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2023 Supreme(Del) 3838

IN THE HIGH COURT OF DELHI AT NEW DELHI
Satish Chandra Sharma, Sanjeev Narula, JJ.
Rahul Sharma – Appellant
Versus
South Delhi Municipal Corporation – Respondent
LPA 572 of 2018, LPA 176 of 2019 & LPA 248 of 2019
Decided On : 18-08-2023

Advocates appeared:
Mr. Anuj Aggarwal and Ms. Shreya, Advocates, for the Appellant in LPA 572 of 2018, LPA 176 of 2019 & LPA 248 of 2019.
Mr. Arun Birbal and Mr. Sanjay Singh, Advocates, for the Respondent in LPA 572 of 2018, LPA 176 of 2019 & LPA 248 of 2019.
Mr. Satyakam, ASC for GNCTD in LPA 572 of 2018.

Headnote:

Compensation - Industrial Disputes Act, 1947 - Section 25F, 25G, 25H, 25N - The court upheld the Awards passed by the Tribunal granting lump-sum compensation to the Appellants along with interest and costs. The court found that the termination of services was in violation of Section 25F of the ID Act, but there was no violation of Section 25G and 25H. The court justified the grant of lump-sum compensation instead of reinstatement based on the judgments of the Hon'ble Supreme Court and the peculiar facts and circumstances of the case.

Fact of the Case:

The Appellants were appointed as daily wagers by the Municipal Corporation of Delhi (MCD) to digitize records. Their services were terminated after the expiry of the contractual period. The Appellants claimed reinstatement and back wages under the Industrial Disputes Act, 1947.

Finding of the Court:

The court upheld the Awards passed by the Tribunal, finding the termination in violation of Section 25F of the ID Act, but no violation of Section 25G and 25H. The court justified the grant of lump-sum compensation instead of reinstatement based on the judgments of the Hon'ble Supreme Court and the peculiar facts and circumstances of the case.

Issues: Violation of Section 25F, 25G, 25H of the ID Act, entitlement to reinstatement and back wages, and the grant of lump-sum compensation.

Ratio Decidendi: The court held that the termination was in violation of Section 25F of the ID Act, but there was no violation of Section 25G and 25H. The court justified the grant of lump-sum compensation instead of reinstatement based on the judgments of the Hon'ble Supreme Court and the peculiar facts and circumstances of the case.

Final Decision: The court dismissed the appeals, upholding the grant of lump-sum compensation to the Appellants instead of reinstatement.

JUDGMENT

Satish Chandra Sharma, C.J. The aforesaid three Letters Patent Appeals (LPAs) are arising out of a common judgment dated 27.06.2018 (the "Impugned Order") passed by the learned Single Judge in W.P.(C.) No.7309/2014 titled Rahul Sharma Vs. North Delhi Municipal Corporation & Others; W.P.(C.) No. 7311/2014 titled Shankar Prasad Arya Vs. North Delhi Municipal Corporation & Others; and W.P.(C.) No. 7312/2014 titled Meenu Rani Vs. North Delhi Municipal Corporation & Others (hereinafter, collectively referred to as the "Writ Petitions")

2. The learned Single Judge - while deciding the Write Petitions upheld the Award(s) passed by the Tribunal wherein the Appellant(s) have been granted a lump-sum compensation to the tune of Indian Rupees One Lakh each along with interest @ 9% per annum and the management i.e. the Municipal Corporation of Delhi (the "MCD") had been saddled with the costs of Indian Rupees Fifty Thousand in each case (the "Awards").

3. The learned Single Judge has decided the Writ Petitions by a common order i.e. the Impugned Order. Therefore, the captioned LPAs are being decided by this common judgment as the facts in the Writ Petitions and LPAs are identical and arose out of the Awards passed in similar facts and circumstances.

4. The facts of the case reveal that the Appellant(s) i.e., Shankar Prasad Arya was appointed on 20.11.200; Rahul Sharma and Meenu Rani were appointed on 29.11.2007. The Appellants continued to serve the North Delhi Municipal Corporation (the "NrDMC") till 31.05.2011 with intermittent breaks.

5. The facts of the case further reveal that by an order dated 20.11.2007, the Additional Deputy Commissioner- Information Technology ("IT") (the "ADC IT") appointed Shankar Prasad Arya as a daily wager by way of a temporary arrangement arisen due to an emergent situation. The order dated 20.11.2007 is reproduced as under:

    "MUNICIPAL CORPORATION OF DELHI

    No. D-338/17/MCD/07

Dated: 20/11/2007

OFFICE ORDER

    The Competent Authority agreed to engage Sh. Shankar Prasad Arya s/o B.R. Arya as Assistant in I.T. Department @ Rs.152.45 per day for a period of 180 days on daily wages. This is purely a temporary engagement arison due in the emergent situation and in this regard Sh. Shankar Prasad Arya will not have any right to seek the appointment on regular basis in M.C.D. The acceptance of the order shall reach to I.T. Deptt. MCD within two days of receipt of the order.

    This issue with the approval of competent authority.

Sd/-

Addl. Deputy

Commissioner

(IT)

    Copy to:

    1. Sh. Shankar Prasad Arya s/o Sh. B.R. Arya

    2. ACA/Central Zone

    3. O/C"

6. Thereafter, the ADC IT by another order dated 29.11.2007, appointed Rahul Sharma and Meenu Rani as a daily wagers under similar circumstances. The said order dated 29.11.2007 is reproduced as under:

"MUNICIPAL CORPORATION OF DELHI DEPARTMENT OF INFORMATION TECHNOLOGY

Ring Road, Lajpat Nagar, New Delhi

    No. D-352/17/MCD/07

Dated: 29/11/2007

OFFICE ORDER

    The Competent Authority agreed to engage the following two persons as Assistants in the I.T. Department @ Rs.152.45p per day, for a period of 180 days on daily wages. This is purely a temporary arrangement arisen due to the emergent situation and in this regard, the following two persons will not have any right toseek the appointment on regular basis in MCD:

    1. Sh. Rahul Sharma s/o. Shri Jagat Narayan Sharma

    2. Km.Meenu Rani d/o. Shri Ashok Kumar

    The acceptance of the order shall reach to the I.T. Department, MCD within two days of receipt of the order.

    This issues with the approval of the competent authority.

Sd/-

29.11.2007

Addl.Dy. Commissioner (I.T.)

29.11.2007

    DISTRIBUTION:

    1. Shri Shri Rahul Sharma s/o. Shri Jagat Narayan Sharma

    2. Km. Meenu Rani d/o. Sh. Ashok Kumar

    3. A.C.A. (Central Zone)

    4. Office Copy."

7. The aforesaid office orders reveal that the Appellants were appointed for a period of 180 days. Moreover, the facts of the case reveal that, the Appellant's services were extended for a period of 89 days from time to time. The last exte

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