S DURAISAMY Vs. MANAGING DIRECTOR

JUDGEMENT

(1.) THE first respondent Anglo French Textiles is a unit of Pondicherry Textile Corporation, Ltd., Pondicherry, a company created under the Companies Act and it is a Government of Pondicherry undertaking. Originally, the Anglo French Textiles, Ltd., was a private concern and was owning a mill, which was one of the largest Mills in the Union Territory of Pondicherry and it was functioning till July 1983 and thereafter, there was no manufacturing process. Since the efforts of the Government of Pondicherry to reopen the mill by negotiations with the private management and the Trade Union Leaders failed it has promulgated the Anglo French Textiles, Ltd. (Acquisition and Transfer of Textile Undertaking) Act, 1986 and the mill was taken over by the Government of Pondicherry with effect from 24 December 19 8 5 by promoting a Government company in the name and style of Pondicherry Textile Corporation, Ltd. It is seen from the materials placed on record that the appellants herein, who were the employees of the Anglo French Textiles, Ltd., were removed from their services on some charges of instigation of strike, misbehaviour, etc., and the particulars regarding their removal are as follows :

(2.) AGGRIEVED over their removal, the appellants have raised industrial disputes before the Labour Court, which has ordered for their reinstatement with half/full wages and subsequently by virtue of the orders passed in various forums, they have also received their compensation. In this backdrop, the appellants herein have filed W.P. No. 9019 of 1993, praying to issue a writ of mandamus, directing the first respondent to provide them re -employment with effect from the date when their juniors and freshers were appointed. The appellants would contend that since the present Corporation is a successor in interest to the erstwhile Anglo French Textiles, Ltd., they will have to discharge those obligations which the previous employer has to discharge, had the undertaking not been transferred and on such obligation, there is right to re -employment under S. 25H of the Industrial Disputes Act. They would further submit that the mill is under statutory obligation to give re -employment because they have taken over the assets and liabilities of the previous Mill Anglo French Textiles, Ltd.

(3.) IT is their specific case that the reliance on S. 25H of the Industrial Disputes Act by the appellants/petitioners for seeking reemployment is untenable in view of the express provision contemplated under S.ll(3)(&,) of the Act, which says that ''a person whose services stand terminated under Sub -cl. (1) of Cl. (a) shall not be entitled to claim employment in the Corporation as of right ' and therefore, the persons who have not been employed by the Pondicherry Textiles Corporation, Ltd., before the designated date, i.e., 25 June 1986 are not entitled for employment by way of right subsequently. It is also submitted that the provisions of the said Act, clearly reveal that neither the Government nor the Corporation, viz., the first respondent herein shall be liable for any liability of the owner of textile undertaking in respect of any liability for the period prior to the appointed date and as such claim cannot at all be enforced against the Government or the respondent -Corporation.