Himalaya Wellness Company vs Kunal Lodh & Anr on 27 July, 2026

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    Calcutta High Court (Appellete Side)

    Himalaya Wellness Company vs Kunal Lodh & Anr on 27 July, 2026

                                                                            2026:CHC-AS:1129
    
    
                         IN THE HIGH COURT AT CALCUTTA
                          Constitutional Writ Jurisdiction
                                 APPELLATE SIDE
    
    Present:
    
    The Hon‟ble Justice Shampa Dutt (Paul)
    
    
    
                               WPA 28269 of 2025
                            Himalaya Wellness Company
                                       Vs
                                Kunal Lodh & Anr.
    
                                          with
    
                                WPA 28272 of 2025
                            Himalaya Wellness Company
                                       Vs
                               Khokan Ghosh & Anr.
    
                                          with
    
                                WPA 28274 of 2025
                            Himalaya Wellness Company
                                       Vs
                               Arindam Barua & Anr.
    
                                          with
    
                               WPA 28280 of 2025
                            Himalaya Wellness Company
                                       Vs
                               Mukesh Patra & Anr.
    
    
    For the Petitioner              :   Mr. Soumya Majumder, ld. Sr. Adv.
                                        Mr. S.K. Singh,
                                        Mr. Sujit Sharma,
                                        Mr. R.K. Dubey,
                                        Mr. S.R. Singh.
    
    For the respondent No. 1    :       Mr. Anindya Lahiri,
                                        Mr. Bikash Chakraborty.
    
    For the State               :       Mr. Kaustav Seal,
                                        Mr. Saikat Koley.
                                                    2
    
                                                                                       2026:CHC-AS:1129
    
    
    Judgment reserved on                :              02.07.2026
    
    Judgment delivered on                   :          27.07.2026
    
    Shampa Dutt (Paul), J.:
    

    1. The writ application has been preferred challenging awards dated

    03.10.2024 passed by the learned Second Industrial Tribunal at

    SPONSORED

    Kolkata, in Case No. 18/2021, Case No. 19/2021, Case No. 20/2021

    and Case No. 21/2021 and the order dated 18.08.2025 passed in review

    in these cases by the learned 5th Industrial Tribunal at Kolkata (while

    in-Charge of 2nd Industrial Tribunal, West Bengal at Kolkata) against

    the review applications filed by the petitioners.

    2. It appears that vide the impugned awards the learned Tribunal declared

    the termination of the private respondents as illegal and unjustified and

    further directed their reinstatement as permanent Medical

    Representative and also directed payment of all back wages.

    3. Being aggrieved with the said order, the writ application has been

    preferred by the respondent/establishment.

    4. Mr. Majumder, learned senior counsel appearing for the petitioner

    submits that the petitioner herein vide its service closure letter dated

    12th January, 2021, as part of restructuring the company decided

    to temporarily reduce its workforce and it was due to such decision

    of the company, the services of the private respondents herein

    were terminated on and from 30.01.2021.

    5. It is the contention of the petitioner herein that the termination of the

    private respondents was only for the sole reason to temporarily
    3

    2026:CHC-AS:1129
    reduce its workforce and, as such, there being no complaints

    against the private respondents, no disciplinary proceeding was

    initiated.

    6. It is brought to the notice of this Court that the learned Tribunal in its

    award at page 4 paragraph 2 held as follows:-

    “The service closure letter mentions that for the purpose of
    restructuring of Hospital Strategic Business Unit of the
    OP company was compelled to temporarily reduce the
    workforce for development of the OP company. So it means
    that the petitioner was not permanently or conclusively
    terminated from his service. On the other hand, he was
    temporarily terminated from his service for the
    principle of restructuring followed by the OP company.”

    7. It is submitted that the learned Tribunal completely misunderstood

    the terminology “to temporarily reduce its workforce” with the

    word “temporarily terminated”.

    8. Considering the said fact and on the basis of evidence, the Court

    directed the reinstatement of the private respondents as a permanent

    medical representatives.

    9. On the other hand, Mr. Lahiri, the learned counsel for the private

    respondents submits that subsequently some of the persons who had

    been terminated during the said „temporary reduction‟ of its

    workforce, were reinstated, but the private respondents in these

    case were not reinstated and as such, the private respondents also

    claim the benefit of Section 25H of the Industrial Disputes Act.
    4

    2026:CHC-AS:1129

    10. The petitioner‟s case in the writ applications is that the private

    respondents filed applications under Section 2A (2) of the Industrial

    Disputes Act, 1947 (hereinafter referred to as the „said Act‟) before the

    learned Second Industrial Tribunal, West Bengal, at Kolkata, registered

    as Case No. 20/2021/2A(2) alleging their termination and/or

    retrenchment to be illegal and that in order to terminate the workmen,

    the company has taken false plea of restructuring. It was further alleged

    that the company also did not comply with the provisions of law under

    the Act for such retrenchment of the workman.

    11. On completion of hearing the learned Tribunal by its awards dated

    03.10.2024 declared that the orders of termination dated 30.01.2021

    issued by the company was illegal and directed for reinstatement with

    full back wages with consequential benefits with compound interest of

    10% per annum. Cost of Rs.3,00,000/- was also imposed upon the

    petitioner.

    12. The petitioner herein has also raised the point of territorial jurisdiction

    in the present case, in view of the fact that the concerned employee used

    to work in the capacity of Business Development Officer and his nature

    of duty was to tour to various states of the company in order to

    supervise the sale of the products of the company and had been

    reporting to Bangalore office.

    13. The address of the opposite party as mentioned in the cause title

    i.e. Himalaya Wellness Company C/o. Sinha Coal Storage, Alampur,

    National Highway 6, near Indian Oil Pump, Howarh-711302 is the

    company‟s CFA (Carrying and Forwarding Agents) address and not a
    5

    2026:CHC-AS:1129
    Himalaya office address. All the employees used to report to the

    Bangalore office. The CFA address has been set up as a meeting point in

    order to conduct any meets/conferences with the employees by the

    managers. As mentioned, the office of Himalaya is Bangalore. All the

    employees report to the Bangalore office. The appointment letters,

    termination, promotion, or any other official communication to the

    employees are from the employees are from the Bangalore Office. It

    is also evident from the Service Rules Book that is issued to every

    employee at the time of appointment are aware that the jurisdiction is

    in Bangalore and the employees are aware that the H.O. is

    Bangalore. Therefore, the appropriate Government for the purpose

    of the jurisdiction was State of Karnataka.

