Case: Rajinder Singh Chauhan  Vs. State Of Haryana

3. Appellants were employees of the Haryana State Federation of Consumers Co-operative Wholesales Stores Limited (in short the CONFED), fourth respondent herein. The service conditions of its employees are covered by CONFED Staff Service Rules, 1975 (in short the Rules). On account of continued financial losses, a restructuring plan for gainful employment for employees was prepared. It was noted that Retail Outlets (in short the ROL) were causing huge loss to the organization. Therefore, it was decided that all ROL should be closed being financially non-viable. Retrenchment compensation in terms of Section 25-F of the Act was paid. In the retrenchment order it was specifically stated asis made clear that employees of CONFED from where the retrenchment is being effected are not covered by Chapter V-B of the Industrial Dispute Act, 1947, necessitating any permission under Section 25-N of the said Act. Therefore the retrenchment is being effected in accordance with Chapter V-A by employing with Section 25-F and other provisions of the said Chapter.Questioning the retrenchment, writ petitions were filed before the High Court taking the stand that provisions of Section 25-N and not Section 25-F were applicable and in any event the appellants were entitled to the benefit in terms of Rule 35(b) of the Rules. High Court did not find any substance in the stand and dismissed the Writ Petitions holding that there was compliance with the requirements of Section 25-F(b) of the Act.

Court's reasoning:
9. Section 25-F appears in Chapter V-A of the Act which relates to lay-off and retrenchment. Section 25-K, L and N appear in Chapter V-B which relates to special provisions relating to lay-off, retrenchment and closure in certain establishments. In other words Chapter V-A deals with the general provisions relating to lay-off and retrenchment, while special provisions have been made for certain establishments covered by Chapter V-B. Section 25-N refers to workman in an industrial establishment. The expression "Industrial Establishment" is defined in Section 25-L, which means a factory or a mine or a plantation. Admittedly, the employer is not covered by the definition of the "Industrial Establishment". Therefore, the High Court was right in holding that Section 25-N has no application.This is a case where the period of probation is fixed having regard to Rule 4(b) read with Rule 10 as quoted above. Rule 10(6) no doubt provides that no employee shall be deemed to have been confirmed in the service unless specific order in this regard is issued. Relying on this provision, learned counsel for the fourth respondent submitted that there was no specific orders of confirmation and, therefore, the appellants should be deemed to have continued as probationers till the date of termination of their