contesting respondent-workman, namely, Mohd. Jameel was employed with the employers, as would be clear from the narration of fact and the written statement filed by the parties and referred to by the Tribunal in the award, which reveals that “the workman concerned Mohd. Jameel was employed as pump operator-cum-electrician with the employers with effect from 1 June, 1977. The services of the workman concerned were wrongfully terminated by the employers on 1 February, 1979. The workman through the respective union raised an industrial dispute, which was referred to the Industrial Tribunal, Allahabad, and was registered by the Tribunal as Adjudication Case No. 168 of 1980. The Tribunal vide its award, dated 17 August, 1981, published on 3 October, 1981, held that the termination of the workman concerned Mohd. Jameel from service by the employers was illegal. The Tribunal directed for reinstatement with continuity of service and back-wages for the workman. The workman concerned thereafter moved an application that under S. 6-E of the U.P Industrial Disputes Act, 1947 (hereinafter referred to as the Act), the second issue referred to has not been decided. For disposal of the case, it would be convenient to peruse the reference that has been made by the State Government under S. 4-K of the Act, which runs as under:
3. As already stated, when the services of the workman concerned were terminated with effect from 1 February, 1979, a dispute was raised which has been answered in favour of the workman for reinstatement with continuity of service and back-wages. The Tribunal directed for reinstatement vide its award, dated 17 August, 1981. Pursuant to the aforesaid award, the employers reinstated the workman and started paying Rs. 10 per day, as according to the employers the workman was employed on daily wage basis. In this circumstance, the second issue, which was referred to by the State Government for adjudication, the Tribunal has answered both the issues in favour of the workman by the award impugned in the present petition holding that the termination of the services of the concerned workman with effect from 1 February, 1979, were illegal, inasmuch as the provisions of S. 6-N of the Act, which is pari materia of S. 25-F of the Industrial Disputes Act, 1947, have not been complied with. The Tribunal has also directed reinstatement of the workman with continuity of service and back-wages. With regard to the second issue, the Tribunal have directed that the workman is in continuous service since 1977 and has put in more than eight years till 19 June, 1984. The Tribunal has recorded finding that indeed it is too long a period to keep a workman employed on casual/daily wage basis, which is the connotation of muster-roll employees and, therefore, the Tribunal has directed the employers to consider seriously the possibility of the absorbing the workman concerned on regular basis. Learned counsel for the petitioners-employers have raised the argument that a perusal of the order of termination, dated 19 June, 1984, Annexure 2 to the writ petition, clearly demonstrates that the order purports to comply with all requirements of Ss. 6-N/S. 25-F of the Act, as according to the petitioner's counsel, it is not necessary that the amount as contemplated under Ss. 6-N/25-F of the Act must be paid at the time of the retrenchment, but if the order contemplates the offer to collect the amount contemplated under S. 25-F of the Act, it is the substantial compliance of the said provision and the Tribunal has erred in holding otherwise. A perusal of the termination order, dated 19 June, 1984, clearly demonstrates that it purports to terminate the services of the workman and informs the workman concerned that he may collect the retrenchment compensation and wages for one month's notice. This, according to the learned counsel for the petitioners, amounts to substantial compliance and nothing further is required to be complied with, particularly when there is a report of the peon that when the notice was offered to the workman concerned, he refused to accept the same and told the peon that the same may be sent to his home address, which was admittedly sent after two days, i.e, 21 June, 1984; whereas, as per notice Annexure 2 to the writ petition, the services of the workman stand terminated with effect from 19 June, 1984. Curiously and particularly in the teeth of the denial by the workman concerned that the order of termination was never offered to him and that he never denied to receive the same. The workman also denied that he received the registered letter, which was sent to his home address after three days and he came to know with regard to the termination of his services only when he came to office for collecting the wages at the end of the month. The employers have not produced the person, who was scribe of the report, whereby report has been submitted that with regard to the service of the order of termination, dated 19 June, 1984, to the effect that the workman has refused to accept the same. The Tribunal has further dealt with the working and the calculation, etc., of the retrenchment compensation on the account slip and have arrived at the conclusion that the same has admittedly been done after the termination of the services of the workman with effect from 19 June, 1984. Learned counsel for the petitioners has not disputed, nor challenged the findings recorded by the Tribunal on this account. He thereafter insisted upon that since substantial compliance have been done with regard to Ss. 6-N/25-F of the Act, the view taken by the Tribunal to the contrary, i.e, Ss. 6-N/25-F have not been complied with, deserves to be set aside. Learned counsel for the petitioners has relied upon a decision in Ratnesh Hydromachs v. Labour Court, Hubli, [1985 (1) L.L.N 940]. The another decision relied upon by petitioners' counsel is in B.N Elias and Company (Private), Ltd. v. Fifth Industrial Tribunal of West Bengal, [A.I.R 1965 Cal. 166], in support of this contention.
4. Sri K.P Agarwal, learned senior counsel appearing on behalf of the workman concerned has relied upon a decision of the Apex Court, in State of Bombay v. Hospital Mazdoor Sabha, [A.I.R 1960 S.C 610], which is a judgment of three-Judge Bench. The Apex Court has held:
“On a plain reading of S. 25-F(b) which is pari materia of S. 6-N of U.P Industrial Disputes Act, it is clear that the requirement prescribed by is a condition precedent for the retrenchment of the workman. The section provides that workman shall be retrenched until the condition in question has been satisfied. It is difficult to accede to the argument that when the section imposes in mandatory terms a condition precedent, non-compliance with the said condition would not render the impugned retrenchment invalid. Therefore, we see no substance in the argument that the Court of appeal has misconstrued S. 25-F(b). That being so, failure to comply with the said provision renders the impugned orders invalid and inoperative.”
5. The next decision relied upon by Sri Agarwal is in State Bank of India v. N. Sundaramony, [1975 (2) L.L.N 101], which is equivalent to State Bank of India v. N. Sundaramony, [1976 (2) L.L.N 5], wherein the Apex Court has approved the judgment reported in A.I.R 1960 S.C 600. The Apex Court has held as under, in Para. 8, at page 8:
“Without further ado, we, reach the conclusion that if the workman swims into the harbour of S. 25-F, he cannot be retrenched without payment, at the time of retrenchment, compensation computed as prescribed therein read with S. 25-B(2). But argues the appellant, all these obligations flow only out of retrenchment, not termination outside that species of snapping employment. What, then, is retrenchment? They key to this vexed question is to be found in S. 2(oo), which reads thus:
2(oo) ‘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—
(a) voluntary retirement of the workman; or
(b) retirement of the workman on reaching the age of superannuation if the contract of employment between the employer and the workman concerned contains a stipulation in that behalf; or
(c) termination of the service of a workman on the ground of continued ill-health.”
6. In view of the law laid down by the Apex Court, referred to above, the findings recorded by the Tribunal that the termination of the workman concerned, in the present case, has been done without compliance of the provisions of S. 6-N of the U.P Industrial Disputes Act, 1947, which is pari materia to S. 25-F of the aforesaid Act, do not warrant any interference by means of this writ petition.
7. In view of what has been stated above, this writ petition is devoid of any merits and is accordingly dismissed. The interim order, if any, stands vacated. However, the parties shall bear their own cost.
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