MANAGEMENT OF MADRAS FERTILIZERS LIMITED Vs. MADRAS FERTILIZERS LTD
LAWS(MAD)-2006-8-101
HIGH COURT OF MADRAS
Decided on August 22,2006

MANAGEMENT OF MADRAS FERTILIZERS LIMITED Appellant
VERSUS
MADRAS FERTILIZERS LTD. Respondents

JUDGEMENT

- (1.) AGGRIEVED by the order of the learned single Judge dated 26. 7. 1999 passed in W. P. No. 381 of 1992, the Management of Madras Fertilizers Limited has filed the above writ appeal.
(2.) THE facts leading to the above writ appeal are as follows:-In the year 1984, the management of Madras Fertilizers Limited framed a policy known as MFL Service Policy, in the nature of service Rules, to take effect from 11. 12. 1984 and applicable to and binding on all employees except those governed by the Standing Orders framed under the Industrial Establishments (Standing Orders) Act. Clause 12 (a) of the said MFL Service Policy enabled the Management to terminate the services of a permanent employee by giving 90 days notice in writing or by paying 90 days pay plus D. A. in lieu of notice. The said Clause read as follows:- "rule 12. Termination a. A permanent employee may be terminated at 90 days notice in writing by the company or by paying 90 days pay plus DA in lieu of notice. A permanent employee desiring to resign shall do so by giving 30 days notice to the Company. Alternatively, the Competent Authority may deduct 30 days pay plus DA from the monies due to the employee, who leaves the employment without giving required notice. "
(3.) CHALLENGING the said Clause as opposed to Public Policy, the Madras Fertilizers Limited Officers' Association, the respondent herein, filed the aforesaid W. P. No. 381 of 1992, praying for a Writ of Declaration to declare the said Clause No. 12 (a) of the MFL Service Policy as illegal, null and void and not binding on the members of the association. By the order impugned in this appeal, the learned single Judge allowed the writ petition and declared the said clause as illegal, null and void and not binding on the members of the respondent-association. It is against the said order that the Management has filed the above writ appeal.;


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