NDLI: Armed Forces Ex Officers Multi Services Cooperative Society Ltd. Vs. Rashtriya Mazdoor Sangh (intuc)

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Service Law – Reinstatement of employees – Drivers-members of the respondent Union were employed by appellant-Cooperative society through a settlement for pay and allowances – The settlement expired –
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Case(s) Referred	Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 Referred Case 5
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Dismissed
Headnote	Service Law – Reinstatement of employees – Drivers-members of the respondent Union were employed by appellant-Cooperative society through a settlement for pay and allowances – The settlement expired – Fresh negotiation commenced – In the negotiations, the employees demanded for a pay hike and permanency of employment – The said demand resulted into failure of settlement – Conciliation proceedings invoked – During pendency of conciliation proceedings employees resorted to strike – After a short span of strike, the employees rejoined services – Appellant retrenched the services of employees on the ground of closure of business – Respondent Union raised the concern regarding the same before the Conciliation Officer and demanded reinstatement – The appellant offered reemployment to employees on new terms and conditions, and as fresh employment – Upon failure of conciliation proceedings matter was referred to Industrial Tribunal – Tribunal set aside the termination of employees and directed reinstatement with continuity of service and 75% back wages – Appellant filed writ petition before the High Court – The High Court affirmed the findings of the Tribunal – Before the Supreme Court, the appellant submitted that, (i) it was not the case of closure but a simple case of retrenchment; (ii) it was a case of re-organising business; (iii) Tribunal was not justified in directing continuity of service; and (iv) direction to pay 75% back wages was contrary to the principles laid down by the Supreme Court – Held: The Tribunal as well as the High Court have held that the method and manner by which the workmen were retrenched clearly demonstrates that it is virtually a closure – These findings of facts are confirmed – The bonafide policy decision for reorganising business is within an enterprise’s propriety decision – However, in the instant case, the Tribunal has come to the conclusion that the entirety of business was not lost due to the strike and the retrenchment was imposed as retribution against the workmen for going on a strike – Thus, bonafide policy decision for reorganising business will not apply to the facts of the instant case – As far as direction of continuity of service and back wages are concerned, the order of retrenchment was not bonafide, once the orders of retrenchment are set aside, the workmen will naturally be entitled to continuity of service with backwages – The Tribunal had considered the matter in detail and after appreciating the oral and documentary evidence, the Tribunal directed reinstatement of the employees with only 75% back wages – The said finding was upheld by the High Court, thus cannot be interfered with by the Supreme Court u/Art.136 of the Constitution.
Judge	Hon'ble Mr. Justice Pamidighantam Sri Narasimha
Neutral Citation	2022 INSC 821
Petitioner	Armed Forces Ex Officers Multi Services Cooperative Society Ltd.
Respondent	Rashtriya Mazdoor Sangh (intuc)
SCR	[2022] 6 S.C.R. 1057
Judgement Date	2022-08-11
Case Number	2393

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