IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
M. K. Thakker, J.
Secretary / General Manager Chavda Vijaysinh Takhatsinh – Petitioner
Versus
Dilipbhai Bhadabhai Chudasama – Respondent
R/Special Civil Application No. 9611 Of 2023 With Civil Application (Direction) No. 1 Of 2024 In R/Special Civil Application No. 9611 Of 2023 With R/Special Civil Application No. 11070 Of 2023
Decided On : 24-12-2024
(A) Industrial Disputes Act, 1947 - Sections 2(j) and 2(s) - Jurisdictional issues regarding workman status - The Labour Court found the employer Trust to be an industry and ruled the resignation of the employee illegal, entitling him to reinstatement without back wages. The decision was challenged by both parties. (Paras 3, 4, 7.6)
(B) Jurisdiction - The Labour Court failed to frame issues on the definition of workman, leading to erroneous conclusions regarding the employee's status. The court emphasized the need for proper adjudication on critical jurisdictional aspects. (Paras 7.1, 7.6)
Facts of the case:
The employee, appointed as Estate Supervisor, resigned via WhatsApp, later attempted to withdraw the resignation. The Labour Court ruled the resignation illegal and directed reinstatement. (Paras 3, 4)
Findings of Court:
The Labour Court's ruling was flawed due to failure to determine the employee's workman status, necessitating remand for proper adjudication. (Paras 7.6, 8)
Issues: The main issues included whether the employer is an industry and whether the employee qualifies as a workman under the Act. (Paras 7, 7.1)
Ratio Decidendi: The court highlighted the necessity for proper issue framing regarding workman status, emphasizing the Labour Court's jurisdictional errors. (Paras 7.6, 8)
Result: The Labour Court's judgment was set aside and the matter was remanded for fresh determination. (Paras 8, 10)
JUDGMENT :
M. K. THAKKER, J.
1. Rule returnable forthwith. Learned advocate for respondent waives service of Rule.
2. The present petition being SCA No.11070/2023 is filed by the workman under Article 226 and 227 of the Constitution of India challenging the judgment and award dated 18.03.2023 passed by the learned Labour Court, Junagadh in Reference (T) No.199 of 2019 qua non granting of back wages and the Special Civil Application No.9611 of 2023 is filed by the employer challenging the same award by which learned Labour Court has directed to reinstate the employee without back wages by holding the termination dated 20.09.2019 being illegal.
3. It was the case before the learned Labour Court that the employee was made permanent on the post of Estate Supervisor from 01.01.1991 and was getting the monthly salary of Rs.38,351/-. Written resignation was given through WhatsApp by the employee on 11.07.2019 without being signed informing his desireness to retire from September, 2019. Thereafter, the said resignation was accepted on 16.07.2019 and he was permitted to retire from 20.09.2019 and it was informed to the employees to collect the amount which is due as per the rules.
3.1. Thereafter, on 20.07.2019 it was informed by the employee to employer that under the force of filing a police complaint, he sent the draft of resignation and thereafter, on inquiring he came into the knowledge that the complaint which was given under money lending dated 01.07.2019 was subsequently withdrawn by the said complaint on 07.07.2019. The said communication was sent through the registered post ad which was received by the employee however, thereafter it was informed to the employee to hand over the charge to the other person and he was paid his leave encashment as well as gratuity amount by way of cheque on 20.09.2019 and amount was transferred in his account. Being aggrieved by the aforesaid action of the employer demand notice was issued by the employee and the dispute was referred on filing the failure report by the appropriate government to the learned Presiding Officer, Junagadh. Learned Labour Court after considering the evidence has framed 3 points for consideration which are as follows:
(II) Whether the action of the respondent accepting the resignation with effect from 20.09.2019 is illegal?
(III) Whether the workman is entitled for reinstatement along with other consequential benefits?
4. At the end learned Labour Court came to the conclusion that the employer-Trust is falling under the definition of ‘industries’ and resignation which was accepted with affect from 20.09.2019 is illegal and therefore, the workman is entitled for reinstatement without back wages. The learned Labour Court allowed the reference partly vide judgement dated 18.03.2023 which has been challenged by the employee and employer by separate petitions and the same is subject matter for consideration before this Court.
5. Heard learned advocate Mr.Vimal Purohit for the petitioner-employer and Mr.Jeet Rajyaguru for the respondent-workman.
5.1. Learned advocate Mr.Vimal Purohit submits that though specific contention was raised with regard to the jurisdictional aspect by the learned Labour Court as the respondent does not fall under the definition of section 2(s) of the Act i.e workman, however, learned Labour Court did not frame any point for consideration and determine the said issue. Learned advocate Mr.Vimal Purohit submits that the employee was appointed as a supervisor and undisputedly, as per his own pleading he was drawing a salary of Rs.38,351/- per month which exceeds the amount of Rs.10,000/-, therefore, does not fall under the definition of workman under section 2(s) of the Act, 1947. Learned advocate Mr.Vimal Purohit submits that learned Labour Court would not have jurisdiction to entertain such reference however, learned Labour Court without adjudicating on the said issued
The Labour Court erred in not adjudicating on the employee's status as a workman, leading to an incorrect ruling on the legality of the resignation and entitlement to reinstatement.
The court ruled that employees in managerial roles and earning above Rs.10,000 do not qualify as 'workmen' under Section 2(s) of the Industrial Disputes Act, reversing the Labour Court's decision.
The definition of 'Industry' includes entities engaging in systematic activities with employer-employee relations, irrespective of the profit motive, as determined under the Industrial Disputes Act.
There may be cases where termination of a daily-wage worker is found to be illegal on the ground that it was resorted to as unfair labour practice or in violation of the principle of last come first ....
The burden of proof regarding the status of an employee as a 'workman' lies with the employee, not the employer, as per the Industrial Disputes Act.
The main legal point established is that the voluntary resignation of the workman led to the denial of relief under the Industrial Disputes Act.
The court emphasized that a workman's classification under the Industrial Disputes Act validates the Labour Court's jurisdiction, and proportionality of punishment must align with inquiry findings.
The definition of 'workman' under the Industrial Disputes Act excludes managerial employees, and the High Court cannot re-evaluate evidence in writ proceedings.
A resignation must be voluntary; prior acceptance is not mandatory for it to take effect, with the defining factor being the nature of the employee's role under the Industrial Disputes Act.
The court established that the classification of an employee as a 'workman' depends on the nature of their duties rather than their job title or designation.
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