{"id":252040,"date":"1996-07-31T00:00:00","date_gmt":"1996-07-30T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/central-bank-of-india-vs-s-satyam-ors-on-31-july-1996-2"},"modified":"2018-04-20T15:41:25","modified_gmt":"2018-04-20T10:11:25","slug":"central-bank-of-india-vs-s-satyam-ors-on-31-july-1996-2","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/central-bank-of-india-vs-s-satyam-ors-on-31-july-1996-2","title":{"rendered":"Central Bank Of India vs S.Satyam &amp; Ors on 31 July, 1996"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Central Bank Of India vs S.Satyam &amp; Ors on 31 July, 1996<\/div>\n<div class=\"doc_citations\">Equivalent citations: JT 1996 (7), 181\t  1996 SCALE  (5)567<\/div>\n<div class=\"doc_author\">Author: J S Verma<\/div>\n<div class=\"doc_bench\">Bench: Verma, Jagdish Saran (J)<\/div>\n<pre id=\"pre_1\">           PETITIONER:\nCENTRAL BANK OF INDIA\n\n\tVs.\n\nRESPONDENT:\nS.SATYAM &amp; ORS.\n\nDATE OF JUDGMENT:\t31\/07\/1996\n\nBENCH:\nVERMA, JAGDISH SARAN (J)\nBENCH:\nVERMA, JAGDISH SARAN (J)\nVENKATASWAMI K. (J)\n\nCITATION:\n JT 1996 (7)   181\t  1996 SCALE  (5)567\n\n\nACT:\n\n\n\nHEADNOTE:\n\n\n\nJUDGMENT:\n<\/pre>\n<p id=\"p_1\">\t\t THE 31ST DAY OF JULY,1996<br \/>\nPresent:\n<\/p>\n<p id=\"p_1\">\t       Hon&#8217;ble Mr.Justice J.S.Verma<br \/>\n\t       Hon&#8217;ble Mr.Justice K.Venkataswami<br \/>\nG.B.Pai, Sr.Adv. Mrs.Meera Mathur and O.C.Mathur, Advs. with<br \/>\nhim for the appellant<br \/>\nT.A.Ramachandran, Sr.Adv. Ms.Asha Nair and K.Ram Kumar,<br \/>\nAdvs, with him for the Respondents.\n<\/p>\n<p id=\"p_2\">\t\t      J U D G M E N T<br \/>\n     The following Judgment of the Court was delivered:<br \/>\nCentral Bank of India<br \/>\nV.\n<\/p>\n<p id=\"p_3\">S. Satyam &amp; Ors.\n<\/p>\n<p id=\"p_4\">\t\t      J U D G M E N T<br \/>\nJ.S. VERMA, J. :\n<\/p>\n<p id=\"p_5\">     The short\tquestion is  : whether\tthe re-employment of<br \/>\nretrenched  workmen   required\tby   <a href=\"\/doc\/1476304\/\" id=\"a_1\">Section  25-H<\/a>   of\t the<br \/>\nIndustrial Disputes  Act,  1947\t (for  short  the  Act&#8217;)  is<br \/>\nconfined only  to the category of retrenched workmen covered<br \/>\nby <a href=\"\/doc\/1056316\/\" id=\"a_1\">Section  25-F<\/a> who have been in continuous service for not<br \/>\nless than  one year?  The controversy  arises in view of the<br \/>\nwide meaning  of  &#8220;retrenchment&#8221;  given\t in  its  definition<br \/>\ncontained in  <a href=\"\/doc\/1418464\/\" id=\"a_2\">Section 2(oo)<\/a> of the Act to cover all kinds of<br \/>\nterminations for any reason whatsoever. This wide meaning is<br \/>\nsettled by  the\t decision  of  this  Court  in\tPunjab\tLand<br \/>\nDevelopment and\t Reclamation  Corporation  Ltd.,  Chandigarh<br \/>\netc.etc. Vs.  Presiding Officer,  Labour Court, Chandigarh &amp;<br \/>\nOrs. etc.etc.,\t1990 (3) SCC 682. On behalf of the appellant<br \/>\n(employer) it  is contended  that the  meaning given  in the<br \/>\ndefinition of  retrenchment contained in <a href=\"\/doc\/1418464\/\" id=\"a_3\">Section 2(oo)<\/a> is to<br \/>\nbe read\t subject to  the context  and the context in <a href=\"\/doc\/1476304\/\" id=\"a_4\">Section<br \/>\n25-H<\/a> indicates\tthat the  word &#8220;retrenched&#8221;  in <a href=\"\/doc\/1476304\/\" id=\"a_5\">Section 25-H<\/a><br \/>\nhas the\t same meaning  as it  has in  <a href=\"\/doc\/1056316\/\" id=\"a_6\">Section 25-F<\/a> and <a href=\"\/doc\/41851\/\" id=\"a_7\">25-G<\/a>,<br \/>\nreading <a href=\"\/doc\/1056316\/\" id=\"a_8\">Section\t 25-F<\/a> along with <a href=\"\/doc\/288001\/\" id=\"a_9\">Section 25-B<\/a> since they all<br \/>\nform a part of the same scheme in Chapter V A of the Act.