Case: Dunlop India Ltd Vs. Their Workmen

Union, which was not a party to any such agreement with the appellant. If the age of retirement at 58 had been fixed in the Standing Orders of the Company after following the procedure indicated in the relevant statute, as the appellant originally did in 1955, then the position may be different. On the other hand, what the appellant did was to enter into an agreement with the Dunlop Rubber Factory Labour Union, which represented only one section of the staff employees. When that is so, such an agreement will bind only such of the staff employees who were members of the Dunlop Rubber Factory Labour Union, which was a party to the agreement. The concerned workman who was not a member of the said union was justified in contending that he was not bound by the agreements of 1961 and 1966 the Tribunal was also justified in upholding the contention.25. Mr. Pai then urged that the agreements of 1961 and 1966 conferred very many benefits on the employees and those benefits have also been availed of by the concerned workman. Therefore, he urged that the workman was bound by the provisions contained in those agreements relating to the age of retirement. The mere fact that an employee gets the benefit of higher wages fixed under the agreement, in our opinion, cannot be considered to operate as a bar to his disputing the right of the management to retire him at the age of 58 years. It is only when the clause relating to the age of retirement is sought to be enforced that he can raise a controversy. The other provisions regarding gratuity and other retirement benefits will accrue to the workman only on his retirement and therefore it cannot be said that the concerned workman had taken the benefit of those provisions before he was due to retire. Therefore, we are not impressed with this contention of Mr. Pai. The second contention is also to be rejected.26. The last contention of Mr. Pai need not detain us very long. When the order of the management directing the workman to retire on his attaining the age of 58 years was being challenged as illegal, the Tribunal had necessarily to consider what is the proper retirement age for the concerned workman. It is only when a finding is given that the concerned workman is entitled to continue beyond 58 years that the Tribunal can hold the order of the Company directing his retirement at 58 years as illegal. So the Tribunal was justified in going to that aspect. The Tribunal has relied on the decisions of this Court in (1960) 1 SCR 348 = (AIR 1959 SC 1279 ) and (1964) 2 Lab LJ 146 (SC), for holding that the concerned workman who had joined service at a time when there were no rules, regulations, agreements or Standing Orders regarding the age of superannuation, was entitled to continue in service till he attained the age of 60 years. These decisions too prima facie support the view of the Tribunal that the concerned workman, in the present case, is entitled to continue in service till he attained the age of 60 years. We have already referred to the fact that the said decisions have been explained by this Court in (1970) 1 SCR 808 = (AIR 1970 SC 512 ).27. However, the finding of the Tribunal that the concerned workman was entitled to continue in service till he attained the age of 60 years can be supported on other grounds. We have already referred to the decision of this Court in (1960) 2 SCR 51 = (AIR 1960 SC 207 ) relating to the age of retirement being 60 years in respect of the appellants staff employed in Bombay region. Though that decision related to the employees of the appellant in Bombay region, it should be noted that this Court rejected the contention of the Company that it being an all-India concern, it should have uniform conditions of service throughout the country for its employees. It was further emphasised by this Court that industrial adjudication in India being based on industry-cum-region basis, the Industrial Tribunals have jurisdiction to make necessary changes in a uniform scheme so that it might accord with the prevailing conditions in the region where the employees were working, as the changes found necessary by the Tribunal were to ensure fair conditions of service.28. We have also referred to the inter-office letter dated December 6, 1962, which further shows that even according to the appellant the concerned workman is entitled to continue in service till the age of 60 years.29. Mr. Pai has referred us to certain decisions to show that the trend in West Bengal is to fix the age of retirement as 58 years for clerical and subordinate staff, Mr. Sen Gupta, also referred us to certain decision in other regions to show that the trend is to fix the age of retirement for staff members at 60 years. But it is not necessary for us to refer to those decisions cited either by Mr. Pai or Mr. Sen Gupta. We will only refer to the decisions of this Court in Messrs. British Paints (India) Ltd. v. Its Workmen, (1966) 2 SCR 523 = (AIR 1966 SC 732 ), which relates to West Bengal region wherein this Court fixed the age of retirement both for factory workmen and the staff members in the Company concerned at 60 years. No doubt, it is pointed out in the said decision that the uniform age was fixed for the factory workmen also in that case because of the particular nature of work the factory workmen had to do, but one thing is clear, the trend in West Bengal region is to fix the age of retirement at 60 years for the clerical and subordinate staff. From this point of view the direction of the Tribunal that the appellant was entitled to continue in service till 60 years is justified.

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

Explanation:
0[ds]27. However, the finding of the Tribunal that the concerned workman was entitled to continue in service till he attained the age of 60 years can be supported on other grounds. We have already referred to the decision of this Court in (1960) 2 SCR 51   = (AIR 1960 SC 207  ) relating to the age of retirement being 60 years in respect of the appellants staff employed in Bombay region. Though that decision related to the employees of the appellant in Bombay region, it should be noted that this Court rejected the contention of the Company that it being an all-India concern, it should have uniform conditions of service throughout the country for its employees. It was further emphasised by this Court that industrial adjudication in India being based on industry-cum-region basis, the Industrial Tribunals have jurisdiction to make necessary changes in a uniform scheme so that it might accord with the prevailing conditions in the region where the employees were working, as the changes found necessary by the Tribunal were to ensure fair conditions of service.28. We have also referred to the inter-office letter dated December 6, 1962, which further shows that even according to the appellant the concerned workman is entitled to continue in service till the age of 60 years.29. Mr. Pai has referred us to certain decisions to show that the trend in West Bengal is to fix the age of retirement as 58 years for clerical and subordinate staff, Mr. Sen Gupta, also referred us to certain decision in other regions to show that the trend is to fix the age of retirement for staff members at 60 years. But it is not necessary for us to refer to those decisions cited either by Mr. Pai or Mr. Sen Gupta. We will only refer to the decisions of this Court in Messrs. British Paints (India) Ltd. v. Its Workmen, (1966) 2 SCR 523   = (AIR 1966 SC 732  ), which relates to West Bengal region wherein this Court fixed the age of retirement both for factory workmen and the staff members in the Company concerned at 60 years. No doubt, it is pointed out in the said decision that the uniform age was fixed for the factory workmen also in that case because of the particular nature of work the factory workmen had to do, but one thing is clear, the trend in West Bengal region is to fix the age of retirement at 60 years for the clerical and subordinate staff. From this point of view the direction of the Tribunal that the appellant was entitled to continue in service till 60 years is justified.