BANERJEE, J. - (1.) THE petitioner is a company incorporated under the Indian Companies Act and is the owner of a bone mill at Bansberia, in the district of Hooghly, known as the Empire Bone Mill.
(2.) AS between the petitioner -company and its workmen there was an award of an industrial tribunal, presided over by Sri M.C. Banerjee, made as far back as 29 January 1949, under which there was a scheme framed for payment of compensation to workmen either on retirement or on death, or on resignation due to illness or old age, or on termination of service as a result of reduction of the establishment or otherwise to the following effect: (a) On retirement after not less than 25 years' continuous service. Half a month's basic pay for each completed year of service subject to a maximum of 15 months' basic Pay. (b) On death of an employee while in service. - -Half a month's pay for each completed year of service, irrespective of the length of service but subject to the maximum of 15 months' basic pay to be paid to the employee's heirs. (c) On resignation or retirement at any time before the completion of 25 years' service, with the written consent of the employer, owing to illness, old age or any other sufficient cause. -Half a month's basic pay for each year of completed service. (d) On termination of service by the employer, either as the result of reduction of 118 establishment or in any other circumstances not justifying dismissal. - -Half -month's basic pay for each completed year of service, irrespective of the length of service. (e) No gratuity shall be payable when the employee is dismissed for misconduct, (f) Gratuity is to be calculated on the basis of average substantive pay during the last 12 months of service. It is not disputed that the aforesaid scheme was framed to meet the demand of the workmen for payment of compensation in lieu of provident fund, which fund the company did not have. The aforesaid scheme was again approved and continued by an award of another industrial tribunal, presided over by Sri A.T. Das Gupta, in another industrial dispute between the petitioner company and its workmen, made as far back as 19 April 1951. That award is admittedly still in force and operative between the parties.
(3.) CHAPTER V -A of the Industrial Disputes Act, 1947, was brought on the statute book by Industrial Disputes (Amendment) Act, 1953, and came into force with effect from 24 October 1953. Section 25F, in the aforesaid chapter, reads as follows: No workman employed in an industry who has been in continuous service for not less than one year under an employer, shall be retrenched by the employer until (a) the workman has been given one month's notice in writing indicating the reasons for retrenchment and the period of notice has expired or the workman has been paid in lieu of such notice wages for the period of the notice: Provided that no such notice shall be necessary, if the retrenchment is under an agreement which specifies a date for the termination of service; (b) the workman has been paid, at the time of retrenchment, compensation which shall be equivalent to 15 days' average pay for every completed year of service or any part thereof in excees of six months; and (c) notice in the prescribed manner is served on the appropriate Government.;