    14. It is the further case of the petitioners that it was forced to restructure

    its Zeus strategic Business unit as a part of the business

    organization by reducing its work force. Hence, the company had to

    discontinue with the service of some of the employees which includes

    the applicants as well. But the company had provided adequate

    compensation to the people working for the organization who had to be

    terminated due to unforeseen and unfortunate situation. The company

    had partnered with placement agency to support through this transition

    period and provided assistance to the terminated employees to find a

    suitable job opportunity and requested for authority to get in touch with

    the other employer on behalf of the terminated employees to find a

    suitable placement in this transition stage. The company has settled

    all legal dues of the applicants with two months additional pay with
    6

    2026:CHC-AS:1129
    the one-month notice. The said amount was duly received by the

    applicant without demur of any protest. But the learned Tribunal has

    considered the same as a case of “retrenchment” and “unfair labour

    practice” which is erroneous and thus liable to be reviewed.

    15. It is further stated that while accepting the employment with the

    petitioners vide letter of appointment the respondent no.1 had

    accepted clause 9 therein, which provides that in case of any

    dispute between the parties the same would be referred to sole

    arbitrator for arbitration to be held at Bangalore, Karnataka.

    16. The petitioners have challenged the impugned award on the

    grounds that:-

    (i) The 2nd Industrial Tribunal did not have territorial jurisdiction,

    in view of the fact that clause 9 in the letter of appointment

    was duly accepted by the respondents. The matter is subject

    to arbitration to be held in Bangalore, Karnatana.

    (ii) The learned Tribunal wrongly held that the termination of the

    respondents was bad and illegal on the ground that the

    retrenchment benefits were not provided. The tribunal then

    completely overlooked the fact, that the dues of final

    settlement was duly accepted by the respondents.

    (iii) The learned Tribunal also wrongly interfered with the

    discretion of a company in the matter of closing down some of

    its units, even if such closer do not amount to closer of

    business.

    7

    2026:CHC-AS:1129

    (iv) The tribunal has traveled beyond the order of

    reference/issues, framed adjudication and the impugned

    order was passed without proper application of mind and the

    same is thus to be set aside.

    17. Supplementary affidavit has been filed by the petitioners, enclosing

    copies of evidence as recorded before the Tribunal. Parties herein have

    filed their respective written notes along with the judgments relied upon.

    18. On filing written notes, Mr. Majumder, argues that the respondent no.1

    claiming himself to be a Medical Representative/Sales Promotion

    Employee within the meaning of the Sales Promotion Employees

    (Conditions of Service) Act, 1976 had invoked jurisdiction under section

    2A(2) of the I.D. Act, 1947 claiming that his termination from service on

    account of restructurization of ZEUS Strategic Business Unit of the

    Company was unjustified, and he ought to be absorbed in some other

    Divisions/Units of the Company and re-employed thereat.

    19. The respondent No.1 had rendered service in the Company from April

    18, 2012 till January 30, 2021 i.e. for a period of 8.8 years.

    20. It is further stated that vide a termination notice dated January 12,

    2021, the respondent no.1 was paid compensation of 6 months plus

    one month’s notice pay i.e. for 7 months instead of the mandatory

    requirement of compensation and notice pay of 6 months in his

    case under the provisions of section 25F of the I.D. Act, 1947. Even

    without mentioning retrenchment compensation, if an ex-gratia payment

    fulfils the requirement of compensation to be paid; then the same is

    reckoned as sufficient compliance of Section 25F.
    8

    2026:CHC-AS:1129

    21. In support of the said contention the petitioner relies upon a judgment

    reported in 1996 (1) LLN 106 (Cal-DB) GKW Limited -vs- 5th I.T.,

    West Bengal & Ors.

    22. Mr. Majumder also relies upon the following judgments in support of his

    contention:-

    (i) (2005) 5 SCC 91 (para 18) – Haryana State Cooperative Land

    Development Bank vs. Neelam;

    (ii) (2004) 1 SCC 68 (para 9, 10) – Pondichery Khadi and Village

    Industries Board vs. P. Kulothangan & Anr.

    23. It is stated that the respondent refused to take the credited amount of

    compensation as he wanted to re-employed by the company which

    reveals that he did not face any financial hardship caused by such

    termination.

    24. The respondent has admitted in evidence that he had received all his

    dues from the company fully and finally.

    25. The respondent no.1 himself applied for gratuity on January 31,

    2021 and received the same.

    26. It is further argued by Mr. Majumder, that the requirement of sending

    notice to the authorities of the Government under section 25F(c) of the

    I.D. Act, 1947 has been held to be a directory provision and hence non-

    compliance thereof does not invalidate a retrenchment. In any event,

    this had not been the case of the respondents before the Industrial

    Tribunal.

    27. The decision in the case of Manju Saxena -Vs- Union of India & Anr.

    reported in (2019) 2 SCC 628 (para 6.9) is also relied upon. Mr.
    9

    2026:CHC-AS:1129
    Majumder submits that when the company had closed down the

    business unit, it had endeavoured to procure employment for all the

    terminated employees without any discrimination through application to

    be made to the Placement Agency identified by the Company. In

    response to the same, the respondents had refused to offer themselves

    for a possible employment elsewhere, thus exhibiting total reluctance to

    work, or to mitigate their hardship due to termination from service.

    28. It is further stated that the respondents had themselves exhibited their

    unwillingness to procure employment elsewhere and thus in the matter

    of awarding relief, their conduct is hit by Explanation to section 73 of

    the Indian Contract Act.

    29. It is further argued that the respondents through their cases as made

    out before the Learned Tribunal have admitted that the Business Unit

    was closed. They have not been able to make out any case of

    discrimination as regards retention of any other employee of the

    business unit where they were working. Their only case was that they

    ought to be posted in some other division, where the company had

    subsequently recruited other persons.

    30. It is further stated that Section 25G of the I.D. Act, 1947 will have no

    manner of application, since all employees of the Division/ Business

    Unit had been terminated.

    31. It is further argued that the justifiability of closure of the Unit has

    not been challenged, nor could it have been a subject-matter of an

    adjudicatory process; since the reality of closure can only be referred

    to the Tribunal at the behest of a trade union or a substantial
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    2026:CHC-AS:1129
    number of workmen. A closure issue is not an individual dispute

    referable to a Tribunal, at the instance of an individual workman.

    32. In fact, the dispute of closure is pending at the behest of a trade

    union before an Industrial Tribunal in Case No. VIII-28/2024/10.

    33. Regarding the issue of the respondents claiming absorption or posting in

    some other division of the company, when all employees in the business

    unit where they had been working have been terminated, is addressed

    by Mr. Majumder as follows:-

    (i) It is stated that this closure is not of a premises of the

    Company. It is a business decision to close a particular

    type of business in the process of restructurization, the

    grounds whereof had been explained by the Management

    Witness in his deposition before the Industrial Tribunal.