\n<\/p>\n<p id=\"p_6\">     It was  argued by\tShri Pai, learned senior counsel for<br \/>\nthe appellant that the object of providing for re-employment<br \/>\nof retrenched workmen by enacting <a href=\"\/doc\/1476304\/\" id=\"a_10\">Section 25-H<\/a> was merely to<br \/>\nprovide for  the category  of retrenched  workmen covered by<br \/>\n<a href=\"\/doc\/1056316\/\" id=\"a_11\">Section 25-F<\/a> who had been in continuous service for not Less<br \/>\nthan one  year and  not those  who had\tserved for  a lesser<br \/>\nperiod and  to whom  <a href=\"\/doc\/1056316\/\" id=\"a_12\">Section 25-F<\/a> did not apply. The present<br \/>\ncase relates  to workmen  who admittedly  do not fall in the<br \/>\ncategory of retrenched workmen covered by <a href=\"\/doc\/1056316\/\" id=\"a_13\">Section 25-F<\/a> since<br \/>\nthey had  all worked  for a  much lesser  period.  For\tthis<br \/>\nreason, Shri  Pai contended  that this factor alone excludes<br \/>\nthe  applicability   of\t <a href=\"\/doc\/1476304\/\" id=\"a_14\">Section  25-H<\/a>\tto  the\t respondents<br \/>\n(workmen) in  the present  case. The grant of relief to them<br \/>\nby the\tHigh Court  is challenged  primarily on this ground.<br \/>\nAlternatively, Shri  Pai contended that the respondents were<br \/>\nemployed only  for short  periods between  1974 to  1976 and<br \/>\ntherefore, grant  of relief  to them  in the  Writ  Petition<br \/>\nfiled long  thereafter in  1982 is unjustified on the ground<br \/>\nof laches as well as prejudice to the other workmen employed<br \/>\nduring the  intervening period\twho are\t not impleaded. Shri<br \/>\nPai also  referred to  the Rules 77 and 78 of the Industrial<br \/>\nDisputes (Central)  Rules, 1957\t (for short  the Rules&#8217;)  in<br \/>\nsupport of his submission.\n<\/p>\n<p id=\"p_7\">     In reply  Shri Ramachandran,  learned counsel  for\t the<br \/>\nRespondents, contended\tthat the  wide meaning\tof the\tword<br \/>\nretrenchment&#8217; given  in the  definition contained in <a href=\"\/doc\/1418464\/\" id=\"a_15\">Section<br \/>\n2(oo)<\/a> cannot be curtailed by the effect of <a href=\"\/doc\/1056316\/\" id=\"a_16\">Section 25-F<\/a> read<br \/>\nwith <a href=\"\/doc\/288001\/\" id=\"a_17\">Section  25-B<\/a> since  <a href=\"\/doc\/1056316\/\" id=\"a_18\">Section 25-F<\/a> merely prescribes the<br \/>\nconditions precedent for retrenchment of the workmen covered<br \/>\nthereby and  not all  the retrenched workmen. He argued that<br \/>\nthere are  no words of limitation in <a href=\"\/doc\/1476304\/\" id=\"a_19\">Section 25-H<\/a> to confine<br \/>\nits application\t only to  the retrenched  workmen covered by<br \/>\n<a href=\"\/doc\/1056316\/\" id=\"a_20\">Section 25-F<\/a>.  His reply  to the  alternative submission was<br \/>\nthat it\t is not\t a fit\tcase to\t interfere with\t the limited<br \/>\nrelief granted by the High Court.\n<\/p>\n<p id=\"p_8\">     There is  no dispute  on facts  and  the  question\t for<br \/>\ndecision is only one of construction, mainly of <a href=\"\/doc\/1476304\/\" id=\"a_21\">Section 25-H<\/a><br \/>\nof the\tAct. the  controversy relating\tto the\tmeaning\t and<br \/>\nscope of  retrenchment&#8217; defined\t in <a href=\"\/doc\/1418464\/\" id=\"a_22\">Section 2(oo)<\/a> is settled<br \/>\nby the\tdecision of  the Constitution  Bench in\t Punjab Land<br \/>\nDevelopment and Reclamation Corporation Ltd. (supra). It was<br \/>\nheld :\n<\/p>\n<p id=\"p_9\">\t  &#8220;While      naturally\t     and<br \/>\n     ordinarily it  meant  discharge  of<br \/>\n     surplus labour, the defined meaning<br \/>\n     was termination  of  service  of  a<br \/>\n     workman for  any reason  whatsoever<br \/>\n     except  those     excluded\t in  the<br \/>\n     definition itself.