# • ::-,>-···. L. ROBERT D'SOUZA v. THE EXECUTIVE ENGINEER SOUTHERN RAILWAY & ANR

- **Citation:** [1982] 3 S.C.R. 251
- **Court:** Supreme Court of India
- **Decided:** 1982-02-16
- **Case number:** Civil Appeal No. 1613 of 1979
- **Bench:** D.A. Desai, R.B. Misra
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/l-robert-d-souza-v-the-executive-engineer-southern-railway-anr-8321
- **Pages:** 26

## Headnote

251
Industrial Disputes Act, 19471 sections 2(oo) and 25F, scope of-"Termlnation of se~vice for any reason whatsoever'' in the definition "retrench.ient"·
darified.
Construction of Section_ 9A-Casuaf labour, termination of services QfRailway Establishme1u Code, Rules 2501 and 2505, explained.
The appellant joined service as a gangm1-n in Southern Railway on July
1, 1948. In course of his service be was transferred to varioui places. While
A
8
G
he wa:s working as a Lascar at Ernakulam, he was transferred, some time in
D
March 1970 by way of punishment for his Union activities in the capacity of
_General Secretary of the Southern Railway Construction Workers Union,
Eroakulam, to Podannur in Tamil Nadu. However, bis transfer was cancelled
and he joined duty on· 20-2-1971 at Ernakulam. The Ministry of Labour,
Government of India, by its letter dated April 23, 1974 directed treatment of his
entire period of absence from 8tb March, 1970 to 19th February, 1971 as duty.
Later, the appellant approached the Labour Court for recovering some of his dues
ll
which remained pending fo[ a long time.
As the appellctnt and thoie similarly
situated were likely to reach the age of superannuation and by the unfair labour
practice, namely, treating them only as 'daily rated labour', of the Railway
Administration, they were likely
~o be denied the full retirement benefits,
appellant and several others filed a writ petition in the High Court of Kerala,
praying for a direction that they should be treated at least as temporary railway
servant with attendant benefits. During the pendency of the matter, in connection, with the demand for a 11 the benefits granted by the Central Pay Commission
being extended to the category of employees t-0 which the appellant belonged the
appellant undertook a fast. but-broke the rsame on September 28, 1974 at the
intervention of [the Assistant Labour Commissioner. Taking advantage of the
appellant's absence, the .respondents termina.ted his service with retrospective
effect, i.e., from 18~9-1974 on the gronnd of unauthorised absence. A learned
single Judge having dismissed the liame, the Jmatter was taken. in appeal before
the Division Bench.
In the appe1l, it was coaten,ded that the terminatioti of
service of the appellant in the circumstances wo.uld constitute retrenchment
within the meaning. of section 2SF of the Industrial Disputes Act, 1947 and,
therefore:, the order ()f termination was invalid. , The matter was referred to the
Full Bench which held that there ,was no retrencbme0t and cjismi$$ed the appeal:
Hence, the appeal by special leave.
Allowing the appeal, the Gou.rt,
F
G
H
A
I!
c
D
E
F
G
252
SUPREME COURT REPORTS
[1982) 3 s.CR.
HELD : 1. The expression "termination of service for any reason
whatsoever" in the definition "retrenchm~nt" in section 2(oo) of the Industrial
Disputes Act, 1947 covers every kind of termination of service except those not
expressly included in section 25F or not expressly provided ior by other pro·
visions of the Act such as sections 25FF and 25FFF. The excepted categories
are (i) termination by way ·-or punishment inflicted pursuant to disciplinary
action; (ii) voluntary retirement of the workman; (iii) retirement of the workman
on reaching the age of superannuation if the contract of emplo}·ment between
the employer and the workman concerned contains a _-stipulation in that behalf;
(iv) or termination of the services on the ground of continued ill·health. _ Once the
case does npt fall in any of the excepted categories, the termination of service
even if it be according to automatic discharge from service under agreement
would nonetheless be retrenchment within the meaning of ·expression in -section
2(oo) of the Act. It must as a corollary follow that if the name of the
workman is struck off the roll, that itself would constitute retrenchment. -
[259 B-C, 206 H, 261 A-B]
. Delhi Cloth & General Mills Ltd. v. Shambhu Nath Mukherji, [1978] I
1,_
SCR 591, followed •.
State Bank of

## Text

_Characters 0–39,860 of 64,440. This is a partial read: ask again with offset=39860 for what follows._

•
::-,>-···.
L. ROBERT D'SOUZA
v.
THE EXECUTIVE ENGINEER SOUTHERN
RAILWAY & ANR .
February 16, 1982
(D.A. DESAI AND R.B. MISRA, JJ.]
251
Industrial Disputes Act, 19471 sections 2(oo) and 25F, scope of-"Termlnation of se~vice for any reason whatsoever'' in the definition "retrench.ient"·
darified.
Construction of Section_ 9A-Casuaf labour, termination of services QfRailway Establishme1u Code, Rules 2501 and 2505, explained.