    (ii) Argument on behalf of the Respondents, that they have a

    right of re-employment in terms of section 25H of the I.D.

    (West Bengal Amendment) Act, 1947 is mutually

    inconsistent to their case. Section 25H operates only

    when a Unit is closed. The said provision only confers a

    right upon a workman to offer himself for re-employment.

    The language of section 25H is thus a mere right of

    workman to offer himself for re-employment, and

    nothing beyond that.

    Thus, breach of condition or dispute in relation to

    Section, 25H is once again not an individual dispute as

    understood within the meaning of section 2A of the I.D.
    11

    2026:CHC-AS:1129
    Act, 1947, which is capable of being raised by an

    individual workman. A dispute with regard to re-

    employment has to be necessarily raised by a trade

    union or substantial number of workmen of the

    industry. It has not been the case of the Respondent

    no.1 that on his termination from service, some other

    workmen had been appointed in his place. In any event,

    the provision of section 25H cannot apply in this case

    since the closed Unit is not being reopened or has not

    been reopened by the company.

    34. It is further submitted that the learned Tribunal erroneously held

    that the respondents were not permanently or conclusively

    terminated from service. In respect of the findings of the learned

    Tribunal which records that four persons were appointed by the

    company in other divisions without offering to the respondent no.1 in

    those divisions and this has been held to be an Unfair Labour Practice in

    terms of Section 25T of the I.D. Act, 1947. The Tribunal made a finding

    of victimization under the Vth Schedule to the Act and awarded

    compensation of Rs.3 lacs on such account. The Tribunal held that

    Company should have re-appointed the Respondent no.1 in any of its

    other divisions.

    35. It is thus stated that the said findings are perverse for the following

    reasons:-

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    2026:CHC-AS:1129

    (i) The respondents prayed for reinstatement in the said status

    and not re-appointment and re-employment in some other

    division. It was thus a relief granted beyond prayer.

    (ii) The Tribunal had accepted the closure of the business unit at

    many places in the Award, but contradicted its own finding by

    holding that the said Unit is still in existence. Conversely, the

    Tribunal granted the relief of reinstatement in the closed

    Business Unit “or any other Divisions under the Company”.

    (iii) Unfair Labour Practice under section 25T was not an issue

    to be adjudicated.

    The finding to that effect is beyond the terms of reference.

    (iv) Even if there be a finding of Unfair Labour Practice, the Award

    of compensation amount of Rs. 3 Lakhs is without any

    evidence and beyond jurisdiction since Section 25T itself

    prescribes punishment for that purpose. Industrial Tribunal

    does not have wherewithal to assess compensation or loss by

    way of torts or civil damages.

    36. Hence, the petitioners have prayed for setting aside of the said award.

    37. Written notes have been filed on behalf of the respondents and on filing

    the said notes, Mr. Lahiri appearing for the respondents has argued

    that there was no justification to throw the respondents out of

    employment in the name of restructuring and the Petitioner could

    have transferred them to any other business unit temporarily till

    completion of the process of restructuring but the petitioner has

    simply retrenched the respondents illegally from service and the
    13

    2026:CHC-AS:1129
    Petitioner published advertisement for filling up vacancies but did not

    ask the respondent to join in any such vacant post and the Petitioner

    did not pay any notice pay and compensation for such retrenchment

    and the said Zeus Strategic Business Unit has not been legally closed

    and after 30.01.2021 the respondents never worked in any place for his

    earning.

    38. Mr. Lahiri, further argued that the service closure letter mentions that

    for the purpose of restructuring of Hospital Strategic Business Unit of

    the Petitioner was compelled to temporarily reduce the workforce

    for development of the Petitioner. So it means that the respondent was

    not permanently or conclusively terminated from his service. On

    the other hand, he was temporarily terminated from his service for the

    principle of restructuring followed by the petitioner. So it is clear that

    though the service closure letter mentions about temporary

    termination of the respondent from his service, actually the respondent

    has been terminated forever by the petitioner for the said issue of

    restructuring. So such type of termination comes under the purview of

    retrenchment ring, according to Section 2 Clause (oo) of The Industrial

    Disputes Act, 1947.

    39. It is further argued that there has been non-compliance of Section 25(F)

    of the Industrial Disputes Act. The respondents relies upon the following

    judgments:-

    (i) Narottam Chopra Vs. Presiding Officer as reported in

    1988(36) 636;

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    2026:CHC-AS:1129

    (ii) Pramod Jha and Ors. Vs. State of Bihar and Ors.

    reported in Indian Kanoon in case no. Appeal (Civil

    4157) of 2000;

    (iii) Anoop Sharma Vs. Executive Engineer, Public

    Health, Division No. 01, Panipath (Haryana)

    reported in (2010) 5 Supreme Court 497);

    (iv) Raj Kumar vs. Director of Education and Ors. in

    Civil Appeal No. 1020 of 2011.

    40. It is further argued by Mr. Lahiri that the petitioner after retrenchment

    of their services of the respondents, appointed some other persons in

    different divisions of the petitioner and the petitioner did not given

    any offer to the petitioner to join in those divisions of the petitioner after

    his termination.

    41. It is further submitted that the petitioner after retrenching the

    respondents has given appointment to 9(nine) new candidates in its

    other divisions. The respondent like Zenith Strategic Business Unit,

    Zeal Pure Herbs Strategic Business Unit & Zandra Strategic Business

    Unit of the petitioner. Therefore, the conduct of the petitioner invariably

    goes to show the blatant violation of Section 25H of the Industrial

    Dispute Act, 1947.

    42. Mr. Lahiri further argues that the termination of the respondents is

    retrenchment as per Section 2(OO) of the Industrial Disputes Act, in

    view of the fact that the retrenchment turn out to be an “illegal

    retrenchment” because the conditions precedent to retrenchment of

    workmen as featured in Section 25F of the Industrial Disputes Act,
    15

    2026:CHC-AS:1129
    1947, has been blatantly violated of the petitioner while retrenching the

    respondent no. 1 from the service.

    43. Mr. Lahiri further submits that the impugned award is in accordance

    with law and requires no interference.

    44. The respondents have filed their additional written notes and the learned

    counsel for the respondents has argued on filing the same, that as the

    termination letter was served upon the respondents within the

    State of West Bengal, the Tribunal had territorial jurisdiction.