&#8221;\n<\/p>\n<p id=\"p_10\">The kind  of termination  of service  of a  workman excluded<br \/>\nfrom the  definition is\t specified in Clauses (a) to (c) and<br \/>\nit is  not disputed  before us that none of these exceptions<br \/>\napplies in the present case. Shri Pai argued the case on the<br \/>\nbasis that  the termination  of\t service  of  these  workmen<br \/>\namounted to    retrenchment&#8217; as defined in <a href=\"\/doc\/1418464\/\" id=\"a_23\">Section 2(oo)<\/a>. It<br \/>\nis,   therefore,   clear   that\t  if   the   definition\t  of<br \/>\nretrenchment&#8217; given  in <a href=\"\/doc\/1418464\/\" id=\"a_24\">Section\t 2(oo)<\/a> is  to be applied for<br \/>\nthe construction of <a href=\"\/doc\/1476304\/\" id=\"a_25\">Section 25-H<\/a> then the requirement of re-<br \/>\nemployment of  retrenched workmen thereby cannot be confined<br \/>\nonly to\t the retrenched\t workmen of  the category covered by<br \/>\n<a href=\"\/doc\/1056316\/\" id=\"a_26\">Section\t 25-F<\/a>,\t under\twhich\tcategory  the\trespondents,<br \/>\nadmittedly, do\tnot fall.  The question\t is whether there is<br \/>\nany reason to curtail this definition of retrenchment&#8217; while<br \/>\nconstruing the meaning of the expression retrenched workmen&#8217;<br \/>\nin <a href=\"\/doc\/1476304\/\" id=\"a_27\">Section  25-H<\/a>. In  other words,  is the provision for re-<br \/>\nemployment  of\tretrenched  workmen  confined  only  to\t the<br \/>\ncategory covered  by <a href=\"\/doc\/1056316\/\" id=\"a_28\">Section  25-F<\/a> and cannot be extended to<br \/>\nall  retrenched\t workmen  including  those  not\t covered  by<br \/>\n<a href=\"\/doc\/1056316\/\" id=\"a_29\">Section 25-F<\/a>,  like the respondents? It is for this purpose,<br \/>\nthe appellants\trelied on  Rules 77  and 78 framed under the<br \/>\nAct, to suggest that the wider meaning could not be intended<br \/>\nin <a href=\"\/doc\/1476304\/\" id=\"a_30\">Section 25-H<\/a>.\n<\/p>\n<p id=\"p_11\">     The relevant provisions are as under :<br \/>\n\t     &#8220;CHAPTER V &#8211; A<br \/>\n     25-B.  Definition\t of   continuous<br \/>\n     service For  the purposes\tof  this<br \/>\n     Chapter, &#8211;\n<\/p>\n<p id=\"p_12\">     (1) a  workman shall  be said to be<br \/>\n     in continuous  service for a period<br \/>\n     if\t he  is,  for  that  period,  in<br \/>\n     uninterrupted  service,   including<br \/>\n     service which may be interrupted on<br \/>\n     account of\t sickness or  authorised<br \/>\n     leave or  an accident  or a  strike<br \/>\n     which is not illegal, or a lock-out<br \/>\n     or a cessation of work which is not<br \/>\n     due to any fault on the part of the<br \/>\n     workman;\n<\/p>\n<p id=\"p_13\">     (2)  where\t a  workman  is\t not  in<br \/>\n     continuous\t  service   within   the<br \/>\n     meaning of\t clause (1) for a period<br \/>\n     of one year or six months, he shall<br \/>\n     be\t deemed\t  to  be  in  continuous<br \/>\n     service under an employer &#8211;\n<\/p>\n<p id=\"p_14\">\t  (a) for  a period of one year,<br \/>\n     if the  workman, during a period of<br \/>\n     twelve  calendar  months  preceding<br \/>\n     the date  with reference  to  which<br \/>\n     calculation  is  to  be  made,  has<br \/>\n     actually worked  under the employer<br \/>\n     for not less than &#8211;\n<\/p>\n<p id=\"p_15\">\t  (i)  one  hundred  and  ninety<br \/>\n     days  in  the  case  of  a\t workman<br \/>\n     employed below  ground in\ta  mine;\n<\/p>\n<p id=\"p_16\">     and\n<\/p>\n<p id=\"p_17\">\t  (ii)\ttwo  hundred  and  forty<br \/>\n     days, in any other case;\n<\/p>\n<p id=\"p_18\">     XXX\t     XXX\t     XXX<br \/>\n     25-F.   Conditions\t  precedent   to<br \/>\n     retrenchment  of\tworkmen\t  &#8211;   No<br \/>\n     workman employed  in  any\tindustry<br \/>\n     who has  been in continuous service<br \/>\n     for not less than one year under an<br \/>\n     employer  shall  be  retrenched  by<br \/>\n     that employer until &#8211; .