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2026 Supreme(Del) 279

IN THE HIGH COURT OF DELHI AT NEW DELHI
SHAIL JAIN, J.
 
Ashok Hotel (A Unit of ITDC) New Delhi – Petitioner 
Versus
Mukesh Kumar – Respondent
W.P.(C) 6765 of 2004, CM APPL. 42096 of 2016
Decided On : 04-02-2026
 

Advocates Appeared:
For the Petitioner:Mr. Ravi Sikri, Sr. Advocate with Mr. Deepak Yadav, Mr.Arun Sankal and Mr. Nishant Goyal, Advocates
For the Respondent:Mr. Vivek Kumar Tandon, Ms. Laxmi Gupta, Ms. Pooja Giri and Ms. Ritu Rajput, Advocates

In illegal termination cases involving daily-wage workers, reinstatement is not automatic; compensation and circumstances of employment should be evaluated.

Headnote:(A) Articles 226 and 227 of the Constitution of India; Industrial Disputes Act, 1947 - Section 25F - Termination of workman’s services was deemed illegal due to non-compliance with mandatory provisions - Direction for reinstatement with full back wages was set aside, and compensation determined based on prior payments received under Section 17B of the Act. (Paras 1, 19, 31)

(B) Labour Law - The Labour Court's findings must be upheld unless they suffer from perversity or patent illegality - It must be noted that a mere procedural violation does not mandate reinstatement for daily-wage workers; compensation may suffice. (Paras 22, 23)

Facts of the case:
The Respondent/workman alleged illegal termination of his services without notice or retrenchment compensation after more than 240 days of continuous duty as a Cook while management contended he was employed as a Helper only. (Paras 3, 4)

Findings of Court:
The Labour Court found that termination was illegal as the management failed to comply with Section 25F’s requirements. (Paras 6, 20)

Issues: Whether the termination was illegal and if reinstatement with back wages was justified given the nature of employment and lapse of time since termination. (Paras 21, 31)

Ratio Decidendi: The Court held that, in cases of illegal termination of daily-wage workers, reinstatement is not a guaranteed remedy; financial compensation must be considered. (Paras 22, 29)

Result: The writ petition is allowed and the direction for reinstatement is modified to acknowledge prior payments as final settlement.

Table of Content
1. nature of employment and grounds for termination (Para 1 , 2 , 3 , 4)
2. petitioner’s arguments against reinstatement (Para 8 , 9 , 10)
3. support for the labour court's award by respondent (Para 11 , 12)
4. scope of interference by the court (Para 14 , 15 , 16)
5. application of section 25f and its implications (Para 18 , 19)
6. conditions for reinstatement are not automatic (Para 22 , 23 , 24)
7. supreme court's interpretation of reinstatement conditions (Para 25 , 26)
8. factors affecting justice in termination cases (Para 27 , 28 , 29 , 30)
9. final decision on compensation and reinstatement (Para 31 , 32)

JUDGMENT :

SHAIL JAIN, J.

1. The present writ petition under Articles 226 and 227 of the Constitution of India has been filed by the Petitioner/management assailing the Award dated 01.07.2003 passed by the learned Presiding Officer, Labour Court, Delhi in I.D. No. 266/96, whereby the Labour Court held the termination of the Respondent/workman to be illegal for non-compliance of Section 25F of the Industrial Disputes Act, 1947 (hereinafter referred as ‘the Act’) and directed his reinstatement with full back wages.

2. The brief facts of the case are that the Respondent/workman, Sh. Mukesh Kumar, raised an industrial dispute alleging illegal termination of his services by the Petitioner/management. The appropriate Government, being satisfied that an industrial dispute existed between the parties, made a reference for adjudication under Sections 10 (1)(a) and 12(5) of the Act, vide Order No. F.24(2436)/96-Lab./48069-73 dated 30.10.1996, in the following terms:

“Whether the services of Sh. Mukesh Kumar have been terminated illegally and/or unjustifiably by the management and if so, to what relief is he entitled and what directions are necessary in this respect?”

3. Before the Labour Court, the case of Respondent/Workman was that he had been working with the Petitioner as a Cook on daily-wage basis from 09.11.1989 to 17.12.1990. He claimed that he had undergone apprenticeship training for three years at the Ashok Training Centre in the trade of Cook (General), that he possessed the requisite qualification, and that he had served the management diligently without any complaint. According to him, despite repeated requests for absorption as a Cook, his services were abruptly terminated on 18.12.1990 without issuance of any notice or payment of retrenchment compensation, in violation of Section 25F of the Act. He further claimed that he remained unemployed since the date of termination and prayed for reinstatement with full back wages.

4. The Petitioner/management filed a written statement raising a preliminary objection that no employer-employee relationship existed in the manner claimed by the Respondent. On merits, it was stated that the Respondent was never appointed as a Cook and that he did not possess the prescribed qualification or experience required under the ITDC Recruitment, Promotion and Seniority Rules, 2010 for the post of Cook. The management asserted that the Respondent was engaged only as a Helper on daily-wage basis during the period 1989-1990, depending upon exigencies of work, and that there was no sanctioned vacancy or regular post against which he could claim absorption.

5. Both parties led their respective evidence. Thereafter, arguments were heard and the proceedings culminated in the Award dated 01.07.2003 passed by the learned Labour Court. The Labour Court came to the conclusion that Respondent had remained in continuous service for more than 240 days and that his services had been terminated without compliance with Section 25F of the Act. The findings of the Labour Court were recorded in the following terms:

“The workman has placed on record the documents which certify that he is a qualified cook. The management has categorically admitted in the written statement that workman remained engaged as Helper on daily wager during the period 1989-90 thus the management has admitted that the workman perform

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