IN THE HIGH COURT OF KARNATAKA
Alok Aradhe, S.Vishwajith Shetty, JJ.
Chief Executive Officer – Appellant
Versus
S. Krishnaiah – Respondent
W.A. No. 6501 of 2013 (L-Res)
Decided On : 02-01-2023
Industrial Disputes Act - Violation of Sec. 25F - Sec. 25F of the Industrial Disputes Act, 1947 - Summary of Acts and Sections: The court discussed the violation of Sec. 25F of the Industrial Disputes Act, 1947, which pertains to the conditions for retrenchment of workmen. The court also referred to circulars and orders issued by the Zilla Panchayath, Mysore regarding the appointment and removal of daily wagers. The court's decision was influenced by the interpretation of Sec. 25F and the evidence presented regarding the continuous service of the employee.
Fact of the Case:
The deceased employee was employed on a daily wage basis as a cook and his services were dispensed with in violation of Sec. 25F of the Industrial Disputes Act, 1947. The dispute was referred for adjudication, and the labour court directed reinstatement of the employee along with backwages. The employer challenged the award, leading to a series of legal proceedings.
Finding of the Court:
The court found that the employee had worked continuously for a period of 240 days in a calendar year and that his services were dispensed with in violation of the Industrial Disputes Act. The court upheld the direction for reinstatement but modified the award to grant compensation in lieu of reinstatement and backwages due to the employee's demise during the appeal.
Issues: The issues included the continuous service of the employee, violation of Sec. 25F of the Industrial Disputes Act, and the appropriate relief to be granted in light of the employee's demise during the appeal.
Ratio Decidendi: The court held that the employee had worked continuously for the required period and that his services were dispensed with in violation of the Industrial Disputes Act. The court also determined that the relief of reinstatement with backwages was not automatic and modified the award to grant compensation in lieu of reinstatement due to the employee's demise.
Final Decision: The court modified the judgment of the learned Single Judge, enhancing the compensation to Rs.2.00 Lakhs payable by the employer within two months from the date of receipt of the order.
JUDGMENT/ORDER
ALOK ARADHE, J. - W.A.No.6501/2013 has been filed by the Chief Executive Officer, Zilla Panchayat, Mysore (hereinafter referred to as 'the employer' for short), whereas, W.A.No.6509/2013 was filed by employee being aggrieved by the order dtd. 8/10/2013 passed in W.P.No.12389/2009. On account of commonality of issues, both the appeals are heard together and are being decided by this common judgment.
2. Facts giving rise to filing of these appeals in nutshell are that the deceased S.Krishnaiah (hereinafter referred to as the employee for short) was employed on a daily wage basis as a cook in boys College Hostel, Hunsur for a period from 1990 to 1996. However, his services were dispensed with in violation of Sec. 25(F) of the Industrial Disputes Act, 1947. At the instance of the employee, the dispute was referred for adjudication on 17/3/1998 to the labour court. The employee filed a claim statement and examined himself. The employer despite notice did not appear before the labour court. The labour court by an award dtd. 28/2/2003 directed reinstatement of the employee along with 50% backwages from 2/5/1998. The aforesaid award passed by the labour court was assailed by the employer in a writ petition viz., W.P.No.13747/2007. A bench of this court by an order dtd. 22/1/2008 remitted the matter to the labour court. Thereafter, the employer adduced evidence. The labour court by an award dtd. 5/9/2008 directed the employer to reinstate the services of the employee along with 50% backwages. The said award passed by the labour court was again challenged in a writ petition before the learned Single Judge. The learned Single Judge by an order dtd. 8/10/2013 modified the award and directed the employer to pay a sum of Rs.1.00 Lakh to the employee as compensation in lieu of reinstatement and backwages within a period of two months along with interest at the rate of 9% per annum till payment. Being aggrieved by the aforesaid order passed by the learned Single Judge, the employer has preferred W.A.No.6501/2013, whereas, the employee has filed W.A.No.6509/2013.
3. Learned counsel for the appellant submitted that the learned Single Judge ought to have appreciated that there was no evidence that the employee had worked continuously for a period of 240 days in a calendar year and therefore, the question of violation of Sec. 25F of the Industrial Disputes Act, 1947 did not arise for consideration. On the other hand, learned counsel for the respondent has pointed out that during the pendency of this appeal, the workman has expired on 5/9/2020. It is further submitted that the labour court had passed a well reasoned award on the basis of meticulous appreciation of the evidence on record and the same should not have been interfered with by the learned Single Judge in exercise of supervisory jurisdiction. It is further submitted that the that the amount of compensation awarded by the labour court is inordinately low.
4. We have considered the submissions made on both sides and have perused the record. The employee in the proceedings before the labour court had produced certain documents. From the document Ex.W1 produced by the employee, it is evident that the employee had worked continuously for a period of 240 days in a calendar year. The labour court has also referred to the circular Ex.W14 issued by Zilla Panchayath, Mysore stating that the daily wagers appointed after 2/8/1994 on a weekly basis or a monthly basis should not be removed from service. Ex.P15 and Ex.P16 which are appointed after 1/7/1994 should not be dispensed with.
The labour court has also referred to the order of the Zilla Panchayath, Mysore dtd. 17/3/2001. On the basis of the evidence on record, the labour court has recorded a finding that the employee was employed as a cook in Government College Hostel with effect from 1/4/1990 and had completed 240 days of continuous service in a calendar year. It was further held that the services were dispensed with in violati
In illegal termination cases involving daily-wage workers, reinstatement is not automatic; compensation and circumstances of employment should be evaluated.
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.
The main legal point established in the judgment is that the termination of services was illegal and unjustified, and the principles of 'last come, first go' were not followed. The court also emphasi....
Labour Law - Reinstatement in services – It is trite law that when termination is found to be illegal because of non-payment of retrenchment compensation and notice pay as mandatorily required under ....
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.
The main legal point established in the judgment is that in cases of illegal termination, reinstatement with backwages is the appropriate relief, considering the sustained unemployment of the employe....
The relief of reinstatement with back wages is not automatic, and the court has discretion to determine an apposite relief in cases of illegal termination.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.