\n<\/p>\n<p id=\"p_19\">\t  (a) the workman has been given<br \/>\n     one  month&#8217;s   notice  in\t writing<br \/>\n     indicating\t   the\t  reasons    for<br \/>\n     retrenchment  and\t the  period  of<br \/>\n     notice has\t expired, or the workman<br \/>\n     has  been\tpaid  in  lieu\tof  such<br \/>\n     notice, wages for the period of the<br \/>\n     notice;\n<\/p>\n<p id=\"p_20\">\t  (b) the workman has been paid,<br \/>\n     at\t the   time   of   retrenchment,<br \/>\n     compensation   which    shall    be<br \/>\n     equivalent to  fifteen\t   days&#8217;<br \/>\n     average  pay  for\tevery  completed<br \/>\n     year of  continuous service  or any<br \/>\n     part  thereof   in\t excess\t of  six<br \/>\n     months; and\n<\/p>\n<p id=\"p_21\">\t  (c) notice  in the  prescribed<br \/>\n     manner is served on the appropriate<br \/>\n     Government or such authority as may<br \/>\n     be\t specified  by\tthe  appropriate<br \/>\n     Government by  notification in  the<br \/>\n     Official Gazette.\n<\/p>\n<p id=\"p_22\">     xxx\t    xxx\t\t     xxx<br \/>\n     25-G. Procedure  for retrenchment &#8211;<br \/>\n     Where any\tworkman in an industrial<br \/>\n     establishment, who\t is a citizen of<br \/>\n     India, is\tto be  retrenched and he<br \/>\n     belongs to a particular category of<br \/>\n     workmen in\t that establishment,  in<br \/>\n     the  absence   of\t any   agreement<br \/>\n     between  the   employer   and   the<br \/>\n     workman   in   this   behalf,   the<br \/>\n     employer shall  ordinarily retrench<br \/>\n     the workman who was the last person<br \/>\n     to be  employed in\t that  category,<br \/>\n     unless for\t reasons to  be recorded<br \/>\n     the employer  retrenches any  other<br \/>\n     workman.\n<\/p>\n<p id=\"p_23\">     25-H. Re-employment  of  retrenched<br \/>\n     workmen &#8211;\tWhere  any  workmen  are<br \/>\n     retrenched,   and\t  the\temployer<br \/>\n     proposes to  take into  his  employ<br \/>\n     any  persons,  he\tshall,\tin  such<br \/>\n     manner as\tmay be\tprescribed, give<br \/>\n     an opportunity  to\t the  retrenched<br \/>\n     workmen who  are citizens\tof India<br \/>\n     to\t  offer\t  themselves   for   re-\n<\/p>\n<p id=\"p_24\">     employment,  and\tsuch  retrenched<br \/>\n     workmen who  offer\t themselves  for<br \/>\n     re-employment shall have preference<br \/>\n     over other persons.&#8221;\n<\/p>\n<p id=\"p_25\">     &#8220;INDUSTRIAL   DISPUTES    (CENTRAL)<br \/>\n     RULES, 1957\n<\/p>\n<p id=\"p_26\">     77. Maintenance  of seniority  list<br \/>\n     of workmen\t &#8211;  The\t employer  shall<br \/>\n     prepare a\tlist of\t all workmen  in<br \/>\n     the particular  category from which<br \/>\n     retrenchment    is\t    contemplated<br \/>\n     arranged according to the seniority<br \/>\n     of their  service in  that category<br \/>\n     and cause\ta  copy\t thereof  to  be<br \/>\n     pasted  on\t a  notice  board  in  a<br \/>\n     conspicuous place\tin the\tpremises<br \/>\n     of the  industrial establishment at<br \/>\n     least seven  days before the actual<br \/>\n     date of retrenchment.\n<\/p>\n<p id=\"p_27\">     78.  Re-employment\t  of  retrenched<br \/>\n     workmen-(1)  At   least  ten   days<br \/>\n     before the\t date on which vacancies<br \/>\n     are  to  be  filled,  the\temployer<br \/>\n     shall arrange  for the display on a<br \/>\n     notice board in a conspicuous place<br \/>\n     in the  premises of  the industrial<br \/>\n     establishment  details   of   those<br \/>\n     vacancies\tand   shall  also   give<br \/>\n     intimation of  those  vacancies  by<br \/>\n     registered post to every one of all<br \/>\n     the retrenched  workmen eligible to<br \/>\n     be\t considered   therefor,\t to  the<br \/>\n     address given by him at the time of<br \/>\n     retrenchment   or\t at   any   time<br \/>\n     thereafter:<\/p>\n<p id=\"p_28\">\t  Provided that where the number<br \/>\n     of such  vacancies is less than the<br \/>\n     number of\tretrenched  workmen,  it<br \/>\n     shall be  sufficient if  intimation<br \/>\n     is\t  given\t   by\t the\temployer<br \/>\n     individually  to\tthe   seniormost<br \/>\n     retrenched\t workmen   in  the  list<br \/>\n     referred to  in Rule  77 the number<br \/>\n     of such  seniormost  workmen  being<br \/>\n     double   the    number   of    such<br \/>\n     vacancies:\n<\/p>\n<p id=\"p_29\">\t  Provided  further  that  where<br \/>\n     the vacancy  is of\t a  duration  of<br \/>\n     less than\tone month there shall be<br \/>\n     no obligation  on the  employer  to<br \/>\n     send intimation  of such vacancy to<br \/>\n     individual retrenched workmen:\n<\/p>\n<p id=\"p_30\">\t  Provided  also   that\t  if   a<br \/>\n     retrenched\t    workman,\t without<br \/>\n     sufficient\t cause\tbeing  shown  in<br \/>\n     writing to\t the employer,\tdoes not<br \/>\n     offer himself  for re-employment on<br \/>\n     the date  or dates specified in the<br \/>\n     intimation\t sent\tto  him\t by  the<br \/>\n     employer under  this sub-rule,  the<br \/>\n     employer may  not intimate\t to  him<br \/>\n     the vacancies  that may  filled  on<br \/>\n     any subsequent occasion.\n<\/p>\n<p id=\"p_31\">     (2)  Immediately\tafter  complying<br \/>\n     with  the\tprovisions  of\tsub-rule<br \/>\n     (1),  the\t employer,  shall   also<br \/>\n     inform the\t trade\tunion  connected<br \/>\n     with the  industrial establishment,<br \/>\n     of the  number of\tvacancies to  be<br \/>\n     filled and\t names of the retrenched<br \/>\n     workmen to whom intimation has been<br \/>\n     sent under that sub-rule:\n<\/p>\n<p id=\"p_32\">\t  Provided that\t the  provisions<br \/>\n     of\t this\tsub-rule  need\t not  be<br \/>\n     complied with  by the  employer  in<br \/>\n     any case  where intimation\t is sent<br \/>\n     to\t every\t one  of   the\t workmen<br \/>\n     mentioned\tin   the  list\tprepared<br \/>\n     under Rule 77&#8243;.\n<\/p>\n<p id=\"p_33\">     On\t the   rival  contentions,  the\t real  question\t for<br \/>\ndecision is  : whether\tthe provision  for re-employment  of<br \/>\nretrenched workmen  made in  <a href=\"\/doc\/1476304\/\" id=\"a_31\">Section 25-H<\/a> should be confined<br \/>\nonly to\t the  category\tof  retrenched\tworkmen\t covered  by<br \/>\n<a href=\"\/doc\/1056316\/\" id=\"a_32\">Section 25-F<\/a> by restricting the meaning of `retrenchment&#8217; in<br \/>\n<a href=\"\/doc\/1418464\/\" id=\"a_33\">Section 2(oo)<\/a>  for  this  purpose?  Chapter  V-A  containing<br \/>\n<a href=\"\/doc\/234923\/\" id=\"a_34\">Sections 25-A<\/a>  to <a href=\"\/doc\/1865755\/\" id=\"a_35\">25-J<\/a>\t was  inserted by  Act No.43 of 1953<br \/>\nwith effect  from 24.10.1953.  This Chapter relates to `Lay-<br \/>\noff  and   Retrenchment&#8217;.  <a href=\"\/doc\/1056316\/\" id=\"a_36\">Section   25-F<\/a>   prescribes\t the<br \/>\nconditions precedent  to retrenchment of workmen. It applies<br \/>\nonly to\t the retrenchment  of  a  workman  employed  in\t any<br \/>\nindustry who  has been\tin continuous  service for  not less<br \/>\nthan one  year and  not to  any work  mall who\thas been  in<br \/>\ncontinuous service  for less  than one\tyear.  <a href=\"\/doc\/288001\/\" id=\"a_37\">Section\t25-B<\/a><br \/>\ndefines continuous  service for the purposes of this Chapter<br \/>\nand it\tsays, inter  alia, that a workman shall be deemed-to<br \/>\nbe in  continuous service  under an employer for a period of<br \/>\none year, if the workman, during a period of twelve calendar<br \/>\nmonths\tpreceding   the\t date\twith  reference\t  to   which<br \/>\ncalculation is\tto be  made, has  actually worked  under the<br \/>\nemployer for  not less\tthan 240  days. In  other words, tho<br \/>\nexpression &#8216;continuous\tservice for  not less than one year&#8217;<br \/>\nin <a href=\"\/doc\/1056316\/\" id=\"a_38\">section  25-F<\/a> has to be so construed by virtue of <a href=\"\/doc\/288001\/\" id=\"a_39\">Section<br \/>\n25-B<\/a>. the  benefit of  applicability of\t <a href=\"\/doc\/1056316\/\" id=\"a_40\">Section  25-F<\/a>\tcan,<br \/>\ntherefore, be  claimed by  a workman  only if he has been in<br \/>\ncontinuous service  for not less than one year as defined in<br \/>\n<a href=\"\/doc\/288001\/\" id=\"a_41\">Section 25-B<\/a>.  