Case Note & Summary
The petitioner, Shree Ram Mills Limited, challenged an order of the Industrial Court, Mumbai, which allowed a complaint filed by the respondent union, Rashtriya Mill Mazdoor Sangh, directing the petitioner to enter the names of 27 workmen on the muster roll and provide them the benefit of permanency. The 27 workmen were clerks who had been on the permanent establishment of the mill. On 31 December 1993, they took voluntary retirement and received full compensation, gratuity, and other legal dues. The very next day, on 1 January 1994, they were re-employed and continued in service. From 6 June 1995, their salaries were revised and the petitioner started paying them by vouchers. The workmen apprehended that this was a move towards discontinuance of their services and filed a complaint alleging that though they were continuously working and had completed 240 days in service, their names were not shown on the muster roll and they were paid by vouchers. They prayed for permanency and entry of their names on the muster roll. The petitioner opposed the complaint, contending that the clerks had taken voluntary retirement and that the mill was declared sick by BIFR and AAIFR, and that the clerks were retained on retainership basis without fixed period or number of days. The Industrial Court allowed the complaint, directing the petitioner to enter the names of the workmen on the muster roll and grant them permanency. The High Court upheld the Industrial Court's order, holding that voluntary retirement does not create a bar for claiming permanency for subsequent continuous service, and that the workmen were entitled to permanency upon completion of 240 days of continuous service. The petition was dismissed.
Headnote
A) Industrial Law - Permanency - Voluntary Retirement - The issue was whether workmen who had taken voluntary retirement and were re-employed could claim permanency for subsequent continuous service - The court held that voluntary retirement does not create a bar and the workmen are entitled to permanency if they complete 240 days of continuous service in the subsequent period - The Industrial Court's order directing entry of names on muster roll and grant of permanency was upheld (Paras 2-5).
Issue of Consideration
Whether the Industrial Court was justified in directing the petitioner to enter the names of 27 workmen on the muster roll and grant them permanency despite their having taken voluntary retirement earlier
Final Decision
The High Court dismissed the writ petition, upholding the Industrial Court's order directing the petitioner to enter the names of the 27 workmen on the muster roll and grant them permanency.
Law Points
- Voluntary retirement does not create a bar for claiming permanency for subsequent continuous service
- Completion of 240 days of continuous service entitles workmen to permanency under Model Standing Orders
- Industrial Court has jurisdiction to entertain complaint under MRTU & PULP Act for unfair labour practice
