NDLI: Uptron India Ltd. Vs. Shammi Bhan and Anr.

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	1947: S. 2(oo) 1872 Industrial Disputes Act 1946 Contract Act Labour Law: Industrial Employment (Standing Orders) Act
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Act(s) Referred	Industrial Disputes Act, 1947 (14 of 1947) Industrial Employment (standing Orders) Act, 1946 (20 of 1946)
Case Type	Special Leave Petition
Court	Supreme Court of India
Disposal Nature	Petition Dismissed
Headnote	Labour Law: Industrial Employment (Standing Orders) Act, 1946 :Objects-Employment-Under industrial law-Concept of-Transition from contract to status under labour law enactment-Explained. Contract Act, 1872 : General principles-Service contracts-Terms and conditions- Applicability of-Stated-Confirmation-Held : Guarantees security of tenure-Hence, services of a permanent employee in an establishment, which is 'State' under Art. 12 cannot be terminated abruptly and arbitrarily by giving a simple notice-Constitution of India, 1950, Art. 12. Unauthorised absence-Automic termination of service-Permissibility of-Held: The expression "liable to automatic termination" in the Certified Standing Orders confers discretion upon the management to terminate or not to terminate the services of a permanent employee who overstays leave-Such discretion cannot be exercised capriciously-Principles of natural justice have to be read into the relevant clause-Therefore, the affected employee must be given an opportunity of hearing-Hence, a provision in Certified Standing Orders providing for automatic termination of service is bad unless it is directly related to production in a factory or an industrial establishment-Administrative LawIndustrial Disputes Act, 1947 : Section 2(oo).Retrenchment-Definition of-Held : is conclusive. Section 2(oo)(bb)-Unauhorised absence-Automatic termination of service-Certified Standing Orders-Provided for atomatic termination of services of a workman if he overstayed on leave without permission for more than seven days-Validity of-Held : In the absence for a fixed term of contract termination of service in pursuance stipulation in the Certified Standing Orders is not covered by S. 2(oo)(bb)-Hence, auotmatic termination in such cases amounts to retrenchment under S. 2(00). Practice and Procedure : Wrong concession on-Question of law-Made by counsel-Held : Not binding on his client-Further, such concession cannot constitute a binding precedent. The respondent was a confirmed employee of the petitioner, and acquired the status of "permanent" employee. The respondent's services were terminated due to her overstay on leave without permission in terms of clause 17(g) of the Certified Standing Orders, which provided for automatic termination if a workman overstayed on leave.The respondent raised an industrial before the Industrial Tribunal which held that the termination of services of the respondent amounted to "Retrenchment" within the meaning of Section 2(oo) of the Industrial Disputes Act, 1947. The Tribunal further held that since all other legal requirements had not been followed, the termination was bad and that the respondent had to be reinstated with fifty per cent back wages.The High Court dismissed the writ petition filed by the petitioner and held that while invoking the provisions of clause 17(g) of the certified Standing Orders, the respondent ought to have given an opportunity for hearing. Hence, this Special Leave Petition.On behalf of the petitioner it was contended that as per remarks of this Court in an earlier case provision for automatic termination of services · could be validly made .in the Certified Standing Orders and therefore, automatic termination of services of the respondent for overstay on leave was valid.
Judge	Hon'ble Mr. Justice S. Saghir Ahmad
Neutral Citation	1998 INSC 74
Petitioner	Uptron India Ltd.
Respondent	Shammi Bhan And Anr.
SCR	[1998] 1 S.C.R. 719
Judgement Date	1998-02-06
Case Number	1079

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