The appellant joined service as a gangm1-n in Southern Railway on July
1, 1948. In course of his service be was transferred to varioui places. While
A
8
G
he wa:s working as a Lascar at Ernakulam, he was transferred, some time in
D
March 1970 by way of punishment for his Union activities in the capacity of
_General Secretary of the Southern Railway Construction Workers Union,
Eroakulam, to Podannur in Tamil Nadu. However, bis transfer was cancelled
and he joined duty on· 20-2-1971 at Ernakulam. The Ministry of Labour,
Government of India, by its letter dated April 23, 1974 directed treatment of his
entire period of absence from 8tb March, 1970 to 19th February, 1971 as duty.
Later, the appellant approached the Labour Court for recovering some of his dues
ll
which remained pending fo[ a long time.
As the appellctnt and thoie similarly
situated were likely to reach the age of superannuation and by the unfair labour
practice, namely, treating them only as 'daily rated labour', of the Railway
Administration, they were likely
~o be denied the full retirement benefits,
appellant and several others filed a writ petition in the High Court of Kerala,
praying for a direction that they should be treated at least as temporary railway
servant with attendant benefits. During the pendency of the matter, in connection, with the demand for a 11 the benefits granted by the Central Pay Commission
being extended to the category of employees t-0 which the appellant belonged the
appellant undertook a fast. but-broke the rsame on September 28, 1974 at the
intervention of [the Assistant Labour Commissioner. Taking advantage of the
appellant's absence, the .respondents termina.ted his service with retrospective
effect, i.e., from 18~9-1974 on the gronnd of unauthorised absence. A learned
single Judge having dismissed the liame, the Jmatter was taken. in appeal before
the Division Bench.
In the appe1l, it was coaten,ded that the terminatioti of
service of the appellant in the circumstances wo.uld constitute retrenchment
within the meaning. of section 2SF of the Industrial Disputes Act, 1947 and,
therefore:, the order ()f termination was invalid. , The matter was referred to the
Full Bench which held that there ,was no retrencbme0t and cjismi$$ed the appeal:
Hence, the appeal by special leave.
Allowing the appeal, the Gou.rt,
F
G
H
A
I!
c
D
E
F
G
252
SUPREME COURT REPORTS
[1982) 3 s.CR.
HELD : 1. The expression "termination of service for any reason
whatsoever" in the definition "retrenchm~nt" in section 2(oo) of the Industrial
Disputes Act, 1947 covers every kind of termination of service except those not
expressly included in section 25F or not expressly provided ior by other pro·
visions of the Act such as sections 25FF and 25FFF. The excepted categories
are (i) termination by way ·-or punishment inflicted pursuant to disciplinary
action; (ii) voluntary retirement of the workman; (iii) retirement of the workman
on reaching the age of superannuation if the contract of emplo}·ment between
the employer and the workman concerned contains a _-stipulation in that behalf;
(iv) or termination of the services on the ground of continued ill·health. _ Once the
case does npt fall in any of the excepted categories, the termination of service
even if it be according to automatic discharge from service under agreement
would nonetheless be retrenchment within the meaning of ·expression in -section
2(oo) of the Act. It must as a corollary follow that if the name of the
workman is struck off the roll, that itself would constitute retrenchment. -
[259 B-C, 206 H, 261 A-B]
. Delhi Cloth & General Mills Ltd. v. Shambhu Nath Mukherji, [1978] I
1,_
SCR 591, followed •.
State Bank of India v. N. Sundera Money, [1976] 3 S.C. R. 160; Hindustan
Steel Ltd. v. Presiding Officer, Labour Court, [1977] 1 S.C.R. 586; Santosh Gupta
v, State Bank of Patia/a, [1980] 2 S.C.R 884 at 892; Mohan Lal v. Bharat
Electronics Ltd., [1981] 3 S.C.C. 225, referred to.
1:2. There is neither apparent nor real conflict between the decision
of the constitution· bench in Hariprasad Shivshanker Shukla v. A..D. Divikar,
[1957] S.C.R. 121 and the later five decisions commencing from Sundera
Money and ending with Mohan/al' s case.
Re~ex:amining a contention over again
so as to cover the familiar ground would, apart from giving a
go bye to _the
doctrine of stare decisis, would be a sheer waste of time and mere lengthening
of the judgment. [260 C'D]
Surendra Kumar Verma & Ors, v. Central Gover:nment Industrial-cum-
· Labour Court, New Delhi & Anr., [1981] 4 S.C.C. 443, View of Pathak, J. held
inapplicable.]
2:1. Notice contemplated by clause (a) of section 25F would not be
dispensed with, in.view of the provision contained in proviso (b) of section 9A,
which is ~n independent provision having no co-relation with section 25F.
[264 BJ
2:2. Section 9A imposes an otligation on the employer, who
pro~·. ses
to effect ·any change in the conditions of service applicable to any workman in
respect of any matter specified in the F_ourth Schedule to give notice as therein
provided and the employer is precluded from effecting the change without giving
·to the workman likely to be effected by such change, notice in the prescribed
manner of the nature of the change proposed to be effected, and the change cannot be effected within 21 days of the giving of such notice. In order to attract
.section 9A tbc; 1.;pange propose<;l must be.in tbe conditions of service applicable to
~··
I
L.R. D'SOUZA V. EX ENG., S; RAILWAY
253
the workman in respect of any matters specified in. the Fourth Schedule. If the
proposed.change falls in any of the matters specified in the Fourth Schedule the
change· can be effected after giving notice in the prescribed manner and waiting
for 21 days affer giving such notice. In order to attract section 9A the employer
must be desirous of effecting a change in conditions of service in respect of any
matter specified in Fourth Schedule. If the change proposed does not cover any
matter in Fourth Schedale section 9A is not attracted and no notice is necessary.
