{"id":28600,"date":"2010-02-04T00:00:00","date_gmt":"2010-02-03T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/wasant-sheshrao-kale-vs-national-textile-corporation-on-4-february-2010"},"modified":"2015-06-26T05:36:35","modified_gmt":"2015-06-26T00:06:35","slug":"wasant-sheshrao-kale-vs-national-textile-corporation-on-4-february-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/wasant-sheshrao-kale-vs-national-textile-corporation-on-4-february-2010","title":{"rendered":"Wasant Sheshrao Kale vs National Textile Corporation … on 4 February, 2010"},"content":{"rendered":"
Bombay High Court<\/div>\n
Wasant Sheshrao Kale vs National Textile Corporation … on 4 February, 2010<\/div>\n
Bench: S.A. Bobde, V. A. Naik<\/div>\n
                              1\n\n         IN THE HIGH COURT OF JUDICATURE AT BOMBAY:\n                     NAGPUR BENCH: NAGPUR\n\n\n\n\n                                                                  \n                WRIT PETITION NO. 194 OF 2001\n\n\n\n\n                                          \n    PETITIONER :\n           Wasant Sheshrao Kale, Model Mill Staff Quarter\n           No. A-6, Umrer Road, Ganeshpeth, Nagpur\n\n\n\n\n                                         \n           440 018\n                             VERSUS\n    RESPONDENTS:\n\n\n\n\n                                 \n    1]     National Textile Corporation [Maharashtra North]\n                      \n           Limited, a Subsidiary of the National Textile\n           Corporation - wholly owned by the Government of\n                     \n           India, 15, N.M. Morarji Marg, Mumbai 400 083 -\n           Through its Chairman - cum - Managing Director.\n    2]     The Model Mills, [A unit of National Textile\n      \n\n\n           Corporation (Maharashtra North Ltd.)], Umrer\n   \n\n\n\n           Road, Nagpur, Through its General Manager.\n    ===============================\n    Shri S.D. Thakur, advocate for petitioner\n\n\n\n\n\n    Shri R.B. Puranik, advocate for respondent no.2\n    ===============================\n    CORAM: S.A. BOBDE & SMT. VASANTI A. NAIK, JJ.\n<\/pre>\n
    DATE: 4TH FEBRUARY 2010.\n<\/p>\n
    ORAL JUDGMENT [PER : S.A. BOBDE, J]<\/p>\n
                                          ::: Downloaded on – 09\/06\/2013 15:34:46 :::<\/span>
\n                                  2<\/span><\/p>\n
         By this petition, the petitioner has challenged<\/p>\n
    the order dated 17.10.2000 of the respondent –\n<\/p>\n
    National    Textile   Corporation,         addressed          to      the<\/p>\n
    petitioner, informing him that he will retire from the<\/p>\n
    services of the National Textile Corporation on<\/p>\n
    31.1.2001 on attaining the age of 58 years.\n<\/p>\n
    2]<\/p>\n
         The petitioner is a pre-nationalization employee<\/p>\n
    who was employed with the Model Mills at Nagpur<\/p>\n
    on 29.5.1962 as a Paid Learner Clerk. Eventually he<\/p>\n
    was promoted as Senior Accountant from the year<\/p>\n
    1981.    There   is   no     dispute       that     the      age        of<\/p>\n
    superannuation in force in the Model Mills was 60<\/p>\n
    years.\n<\/p>\n
    3]   Shri   Thakur,    the       learned    counsel          for      the<\/p>\n
    petitioner submitted that the petitioner having been<\/p>\n
    employed with the Model Mills with age of 60 years<\/p>\n
    as the age of superannuation and his services being<\/p>\n
                                                ::: Downloaded on – 09\/06\/2013 15:34:46 :::<\/span>
\n                                3<\/span><\/p>\n
    governed by the Bombay Industrial Relations Act,<\/p>\n
    1946 [hereinafter referred to as BIR Act], he was<\/p>\n
    fully    protected   by   section   14      of     the       Textile<\/p>\n
    Undertakings [Nationalization] Act, 1995 [hereinafter<\/p>\n
    referred to as Nationalization Act.] which reads as<\/p>\n
    follows:\n<\/p>\n
            “14(1)     Every person who is a workman<\/p>\n
            within the meaning of the Industrial<\/p>\n
            Disputes Act, 1947, and has been
\n            immediately before the appointed day, in
\n            the employment of a textile undertaking<\/p>\n
            shall become on and from the appointed
\n            day, an employee of the National Textile
