Balmer Lawrie & Co. Ltd. & Ors vs Partha Sarathi Sen Roy & Ors

He had previously worked in different branches of the company in Dubai, the United Arab Emirates etc. as an Accountant-cum- Administrative Officer. His services were terminated vide order dated 27.2.1981, in view of Clause 11(a) of the letter of appointment which provided that the company would have a right, which would be exercised at its sole discretion, to terminate the services of such employees by giving them three calendar months’ notice in writing, without assigning any reason for such decision. The respondent challenged the said termination order by filing writ petition (C.R. No. 1562 (W) of 1981) in the High Court of Calcutta, praying for the issuance of a writ of mandamus, directing that the said termination order be quashed.

E. Aggrieved, the respondent filed an appeal (FMA. No. 301/2001), against the said judgment and order of the learned Single Judge. However, in the meantime, another writ petition No. 778/1992 was decided by another learned Single Judge of the same High Court, holding that the appellant was infact a State within the meaning of Article 12 of the Constitution. Thus, the appellant preferred an appeal against the said judgment and order dated 27.3.2001, and the matters were heard together by a Division Bench. Both the Judges delivered their judgment on 30.1.2002 taking different views on the aforesaid issue. The matter was referred to a third Hon’ble Judge, who vide judgment and order dated 24.12.2002, held the appellant to be a State within the meaning of Article 12 of the Constitution, and directed that the matter be placed before an appropriate bench for decision of the writ petitions on merits.

4. Per contra, Shri Sangaram Patnaik, Mr. Bijan Kumar Ghosh and Mr. P.K. Roy, the learned counsel appearing for the respondents have submitted that the appellant company is a government company, and is a subsidiary of a government company, which is controlled entirely by the government and that the government has absolute control over the company. The majority judgment of the Calcutta High Court, holding the appellant company to be a State within the meaning of Article 12 of the Constitution cannot be found fault with. Even otherwise, law does not permit an employer, particularly the State or its instrumentalities, to terminate the services of its employees by adopting a “hire and fire” approach, as it would be hit by the equal protection clause enshrined in Article 14 of the Constitution of India (hereinafter referred to as, the ‘Constitution’). Additionally, the respondent died long ago, and no attempt was ever made by the appellant company to substitute him with his legal heirs. Thus, the appeal stands abated qua him. The facts and circumstances of the case do not warrant any interference by this court, and the appeals are therefore, liable to be dismissed.

24. The appellant company carries on its business in diverse fields through various Strategic Business Units (hereinafter referred to as ‘SBUs’), and its work is being carried on by (i) an SBU for Industrial Packaging; (ii) an SBU for Greases & Lubricants; (iii) an SBU for Logistics Services; (iv) an SBU for Projects & Engineering Consultancy; (v) an SBU for Travel & Tour; (vi) an SBU for Leather Chemicals; (vii) an SBU for Tea Blending & Packaging; and (viii) an SBU for Container & Freight Station.

27. In order to determine whether the appellant company is an authority under Article 12 of the Constitution, we have considered factors like the formation of the appellant company, its objectives, functions, its management and control, the financial aid received by it, its functional control and administrative control, the extent of its domination by the government, and also whether the control of the government over it is merely regulatory, and have come to the conclusion that the cumulative effect of all the aforesaid facts in reference to a particular company i.e. the appellant, would render it as an authority amenable to the writ jurisdiction of the High Court.

29. As we have already mentioned, the present appeal stands abated qua respondent in C.A. No. 419/2004 owing to his death, and the non- substitution of his legal heirs. We would like to clarify that his legal heirs may enure the benefits of this judgment, to the extent that respondent was entitled to receive 60% of the arrears of wages due to him, from the date of his termination to the date of his superannuation. The benefit shall be calculated on the basis of periodical revision of salary and other terminal benefits which shall be paid to the LRs of the deceased employee within three months. If it is not given within three months then interest at the rate of 9% will accrue. Additionally, they shall also be entitled to all statutory benefits like gratuity, provident fund and pension, if any.

CIVIL APPEAL NO. 926 OF 2013

30. The abovesaid appeal stands disposed of in terms of judgment in Civil Appeal Nos.419-426 of 2004.

February 20, 2013