[262 E-0]
Workmen of Sur Iron & Steel Co. (P) Ltd. v. Sur Iron & Steel Comppny
(P) Ltd., [1971] LLJ 570; Tata Iron & Sttel Company Ltd. v. Workmen, [1973] I
SCR 594; Assam Mot~h Co. Ltd. v. Bijoy Loi Sen, [1974] l SCR ll6, referred
to.
2:3. Retrenchment to be valid must comply with three conditions set
out in section 25F. They are, (a) subject to the proviSo to clause (a) one month's
notice in writing specifyin.g the reasons for retrenchment or wages in lieu of
notice: (b) compensation to l:!'e paid according to the measure provided in the
clause, the payment to be simultaneous with the retrenchment; and (c) the
notice in the prescribed manner to be served on the appropriate Government.
It was obligatory upon the employer, who wants to l'retrench the workmen to
give notice as contemplated by clause (a) of section 25. [262 C-E]
2:4. A
careful
reading
of sections 9A and 25F makes it clear
that when a workman
is retrenched, no change in
his conditions of
service is effected. No item in Fourth Schedule which sets out the· conditions of
service covers the case of retrenchment. In fact retrenchtnent is specifica1ly
covered by item IO of the Third Schedule. If retrenchment which connotes
termination of service, cannot constitute change in conditions of service in
respect of any item mentioned in Fourth Schedule saction 9A would not be
attracted. If section 9A is not attracted, the question of seeking exemption from
it in the case falling under the ,_proviso would hardly arise.
Ther~fore, neither
seciion 9A nor the proviso is attracted •in this case. That apart, none of the
other pre-conditions to a valid retrenchment have been tomplied with, because
the very letter of termination of service shows that services were deemed to have
been termitiated from a back date which clearly indicates no~notice being given~
no compensation being paid and no no~ice being given to. the prescribed authority.
Therefore, termination of strvice, being retrenchment, for failttre to comply with
section 25F, would be void ob initio. [263 D-11, H, 264 A, C-DJ
. .
3:1: The test provided is that for the putpose of determining the eligi-
,bih~ of casual labour to be treated as temporary, the criterion shoo Id be the
penod of continuous work put in by each individuai labour on . the same type
of work and not the period put in collectively by any particular gang or group
of labourers. It is thus abundantly clea; that if a person belonging to the
category of casual labour employed in construction work other than workcharge~ projects renders six months' contiriuous service without a break, by the
operation of statutory rule the nerson would be treated as temporary railway
servant after the expiry of six months of continuous .. employment. It is equally
true of even seasonal labour. Qnce the pe~on acquir~d the statua·_of tem~orar¥
A
c
D
E
F
G
H
A
B
c
D
E
F
G
H
254
SUPREME COURT REPORTS
fl982] 3 s.c.R.
railway servant by operatlon of ;law, the conditions of his service wout~ be
governed as set out in Chapter XXIII. The
ser~ice of a temporary railway
servant may be termined only as provided in Rule 2301. [266 H, 267 A-B, El
3:2. The underlying intendment of the Rule 2501(~) (i) & (ii~) and note
below Rule 2505 is that a casual labour who bas rendered six months conqnuous
service would-be-placed in the categ'ory of temporary ra.ilway servant
~nless he
is employed on work-charged project. Rule 250l(b) (1) clearly. provides that
even where staff is paid from contingencies, they would acquire !he st~tus of
temporary railway servants after expiry
of six
months
of continuous
employment. [271 E-H]
•
In the instant case : (i) tbe appellant acquired the status of ten1porary
railway servant Jong before the termination Of his service and, therefore, his
service could not have been terminated under Rule 2505; (ii) he nevet worked on
projects but on a construction Unit. Construction Unit is a regular Unit anti
cannot be equated to Project. Every construction work does not imply Project.
Project is correlated to planned projects in wli.ich the workman is treated as
work-Charged. Persons belonging to casual Jabour category cannot be transferred but the appellant was transferred ·on innumerable occassions; (iii) as a
result of the appellant and others filing a writ petition, three co-appellants were
informed that they were treated as on regular employments and ceased to belong
to the category of casual labour. But for impugned termination orders the
appellant also would have been treated as temporary and therefore1 the iappellant
received discriminatory treatment offending Article 14 & 16 of the Constitution;
and (iv) section 25F of the Industrial Disputes- Act provides that no workman
employed in any industry who has been in continuous service for not less than
one year under an employer shall be retrenched by that employer until the conditions set out in Act are satisfied. The appellant would be a workman within
the meaning of that ex:pression in section 2(s) of the Act. 'He has rendered continuous service for a period over twenty years. Therefore, the first condition of
section 25F that appe11ant is a workman who has rendered service for not Jess
than one year under the Railway administration, an employer carrying on an
industry, is satisfied. His service is terminated which for the reasons hereinbefore given would .co~stitute ~etrenchment. It is immaterial that he. is a daily
1'ated worker. He ts either doing manual or technical work and hiS salary was
Jess than Rs. 500 and the termination of his service does not faJJ ·in any of the
excepte9 categories.