Any other  retrenched workman  who  does\t not<br \/>\nsatisfy this  requirement of continuous service for not less<br \/>\nthan one year cannot avail the benefit of <a href=\"\/doc\/1056316\/\" id=\"a_42\">Section 25-F<\/a> which<br \/>\nprescribes  the\t conditions  precedent\tto  retrenchment  of<br \/>\nworkman of this category. Section to retrenchment of workman<br \/>\nof this\t category. <a href=\"\/doc\/41851\/\" id=\"a_43\">Section  25-G<\/a> prescribe the procedure for<br \/>\nretrenchment and  ordinarily applies the principles of &#8216;last<br \/>\ncome first go&#8217;.\n<\/p>\n<p id=\"p_34\">     <a href=\"\/doc\/1476304\/\" id=\"a_44\">Section  25-H<\/a>   then  provides   for  re-employment  of<br \/>\nretrenched workmen.  It says that when the employer proposes<br \/>\nto take\t into his  employ and  persons, he  shall, in such a<br \/>\nmanner as  may be  prescribed, give  an opportunity  to\t the<br \/>\nretrenched workmen  who\t are  citizens\tof  India  to  offer<br \/>\nthemselves for\tre-employment, and  such retrenched  workmen<br \/>\nwho offer themselves for re-employment shall have preference<br \/>\nover other  persons. Rules  77\tand  78\t of  the  Industrial<br \/>\nDisputes (Central)  Rules, 1957\t prescribe the\tmode of\t re-<br \/>\nemployment. Rule  77 requires  maintenance of seniority list<br \/>\nof  all\t  workmen  in\ta  particular  category\t from  which<br \/>\nretrenchment is contemplated arranged according to seniority<br \/>\nof their  service in  that category  and publication of that<br \/>\nlist.  Rule  78\t prescribe  and\t mode  of  re-employment  of<br \/>\nretrenched workmen.  The requirement in Rule 78 is of notice<br \/>\nin the\tmanner prescribed to every one of all the retrenched<br \/>\nworkmen eligible  to be\t considered for\t re-employment. Shri<br \/>\nPai contends  that Rules 77 and 78 are unworkable unless the<br \/>\napplication of\t<a href=\"\/doc\/1476304\/\" id=\"a_45\">Section 25-H<\/a>  is confined to the category of<br \/>\nretrenched workmen  to whom  <a href=\"\/doc\/1056316\/\" id=\"a_46\">Section 25-F<\/a>  applies.  We\t are<br \/>\nunable to accept this contention.\n<\/p>\n<p id=\"p_35\">     Rule 77  requires the  employer to maintain a seniority<br \/>\nlist of\t workmen in  that  particular  category\t from  which<br \/>\nretrenchment  is  contemplated\tarranged  according  to\t the<br \/>\nseniority of  their service. The category of workmen to whom<br \/>\n<a href=\"\/doc\/1056316\/\" id=\"a_47\">Section 25-F<\/a> applies is distinct from those to whom it is in<br \/>\napplicable. There  is no practical difficulty in maintenance<br \/>\nof  seniority\tlist  of   workmen  with  reference  to\t the<br \/>\nparticular  category   to  which   they\t belong.   Rule\t 77,<br \/>\ntherefore, does\t not present  any difficulty. Rule 78 speaks<br \/>\nof retrenched  workmen eligible to be considered for filling<br \/>\nthe vacancies  and here\t also the  distinction based on. The<br \/>\ncategory of  workmen-can be maintained because those falling<br \/>\nin the\tcategory of  <a href=\"\/doc\/1056316\/\" id=\"a_48\">Section 25-F<\/a>  are entitled to be placed<br \/>\nhigher than those who do not fall in that category. It is no<br \/>\ndoubt true  that persons  who have  been retrenched  after a<br \/>\nlonger period  of service  which places\t them higher  in the<br \/>\nseniority  list\t are  entitled\tto  be\tconsidered  for\t re-<br \/>\nemployment earlier  than those\tplaced lower  because  of  a<br \/>\nlesser period  of service.  In this manner a workman falling<br \/>\nin the\tlower category\tbecause\t of  not  being\t covered  by<br \/>\n<a href=\"\/doc\/1056316\/\" id=\"a_49\">Section 25-F<\/a>  can claim consideration for re-employment only<br \/>\nif an  eligible workman\t above him  in the seniority list is<br \/>\nnot available.