R B BANSILAL ABIRCHAND MILLS GO LIMITED Vs. LABOUR COURT NAGPUR
LAWS(SC)-1971-11-9
SUPREME COURT OF INDIA
Decided on November 25,1971

R.B.BANSILAL ABIRCHAND MILLS COMPANY LIMITED Appellant
VERSUS
LABOUR COURT,NAGPUR Respondents

JUDGEMENT

Mitter, J. - (1.) The main question in these two appeals by certificate is, whether the Labour Court had jurisdiction to entertain the application for lay-off compensation under S. 33-C (2) of the Industrial Disputes Act. The appellant in the first appeal is a limited company which is now under liquidation while the appellant in the second is a partnership firm, the respondents in the two appeals being the Labour Court and different groups of workmen.
(2.) The facts are as follows. In Hinganghat there was a textile mill known as R. B. Bansilal Abirchand Mills which used to employ about 1000 men. The mill was owned by the firm, the appellant in the second appeal. A fire broke out in the mill on March 27, 1959 doing appreciable damage to some of the machines. The employers put up a notice under their Standing Order No. 19 on March 28, 1959 to the effect that the fire of the previous night had caused heavy loss and extensive damage to the departments rendering the mill's working impracticable until necessary repairs and adjustments were carried out. The employees were however to note that the folding and workshop departments would continue to work as usual and notice of resumption of mill's working would be posted after necessary adjustments and repairs were carried out. This was followed by a second notice issued on April 2, 1959 to the effect that the preliminary survey of the fire havoc in conjunction with the insurance companies had shown that over 60 per cent of the machines in the carding, fly frame and Ring frame departments had been damaged and that the damage to the bulk of these machines was such that they might require complete replacement. It was further announced that in the circumstances the Management had no alternative but to declare stoppage of work of all the productive departments of the mills.
(3.) Although it is not possible to be precise as to the extent of the damage caused, a fair idea of it can be had from a letter of Hukumchand Insurance Company Ltd. dated August 28, 1959 stating that the loss to buildings, machinery and accessories had been determined at Rs. 22,624/- by the surveyors. It appears that on 27th April 1960 the representatives of the insurance companies had agreed to reassessment increasing the figure for repairs to Rs. 37,420/-.;


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