The~efore, assuming that he was a daily ra1ed worker
once he has rendered continuous uninterrupted service for a p~riod of one yea;
or more, within the meaning of section 25B of the Act and his service is terminated for any reason whatsoever and. the case doe<; not fall in any of the excepted
categories, notwithstanding the fact that Rule 2505 would be attracted, it would
have to be read subject to the provisions of the Act. Accordingly the termination
of service in this case would constitute retrenchment and for not complying with
pre-conditions to valid retrenchment the order of termination would be illegal
and invalid. [271 D, 272 A, G, 275 D-G]
.
3:3. Absence without leave constitutes misconduct and it is' not open to
the employer to terminate service without notice and inquiry or at any rate
wit~out complyiμg with tile minimum principle of natural justice.
Further~
-~ ' . '
\
LP. D1SOUZA v. BX. ENG., s. RAILWAY (Desai, J.)
25)
Rule, 2302 clearly prescribes the mode, manner and 'methodology of terminating
service of a temporary railway servant and admittedly the procedure therein
prescribed having not been carried out, the termination is void and invalid;
Accordingly, the same conclusion would Qe reached even while accepting for the
purpose of the facts of this case simultaneously rejecting it in· law that the
termination does not constitute retrenchment yet nonetheless it would be void
and inoperative. [273 A-CJ
OBSERVATION: Rule 2501 which permits a man serving for 10, 20,
30 years at a stretch without break being treated as daily rated servant, is
thl"¥1ugJily opposed to the notions of socio-economic justice and it is high time
that Railway administration brings this part of the provision of the Manual,
antequarian and antidiluvian, in conformity with the Directive Principles of State
Policy as enunciated in Part IV of the Constitution. ·It is high time that these
utterly unf~ir (provisions wholly den:Ying socio-economic juStice are properly
modified and brought in conformity with the modern concepi of justice and
faieplay to the lowest and the lowliest in Railway administration.
[273 C-D, 274 A-BJ
CIVIL APPELLATE
JURISDICTION : Civil Appeal No. 1613
of 1979.
Appeal by special leave from the Judgment and Order dated
the 9th January, 1979 _of the Kerala High Court in O.P. No. 4401
of 1974.
K.R.R. Pillai for the Appellant.
P.A. Francis and Miss A. Subhashini for the Respondents.
The Judgment of the Court was delivered by
DESAI, J.
Appellant L. Robert D'Souza joined service as a
gangman at Mangalapuram in. Southern Railway on July !, 1948.
In course of his service he was transferred to various places.
When
he was last working as Lascar at Ernakulam, on October 8, 1974
the Executive Engineer (Construction), Erna:kulam intimated to him
that his services were deemed to have been terminated from
September 18, 1974, from which date the appellant was _said to have
absented himself from duty.
This letter has an important bearing
on the issues raised in this appeal, and, therefore, relevant portion
may be extracted here :
"You have absented yourself unauthorisedly
from
18.9.1974 and hence your se1vices are deemed to have
been terminated from the day you have absented yourself.
Please note.
A
B
c'
E
F
G
H
/
A
B
c
D
l!l
F
G
H
256
SUPREME COURT REPORTS
{ 1982] 3 s.c.R.
Since you are no longer on the rolls of this office yoa
should vacate the quarters allotted to you i rnmediately
failing which action will be taken to evict you".
According to the appellant, up to the date of unauthorised and
illegal termination of his service he had rendered coiitinuou• service
for a period of 26 years yet the Railway administration wrongfully
denied him the status of a temporary and/or regular workman and
treated him a daily rated casual labourer.
This treatment according
to the appellant was so unfair that it prompted persons who were
victims of this unfair treatment by the Railway administration to
form a Union named Southern Railway Construction Workers
Union, Ernakulam, of which the appellant was
the General
Secretary.
The Union submitted a charter of demands which
presumably irritated the authorities and chagrined by it, the
appellant was transferred to Podannur in Tamil Nadu by way of
punishment.
As the late Shri A.K. Gopalan, who was a renowned
trade union leader, espoused the cause of the appellant, his transfer
was cancelled and he was reposted and allowed to continue at
Ernakulam after paying the arrears of wages and granting continuity
of service for the period he did not join duty at the place of his
transfer. This is quite evident from the Jetter of the Under Secretary,
Ministry of Labour, dated April 23, 1974, which reads as under :
"With reference to your letter dated the 28th May,
1973, on the above subject, I am directed to say that it has
been reported by the Ministry of Railways that the
Southern Railway Administration bas been advised that as
you were transferred back to Ernaku!am on 19th March,
1971, you should be deemed to have been on duty for the
intervening period from 8th March', 1970 to 19th February,
1971, and your wages paid accordingly".
