Pradeep Phosphates Ltd. v. State of Orissa & Ors.

INDUSTRIAL DISPUTES ACT, 1947,

--Notice of change --Reduction in superannuation age of employees No prior notice --Violation of principles of natural justice --Where the appellant-company reduced the superannuation age of employees without giving them prior notice, the same was in violation of principles of natural justice.--Government of India (GOI) temporarily enhanced the age of retirement of all central public sector employees from 58 years to 60 years with a view to improve the financial performance of Central Public Sector Undertakings (PSUs). However, the financial performance of PSUs did not improve. Resultantly, GOI directed to all Central PSUs including the appellant-company to roll back the age of retirement from 60 years to 58 years. Trade Union referred the matter to the Industrial Tribunal (IT). IT invalidated the action of company of rolling back the age of retirement on the ground of contravention of section 9A, i.e., non-issuance of prior notice to the employees. Company challenged the said decision by way of writ petition and review petition, but the same were dismissed by the High Court. Therefore, company filed an appeal by way of special leave. Held: It was observed that age of superannuation was integral part of the service conditions of the employees. When the order of temporary enhancement of superannuation age of the employees came into force, it amounted to privilege to employees. Thus, any unilateral withdrawal of such privilege amounted to contravention of section 9A, therefore, appellant-company was bound to give prior notice. Further, reduction in superannuation age of employees without giving reasonable opportunity of hearing was in violation of the principles of natural justice. Hence, appeal was dismissed.

Industrial Disputes Act, 1947, Section 9A

REFERRED :

FAVOUR : In favour of appellant

A.Y. :

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