\n            Corporation, and shall hold office or service
\n            in the National Textile Corporation with the<\/p>\n
            same rights and privileges as to pension,
\n            gratuity and other matters as would have<\/p>\n
            been admissible to him if the rights in
\n            relation to such textile undertaking had not
\n            been transferred to, and vested in, the<\/p>\n
            National Textile Corporation, and shall
\n            continue to do so unless and until his
\n            employment in the National Textile
\n            Corporation is duly terminated or until his
\n            remuneration, terms and conditions of<\/p>\n
            employment are duly altered by the
\n            National Textile Corporation.<\/p><\/blockquote>\n
            (2) Every person who is not a workman
\n            within the meaning of Industrial Disputes
\n            Act, 1947, and who has been, immediately<\/p>\n
                                             ::: Downloaded on – 09\/06\/2013 15:34:46 :::<\/span>
\n                         4<\/span><\/p>\n
     before the appointed day, in the
\n     employment of a textile undertaking shall,
\n     in so far as such person is employed in<\/p>\n
     connection with the textile undertaking
\n     which has vested in the National Textile<\/p>\n
     Corporation,     become,    as   from    the
\n     appointed day, an employee of the National
\n     Textile Corporation and shall hold his office
\n     or service therein by the same tenure, at<\/p>\n
     the same remuneration and upon the same
\n     terms and conditions and with the same
\n     rights and privileges as to pension and
\n     gratuity and other matters as he would<\/p>\n
     have held the same under the textile<\/p>\n
     undertaking if it had not vested in the
\n     National Textile Corporation and shall
\n     continue to do so unless and until his<\/p>\n
     employment in the National Textile
\n     Corporation is duly terminated or until his
\n     remuneration, terms and conditions of
\n     employment are duly altered by the<\/p>\n
     National Textile Corporation<\/p>\n
     (3) Notwithstanding anything contained in
\n     the Industrial Disputes Act, 1947, or in any
\n     other law for the time being in force, the<\/p>\n
     transfer of the services of any officer or
\n     other employee of a textile undertaking to
\n     the National Textile Corporation shall not
\n     entitle such officer or other employee to
\n     any compensation under this Act or any<\/p>\n
     other law for the time being in force and no
\n     such claim shall be entertained by any
\n     court, tribunal or other authority.\n<\/p>\n
     (4)     Where, under the terms of any
\n     contract of service or otherwise, any person<\/p>\n
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\n                                5<\/span><\/p>\n
           whose services become terminated or
\n           whose services become transferred to the
\n           National Textile Corporation by reason of<\/p>\n
           provisions of this Act is entitled to any
\n           arrears of salary or wages or any payment<\/p>\n
           for any leave not availed of or other
\n           payment, not being payment by way of
\n           gratuity or pension, such person may,
\n           except to the extent such liability has been<\/p>\n
           taken over by the Central Government
\n           under section 5, enforce his claim against
\n           the owner of the textile undertaking but not
\n           against the Central Government or the<\/p>\n
           National Textile Corporation.”\n<\/p>\n
    It is further submitted by Shri Thakur that the age of<\/p>\n
    superannuation of 60 years having been protected<\/p>\n
    by section 14 of the Nationalization Act, that age<\/p>\n
    continued to be so protected until duly altered by<\/p>\n
    the   National   Textile       Corporation.    The        age        of<\/p>\n
    superannuation never having been duly altered,<\/p>\n
    petitioner could not have been superannuated at the<\/p>\n
    age of 58 years, like in the same manner as other<\/p>\n
    employees of National Textile Corporation who were<\/p>\n
