RAMCHANDRA KESHAV GADHAVE Vs. BELAPUR SUGAR MILLS LTD

JUDGEMENT

(1.) Both these petitions which arise out of claims for retrenchment compensation made by the employees of the Belapur Sugar Mills Ltd. employed at the Gangapur Sugar Mills at Gangapur raise common questions as to whether the closure of the Gangapur Sugar Mills was on account of unavoidable circumstances beyond the control of the employer within the meaning of the proviso to S.' 25FFF of the Industrial Disputes Act, 1947 (hereinafter referred to as "the Act"). There are other claims of minor nature involved in both these petitions to which we shall refer later.

(2.) The facts relating to the closure of the Gangapur Sugar Mills are not now in dispute. The Mills owned by the Belapur Sugar Mills Ltd. employed more than 300 employees out of whom the services of about 275 employees were terminated in September, 1967. The Gangapur Sugar Mills were taken on leave and licence by the Ganganagar Sakhar Karkhana Ltd., which is a co-operative society formed by the sugarcane growers at Gangapur and in the surrounding area. The services of the petitioners were loaned to the co-operative society, but on 10th July, 1970 the society informed the petitioners that their services were being returned to the Belapur Sugar Mills. The services of the present petitioners were terminated with effect from 11th July, 1970. The notice terminating the employment of the petitioners stated that the staff and workers of the Gangapur Sugar Mills were informed that their services were no more required and shall, therefore, stand terminated on and from 16th July, 1970. They were told by the notice that they should receive their final payment on production of clearance certificate as usual.

(3.) As a result of this termination, two separate applications came to be made before the Labour Court at Pune. Application No. (ID) 7 of 1971 was made by 42 employees and Application No. 11 of 1971 was made by 9 employees. The claim in the applications u/s. 33C (1) and (2) was that the employer Gangapur Sugar Mills Ltd. had not followed the procedure prescribed in S, 25F of the Act and, therefore, the retrenchment was illegal and improper. Thus retrenchment compensation was claimed and in addition, different amounts alleged to be due by way of gratuity, payment in lieu of earned leave, notice pay, bonus and difference in wages on account of recommendations of the Second Central Wage Board were claimed.