VAIDIALINGAM, J. - (1.) THIS appeal, by special leave, is directed against the award dated September 30, 1964, of the Central Government Industrial Tribunal, Calcutta, holding that the appellant-management is liable to pay compensation to its workmen, under the principal part of S. 25FFF(1) of the Industrial Disputes Act, 1947 (Act XIV of 1947) (hereinafter called the Act).
(2.) SECTION 25FFF(1) of the Act, as it then stood and which is material, for the present purpose, was as follows : "25FFF(1). where an undertaking is closed down for any reason whatsoever, every workman who has been in continuous service for not less than one year in that undertaking immediately before such closure shall, subject to the provisions of sub-s. (2) be entitled to notice and compensation in accordance with the provisions of S. 25F, as if the workman had been retrenched. Provided that were the undertaking is closed down on account of unavoidable circumstances beyond the control of the employer, the compensation to be paid to the workman under cl. (b) of S. 25F, shall not exceed his average pay for three months. Explanation : An undertaking which is closed down by reason merely of financial difficulties (including financial losses) or accumulation of undisposed of stocks shall not be deemed to have been closed down on account of unavoidable circumstances beyond the control of the employer within the meaning of the proviso to this sub-section." The West Jamuria Colliery which belongs to the appellant was closed down, from September 15, 1963. Formerly, Messrs Macneill & Barry Limited were the managing agents of this company. The managing agency ceased from December 31, 1959 and from January 1, 1960 the affairs of the company were being managed by a Board of Directors. The colliery had four seams, Taltore, Ponthati, Koithee and Jamuria. At the time of the closure of the colliery, the Jamuria seam was being worked. Consequent on dispute, arising between the management and its workmen, regarding the quantum of compensation, payable on the closure of the colliery, the same was referred, by the Central Government, to the Central Government Industrial Tribunal, Calcutta, for adjudication.
(3.) THE case of management was that the colliery had to be closed, on account of unavoidable circumstances, beyond its control and hence it was liable to pay compensation to its workmen under clause (b) of S. 25F, in view of the proviso to sub-s. (1) of S. 25FFF. On the other hand, the contention of workmen was that the closure itself was unjustified and, in any event, the closure of the colliery was by reason merely of financial difficulties experienced by the management, and hence, in view of the Explanation to the proviso of sub-s. (1) of S. 25FFF they were entitled to compensation under the principal part of sub-s. (1) of s. 25FFF. The Industrial Tribunal has accepted the case of the workmen and has held that the closure of the colliery was almost entirely due to financial difficulties, and that the claim of the management, that the closure is due to unavoidable circumstances beyond its control, cannot be accepted.;