    governed by its own Rules & Regulations.\n<\/p>\n
    4]    Shri Puranik, the learned counsel for the<\/p>\n
                                             ::: Downloaded on – 09\/06\/2013 15:34:46 :::<\/span>
\n                             6<\/span><\/p>\n
    respondent – National Textile Corporation submitted<\/p>\n
    that the petitioner’s conditions of service have been<\/p>\n
    duly altered within the meaning of section 14 of the<\/p>\n
    Nationalization Act (supra) by the enactment of<\/p>\n
    Rules & Regulations framed by the National Textile<\/p>\n
    Corporation in the year 1985 called “National Textile<\/p>\n
    Corporation     (Maharashtra      North)             Limited,<\/p>\n
    Recruitment & Promotion Rules 1985” [hereinafter<\/p>\n
    referred to as rules]. According to Shri Puranik these<\/p>\n
    rules have come into force on 6.9.1985 and the<\/p>\n
    petitioner’s superannuation being subsequent to<\/p>\n
    these rules, it must be taken to be governed by<\/p>\n
    these rules.   There is no dispute that these rules<\/p>\n
    provided that the age of superannuation will be 58<\/p>\n
    years vide amendment dated 23.8.1988.\n<\/p>\n
    5]   At this juncture, we may note that it is also an<\/p>\n
    undisputed position that the retirement age of<\/p>\n
    National Textile Corporation employee was at one<\/p>\n
                                        ::: Downloaded on – 09\/06\/2013 15:34:46 :::<\/span>
\n                                 7<\/span><\/p>\n
    point of time enhanced to 60 years and thereafter<\/p>\n
    was rolled back to 58 years. This enhancement and<\/p>\n
    rolling back is of no material significance to the<\/p>\n
    present case.\n<\/p>\n
    6]   So the issue that arises is, whether the<\/p>\n
    petitioner’s conditions of service including the age of<\/p>\n
    superannuation of 60 years are protected by section<\/p>\n
    14 of the Nationalization Act, or whether they have<\/p>\n
    been duly altered by the N.T.C. Rules in accordance<\/p>\n
    with that section, to 58 years.\n<\/p>\n
    7]   Shri   Thakur,   the       learned   counsel          for      the<\/p>\n
    petitioner strongly relied on Rule 2.3 of the Rules,<\/p>\n
    which reads as follows:\n<\/p>\n
        “2.3 These rules shall not apply in respect<\/p>\n
        of any posts for which any industry-wise
\n        agreements\/ awards \/ undertakings are
\n        applicable from time to time.”\n<\/p><\/blockquote>\n
    According to Shri Thakur, these rules themselves do<\/p>\n
    not apply to a post for which any industry wise<\/p>\n
                                              ::: Downloaded on – 09\/06\/2013 15:34:46 :::<\/span>
\n                              8<\/span><\/p>\n
    agreement       or   award    or   understandings               are<\/p>\n
    applicable and since there is an award which was<\/p>\n
    applicable to the services of the petitioner in the<\/p>\n
    Model Mills dated 30.10.1962, which                   provided<\/p>\n
    superannuation at the age of 60 years vide clause 8<\/p>\n
    thereof, the Rules will not apply in terms of rule 2.3<\/p>\n
    of the Rules of 1985.\n<\/p>\n
    8]    Shri Thakur, the learned advocate further relies<\/p>\n
    on clarification issued by the Board of Directors to<\/p>\n
    the    effect    that   for    Technical      Officers            or<\/p>\n
    Administrative Officers not covered by the Bombay<\/p>\n
    Industrial Relations Act, the retirement age be fixed<\/p>\n
    at 58 years. According to learned counsel since<\/p>\n
    petitioner’s services were covered by the BIR Act his<\/p>\n
    age of superannuation remained to be 60 years.\n<\/p>\n
    9]    Shri Puranik, the learned counsel for the<\/p>\n
    respondent, however, submitted that clause 2.3 and<\/p>\n
                                          ::: Downloaded on – 09\/06\/2013 15:34:46 :::<\/span>
\n                             9<\/span><\/p>\n
    the clarification do not have the effect of excluding<\/p>\n
    the petitioner’s services from the purview of the<\/p>\n
    Rules framed by the National Textile Corporation.\n<\/p>\n
    The learned counsel specifically submitted that<\/p>\n
    clause 2.2 is the only clause which provides for<\/p>\n