    45. Mr. Lahiri, relies upon the judgment of the Full Bench of Chhattisgarh

    in Surit Ram vs. State of Chhattisgarh & Anr. reported in 2025

    (187) FLR 285, wherein it is submitted that the Full Bench has clearly

    explained as to the relief to which a terminated employee is entitled:-

                       Relief                            Parameters
            Full Back Wages                   Illegal       termination       +
                                              permanent/long service + no
                                              misconduct + prompt challenge +
                                              no gainful employment
            Partial Back Wages                Delay in dispute + short tenure +
                                              possible gainful employment +
                                              financial hardship of employer
            No Back Wages                     Long unexplained delay + gainful
                                              employment        elsewhere     +
                                              misconduct by workman + bona
                                              fide but technically defective
                                              termination
    
    
    

    46. Regarding the respondents‟ company that compliance of Section 25(f) of

    the Industrial Disputes Act is directory and not mandatory in nature, he

    has relied upon the following judgments:-

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    (i) Armed Forces Ex Officers Multi Services Co-operative Society

    Ltd. vs Rashtriya Mazdoor Sangh (INTUC) reported in 2022

    (175) FLR 544;

    (ii) Jeetubha Khansangji Jadeja vs Kutchh District Panchayat

    reported in 2022 (175) FLR 625.

    47. Jurisdiction

    Regarding the point of jurisdiction raised by the respondent/company it

    appears that though the company is Headquarter in Bengaluru,

    Karnataka, India with primary registered corporate fall with the legal

    jurisdiction of Karnataka, the petitioners were appointed with their

    Headquarter at Kolkata.

    48. But clause 9 of the appointment letter is as follows:-

    “Clause 9. Any dispute or differences which may arise

    between you and the Company shall be subject to the

    jurisdiction of Bangalore Courts only.”

    49. The rules were duly accepted by the petitioner as per clause 10 of the

    said appointment letter.

    50. As such as per the terms and conditions in the appointment letter, the

    dispute was to be raised within Bangalore, State Karnataka.

    51. But the company/respondent had not raised the said issue before the

    tribunal, which proceeded to decide the case.

    52. In the present case, the issue of maintainability does not solely depend

    on pure questions of law, considering that herein it is on the point of

    territorial jurisdiction and as the matter was adjudicated by the tribunal

    on merit, and also the fact that the petitioner‟s on being appointed were
    17

    2026:CHC-AS:1129
    posted in the Headquarters of the company at Kolkata, the

    impugned award is taken up for consideration as to whether the same is

    subject to review by this Court.

    53. Closure

    By a letter dated 12th January, 2021, the petitioner was served with a

    service closure letter where in it was stated:-

    “……….As part of having a sustainable business, we at
    Himalaya too have been constrained to review our current
    business model. Under the given circumstances, we are
    restructuring Zeus, Strategic Business Unit of The Himalaya
    Drug Company. As part of the restructuring, it has become
    necessary for the company to temporarily reduce its
    workforce. In view of this development, your services are no
    longer required in the Company. Consequently, your services
    are hereby terminated with effect from closing hours of
    30.01.2021. You would be relieved from service with effect
    from the closing hours of 30.01.2021.

    To help you through this transition stage, as a special
    gesture, considering your number of years of service with the
    Company, we will be paying you 6 months additional pay, as
    compensation apart from one month notice pay. You are
    hereby requested to return the Company belongings and
    submit the ‘No Dues Certificate’ from reporting manager at
    the earliest, in order to process your full and final settlement.

    We want you to know this termination is not a
    statement about your work for Himalaya. You have been a
    dedicated, contributing employee for 8.8 years.

    We will extend career assistance for placement
    opportunities with potential employers. We have partnered
    with placement agency to support you through this transition
    stage and assist you in finding a suitable job opportunity. If
    you wish us to speak on your behalf to potential employers,
    please reach us out. It gives us your permission to discuss
    your employment with potential employers. You will receive
    separate communication on career assistance program
    shortly………”

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    2026:CHC-AS:1129

    54. Yes, a company can reduce its workforce during restructuring, but

    it must follow strict legal rules. This type of job cut is often called a

    reduction in force, downsizing, or retrenchment. Companies do this to

    cut costs, combine roles, or fix overlapping duties after a merger.

    55. It is clear from the language used in the letter that the company

    informed that it was necessary to “temporarily reduce its workforce”.

    56. As such it is clear that the tribunal wrongly interpreted the same to

    means “that the petitioner was not permanently or conclusively

    terminated from his service. On the other hand, he was

    temporarily terminated from his service for the principle of

    restructuring followed by the OP company.”

    57. The term “temporarily terminated” is solely the interpretation of the

    tribunal, which is clearly erroneous and total wrong interpretation of the

    phrase “temporarily reduce its workforce”.

    58. The term “temporarily terminated” constitutes two words totally

    contradictory to each other.

    1) Temporary-meaning-lasting for a short time. Not

    permanent.

    2) Terminated-meaning-the act of bringing something to an

    end or the State of being finished. The final end.

    59. As such the tribunal putting the words together, has come to an

    completely erroneous finding.

    60. Section 25F of the I.D. Act, lays down:-

    “25F. Conditions precedent to retrenchment of
    workmen.- No workman employed in any industry who has
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    2026:CHC-AS:1129
    been in continuous service for not less than one year under
    an employer shall be retrenched by that employer until-

    (a)the workman has been given one month ‘s notice in writing
    indicating the reasons for retrenchment and the period of
    notice has expired, or the workman has been paid in lieu of
    such notice, wages for the period of the notice;[* * *]

    (b)the workman has been paid, at the time of retrenchment,
    compensation which shall be equivalent to fifteen days
    ‘average pay [for every completed year of continuous
    service] or any part thereof in excess of six months; and

    (c)notice in the prescribed manner is served on the
    appropriate Government [or such authority as may be
    specified by the appropriate Government by notification in
    the Official Gazette.]”

    61. On being terminated, the respondents were paid compensation and

    notice pay.

    62. As such the provision of Section 25F of the Industrial Dispute Act was

    duly complied with. The following judgments support the case of the

    petitioner herein:-

    i) The Supreme Court in District Red Cross Society vs Babita

    Arora & Ors. AIR 2007 SC 2879, decided on 14 August, 2007,

    the Court held:-

    “8. The question which arises for consideration is whether
    the respondent is entitled to protection of Section
    25F
    and 25G of the Act if the establishment in which she
    was working itself has been closed down though certain
    other wings or units of the appellant District Red Cross
    Society, Karnal, have not been closed down and are still
    functioning. Section 25F of the Industrial Disputes Act
    lays down the conditions precedent to retrenchment of
    workmen and it reads as under:

    25F. Conditions precedent to retrenchment of workmen.-
    No workman employed in any industry who has been in
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    2026:CHC-AS:1129
    continuous service for not less than one year under an
    employer shall be retrenched by that employer until–

    (a) the workman has been given one month’s notice in
    writing indicating the reasons for retrenchment and the
    period of notice has expired, or the workman has been
    paid in lieu of such notice, wages for the period of the
    notice:

    (b) the workman has been paid, at the time of
    retrenchment, compensation which shall be equivalent to
    fifteen days’ average pay [for every completed year of
    continuous service] or any part thereof in excess of six
    months; and

    (c) notice in the prescribed manner is served on the
    appropriate Government [or such authority as may be
    specified by the appropriate Government by notification in
    the Official Gazette].

