SUPREME COURT OF INDIA
R. SUBHASH REDDY, SANJIV KHANNA, JJ.
Ram Manohar Lohia Joint Hospital and Others – Appellants
Versus
Munna Prasad Saini and Another – Respondents
Civil Appeal No. 5810 of 2021, Special Leave Petition (Civil) No. 9097 of 2019
Decided On : 20-09-2021
Industrial Disputes Act, 1947 – Sections 25F and 17B – Reinstatement in service – Appellant is a hospital run by State Government which requires approval of State Government for creation of regular posts and for recruitment and appointment – Procedure as prescribed under relevant extant rules has to be followed – First respondent has not asserted or claimed that procedure prescribed was followed for his selection and appointment – Appointment of first respondent was on contractual basis and not to a regular post on proper selection in terms of rules – Respondent has not indicated his educational qualifications and whether he has necessary qualifications to work as a nurse or a ward boy – Contractual term was over – There is nothing on record to show and establish appellant had not followed rule ‘last to come, first to go’ – First respondent was not a permanent employee but a contractual employee – There is no evidence to establish that appellant had retained junior workers; such unfair trade practice is not alleged or even argued – First respondent having worked for more than 240 days, termination of his services violated mandatory provisions of Section 25F of Industrial Disputes Act, 1947 – Order of Labour Court modified by setting aside direction for reinstatement and compensation enhanced by awarding a lump sum amount – Appeal partly allowed setting aside direction for reinstatement which is substituted with direction of award of lump sum compensation of Rs.10,00,000/- – Said amount would be paid within a period of ten weeks from date of this order – In case payment is not made within said period, appellant would be liable to pay simple interest @ 0.5% per month from date of this order till payment is made. (Paras 8, 9, 12, 14 and 15)
Facts of the case:
Appellants, Ram Manohar Lohia Joint Hospital and two others, have filed this appeal taking exception to the order and judgment dated 15.11.2018 whereby Lucknow Bench of High Court of Judicature at Allahabad has upheld the order dated 20.01.2010 passed by the Labour Court, Lucknow directing reinstatement of the first respondent herein along with compensation of Rs.20,000/- for the period of unemployment and entitlement to full pay from the date of the said order.
Findings of Court:
High Court had stayed reinstatement of the first respondent but no order under Section 17B of Industrial Disputes Act was passed. The first respondent has, however, filed an application before this Court under Section 17B to direct the appellant to pay “last drawn wages”.
Result : Appeal Partly allowed.
JUDGMENT :
SANJIV KHANNA, J.
1. Leave granted.
2. The appellants, Ram Manohar Lohia Joint Hospital and two others, have filed this appeal taking exception to the order and judgment dated 15.11.2018 whereby Lucknow Bench of the High Court of Judicature at Allahabad has upheld the order dated 20.01.2010 passed by the Labour Court, Lucknow directing reinstatement of the first respondent herein, namely, Munna Prasad Saini along with compensation of Rs. 20,000/- (rupees twenty thousand only) for the period of unemployment and entitlement to full pay from the date of the said order.
3. We have heard counsel for the parties at length and are inclined to partly interfere with the impugned order.
4. The first aspect in the dispute is whether the first respondent workman was an employee of the second respondent, namely, Bombay Intelligence Security (I) Ltd. or an employee of the appellant Hospital.
5. The Presiding Officer, Labour Court, Lucknow, Uttar Pradesh, in his order dated 20.01.2010, has held that the first respondent was the employee of the appellant and not of the second respondent. In arriving at this conclusion, the Labour Court has relied upon the attendance register/duty chart and the medicine intend book of male ward from September 2003 to June 2005. The Labour Court also records that in spite of direction given to the appellant to produce the attendance register/duty chart for the period, the records were not produced. In addition, the Labour Court has referred to the affidavit filed by the workman, and a copy of the duty chart for April and May, 2005, a copy of the salary payment register of July, 2004 and a copy of joining report and certificate issued by the appellant, all enclosed with the affidavit. Photocopies of these documents were obtained from the appellant by one Suraj Ram under the Right to Information Act, 2005. The Labour Court also took into account the ocular evidence of the first respondent that he had applied for the said post pursuant to newspaper advertisement dated 11.04.2003 and thereafter was appointed as a ward boy in the appellant hospital on a monthly salary of Rs. 2,950/- on 01.09.2003.
6. Learned counsel for the appellant submitted that the first respondent had impleaded the second respondent as respondent No. 3 before the Labour Court, Lucknow and in paragraph 19 of the details of the dispute, had referred to the Contract Labour (Regulation and Abolition) Act, 1970. It is asserted in the said paragraph that the appellant and the second respondent were neither registered under the aforesaid Act nor was the registration certificate issued by the Department of Labour. Our attention was drawn to Annexure P-1 to the present appeal which is a copy of Form No. 6 issued by the Deputy Labour Commissioner, Lucknow, Uttar Pradesh, whereby a licence was granted under the aforesaid Act to the second respondent. The licence mentions the date of amendment, fee paid for renewal and the date of expiry.
7. We have considered these documents but would not like to interfere with the factual findings recorded by the Labour Court, which has been affirmed by the High Court with respect to the engagement of the first respondent by the appellant hospital. It has been explained to us that the first respondent had impleaded the second respondent as a co-respondent in view of the stand taken by the appellant regarding the first respondent’s engagement through the second respondent, which factum was disputed by the first respondent. No doubt, the appellant has also placed before us Annexure P-4, an agreement dated 01.04.2003 between the appellant and the second respondent for engaging contractual workers, including 12 ward boys/aya/patient helpers, but this contract states that the payment will be made by the appellant to the second respondent every month within one week from the date of receipt of bill, which if required will be rectified to meet valid objections of the appellant. The reason why we would not like to rely upon t
Deputy Executive Engineer v. Kuberbhai Kanjibhai
Appointment – Procedure as prescribed under relevant extant rules has to be followed.
The main legal point established is that in cases of illegal termination, the court may consider exceptional circumstances and order lump sum compensation instead of reinstatement, taking into accoun....
Once violation of Sections 25(F), (G) and (H) of the Industrial Disputes Act is established, reinstatement should follow, as per the decision in Gauri Shanker vs. State of Rajasthan.
Illegal termination of short-term daily wager violating Section 25-F ID Act warrants lump-sum compensation, not reinstatement, considering brief service, long delay, superannuation, and no unfair pra....
The judgment emphasizes that relief of reinstatement and grant of backwages may not follow automatically, especially for daily-rated workmen, and the court may opt for lump-sum compensation instead.
Reinstatement for daily wage workers is not automatic and must be assessed on a case-by-case basis, considering service duration and delay in raising disputes.
The court established that reinstatement may not be the automatic consequence of wrongful termination, especially for daily wagers, and awarded monetary compensation in lieu of reinstatement.
A workman terminated through unfair labor practices is entitled to reinstatement, especially when the employer misrepresents the status of operations.
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