The local superiors of the appellant were annoyed by the
success of the appellant and they were on a look out for settling the
score with the appellant. In the meantime the appellant approached
the Labour Court for rocovering some of his dues which remained
pending for a long time.
As the appellant and those similarly
'ituated were likely to reach the age of suptrannuation and by the
unfair labour practice of the Railway administration they were likely
to be denied the full retirement benefits, appellant and several
others filed a writ petition in the High Court of Kerala .. According
i..R. D;SOUZA v. EX. ENO., s. RAILWAY (Desai, J.)
257
to the appellant, for the various reawns stated in the petition,
appellant and those similarly situated could not be treated as daily
rated casual labour and under the relevant rules appellant and his
co-workers would at least acquire the status of temporary railway
servants and their services could not be terminated in the manner
in which the appellant's service was terminated and that they woul.I
be entitled to all the retiral benefits.
The petition came up before
a learned single judge who dismissed the same. The matter was
taken in appeal before the Division Bench.
In the appeal it was
contended that the termination of service of the appellant in the
circumstances as set out earlier would constitute retrenchment within
the meaning of section 25F of the Industrial Disputes Act, 1947
('Act' for short), and therefore, the order of termination, Inter a/ia,
is invalid
The Division Bench found the question raised before it
of such importance and magnitude that it referred the same to the
Full Bench.
In the meantime the appellant was actively pursuing his trade
union activities. A demand was made that all the benefits granted
by the Central Pay Commission be extended to the category of
employees to which the appellant belonged and when these demands
fell on deaf ears, it was resolved to give a strike notice. The matter
was taken in conciliation which ultimately resulted ·in failure. The
appellant approached the Ceritql Government to make a reference
under s. IO of the Act in respect of the demands for adjudication by
National Tribunal.
As the Central Government was wobbling in
its approach, the appellant declared his intention to go on fast unto
death for redressal of the grievances suffered for decades by the
lowest category of railway employees.
At that stage the Assistant
Labour Commfssioner intervened and persuaded the appellant not
to precipitate the matter.
The appellant accordingly broke his fast
on Sepetember 28, 1974, in the hospital where he was confined
during his fast.
Taking advantage of his absence during the fast
immediately the order of termination of his service was served and
this led to the present proceedings which ha¥e culminated in this
appeal.
The appellant, inter alia, contended before the Full Bench of
Kerala High Court that the termination of his service for the reasons
and in the manner brought about is illegal and invalid, that it was
victimisation for trade union activities; that it was unfair labour
practice and that it was ma/a fide.
It was also contended that in
view of his long uninterrupted s~rvice admittedly over twenty years
A
B
c
D
E
F
G
H
A
·C
D
E
F
H
SUPREME COURT REPORTS
(1982) 3 s.c.a.
he was at the minimum a temporary railway servant and, therefore,
his service cannot be terminated unless he was rendered surplus or
by way of disciplinary measure after complying with Article 311 of
the Crnstitution. The, legal submission put in the forefront was that
in the circumstances herein mentioned the termination of service
constituted 'retrenchment' within the meaning of s. 25F of the· Act
and as the pre-condition to valid retrenchment having not been
satisfied, the termination is illegal and invalid. The Full Bench
answered the point referred to it against the appellant holding that
there is no retrenchment as contended for, on behalf of the appellant
and finally dismissed the petition. Hence this appeal by special leave.
At the outset it must at once be pointed out that the construction· put by the Full Bench of the Kerala High Court on the
expresssion 'retrenchment' in s. 2(oo) of the Act that it means only
the discharge of surplus labour or staff by the employer for any
reason whatsoever is no more good law and in fact the decision of
the Full Bench of Kerala High Court in L. Robert D' Souza v.
Executive Engineer, Southern Railway and Anr.,(') has been speci·
fica]ly overruled by this Court in Santosh Gupta v. Stare Bank of
Patia/a.(2)
This Court has consistently held in State Bank 'of India
v. N. Sundera Money,( 3) Hindustan Steel Ltd. v. Presiding Officer,
Labour Court,(') and Delhi Cloth & General Mills Ltd. v. Shambhu
Nath Mukherji,(5) that the expression 'termination of service for irny
reason whatsoever' now covers every kind of termination of service
except those not expressly included in s. 25F or not expressly
provided for by other provisions of th.e Act such as ss. 25FF and
25FFF.
It was attempted to be urged that in view of the decision
of this Court in Pipraich Sugar Mills Ltd. v. Pipraich Sugar Mills
Mazdoor Union,(6) the ratio of which was re-affirmed by_ a Constitution Bench of this Court in Hariprasad Shivshanker Shukla v.
A.D. Divikar,(') all the later decisions run counter to the Constitution Bench and must be treated per in curium. This contention
need not detain us because first in Hindustan Steel Ltd. case, then
(I) [1979] llLLJ. 2111.
(2) (1980] 2 S.C.R. 884]at 892
(3) [1976] 3 S.C.R. 160.
(4) (1971] 1 S.C.R. 586.
(5) (1978] I S.C.R. 591.
<6l [1956J s.c.R. sn.