    Section 25FFF deals with compensation to workmen in
    case of closing down of undertakings. The relevant part of
    Sub-section (1) of Section 25FFF (omitting the proviso)
    reads as under :

    25FFF. Compensation to workmen in case of closing down
    of undertakings.- (1) Where an undertaking is closed down
    for any reason whatsoever, every workman who has been
    in continuous service for not less than one year in that
    undertaking immediately before such closure shall, subject
    to the provisions of sub-section (2), be entitled to notice and
    compensation in accordance with the provisions of section
    25F
    , as if the workman had been retrenched:

    Provided ……………………….

    Therefore, the legislature has treated closing down of
    undertakings which automatically result in termination of
    services of all workmen working therein differently from a
    retrenchment simplicitor as defined in Section 25F of the
    Act. In Workmen of the Indian Leaf Tobacco Development
    Co. Ltd., Guntur v. The Management of Indian Leaf
    Tobacco Development Co. Ltd., Guntur
    AIR 1970 SC 860, it
    was held as under : “No Industrial Tribunal, even in a
    reference under Section 10(1)(d) can interfere with
    21

    2026:CHC-AS:1129
    discretion exercised by a company in the matter of closing
    down some of its branches or depots. Even if such closure
    may not amount to closure of business of the Company,
    the Tribunal has no power to issue orders directing a
    Company to reopen a closed depot or branch, if the
    Company, in fact, closes it down and that closure is
    genuine and real. The closure may be treated as stoppage
    of part of the activity or business of the Company. Such
    stoppage of part of a business is an act of management
    which is entirely in the discretion of the Company carrying
    on the business. ………………..”

    In Management of Hindustan Steel Ltd. v. The Workmen &
    Ors.
    1973 Labour & Industrial Cases 461, it was held by
    this Court as under in para 10 of the reports :

    “10. The word undertaking as used in S.25FFF seems to
    us to have been used in its ordinary sense connoting
    thereby any work, enterprise, project or business
    undertaking. It is not intended to cover the entire industry
    or business of the employer as was suggested on behalf of
    the respondents. Even closure or stoppage of a part of the
    business or activities of the employer would seem in law to
    be covered by this sub-section. The question has indeed to
    be decided on the facts of each case. …………………….”

    In workmen of the Straw Board Manufacturing Company
    Limited v. M/s Straw Board Manufacturing Company
    Limited (1974) 1 LLJ 499, this Court laid down the test of
    closure of a unit by observing that the most important
    aspect in a case relating to closure is whether one unit has
    such componental relation that the closing of one must
    lead to the closing of the other or the one cannot
    reasonably exist without the other. Functional integrity
    will assume an added significance in the case of
    closure.

    9. It appears that after the aforesaid decisions of the
    Supreme Court, the legislature by an amendment made in
    the year 1982 to the Industrial Disputes Act defined the
    word “closure” by adding Section 2(cc). Section 2(cc) of the
    Act reads as under :

    2(cc). “closure” means the permanent closing down of a
    place of employment or part thereof.

    22

    2026:CHC-AS:1129
    It is, therefore, clear that in order to attract Section
    25FFF
    it is not necessary that the entire establishment of
    an employer should be closed. If a unit or part of an
    undertaking which has no functional integrity with other
    units is closed, it will amount to closure within the
    meaning of Section 25FFF of the Act. In J.K. Synthetics v.
    Rajasthan Trade Union Kendra & Ors.
    (2001) 2 SCC 87, it
    has been observed that the closure need not be of the
    entire plant. A closure can also be of a part of the
    plant.
    In Maruti Udyog Ltd. v. Ram Lal & Ors. (2005) 2
    SCC 638, it was held as under in para 21 of the report :

    “21. How far and to what extent the provisions of Section
    25F
    of the 1947 Act would apply in case of transfer of
    undertaking or closure thereof is the question involved in
    this appeal. A plain reading of the provisions contained in
    Section 25FF and Section 25FFF of the 1947 Act leaves no
    manner of doubt that Section 25F thereof is to apply only
    for the purpose of computation of compensation and for no
    other. The expression “as if” used in Section 25FF
    and Section 25FFF of the 1947 Act is of great significance.
    The said term merely envisages computation of
    compensation in terms of Section 25F of the 1947 Act and
    not the other consequences flowing therefrom. Both Section
    25FF and Section 25FFF provide for payment of
    compensation only, in case of transfer or closure of the
    undertaking. Once a valid transfer or a valid closure comes
    into effect, the relationship of employer and employee does
    not survive and ceases to exist. Compensation is required
    to be paid to the workman as a consequence thereof and
    for no other purpose.”

    The position in law is, therefore, well settled that if
    the entire establishment of the employer is not
    closed down but only a unit or undertaking is closed
    down which has no functional integrity with other
    units or undertaking, the provisions of Section
    25FFF
    of the Act will get attracted and the workmen
    are only entitled to compensation as provided
    in Section 25FFF of the Act which has to be
    calculated in accordance with Section 25F of the
    Act. The Tribunal and also the High Court clearly erred in
    holding that as other units of the appellant Red Cross
    Society like Drug De-Addiction-cum-Rehabilitation Centre,
    Family Planning Centre and Viklang Kendra were
    23

    2026:CHC-AS:1129
    functioning, the termination of services of the respondent
    would amount to retrenchment. The Maternity Hospital
    was functioning as a distinct entity. It was not receiving
    any grant from the Government and was being run entirely
    on charitable basis from donations received from public.
    Due to financial stringency, the Maternity Hospital had to
    be closed down. The other three units, viz., Drug De-
    Addiction- cum-Rehabilitation Centre, Family Planning
    Centre and Viklang Kendra are receiving grants from
    government and are functioning as separate entities and
    the mere fact that they have not been closed down,
    cannot lead to the inference that the termination of
    services of the respondent was by way of
    retrenchment which was illegal on account of non-
    compliance of the provisions of Section 25F of the
    Act.

