Case: R. B. Bansilal Abirchand Milis Co. Ltd Vs. Labour Court Nagpur &amp; Ors

order that the respondent could claim the benefit of S. 25-F it was obligatory on her to show that she had worked for 240 days in each year of service for which the claim was made. This Court found that the appellant had not taken the plea in its written statement and that there had been a lay-off or a lock-out and that it had only submitted that the closure in accordance with the notice did not fall within the scope of S. 25-FFF of the Act. By issues 6 and 7 the appellant raised questions as to whether the closure had resulted in the retrenchment of the applicant and whether the closure was beyond the control of the employer. No dispute was raised about the factum of closure. Strangely enough it was urged before this Court that "there could be no closure because the appellant was merely protesting against irresponsible action of the Government and had no intention to close the business permanently." The Court found that the question of lockout was not mooted when the issues were settled nor had any plea been taken that there had been a temporary cessation of work under Standing Orders No. 11. In our view, the observations in this case do not help the appellants before us. 22. In Sawatram Mills v. Baliram, (1966) 1 SCR 764 = (AIR 1966 SC 616 ) the claim of the workmen for lay-off during a certain period before the Second Labour Court Bombay was resisted inter alia on the ground that the said court had no jurisdiction as the dispute fell to be tried under the C. P. and Berar Industrial Disputes (Settlement) Act, 1947, and, secondly, the application under S. 33-C was incompetent because it was not a claim for money due and calculations had to be made for ascertaining the sum due. On a construction of the sections of the Industrial disputes Act this Court held that:"Compensation for lay-off could only be determined under Chapter V-A of the Industrial Disputes Act and the workmen were entitled under S. 33-C (1) to go before the Second Labour Court to realise moneys due from their employers under Chapter V-A." The Court also negatived the contention that the Industrial Disputes Act did not apply but the C. P. and Berar Industrial Disputes (Settlement) Act did as the State Act made no mention of lay-off or compensation for lay-off. The other argument was rejected following the judgment in Kays Construction Co. (P) Ltd. v. State of U. P. (1965) 2 SCR 276 = (AIR 1965 SC 1488 ). 23. In substance the point urged by the appellants was that if a claim is made on the basis of a lay-off and the employer contends that there was no lay-off but closure, it is not open to a labour court to entertain an application under S. 33-C (2). The more so it was stated, when the dispute was not between a solitary workman on the one hand and the employer on the other but a whole body of workmen ranged against their employer who was faced with numerous applications before the Labour Court for computation of benefit in terms of money. As has been said already the Labour Court must go into the matter and come to a decision as to whether there was really a closure or a lay-off. If it took the view that there was a lay-off without any closure of the business it would be acting within its jurisdiction if it awarded compensation in terms of the provisions of Chapter V-A. In our opinion the High Courts conclusion that"In fact the business of this Company was continuing. They in fact continued to employ several employees. Their notices say that some portions of the mills would continue to work" was unexceptionable. The notices which we have referred to can only lead to the above conclusion. The Labour Courts jurisdiction could not be ousted by a mere plea denying the workmans claim to the computation of the benefit in terms of money; the Labour Court had to go into the question and determine whether, on the facts, it had jurisdiction to make the computation. It could not however give itself jurisdiction by a wrong decision on the jurisdictional plea." 24. Appearing for the appellant in Civil Appeal No. 2136/66 Mr. Pai contended that his clients liability would only commence after the 1st October ,1960 when it started to run the mill. This point had not been canvassed before the High Court and consequently we cannot entertain it. 25. In the second case Mr. Gupte argued that although his client did not raise the question of liability before, there was no question of any concession and he should be allowed to contest his liability on the basis of the application preferred for urging additional grounds before this Court. As this point was not urged in the court below this application must be refused. 26. The last point urged was that in view of standing Orders 19 and 21 the quantum of compensation had to be scaled down or measured in terms of the Standing Orders. Under Standing Order 19 the employer could, in the event of fire, breakdown of machinery etc. stop any machine or machines or department or departments wholly or partially or the whole or a part of the establishment for any period, without notice and without compensation in lieu of notice. Understanding Order 21, any operative played (sic) off under Standing Order 19 was not to be considered as dismissed from service but as temporarily unemployed and was not to be entitled to wages during such unemployment except to the extent mentioned in Standing Order No. 19.The High Court rightly turned down the contention in view of S. 25-J of the Act under which the provisions of Chapter V-A are to have effect notwithstanding anything inconsistent therewith contained in any other law including Standing Orders made under the Industrial Employment (Standing Orders) Act, 1946.