(7) [1957) s.c.R. 121.
'
...,_
'
.
. -
~
! ~
t.R. D'SOUZA v. BX. BNG., s. RAILWAY (Desai, J.)1
2S9
in Santosh Gupta's case (Supra) and lastly In Mohan Lal v. Bharat
Eleotronics Ltd.,(') it was in terms held that the decision in Sundera
Money's case was ·not at all inconsistent with the decision of the
Con$titution Bench in Harip1asad Shukla's case and not only
required no reconsideration but the decision in Sundera Money's
case was approved in the aforementioned three cases.
This position
is furtl]er butressed by the decision in Delhi Cloth and General Mills
Ltd . . case wherein striking off th' name of a workman from the roll
was held to be retrenchment. It ls, therefore, the settled law that
the expression 'termination of service for any reason whatsoever'
in the·, definition of the expression 'retrenchment' in s. 2(oo) of the
Act covers every kind of termination of service oxcept those not
expres~ly included in s. 25F or not es:pressly provided for by other
provisions of the Act. such as ss. 25FF and 25FFF.
Two things
thus emerge, firstly, that the decision of the Full Bench of Kerala
High Court under appeal has been specitlcally overruled by this
Court in Santosh Gupta's case (Supra) and secondly, in view of the
decision in Delhi Cloth General Mills Ltd. case (Supra) striking
off the',, name of a workman from the rolls without anything more
constitutes retrenchment within the meaning of the expression
'retrenchment' ins. 2(00). This emerging legal position alone would
be sufficient for us to allow the appeal and set aside the decision of
the Kerala High Court.
Sh~et anchor of Mr. Francis's submission is that this Court
should proceed on the construction of expression 'ratrenchment' as
set out i1' Hariprasad Shukla's case, and ignore the construction of
the expr~ssion 'retrenchment' put in ,the decisions of this Court in
Sundera Money's Hindustan Steel Ltd. ca.se, Santosh Gupta's case,
Delhi
C/qt~ & . General Mills Ltd. case as being per in curium.
We are not disposed to undertake this recurring futile exercise for
obvious r~ason that. on four different occasions, in Hindustan Steel
Limited <i!ise, a Division Bench of this Court consistin.g of
Chandrac~ud, Goswami and Gupta, JJ. in Sundera Money's case, a
Bench con~isting of Chandrachud, Krishna Iyer and Gupta, JJ.; in ·
Santosh G~pta' s case, a Bench consiiting of Krishna Iyer and
O. Chinnappa Reddy, JJ. and a Bench of two judges consisting of
Gupta, J. and one of us in Mohanlal's case, have repeatedly undertaken this very detailed exercise and held that there is no inco~sis
tency of any nature and kind nor any conflict, contradiction or
repugnancy · between the decision of the Constitution Bench in
Hariprasad fihukla's case and aforementioned later four dacisions
(I) [1981} 3 s.c.c. 225.
·A
B
c
D
E
F
G
H
A
8
c
•
D
E
F
G
H
260
SUPREME COURT REPORTS
[1982} j S.C.R.
and they stand in harmony with each other and the later decisions
take note of an amendment in the relevant provisions of Industrial Disputes Act and, therefore, the c0nstruction put on the
expression 'retrenchment' in the aforementioned decisions pronounced
the settled view of this Court.
We, therefore, consider it futile and
waste of precious time of the Court to re-examine the submission of
Mr. Francis negatived on four different occasions in the past.
Undoubtedly, Mr. Francis pointed out that in Surendra -Kumar
-Verma & Ors. v. Central Government Industrial Tribunal-cum, Labour
Court, New Delhi & Anr., (1)
Pathak, J. in his concurring judgment
has stated that his concurrence with the majority view propounded
by Reddy, J. should not be taken to imply his agreement with the
interpretation of s. 2(oo) rendered in Santosh Gupta's case
It may,
however, be mentioned that the majority in that case has affirmed
the earlier decision. Therefore, after meticulously examining on five
distinct and different occasions, it is clearly and unequivocally stated
that there is neither apparent nor real conflict between the decision
of the Constitution Bench in Hariprasad Shukla's case and the later
five decisions commencing from Sundera Money and ending with
Mohama/' s case, it would be sheer waste ot'time and merely adding
to the length of the judgment to re-examine this contention over
again, so as to cover the familiar ground.
As we are not prepared to examine the contention over again,
the submission of Mr. Francis that 'retrenchment' contemplates
some overt act or.. the part of the employer, that it inheres the
principle of last come first go which again requires an overt act on
the part of the employer; that when retrenched workmen are required to be re-employed, first option for re-employment has to be
given to the retrenched workmen, which necessitates- some overt act
on the part of the employer, would be beside the point and of no
relevance and significance.
The reference to Rules 76, 77-and 78
of the Industrial Disputes (Central Rules). 1957, docs not advance
his case a step further.
