M/S. MODI FOOD PRODUCTS CO. LIMITED versus SHRI FAQIR CHAND SHARMA & OTHERS.

M/S. MODI FOOD PRODUCTS CO. LIMITED versus SHRI FAQIR CHAND SHARMA & OTHERS.

Since the lay off was found justified, there was no breach of conditions of service under section 22(a), and the workers were only entitled to compensation for 45 days under proviso (a) to section 25-C; proviso (b) could not be applied to a single continuous lay off.

Parties
Appellant: M/s. Modi Food Products Co. Limited; Respondents: Shri Faqir Chand Sharma & Others
Jurisdiction
India
Judgment Date
08 May 1956
Procedural Posture
Civil Appeal / Appeal by Special Leave From the Judgment and Order Dated 22nd August 1955 of the Labour Appellate Tribunal of India at Lucknow
Outcome
Appeal allowed; order of Tribunal set aside; petition of the respondents dismissed.
Legal Topics
Lay Off, Compensation for Lay Off, Industrial Disputes, Conditions of Service, Interpretation of Section 25 C Industrial Disputes Act
Labour Law Lay Off Compensation for Lay Off Industrial Disputes Conditions of Service Interpretation of Section 25 C Industrial Disputes Act

Case Brief

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Parties

M/s. Modi Food Products Co. Limited

Appellant

Shri Faqir Chand Sharma & Others

Respondents

Procedural Posture

Civil Appeal / Appeal by Special Leave From the Judgment and Order Dated 22nd August 1955 of the Labour Appellate Tribunal of India at Lucknow

Legal Issues

  1. 1 Whether lay off during pendency of an appeal under the Industrial Disputes (Appellate Tribunal) Act, 1950, constituted a breach of section 22(a) justifying compensation under section 23.
  2. 2 Whether compensation under section 25-C of the Industrial Disputes Act is payable beyond 45 days for one continuous lay off or whether proviso (b) applies.

Ratio Decidendi

Since the lay off was found justified, there was no breach of conditions of service under section 22(a), and the workers were only entitled to compensation for 45 days under proviso (a) to section 25-C; proviso (b) could not be applied to a single continuous lay off.

Court Disposition

Appeal allowed; order of Tribunal set aside; petition of the respondents dismissed.

Orders

  • The appeal is allowed.
  • The order of the Tribunal is set aside.