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AGRA ELECTRIC SUPPLY CO. LTD. versus SRI ALLADIN & ORS.

Citation: [1970] 1 S.C.R. 808 · Decided: 12-08-1969 · Supreme Court of India · Bench: J.M. SHELAT · Disposal: Case Partly allowed

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Judgment (excerpt)

AGRA ELECTRIC SUPPLY CO. LTD. 
v. 
SRI ALLADIN & ORS. 
A 11g11sr J 2, 1969 
[J. M. SHELAT A!'D C. A. VAIDIALl:\GAM, JJ.] 
J11du11rial E111ploy111e.111 (Stn11ding Orders) Act (20 of 1946)-Stand-
ing Ordtr.r certified under Acr-Whe1Jrer applicable to H'Orkmen employ-
ed bej('re such cer1ificatio11. 
Termination of service d11ri11g probation-Real 
basis 
1nisconducr-
Order worded as si1nple tern1i11a1ion-Power of Labour Court to go be-
hind and asc~rtain real basis. 
Prior to 1951 there were no rules or conditions of service prescribing 
the age o! supc(annuation in the appellant-Company. In 1951, its Stand-
ing Ordtrs were ccrtilied under the Industrial 
EmployQ!Cnt 
(Standing 
Orders) Act, 1946, and were brought into force. Standing Order 32 pro-
vided 5~ years as !he age of supcran1ioation. 'fhe first three respondents 
were workmen employed in the Company in 1929, 1935 and 1937. Re-
lying on Standing Order 32 the Company served notices on these 3 \\'Ork-
ruen who had :tttained the <iges of 58. 64 and 59 on the dates of the f(.-s-
pcctive notices, and rc-lircd them. ·1ne Labour Court, to which the dispute 
arising from such rc1ircn1ent \Vas referred, held that the Standing Orders 
having he.en certified long after these \\'Orkmen \Vere employed and the 
condition, or their employment not having provided any age of retiretnent, 
the Company could not apply Standing Order 32 to them, that the orders 
of retirement on the ground or superannuation were h;1d and gave con.<>e· 
quential directions. 
·rhe Company appointed the 4th respnndcnt in I>ccember 1965 as a 
cleaner. 
The lctt~r Clf appointment staled that he v.·as to be a probationer 
for 6 months v.:ith discretion to the concerned officer to c~tend the period. 
The letter also stated that during the probationary period his servicf" ":as 
liable to termination \Vilhout any notiee and without as..c;igning any H:aions 
therefor. 
His service \\'as tern1inatcd 
in February 
1966. 
Before the 
Labour Court evidence \\'ac; led on bchalr df the Management that 
the 
work.man's service v.•as terminated 
becauc;c his v.·ork as probationer was 
unsatisfactory. The L1hour Court found on the evidence heforc it that 
the real reason for pas<jing: the impugned order of termination wa-; not the 
alleged unsatisfnctory work but his having unauthorisedly used a motor· 
cycle belonging to an engineer of the Con1pany and caused <lamag.: to it. 
Jn that viev.•, the Labour Court held that 
the exercise of the power to 
terminate vt'as not bnnn fide and consequently set aside that order also. 
Jn appeal to thi<; (',.ourl, 
A 
B 
c 
Il 
E 
F 
G 
HELD: (1) (a) The Act provides that every employer o'{ an indus-
trial e&tablishmen: must have his Standing Orders certified, that the Stand· 
ing Order' should be submitted t0 the certifying 
authority along 
wi1h 
particulars of all the W(lrkmen then employed as 
also the name of 1h:-
11nion if any. to \\·hich they belong, that the certifying authority should 
f!ive notice to the union, and in ilc; absence, to the workmen to make their 
1 I 
ohjection5 and an op1l0rtunity to the employer and the rcpre<;cntatives of 
1hc workntcn for heing heard. that the authority c;hould thereafter adjudi· 
<:ate upon the rairncc;s and rcasonahlencs,.; of the Standing Orders submit-
l
A 
c 
D 
AGRA ELECT. SUPPLY CO. v. ALLAD!N 
809 
ted, that the authority should certifY the-Standing Orders wjth. modilica-
tioni or additions if any, that any person aggrieved, by such certification· 
may appeal to the appellate authority, that the Standing Orders as fi.na1ly 
certified come into operation on a particular day, that the ..... employer should 
publish them on notice boards in such a manner that they become ,Casily 
known to the workmen, and that, after the_ expiry Of 6 months• froin, the_ 
date on which the Standing· Orders or the last modification. came into 
operation, either the employer or any of the workmen could apply for a 
mOdification. 
These provisions show 
that once the Standing Qrders ~S, 
certified come into operation, they become binding._ on the empJoyer· as 
well as all the woi-kmen presently enzployed_ and those employed-
there-
aftei in the, establishment, as 
4 uiliform conditions of.._ service. If. th~ Stan~~!· 
·~ 
in:· OrdeIS were to bind only those who are subsequently employ.ed, ,tn~· . 
r«;,ult ·would be that there 
would be ,different.,copditions Of employmen\ " 
for different classes of workmen, depending 
on whethe;r the workmen .; 
we

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