The definition of expression 'retrenchment'
ins. 2(oo) is so clear and unambiguous that no external aids are
necessary for its proper construction. Therefore, we adopt as binding the well settled position in law that if termination of service of
a workman is brought about for any reason whatsoever, it would be
retrenchment except if the case falls within any of the excepted
categories, i.e., (i) termination by way of punishment inflkted pursuant to disciplinary action; (ii) voluntary retirement of the work-
(I) [1981] 4 S.C.C. 443.
i. R. D'SOUZA v. EX. ENG., s. RAILWAY (Desai, J:)
261
man; (iii) retirement of the workman on reaching the age of superannuation if the contract of employment between the employer and
the workman concerned contains a stipulation in that behalf; (iv) cir
termination of the service on the ground of continued ill-health.
Once the case does not fall in any of the excepted categories the
termination of service even if it be according to automatie discharge
from service under agreement would nonetheless be retrenchment
within the meaning of expression in s. 2(00). It must as a corollary
follow that if the iiame of the workman is struck off the roll that
itself would constitute retrenchment, as held by this-Court in Delhi
Cloth & General Mills Ltd. case. We specifically refer to. this case
because the facts in the caie before us are on all fours with the facts
in the aforementioned cases and on parity of reasoning and judicial
comity the same conclusion must follow unless something to the
contrary is indicated. In ,that case respondent S. N. Mukherji who
was recruited as a labourer came to be promoted in course of time
to the post of Motion Setter. On October I, 1964, pursuant to
some re-organisation in the establishment the post of Motion Setter
was abolished.
The management offered employment to the respondent S. N. Mukherji on any other suitable post, which was indicated to be the post of Assistant Line Fixer (Assistant Grade I)
without loss of wages. He was to be on probation. The management
found him unsuitable for this post even after extending the period
of probation by 9 months and therefore offered him post of Fitter
on the same pay which he, as a Motion Setter, used t<> get. The
response of S. N. Mukherji to this offer was that he should be given
a further opportunity to show his efficiency in his job and if he fails
to improve, he would tender his resignation voluntarily. The management did ·not reply to the letter with the result that the workman
did not report for work at the newly offered post. On January 19,
1966, the management wrote to the workman that his nllme has been
struck off from the rolls with effect from August 24, 1965, for
continued absence without intimation.
Such termination of service
was held to be covered by the expression 'retrenchment' and it was
struck down on the ground that the pre.condition to valid retrenchment was not complied with. It would thus appear that it is consistently held by this Court that termination of service for any
reason whatsoever except the excepted categories would constitute
retrenchment within the meaning of the expression in the Act. And
here recall the order of termination of service of the appellant
wherein it is stated that "You have absented yourself unauthorisedly
from 19.8.1974 and hence your services are deemed to have been
terminated from the day you have absented yourself." Is any other
\
B
c
•
n
E
G
A
B
c
D
E
F
G
H
262
SlJPREME COURT REPoars
[1982) 3 S.C.R.
'
conclusion possible save and except the one recorded by this Court
in Delhi Cloth &~General Mills Ltd case that this constitutes retrenchment and for non-compliance with pre-condition, it is invalid.
Before referring to other contentions of Mr. Francis, we may
dispose of one contention based upon construction of s. 9A of the
Act as in our opinion, it is utter)y untenable.
Mr. Francis says
that if valid retrenchment presages a notiCe contemplated by s. 25F,
the same would stand dispensed with in view of the proviso (b) of
s. 9A of the Act and therefore even if the termination is held to be
retrenchment, the same would be valid. There are two basic fallacits in this submission. Retrenchment to be valid must comply
with three conditions set out in s. 25F. They are (a) subject to the
provi!O to clause (a), one month's notice in writing specifying the
reasons for retrenchment or wages in lieu of notice; (b) compensation to be paid according to the measure provided in the clause, the
payment to be simultaneous with the retrenchment; and (c) the
notice in the prescribed manner to be served on the appropriate
Government. If the termination in this case otherwise constitutes
retrenchment admittedly clauses (b) and (c) of s .. 25F have not been
complied with. That apart, the submission that in view of the
provision contained in proviso (b) of s. 9A, the notice contemplated
by clause (a) of s. 25F would be dispensed with, is without merits.
Section 9A imposes an obligation on the employer, who proposes to
effect any change in the .conditions of service applicable to any
workman in respect of any matter specified in the Fourth Schedule
to give notice as therein provided and the employer is precluded
from effecting the change without giving to the workman likely to
be affected by such change, nollce in the prescribed manner of the
nature of the change proposed to"be effected, and the change cannot
be effected within 21 days of the giving of such notice. Jn order to
attract s. 9A the change proposed must be in the conditions of
service applicable to the workman in respect of any matters specified
in the Fourth Schedule. If the proposed change falls in any of the
matters specified in the Fourth Schedule the change can be effected
after giving notice in the prescrib'd manner· and waiting for 21 days
after giving such notice.
There is a proviso· to s. 9A which exempts
the employer from giving the notice of change if the case falls in
any of the two provisos. According to Mr. Francis the case would
be covered by proviso (b). It reads as under :
"9A. No employer, who proposes to effect any change
in the conditions of service applicable to any workman in
~, __
•
--
-~
. \
L.R. D'SOUZA v. EX. ENG., s. RAI~WAY (Desai, J.)