    10. In view of the findings recorded above, the
    respondent would be entitled to compensation only
    in accordance with Section 25FFF of the Act and the
    award for reinstatement in service with back wages
    passed by the Tribunal which was affirmed by the
    High Court cannot be sustained and must be set
    aside.”

    63. In the present case, the respondents were duly paid compensation in

    accordance with Section 25FFF of the Act and also one month notice

    pay/compensation under Section 25F of the Act.

    64. In the present case also one unit had admittedly closed down, which has

    no functional integrity with other units and as such the respondents are

    entitled to compensation (paid) and not reinstatement as directed by

    the tribunal.

    65. The Andhra Pradesh High Court in G. Ram Babu vs The State of

    Andhra Pradesh Rep by its Secretary, Labour, Employment,

    Training & Factories (Labour-II) Department, Secretariat,

    Hyderabad & Ors., in Writ Petition No. 5020 of 2016, the Court held:-
    24

    2026:CHC-AS:1129
    “23. The core issue fell for consideration in the
    instant lis is, whether the 3rd respondent
    Corporation is entitled to take shelter under Section
    25F
    and 25G of the Industrial Disputes Act. If the
    3rd respondent Corporation, in which the petitioner
    worked is closed, whether the petitioner is entitled
    for absorption in other units of the 3rd respondent
    Corporation situated in far places which are not
    closed and still functioning.

    MRK,J

    24. In order to answer the above point, it is
    appropriate to note the relevant section, i.e., Section
    25F
    of the Industrial Disputes Act, 1947, which
    enunciated specific conditions precedent to
    retrenchment of workmen, is extracted hereunder:-

    “……25F. Conditions precedent to retrenchment of
    workmen.– No workman employed in any industry
    who has been in continuous service for not less than
    one year under an employer shall be retrenched by
    that employer until-

    (a) the workman has been given one month’s notice
    in writing indicating the reasons for retrenchment
    and the period of notice has expired, or the workman
    has been paid in lieu of such notice, wages for the
    period of the notice;

    1[*]

    (b) the workman has been paid, at the time of
    retrenchment, compensation which shall be
    equivalent to fifteen days average pay [for every
    completed year of continuous service] or any part
    thereof in excess of six months; and

    (c) notice in the prescribed manner is served on the
    appropriate Government [or such authority as may
    be specified by the appropriate Government by
    notification in the Official Gazette]……”

    25. The above provision governs the conditions
    precedent to retrenchment of workmen by an
    employer. The said provision lays down the
    mandatory requirements that an employer must fulfil
    before effecting retrenchment, failing which such
    25

    2026:CHC-AS:1129
    retrenchment would be deemed illegal and invalid
    under the law.

    26. It is apposite to refer Section 25 FFF relating to
    the compensation of the workmen in the event of
    closing down of said
    MRK,J establishments/undertakings. For the sake
    of comprehensive view, the relevant portion of Sub-
    section (1) of Section 25 FFF of the Industrial
    Disputes Act., is reproduced hereunder:-

    “……225FFF. Compensation to workmen in case of
    closing down of undertakings.-(1) Where an
    undertaking is closed down for any
    reasonwhatsoever, every workman who has been in
    continuous service for not less than one year in that
    undertaking immediately before such closure shall,
    subject to the provisions of sub-section (2), be
    entitled to notice and compensation in accordance
    with the provisions of section 25F, as if the
    workman had been Provided that where the
    undertaking is closed down on account of
    unavoidable circumstances beyond the control of the
    employer, the compensation to be paid to the
    workman under clause (b) of section 25F, shall not
    exceed his average pay for three months.

    ‘[Explanation.–An undertaking which is closed down
    by reason merely of-

    (i) financial difficulties (including financial losses); or

    (ii) accumulation of undisposed stocks; or

    (iii) the expiry of the period of the lease or licence
    granted to it; or

    (iv) in case where the undertaking is engaged in
    mining operations, exhaustion of the minerals in the
    area in which such operations are carried on, shall
    not be deemed to be closed down on account of
    unavoidable circumstances beyond the control of the
    employer within the meaning of the proviso to this
    sub-section.] 2[(1A) Notwithstanding anything
    contained in sub-section (1), where an undertaking
    engaged in mining operations is closed down by
    26

    2026:CHC-AS:1129
    reason merely of exhaustion of the minerals in the
    area in which such operations are carried on, no
    workman referred to in that sub-section shall be
    entitled to any notice or compensation in accordance
    with the provisions of section 25F, if-

    (a) the employer provides the workman with
    alternative employment – with effect from the date of
    closure at the same remuneration as he was entitled
    to receive, and on the same terms and conditions of
    service as were applicable to him, immediately
    before the closure;

    MRK,J

    (b) the service of the workman has not been
    interrupted by suchalternative employment; and

    (c) the employer is, under the terms of such
    alternative employment or otherwise, legally liable to
    pay to the workman, in the event of his
    retrenchment, compensation on the basis that his
    service has been continuous and has not been
    interrupted by such alternative employment.]…….”

    27. The legislature by an amendment i.e., Act 46 of
    1982 w.e.f. 21.08.1984 has officially defined the
    term „closure‟ by inserting Section 2(CC) in the year
    1982 to the Industrial Disputes Act, 1947. The
    complete text of Section 2(CC) is reproduced below:-

    “….2. (cc) ‘closure’ means the permanent closing
    down of a place of employment or part thereof;”

    28. The above provision crystal clears that if the
    establishment falls within the ambit of Section
    25FFF
    of the Industrial Disputes Act, 1947, it is not
    necessary that the entire establishment of the
    employer be closed; rather, the closure of a unit or
    part of the undertaking that has functional integrity
    with other units amounts to closure within the
    meaning of Section 25FFF of the Industrial Disputes
    Act. In other words, if the entire establishment is not
    shut down but only a specific unit or an undertaking
    is closed, provided, such unit has no operational
    stability with other units or undertakings, the
    provisions of Section 25FFF of the „Act‟ come into
    operation. Thus, in view of peculiar facts and
    27

    2026:CHC-AS:1129
    circumstances involved in the instant case, the
    petitioner is entitled only for compensation as
    enunciated under Section 25FFF of the Industrial
    Disputes Act, 1947.

