IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Biren Vaishnav, J.
Rameshbhai Bhathibhai Pagi – Appellant
Versus
Deputy Executive Engineer – Respondent
Special Civil Application No. 1443 of 2022
Decided On : 05-08-2022
Constitution of India, 1950 - Articles 226, 227, 38, 39(a) (e), 43, 43A - Industrial Disputes Act - Section 25(F) (G) (H), 25B - Rajasthan Industrial Dispute Rules, 1958 - Rules 77, 78 –Compensation - Empowers the High Court to issue, to any person or authority - Provides for the power of superintendence over all Courts and Tribunals throughout the territory by the High Court - State to secure a social order for the promotion of welfare of the people - Participation of workers in management of industries -Whether petitioner workman deserves to be reinstated and also if his termination was bad - On aspect of delay, Labour Court observed that there was a delay of three years in rasing dispute –Held, Court has attained age of superannuation - Court accedes to request of quashing and setting aside order of lump-sum compensation and instead grant reinstatement till date of superannuation with continuity of service – Back wages has been forgone by employee with grant of continuity to employee who has attained age of superannuation – Court shall be paid consequentially retirement benefits on strength of modified award in not later than twelve weeks' time from date of receipt of copy of this order - petitions allowed.
JUDGMENT :
Biren Vaishnav, J.
1. Rule returnable forthwith. With consent of the learned advocates appearing for the respective parties, these matters are taken up for final hearing today.
2. In all these petitions, the awards of the Labour Court in the respective petitions are under challenge by the petitioners, by which, the Labour Court has awarded compensation of Rs. 72,000/- to each of the petitioners rather than reinstatement with backwages as prayed for by the petitioners.
3. For the purposes of facts and arguments, Mr. Dipak Dave for Mr. Hukam B. Sinh, learned counsel for the petitioners, has relied on the facts of Special Civil Application No. 1443 of 2022. The petitioner, Rameshbhai Bhathibhai Pagi, filed a Statement of Claim before the Labour Court, Godhra, at Exh.3. It was his case before the Labour Court that he was engaged by the respondents as a daily wager from 05.03.1985. He was working at the Bhadar Canal Sub-Division. It was his case that during the course of month, he would work for a period ranging from 22 to 25 days, for which, though no appointment orders are issued, attendance sheets were maintained. Their services were terminated without following the procedure under Section 25(F) of the Industrial Disputes Act. They were paid Rs. 50/- per day. Their salaries/wages were paid by drawing vouchers. It was his case that his services were put to an end from August 2010 without following the procedure and without awarding compensation. Violation of Sections 25(G) and 25(H) was also pleaded. The respondent-employer, filed a Written Statement at Exh.5. It was their case that the work at the Bhadar Canal Project was closed that they would not fall within the definition of “Industry” within Section 2(j) of the Industrial Disputes Act. That no attendance sheet or appointment letters needed to be issued to such employees as they were working as daily wagers. The petitioner was examined at Exh.6. In the references which were decided by this Court, namely, Reference No. 85/2013 to 116/2013, at Exh.8, on a demand made by the workmen, attendance records of the last three years were produced by the employer. At that time, the Labour Court was therefore faced with the issue of taking a decision whether the petitioner workman deserves to be reinstated and also if his termination was bad. On the aspect of delay, the Labour Court observed that there was a delay of three years in rasing the dispute.
3.1. On the issue of whether the workman had successfully proved that there was violation of Section 25(F) based on the workman having completed 240 days of service taking into consideration Section 25(B) and whether retrenchment was in accordance with Section 25(F) of the Act, perusal of the award of the Labour Court would indicate that considering the decision of the Hon'ble Supreme Court on the issue of burden of proof, the Labour Court found that it was undisputed that the petitioner had worked for over a period of 240 days in each year of service till the date of termination in the year 2010. The only documents that were produced by the employer was for the period from January 2007 to December 2009.
4. Considering the decision of the Hon'ble Supreme Court in the case of Director, Fisheries Terminal Division vs. Bhikubhai Meghjibhai Chavda, AIR 2010 SC 1236, the Labour Court came to the conclusion that the petitioner had worked for over a period of 240 days and that they were engaged for a particular period; that the work on which they were engaged was discontinued was held to be not proved. In other words, therefore, specifically finding violation of Section 25(F), (G) and (H), the Labour Court awarded compensation of Rs. 72,000/- in each of the references relying on a decision in the case of Gujarat State Civil Supplies Corporation Ltd. vs. Abdul Kadar Ibrahim Bakali, Special Civil Application No. 4643 of 2010 date 25.07.2017. Reliance was also placed on a decision in the case of Gopalbhai Muljibhai Charan vs. Range Forest Office
Once violation of Sections 25(F), (G) and (H) of the Industrial Disputes Act is established, reinstatement should follow, as per the decision in Gauri Shanker vs. State of Rajasthan.
there is a breach of Section 25-F of the I.D. Act and as there is a delay of 11 years in preferring the reference, instead of granting reinstatement a lump sum amount as full and final settlement wil....
The judgment emphasizes that relief of reinstatement and grant of backwages may not follow automatically, especially for daily-rated workmen, and the court may opt for lump-sum compensation instead.
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....
The main legal point established is that in cases of illegal termination and violation of Section 25-F, the court may order reinstatement without backwages, especially for daily wage workers, and con....
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