2024 Supreme(Guj) 651
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
BIREN VAISHNAV, PRANAV TRIVEDI, JJ.
Bhikhabhai Fatabhai Solanki - Appellant
Versus
Executive Engineer, Narmada Project Canal System & Anr. – Respondents
R/Letters Patent Appeal No. 908 Of 2023 In R/Special Civil Application No. 21754 Of 2017 With R/Letters Patent Appeal No. 909 Of 2023 In R/Special Civil Application No. 21753 Of 2017 With R/Letters Patent Appeal No. 910 Of 2023 In R/Special Civil Application No. 21750 Of 2017 With R/Letters Patent Appeal No. 911 Of 2023 In R/Special Civil Application No. 21749 Of 2017 With R/Letters Patent Appeal No. 912 Of 2023 In R/Special Civil Application No. 21751 Of 2017 With R/Letters Patent Appeal No. 913 Of 2023 In R/Special Civil Application No. 21752 Of 2017 With R/Letters Patent Appeal No. 914 Of 2023 In R/Special Civil Application No. 21747 Of 2017 With R/Letters Patent Appeal No. 915 Of 2023 In R/Special Civil Application No. 21748 Of 2017 With R/Letters Patent Appeal No. 916 Of 2023 In R/Special Civil Application No. 21746 Of 2017 With R/Letters Patent Appeal No. 917 Of 2023 In R/Special Civil Application No. 21758 Of 2017 With R/Letters Patent Appeal No. 918 Of 2023 In R/Special Civil Application No. 21755 Of 2017 With R/Letters Patent Appeal No. 919 Of 2023 In R/Special Civil Application No. 21756 Of 2017
Decided On : 18-04-2024
For the Appellant : Mr. Aakash Modi for Mr. Prabhakar Upadyay.
For the Respondents: Mr. Parth H. Bhatt, Rule Served.
The court established that back wages and continuity of service are not automatically granted upon finding an illegal termination, allowing for monetary compensation instead based on relevant factors.
Headnote:(A) Industrial Disputes Act - Section 25F - Termination of services - Appellants challenged the common judgment of the Single Judge dismissing petitions and confirming the labour court's award providing lump sum compensation instead of back wages - Court reaffirms that relief by way of reinstatement with back wages is not automatic, even if termination is found to be illegal (Paras 3, 8.1).
(B) Employment termination - Principles guiding compensation - Court observed that factors such as the nature of employment, duration of service, and method of appointment are relevant to determine entitlement of continuity of service and back wages (Paras 8.2 and 8.4).
Facts of the case:
The deceased workman employed as 'Watchman' since 1984 was terminated in 1999 without following procedural safeguards, leading to the dispute. Petitioners sought reinstatement and back wages.
Findings of Court:
Termination was illegal, but the court determined lump sum compensation was appropriate, reflecting the workman's years of service and circumstances of the case.
Issues: Whether lump sum compensation could replace back wages and continuity of service for the families of deceased employees.
Ratio Decidendi: The court ruled that lump sum compensation is a valid remedy when reinstatement is impractical, thus supporting the shift towards compensation over reinstatement in labor disputes.
Result: Appeals partly allowed, with compensation enhanced and payable to appellants.
| Table of Content |
|---|
| 1. challenge to earlier labor court's award (Para 1 , 2) |
| 2. details of the deceased workman's employment and termination (Para 3) |
| 3. arguments for and against compensation as back wages (Para 4 , 5 , 6) |
| 4. court's assessment of compensation vs. reinstatement principles (Para 7 , 8 , 9) |
| 5. determination of compensation amount (Para 10 , 11) |
| 6. final order to enhance compensation (Para 12 , 13) |
ORDER :
(Pranav Trivedi, J.)
1. The present Letters Patent Appeals under clause 15 of the Letters Patent assails the correctness and validity of the common judgment and order of the learned Single Judge passed in group of matters dated 05.04.2018. Since the issue involved in all the appeals is common, we took up all the Letters Patent Appeals together for adjudication. For considering the issue involved, the factual matrix of Letters Patent Appeal No. 916 of 2023 in Special Civil Application No. 21746 of 2017 is discussed
2. The prayer as prayed in the petition, preferred by the appellants – original petitioners was to issue direction to quash and set aside the award dated 30.09.2015 passed by the labour court, Nadiad in Reference (LCN) No. 17 of 2003, below Exhibit-36. It was also further prayed to direct the respondents to pay full back wages to the petitioners till the date of death of the concerned workman as if he was continuously in service. The learned Single Judge after considering the arguments made on behalf of the respective parties, dismissed the petitions confirming the award passed by the labour court and directed that the amount which was required to be paid to the respective petitioners may be paid within a reasonable period preferably within a a period of three months. Such order passed by the learned Single Judge is challenged in the present appeal.
3. The factual matrix leading to filing of the petition is that the deceased workman was working as a ‘Watchman’ since 01.01.1984. The services of the workman concerned came to be terminated by the respondents with effect from 14.10.1999. It was the case of the petitioner that while terminating the service, the principles enunciated under the provisions of Section 25F of the Industrial Disputes Act, (hereinafter referred to as the “Act”) had not taken place. Therefore, the grievance and dispute was raised by the petitioner – deceased workman, which culminated into Reference (LCN) No. 17 of 2023. Pursuant to the statement of claim being filed, written statement was filed. The learned Presiding Officer, Labour Court, Nadiad after granting an opportunity to both the sides to adduce evidence and after following due procedure of law disposed of the reference by giving lump sum compensation instead of granting relief of reinstatement and back wages. Further direction was also given to pay such lump sum compensation within a period of 60 days from the publication of the award, failing which, it will carry interest @ 9% per annum. The said award was challenged before the learned Single Judge by filing writ petition, which was dismissed with an observation that the award passed by the labour court was just and proper and the lump sum compensation awarded by the labour court was the proper relief for the family of the deceased workman, instead of back wages and continuity in service. The said directions of the learned Single Judge are assailed in the appeal. All the appeals have similar background and only the number of years of service vary. All the workmen have passed away and the legal heirs of the deceased workmen have prayed for back wages and continuity.
4. We have heard learned advocate Mr. Aakash Modi for Mr. Prabhakar Upadhyay, learned advocate for the appellants and Mr. Parth Bhatt, learned advocate appearing for the respondents.
5. It has been submitted by learned advocate Mr. Modi that the services of the deceased workmen were orally terminated without following due procedure as contemplated under the provisions of Section 25F of the Act. Therefore, the appellants were