    MRK,J

    29. In this backdrop, it is relevant to note the case
    of Maruti Udyog Ltd. Vs. Ram Lal 1 , wherein, the
    Hon‟ble Supreme Court had held as under:-

    “……21. How far and to what extent the provisions
    of Section 25-F of the 1947 Act would apply in case
    of transfer of undertaking or closure thereof is the
    question involved in this appeal. A plain reading of
    the provisions contained in Section 25-FF
    and Section 25-FFF of the 1947 Act leaves no
    manner of doubt that Section 25-F thereof is to apply
    only for the purpose of computation of compensation
    and for no other. The expression ‘as if’ used in
    Section 25-FF and Section 25-FFF of the 1947 Act is
    of great significance. The said term merely
    envisages computation of compensation in terms
    of Section 25-F of the 1947 Act and not the other
    consequences flowing therefrom. Both Section 25-FF
    and Section 25-FFF provide for payment of
    compensation only, in case of transfer or closure of
    the undertaking. Once a valid transfer or a valid
    closure comes into effect, the relationship of
    employer and employee does not survive and ceases
    to exist. Compensation is required to be paid to the
    workman as a consequence thereof and for no other
    purpose……”

    66. The petitioner/company relies upon the judgment in Guest keen

    Williams, Ltd. Vs Fifth Industrial Tribunal, West Bengal & Ors.,

    1996 1 L.L.N. 106, decided on 8th February, 1995, wherein the

    Calcutta High Court held:-

    “25. If those 32 employees are workmen within the
    meaning of the Act, then if their services are terminated
    amounting to retrenchment within the meaning of S. 25-
    28

    2026:CHC-AS:1129
    F of the Act, then they would be entitled to notice or one
    month’s pay in lieu of notice and compensation, on the
    computation as indicated in S. 25-F of the Act. If their
    case is taken as retrenchment within the meaning of S.
    25-F
    , then all the mandatory conditions are fulfilled by
    the management, namely, notice or one month’s pay in
    lieu of notice and the compensation.

    26. In the facts of the case we, therefore, hold that on
    the interpretation of S. 25-F of the Act that before
    terminating the services of those 32 employees all the
    mandatory conditions as contemplated by S. 25-F of the
    Act, were complied with namely, the notice or one
    month’s pay in lieu of notice and the compensation.

    27. It appears from the award that the Tribunal by its
    award held that the retrenchment was invalid as the
    mandatory conditions were not fulfilled. The Tribunal,
    however, held that the concerned workmen should not
    be entitled to reinstatement which would jeopardise the
    administration of the company, but they should be
    entitled to back-wages on the terms as indicated in the
    award. We have set out above, the operative portion of
    the impugned award. As we have found on
    interpretation of S. 25-F of the Act and on the facts of
    the case that the mandatory conditions of S. 25-F of the
    Act have been complied with by the management and,
    as such, the termination of services of those 32
    workmen amounting retrenchment within the meaning
    of the Act was valid, the said 32 employees, the
    respondent workmen in this appeal are not entitled to
    any further sum as has been directed by the Tribunal
    by its impugned award.

    28. During the pendency of the proceedings, both
    before the Trial Court as also before this Appeal Court,
    it has been brought to the notice of the Court that some
    employees have died in the meantime, some employees
    had taken employment elsewhere and considering the
    said fact, the Tribunal had directed the management to
    pay the back-wages in the manner as indicated in the
    award.

    29. Considering the facts of the case, we direct that
    whatever payment has been made by the management
    in terms of the award and also in terms of the interim
    29

    2026:CHC-AS:1129
    order passed by the Trial Court from time to time, the
    company should not realise or recover the amount
    already paid in terms of the award or in term of the
    interim order passed by the Appeal Court from time to
    time. As it appears to us that the retrenchment
    compensation as contemplated by S. 25-F of the Act,
    has been paid by the management to the said 32
    employees, at the time of termination of their services,
    may be it is under the description of ex gratia payment,
    there would be no further entitlement of compensation
    by those 32 employees or their heirs and legal
    representatives. The learned trial Judge, however,
    refused to interfere with the award on the ground that
    the Writ Court was not sitting in appeal over the
    findings of the Tribunal by the impugned award, but
    we feel that since the very decision-making process
    was made by the Tribunal on the basis of interpretation
    of S. 25-F of the Act, the Tribunal took some pedantic
    view not commensurate with the object for which the
    said S. 25-F of the Act was introduced. We, therefore,
    feel that some interference is called for and on the
    reasoning as indicated above, we feel inclined to
    interfere with the impugned award and set aside the
    award as we hereby do.”

    67. Respondent/workmen rely upon the following judgments:-

    1) Anoop Sharma vs Executive Engineer, Public Health

    Division No. 1, Panipat (Haryana), (2010) 5 SCC 497.

    2) Pramod Jha & Ors. Vs State of Bihar & Ors., AIR 2003

    SC 1872, decided on 3rd March, 2003.

    3) Armed Forces Ex Officers Multi Services Co-operative

    Society Ltd. Vs Rashtriya Mazdoor Sangh (INTUC), 2022

    (175) FLR 544, decided on August 11, 2022.

    30

    2026:CHC-AS:1129

    4) Jeetubha Khansangji Jadeja vs Kutchh District

    Panchayat, 2022 (175) FLR 625, decided on September

    23, 2022.

    68. The said judgments do not help in the present case, as there is due

    compliance of the relevant provisions by the petitioner in this case.

    69. The judgment in Deepali Gundu Surwase vs Kranti Junior

    Adhyapak & Ors. in Civil Appeal No. 6767 of 2013 (arising out of

    SLP (C) No. 6778 of 2012) decided on 12 August, 2013, relates to

    reinstatement, which again is not applicable in this case as the

    respondents are not entitled to reinstatement/reemployment in respect

    of a closure of unit. (District Red Cross Society (Supra) and G. Ram

    Babu (Supra)).

    70. Regarding compliance of Section 25(F)(c) of the act being directory or

    mandatory, the petitioner relies upon the judgment of the Supreme

    Court in Manju Saxena vs Union of India & Anr., (2019) 2 SCC 628,

    decided on December 3, 2018, the wherein Court held:-

    “6.9. However, no notice was sent to the appropriate
    Government or authority notified, in compliance with
    Section 25-F(c) of the ID Act. A three-Judge Bench of this
    Court in Gurmail Singh v. State of Punjab [Gurmail
    Singh
    v. State of Punjab, (1991) 1 SCC 189 : 1991 SCC
    (L&S) 147] held that the requirement of clause (c) of
    Section 25-F can be treated only as directory and not
    mandatory.
    This was followed in Pramod Jha v. State of
    Bihar [Pramod Jha
    v. State of Bihar, (2003) 4 SCC 619 :

    2003 SCC (L&S) 545] wherein it was held that
    compliance with Section 25-F(c) is not mandatory.”

    71. The judgment of 2019 shows that the Supreme Court was clearly of

    the view that the compliance of Section 25F(c) of the Act was only
    31

    2026:CHC-AS:1129
    directory and not mandatory as claimed by the respondent/workers.

