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2024 Supreme(Guj) 2136

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
VAIBHAVI D. NANAVATI, J.
Ashokkumar Muljibhai Rathod (Deceased) & Ors. – Petitioners
Versus
State Of Gujarat & Ors. – Respondents
R/Special Civil Application No. 14315 Of 2020
Decided On : 30-10-2024

Advocates Appeared:
For the Petitioner: Mr P.C. Chaudhari.
For the Respondents: Ms Suman Motla, AGP, Notice Served.

Continuity of service is established upon reinstatement, and benefits under the Government Resolution cannot be denied based on prior illegal termination.

Headnote:(A) Constitution of India - Articles 14 and 16 - Writ of mandamus - Petitioners sought benefits of Government Resolution dated 17.10.1988 from initial date of joining and completion of service milestones - Court found denial of benefits based on non-completion of 240 days in a year as improper and arbitrary - Court emphasized that continuity of service follows reinstatement as a matter of law. (Paras 10, 11, 12, 19)

(B) Labour Court - Reinstatement - Once reinstated, continuity of service is established, and benefits under the Government Resolution cannot be denied based on prior illegal termination. (Paras 10, 11, 12)

Facts of the case:
Petitioners, having been terminated in 1990, were reinstated in 2015 after a series of legal proceedings, and sought benefits under the Government Resolution dated 17.10.1988, which were denied based on a misinterpretation of service continuity.

Findings of Court:
The court directed the respondent to confer benefits under the Government Resolution dated 17.10.1988, emphasizing the illegality of denying such benefits post-reinstatement.

Issues: The main issues were the legality of denying benefits based on non-completion of 240 days and the interpretation of continuity of service post-reinstatement.

Ratio Decidendi: The court ruled that continuity of service must be recognized upon reinstatement, and benefits under the Government Resolution cannot be denied based on prior illegal termination.

Result: Petition allowed; benefits to be conferred as per the Government Resolution.

JUDGMENT :

(Vaibhavi D. Nanavati, J.)

1. Issue Rule, returnable forthwith. Ms. Suman Motla, learned AGP waives service of notice of rule for and on behalf of the respondents.

2. By way of present petition, the petitioners herein have prayed for the following reliefs:

    “(a) YOUR LORDSHIP be pleased to issue writ of mandamus, or writ of certiorari or any other writ, order or direction, directing that the act of the respondent in not granting the benefits of Resolution dated 17.10.1988 with effect from initial date of joining and on completion of five years, ten years and 15 years from initial date of joining and not granting the benefits of the increment on the said fixation is illegal, improper, arbitrary and contrary to Articles 14 and 16 of the Constitution of India.

    (b) Your Lordships be pleased to direct the respondent to grant the benefits of Resolution dated 17.10.1988 with effect from initial date of joining and on completion of five years, ten years and fifteen years from initial date of joining as also to grant the all the benefits and arrears till the date.

    (c) Your Lordships be further pleased to direct the respondent to pay the amount of difference of arrears as now the Ld. Labour Court has allowed the Reference and granted full Back wages and be further please to direct the respondent to pay 18% interest on belated payment of benefits of arrears under the resolution dated 17.10.1988.

    (d) Pending admission, hearing and final disposal of the present Petition YOUR LORDSHIPS be please to direct the Respondent to start paying the benefits of resolution dated 17.10.1988.

    (f) YOUR LORDSHIPS be pleased to grant such other and further relief as may be deemed fit in the interest of justice.”

3. Heard Mr. P.C. Chaudhary, learned advocate appearing for the petitioners and Ms. Suman Motla, learned AGP appearing for the respondents.

4. The petitioner – Ashokkumar Muljibhai Rathod (deceased) was working with the respondent since 1981 and was terminated from service by oral order dated 07.07.1990. Thereafter, the petitioner raised an industrial dispute being Reference (LCA) No.496/1991. The learned Labour Court, Ahmedabad on 12.01.2006 rejected the said reference on the ground that the petitioner has failed to complete 240 days continuous service within the preceding 12 months. Being aggrieved by the said award, the petitioner preferred Misc. Application No.96/2007 before the Labour Court to establish that the petitioner has already worked for 259.5 days in the preceding 12 months. However, the said application came to be rejected by order dated 13.05.2010.

4.1 Being aggrieved and dissatisfied by both the aforesaid orders, the petitioner preferred Special Civil application No.13519 of 2010. By order dated 17.01.2014, the award passed by the Labour Court in Reference (LCA) No.496/1991 and order passed by the Labour Court in Misc. Application (for review) No.96/2007 were quashed and set aside and the remanded the matter back to the Labour Court to decide afresh. The learned Labour Court by order dated 21.08.2014 directed the respondent herein to reinstate the petitioner on his original post with continuity of service but, without backwages. The petitioner challenged the said order by filing Special Civil Application No.2573 of 2015 wherein, by order dated 01.03.2018, the matter came to be remanded back to the Labour Court to decide the issue of backwages afresh. The Labour Court by award and order dated 24.04.2018 allowed the Reference and directed the respondent to pay 100% backwages to the petitioner. The said award has attained finality. Earlier also, the Labour Court had directed to reinstate the petitioner however, the backwages were not granted. The petitioner was reinstated in service w.e.f. 09.03.2015 and has a service period of more than 39 years.

5. In light of the aforesaid facts, Mr. P.C. Chaudhary, learned advocate appearing for the petitioners, submitted that the petitioner herein – Ashokkumar Muljibhai Rathod (deceased)

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