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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
M.K.THAKKER
Sagar Balubhai Hirpara – Appellant
Versus
IIFL Finance Ltd. – Respondent
| Table of Content |
|---|
| 1. facts of employee's termination and legal proceedings. (Para 1 , 2 , 3) |
| 2. arguments regarding procedural fairness and compensation. (Para 5 , 6) |
| 3. observations on loss of confidence and importance of inquiry. (Para 7 , 8 , 11 , 12) |
| 4. legal principles related to termination and loss of confidence. (Para 9 , 10) |
| 5. final ruling on dismissal of petitions. (Para 13) |
JUDGMENT :
M. K. THAKKER, J.
1.Since the issue raised in the these petitions are similar, they are being decided by a common judgment. The facts of Special Civil Application No.16483 of 2024 are taken for the purpose of adjudication.
2. The present petition is filed challenging the award dated 19.07.2024 passed by the learned Labour Court in Reference Case No. 326 of 2023, whereby the employer has been directed to pay an amount of Rs.1,25,000/- towards full and final settlement of the dispute. Special Civil Application No. 16483 of 2024 has been filed by the workman seeking enhancement of the said amount, whereas Special Civil Application No. 4007 of 2025 has been filed by the employer for setting aside the award of compensation.
3. Gist of the Case:
3.1. The employee was appointed as a Branch Manager in the Sal
Loss of confidence by the employer justifies termination without inquiry; however, failure to comply with natural justice principles warrants a compensatory award.
The Labour Court cannot interfere with the punishment order if the departmental inquiry is fair and proper.
Termination based on loss of confidence requires substantial evidence and a fair inquiry process; failure to provide either renders the dismissal unlawful.
An employee's dismissal is invalid if not approved under Section 33(2)(b) of the Industrial Disputes Act, entitling them to reinstatement and benefits.
The termination of the workman was deemed unjustified and punitive, leading to an increase in compensation from Rs.2,00,000 to Rs.4,00,000 based on the nature of his duties and the stigma attached to....
The court reinforced that adherence to natural justice is essential in domestic enquiries, and failure to comply can invalidate disciplinary actions.
The court emphasized that an employee must establish their status as a 'workman' under the Industrial Disputes Act, and failure to provide cogent evidence can justify dismissal without a departmental....
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