JUDGEMENT
GAJENDRAGADKAR, J. -
(1.) THE industrial dispute between the appellant, the Bennett Coleman and Co. Employees' Union, and the respondent, the employer-company, which has
given rise to this appeal by special leave was in regard to the
retrenchment of seven workmen effected by the respondent. The respondent
is a firm which carries on the business of publication of newspapers,
periodicals and books. It also does job printing. The head office of the
firm is at Bombay, and at Delhi it prints and publishes the Times of
India and Navbharat Times; job printing work is also done. The department
which undertakes this job work is known as the National Printing Works.
It appears that the respondent felt that the National Printing Works
which was running at a loss could be saved, if at all, by retrenching
surplus workmen, and so, seven workmen were retrenched by it. The
appellant - union disputed the validity of this retrenchment and that
dispute was referred to the industrial tribunal, Delhi, for adjudication.
The tribunal has held that the retrenchment of the seven workmen in
question was lawful and justified, and so, it has answered the question
referred to it in favour of the respondent. It is against the award
pronounced by the tribunal in terms of its finding that the appellant has
come to this Court.
(2.) THOUGH the dispute as originally raised by the appellant concerned seven workmen, it has now been reduced to a dispute in regard to one workmen
alone; out of the seven workmen retrenched, five were compositors and two
machine-men. Five compositors and one machine-man have accepted the
retrenchment and no dispute subsists between them and the respondent any
longer. It is in regard to one machine-man that the present dispute is
confined. The main point which was urged by the appellant before the
tribunal was that the retrenchment was unlawful and unjustified, because
in retrenching the seven workmen the respondent had not followed the
industrial principle of "last come first go." confining ourselves to the
question of the one machine-man with whom this appeal is concerned, the
appellant's case was that there are some other machine-men who joined the
respondent's service later than the retrenched machine-man and that they
should have been retrenched and not the said workmen. This contention is
raised on the basis that the National Printing Works constitutes a part
and a department of main establishment run by the respondent in New Delhi
and so, it was argued that since there are other machine-men working at
the litho printing machine on which the respondent's two papers are
printed, the respondent should have applied the principle of "last come
first go" by reference to the whole list of machine-men and should not
have confined the application of the said principle only to machine-men
in the National Printing Works. This plea naturally raises the question
as to whether the National Printing Works is a part of the bigger
establishment owned by the respondent. The tribunal has made a finding
against the appellant on this question. It has held that the National
Printing Works and the main establishment are two independent sections
and have been treated as such for a very long time. That is why it has
held that the industrial principle of "last come first go" has been
observed by the respondent in discharging the workman in question. It is
common ground that if the said principle has to be applied by reference
to the machine-men employed in the National Printing Works alone no valid
objection can be raised against the retrenchment in question.Sri
Ramamurthi for the appellant contended that the finding of the tribunal
that the National Printing Works is an independent department is wrong in
law and he has argued that the said department and the other
establishment are housed in the same building, that the terms and
conditions of employment of machine-men in the National Printing Works
are substantially the same as those prevailing in the rest of the
establishment, and his argument, therefore, is that it is erroneous to
allow the National Printing Works to be treated as a separate and
independent entity. In support of this argument he has referred us to the
decision of this Court in Indian Cable Co., Ltd., Calcutta v. Its workmen
[(1952) Suppl. 3 S.C.R. 589] as well as to the case of Superintending
Engineer, Machkund, and others v. Workmen of Machkund Hydro-electric
Project and another [A.I.R. 1960 Orissa 205]. We do not think it would be
possible for us to decide this large issue in the present appeal. There
is no evidence on the record in regard to the terms and conditions of
service prevailing in the National Printing Works and the other part of
the establishment, and though it is true that there are some documents
(Exs. W. 23 and M.15-A) which would show that compositors from the job
printing department were liable to be, and in fact were, transferred to
the news department, that itself cannot afford adequate material for
dealing with the larger issue which Sri Ramamurthi seeks to raise. That
being so, we do not propose to deal with the merits of the finding of the
tribunal that the National Printing Works is an independent department
unconnected with the rest of the establishment run by the respondent. The
said question will have to be tried between the parties, if necessary, in
future no more satisfactory material.In our opinion, the award made by
the tribunal can be sustained on the narrow ground that the seniority
list by reference to which the discharge of the machine-men in question
has been sustained by the tribunal was substantially agreed to by the
appellant. It appears that the National Printing Works has been running
at a loss for some time in the past and the respondent was thinking of
closing the said department. That is why on 27 April, 1961 discussion
took place between the parties and the appellant was informed by the
respondent that thirty employees would be retrenched on payment of
compensation as required by law. In pursuance of this discussion, the
seniority list was duly prepared and as required by rule 77 of the
Industrial Rules the said list was communicated to the union on 9 May,
1961. In this list, the machine-men, working in the National Printing Works alone were shown according to their seniority. The appellant raised
some objection in regard to the seniority list of the compositors and
they were duly considered and the said list was modified. No objection
was raised in regard to the seniority list of the machine-men. Acting on
this list, the workmen in question were retrenched on 24 May, 1961, and
as we have already indicated, it is the last four workmen who were
discharged, and so, there can be no objection on the ground that the
principle of "last come first go" has not been followed. That, in our
opinion, afford a good ground for sustaining the finding of the tribunal,
and it is no the ground alone that we confirm the award by the tribunal.
Sri Ramamurthi then attempted to argue that the impugned retrenchment is inconsistent with the agreement entered into between the parties on 2
November, 1960. This agreement shows that the respondent consented to try
the experiment of running the job department even though it was incurring
loss subject to certain conditions. Those conditions are specified in
this agreement. One of these conditions was that as a measures of trial,
the job department would be continued for a period of two years and two
months ending 21 December, 1962, and during this period, the respondent
would not effect any cut in the existing emoluments of the workers,
subject to the terms laid down in Sub-cl. (ii) of Cl.3 as mentioned
thereafter. There were other conditions to which it is not necessary to
refer. The agreement concluded with term that if at the end of the
experimental period, "no loss" position is not reached, the workmen would
be retrenched consequent to the closure of the job department and he paid
their dues in accordance with the provisions of law. Sri Ramamurthi
suggests that by this agreement the respondent undertook to run the
department for the agreed period without retrenching any workman. We are
not impressed by this argument. All that the respondent agreed to do,
subject to the conditions specified in the agreement, was not to close
the job department for the period and see if losses could be cut down so
as to enable the respondent to continue the department still further. The
respondent had agreed not to make any cut in the wages as specified in
Cl.1(i). There was no agreement that there would be no retrenchment.
Therefore, we do not think that the fact that the respondent agreed not
to close down the department for the stipulated period can be said to
imply a further agreement that during the said period no retrenchment
could be effected. That being so, we do not think there is any substance
in the argument that the retrenchment in question is contrary to the
implied terms of this agreement.The result is, the appeal fails and is
dismissed. There would be no order as to costs.;