WALPORD TRANSPORT LIMITED Vs. STATE OF WEST BENGAL

JUDGEMENT

(1.) IN this rule, an order made by the 5th Industrial Tribunal, West Bengal, respondent No. 2, on a preliminary point being raised by the petitioner Company, against a reference under section 10 (1) of the Industrial disputes Act , 1947 (hereinafter referred to as the said Act), has been impeached.

(2.) THE petitioner Wellford Transport Limited (hereinafter referred to as the said Company), is a public limited Company within the meaning of the Indian Companies Act and is a dealer and distributor of motor vehicles, having branches in West Bengal and other States. For such, business, the said Company maintains more than one Workshop, one of which is located at 21/1, Darga Road, P. O. Beniapukur, Calcutta (hereinafter referred to as the said Workshop), It has been contended by the said Company that the said Workshop had 2 wings, one for repairs of used motor vehicles of outside customers known as paying section, and the other for servicing of Scooters. It has been contended by the said Company that there are 2 registered Trade Unions, one under the name and style of Automobiles Sales Staff Association of West Bengal (Respondent No. 3) and the other under the name and style of Wellford Transport Workers' Association.

(3.) THE said Company has alleged that for some time the said Workshop was running at a loss and as such, the said Company by a notice dated April 17, 1972, informed all concerned about the said facts and also requested that unless the employees concerned would work hard to make the said Workshop viable, they would have no way out but to close down the said Workshop. Admittedly, a copy of the said notice was sent to the appropriate Labour Commissioner. It has further been alleged that as the position did not improve, the said Company again issued another notice on September 4, 1972 and by that, they informed all concerned, that to avoid a complete closure of the said Workshop, a drastic cut in the establishment was indispensable and 2 courses were open viz. , (1) retrenchment of staff on payment of statutory compensation and (2) voluntary retrenchment of those employees who were aged 50 on April 1, 1972. By the said notice, the employees concerned were requested to elect their choice and to exercise necessary option. The employees, according to the said Company, did not accept the said voluntary retirement scheme and as such the loss which was being sustained by the said Company continued and as a result thereof, they decided to retrench workmen in the said Workshop following the principle of last come first go, and on that basis another notice dated November/december 6, 1972 was issued. This was also without any effect and as no solution could be evoked for the purpose of avoiding the circumstances as mentioned hereinbefore, the said Company in terms of section 25ffa of the said Act, which is to the following effect: section-25ffa: Sixty days' notice to be given of intention to close down any undertaking-- (1) An employer who intends to close down an undertaking shall serve, at least sixty days before the date on which the intended closure is to become effective, a notice, in the prescribed manner, on the appropriate Government stating clearly the reasons for the intended closure of the undertaking; provided that nothing in this section shall apply to- (a)an undertaking in which- (i) less than fifty workmen are employed, or (ii) less than fifty workmen were employed on an average per working day in the preceding twelve months. (b)An undertaking set up for the construction of buildings, bridges, roads, canals, dams or for other construction work or project. (2) Notwithstanding anything contained in sub-section (1), the appropriate Government may, if it is satisfied that owing to such exceptional circumstances as accident in the undertaking or death of the employer or the like it is necessary so to do, by order, direct that provisions of sub-section (l) shall not apply in relation to such undertaking for such period as may be specified in the order". Sent the required notice of 60 days under registered post to the Labour Commissioner. The said notice was dated December 11, 1972 and was intended to close down a part of the said Company's paying section of the said Workshop. A copy of the said notice was also sent to the said Respondent no. 3 Union and the notice in question was admittedly received by the Labour Department on December 14, 1972.