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A. SATYANARAYANA REDDY AND OTHERS versus PRESIDING OFFICER, LABOUR COURT AND OTHERS

Citation: [2016] 5 S.C.R. 408 · Decided: 30-09-2016 · Supreme Court of India · Bench: DIPAK MISRA · Disposal: Appeal(s) allowed

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Judgment (excerpt)

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[2016] 5 S.C.R. 408 
A. SATYANARAYANA REDDY AND OTHERS 
v. 
PRESIDING OFFICER, LABOUR COURT AND OTHERS 
(Civil Appeal No. 3053 of2008) 
SEPTEMBER 30, 2016 
[DIPAK MISRA, V. GOPALA GOWDA AND KURIAN 
JOSEPH, JJ.) 
Industrial Disputes Act, 1947 - s. 33C(2) - Interpretation of. 
vis-a-vis a Voluntary Retirement Scheme - Workmen availed the 
Voluntary Retirement Scheme and received the special compensation 
package - Claim for lay-off compensation uls. 33C(2) - Held: 
Though there is cessation of relationship between the employee and 
the employer in VRS but if it does not cover the past dues like lay-off 
compensation, subsistence allowance, etc., the workman would be 
entitled to approach the Labour Court u/s. 33C(2) - If it is 
specifically covered, or the language of VRS would show that it 
covers the claim under the scheme, no forum will have any 
iurisdiction - On fact, claim pertaining to lay-off compensation 
having not been part of the VRS, the Labour Court has jurisdiction 
to adjudicate u/s. 33C(2) - Thus, matter is remitted to the Labour 
Court for adjudication in accordance with law. 
Allowing the appeal, the Court 
HELD: 1.1 Though there is cessation of relationship 
between the employee and the employer in VRS but if it does not 
cover the past dues like lay-off compensation, subsistence 
allowance, etc., the workman would be entitled to approach the 
Labour Court under Section 33C(2) of the Act. If it is specifically 
covered, or the language of VRS would show that it covers the 
claim under the scheme, no forum will have any jurisdiction. [Para 
16) [420-C-D] 
1.2 With the said clarification, the matter would have been 
directed to be listed before the two-Judge Bench. It is not so 
required. It is noticeable that the claim relating to lay-off 
compensation is not covered in the VRS. The Labour Court, the 
Single Judge and the Division Bench declined to entertain the 
408 
A. SATYANARAYANA REDDY AND OTHERS v .. PRESIDING 
OFFICER, LABOUR COURT 
claim on the ground that they had no jurisdiction to adjudicate 
the controversy. The claim pertaining to lay-off compensation 
having not been part of the VRS, the Labour Court has jurisdiction 
to adjudicate under Section 33C(2) of the Act. Therefore, the 
judgment and order of the High Court and that of the Labour 
Court is set aside. The matter is remitted to the Labour Court 
for adjudication in accordance with law. The Labour Court would 
finalise the claim preferred under Section 33C(2) of the Act on 
its own merits within the stipulated period. (Para 17, 18] (420-D-
G] 
National Buildings Construction Corporation v. Pritam 
Singh Gill and others (1972) 2 SCC 1 : 1973 (1) SCR 
40; A.K. Bindal and another v. Union of India and 
others (2003) 5 SCC 163:2003 (3) SCR 928; A. 
Satycmarayrma Reddy and others ~: Presiding Officer, 
Labour Court, Guntur and others (2008) 5 SCC 280 : 
2008 (7) SCR 105; Pal v. Pal VRS Employees Welfare 
Association 2002 - 1 LLJ Bombay 527; Government 
Soap Factory, Bangalore v. labour Court AIR 1970 
Mysore 225;Central Bank of India v. P.S. Rajagopalan 
(1964) 3 SCR 140; Mis Kesoram Coflan Mills Ltd. v. 
Gangadhar & others (1964) 2 SCR 809; U.P. Electric 
Supply Co. Ltd. v. R.K. Shukla and another 1969 (2) 
SCC 400:1970 (1) SCR 507 - referred to. 
Case law reference 
1973 (1) SCR 40 
referred to 
Para 1 
20Q~ (3) SCR 928 
referred to 
Para 1 
200~ (7) SCR 105 
referred to 
Para 1 
2002 - 1 LLJ Bombay 527 referred to 
Para6 
AIR 1970 Mysore 225 
referred to 
Para6 
(1964) 3 SCR 140 
referred to 
Para 10 
(1964) 2 SCR 809 
referred to 
Para 10 
1970 (1) SCR 507 
referred to 
Para 11 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 3053 
of2008. 
409 
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SUPREME COURT REPORTS 
[2016] 5 S.C.R. 
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From the Judgment and Order dated 13.04.2005 of the High Court 
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of Andhra Pradesh at Hyderabad, in Writ Appeal No. 820 of2005. 
A. Subba Rao, Adv. for the Appellants. 
Mohanprasad Meharia, G. N. Reddy, Advs. for the Respondents. 
The Judgment of the Court was delivered by 
DIPAK MISRA, J. I. A two-Judge Bench while dealing with 
the interpretation of provisions of Sections 33C(2) of the Industrial 
Disputes Act, 194 7 (for short, "the Act") vis-a-vis a Voluntary Retirement 
Scheme framed by the State of Andhra Pradesh noticed that the 
conclusion arrived at by the Division Bench of the High Court of Andhra 
Pradesh in Writ Appeal No. 820 of2005, whereby it had given the stamp 
o

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