Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 25FFF 25J 2(00)-Closure of undertaking-Retrenchment-Transfer of assets to new company on appointed day i.e. on the date of enactment of the I 980 Acquisition Act-Claim 25FF 25H Labour Laws: Industrial Disputes Act 1947-Sections 25F |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Labour Laws: Industrial Disputes Act, 1947-Sections 25F, 25FF, 25FFF, 25H, 25J, 2(00)-Closure of undertaking-Retrenchment-Transfer of assets to new company on appointed day i.e. on the date of enactment of the 1980 Acquisition Act-Claim of retrenched workmen for re-employment in new company-- Maintainability of-Held, in case of transfer or closure of undertaking, workmen are entitled to receive compensation only-Reemployment cannot be sought as they were not in employment of the company before appointed day-Expression "as if' used in Section 25FF and Section 25FFF relates only to computation of compensation in terms of Section 25F and not the other consequences flowing therefrom-Maruti Limited (Acquisition and Transfer of Undertakings) Act, 1980-Section 13. Interpretation of statutes: Deeming provision-Legal fiction-Jn construing, the purpose for which it is created should be kept in mind and not to be extended beyond the scope thereof or beyond the language by which it is created-Deeming provision not to be pushed too far as to result in an anomalous or absurd position. Words and phrases-'As if'-Meaning of in the context of Section 25FF and S. 25FFF of Industrial Disputes Act, 1947. Respondents were workmen in Maruti Ltd. (erstwhile company). Their services stood terminated in 1977 as a result of closure of factory. In terms of settlement with the official liquidator, retrenched workmen were paid one month's salary in lieu of notice. In 1980, Parliament enacted Maruti Limited (Acquisition and Transfer of Undertakings) Act, 1980 for the purpose of utilisation of production activities and equipment of erstwhile company. By virtue of this Act, assets of erstwhile company vested in Central Government w.e.f. 13.10.1980. However, in 1981, Central Government issued a notification directing that its right, title and interest in relation to the undertakings of erstwhile company shall vest in the appellant company. Workmen of erstwhile company filed writ petition in this Court seeking direction for re-employment in appellant company, which was dismissed in limine. Sometime later, respondents raised industrial dispute seeking reemployment in terms of S. 25-H of Industrial Disputes Act, 1947. Labour Court held that appellant company is successor-in-interest of erstwhile company and was liable to re-employ respondents with back wages. Aggrieved appellant company filed writ petition. Single Judge of High Court set aside the award of Labour Court. Respondent filed Letters patent appeal, which was allowed. Hence the present appeal. Appellant-company inter alia contended that the appellant is not successor-in-interest of the erstwhile company; that respondents had been paid compensation in terms of S. 25FFF of 1947 Act, and hence S. 25H thereof would have no application having regard to the definition of retrenchment contained in S. 2(oo) thereof; that there is no provision in the Act for taking over the liability of erstwhile company and as same contains non-obstante clause, provisions thereof would prevail over the 1947 Act. Respondent contended that with a view to give effect to S.13 of Acquisition Act, termination of employment by erstwhile company should be held to be a retrenchment under S. 25F of 1947 Act. Alternatively it was contended that in view of fact that the term 'workmen' is used in S. 25F, 25FF, 25FFF would include retrenched workman; that S. 25H should be held to be applicable having regard to non-obstante clause contained in S. 25J thereof. |
Judge | Hon'ble Mr. Justice S.B. Sinha |
Neutral Citation | 2005 INSC 50 |
Petitioner | M/s. Maruti Udyog Ltd. |
Respondent | Ram Lal And Ors. |
SCR | [2005] 1 S.C.R. 790 |
Judgement Date | 2005-01-25 |
Case Number | 2846 |
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