Case: Employers Of Thungabhadra Industries Ltd Vs. The Workmen And Another

erroneous. The judgment of this Court in Management of Bangalore Woollen, Cotton and Silk Mills CO. Ltd. case, (1968) 1 SCR 581 =(AIR 1968 SC 585 ) though referred to, has not been properly appreciated. The Division Bench missed the important circumstance that the union must establish the point of time when the previous award has been terminated. Therefore, the question that should have been tackled was whether on March 8, 1968, when the charter of demands was submitted, there has been a proper termination of the previous award, as required under Section 19 (6). The fact that the workmen went on a strike subsequently may indicate that they are dissatisfied with the refusal of the management to accede to their demands. But that will not satisfy the requirement under Section 19 (6). The fact that the appellant participated in the conciliation proceedings held by the Conciliation Officer, which is also on a subsequent date, is also of no importance. When a strike is on, it is obligatory on the part of the Conciliation Officer to initiate conciliation proceedings and the management had acted properly in participating in the conciliation proceedings. But it is to be noted that in the report dated June 24, l 968, the Conciliation Officer had clearly stated that with regard to the demand for categorisation and scales of pay, the management were not inclined to consider the same, as they had been fixed by the award in I D. No. 20 of 1957 and that the said award had not been terminated so far. Therefore the stand of the appellant as on April 30, 1968, the date when the conciliation proceedings were held, was that the previous award had not been terminated by the union.12. Mr.Ramamurthi, learned counsel for some of the workmen, pointed out that the serving of a charter of demands clearly shows that the union had terminated the award.In our opinion, this contention cannot be our accepted, because it does not satisfy the requirement of Section 19 (6).This Court has held in Management of Bangalore Woollen, Cotton and Silk Mills Co. Ltd. case, (1968) 1 SCR 581 = (AIR 1968 SC 585 ),that regarding the termination of an award, it must be fixed with reference to a particular date so as to enable a court to come to the conclusion that the party giving that intimation has expressed its intention to terminate the award.Such certainty regarding the date is quite essential because the period of two months, after the expiry of which the award ceases to be binding on the parties, will have to be reckoned from the date of such clear intimation regarding the termination of the award.13. Though there is no particular form in which the notice of termination has to be given, still it is absolutely essential that the intention to terminate the award, with reference to a particular date, must be made clear by the parties, who set up a case of termination. In the instant case, after going through the charter of demands, we are satisfied that it does not give any indication that the previous award has been terminated. Even assuming that by the charter of demands on March 8, 1968, the award was terminated, nevertheless, it Will continue to be in force for a further period of two months from that date under Section 19 (6). The fact that the workmen went on strike from April 15, 1968, even before the expiry of this two months period, is an indication that they were dissatisfied with the refusal by the management to accede to their demands. If really they had terminated the award on March 8, 1968, it is unreasonable to hold that the workmen would have gone on an illegal strike before the expiry of two months from the said date.14. The decision in the Work men of Western India Match Co. Ltd. v. The Western India Match Co. Ltd. (1963) 2 SCR 27 which has been relied on by the Division Bench and also by Mr. Ramamurthi before us, ha been explained by this Court in Management of Bangalore Woollen, Cotton Silk Mills Co. Ltd. case, (1968) 1 SCR 581 = (AIR 1968 SC 585 ). The distinctive features and the particular circumstances under which the said decision was given, have not been properly appreciated by the Division Bench Mr. Ramamurthi urged that in The Workmen of Western India Match Co Ltd. case, this Court has accepted the position that the charter of demand, and various representations made by the workmen, which were inconsistent with an award already in force, will lead to the inference of an intention by the workmen to terminate the previous award.We are not inclined to accept this contention of the learned counsel. The said decision of this Court did not accept the position that the mere making of demands, without anything more, will amount to a termination of a previous award. On the other hand ignoring the charter of demands as well as the various representations made by the union, this Court in the said decision held that the letter dated 8-4-1957, written by the union, had the effect of giving notice to the management about termination of the settlement. It was after fixing this date as the date of termination of the settlement, this Court further held that the reference made by the State Government long after the expiry of two months from the said date, was competent. In fact the said decision is against the view taken by the Division Bench of the High Court in the case before us and the view which was sought to be supported by Mr. Ramamurthi.15. We are not inclined to agree with the view of the Division Bench that there has been a termination of the award in I. D. No. 20 of 1957. If so, the Industrial Tribunal as well as the learned single Judge were right in holding that the present reference dated July 25, 1958, is incompetent.

Decision (1 = appeal accepted, 0 = rejected): 1

Explanation:
1[ds]11.The approach made by the learned Judges of the Division Bench is erroneous. The judgment of this Court in Management of Bangalore Woollen, Cotton and Silk Mills CO. Ltd. case, (1968) 1 SCR 581 =(AIR 1968 SC 585 ) though referred to, has not been properly appreciated. The Division Bench missed the important circumstance that the union must establish the point of time when the previous award has been terminated. Therefore, the question that should have been tackled was whether on March 8, 1968, when the charter of demands was submitted, there has been a proper termination of the previous award, as required under Section 19 (6). The fact that the workmen went on a strike subsequently may indicate that they are dissatisfied with the refusal of the management to accede to their demands. But that will not satisfy the requirement under Section 19 (6). The fact that the appellant participated in the conciliation proceedings held by the Conciliation Officer, which is also on a subsequent date, is also of no importance. When a strike is on, it is obligatory on the part of the Conciliation Officer to initiate conciliation proceedings and the management had acted properly in participating in the conciliation proceedings. But it is to be noted that in the report dated June 24, l 968, the Conciliation Officer had clearly stated that with regard to the demand for categorisation and scales of pay, the management were not inclined to consider the same, as they had been fixed by the award in I D. No. 20 of 1957 and that the said award had not been terminated so far. Therefore the stand of the appellant as on April 30, 1968, the date when the conciliation proceedings were held, was that the previous award had not been terminated by theour opinion, this contention cannot be our accepted, because it does not satisfy the requirement of Section 19 (6).This Court has held in Management of Bangalore Woollen, Cotton and Silk Mills Co. Ltd. case, (1968) 1 SCR 581  = (AIR 1968 SC 585  ),that regarding the termination of an award, it must be fixed with reference to a particular date so as to enable a court to come to the conclusion that the party giving that intimation has expressed its intention to terminate the award.Such certainty regarding the date is quite essential because the period of two months, after the expiry of which the award ceases to be binding on the parties, will have to be reckoned from the date of such clear intimation regarding the termination of the award.13. Though there is no particular form in which the notice of termination has to be given, still it is absolutely essential that the intention to terminate the award, with reference to a particular date, must be made clear by the parties, who set up a case of termination. In the instant case, after going through the charter of demands, we are satisfied that it does not give any indication that the previous award has been terminated. Even assuming that by the charter of demands on March 8, 1968, the award was terminated, nevertheless, it Will continue to be in force for a further period of two months from that date under Section 19 (6). The fact that the workmen went on strike from April 15, 1968, even before the expiry of this two months period, is an indication that they were dissatisfied with the refusal by the management to accede to their demands. If really they had terminated the award on March 8, 1968, it is unreasonable to hold that the workmen would have gone on an illegal strike before the expiry of two months from the said date.We are not inclined to agree with the view of the Division Bench that there has been a termination of the award in I. D. No. 20 of 1957. If so, the Industrial Tribunal as well as the learned single Judge were right in holding that the present reference dated July 25, 1958, is incompetent.