Supreme Court Dismisses Appeals in Employment Termination Case — Employees Entitled to Relief Under Payment of Wages Act. Employees' Strike Did Not Constitute Abandonment of Employment.

  • 0
Judgement Image
Font size:
Print

Case Note & Summary

The dispute arose between Express Newspapers (P) Ltd. and its employees following a strike initiated on December 31, 1956, due to unmet demands. The management issued notices threatening termination if employees did not return to work, ultimately removing names from the muster roll on January 14, 1957, claiming abandonment of employment. The strike was called off on March 26, 1957, but many employees could not return as their positions were filled. The Payment of Wages Authority dismissed the employees' claims for wages, leading to writ petitions in the High Court, which were allowed. The appellants contended that the strike was illegal and that employees had abandoned their employment. The court analyzed the Standing Order 25(1), which required notice for termination, and concluded that the management's actions constituted termination without notice. The court emphasized that the employees' strike indicated a desire to continue employment, not abandonment. The appeals were dismissed, affirming the employees' entitlement to relief under the Payment of Wages Act.

Headnote

A) Employment Law - Termination of Employment - Validity of Termination - Payment of Wages Act, 1936, Section 15 - The court held that the removal of employees' names from the muster roll without notice constituted termination of employment, and the employees did not abandon their employment by going on strike. The management's unilateral imposition of new terms did not convert the absence into abandonment. The employees were entitled to relief under the Act (Paras 1-2).

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the employees abandoned their employment by going on strike and if the termination of their employment was valid under the Payment of Wages Act, 1936.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The Supreme Court dismissed the appeals, holding that the removal of employees' names from the muster roll constituted termination without notice, and the employees were entitled to relief under the Payment of Wages Act.

Law Points

  • Termination of employment
  • Abandonment of employment
  • Right to wages
  • Industrial Disputes Act
  • Payment of Wages Act
Subscribe to unlock Law Points Subscribe Now

Case Details

Civil Appeal Nos. 294 and 295 of 1961

1962-07-25

J. R. Mudholkar, P. B. Gajendragadkar, K. C. Das Gupta

A. V. Viswanatha Sastri, G. Gopalakrishnan, V. J. Merohant, K. T. Sule, Janardan Sharma

Express Newspapers (P) Ltd.

Michael Mark and others

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Dispute regarding termination of employment and entitlement to wages following a strike.

Remedy Sought

Employees sought relief for wages and compensation under the Payment of Wages Act.

Filing Reason

Employees claimed wrongful termination and sought wages after being removed from the muster roll.

Previous Decisions

The Payment of Wages Authority dismissed the employees' claims, which were later allowed by the High Court.

Issues

Whether the employees abandoned their employment by going on strike Whether the termination of employment was valid under the Payment of Wages Act

Submissions/Arguments

Appellants argued that the strike was illegal and constituted abandonment of employment. Respondents contended that their strike was a legitimate demand for better terms and did not indicate abandonment.

Ratio Decidendi

The court established that unilateral termination of employment without notice is invalid, and participation in a strike does not equate to abandonment of employment.

Judgment Excerpts

The employment of permanent employees on monthly rates of pay may be terminated by giving one month's notice or on payment of one month's wages in lieu of notice. The management could not, by imposing a new term of employment, unilaterally convert the absence from duty of striking employees into abandonment of their employment.

Procedural History

The case involved appeals from the Bombay High Court's orders allowing writ petitions filed by employees after their claims were dismissed by the Payment of Wages Authority.

Acts & Sections

  • Payment of Wages Act, 1936: Section 15
  • Industrial Disputes Act:
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court High Court of Judicature at Bombay Hears Arbitration Petitions Challenging Arbitral Awards in Real Estate Development Dispute — Awards Dated 22-23 April 2022 in Favour of Claimants. Court considers whether awards passed under Arbitration and Concil...
Related Judgement
High Court High Court of Karnataka Dismisses Appeal in Land Acquisition Lapse Case — Acquisition Under City of Bangalore Improvement Act, 1945 Not Lapsed Despite Non-Completion of Scheme. Possession Taken and Award Passed, No Abandonment or Lapse Under Sectio...