Case: Sahu Minerals &amp; Properties Ltd Vs. Presiding Officer, Labour Court &amp; Ors

1. By two notifications dated 22-6-1965 and 28-8l965 the Government of Bihar sent to the Labour Court, Chota Nagpur Division, Ranchi applications in respect of 73 workers of the appellant for decision under Section 33-C (2) of the Industrial Disputes Act for retrenchment compensation. The employer contended that it was a case of closure for reasons beyond its control and that therefore the workmen were entitled to compensation under the proviso to sub-section (1) of Sec. 25-FFF of the Act and not to retrenchment compensation. The workers contended, however, that they were entitled to retrenchment compensation under Section 25-F. The Labour Court held that it was a case of retrenchment. Two writ petitions filed by the employer before the High Court of Patna failed and these appeals have been filed in pursuance of a certificate of fitness granted by the High Court.

Reasoning:
We, therefore, do not see how the decision in the U. P. Electric Companys case (supra) can come to the aid of the appellant in this case. The said case is clearly distinguishable on the peculiar facts as noticed above.We hold that in this case it was competent to the Labour Court to decide whether the case before it was a case of retrenchment compensation or the proviso to sub-section (1) it of Section 25-FFF was attracted on closure of the establishment. The question even according to the employer falls under Section 25-FFF and therefore in deciding that question the Labour Court has necessarily to decide whether the proviso has been satisfied.7. We do not consider that the reference to Item No. 10 of the Third Schedule to the Act can decide the matter one way or thedoes not say that all questions arising out of retrenchment of workmen and closure of establishments have to be decided by Industrial Tribunal. Logically if the contention is to be accepted, even if the question of retrenchment is not disputed the Labour Court will not be competent to decide the question of compensation payable in a case of retrenchment because it raises a question of jurisdiction.This entry should therefore be held to refer to cases where the right to retrench workers or to close an establishment is disputed and that question is referred for adjudication to the Industrial Tribunal. In that case the Tribunal will be competent to decide whether the closure or retrenchment was justified and whether the retrenched workmen should be reinstated or the workers in the establishment purported to have been closed should be continued to be paid on the basis that the so called closure was no closure at all. In the present case the workmen do not ask for reinstatement. They accept the termination of their services and ask for compensation. The only dispute is about the compensation whether it is to be paid under Sections 25-F or 25-FFF. Item 10 of Third Schedule will not cover such a case.