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RAI SAHIB RAMDAYAL GHASIRAM OIL MILLS versus THE LABOUR APPELLATE TRIBUNAL AND ANOTHER

Citation: [1963] SUPP. 2 S.C.R. 845 · Decided: 10-12-1962 · Supreme Court of India · Bench: SYED JAFFER IMAM · Disposal: Appeal(s) allowed

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Judgment (excerpt)

2 S.C.R. 
SUPREME COURT REPORTS 
RAI SAHIB RAMDAYAL GHASIRAM 
OIL MILLS 
v. 
THE LABOUR APPELLATE TRIBUNAL 
AND ANOTHER 
845 
(S. J. IMAM, J. L. KAPUR, K. SUBBA RAo and 
J. R. MuDHOLKAR, JJ.) 
Industrial Dispute-Closure of the Mill on the ground of 
loss-Workmen awarded retrenchment benefit-Mill reopened 
-Only some of the former 
workers 
re-employed-Wag" 
reduced-Reference made to single member Tribunal-Another 
sinyle member Tribunal after /&is retirement-No fresh reference 
made-Whether neio Tri'bunal hao jurisdiction to adjndicate-
Constitution of India, Art. 226-Industrial Disputes 
.let 
1947 (14 of 1947), ss. 7 (1), 8 (2), 10 (1) (c)-lndustrial Dis-
1iutes Act, 1947, as amended by Industrial Disputes (Amend-
ment) Act 1953, s. 25 (H). 
The appelhnt concern was closed on the ground that it 
incurred heavy losses. 
Thereupon the workmen 
raised 
an 
industria1 dispute and they were awarded rctrcnclunent bene-
fits. 
About.two years later the appellant concern was re-
opened. But only some of the former wor werekers re-employ-
ed along with some new recruits. The wages were lower than 
before. The workers put forward certain damar.ds including for 
the demand for absorption of those of the workmen who were 
not re-employed when the mill was reopened and for payment 
to them of compensation for une1nployment from the date of re-
opening. An industrial dispute having arisen the Government 
constituted a single Member Tribunal and made a reference of 
the disputes to that Tribunal. Thereafter the Member retired. 
The Governmeut then purporting to act under s. 7 (I) of the 
Industrial Dispute Act, 1947 and in supercessio.n of the pre~ 
vious notification constituted a single ~1ember 'fribunal. This 
'fribunal to which no fresh reference was n1ade proceeded with 
the adjmlication of the dispute. Apart· from the demands 
already made the workers conlendcd before the Tribunal that 
they were entitled to the benefits under s; 25 (H) of the In-
dustrial Dispules Act, as amended by the Industrial Dhputcs 
(Amendment) Act, 1953. 
Thr, appellant contended that the 
Tribunal had no jurisdiction to adjudicate upon the dispute 
J96f 
1962 
Rlli SaW Ramdayal 
G. asiram Oil Mills 
v. 
The Labour AJ,pellate 
Tribunal 
846 SUPREME COURT REPORTS [1963] StJPP. 
and that s. 25 (H) wa• not available to the fvrmer workmen 
who had been retrenched. 
The first contention of the appe-
llant was rejected. 
Even though the second contention was 
accepted the r[ rih11naJ made an order in favour of the \.\'Orkmcn 
on the ground that though they cannot clain1 the statutory 
benefits of s. 25 (H) the principle of sucialjusticc 11n<lcrlyi11g 
that section entitled them to receive s.-ila.ries au<l allowances 
from the date of reopening the mill. The appellaut preferred 
an appeal to the Industrial Appellate Tribunal. On the dis-
missal of that appeal the appellant filed a writ petition before 
the High Conrt of Bombay. The High Court sununarily dis-
missed that petition but a c·crtificatc was granted to appeal 
tu this Court. 
The appellant reitrated before this Court the two con-
tcutiuus stated abvve. 
Held, that snb-s. (I) of s. 7 of the Industrial Disputes 
Act empowers the Government to constitute a Tribunal. But 
n1ercly constituting a Tribunal tOr adjudicaiion of disputes is 
not enough. It has also to act under s. 10 and make a specific 
reference to it of each dispute for adjudication. Without such 
a reference the 'fribunal docs not get any jurisdiction to ad-
judicate upou any dispute. 
The provisions of s. 25 (H) caunut apply to workmen 
\vho had been retrenched before thls section came into force. 
'fhe provision not Ueing retrospective no tribunal h<is jurisdic-
tion on the basis of its own conception of social justice to 
apply it or its underlying "principle" to a dispute which 
arose before the provision cainc into force. 
CIVIL APPELLATEjURSIDICTION: Civil Appeal 
No. 593/1960. 
Appeal from the order dated October HI, 
1956, of 'the Bombay High Court in special Civil 
Application No. 2832 of 1956. 
Bi11lian N um-in and K. L. 
JJf eh tu, for the 
appellant. 
The respondent did not appear. 
1962. December JO. 
The Judgment of the 
Court· was delivered by 
• 
-, 
2 S.C.R. 
SUPREME COURT REPORTS 
847 
MUDHOLKAit, J.-This is an appeal by a 
certificate from the summary dismissal by the 
Bombay High Court of a writ petition under Arts. 
226 and 227 of the Constitution. The relevant facts 
arc these: 
Rai Sahib Ramdayal Ghasiram Oil .l

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