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2001 Supreme(Raj) 1470

RAJASTHAN HIGH COURT
Rajesh Balia, J.
Ajay - Appellant
Versus
State of Rajasthan and others - Respondent
S.B. Civil Writ Petition No. 372 of 1997.
Decided On : 5-03-2001

The main legal point established in the judgment is the obligation of the appropriate government to implement court awards under Section 33-C of the Industrial Disputes Act and the legal consequences of retrenchment under Section 25-F, including the right to reinstatement with full back wages and other benefits.

Headnote:

retrenchment - Industrial Disputes Act - Section 25-F - 33-C - The court discussed the provisions of Section 25-F of the Industrial Disputes Act, 1947, which requires compensation for retrenchment and notice to be served on the appropriate authority. The court also highlighted the obligation of the appropriate government to take action for the implementation of an award under Section 33-C of the Industrial Disputes Act. The judgment emphasized the legal consequences of retrenchment and the rights of the petitioner under the award, including reinstatement with full back wages and other benefits.

Fact of the Case:

The petitioner was denied the fruits of successful litigation for illegal retrenchment and was made to forgo backwages for immediate reinstatement. The petitioner's services were terminated, and despite a court award for reinstatement with backwages, the petitioner faced further termination and non-payment of wages.

Finding of the Court:

The court found that the direction to terminate the petitioner's services and the subsequent termination were invalid. The respondents were directed to treat the petitioner in continuous service with all consequential benefits. The court also held that the petitioner's case for regularization should be considered, and the respondents were liable for entire backwages with interest if the exercise was not carried out within a specified period.

Issues: The issues involved the validity of the termination of the petitioner's services, the obligation of the appropriate government to implement the court award, and the petitioner's right to continuous service and backwages.

Ratio Decidendi: The court held that the direction to terminate the petitioner's services and the subsequent termination were invalid. It emphasized the petitioner's right to continuous service and backwages under the court award. The court also ruled that the petitioner's case for regularization should be considered, and the respondents were liable for entire backwages with interest if the exercise was not carried out within a specified period.

Final Decision: The petition was allowed, and the direction of the State Govt. and the termination of the petitioner's services were quashed. The respondents were directed to treat the petitioner in continuous service with all consequential benefits. The petitioner's case for regularization was to be considered, and the respondents were liable for entire backwages with interest if the exercise was not carried out within a specified period. The petitioner was awarded costs of the petition from the respondents.

JUDGMENT

1. - This is a petition by a person who has been denied fruits of successful litigation fought for illegal retrenchment and perhaps is made to pay the penalty for agreeing to forgo the backwages and demanding current wages to secure his bread.

2. The petitioner was appointed as Sub Nakedar by the respondent No. 3 Municipal Corporation, Jodhpur on 6.8.85 and his services were terminated on 16.5.86. An industrial dispute raised against the termination was referred to labour Court, Jodhpur in 1991. The labour Court gave its award on 24th Sept., 1994 finding the termination of the petitioner to be invalid. It ordered reinstatement of the petitioner with continuity of service and also awarded backwages w.e.f. 11th Dec., 1991, the date on which reference was made, but denied backwages prior to that date. In pursuance of that award, the petitioner presented himself for being taken on duty before the Administrator. Municipal Board, Jodhpur on 30th Sept., 1994 but reinstatement was avoided on some ground or other. He again made representation. Ultimately, by his application dated 28.12.94 he agreed for forgoing the backwages for securing immediate reinstatement, the course as had been adopted by the Municipal Board in respect of other workers whose termination of service have been found to be invalid in the like manner. On furnishing the undertaking for forgoing the backwages, he was offered appointment vide order dated 13th Jan. 1995 (Annex. 5). Notwithstanding this appointment dated 13th Jan., 1995, no payment of wages was made to the petitioner in pursuance thereof also, which led to filing of writ petition No. 2740/96. No sooner the service of the said writ petition was affected on the respondents calling upon them to show cause, the respondents issued a direction on 29th Nov., 1996 vide Annex. 8 to retrench all the three persons named therein who were earlier found to have been retrenched in violation of the provisions of Section 25-F of the Industrial Disputes Act, 1947. The order speaks that because of non compliance of Section 25-F, a loss has been caused to the Corporation for which disciplinary proceedings shall be taken against those who had resorted to retrenchment without compliance of Section 25-F of the Industrial Disputes Act. It is irony of circumstances that, as will be seen presently, this order dated 29.11.96 itself violates not only the directions issued by the Govt. but in avoidance of effect of a binding decision of a Court for the implementation of which the obligation under the statute has been placed on the State Govt. It needs no argument that for implementation of an award Sec 33-C of the Industrial Disputes Act obligates the appropriate Govt. to take action for such implementation when a complaint is lodged. It is unfortunate that instead of lending any assistance in implementing the award, ignoring the effect of direction, such an order has been issued to deny the legitimate consequence of the award which had been accepted. In fact the order admits that retrenchment that has been made subject matter of industrial dispute was invalid for breach of Section 25-F of the Industrial Disputes Act, 1947 and ordinary consequence of which in law is well settled by Apex Court to be reinstatement with full back wages and other consequential benefits.

3. In pursuance of this direction, the Municipal Corporation in due obedience, issued a notice for terminating service of the petitioner on 19th Dec., 1996 with immediate effect which was termed as a notice envisaged under Section 25-F of the Industrial Disputes Act in lieu of one months notice which carried with it the wages from 13th Jan., 1995 to 20th Dec., 1996, which had remained unpaid since appointment, one month's salary in lieu of notice under Section 25-F and retrenchment compensation for two years @ 15 days wages for each year of service by considering the period of employment to be only from 13.1.95 to 20.12.96 for each completed year of service since 1










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