\tApplication of\t<a href=\"\/doc\/1476304\/\" id=\"a_50\">Section 25-H<\/a>  to the.  Other<br \/>\nretrenched workmen not cove-red by <a href=\"\/doc\/500379\/\" id=\"a_51\">Section 25-f<\/a> does not, in<br \/>\nAny manner,  prejudice those covered by <a href=\"\/doc\/1056316\/\" id=\"a_52\">Section 25-F<\/a> because<br \/>\nthe question  of consideration of any retrenched workman not<br \/>\ncovered by  <a href=\"\/doc\/1056316\/\" id=\"a_53\">Section 25-F<\/a>  would arise  only, if and when, no<br \/>\nretrenched workman  covered by <a href=\"\/doc\/1056316\/\" id=\"a_54\">Section 25-F<\/a> is available for<br \/>\nre-employment. There  is, thus,\t no reason  to\tcurtail\t the<br \/>\nordinary meaning  of &#8216;retrenched  workmen&#8217; in  <a href=\"\/doc\/1476304\/\" id=\"a_55\">Section\t25-H<\/a><br \/>\nbecause of  Rules 77 and 78, even assuming the rules framed-<br \/>\nunder the Act could have that effect.\n<\/p>\n<p id=\"p_36\">     The plain\tlanguage of  <a href=\"\/doc\/1476304\/\" id=\"a_56\">Section 25-H<\/a> speaks only of re-<br \/>\nemployment of  &#8216;retrenched workmen&#8217;. The ordinary meaning of<br \/>\nthe expression\t&#8216;retrenched workmen  must relate to the wide<br \/>\nmeaning of  &#8216;retrenchment&#8217; given  in <a href=\"\/doc\/1418464\/\" id=\"a_57\">Section  2(oo)<\/a>. <a href=\"\/doc\/1056316\/\" id=\"a_58\">Section<br \/>\n25-F<\/a> also  uses the  word &#8216;retrenchment&#8217; but qualifies it by<br \/>\nuse  of\t  the  further\twords  &#8216;workman&#8217;  who  has  been  in<br \/>\ncontinuous service  for\t not  less  than  one  year&#8217;.  Thus,<br \/>\n<a href=\"\/doc\/1056316\/\" id=\"a_59\">Section 25-F<\/a>  does not\trestrict the meaning of retrenchment<br \/>\nbut qualifies  the category  of retrenched  workmen  covered<br \/>\ntherein by use of the further words workman. Who has been in<br \/>\ncontinuous service  for not  less than one year. It is clear<br \/>\nthat <a href=\"\/doc\/1056316\/\" id=\"a_60\">Section  25-F<\/a> applies  to the retread a workman who has<br \/>\nbeen in continuous service for not less: one year and not to<br \/>\nany workman who has bean in continuous service for less than<br \/>\none year; and it does not restrict or curtail the meaning of<br \/>\nretrenchment merely  because the  provision therein  is made<br \/>\nonly for  the retrenchment  of a  workman who  has  been  in<br \/>\ncontinuous service  for not  less the  one year. Chapter V-A<br \/>\ndeals with  all retrenchments while <a href=\"\/doc\/1056316\/\" id=\"a_61\">Section 25-F<\/a> is confined<br \/>\nonly to\t the mode  of retrenchment  of workmen in continuous<br \/>\nservice for  not less than one year. <a href=\"\/doc\/41851\/\" id=\"a_62\">Section 25-G<\/a> prescribes<br \/>\nthe principle  for retrenchment\t and applies  ordinarily the<br \/>\nprinciple of &#8216;last come first so&#8217; which is not confined only<br \/>\nto workmen  who have been in continuous service for not less<br \/>\nthan one year, covered by <a href=\"\/doc\/1056316\/\" id=\"a_63\">Section 25-F<\/a>.\n<\/p>\n<p id=\"p_37\">     The next  provision is <a href=\"\/doc\/1476304\/\" id=\"a_64\">Section 25-H<\/a> which is couched in<br \/>\nwide  language\t and  is   capable  of\tapplication  to\t all<br \/>\nretrenched workmen  not mere;\tcovered\t by <a href=\"\/doc\/1056316\/\" id=\"a_65\">Section 25-F<\/a>. It<br \/>\ndoes not  requirement of  the ordinary\tmeaning of  the word<br \/>\n&#8216;retrenchment&#8217; used therein. The Provision for re-employment<br \/>\nof  retrenched\t workmen  merely   gives  performance  to  a<br \/>\nretrenched workmen in the matter of re-employment over other<br \/>\npersons. It  is enacted\t for the  benefit of  the retrenched<br \/>\nworkmen and  there in  no reason  to restrict  its  ordinary<br \/>\nmeaning which  promotes the  object of the enactment without<br \/>\ncausing any prejudice to a better placed retrenched workman.