RAJASTHAN HIGH COURT
Veerendr Singh Siradhana, J.
Executive Engineer, PWD & Anr. - Appellant
Versus
Har Chandi & Anr. - Respondent
S.B. Civil Writ Petition No. 8024 of 2005.
Decided On : 3-11-2015
INDUSTRIAL DISPUTES ACT, 1947 - SECTION 25-F, 25G, 25H - REINSTATEMENT - COMPENSATION - DAILY WAGE WORKER - Reinstatement with full back wages is not automatic in all cases of illegal termination. In the case of daily wage workers, monetary compensation may be more appropriate, especially when the termination was due to a procedural defect and the worker has no right to regularisation.
Fact of the Case:
The respondent-workman was engaged on daily wages basis from 1st January, 1987 to 20th September, 1988, when his services were terminated without notice, notice pay, or retrenchment compensation. The Labour Court found that the termination was illegal and ordered the reinstatement of the workman with continuity of service and 25% back wages.
Finding of the Court:
The High Court held that the Labour Court failed to exercise its judicial discretion appropriately in ordering reinstatement with full back wages. Considering the short duration of the workman's engagement and the fact that the termination was due to a procedural defect, the High Court found that monetary compensation would be more appropriate.
Issues: Whether reinstatement with full back wages is automatic in all cases of illegal termination.
Ratio Decidendi: The High Court relied on the Supreme Court's decision in Bharat Sanchar Nigam Limited v. Bhurumal, which held that reinstatement with full back wages is not automatic in cases of illegal termination, especially when the workman is a daily wage worker and the termination was due to a procedural defect. The High Court also noted that the workman had no right to regularisation, and that reinstatement after a long gap would not serve any purpose.
Final Decision: The High Court partly allowed the writ petition and set aside the Labour Court's award of reinstatement with full back wages. Instead, the High Court directed the State-petitioners to pay compensation of Rs. 75,000/- to the legal heirs of the respondent-workman (deceased).
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U.P. State Brassware Corporation Ltd. v. Uday Narain Pandey (2006) 1 SCC 479
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