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2023 Supreme(Del) 5389

IN THE HIGH COURT OF DELHI AT NEW DELHI
Purushaindra Kumar Kaurav, J.
M/s Kamax Corporation Through Its Partner Shri Rajat Aggarwal B-192 Okhla Industrial Area Phase-i New Delhi-110020 - Appellant
Versus
Raj Kishor S/o Sh. Jagdish Prasad Singh - Respondent
W.P.(C) 12642 of 2023
Decided On : 25-09-2023

Advocates appeared:
Mr. M.A. Khan, Advocate, for the Petitioner.
None, for the Respondent.

IMPORTANT POINT
The main legal point established is the applicability of Section 25F & 25G of the Industrial Dispute Act, 1947, in cases of illegal termination, and the trend towards granting compensation in lieu of reinstatement.

Headnote:

Illegal Termination - Labour Dispute - Industrial Dispute Act, 1947, Section 25F & 25G - The court discussed the illegal termination of the respondent-workman's services and the applicability of Section 25F & 25G of the Industrial Dispute Act, 1947. It also referenced several Supreme Court decisions on the relief of reinstatement and back wages, and the trend towards granting compensation in lieu of reinstatement.

Fact of the Case:

The writ petition challenged an award by the Labour Court directing the petitioner-management to pay compensation for the illegal termination of the respondent-workman's services.

Finding of the Court:

The court found that the respondent-workman's services were illegally terminated, and the awarded compensation of Rs.3,00,000 was not excessive or unreasonable.

Issues: The main issue was whether the respondent-workman's services were illegally terminated by the management.

Ratio Decidendi: The court relied on the evidence and provisions of the Industrial Dispute Act, 1947, particularly Section 25F & 25G, and considered the trend towards granting compensation in lieu of reinstatement.

Final Decision: The petition was dismissed, upholding the Labour Court's award of compensation for the illegal termination of the respondent-workman's services.

ORDER

Purushaindra Kumar Kaurav, J. (Oral)

CM APPL 49846/2023 (Exemption)

Allowed, subject to all just exceptions.

The applications stands disposed of.

W.P.(C) 12642/2023 & CM APPL 49845/2023 (Stay)

1. The instant writ petition is directed against the impugned award dated 28.01.2023 passed by the Labour Court, whereby, the claim of the respondent-workman has been allowed to the extent of directing the petitioner-management to pay a sum of Rs.3,00,000/- towards compensation for his illegal termination.

2. Learned counsel appearing on behalf of the petitioner-management submits that the respondent-workman himself had resigned from the services, therefore, there is no question of any illegal termination. He also submits that even in the cross examination of the respondent-workman it has come on record that he was running flour mill (Atta Chakki) at his residence. He, therefore, contends that the awarded compensation for a sum of Rs.3,00,000/- is on the higher side and under the facts of the present case, the respondent-workman is not entitled for any relief.

3. I have considered the submissions made by learned counsel for the petitioner and have perused the record.

4. The facts of the case would show that the respondent-workman was employed by the petitioner-management as an Operator (Fiber Glass) on the wages of Rs.5,250/- per month in the year 1993. It has come on record in the evidence of the petitioner-management itself that the respondent-workman was operating machines in the company. ESI card showing the employment under the petitioner-management was produced on record.

5. In paragraph no.15 of the impugned award, the Labour Court has considered the aspect of illegal termination of the services of respondent-workman and has recorded its conclusion that the services of the respondent-workman was terminated illegally and, therefore, the same was found to be bad in law. Paragraph no.15 of the said decision reads as under:

"15. ISSUE No.3:

Whether the services of the workman have been illegally terminated by the management?"

15.1. Onus to prove this issue was upon the workman. To discharge this onus, the workman testified that upon return from leave taken by him w.e.f. 01.07.2008 to 22.07.2008, he was taken on and allowed to perform his duty on 23.07.2008. But on 24.07.2008, when he demanded his wages for June, 2008, he was physically prevented from performing his duty and his services were illegally terminated in violation of provisions of Industrial Dispute Act. The management took the plea that the workman had voluntarily resigned from his services and took his full and final dues on 30.01.2003 and thereafter never worked for the management. However, as already pointed out, it is admitted by the management, through its partner, before the Labour Inspector, as reflected from Ex. WW1/C as well as during cross examination of the workman, in form of suggestion, that the workman was working with the management even after alleged resignation/settlement on 30.01.2003, though it is claimed that the workman had rejoined as a contractual or casual labour. As already discussed above in issues no.1 and 2, the management failed to substantiate its plea of voluntary resignation or full and final settlement with the workman. Even otherwise, for the sake of argument, if claim of the management regarding voluntary resignation or full and final settlement with the workman and his subsequent rejoining of the services as contract/casual labour were presumed to be true, then also, the management was required to comply with the mandatory provisions of Section 25F & 25G of the I.D. Act, 1947. It was required to give either one month notice or to tender one months notice pay and retrenchment compensation to the workman. It was further required to follow the rule of first come last go. Neither it is the case of the management that statutory requirements as mentioned above were followed nor any evidence was lead in this regard. For this reason, termination of ser

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