GAMON INDIA LIMITED versus NIRANJAN DASS

GAMON INDIA LIMITED versus NIRANJAN DASS

Termination of service on account of reduction in volume of work amounts to retrenchment under Section 2(oo) of the Industrial Disputes Act, 1947, and since the pre-requisite conditions of Section 25F were not complied with, such retrenchment is void ab initio; respondent is entitled to all backwages and benefits as if continued in service till superannuation.

Parties
Appellant: Gammon India Limited; Respondent: Niranjan Dass
Jurisdiction
India
Judgment Date
05 December 1983
Procedural Posture
Civil Appeal / Final Appeal Before Supreme Court
Outcome
Appeal dismissed
Legal Topics
Retrenchment, Termination of Service, Industrial Dispute, Compensation, Superannuation
Labour and Employment Law Retrenchment Termination of Service Industrial Dispute Compensation Superannuation

Case Brief

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Parties

Gammon India Limited

Appellant

Niranjan Dass

Respondent

Procedural Posture

Civil Appeal / Final Appeal Before Supreme Court

Legal Issues

  1. 1 Whether termination of services due to recession amounts to retrenchment under Section 2(oo) of the Industrial Disputes Act, 1947
  2. 2 Whether pre-requisites under Section 25F were complied with
  3. 3 Whether the case was one of closure (Section 25FFF) or retrenchment

Ratio Decidendi

Termination of service on account of reduction in volume of work amounts to retrenchment under Section 2(oo) of the Industrial Disputes Act, 1947, and since the pre-requisite conditions of Section 25F were not complied with, such retrenchment is void ab initio; respondent is entitled to all backwages and benefits as if continued in service till superannuation.

Court Disposition

Appeal dismissed

Orders

  • Respondent entitled to all backwages including revised pay, dearness allowance, terminal benefits, leave encashment, and bonus as if in uninterrupted service.
  • Appellant to pay arrears with 12% interest from date due till realization.