THE MANAGEMENT OF NARENDRA & COMPANY PRIVATE LIMITED Vs. THE WORKMEN OF NARENDRA & COMPANY
LAWS(SC)-2016-1-17
SUPREME COURT OF INDIA
Decided on January 04,2016

The Management Of Narendra And Company Private Limited Appellant
VERSUS
The Workmen Of Narendra And Company Respondents

JUDGEMENT

- (1.) Leave granted.
(2.) Short question is whether the respondents-workmen are entitled to the back wages till the beginning of January, 1995 or till January, 1999. The Labour Court, Bangalore by award dated 02.08.2002 directed reinstatement of the workmen with 50 per cent back wages. That award was challenged by the appellant before the High Court of Karnataka at Bangalore by judgment dated 14.03.2008 in Writ Petition No. 41489 of 2002. Though the appellant attacked the award on several grounds, the learned Single Judge declined to interfere with the award on reinstatement. However, taking note of the fact that the industry was virtually closed by the beginning of January, 1995, it was ordered that the award on back wages would be limited to January, 1995. The learned Single Judge, in fact, had entered a finding in that regard which reads as follows: "From the record it shows that the industry was functioning till the beginning of 1995 and the Union though has led the evidence but has not proved as to whether the industry was functioning thereafter or not."
(3.) In appeal, the Division Bench took the view that apart from the sole evidence of MW-3, there was no other evidence on record to prove that the industry was not functional after January, 1995. However, there was no dispute with regard to the fact that the industry was closed, and therefore, reinstatement was not possible. In that background, without any further material available on record, the Division Bench took the view that interest of justice would be met by extending the benefit of 50 per cent back wages upto the end of January, 1999 and consequential benefits with closure compensation as well as gratuity upto that date. We may extract the relevant consideration by the Division Bench in the impugned judgment: "... According to MW-3, the machines were operated only till the beginning of January, 1995. However, to substantiate that contention, there is no evidence on record. In the light of such evidence on record, it is not possible to record a categorical finding that the industry was closed in the year 1995 itself. Having regard to the fact that the industry was closed, the order of re-instatement has been set aside by the learned single Judge and the workmen were entitled to retrenchment compensation and only 50% back wages is awarded, we are of the view that justice would be met by extending the benefit of 50% back wages upto the end of January 1999 and they are also entitled to consequential benefits with closure compensation as well as gratuity upto that date. ...";


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