Law: Constitution of India

Section: 141

ACT: Industrial Disputes Act 1947: Section 2(oo)--"Retrenchment"--Interpretation of--Whether termination by the employer of the services of a workman by employer for any reason whatsoever or termination by the employer of the services of a workman for any reason whatsoever otherwise than as a punishment inflicted by way of disciplinary action--Whether to be understood in its narrow, natural and contextual meaning or in its wider literal meaning. Precedent--Ratio decidendi of the earlier decision-How to ascertain--Major premise, minor premise and decision in a case-Whether may be narrowed or widened by the subsequent decision. Constitution of India, 1950--Article 141--Supreme Court is not bound by its earlier decision--Stare decisis--doctrine of. Decision per incuriam--meaning and effect of non reference to an earlier larger bench decision of Supreme Court--Subsequent decision of Supreme Court will be per incuriam only if the ratio of the earlier decision is in conflict with it. Interpretation of Statutes--Wider literal construction--When preferable to narrower, natural and contextual construction--Definition clause using the word means 'instead' of 'includes'--Shows that no other meaning can be assigned. HEADNOTE: This batch of eighteen appeals by special leave involves a common question of law, regarding the scope and ambit of the word 'retrenchment' as defined in Section 2(oo) of the Industrial Dispute Act, 1947. One of the appeals is by the workmen against the order of the High Court affirming the award of the Labour Court refusing to interfere with the order of termination of their services by the employer for their trade union-activities, while the rest are by the employers/ managements against the orders of High Courts/Industrial Tribunal/ Labour Court setting aside the orders of termination of the services of the illegal for non-compliance of the provisions of Section 25F of the Act. While the employers' contention is that the word "retrenchment" as defined in Section 2(oo) of the Act means termination of service of a workman only by way of surplus labour for any reason whatsoever, the workmen contend that "retrenchment" means termination of the service…

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