MANAGEMENT OF HINDUSTAN STEEL LIMITED Vs. WORKMEN

JUDGEMENT

(1.) The Management of Hindustan Steel Ltd., Ranchi challenges in this appeal by special leave, the award made by the Industrial Tribunal, Bihar, Patna dated July 20, 1970 on a reference of the following industrial dispute between the management and their workmen represented by Hindustan Steel Ltd. Employees' Union, Ranchi:

(2.) According to the written statement filed by the Management Shri R. Venkatesan Naidu, the workman concerned (hereinafter to be referred as Shri Naidu) was recruited to the work-charged establishment of the Ranchi Housing Project undertaken in 1960 on a consolidated salary of Rs. 250/- p.m. He was recruited in March, 1960 and it was made clear to him that the post was purely temporary subject to termination with or without notice. Shri Naidu joined duty on March 15, 1960 after accepting those conditions. He later applied for the post of Overseer in the same establishment of the Ranchi Housing Project in response to an advertisement and an offer for his appointment as an Overseer was made to him on June 15, 1960, clearly stating that his appointment would continue upto March 31, 1961 though it would be extended in case his services were to be required beyond that date. This appointment was also stated to be purely temporary terminable at any time without assigning any reason and without giving any notice. Shri Naidu assumed charge of the post of Overseer on June 20, 1960. The construction and the connected residuary work relating to the Ranchi Housing Project were over by the end of the year 1966 and it was decided to wind up this project and retrench 13 workmen employed in four categories with effect from December 31, 1966 after giving notices and paying compensation to the workmen concerned. The services of three executive and two Overseers (Shri Naidu and Shri Verghese) were retained for some time in order to finalise accounts and to carry on some residuary work in connection with the said project. The management tried to secure employment to those five persons in the sister units of the Hindustan Steel Ltd., or sister public undertakings like Bokaro Steel Ltd., but without success. Shri Naidu, it is stated, did not possess any basic qualifications laid down by Bokaro Steel Ltd. The tenure of the posts held by these five persons was extended upto June 30, 1968. The departmental committee consisting of senior officers considered their cases for absorption in suitable posts in the Central Engineering and Design Bureau. As Shri Naidu had upto Class IX only and did not possess any technical qualification he could not be taken in any concern. It was in these circumstances that according to the management Shri Naidu's services were retrenched with effect from the afternoon of June 29, 1968. The financial concurrence for the continuance of the Ranchi Housing Project (Residuary work) also expired on the same date with the result that it was not possible any longer to retain Shri Naidu's services and his retrenchment was necessary. It was denied that big bosses of Hindustan Steel Ltd., did not like Shri Naidu because he had refused to oblige them whenever they made dishonest requests. Shri Naidu's retrenchment was accordingly stated to be quite proper, justified and legal and the action taken quite fair and bona fide. There was thus no question of any unfair labour practice or victimisation of Shri Naidu.

(3.) The case on behalf of the workmen was represented by the General Secretary of the Union. It was pleaded on behalf of the workmen that prior to joining Hindustan Steel Ltd., Shri Naidu had been serving as a construction foreman in the Damodar Valley Corporation Ltd., during the period 1950 to 1957 and that on February 18, 1960 he applied to the Hindustan Steel Ltd., for a technical post mentioning his qualifications for the post applied for. He was interviewed and after testing his merits for the job of Works Supervisor he was offered the same on March 10, 1960. Later he was offered the job of an Overseer and he joined that post on May 20, 1960. He worked efficiently to the satisfaction of all concerned but was served with a charge-sheet on June 10, 1964 on the ground that there was some shortage of steel rods. After an enquiry he was found guilty and on the recommendations of the enquiry committee he was dismissed with effect from January 13, 1965. Shri Naidu approached the Presiding Officer, Labour Court, Ranchi under S. 25 of the Bihar Shops and Establishments Act, 1953 complaining against his dismissal and the Presiding Officer on April 13, 1966 held the order of dismissal as unjustified and illegal and ordered his reinstatement. He resumed his duties on receipt of the office order on 7/10 May, 1966. But some big bosses of the management were not happy on account of his reinstatement with the result that he was again charge-sheeted on May 12, 1966 on the ground that he had falsely stated that he had passed the Senior Cambridge Examination. Shri Naidu filed a civil suit for a declaration that the proceedings initiated by the employer were mala fide. But during the pendency of that suit he was served with a retrenchment order dated June 29, 1968 purporting to be under S. 25F of the Industrial Disputes Act, 1947 (hereinafter called the Act) which, according to Shri Naidu was mala fide and unjustified.