IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Biren Vaishnav, J.
Chief Executive & Others – Petitioners
Versus
Vanjibhai Laljibhai Chaudhary - Respondent
Special Civil Application No. 10361 of 2008
Decided On : 10-08-2022
Industrial Disputes Act, 1947 – Section 25(F) – Retrenchment – Petitioner - Rural Support Programme (India) through Chief Executive has filed this petition challenging award of labour Court in Reference (L.C.B. No.41 of 1998, by which, Labour Court directed that respondent be reinstated in service with continuity and with 15% back wages – Held, In facts and for reasons discussed hereinabove, termination of service of respondent is neither retrenchment nor by way of punishment – There is no evidence or material on record suggesting that period of probation was extended by petitioner with an ulterior motive or with an intention to deny to respondent benefits of permanency in service – In absence of any submissions on issue and in peculiar facts and circumstances, respondent shall not be required to refund any amount which might have been paid under earlier interim orders of this Court granting additional benefit of wages at current rates – Rule is made absolute accordingly with no order as to costs – Petition allowed.
JUDGMENT :
1. Heard learned advocates for the respective parties. Perused the record.
2. The petitioner - Aga Khan Rural Support Programme (India) through Chief Executive has filed this petition challenging the award of the labour Court dated 30.6.2008 in Reference (L.C.B. No.41 of 1998, by which, the Labour Court directed that the respondent be reinstated in service with continuity and with 15% back wages. The case of the respondent - workman before the labour Court was, as stated in the Statement of Claim at Exh.7 that he was working as a Community Organizer cum Trainee. That he was appointed in December, 1994 on probation for a period of one year. That his services were terminated with effect from 30.12.1995 and, therefore, that termination amounted to retrenchment carried out in violation of the provisions of Section 25(F) of the Industrial Disputes Act. The petitioner apart from taking the objection as to the respondent being a workman and that the institution was a Trust and not "Industry" within the meaning of the definition of "Industry" under Section 2(j) of the Act also contended that the termination was not retrenchment and in fact it was putting an end to service during the course of probation. The labour Court, by the award under challenge not agreeing with the submission of the learned advocate for the employer opined that there was violation of the provisions of Section 25(F) of the ID Act and, therefore, ordered reinstatement.
3. Mr. Yogen N. Pandya, learned counsel for the petitioner would submit that reading the order of appointment and the subsequent extensions made from time to time would indicate that the appointment was purely on a probation. Before the expiry of the period of probation, a month before, on 30.11.1995, the Trust issued notice to the petitioner specifically stating that this communication be treated as a notice for one month for relieving the respondent with effect from 30.12.1995. That, according to Mr. Pandya, termination of service because of non-extension of probation would not be retrenchment. He would rely on a decision of this Court in the case of Gujarat Cancer and Research Institute v. Sanjay Chandrakant Vyas reported in 2001(3) GLH 732. Reliance was also placed on a decision of this Court in the case of Saurashtra University v. Shambhubhai Hirjibhai Padalia reported in 2006(1) GLH 443.
4. Mr. Harshad K. Patel, learned counsel for the respondent workman would submit that if the condition of the appointment order is read, it is specifically stated that the respondent may be continued in service for a period of over two years. That being so termination prior thereto, was in violation of the conditions of the appointment order. Though the period of probation was extended from time to time, such extensions and the subsequent termination was nothing, but unfair labour practice and therefore, no fault can be found with the award of the labour Court awarding reinstatement.
5. Considering the submissions made by the learned advocates for the respective parties, it is evident that the respondent was appointed as Community Organizer with the petitioner vide order dated 12.12.1994. The terms of the appointment clearly indicated that the respondent was appointed on probation for a period of one year which can be shortened. The appointment order clearly stated that the initial probation was upto 30.9.1995. On record of the petition are subsequent orders extending the period of probation by an order of 25.9.1995 upto 31.12.1995. These orders specifically stated that the extension of probation is subject to satisfactory work. By an order of 30.11.1995 finally having found the performance of the respondent employee not being satisfactory in accordance with the terms of appointment, one month's notice was given. Dues were paid and the services of the respondent were put to an end on the expiry of the probation period.
6. Though Mr. Patel has supported the award of the Labour Court by filing an affidavit
Non-renewal of contract does not amount to retrenchment under Section 2(oo)(bb) of the I.D. Act.
Termination of a workman on a contractual basis may not constitute retrenchment if the employment is of a permanent nature, and unfair labor practices may warrant compensation instead of reinstatemen....
The central legal point established in the judgment is the interpretation and application of the definition of 'retrenchment' under Section 2(oo)(bb) of the Industrial Disputes Act in determining the....
The court held that the termination of the workman was illegal as it violated mandatory retrenchment procedures, entitling him to reinstatement with full back wages.
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 based on a preliminary inquiry without a formal inquiry is punitive and invalid under the Industrial Disputes Act.
Termination of contractual employment does not equate to retrenchment under Section 2(oo)(bb) of the Industrial Disputes Act, 1947, limiting the right to claim reinstatement.
In cases of wrongful termination, reinstatement with continuity of service and backwages is the normal rule, and the employer should not be relieved of the burden to pay the employee's dues.
Reinstatement following illegal termination does not guarantee back wages; compensation may be awarded based on service duration and other considerations.
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