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- The workers in the respondent-company manufacturing tyres in Bombay went on strike between the period 3rd March 1967 and 16th May 1967 and again from 4th October 1967. Due to the consequent short supply of tyres, the company had to lay-off 17 out of its 30 workmen in the distribution offices in Delhi and Madras. The workmen were called back to duty on 22nd April 1968 but were not given their wages or compensation for the period of lay-off. An industrial dispute was raised in Delhi and madras. The Delhi tribunal held that the workmen were not entitled to any layoff compensation. The Madras tribunal also held that the lay-off was justified. The matter came before the Supreme Court on special leave.
- The Supreme Court in this context looked into the meaning of “lay-off”. It held that the simple dictionary meaning according to the oxford dictionary of the term “lay-off’ is “period during which a workman is temporarily discharged“.
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