BERAR OIL INDUSTRIES Vs. N.H. MAJUMDAR

JUDGEMENT

(1.) THIS is a petition under Articles 226 and 227 of the Constitution for. quashing the order of the State Industrial Court, Nagpur, declaring that the termination of the services of the employees in the oil mill section, whose services were terminated by the petitioner in pursuance of its notice dated June 23, 19;56, on the ground of want of oilseed, was an illegal change, and further declaring that the imposition of a condition on the employees by the petitioner to the effect that the services of those employees who may bere -employed after stocks are available would be terminated after the completion of the work of crushing the available seed as stated in the notice dated July 24, 1956, was also an illegal change.

(2.) THE relevant facts are briefly these: The petitioner carries on business at Akola and, among other things, is engaged mainly in the manufacture of vegetable ghee and allied products. There are several sections in its undertaking at Akola one of which is engaged in crushing and extracting oil from seed. This section, is known as the oil mill section. There were about 45 persons engaged in this section. By the notice; dated June 23, 1956, they were informed that on account of shortage of raw material and because of certain important trade reasons the oil milt section will be closed with effect from June 25 1956. The notice further stated that the management will try to find alternative employments for the permanent employees but that the services of the temporary employees would stand terminated with effect from June 25, 1956. It further stated that this notice will be regarded as 30 days notice as required by law and that such of the employees, as are entitled for compensation under the law will be given that compensation. By a subsequent notice dated July 24, 1956 the employees in the oil mill section were informed that in view of the arrival of fresh raw materials the working of the mill would be continued only for such short period as may be necessary for crushing the existing stocks of raw material it further stated that an option was given to the workers on the temporary roll whose services had already been terminated to continue to work in the oil mill section of the factory during this short period and further that they would be permitted to return to work subject to the condition that their services would stand terminated on the completion of the crushing work without any further notice being given to them. The permanent employees were informed that. the working of the arrangements as proposed in the notice referred to above will be undertaken, alter the work of crushing seed was finished. Presumably, by this it was meant that these persons would be provided with alternative employments as far as possible.

(3.) THE application of the Union was opposed by the petitioner, firstly, on the ground that the State Industrial Court had no jurisdiction to entertain the application which fell within the jurisdiction of the District Industrial Court, Akola, and, secondly, on the ground that there was no illegal change whatsoever and that what had taken place was a closure. The State Industrial Court held that it had jurisdiction to entertain the application, that what had taken place was not a closure but retrenchment and that this retrenchment was an illegal change. It further held that the terms set out in the notice dated July 24, 1956, also purported to effect an illegal change, and thus granted the application of respondent No. 2 to this extent.