1. Termination of services — Violation of Section 25-F, Industrial Act — Dispute raised after significant delay. (Para 3 )
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1999 Supreme(SC) 1467
SUPREME COURT OF INDIA
Gurmail Singh
Vs.
Principal, Government College of Education
Decided on December 10, 1999
Important Points
Challenging dismissal belatedly does not preclude adjudication, but may affect entitlement to back wages.
Subject
Employment Law - Termination of Service
Act Referred
Headnote
Section 25-F - Termination of Service - Delay in Raising Dispute
Fact of the Case:
The appellant's services were terminated in 1981, and the dispute was raised in 1989. The Labour court and the High court dismissed the reference on the ground of delay.
Finding of the Court:
The court found that the termination of the appellant was held to be bad and set aside. The appellant was ordered to be reinstated with continuity of service, but was not entitled to back wages for the period of delay in raising the dispute.
Issues: Violation of Section 25-F of the Industrial Act, delay in raising the dispute
Ratio Decidendi: If the order of dismissal is challenged belatedly, the dispute would still continue for adjudication, and the only question would be to deprive back wages for the period of delay in raising such a dispute if on merits it is to succeed.
Final Decision: The appeal was allowed, and the judgment and order of the High court as well as the Labour court were set aside. The appellant was ordered to be reinstated in service as Junior Lecturer Assistant with continuity of service. The appellant was not entitled to any back wages from 1981 till 1989, and thereafter, the respondents were directed to pay 50 per cent of the back wages towards full and final satisfaction of appellant's claim, regarding back wages.
Legal Category Hierarchy
Table of Contents
2. Maintainability of industrial dispute — Whether delay in raising a reference bars adjudication of termination. (Para 3 )
3. Lower courts erred in dismissing the reference for delay despite finding a violation of Section 25-F of the Industrial Act. (Para 3 )
4. Belated challenge to dismissal does not bar adjudication — Delay only justifies deprivation of back wages for the period of delay. (Para 3 )
5. Termination set aside — Reinstatement with continuity of service — Partial back wages awarded. (Para 3 )
6. Does a delay in raising a dispute regarding termination of service bar the adjudication of the matter?
No. If an order of dismissal is challenged belatedly, the dispute continues for adjudication. The delay does not preclude the court from determining the merits of the termination. (Para 3 )
7. What is the legal effect of delay in challenging a dismissal order on the award of back wages?
If a belatedly challenged dismissal is found to be illegal on its merits, the employee may be deprived of back wages for the period of delay in raising the dispute. (Para 3 )
8. Is reinstatement with continuity of service permissible despite a delay in raising the industrial dispute?
Yes. If the termination is held to be bad on its merits, the employee can be ordered to be reinstated in service with continuity of service, regardless of the delay in raising the dispute. (Para 3 )
( 1 ) LEAVE granted.
( 2 ) BY consent of learned counsel for the parties, this appeal was heard finally.
( 3 ) HAVING heard learned counsel for the parties we find that the Labour court having held in case of the appellant whose services were terminated on 30/9/1981, that Section 25-F of the Industrial Act was violated, was in error in dismissing the reference on the ground of delay as the termination was of 1981 and the dispute was raised in 1989. Similarly, the High court in the impugned judgment committed the same error in confirming the said decision. The reason is obvious. As laid down by this court in the case of Ajaib singh v. Sirhind Co-operative Marketing-cum-Processing service Society ltd. and Anr. , (1996) 6 SCC 82, if the order of dismissal is challenged belatedly, the dispute would still continue for adjudication, the only question would be to deprive back wages for the period of delay in raising such a dispute if on merits it is to succeed. Following, the said decision, therefore, the appeal is allowed. The judgment and order of the High court as well as the Labour court are set aside. The termination of the appellant on 30/9/1981 is held to be bad and set aside. The appellant is ordered to be reinstated in service as Junior Lecturer Assistant with continuity of service. But so far as the back wages are concerned, he will not be entitled to any back wages from 30/9/1981 till 27/2/1989 as he had not raised any dispute during that time. Thereafter from 1/3/1989 till the date of reinstatement of the present appellant, on the facts and circumstances of the case, the respondents are directed to pay 50 per cent of the back wages towards full and final satisfaction of appellants claim, regarding back wages. This amount shall be calculated and paid to the appellant by the respondents within eight weeks from today. He shall be reinstated with continuity in service also within that time. The appeal is allowed to the aforesaid extent with no order as to costs.
