IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
A.S. Supehia, Gita Gopi, JJ.
Executive Engineer – Appellant
Versus
Sunil S Mandaliya – Respondent
R/Letters Patent Appeal No. 195 of 2025 In R/Special Civil Application No. 6936 of 2010 With Civil Application (For Stay) No. 1 of 2023
Decided On : 04-02-2025
(A) Industrial Disputes Act, 1947 - Sections 25F, 25G, and 25H - Termination of service - The Labour Court found the termination of the workman illegal due to non-compliance with statutory provisions, directing reinstatement with back wages, later altered by the Single Judge to compensation of Rs.3 lacs - Workman accepted the compensation. (Paras 2, 6, 7)
(B) Appeal - Scope of review - The court upheld the findings of the Labour Court regarding the illegality of termination and the appropriateness of compensation, emphasizing the long duration of proceedings and the workman's retirement. (Paras 8, 9)
Facts of the case:
The workman was employed as a daily wager and was orally terminated without notice after nearly 9 years of service. He filed a reference before the Labour Court, which ruled in his favor, leading to the appeal.
Findings of Court:
The termination was illegal, and the compensation of Rs.3 lacs was deemed appropriate given the workman's retirement and the lengthy proceedings.
Issues: The main issues included the legality of the termination and the appropriateness of the compensation awarded instead of reinstatement.
Ratio Decidendi: The court affirmed the Labour Court's findings on the illegality of termination under the Industrial Disputes Act and deemed the compensation appropriate given the workman's retirement status.
Result: Appeal dismissed.
ORDER :
A.S. SUPEHIA, J.
1. ADMIT. Learned advocate Mr. Shukla waives service of notice of admission on behalf of the respondent. With consent of the learned advocates appearing for the respective parties, the present appeal is taken up for final hearing today.
2. The present appeal emanates from the judgment and order passed by the learned Single Judge dated 26.07.2023 passed in the captioned Writ Petition, wherein and whereby the learned Single Judge has partly allowed the Writ Petition challenging the judgment and award passed by the Labour Court, Bhavnagar in Reference (LCB) No.10 of 1992 dated 16.12.2009, by which, the Labour Court, after the remand, has confirmed the earlier award dated 16.04.2005 and directed the present appellant-employer to reinstate the workman on his original post with continuity of service and with 30% back-wages. However, the learned Single Judge has altered the award and instead of reinstatement with 30% back- wages, has granted compensation of Rs.3 lacs in lieu of reinstatement and back-wages. The workman has accepted the judgment of the learned Single Judge and is ready and willing to accept an amount of Rs.3 lacs.
3. Learned advocate Ms. R.V. Acharya has submitted that the impugned judgment and order passed by the learned Single Judge is required to be quashed and set aside since the learned Single Judge has fell in error in confirming the award to the extent of the finding of the Labour Court in favour of the respondent–workman. She has submitted that the learned Single Judge has failed to take into consideration the fact that the respondent was a daily-wager and appointed on fixed pay and there was no issue of conducting the departmental inquiry as held by the Labour Court. It is further submitted that the Labour Court has also fell in error in setting aside the order of termination as the respondent–workman remained absent for a period of two years without any reason. It is also submitted that the Reference was filed in the year 1991 after lapse of almost four years. She has submitted that the award as well as the judgement passed by the learned Single Judge are required to be quashed and set aside.
4. Per contra, learned advocate Mr. Shukla appearing for the respondent–workman has urged that the present appeal may not be entertained and the appellant may be directed to pay an amount of Rs.3 lacs as directed by the learned Single Judge to the respondent–workman. It is submitted that the impugned award as confirmed by the learned Single Judge is not required to be quashed and set aside, as the same is appropriately passed.
5. We have considered the rival submissions advanced by the respective parties. The facts, as recorded by the learned Single Judge, are not in dispute.
“2.1. The respondent workman was serving with the petitioner since last 5 years as daily wager and the petitioner without issuing notice, notice pay or without issuing retrenchment allowance, terminated the services of the respondent orally on 1/2/1988.
2.2. The respondent workman thereafter filed Reference (LCB) No.10 of 1992 before the Labour Court, Bhavnagar. Considering the oral as well as documentary evidence and hearing the parties, the Labour Court, Bhavnagar passed Judgement and Award dated 16/4/2005 directing the petitioner to reinstate the respondent on his original post with continuity of service and with 30% back wages.
2.3. Against the aforesaid Judgement and Award, the petitioner challenged the said Award by preferring Special Civil Application No.14766 of 2005 and the co-ordinate Bench of this Court, vide order dated 28/9/2005 set aside the Award dated 16/4/2005 and remanded the proceedings for fresh consideration after giving both the sides an opportunity to lead further evidence.
2.4. On remand, the Labour Court, Bhavnagar passed Judgement and Award dated 16/12/2009 confirming the earlier Award dated 16/4/2005 and directing the petitioner employer to reinstate the respondent workman on his original post with continui
Termination of service without compliance with statutory provisions is illegal; compensation awarded in lieu of reinstatement is appropriate considering the workman's retirement.
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 is that continuous work for 240 days entitles a worker to protection under Section 25(F) of the Industrial Disputes Act, but reinstatement may not be the appropriate ....
A workman terminated through unfair labor practices is entitled to reinstatement, especially when the employer misrepresents the status of operations.
The court established that reinstatement may not be the automatic consequence of wrongful termination, especially for daily wagers, and awarded monetary compensation in lieu of reinstatement.
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