D. Y. Chandrachud, J. - (1.) This petition is directed against an order of the industrial Court dated 11th April, 2002. The Industrial Court allowed a Revision application filed by the Union against the order of the Labour Court. The Labour court held that the petitioner was involved in an unfair labour practice in discharging or dismissing the workmen by way of victimization. The Labour court held that the termination was not bona fide but in colourable exercise of the rights of the employer and in disregard of the principles of natural justice. The petitioner was directed to reinstate the workmen with 50% backwages. The industrial Court has in revision, directed reinstatement with full backwages and continuity of service.
(2.) The petitioner was established in the then Province of Bombay in 1923. The petitioner initially carried on the business of import and later, the manufacture of pharmaceutical drugs made on loan-licence basis for Roche pharmaceutical India Ltd. Sometime in the year 1959 F. Hoffman-La Roche and co. of Switzerland acquired a majority control over the foreign principal of the petitioner. On 1st April, 1961, Roche Pharmaceutical India Ltd. , purchased the bombay factory of the petitioner. Thereafter, for the next fifteen years, the petitioner was engaged in trading and marketing drugs and formulations manufactured at its facility at Prabhadevi, Mumbai. Sometime in 1976, the petitioner established a factory at Bangalore for the manufacture of bulk drugs and pharmaceutical formulations. On 1st August, 1980, the factory licence at prabhadevi came to be surrendered, after which it has been stated that no manufacturing activity took place in Mumbai.
(3.) On 10th December, 1984, a notice was issued by the petitioner to all its employees at Mumbai recording that the audited accounts of the Company showed a loss in 1983 consequent upon which it was necessary for the management to take immediate remedial measures. The management, it was stated, had decided to economize and streamline the expenses of the Company to eliminate the duplication of certain activities. For the first time, it was decided to centralize all the activities of the Company at one location by shifting them to bangalore where the Company already had manufacturing and distribution facilities. The management, therefore, communicated that the workmen employed in the establishment of Mumbai would be shifted to the establishment at Bangalore in a phased manner commencing from March, 1985. Consequently all the workmen at the establishments at Parel and Worli were to stand transferred to Bangalore from a date which was to be notified independently. The workmen were informed that on transfer, they would continue to be governed by the existing terms and conditions of service. The Company, it may be noted, had establishments at the material time in Mumbai at Worli and Parel. The administration, Personnel, Finance and Distribution Departments and Material stores were situated at the relevant time at Parel. The Marketing and procurement Departments were situated at Rajan House, Worli. On 21st december, 1984 and 16th January, 1985, individual letters of transfer were addressed to the workmen informing them of their relocation to the Bangalore office of the Company. The workmen were informed that in the event that they did not accept transfer, the management would proceed to take appropriate action in accordance with law and would consider the payment of compensation if the workmen left service of the Company voluntarily.;