IN THE HIGH COURT OF DELHI AT NEW DELHI
Dinesh Kumar Sharma, J.
Narender Bahadur Singh - Appellant
Versus
Management Of Corporation Bank & Anr. - Respondents
W.P.(C) 2292 of 2015
Decided On : 21-09-2022
Industrial Disputes Act - Termination of Services - Section 25F - Compensation - Ram Singh v. Union of Territory, Chandigarh, 2004 AIR (SC) 969; Hussainbhai v. Alath Factory Thozillai Union & Ors. 1978 AIR (SC) 1410; Sushilaben Indravadan Gandhi & Anr.; The New India Assurance Company LtdSLP (C) No. 1170/2019; Balwant Rai Saluja v. Air India Ltd. AIR 2105 SC 375
Fact of the Case:
The petitioner challenged the termination of his services and sought reinstatement. The respondent bank denied the employer-employee relationship and contended that the petitioner was not entitled to reinstatement.
Finding of the Court:
The court upheld the award of compensation instead of reinstatement, citing recent legal trend and various Supreme Court judgments. It emphasized that reinstatement is not automatic and may be inappropriate in certain situations.
Issues: Termination of services, entitlement to reinstatement, compensation instead of reinstatement
Ratio Decidendi: The court followed the recent legal trend established by the Supreme Court, emphasizing that reinstatement with back wages is not automatic and may be inappropriate in certain situations. It considered the manner and method of appointment, nature of employment, and length of service in awarding compensation.
Final Decision: The court dismissed the writ petition challenging the award of compensation and upheld the decision of the Labour Court.
JUDGMENT
Dinesh Kumar Sharma,J. - Background Facts
1. The present writ petition has been filed challenging the impugned Award dated 05.05.2014 passed in ID No.02/2014 titled Sh. Narender Bahadur Singh Vs Corporation Bank, whereby, the learned CGIT cum Labour Court directed the respondent bank to pay compensation in the sum of Rs. 50,000/- by way of damages to the petitioner/workman.
2. The facts, in brief, are that the petitioner/workman had filed a statement of claim against the respondent bank seeking the relief of reinstatement. The petitioner/workmen had alleged that he was employed by the respondent bank and was placed at Karol Bagh, Delhi branch on the sanctioned post of a Car driver with effect from 01.11.1999. The service of the petitioner/workman was terminated on 13.07.2006 without assigning any reason or cause of action. It was alleged that the respondent bank had neither issued a notice nor complied with the provisions of Section 25F of the Industrial Disputes Act, 1947. The petitioner/workmen also sent a demand notice to the respondent bank which remained un-responded. The contention of the petitioner/workman is that the petitioner/workman along with the other workman had raised a Charter of Demands for the regularisation of their services and the respondent bank got irked by it and terminated their services. It was also pleaded that the petitioner/workman has remained unemployed since the date of his termination and that he did not get any job despite his best efforts.
3. The respondent bank while contesting the claim of the petitioner/workman denied the relationship of master and servant between the parties. The contention of the respondent bank is that personal car drivers are engaged by the executives of the bank in their personal capacity. There is no cadre of a 'personal car driver' in the respondent bank and as per the policy, whenever the eligible officers engage personal drivers, reimbursement is provided to these officers under the head 'allowances' on the basis of the scale set down by respondent bank. It is also contended that the respondent bank is a Nationalised Bank and its appointment are public appointments based on rules and regulations framed by the bank based on Directives of the Central Government. Thus, the service of the petitioner/workman was never under the supervision and direct control of the respondent bank and he cannot be termed as a 'workman' within the meaning of section 2(s) of the Industrial Disputes Act, 1947.
4. On the basis of the pleading of the parties, the learned CGIT framed the following issues:-
'1. Whether the action of the management of Corporation Bank, Arya Samaj Road, Karol Bagh in terminating the services of Sh. Narender Bahadur Singh, Personal Car Driver w.e.f. 13.07.2006 is legal and justified?
If not, to what relief the concerned workman is entitled?
2. Relief '
5. The petitioner/workman in support of his case tendered his affidavit as WW1 and respondent bank produced one Sh. Anjani Kumar, Assistant Manager, Corporation Bank as MW1. Learned CGIT decided the reference in favour of the petitioner/workman and against the respondent bank. Learned CGIT in the impugned Award has inter alia held that reinstatement is not a necessary consequence whenever termination is held illegal. In the instant case, the petitioner/workman was held to be a casual worker and was awarded Rs. 50,000/- as compensation. Being aggrieved of this, the petitioner/workman has filed the present writ petition seeking that the impugned award is either set aside or modified to the extent of granting the Petitioner/workman the relief of full back wages as well as reinstatement to his services on the sanctioned post with the respondent bank with retrospective effect.
Contentions of the petitioner/workman
6. Learned senior counsel for the petitioner has submitted that the Ld. CGIT on one hand took note of the statement of the witness produced by the respondent bank who admitted in his cross-examination that the
BSNL vs. Bhurumal (2014) 7 SCC 177
Delhi Cantonment Board vs. Central Government Industrial Tribunal & Ors. 2006 (88) DRJ 75 DB
GDA v. Ashok Kumar [(2008) 4 SCC 261 : (2008) 1 SCC (L&S) 1016]
Hussainbhai v. Alath Factory Thozillai Union & Ors. 1978 AIR (SC) 1410
Incharge Officer vs. Shankar Shetty: (2010) 9 SCC 126
Jagbir Singh vs. Haryana State Agriculture Marketing Board: (2009) 15 SCC 327
Jaipur Development Authority vs Ram Sahai (2006) 11 SCC 684
Mahboob Deepak vs. Nagar Panchayat
Ram Singh v. Union of Territory, Chandigarh
Senior Superintendent Telegraph (Traffic) v Santosh Kumar Seal
Sita Ram vs. Moti Lal Nehru Farmers Training Institute: (2008) 5 SCC 75
State of Karnataka vs. Uma Devi (2006) 4 SCC 1
Syed Yakoob vs. K.S. Radhakrishnan & Ors.: AIR 1964 SC 477
U.P. State Brassware Corpn. Ltd. v. Uday Narain Pandey [(2006) 1 SCC 479 : 2006 SCC (L&S) 250]
Uttaranchal Forest Development Corpn. v. M.C. Joshi [(2007) 9 SCC 353 : (2007) 2 SCC (L&S) 813]
Reinstatement with back wages is not automatic and may be inappropriate in certain situations, and compensation may be awarded instead.
The court established that compensation can be awarded instead of reinstatement in cases of illegal termination, reflecting a shift in judicial approach under the Industrial Disputes Act.
The main legal point established is that in cases of illegal termination of daily-wage workers, reinstatement is not automatic, and the court may award compensation in lieu of reinstatement based on ....
The court upheld the illegal termination of the respondents/workmen and their entitlement to reinstatement with full back wages and other consequential benefits under the Industrial Disputes Act, 194....
Termination of service of daily wage workers without complying with Section 25F of the Industrial Disputes Act renders it illegal, warranting reinstatement unless compelling reasons justify compensat....
Monetary compensation, not reinstatement, is appropriate for daily wage workers upon finding illegal terminations; reinstatement is not automatic even when procedural violations are confirmed.
Relief by way of reinstatement with backwages is not automatic and may be wholly inappropriate in a given fact situation even though the termination of an employee is in contravention of the prescrib....
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