LexTHE CACHAR CHAH SRAMIK UNION SILCHAR, ASSAM versus THE MANAGEMENT OF THE TEA ESTATE OF CACHAR, ASSAM
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THE CACHAR CHAH SRAMIK UNION SILCHAR, ASSAM A. v. THE MANAGEMENT OF THE TEA ESTATE OF CACHAR, ASSAM October 26, 1965 [P. B. GAJENDRAGADKAR, C.J., K. N. WANCHOO, M. HIDAYA- TULLAH AND V. RAMASWAMI, JJ.J Industrial Disputes-Standing Orders-cl. 8(a) (i) and (iii), and Cl. 9-Slzanp in 111arket-Lay off; Retrenchnzent-lvhether justified- A1nount of co1npensation; when can be gone into. C In pursuance, of the recommendation of a Committee, appointed on a representation by tbc Tea Producers in the Cachar District to investigate into tbe difficulties of .the Industry as a result of steep fall in prices, a notification was issued providing that there shall be no issue of food- stuffs at concessional rates .and no cash compensation as such in lieu thereof, but the existing dearness allowance was raised temporarily for all estates in the district. The«upon the condition of the industry which was I) on tbe verge of collapse improved; many gardens which had closed down started refunctioning and many of the workmen who were retrenched were taken back in employment. Upon rival contentions, the Industrial Tribunal held that, (i) the financial crisis was genuine and was not a result of any manipulation and that the management was entitled under cl. S(a) (i) and (iii) of the Standing orders to lay off the workmen for an indefinite period, (2) the management was also entitled to retrench workmen under E. cl. 9 of the Standing orders, and ( 3) even if the lay off and retrenchment were bona fide and justified, the workn1en were entitled to a reasonable compensation, and the Tribunal fixed the quantum of compensation. In appeal to this Court : HELD : (i) The lay off in the present case. was justified by cl. S(a) (i) and (iii) of the Standing orders. The last part of cl. S(a) (i) lvhich refers to "other cases beyond his control" \VOtild cover a case of F' sudclen slump in the world market and consequent financial difficulties of the. tea industries [350 BJ Work111en of Dewan Tea Estate v. Their A1anage111ent. [1964] 5 S.C.R. 548, distinguished. (ii) The n1anagement had also the. additional po\.ver to retrench \\.'Ork- men under cl. 9 of the standing orders. [350 CJ G (iii) In the present case, the Tribunal had not committed any error of la\V or legal principle in deciding the an1ount of con1pe.nsation. [351 G] Th,~ quantum of compensation is a matter primarily for the Tribunal to estimate and it ~s not ope.n to this Court to go into this question unless it is shown that the Tribunal has committed any error of law or legal principle indeciding it. [352 B-C[ H CIVIL APPELLATE JURISDICTION: Civil Appeal No. 969 of 1963. • • ) • • • • - ,,:c' c. c. s. UNION v. MANAGEMENT (Ramaswami, J.) 345 A Appeal by special leave from the award dated November 13, 1959 of the Industrial Tribunal, Assam in Sub-References Nos. 25 to 39, 41, 43 to 45, 47 to 51, 54 to 57, 59 to 61, 63 to 67, 69 to 73, 76 and 91 of 1957 and 15 of 1958. C. B. Agarwa/a, D. L. Sen Gupta and K. P. Gupta, for the B appellant. c M. C. Setalvad, Purnendu Choudhri, R. C. Dutta and D. N. Mukherjee, for the re.spondents Nos. 1-5, 7, 9, 11, 14, 15, 20, 22, 25-28, 31(1), 31(4), 31(6), 31(8), 31(10). to 31(14), 32, 33(2), 34, 35, 37-40, 42(2)-42(10), 43 and 44. R. C. Dutta and D. N. Mukherjee, for respondents Nos. 8, 12, 23and42(1). D. N. Mukherjee and D. N. Gupta, for respondents Nos. 6 and 31 (5). D Dipak Chaudhry, for respondent No. 33 (1). E S. N. Mukherjee, for respondent No. ,6 (I). Sukumar Chose, for respondents Nos. 10, 13(2), 13(3), 19, 30, 31(2)(1), 31(5)(1), 31(6)(1), 31(14)(1), 35(1), 35(2)(1), 35(3)(1), 38(1)(1), 38(2)(1) and 43(11). B. P. Maheshwari and S. Murthy, for respondents Nos. 8(1),. 31 (9j(1) and 35(6)(1). The Judgment of the Court was delivered by Ramaswami, J. This appeal is brought, by special leave, f against the award of the Industrial Tribunal, Assam, published in Assam Gazette dated January 13, 1960, vide Assam Govern- ment Notification No. 361/55 / 690 dated December 29, 1959, in References Nos. 25 to 39, 41, 43 to 45, 47 to 51, 54 to 57, 59 to 61. 63 to 67, 69 to 73, 76 and 91 of 1957 and 15 of G II 1958. During the period from June, 1951 to March, 1953 the entire tea industry in the Cachar district of Assam was subject to an unusual economic crisis. There was a steep rise in the cost of production due to increase of wages and introduction of sub- sidised
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