M T CHANDRASEKHARAN Vs. OFFICIAL LIQUIDATOR

JUDGEMENT

(1.) In the light of the decision in General Secretary, Palai Central Bank Employees Union v. Official Liquidator, Palai Central Bank Ltd., ( 1965 KLT 4 ), we agree with the learned Judge that the termination of the services of the 510 employees of the Company in this case, is not retrenchment but only a termination of service on the closure of the industry.

(2.) Viewed as a closure, as it is only by stages, we think, that as a principle of justice, equity, and good conscience, the principle of last come first go embodied in S.25G of the Industrial Disputes Act should be followed by the Liquidator. In the light of the said principle, the Official Liquidator will review the termination of the services already made and the rights of 510 employees will be adjusted accordingly.

(3.) In directing that the principle of last come first go should be followed, we should not be understood as denying altogether any latitude to the Official Liquidator. Indeed, it has been made clear by the Supreme Court in the decision in M/s. Swadesamitram Limited, Madras v. Their Workmen ( AIR 1960 SC 762 ) that :