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

Explanation:
0[ds]18. Section 25-C provides for the measure of compensation to be awarded in cases of lay-off of workers. Section 25-E of the Act however provides inter alia that no compensation shall be paid to a workman who has been laid-off if he does not present himself for work at the establishment at the appointed time during the normal working hours at least once a day19. The claim to compensation of every workman who is laid-off is one which arises under the statue itself and S. 25-C provides for a benefit to the workman which is capable of being computed in terms of money under S. 33-C (2) of the Act. The scheme of the Act being to enable a workman to approach a Labour Court for computation of the compensation claimed by him in terms of S. 25-C of the Act he is not concerned to see whether other co-workers will or will not adopt the same course. The fact that a number of workers make claims of identical nature i.e. to compensation for lay-off, arising out of the same set of facts and circumstances cannot make any difference to the individual workman who prefers the claim. The mere fact that a large number of persons makes a claim of the same nature against the employer, does not change the nature of the dispute so as to take it out of the pale of S. 7 of the Act and render the dispute one which can only be dealt with by an Industrial Tribunal to which reference can be made by the appropriate GovernmentThis Court found that the appellant had not taken the plea in its written statement and that there had been a lay-off or a lock-out and that it had only submitted that the closure in accordance with the notice did not fall within the scope of S. 25-FFF of the Act. By issues 6 and 7 the appellant raised questions as to whether the closure had resulted in the retrenchment of the applicant and whether the closure was beyond the control of the employer. No dispute was raised about the factum of closure. Strangely enough it was urged before this Court that "there could be no closure because the appellant was merely protesting against irresponsible action of the Government and had no intention to close the business permanently." The Court found that the question of lockout was not mooted when the issues were settled nor had any plea been taken that there had been a temporary cessation of work under Standing Orders No. 11. In our view, the observations in this case do not help the appellants before usThe more so it was stated, when the dispute was not between a solitary workman on the one hand and the employer on the other but a whole body of workmen ranged against their employer who was faced with numerous applications before the Labour Court for computation of benefit in terms of money. As has been said already the Labour Court must go into the matter and come to a decision as to whether there was really a closure or a lay-off. If it took the view that there was a lay-off without any closure of the business it would be acting within its jurisdiction if it awarded compensation in terms of the provisions of Chapter V-A. In our opinion the High Courts conclusion that"In fact the business of this Company was continuing. They in fact continued to employ several employees. Their notices say that some portions of the mills would continue to work" was unexceptionable. The notices which we have referred to can only lead to the above conclusion. The Labour Courts jurisdiction could not be ousted by a mere plea denying the workmans claim to the computation of the benefit in terms of money; the Labour Court had to go into the question and determine whether, on the facts, it had jurisdiction to make the computation. It could not however give itself jurisdiction by a wrong decision on the jurisdictional pleaUnder Standing Order 19 the employer could, in the event of fire, breakdown of machinery etc. stop any machine or machines or department or departments wholly or partially or the whole or a part of the establishment for any period, without notice and without compensation in lieu of notice. Understanding Order 21, any operative played (sic) off under Standing Order 19 was not to be considered as dismissed from service but as temporarily unemployed and was not to be entitled to wages during such unemployment except to the extent mentioned in Standing Order No. 19.The High Court rightly turned down the contention in view of S. 25-J of the Act under which the provisions of Chapter V-A are to have effect notwithstanding anything inconsistent therewith contained in any other law including Standing Orders made under the Industrial Employment (Standing Orders) Act, 1946We do not think it necessary to go into this question as the matter can be disposed of even on the basis that it is open to the appellants to raise the question of jurisdiction before this Court although the point was not expressly taken in the grounds for leave to appeal to this Court before the High Court14. We find ourselves unable to accept Mr. Guptes contention. We may in this connection refer to the relevant provisions in the Act. The authorities under the Act are specified in different sections of Chapter II containing Ss. 3 to 9. Under S. 7 it is open to the appropriate Government by notification in the Official Gazette to constitute one or more Labour Courts for the adjudication of industrial disputes relating to any matters specified in the Second Schedule and for performing such other functions as may be assigned to them under the Act. Under S.A the appropriate Government may, by notification, constitute one or more Industrial Tribunals for the adjudication of industrial disputes relating to any matter, whether specified in the Second Schedule or the Third Schedule. In the Second Schedule are set forth certain matters in items 1 to 5 which are within the jurisdiction of a Labour Court and item 6 gives the Labour Court jurisdiction to deal with "all matters other than those specified in the Third Schedule"is not expressly covered by either of the two Schedules. It would therefore be a matter covered by the Second Schedule under item 6 thereof. Sec. 10 (1) ( c) enables the appropriate Government when it is of opinion that an industrial dispute exists or is apprehended inter alia, to refer the dispute or any matter appearing to be connected with, or relevant to, the dispute, if it relates to any matter specified in the Second Schedule to a Labour Court for adjudication. So far as an Industrial Tribunal is concerned, the appropriate Government may under S. 10 (1) (d) make reference to it not only in cases covered by the Second Schedule but also those included in the Third Schedule except that when the dispute relates to any matter in the Third Schedule and is not likely to affect more than one hundred workmen, the appropriate Government may, if it thinks fit, make a reference to a Labour Court under cl. ( c)17. Following the above decision, it was held in Mining Engineer v. Rameshwar, (1968) 1 SCR 140   = (AIR 1968 SC 218  ) that. (2) of S.C was not confined to cases arising under an award, settlement or even under the provisions of ChapterA of the Act and the benefit provided in the bonus scheme underthe Coal Mines Provident Fund and Bonus Schemes Act, 1948 would be covered by