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2025 Supreme(Guj) 1643

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
M.K. THAKKER, J.
Total Solutions - Appellant 
Versus
Jitendra Rameshchandra Vyas and Another - Respondent
Special Civil Application Nos. 4872, 5047, 7808, 7809, 7814, 7815, 7819, 7883 of 2025
Decided On : 20-06-2025

Advocates:
Advocate Appeared:
For the Appellant : I.G. Joshi

The court affirmed that a party cannot disown its advocate's negligence, holding that the actions of an appointed advocate bind the client, reinforcing accountability in legal proceedings.

Headnote:(A) Constitution of India - Articles 14, 19(1)(g) - Labour Law - Challenge to ex-parte award in reference proceedings, alleging illegal termination and seeking reinstatement with back wages. Petitioner argued absence of substantial evidence from the respondent to support claims, asserting no master-servant relationship and questioning legality of award. (Paras 3, 5, 8, 10)

(B) Jurisdiction of Labour Court - Importance of competent representation and adherence to procedural norms; Agency principles limit party's ability to disown actions of appointed advocates. (Paras 9, 10)

(C) Cost Implications - Court discretion to dismiss petitions upon findings of negligence and lack of diligence. (Paras 10, 11)

Facts of the case:
The petitioner establishment provides investigation solutions for insurance companies, engaging freelancers on a case-to-case basis. The respondent claimed illegal termination under labour statutes, resulting in an ex-parte award for reinstatement and back wages. Upon non-appearance of the petitioner, the initial award was restored and challenged subsequently.

Findings of Court:
The court upheld that the respondent had established a master-servant relationship with the petitioner based on provided evidence, dismissing the petition on grounds of negligence by the petitioner and lack of cooperation in proceedings.

Issues: The legality of the termination, the respondent's status as a workman, and the appropriateness of the award of back wages.

Ratio Decidendi: The court ruled that the petitioner, having failed to diligently participate in proceedings, cannot seek relief due to negligence attributed to their legal representation. It emphasized the principle that the actions of an advocate are binding on the party.

Result: Petitions dismissed with costs imposed.

Table of Content
1. common issues across multiple applications. (Para 1 , 2)
2. background of labor dispute regarding termination. (Para 3)
3. challenges against the labor court's decision. (Para 4 , 5)
4. evidence and relationship between parties. (Para 6 , 7)
5. implications of legal representation and diligence. (Para 8 , 9 , 10)
6. conditions for remanding and imposing costs. (Para 11)
7. final dismissal of petitions with cost. (Para 12 , 13)

JUDGMENT :

M.K. THAKKER, J.

1. Since the issue raised in the all these petitions are similar, they are being decided by a common judgment. Facts of Special Civil Application No.7819 of 2025 is taken for consideration of the disposal of these petitions.

2. The present petition is filed under Article 226 read with Article 14 and 19 (1)(g) of the Constitution of India thereby, challenging the order passed by the learned labour court, Ahmedabad dated 01.10.2024 in Reference T (L.C.A.) No.452 of 2011.

3. It is the case of the present petitioner that the petitioner establishment is engaged in the business of providing investigation solutions for MACP and other Miscellaneous claims of General Insurance Companies. While discharging obligation towards aforesaid Insurance Companies, the petitioner establishment used to and continues to engage service of freelance individuals from available talent tool, on need and case to case basis and the payment is also made on case to case basis. The respondent who is also one of such individual who used to be engaged by the petitioner establishment on task basis, approached the learned labour court through Union claiming the breach of section 25(F), 25(G) and 25(H) of the Act which culminated in the dispute being Reference T (L.C.A.) No.452 of 2011. The said reference was heard ex-parte and award was passed on 17.05.2014 whereby, directions were issued upon the petitioner to reinstate the respondent workman with 25% back wages alongwith continuity of service. As the same was an ex- parte award, therefore, application was filed under Rule 26 A of the Industrial Disputes (Gujarat) Rules, 1966 seeking restoration of reference by setting aside the ex- parte award. The said application was allowed on 30.09.2015 and the reference was restored on a condition to pay the cost of Rs.7,500/-. Petitioner thereafter, appeared and filed a written statement below Exh.19 on 20.07.2017 and has also filed the reply to the production application which was filed by the respondent and was allowed vide order dated 14.03.2019. However, thereafter, the petitioner disappeared from the proceedings and again the award was passed on 01.10.2024 directing the present petitioner to reinstate the respondent with 25% back wages which is subject matter of challenge before this Court.

4. Heard learned advocate Mr.I.G.Joshi for the petitioner.

5. Learned advocate Mr.Joshi submits that the respondent individual has not produced any single document to substantiate the claim made in the statement of claim. It is submitted by the learned advocate Mr.Joshi submits that though respondent is not working with the petitioner Company for more than 240 days and has not discharged any obligation under section 25(B) of the ID Act, learned court has committed error in holding illegal termination under section 25(F) of the ID Act. It is submitted by the learned advocate Mr.Joshi submits that respondent individual was working on commission basis and the Company is still ready and willing to take back the respondent individual on commission basis, however, learned labour court has committed an error in awarding the back wages at the rate of 25%. Learned advocate Mr.Joshi submits due to an inadvertent mistake on the part of the advocate, the evidence could not be lead before the learned labour court, however, reasonable opportunity is required to be granted in favour of the petitioner by imposing the cost and by remanding back the reference to the learned labour court. Learned advocate Mr.Joshi submits that in absence of t

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