IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
A.J. DESAI, MAUNA M. BHATT, JJ.
Indian Rayon Industries Ltd. - Appellant
Versus
Dipusinh Laxmanbhai Zala - Respondent
R/Letters Patent Appeal No. 1223 of 2022 In R/Special Civil Application No. 106 of 2018 With Civil Application (For Stay) No. 1 of 2022 With R/Letters Patent Appeal No. 1224 of 2022 In Special Civil Application No. 117 of 2018 With Civil Application (For Stay) No. 1 of 2022
Decided On : 11-10-2022
Industrial Disputes Act - Termination of Workmen - Sections 25G, 25H, 25F - The court dismissed the appeals challenging the judgment and award directing the reinstatement of workmen without back-wages. The court found that the workmen were illegally terminated and that the employer violated Sections 25G and 25H of the Industrial Disputes Act. The court also considered the principles established by the Supreme Court in previous judgments and held that the workmen were entitled to reinstatement.
Fact of the Case:
The appellant, a company engaged in the manufacture of viscose filament yarn, terminated the services of workmen without following due process. The workmen raised references, which were allowed on the ground of breach of Sections 25G and 25H of the Industrial Disputes Act. The appellant challenged the decision, but the appeals were dismissed.
Finding of the Court:
The court found that the workmen were illegally terminated and that the employer violated Sections 25G and 25H of the Industrial Disputes Act. The court also considered the principles established by the Supreme Court in previous judgments and held that the workmen were entitled to reinstatement.
Issues: The issues involved the legality of the termination of workmen and the violation of Sections 25G and 25H of the Industrial Disputes Act.
Ratio Decidendi: The court relied on the evidence presented and the provisions of the Industrial Disputes Act to determine the illegality of the termination and the violation of Sections 25G and 25H, leading to the decision of reinstatement of the workmen.
Final Decision: The court dismissed the appeals and directed the appellant to comply with the award for reinstatement passed by the Labour Court within four weeks.
ORDER :
A.J. Desai, J.
1. By way of present appeals under Clause 15 of the Letters Patent, the appellant herein – original petitioner has challenged an oral order dated 04.04.2022 passed by the learned Single Judge dismissing the captioned writ petitions filed by the present appellant challenging the judgment and award dated 11.04.2017 by which the learned Labour Court, Junagadh directed the appellant herein to reinstate the workmen – respondents herein without back-wages.
2. The short facts emerging from the record of the case are as follows:-
2.1 That the appellant, which is a company registered under the provisions of the Companies Act, 1956 and is engaged in the business / manufacture of viscose filament yarn, appointed the respondents – workmen during 1995 to 2000 as temporary employee, however without following due process, services of respondents – workmen were terminated in the year 2001. Therefore, references were raised by the workmen which were allowed on the ground that there is a breach of sections 25G and 25H of the Industrial Disputes Act, 1947.
2.2 The said decision of the learned Labour Court was challenged by the appellant herein by way of filing captioned writ petitions, which came to be dismissed by the impugned oral order dated 04.04.2022.
Hence, present Letters Patent Appeals.
3. Learned advocate Ms. Khushbu Chhaya appearing for the appellant would submit that the learned Labour Court as well as the learned Single Judge committed error in entertaining the case of the workmen since the reference was raised after a period of 4 to 5 years. Learned advocate Ms. Chhaya would further submit that the services of the workmen came to be terminated in the year 2001 i.e. before 21 years and therefore, case of lump sum compensation ought to have been considered. She, therefore, would submit that present appeals be allowed.
4. On the other hand, learned advocate Mr. T.R. Mishra appearing for the respondents – workmen has vehemently opposed the present appeals and has supported the order passed by the learned Labour Court as well as the impugned order passed by the learned Single Judge. He would submit that the learned Single Judge, after considering the case in detail and relying upon the findings of the learned Labour Court, has rightly come to the conclusion that the services of the workmen were illegally terminated. He would submit that the workmen are not at fault since the case which was filed at the instance of the appellant in the year 2006 came to be finally disposed of by the learned Labour Court only in the year 2017. He would submit that this cannot be the ground for granting lump sum compensation to the workmen. In support of his submission, learned advocate Mr. Mishra has relied upon a recent decision dated 23.09.2022 of the Hon’ble Supreme Court in the case of Jeetubha Khansangji Jadeja vs. Kutchh District Panchayat rendered in Civil Appeal No.6890/2022 and has requested to dismiss the present appeals.
5. We have heard learned advocates appearing for the respective parties and perused the order passed by the learned Labour Court as well as the impugned order passed by the learned Single Judge. Learned Single Judge after considering the record of the case has observed in paragraph Nos.7 to 14 as under :
The main legal point established in the judgment is that the termination of workmen must comply with the provisions of the Industrial Disputes Act, and violations of Sections 25G and 25H can lead to ....
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.
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....
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.
The main legal point established in the judgment is the onus on the workman to establish completion of 240 days in a year and the principles for awarding reinstatement and backwages.
The main legal point established in the judgment is that in cases of illegal termination, reinstatement with backwages is the appropriate relief, considering the sustained unemployment of the employe....
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