SAXBY AND FARMER (INDIA) PVT. LTD. versus THEIR WORKMEN

Citation: [1973] 3 S.C.R. 830 · Decided: 29-03-1973 · Supreme Court of India · Bench: C.A. VAIDYIALINGAM · Disposal: Case Allowed

Judgment (excerpt)

830 
SAXBY AND FARMER. (INDIA l PVT. LTD. 
v. 
THEIR WPRKMEN 
March 29, 1973 
(A. N, GROVER AND C. A. VA!DIALANOAM, JJ.] 
Lubour Law-Conipany producing 
essential goodi for 
ratlways-
Wliether workmen entitled to unpaid festival holida,vs In addition to ren 
paid holidays. 
The appellant company was a unit of the Engineering Industry 
in 
West Bengal having three factories in varibus parts of Calcutta. It was 
solely engaged in the production of brakes and signalling equipment for 
the railways. 
The Government of West Bengal declared the appellant to 
be a public utility service in exercise of power conferred by s. 2(c) (vi-) 
of the Industrial Disputes Act, 1947, and also an 'essential service' under 
the Defence of India Rules.. 
At the instance of the appellant company 
the Government of West Bengal re
1ferred to the Industrial Tribunal the 
question \Vhether the nine unpaid festival holidays allowed by the COIDw 
pany to its workmen in addition to paid festival and other holidays should 
be continued. 
The Tribunal, impressed by the fact that unpaid festival 
holid~ys had been enjoyed by the workmen for a long time gave its award 
in fa,·nur of the workmen. 
Allowing the company's appeal, 
B 
c 
HELD : The Tribunal was whoijy oblivious of .the present day condi-
tions and the necessity for increased 
producti.on, 
particularly, 
in the 
n1attcr of utility companies and the companij!s that are producing goods 
E. 
for essential services like those carried on by· the Indian Railways. 
This 
Court has observed on more than one occasion that it is generally accepted 
that there .are too many public holidays in our country, and that when 
_the need for industrial production is urgent and paramount, it may 
be 
advisable to reduce the nu.mber of such holidays in industrial concerns. 
Indeed it cannot be disputed that a necessary step in the direction 
of 
increasing the country's productivity is the reduction 
of 
number 
o·f 
~~~. 
F 
Ther~ was accordingly no reason or justification for unpaid holidays 
not being curtailed in the present case. 
All the conditions which were 
necessary had been satisfied and the appellant was carrying on the kind 
of \vork which requires efficiency and increased productio:o. ![833E, 834AJ 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1923 of 
!968. 
G 
Appeal by special leave from the Award dated March 11, 1968 
of the VIIth Industrial Tribunal, West Bengal Calcutta in Case 
No. VHI-287 of 1966 published in the Calcutta Gazette dated 
April 18, 1968. 
D. N. Mukherjee, for the appellant. 
The respondent did not appear. 
H 
A 
B 
c 
D 
E 
SAXBY & PARMBR PVT. LTD, V; WORKMBN ( GrO\'tr, J.) 
8 31 
The Judgment of the Court was delivered by , 
GROVER, J. 
This is a .. appeal by special leave from the award 
of the Seventh Industrial Tribunal, West Bengal. 
. 
The appellant company is a unit of the Engineering Industry 
in West Bengal having three Factories in various parts of Calcutta. 
The company employs about 1650 workmen in all these factories. 
According to the appellant, it is solely engaged in the production 
of brakes and signalling equipment for the railways. 
Its pro-
ducts, it is claimed, are essential for tile smooth working of the 
railways, which are its sole customers. 
In order to ensure smooth 
production and uninterrupted flow of supply, the government of 
West Bengal declared the appellant to be a public utility service 
in exercise of the power conferred by sub-clause (vi) of clause (c) 
of s. 2 of the Industrial Disputes Act, 194 7, and also as 'essential 
service' under the De.fence of India Rules. 
It is said as a unit 
of engineering industry, the appellant was a party to certain omni-
bus major awards made in 1958 and the earlier awards of 1949 
and 1950. Ln these awards, the service conditions, including leave 
and holidays of the workmen were standardised. 
The appellant 
has been granted leave and holidays as per those awards and in 
accordance with the provisions of the Factories Act, the Shops and 
Establishment Act and the Employees State Insurance Act. The 
paid holidays which are being granted are ten in a year. 
There 
used to be a system in the appellant company's establishment of 
granting nine days unpaid festival holidays in addition to the paid 
festival and other holidays. 
It is pointed out that in no other 
major industry in the region this system of unpaid festival holi-
days is being followed any longer. 
At the instance of the appellant-compa

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