Altamas Kabir, J. - (1.) This appeal is directed against the judgment and order, dated 21st July, 1977, passed by a learned Single Judge of this Court in Civil Rule No. 306(W) of 1973, dismissing the writ application of the appellant herein and upholding the award passed by the Fifth Industrial Tribunal, Calcutta.
(2.) The appellant, as it appears from the writ petition, is a company which, at the material time, was engaged in the manufacture of jute goods and other products. Mcleod and Company Ltd., having its office at Mcleod House 3. Netaji Subhas Road, Calcutta - l, were the Secretaries and Treasurers of the appellant company. The case made out in the writ petition is chat since 1963/64, the Presidency Jute Mills, owned by the company, became an uneconomical unit. For the year ending 31st July, 1964, the company suffered a loss of about Rs. 5 lakhs. For the year ending 31st July 1965, the company made a profit of about Rs. 1 lakh. However, for the year ending 31st of July 1966, the company incurred a loss of about Rs. 12 lakhs. In spite of the company's efforts to make the said mills an economically viable unit, the mills continued to suffer severe losses and from August 1966, the company began to incur a loss of about Rs. 2 lakhs every month. According to the appellant-company, the loss suffered by the company during the said three years far exceeded the amount of subscribed capital and reserve capital of the company. In view of the said situation, the company decided to adopt a scheme of rationalisation, whereby the assets, the workmen and machinery of the Presidency Jute Mills would stand transferred to its two sister mills, namely, the Kelvin Jute Mills and the Alexandra Jute Mills, By virture of the said scheme of rationalisation, the workmen of the Presidencv Jute Mills were to be absorbed by the said two mills with continuity of service and the conditions of service remaining unaffected, without causing any loss of employment or retrenchment.
(3.) It appears that the Industrial Committee on Jute set up by the Government of India, at its first session held in Calcutta on or about 1 st and 2nd August, 1958, recognized the need for such transfer of production and workmen from one jute mill to another by way of rationalisation instead of winding up or closing the sick mill. The Special Committee on Rationalisation in the Jute Industry, set up by the Government of West Bengal, laid down the procedure to be followed in case of transfer of production. The procedure laid down by the Special Committee was duly approved by the Central Wages Board for the Jute Industry.;