Full Judgment Text
| 1 | REPORTABLE | |
| IN THE SUPREME COURT OF INDIA<br>CIVIL APPELLATE JURISDICTION<br>CIVIL APPEAL NO.14 OF 2016<br>(Arising out of SLP (C) No. 13908/2013)<br>THE MANAGEMENT OF NARENDRA &<br>COMPANY PRIVATE LIMITED … APPELLANT (S)<br>VERSUS<br>THE WORKMEN OF NARENDRA & COMPANY … RESPONDENT (S)<br>J U D G M E N T<br>KURIAN, J.:<br>Leave granted.<br>2. Short question is whether the respondents-workmen are<br>entitled to the back wages till the beginning of January, 1995<br>or till January, 1999. The Labour Court, Bangalore by award<br>JUDGMENT<br>dated 02.08.2002 directed reinstatement of the workmen with 50<br>per cent back wages. That award was challenged by the appellant<br>before the High Court of Karnataka at Bangalore by judgment<br>dated 14.03.2008 in Writ Petition No. 41489 of 2002. Though the<br>appellant attacked the award on several grounds, the learned<br>Single Judge declined to interfere with the award on<br>reinstatement. However, taking note of the fact that the<br>industry was virtually closed by the beginning of January, 1995,<br>it was ordered that the award on back wages would be limited to |
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January, 1995. The learned Single Judge, in fact, had entered a
finding in that regard which reads as follows:
“From the record it shows that the industry was
functioning till the beginning of 1995 and the Union
though has led the evidence but has not proved as to
whether the industry was functioning thereafter or
not.”
3. In appeal, the Division Bench took the view that apart
from the sole evidence of MW-3, there was no other evidence on
record to prove that the industry was not functional after
January, 1995. However, there was no dispute with regard to the
fact that the industry was closed, and therefore, reinstatement
was not possible. In that background, without any further
material available on record, the Division Bench took the view
that interest of justice would be met by extending the benefit
of 50 per cent back wages upto the end of January, 1999 and
consequential benefits with closure compensation as well as
JUDGMENT
gratuity upto that date. We may extract the relevant
consideration by the Division Bench in the impugned judgment:
“… According to MW-3, the machines were operated
only till the beginning of January, 1995. However,
to substantiate that contention, there is no
evidence on record. In the light of such evidence on
record, it is not possible to record a categorical
finding that the industry was closed in the year
1995 itself. Having regard to the fact that the
industry was closed, the order of re-instatement has
been set aside by the learned single Judge and the
workmen were entitled to retrenchment compensation
and only 50% back wages is awarded, we are of the
view that justice would be met by extending the
benefit of 50% back wages upto the end of January
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1999 and they are also entitled to consequential
benefits with closure compensation as well as
gratuity upto that date. …”
4. Once the learned Single Judge having seen the records and
come to the conclusion that the industry was not functioning
after January, 1995, there is no justification in entering a
different finding without any further material before the
Division Bench. The appellate bench ought to have noticed that
the statement of MW-3 is itself part of the evidence before the
Labour Court. Be that as it may, in an intra-court appeal, on a
finding of fact, unless the appellate Bench reaches a conclusion
that the finding of the Single Bench is perverse, it shall not
disturb the same. Merely because another view or a better view
is possible, there should be no interference with or disturbance
of the order passed by the Single Judge, unless both sides agree
for a fairer approach on relief.
JUDGMENT
5. When the matter came up before this Court on 08.07.2013,
the Court directed the appellant to file an affidavit indicating
the actual year of closure of the industry so as to determine
the question as to from what date retrenchment compensation
should be paid to the workmen. Accordingly, affidavit dated
11.07.2013 was filed wherein it is clearly stated that the
industry became non-functional by the beginning of January, 1995
and remained defunct thereafter. In the counter affidavit filed
by the respondent-workmen also, there is nothing to establish
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that the industry was functioning thereafter.
6. Hence, the order for payment of back wages beyond
January, 1995 is vacated, and in all the other aspects, the
order passed by the Division Bench is retained. In case, the
workmen have not been paid the benefits which they are entitled
to, the same shall be paid within a period of three months from
today, failing which, the respondent-workmen shall be entitled
to interest at the rate of 10 per cent per annum.
7. The appeal is partly allowed as above. There shall be no
order as to costs.
………………………………………………J.
(KURIAN JOSEPH)
…………………………………………………………J.
(ROHINTON FALI NARIMAN)
JUDGMENT
New Delhi;
JANUARY 4, 2016.
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