Case Note & Summary
The petitioners, workmen of India United Mills, Mumbai, which was taken over by the National Textile Corporation under the Sick Textiles Undertakings (Nationalisation) Act, 1974, challenged an order of the Industrial Court dated 2.7.2002 in Complaint (ULP) No. 1096 of 2001. The petitioners claimed that their retirement age should be 60 years based on a settlement dated 21.2.1956 under Section 12(3) of the Industrial Disputes Act, 1947, and an award in Ref. (IC) No. 94 of 1961. After the take over, an agreement was entered into on 10.5.1975 between the National Union of Commercial Employees and the respondent Corporation, which provided that the terms and conditions of employment would remain the same. Immediately thereafter, the respondent gave an option to all employees to opt for fitment in the grade prescribed under the NTC service conditions. The petitioners exercised that option and accepted the NTC service conditions. The Industrial Court dismissed their complaint, holding that by opting for NTC conditions, they had waived their right to the earlier retirement age of 60 years. The High Court, in the present writ petition, examined the facts and found that the petitioners had indeed opted for the NTC service conditions, which prescribed retirement at 58 years. The Court held that the Industrial Court's order was correct and did not warrant interference. The writ petition was dismissed with no order as to costs.
Headnote
A) Industrial Law - Retirement Age - Settlement and Award - Section 12(3) of Industrial Disputes Act, 1947 - The petitioners, workmen of a nationalised mill, claimed retirement at 60 years based on a 1956 settlement and a 1961 award. However, after the mill was taken over, they were given an option to opt for NTC service conditions, which they accepted. The Industrial Court held that by opting for NTC conditions, they waived their right to the earlier retirement age. The High Court upheld this, finding no error in the Industrial Court's order. (Paras 1-6)
B) Industrial Law - Option to Opt for New Service Conditions - Waiver - The petitioners, having exercised the option to be governed by NTC service conditions, cannot later claim the benefit of the earlier retirement age of 60 years. The option was voluntary and binding. (Paras 4-6)
Issue of Consideration
Whether the petitioners are entitled to retirement at the age of 60 years despite having opted for the National Textile Corporation service conditions which prescribe retirement at 58 years.
Final Decision
The High Court dismissed the writ petition, upholding the Industrial Court's order. No order as to costs.
Law Points
- Retirement age
- settlement under Section 12(3) of Industrial Disputes Act
- 1947
- option to opt for new service conditions
- estoppel
- waiver
Case Details
2006 LawText (BOM) (04) 63
Writ Petition No. 2360 of 2002
Mr. N.M. Ganguli for the Petitioners, Mrs. Meena Doshi for respondents
National Textile Corporation
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Nature of Litigation
Writ petition challenging order of Industrial Court in a complaint under the Industrial Disputes Act regarding retirement age of workmen.
Remedy Sought
The petitioners sought to quash the Industrial Court order and to be retired at age 60 instead of 58.
Filing Reason
The petitioners were retired at age 58 by the respondent Corporation, whereas they claimed entitlement to retirement at age 60 under a settlement and award.
Previous Decisions
The Industrial Court dismissed the complaint, holding that the petitioners had opted for NTC service conditions and thus waived their right to retirement at 60.
Issues
Whether the petitioners are entitled to retirement at the age of 60 years despite having opted for the National Textile Corporation service conditions which prescribe retirement at 58 years.
Submissions/Arguments
Petitioners argued that they were entitled to retirement at 60 years based on the 1956 settlement and 1961 award, and that the option to opt for NTC conditions did not affect their right.
Respondent argued that the petitioners voluntarily opted for NTC service conditions, which included retirement at 58 years, and thus cannot claim the earlier retirement age.
Ratio Decidendi
A workman who voluntarily opts for new service conditions offered by the employer after nationalisation cannot later claim the benefit of earlier service conditions, including a higher retirement age, as the option constitutes a waiver of the earlier rights.
Judgment Excerpts
The petitioners are the workmen of the mill known as India United Mills, Mumbai which was taken over by the respondent Corporation under the Sick Textiles Undertakings (Nationalisation) Act 57 of 1974.
Under clause 3 of the said settlement it was inter alia provided that the retirement age of the workers from service will be 60 years but the company is entitled to retire an employee after he has attained the age of 55 years if by reason of age or infirmity he is unable to perform his duties properly.
Immediately thereafter the respondent Corporation gave an option to all the employees to provide for their fitment in the grade prescribed for under the NTC service conditions.
The petitioners exercised the option and accepted the NTC service conditions.
In my opinion, the Industrial Court was right in coming to the conclusion that the petitioners having opted for the NTC service conditions cannot now claim the benefit of the earlier retirement age of 60 years.
Procedural History
The petitioners filed Complaint (ULP) No. 1096 of 2001 before the Industrial Court challenging their retirement at age 58. The Industrial Court dismissed the complaint on 2.7.2002. The petitioners then filed the present writ petition in the High Court challenging that order.
Acts & Sections
- Industrial Disputes Act, 1947: 12(3)
- Sick Textiles Undertakings (Nationalisation) Act, 1974:
