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2016 Supreme(SC) 606

SUPREME COURT OF INDIA
KURIAN JOSEPH, ROHINTON FALI NARIMAN, JJ.
Raju Chand – Appellant
Versus
The Zonal Director Nehru Yuva Kendra Sangathan, Chandigarh & Ors. – Respondents
Civil Appeal No. 6434 of 2016 [@ Special Leave Petition (C) No. 186 of 2016]
Decided On : 15-07-2016

The court has the discretion to grant appropriate monetary compensation in labor disputes, taking into consideration the length of service rendered by the employee.

Headnote:

Compensation - Labour Dispute - The court allowed the appeal and granted Rs. 7.5 Lakhs as compensation to the appellant, considering the long service rendered by the appellant and deeming the amount granted by the High Court as inadequate.

Fact of the Case:

The appellant, a driver on daily wage basis, was awarded reinstatement along with back wages by the Labour Court, which was upheld by the learned Single Judge. The Division Bench, however, granted one-time monetary compensation of Rs. 3.5 Lakhs to the appellant.

Finding of the Court:

The court found that the compensation granted by the High Court was inadequate considering the long service rendered by the appellant, and thus allowed the appeal, granting compensation of Rs. 7.5 Lakhs in full and final settlement of the entire claim of the appellant.

Issues:

Ratio Decidendi:

Final Decision: The appeal was allowed, and compensation of Rs. 7.5 Lakhs was granted to the appellant in full and final settlement of the entire claim. The amount was ordered to be released within a period of three months from the date of the judgment.

JUDGMENT :

Kurian, J.

1. Leave granted.

2. The appellant is before this Court, aggrieved by the Judgment of the Division Bench of the High Court, whereby the award passed by the Labour Court, as confirmed by the learned Single Judge, has been upheld.

3. The appellant was a Driver on daily wage basis, according to the appellant, on a temporary basis. Be that as it may, the Labour Court had passed an award, directing the reinstatement of the appellant along with back wages. That was upheld by the learned Single Judge. The Division Bench, however, took note of the fact that the Management had lost confidence and hence held that it was a fit case for one-time monetory compensation and hence, allowed the appeal and granted Rs. 3.5 Lakhs to the appellant.

4. Having heard the learned counsel appearing on both the sides, we are of the view that interest of justice would be met if appropriate monetory compensation is granted to the appellant. But in our opinion, taking note of the long service rendered by the appellant, the amount of compensation granted by the High Court is inadequate.

5. The appeal is thus allowed, granting compensation of Rs. 7.5 Lakhs (Rupees Seven Lakhs and Fifty Thousand) in full and final settlement of the entire claim of the appellant. The amount shall be released within a period of three months from today.

No costs.

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