LAWS(CAL)-2002-1-34

S T P LIMITED Vs. SECOND LABOUR COURT

Decided On January 24, 2002
S.T.P.LIMITED Appellant
V/S
SECOND LABOUR COURT Respondents

JUDGEMENT

(1.) Facts: A Scheme was floated for Voluntary Retirement (VRS for short), which is annexure "II" to this writ petition at page 21. This scheme was floated on November 4, 1981. In the scheme there were two categories. First category contained of those, who did not complete 25 years of service and the second category, who had completed more than 25 years of service. In respect of both the categories the gratuity was proposed to be paid in the same manner as quoted in Clause (4) of both the categories, one of which is quoted herein:

(2.) The petitioners had accepted the said V.R. Scheme and were given benefits according to the said scheme. After four years in 1985, the petitioners moved an application under Section 33-C(2) of the Industrial Disputes Act, 1947 before the Labour Court seeking benefit of gratuity in terms of the existing agreement or settlement dated June 4, 1974, which is at page 32 of the writ petition, where a different kind of gratuity was made available to the petitioners, who were transferred from Turner Morison & Co. Ltd. to Shalimar Tar Products (1935) Ltd. A proposal to float a Voluntary Retirement Scheme was mooted by a letter dated March 5, 1981, which was Exhibit "20" before the Labour Court, contained in Annexure "D" to the Affidavit-in-Opposition at page 46. In the said proposal, it was pointed out that gratuity would be paid as per terms of the agreement so far as Lyons Range Office was concerned. Admittedly, staffs of Turner Morison & Co. were at 6, Lyons Range Office. It is contended on behalf of the petitioners that a notice under Section 9-A of the Industrial Disputes Act, 1947, was issued and a change was effected with regard to the service condition, as is apparent from Annexure "D" at page 74 of the writ petition. The said proposal, which was to take effect from September 10, 1981, contained a Clause with regard to gratuity at page 84 of the writ petition, which provided as per existing agreement. Thus, it relates to the 1974 agreement since affirmed by 1976 agreement. Nothing has been shown with regard to any other change relating to gratuity other than what is available to the petitioners by reason of the settlement of 1974 and 1976. It is not in dispute that those settlements are binding between the parties under Section 18 of the Industrial Disputes Act, 1947. The conditions contained in those settlements do form part of the conditions of service. It could, however, be changed under Section 9-A of the Industrial Disputes Act, 1947 and the proposal was so mooted through the letter dated August 17, 1981, which came into effect on September 10, 1981. But then the said proposal did not change the condition relating to gratuity.

(3.) Now a question is raised as to whether in the VRS the entitlement according to service condition could at all be changed.