NATIONAL TEXTILE CORPN Vs. LABOUR COURT

JUDGEMENT

(1.) The short question for consideration in this O.P. is whether the impugned provision in Exts. P1 and P2 is liable to be struck down as violative of the provisions of Art.14 and 16 of the Constitution of India.

(2.) Vijayamohini mills was a private sector undertaking. On 20-12-1973 the management entered into Ext. P1 settlement with the unions representing the employees. Age of retirement was fixed at 56. Any employee who put in 10 years of service but did not complete 56 years was given the option for voluntary retirement or resignation. Such of the employees who put in 10 years of service was also given the option on voluntary retirement, resignation or retirement on superannuation to nominate one of his relatives to be appointed in his place.

(3.) The undertaking became a sick unit and was taken over by the Central Government. On 1-4-1976 it was handed over to the National Textile Corporation, a company fully owned by the Government of India. Thus it became a public sector undertaking and came within the definition of "State" under Art.12 of the Constitution. Thereafter Ext. P1 was modified by Ext. P2 providing the qualifying service as 16 years instead of 10 years under Ext. P1. So also production of a certificate of relationship was made obligatory for the appointment.