    exclusion of certain categories of employees from<\/p>\n
    the rules and that clause reads as follows:\n<\/p>\n
        “2.2.\n<\/p><\/blockquote>\n
                 The following categories shall also
\n        be excluded from the purview of these
\n        Rules:\n<\/p><\/blockquote>\n
        (a) Workers\/Operatives borne on the muster
\n        of the mills.\n<\/p><\/blockquote>\n
        (b) Clerical\/Semi Clerical Staff of the mills.\n<\/p><\/blockquote>\n
        (c) Watch & Ward Personnel of the Mills.\n<\/p><\/blockquote>\n
        (d) Employees of Retail Outlets\/Show-
\n        Rooms and Depots including erstwhile<\/p>\n
        employees of marketing division.\n<\/p><\/blockquote>\n
    He further submitted that clause 2.3 relied on by the<\/p>\n
    petitioner clearly states that these rules will not<\/p>\n
    apply in respect of any posts for which any industry-\n<\/p>\n
    wise agreements \/ awards \/ undertakings are<\/p>\n
    applicable from time to time. According to learned<\/p>\n
    counsel the agreement which is relied on by the<\/p>\n
                                        ::: Downloaded on – 09\/06\/2013 15:34:46 :::<\/span>
\n                                    10<\/span><\/p>\n
    petitioner between Union and the erstwhile Model<\/p>\n
    Mills    is     not   an    industry-wise    agreement               and<\/p>\n
    therefore, petitioner’s services can not be held to be<\/p>\n
    excluded from the operation of the rules.\n<\/p>\n
    10] Having considered the matter, we have no<\/p>\n
    hesitation in coming to the conclusion that the rules<\/p>\n
    do not exclude the petitioner’s services from the<\/p>\n
    purview of their operation. The rules do not apply<\/p>\n
    vide clause 2.3 only in respect of posts for which<\/p>\n
    there      is    any       industry-wise    agreement.               The<\/p>\n
    agreement between erstwhile Model Mills and the<\/p>\n
    Union can by no stretch of imagination be held to be<\/p>\n
    an      industry-wise       agreement      as    is      commonly<\/p>\n
    understood in Industrial Law. It is merely an<\/p>\n
    agreement between the Union and that particular<\/p>\n
    Industrial Establishment i.e. the Model Mills. There is<\/p>\n
    nothing in the agreement which makes it applicable<\/p>\n
    to the entire industry either at the local level, the<\/p>\n
                                                ::: Downloaded on – 09\/06\/2013 15:34:46 :::<\/span>
\n                                 11<\/span><\/p>\n
    state   level   or    the    national       level.        In      these<\/p>\n
    circumstances,       we   are    of   the     view        that        the<\/p>\n
    conditions of services have been duly altered by the<\/p>\n
    rules within the meaning of section 14. There is no<\/p>\n
    material on record to show and indeed in fairness to<\/p>\n
    the petitioner, this point was not argued, that the<\/p>\n
    rules have not been duly enacted. There is also no<\/p>\n
    substance in the submission on behalf of the<\/p>\n
    petitioner that the age of retirement was lowered to<\/p>\n
    58 only in respect of employees who are not<\/p>\n
    specifically covered at the time of their employment<\/p>\n
    by the BIR Act . The resolution of the Board in its 96th<\/p>\n
    meeting    dated      31.1.1986       which        provides            as<\/p>\n
    aforesaid, appears to have been clearly superseded<\/p>\n
    by the amendment to the Recruitment Rules by the<\/p>\n
    Board of Directors in the 130th Board meeting on<\/p>\n
    23.8.1988, where the Rule was amended as follows:\n<\/p>\n
         “Rule No.18 – Superannuation
\n            No person shall ordinarily be retained in
\n         the service of the Corporation beyond the<\/p>\n
                                                ::: Downloaded on – 09\/06\/2013 15:34:46 :::<\/span>
\n                             12<\/span><\/p>\n
         age of 58 years. However, extension in a
\n         special case may be granted in accordance
\n         with the instructions of Government of<\/p>\n
         India and for reasons to be recorded. The
\n         date of superannuation shall be the last<\/p>\n
         date of the month in which the person
\n         attained the age of 58 years.
