S S SHETTY Vs. BHARAT NIDHI LIMITED
LAWS(SC)-1957-9-1
SUPREME COURT OF INDIA (FROM: ALLAHABAD)
Decided on September 17,1957

S.S.SHETTY Appellant
VERSUS
BHARAT NIDHI,LIMITED Respondents

JUDGEMENT

- (1.) This appeal with special leave is directed against the decision of the Labour Appellate Tribunal of India, Lucknow, confirming, on appeal the award made by the Central Government Industrial Tribunal, Calcutta in a dispute between the appellant and the respondent.
(2.) The appellant took up service with the respondent then known as the Bharat Bank Ltd., with effect from 1st July 1944, as an Inspector at Bombay in the grade of Rs. 170- 10- 200-20-400 and was given three increments when the first increment fell due as from 1st October 1945. He was also given promotions on 1st October 1946 and on 1st October 1947, and was drawing Rs. 240 per month plus a special allowance for a servant of Rs. 30 per month at the time when he was discharged by the respondent on 5th August 1949, on the plea that he had become surplus to the requirement of the respondent. The Government of India, Ministry of Labour had by Notification No. L. R. 2 (273) dated 21st February 1950, referred for adjudication to the Central Government Industrial Tribunal at Calcutta the disputes pending between the various banks and their employees, and the appellant's case came up for hearing in the course of those proceedings before that Tribunal which held on 5th December 1050, that the order of discharge of the appellant was illegal and that the respondent should take him back in service as well as pay the appellant his arrears of salary and allowances from the date of discharge. This direction was to be carried out within a month of the date of the publication of the award which was actually published in the Gazette of India (part II Section 3, page 1143) of 30th December 1950.
(3.) On 30th January 1951, the respondent preferred an appeal against the said order to the Labour Appellate Tribunal, Calcutta sitting at Allahabad which by its decision dated 25th September 1951, upheld the directions given by the Industrial Tribunal and dismissed the appeal. The respondent failed and neglected to implement the decision of the Labour Appellate Tribunal within the prescribed period in spite of the appellant's intimating to the respondent by his letter dated 10th October 1951, at its address at 37, Faiz Bazar, Delhi, that he was at Bombay and that he would like to know where he should report himself for duty. By this letter he also claimed arrears of salary and allowances which had not till then been paid to him, apart from the payments made under the interim orders of the Labour Appellate Tribunal. The respondent did not send any reply to the said letter with the result that the appellant served on the respondent a notice on 5th November 1951, through his solicitors intimating that the respondent had failed and neglected to reinstate the appellant in spite of his letter dated 10th October 1951, requesting it to do so. The appellant further intimated to the respondent that by reason of its failure to reinstate him within the prescribed period the respondent had committed a breach of the directions of the Labour Appellate Tribunal and the appellant had therefore become entitled to compensation for the same. The appellant therefore called upon the respondent to pay to him a sum of Rs. 32,388 as the amount of compensation to which he was entitled on account of the pay he would have earned till his 55th year, i.e., upto 4th May 1960, Provident Fund contribution on pay at 6 1/4 % as allowed by the Rules of the Bank and gratuity for about 16 years from 1st July 1944, to 4th May 1960, at 1/2 month's pay per year of service, adjustment being made at 6% per annum for payment, if made as demanded. This amount was exclusive of other claims against the respondent such as amounts due to him under the order dated 17th February 1951, of the Labour Appellate Tribunal of India, Allahabad, arrears of salary etc., withheld by the respondent. As the respondent failed and neglected to send any reply to the said notice or to comply with the requisitions therein contained, the appellant made an application to the Government of India on 22nd February 1952 for recovery of money under S. 20 (1) of the Industrial Disputes (Appellate Tribunal) Act, 1950 (hereinafter referred to as "the Act") to which he received a reply on 13th May 1952, stating that an application for recovery of money under that section could be entertained only if it was confined to the arrears of salary and allowances from the date of his discharge upto the date of the application, and advising him to submit a revised application accordingly. A suggestion was also made in that letter that the appellant might approach the Industrial Tribunal, Calcutta, under S. 20 (2) of the Act for a computation in terms of money of the benefit of reinstatement, as it was only when a definite sum had been so determined that action for recovery under S. 20 (1) of the Act could be taken by the Government.;


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