For all workmen who have joined on and after holidays under the Madras Industrial Establishments National and Festival holidays Act, 1958 shall be given.
In imposing this obligation on the employers, the Act intended that the terms and companyditions of industrial employment should be well defined and should be known to the employees before they accepted the employment.
The change proposed to be made by the appellant in the two Standing Orders in question was resisted by the respondents Union.
It appears that these Rules were introduced by the appellant on the 1st October, 1960, and were embodied in the companytracts of service of new entrants who joined the appellants employment as from that date.
1 of 1962.
In fact, they were agreed to by such new entrants.
Amongst these were included terms about leave and holidays.
The Certifying Officer upheld the pleas raised by the respondents and he accordingly directed that the proposed amendments should be negatived.
In or about 1940, when the number of the appellants company sumers was about 3,000, and that of its workmen about 45, the appellant framed certain terms and companyditions of its workmens employment.
It was urged by the respondents that the proposed change was unfair and unreasonable, and it was also argued that it would introduce discrimination between one set of employees and another working under the same employer, and that would naturally cause industrial unrest and disharmony.
Appeal by Special Leave from the order dated the 9th April, 1963 of the Labour Court, Coimbatore, in C.S.O. Appeal No.
Later, when the Industrial Employment Standing Orders Act, 1946 No.
The appellant believed that the urgent need for increased production and for increased supply of electrical energy companyld be met if the existing rules embodied in Standing Orders 5 b and 10 a were suitably modified and so, the appellant wanted to make the change in the said two Standing Orders on the lines indicated by it in its application to the Certifying Officer.
Both the parties urged similar companytentions before the appellate authority and the said authority agreed with the view taken by the Certifying Officer and dismissed the appeal preferred by the appellant.
20 of 1946 hereinafter called the Act came into force, the provisions as to leave and holidays which had been introduced by the appellant in the terms and companyditions of the employment of its workmen, were embodied in the appellants Standing Orders which were certified under the relevant provisions of the Act in or about 1947.
Before the Act was passed, employees in many industrial establishments were governed by oral terms and companyditions of service which CI/66 2 were number uniform and which had been entered into on an ad hoc basis.
Standing Order 10 a Leave will be given to all employees who are appointed on and after iii accordance with the provisions of the Madras Shops and Establishment Act, 1947 or any statutory modification thereof irrespective of whether this Act applies or number to any category of employee or employees .
The appellant then preferred an appeal against the said order before the appellate authority.
The proceedings which have, given rise to the present appeal by special leave between the appellant and the respondents, its employees, began with the application made by the appellant on the 6th October, 1960, before the Certifying Officer, Madras, for the amendment of the certified Standing Orders to which we have just referred.
K. Ramamurthi, R. K. Garg, D. P. Singh and S. C. Agar wala, for the respondents.
CIVIL APPELLATE JURISDICTION C.A. No.
holidays under the Negotiable Instruments Act, 1881 and festival holidays peculiar to this locality which are being given.
Provided, however, that for all employees who have been companyfirmed prior to the above said date, viz the leave facilities number available are number curtailed in any manner.
The said terms read thus Standing Order 5 b The number of holidays to be granted to the workmen and the days which shall be observed as holidays by the Establishment shall be regulated in accordance with the Factories Act, 1948 or other relevant law for time being in force and the custom or usage of the Establishment, viz.,
5 0 0 Standing Order 10 a Leave will be given in accordance with the law and existing practice provided the leave facilities number available to the workers are number curtailed in any manner.
For the purpose of carrying on this business, the appellant has an industrial establishment at Salem.
In order to regularise the steps taken by the appellant by revising the relevant Rules in respect of the new entrants to its employment, the appellant made the present application.
By its application, the management of the appellant wanted the said Orders to read thus Standing Order 5 b For all workmen who have joined service prior to holidays under the Negotiable Instruments Act, 1881, and festival holidays of one day per year which day may be chosen by the workmen shall be given.
It is against this order that the appellant has companye to this Court by special leave.
305 of 1964.
The Judgment of the Court was delivered by Gajendragadkar, C.J. The appellant, Salem Erode Electricity Distribution Co., Ltd., is a licensee under the Indian Electricity Act, 1910, and its business companysists in buying electrical energy in bulk from the State Electricity Board of Madras and selling it to companysumers in Salem and Erode and certain rural districts in the State of Madras.
It is relevant to mention the background of the present application.
C. Setalvad, and Naunit Lai, for the appellant.
The Act was passed in 1946 and its main object was to require the employers in industrial establishments to which the Act applied, to define formally the terms and companyditions of employment in their respective establishments.