263 ..
respect of any matter specified in the Fourth Schedule,
shall effect such change-
(a)
x
x
x
x
(b)
x
x
x
x
Provided thai no notice shall be required for effecting any
such change :
(a)
x
x
x
x
(b) where the workmen. likely to be effected by the change
are persons to whom the Fundamental and Supplementary Rules, Civil Servic.es (Classification, Control
and Appeal) Rules, Civil Services (Temporary Service)
Rules, Revised Leave Rules, Civil Services Regulations,
Civilians in Defence Services (Classification, Control
and Appeal) Rules, or the Indian Railway Establishment Code or any other rules or regulations that may
be notified in this behalf by the appropriate Government in the Official Gazette, apply".
It was obligatory upon the employer, who wants to retrench·
the workmen to give notice as contemplated by clause (a) of s. 25.
When a workman is retrenched it cannot be said that change in his
conditions of service is e1fected. The conditions of service are set
out in Fourth Schedule. No item in Fourth Schedule covers the
case of retrenchment.
In fact, retrenchment is specifically covered
by Item IO of the Third Schedule. Now, if retrenchment which
connotes termination of service, cannot constitute change in conditions of service in respect of any item mentioned in Fourth
Schedule, S. 9A would not be attracted. In order to attract s. 9A
the employer must be desirous of effecting a 'change in conditions
of service in respect of any .matter 'specified in Fourth Schedule. If
the change proposed does not cover any matter in Fourth Schedule
s. 9A is not attracted and no notice is necessary. See Workmen of
Sur Iron & Steel Co. (P) Ltd. v. Sur Iron & Steel Company (P)
Ltd.,(') Tata Iron & Steel Company Ltd. v. Workmen(') and Assam
Match Co. Ltd. v. Bijoy Lal .Sen('). Thus if s. 9A is not attracted
the question of seeking exemption from it in the case falling under
(1>:[1971] .1 L.L.J. 570.
(2) [1973] l S.C.R. 594.
0) [1974] l S.C.R. 116.
A
B
c
D
E
F
G
H
A
B
c
D
F
G
H
264
SUPREME COURT REPORTS
(1982] 3 s.c.R.
the proviso would hardly arise. Therefore, ·neither s 9A nor the
proviso•is attracted in this case.
The basic fallacy in the submission
is that notice of change contemplated by s. 9A and notice for a
valid retrenchment under s. 25F are two different aspects of notice, ·
one having no co-relation with the other. It is, therefore, futile to
urge that even if termination of the service of the petitioner constitutes retrenchment it would nevertheless be valid because the notice
contemplated by s. 25F would be dispensed with in view of the
provision contained in s. 9A, proviso (b).
That apart, it is an indisputable position that none of the other pre-conditions to a valid.
retrenchment have been complied wi>h in this case because the very
letter of termination of service shows that services were deemed to
have been terminated from a back date which clearly indicates no
notice being given, no compensation being paid and no notice being
given to the.prescribed authority. Therefore, termination of service,
being retrenchment, for failure to comply with s. 25F, would be
void ab initio.
Mr. Francis next contended that as the appellant belonged to
the category of casual labour as defined in rule 2501 in Chapter
XXV of the Indian Railway Establishmeot Manual ('Manual' for
short), no notice prior to termination of bis service is necessary or
required by law in view of the pro.visions contained in Rule 2505.
The submission is that in the case of casual labour the service will
be deemed to have been terminated when such employee absents
himself or on the close of the day.
Rule 2501 reads as under:
"2501. Definition-
(a) Casual labour refers to labour whose employment is
seasonal,.intermittent, sporadic or extends over shorf
periods.
Labour of. this kind is normally recruited
from the nearest available source. It is not liable to
transfer, and the conditions applicable to permanent
and temporary staff do not apply to such labour,
,
(b) The casual labour on railway should be employed only
in the following types of cases, namely :
(i) Staff paid from contingencies except those retained
for more than six months continuously. Such of
those· persons who continue to do the same work
Y-
~
-
L.R. D'SOUZA v. BX ENG., s. RAILWAY (Desai, J.)
265
for which they were engaged or other work of
the same type for more than six months without
a break will be treated as temporary after the
expiry of the six months of continuous employment..
(ii)
Lal\our on projects, irrespective of duration, except
those transferred from other temporary or permanent employment.
(iii) Seasonal labour who are sanctioned for specific
works of less than six months duration. If such
labour is shifted from one work to another of the
same type, e.g., relaying and the total continuous
period of such work at any one time is mor.e than
six months' duration, they should be treated as
temporary after the expiry of six months of continuous employment. For the purpose of determining the eligibility of labour to be treated as
temporary, the criterion should
0be the period of
continuous work put in by each individual labour
on the same type of work and not the period put
in collectively by any particular gang or group of
labourers.
x
x
x
Note:
(I)
x
x
(2)
Once any
individual acquires temporary
status, after fulfilling the conditions indicated
in (i) or (iii) above, he retains that status so
Jong as he is in continuous employment on
the railwayg, In other words, even if he is
transferred by the administration to work of
a different nature he does not lose his temporary status.
(3)
x
x
x
(4) Casual labour should not be deliberately discharged .with.