    The Court also relied upon judgments of the Court in 1991 and 2003.

    72. On the other hand, the respondent/workers, have relied upon the

    judgment of 2016 in Raj Kumar vs Director of Education &

    Ors.(Supra) to support their case that the provisions of 25F(c) of the Act

    was not complied with even though the same is mandatory.

    73. The Court in the said judgment of 2016 relied upon a judgment of the

    year 1963.

    74. Thus the judgment in Manju Saxena (Supra) being later in time shall

    prevail.

    75. The documents at page 42, 43-44, show that the respondent/workman

    applied for gratuity and also received the same. The other document

    relate to the final settlement calculation cum pre-receipt of the

    compensation paid to these employees.

    76. Documents at page 55-56 are the petitioner‟s letter extending assistance

    for placement of the respondent/workman, which was refused in this

    case.

    77. Documents at 57 shows that the respondents refused to accept the

    compensation and dues credited to their accounts by refusing to use the

    same.

    78. As such the petitioner has taken the stand that this itself shows that the

    respondents did not require any financial assistance and this does not

    justify back wages.

    79. The closure of the unit is admitted.

    32

    2026:CHC-AS:1129

    80. Admittedly none of the persons terminated to reduce work force due to

    closure for restructuring, were reemployed in other units.

    81. The recruitment in other units were independently done and had no

    connection with the unit closed.

    82. The respondents do not have any right to be automatically absorbed in

    other units of the company in such cases (District Red Cross Society

    (Supra) and G. Ram Babu (Supra)).

    83. Regarding the scope of judicial review in writ jurisdiction, the parties

    have relied upon judgments which lays down the law:-

    a) In M/s. Bharti Airtel Limited vs A.S. Raghavendra, in

    Civil Appeal No. 5187 of 2023, decided on 2nd April,

    2024, the Supreme Court held:-

    “26. As regards the power of the High Court to
    reappraise the facts, it cannot be said that the same
    is completely impermissible under Articles
    226
    and 227 of the Constitution. However, there
    must be a level of infirmity greater than ordinary in
    a tribunal’s order, which is facing judicial scrutiny
    before the High Court, to justify
    interference…………………”

    b) West Bengal Central School Service Commission and

    Ors. Vs Abdul Halim & Ors. (2019) 18 SCC 39, Para

    29,30,31,32,33.

    “29. The High Court in exercise of its power to
    issue writs, directions or orders to any person or
    authority to correct quasi-judicial or even
    administrative decisions for enforcement of a
    fundamental or legal right is obliged to prevent
    33

    2026:CHC-AS:1129

    abuse of power and neglect of duty by public
    authorities.

    30. In exercise of its power of judicial review, the
    Court is to see whether the decision impugned is
    vitiated by an apparent error of law. The test to
    determine whether a decision is vitiated by error
    apparent on the face of the record is whether the
    error is self-evident on the face of the record or
    whether the error requires examination or
    argument to establish it. If an error has to be
    established by a process of reasoning, on points
    where there may reasonably be two opinions, it
    cannot be said to be an error on the face of the
    record, as held by this Court in Satyanarayan
    Laxminarayan Hegde v. Millikarjun Bhavanappa
    Tirumale [Satyanarayan Laxminarayan
    Hegde
    v. Millikarjun Bhavanappa Tirumale, AIR
    1960 SC 137] . If the provision of a statutory rule
    is reasonably capable of two or more
    constructions and one construction has been
    adopted, the decision would not be open to
    interference by the writ court. It is only an obvious
    misinterpretation of a relevant statutory provision,
    or ignorance or disregard thereof, or a decision
    founded on reasons which are clearly wrong in
    law, which can be corrected by the writ court by
    issuance of writ of certiorari.

    31. The sweep of power under Article 226 may be
    wide enough to quash unreasonable orders. If a
    decision is so arbitrary and capricious that no
    reasonable person could have ever arrived at it,
    the same is liable to be struck down by a writ
    court. If the decision cannot rationally be
    supported by the materials on record, the same
    may be regarded as perverse.

    32. However, the power of the Court to examine
    the reasonableness of an order of the authorities
    34

    2026:CHC-AS:1129

    does not enable the Court to look into the
    sufficiency of the grounds in support of a decision
    to examine the merits of the decision, sitting as if
    in appeal over the decision. The test is not what
    the Court considers reasonable or unreasonable
    but a decision which the Court thinks that no
    reasonable person could have taken, which has
    led to manifest injustice. The writ court does not
    interfere, because a decision is not perfect.

    33. In entertaining and allowing the writ petition,
    the High Court has lost sight of the limits of its
    extraordinary power of judicial review and has in
    fact sat in appeal over the decision of Respondent

    2.”

    c) Satyanarayan Laxminarayan Hegde and Ors. Vs

    Millikarjun Bhavanappa Tirumale, 1959 SCC OnLine

    SC10.

    84. Thus the impugned award suffers from inherent errors in the findings

    of the tribunal, as already discussed. Points as summarised are:-

    a) The tribunal has clearly misinterpreted the term “temporarily

    reduce it‟s workforce” with the term “temporarily terminated”,

    more so in the present case, when admittedly the unit which was

    to be restructured, was closed down permanently.

    b) In such circumstances, the question of reinstatement/or

    automatic reemployment in other units/divisions of the company

    does not arise and thus also there is no question of granting back

    wages (District Red Cross Society (Supra) and G. Ram Babu

    (Supra)).

    35

    2026:CHC-AS:1129

    c) The provision of Sections 25F, 25FFF and 25F(C) of the Act have

    been duly complied with.

    d) The finding of the tribunal as to “unfair labour practice” is also

    completely without any basis.

    85. Thus the impugned award(s) dated 03.10.2024 passed by the 2nd

    Industrial Tribunal, Kolkata in Case No. 18/2021, Case No.

    19/2021, Case No. 20/2021 and Case No. 21/2021 being based on

    no evidence, wrong interpretation and findings are set aside, being not

    in accordance with law, and thus an abuse of the process of law.

    86. Consequently the order in review dated 18.08.2025, in all the cases

    herein also are quashed and set aside.

    87. WPA 28269 of 2025 with WPA 28272 of 2025 with WPA 28274 of

    2025 with WPA 28280 of 2025 are allowed.

    88. Applications, if any, connected thereto stand disposed of consequently.

    89. Interim order, if any, stands vacated.

    90. Photostat certified copy of this Judgment, if applied for, be given to the

    parties on priority basis upon compliance of all formalities.

    (Shampa Dutt (Paul), J.)



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