Case Note & Summary
The case involved an appeal by the Rashtriya Mill Mazdoor Sangh representing employees of cotton textile mills against the Apollo Mills Limited and others regarding compensation for loss of wages and dearness allowances due to partial closure of mills from November 1, 1951, to July 13, 1952, caused by a government order under the Bombay Electricity (Special Powers) Act, 1946. The government had ordered a reduction in electricity consumption due to a failed monsoon, leading to reduced working hours for the mills. The Industrial Court awarded compensation to the workers, but the Mill Owners' Association appealed to the Labour Appellate Tribunal, which reversed the decision, citing the applicability of Standing Orders and a previous Supreme Court ruling. The Supreme Court found that the Standing Orders did not cover compensation for closure and that the Industrial Court had jurisdiction to award compensation under Section 73 of the Bombay Industrial Relations Act, 1946. The court emphasized the principle of social justice, stating that workers should receive compensation for forced unemployment, and clarified that the previous ruling regarding bonus did not apply to this case. Ultimately, the Supreme Court restored the Industrial Court's award of compensation, directing the mills to pay the workers accordingly.
Headnote
A) Industrial Dispute - Compensation for Closure - Entitlement of Workers - Bombay Industrial Relations Act, 1946, Section 73 - The court held that the workers were entitled to compensation for the period of non-employment due to the mills' closure, as the Standing Orders did not bar such claims. The Industrial Court's jurisdiction to grant compensation was affirmed, emphasizing the need for equitable sharing of losses between employers and employees (Paras 1-2).
Issue of Consideration
Whether the workers were entitled to compensation for loss of wages and dearness allowances due to the partial closure of mills caused by a government order regulating electricity supply.
Final Decision
The Supreme Court allowed the appeal, restored the Industrial Court's award of compensation, and directed the respondents to bear the costs of the proceedings.
Law Points
- Industrial Dispute
- Compensation
- Standing Orders
- Bombay Electricity (Special Powers) Act
- 1946
- Bombay Industrial Relations Act
