RADIO AND ELECTRICALS LTD Vs. INDUSTRIAL TRIBUNAL

JUDGEMENT

(1.) THE first writ petition is by the management and the second by the workers to quash the award of the Industrial Tribunal, Madras, The petitioner company had two sections doing two types of work. One was concerned with radio and electricals and the other section was called the mechanical section. On April 30, 1965, they sent a notice, found at page 23 of the typed papers, as follows: To All Retrenched Workers, We regret to state that due to the continuous losses, it is proposed to economise expenditure and avoid futher losses of the company. We have, therefore, decided to restrict our activities by closing down the tank section, comprising of tanks making, tanks testing, tanks cleaning, switches assembly, core clamp fabrication and mechanical accessories. You are therefore informed that in pursuance of the above decision, your services will be terminated with effect from May 1, 1965. In addition to your normal wages up to date you will be paid a month's pay in lieu of notice and compensation as required under Clause (c) of Section 25f of the Industrial Disputes Act, 1947. You will please call at the factory on date and time noted below and receive your dues as above. For Radio and Electricals Ltd. (Sd.)?. Secretary. On the same day they published another notice, found at page 25 of the typed papers, as follows: Notice The results of our company as a manufacturing concern has not been satisfactory, in spite of our best efforts. We have not paid any dividends to the shareholders as we have not made any profits during the last 4 years. There is a persistent demand from the shareholders that the working results of the company should be bettered. Under the normal circumstances, we should have closed down the entire company, but we considered that it would be a national loss. So, as an alternative, we propose to restrict our activities by closing down the section, which is contributing to good portion of the loss, without which the rest of the activities can be carried on, as is the common practice. We have, therefore, decided to close down the entire mechanical section comprising tanks making, tanks testing, tanks cleaning, switches assembly, core clamp fabrication and mechanical accessories, with effect from May 1, 1965. It is hoped that this will be giving the company the last and only chance to survive and recover from the losses. For Radio and Electricals Ltd. , (Sd.)?. Secretary. Forty-eight workers were involved in this and 28 of them have received whatever was due to them and have not raised any disputes. The dispute that was referred to the Industrial Tribunal and has been decided by it refers to the other 20 workers.

(2.) THE award is set out at pages 10 to 14 of the Fort St. George Gazette dated November 16, 1966. The points for determination were set out as follows:

(3.) ALL the points were found in favour of the management except point 3. The reasoning of the Industrial Tribunal as regards that point is found at paragraphs 12 to 14 of the order, In the result, the tribunal held that the retrenchment, though justifiable, is not valid, because of non-compliance with the mandatory condition prescribed under Section 25f of the Industrial Disputes Act, and the management was directed to pay each of the remaining 20 workers, whose names were mentioned in the earlier part of the order, half of the basic wages from the date of the retrenchment till the date of order, in addition to the retrenchment compensation, wages in lieu of notice and other dues already offered by the management. It is to quash this order that the management have filed their writ petition. The workers have filed their writ petition-because, according to them, the Industrial Tribunal should have ordered reinstatement rather than retrenchment compensation.