\n             Notwithstanding anything contained in
\n         Rule, the Competent Authority, shall, if it is<\/p>\n
         of the opinion that it is in Corporation’s
\n         interest so to do, have the absolute right to
\n         retire any employee by giving him notice of
\n         one month\/ three months in writing one<\/p>\n
         month’s \/ three months’ pay and<\/p>\n
         allowances in lieu of such notice, as may be
\n         applicable to him as per terms and
\n         conditions of service.\n<\/p><\/blockquote>\n
    11] In these circumstances, we find that the<\/p>\n
    petitioner’s conditions of service stood duly altered<\/p>\n
    by virtue of the Rules framed by the N.T.C. The said<\/p>\n
    alteration is a due alteration under section 14 of the<\/p>\n
    Nationalization Act and he was made aware of the<\/p>\n
    same at the time of his promotion to the post of<\/p>\n
    Senior Accountant, in following words:\n<\/p>\n
              “1. While in the Services of this
\n              Corporation he is liable for transfer
\n              anywhere in India at the discretion of
\n              Management, and to the Holding Co.,<\/p>\n
                                        ::: Downloaded on – 09\/06\/2013 15:34:46 :::<\/span>
\n                            13<\/span><\/p>\n
             viz. N.T.C. Ltd, New Delhi or any of its
\n             Subsidiaries or Mill Units.\n<\/p><\/blockquote>\n
             2. He shall be governed by the Rules<\/p>\n
             and Regulations of the Corporation in
\n             supersession of earlier Awards \/<\/p>\n
             Agreement under BIR Act.”\n<\/p><\/blockquote>\n
    12] In the result, we see no reason to interfere with<\/p>\n
    the order directing that the petitioner shall be<\/p>\n
    superannuated at the age of 58 years by the<\/p>\n
    impugned communication dated 17.10.2000. Rule is<\/p>\n
    discharged. No order as to costs.\n<\/p>\n
                  JUDGE                      JUDGE\n      \n\n\n    smp\n   \n\n\n\n\n\n\n                                        ::: Downloaded on - 09\/06\/2013 15:34:46 :::<\/span>\n <\/pre>\n","protected":false},"excerpt":{"rendered":"
Bombay High Court Wasant Sheshrao Kale vs National Textile Corporation … on 4 February, 2010 Bench: S.A. Bobde, V. A. Naik 1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY: NAGPUR BENCH: NAGPUR WRIT PETITION NO. 194 OF 2001 PETITIONER : Wasant Sheshrao Kale, Model Mill Staff Quarter No. A-6, Umrer Road, Ganeshpeth, Nagpur 440 […]<\/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":[11,8],"tags":[],"class_list":["post-28600","post","type-post","status-publish","format-standard","hentry","category-bombay-high-court","category-high-court"],"yoast_head":"\nWasant Sheshrao Kale vs National Textile Corporation ... on 4 February, 2010 - Free Judgements of Supreme Court & 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\/wasant-sheshrao-kale-vs-national-textile-corporation-on-4-february-2010\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Wasant Sheshrao Kale vs National Textile Corporation ... on 4 February, 2010 - 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