NATIONAL IRON AND STEEL CO LIMITED Vs. STATE OF WEST BENGAL
LAWS(SC)-1967-1-13
SUPREME COURT OF INDIA (FROM: CALCUTTA)
Decided on January 01,1967

NATIONAL IRON AND STEEL COMPANY LIMITED Appellant
VERSUS
STATE OF WEST BENGAL Respondents

JUDGEMENT

Mitter, J. - (1.) This is an appeal by special leave from an award of the Third Industrial Tribunal, West Bengal, dated September 14, 1963. The appellants are four public limited companies all separately registered under the Indian Companies Act and all carrying on business in the same premises at Belur in the district of Howarh, the respondents being two unions, viz., NISCO Karmachari Sangha, Belur and Howrah and Belur Iron and Steel Workers' Union, Howrah. National Iron and Steel Co Ltd., was engaged in the business of steel rolling and steel casting. Britannia Building and Iron Co Ltd. was engaged in steel fabrications work while National Screw and Wire Products was engaged in the manufacture of wires and nails. Tatanagar Foundry Co. Ltd. carried on the business of manufacturing cast-iron sleepers for railways. By an order, dated August 25, 1959, the Government of West Bengal made a reference under S. 10 of the Industrial Disputes Act, 1947 of what was described as an industrial dispute between "Messrs. National Iron and Steel Co. Ltd., and their allied Concerns, viz., Tatanagar Foundry Co. Ltd., Britannia Building and Iron Co. Ltd., and National Screw and Wire Products Ltd., all of P.O. Belur, District Howrah'', of the one part and their workmen represented by the two unions on the other- regarding the matters specified in the schedule for adjudication. Nine issues were set forth in the schedule. Issue No. 9 was abandoned at the hearing before the Tribunal and need not be considered at all. The other issues were as follows:-"1. Gratuity. 2. Sickness benefit. 3. Leave Rules. 4. Abolition of contract labour. 5. Whether termination of service of Shri Bhadreswar Ghose is justified 6. Whether the durwans and other members of the Watch and Ward staff are entitled to weekly rest 7.Whether retirement of Shri Gopal Das and Shri Ramjatin Pandit at the age 55years is justified To what relief, if any, are they entitled 8. Whether the action of the Company in retrenching the following masons is justified To what relief, if any, are they entitled (i) Shri Sushil, (ii) Shri Sarojit, (iii) Shri Sukdeo, (iv) Shri Khalil **********" Issue No. 8 referred to the retrenchment of four workmen. Of the four, the case of the first workmen, viz., Sushil, alone was pressed at the hearing before the Tribunal. There is no dispute that all the four companies were not concerned with all the issues. Messrs National Iron and Steel Co. Ltd., was primarily concerned with almost all of them. Britannia Building and Iron Co. Ltd. was not concerned with issues 7 and 8 while National Screw Wire Products Ltd., was not interested in issues 4, 5, 7 and 8. Tatanagar Foundry Co. Ltd., was not interested in issues 5, 7 and 8. All the companies were interested in the first three issues.
(2.) The award went against the companies and they have come up in appeal. Appearing on behalf of the appellants, the learned Additional Solicitor-General raised four points. First, he challenged the validity of the order of reference and contended that as all the companies were not concerned in all the items of dispute, one order of reference embracing all of them in some of which some of the appellants were interested while in others they were not, should not have been made. His next contention was that the award as regards gratuity was bad inasmuch as the Tribunal considered only the balance sheets and profit and loss accounts and other documents of National Iron and Steel Co. Ltd. The Tribunal did not have before it similar accounts of the other companies and therefore a comprehensive order of gratuity purporting to be binding on all the companies was bad. The third point raised by the learned counsel was that the award on the question of retrenchment of the workman Sushil was not justified for grounds which will be discussed hereafter. His last contention was that the abolition of contract labour employed by Tatanagar Foundry Co. Ltd. ordered by the Tribunal was wrong inasmuch as it would place the said concern in a very disadvantageous position compared to other concerns which did similar kind of work, namely, producing iron sleepers for use in railways.
(3.) Before considering the points separately, it will be necessary to refer to certain general aspects and the position of the four appellants vis-a-vis their workmen. The finding of the Tribunal is to the effect that there was sufficient functional intergrality between the four concerns which would justify one order of reference. According to the Tribunal, there was sufficient evidence to show that the last three named concerns were allied concerns of the first (National Iron and Steel Co. Ltd.) having common administrative heads and being located in the same premises at Belur. They had one General Manager, one common Labour Officer and common Time Office. They also had a common cash Office, a common shipping department and a common canteen for all the workmen. The workmen of all the concerns were guided by common Standing Orders. The Tribunal relied on Ex 14 being an office order dated March 19, 1957 issued under the signature of the Works Manager of the National Iron and Steel Co. Ltd. which shows that the workmen of all the four concerns had consecutive check numbers. By this office order, check numbers of different departments were revised in the table contained therein. Reference was also made to Ex. F. which contained a list of masons on roll on November 16, 1958. According to the evidence of the Companies' witness, Milan Kumar Dey, Ex. F. Contained a list of masons on the rolls of the four concerns.;


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.