\n<\/p>\n<p id=\"p_38\">     Chapter V-A  providing for\t retrenchment is not enacted<br \/>\nonly for  the benefit  of the  workmen to  whom <a href=\"\/doc\/1056316\/\" id=\"a_66\">Section 25-F<\/a><br \/>\napplies but  for all  cases of\tretrenchment and, therefore,<br \/>\nthere is  no reason  to restrict application of <a href=\"\/doc\/1476304\/\" id=\"a_67\">Section 25-H<\/a><br \/>\ntherein only  to one category of retrenched workmen. We are,<br \/>\ntherefore, unable  to accept the contention of Shri Pai that<br \/>\na  restricted\tmeaning\t should\t  be  given   to  the\tword<br \/>\nretrenchment&#8217;  in   <a href=\"\/doc\/1476304\/\" id=\"a_68\">Section  25-H<\/a>.   This   contention\t is,<br \/>\ntherefore, rejected.\n<\/p>\n<p id=\"p_39\">     The other\tsubmission  of\tShri  Pai,  however,  merits<br \/>\nacceptance. All\t the  retrenched  workmen  involved  in\t the<br \/>\npresent case  were employed  for short periods. Between 1974<br \/>\nto 1976.  It was only in 1982 that a writ petition was filed<br \/>\nby them\t to claim  this benefits. The other persons employed<br \/>\nin the\tindustry during\t the intervening  period of  several<br \/>\nyears have  not been  impleaded. Third\tparty interests have<br \/>\narisen during  the interregnum. These third parties are also<br \/>\nworkmen employed  in the  industry  during  the\t intervening<br \/>\nperiod of  several  years.  Grant  of  relief  to  the\twrit<br \/>\npetitioners (respondents  herein) may result in displacement<br \/>\nof those  other workmen who have not been impleaded in these<br \/>\nproceedings, if\t the respondents  have\tany  claim  for\t re-<br \/>\nemployment. The laches leading to the long delay after which<br \/>\nthe writ  petition  was\t filed\tin  1982  is  sufficient  to<br \/>\ndisentitle them\t to the\t grant of  any relief  in  the\twrit<br \/>\npetition. Moreover  there is  not even\ta suggestion made or<br \/>\nany material  produced to  show that  on the construction we<br \/>\nhave made of <a href=\"\/doc\/1476304\/\" id=\"a_69\">Section 25-H<\/a>, the respondents would be entitled<br \/>\nto get\tany relief in the highly belated writ petition after<br \/>\nthe lapse  of several  years by\t way of\t preference over any<br \/>\nperson\temployed  during  the  intervening  period.  In\t our<br \/>\nopinion, this  alone was  sufficient for  the High  Court to<br \/>\ndecline any  relief to them. It was urged by learned-counsel<br \/>\nfor the\t respondents that  only a  limited relief  has\tbeen<br \/>\ngranted to  the respondents  which need not be disturbed. In<br \/>\nour opinion,  the lapse\t of a  long Period  of several years<br \/>\nprior to  the filing  of the  writ petition is sufficient to<br \/>\ndecline any relief to the respondents.\n<\/p>\n<p id=\"p_40\">     We allow  the civil  appeal for  the reason given by us<br \/>\nand  set   aside  the  High  Court  judgments  resulting  in<br \/>\ndismissal of  the writ\tpetition filed\tin the High Court by<br \/>\nthe respondents.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Central Bank Of India vs S.Satyam &amp; Ors on 31 July, 1996 Equivalent citations: JT 1996 (7), 181 1996 SCALE (5)567 Author: J S Verma Bench: Verma, Jagdish Saran (J) PETITIONER: CENTRAL BANK OF INDIA Vs. RESPONDENT: S.SATYAM &amp; ORS. DATE OF JUDGMENT: 31\/07\/1996 BENCH: VERMA, JAGDISH SARAN (J) BENCH: VERMA, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-252040","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Central Bank Of India vs S.Satyam &amp; Ors on 31 July, 1996 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/central-bank-of-india-vs-s-satyam-ors-on-31-july-1996-2\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Central Bank Of India vs S.Satyam &amp; 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