- (1.) IN the instant application under article 226 of the Constitution of India, the petitioner, inter alia, challenges an order of reference dated December 27, 1988 issued by the Assistant secretary, Government of West Bengal under memo No. 2938-I. R which is annexure T to the petition. The issue referred to in the aforesaid order of reference is as follows :-"whether retrenchment of Sri Amar Nath Chatterjee is justified ? To what relief, if any, is he entitled. "
(2.) THE petitioner is an existing company within the meaning of companies Act, 1956. The business activities of the petitioner company are two-fold namely, trading and manufacturing. Owing to the rescission in business, the Board of Directors of the company in its meeting held on october 8, 1986 reviewed the entire situation of the company and it was observed that the company had been incurring loss due to steep rise in the cost of raw materials and the company also was experiencing other manufacturing problems. It was ultimately decided in the said meeting to keep the factory in a nucleus form till a new profitable product line could be identified. In the said meeting ultimately it was decided to terminate the services of surplus workers phasewise with payment of full dues and compensation under the law.
(3.) ACCORDINGLY, two notices of retrenchment dated October 22, 1986 and december 26, 1986 were issued by the company whereby 32 workmen were retrenched. It is alleged that by the said notices, each of the retrenched workmen was tendered in cash of one month's wages in line of notice and retrenchment compensation as per law together with their wages upto the respective dates of the notices.;