BANARAS ICE FACTORY LIMITED versus ITS WORKMEN

BANARAS ICE FACTORY LIMITED versus ITS WORKMEN

Termination of the services of all workmen on a real and bona fide closure of business is not 'discharge' within the meaning of section 22(b) of the Industrial Disputes (Appellate Tribunal) Act, 1950. Section 22 is applicable only to a running or existing industry, not where the industry itself ceases to exist upon...

Source-derived case information.

Parties
Appellant: Banaras Ice Factory Limited; Respondent: Its Workmen
Jurisdiction
India
Judgment Date
28 November 1956
Procedural Posture
Civil Appeal / Appeal by Special Leave From the Judgment and Order of the Labour Appellate Tribunal of India, Allahabad Dated October 30, 1952
Outcome
Appeal allowed
Legal Topics
Closure of Industry, Discharge of Workmen, Industrial Disputes (appellate Tribunal) Act, 1950, Industrial Disputes Act, 1947, Retrenchment, Compensation
Labour Law Industrial Law Closure of Industry Discharge of Workmen Industrial Disputes (appellate Tribunal) Act, 1950 Industrial Disputes Act, 1947 Retrenchment Compensation

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Parties

Banaras Ice Factory Limited

Appellant

Its Workmen

Respondent

Procedural Posture

Civil Appeal / Appeal by Special Leave From the Judgment and Order of the Labour Appellate Tribunal of India, Allahabad Dated October 30, 1952

Legal Issues

  1. 1 Whether termination of services of all workmen on a bona fide closure of business amounts to 'discharge' within the meaning of section 22(b) of the Industrial Disputes (Appellate Tribunal) Act, 1950
  2. 2 Whether the appellant contravened section 22(b) by not obtaining the permission of the Appellate Tribunal before terminating the services of the workmen due to closure

Ratio Decidendi

Termination of the services of all workmen on a real and bona fide closure of business is not 'discharge' within the meaning of section 22(b) of the Industrial Disputes (Appellate Tribunal) Act, 1950. Section 22 is applicable only to a running or existing industry, not where the industry itself ceases to exist upon closure. Since the closure was bona fide, there was no contravention of section 22 and no compensation under section 23 was payable.

Court Disposition

Appeal allowed

Orders

  • The decision of the Labour Appellate Tribunal dated October 30, 1952, is set aside.
  • There will be no order for costs.