Decade-Long Labour Battle Ends in Victory: Bombay HC Orders Bajaj Auto to Reinstate Workman

In a significant ruling for Indian labour law, the Bombay High Court has mandated the reinstatement of a dismissed worker at Bajaj Auto Limited, declaring his 2014 termination void for failing to secure prior approval under Section 33(2)(b) of the Industrial Disputes Act, 1947. Justice Amit Borkar, in a common judgment on cross-writs (WP 15252/2024 and WP 8711/2024), held that industrial disputes remain "pending" until 30 days post-award publication, even if settled factually. This echoes recent coverage highlighting the court's emphasis on statutory pendency overriding practical closure.

From Factory Floor Misconduct to Courtroom Showdown

Santosh Chandrkant Potdar, a skilled workman with over 13 years at Bajaj Auto's Chakan plant, faced a 2012 charge-sheet for multiple misconducts under the company's Standing Orders. A domestic inquiry in 2014 found him guilty. While a parallel industrial dispute with the recognised union, Vishwakalyan Kamgar Sanghatana, lingered—despite a settlement via a 14 August 2014 MoU reinstating 13 similar workmen—Potdar was dismissed on 17 October 2014 without Section 33(2)(b) approval.

Potdar challenged this via a Section 33A complaint before the Industrial Tribunal, Pune (later transferred). The Tribunal upheld the inquiry's fairness but, in its 18 January 2024 award, deemed the dismissal illegal due to pendency yet awarded only Rs 7 lakh compensation, denying reinstatement. Both sides appealed: Potdar sought full reinstatement, Bajaj contested the illegality finding.

Workman's Plea: 'Restore My Job, Not Just a Payout'

Advocate Jane Cox argued the termination was void ab initio per Supreme Court precedents like Jaipur Zila Sahakari Bhoomi Vikas Bank Ltd. v. Ram Gopal Sharma , where non-approval renders dismissal inoperative, entitling automatic reinstatement with continuity. She dismissed Bajaj's "changed work culture" claim as conjecture, stressing Potdar's long service, unemployment post-grocery shop failure in 2021, and the company's training capacity. Citing Grindlays Bank Ltd. and Deepali Gundu Surwase , Cox urged full back wages, rejecting compensation as it presupposes valid severance.

Bajaj's Defence: 'No Live Dispute, No Approval Needed'

Senior Advocate Sudhir Talsania countered that the MoU and reference withdrawals ended pendency, making Section 33(2)(b) a "technicality." He invoked Sanjay V. Redkar against extending statutory fictions and MSRTC v. B.H. Satfale to argue the provision guards against victimization in live disputes only. With a fair inquiry complete, he warned broad interpretation could violate Articles 14/19, urging the Tribunal's compensation as equitable after a decade.

Decoding the Legal Labyrinth: Pendency, Approval, and Continuity

Justice Borkar dissected Section 33's protective intent—to shield workers from retaliation during strained proceedings—differentiating subsections for connected/unconnected misconducts. Crucially, applying Grindlays Bank , he ruled under Section 20(3) that proceedings deem-continue till 30 days post-publication of any award (even settlement records), binding employers to approval, one month's wages, and scrutiny for bona fides.

Rejecting Bajaj's "form over substance" plea, the court affirmed Jaipur Zila 's doctrine: unapproved dismissals are "inchoate," never legally effective, auto-restoring service without separate orders. Passage of time or hypothetical changes don't override this; no evidence supported Bajaj's adaptation concerns. On back wages, balancing Potdar's two-year unemployment, 2016-2021 grocery stint (50% deduction), and post-Covid joblessness, partial full wages were granted.

Precedents like MSRTC v. B.H. Satfale reinforced anti-victimization goals without paralysing employers, while fictions in Sanjay V. Redkar stayed confined to legislative purpose.

“The order of dismissal or discharge passed invoking Section 33(2)(b) ... remains incomplete and remains inchoate as it is subject to approval ... If approval is not given, ... it will have to be deemed that the order ... had never been passed.” ( Jaipur Zila , quoted at para 31)

Court's Gavel: Reinstatement, Not Handout

Dismissing Bajaj's writ, partly allowing Potdar's:

“The respondent-company is directed to reinstate the petitioner-workman ... within a period of eight weeks ... entitled to continuity of service ... back wages [full pre-2016 and post-Covid; 50% during business]” (para 40).

This mandates arrears within 12 weeks post-reinstatement, adjustable for prior payments. Implications ripple: employers must calendar statutory pendency precisely, or face automatic continuity. For workmen, it fortifies Section 33 safeguards, prioritizing reinstatement over lump sums in approval breaches— a win for industrial peace amid evolving workplaces.

“Once breach is established, consequence follows by operation of law.” (para 32)

As other reports note, this clarifies "deemed pending" even post-settlement, urging diligence in disputes.