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2025 Supreme(Raj) 2681

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR 
ASHOK KUMAR JAIN, J.
Mahaveer Prasad Sharma, S/o. Shri Madan Lal Sharma - Petitioners 
Versus 
President, Gram Seva Sahakari Samiti, Geroli -Respondents 
S.B. Civil Writ Petition No. 17115 of 2022 
Decided On : 27-10-2025

Advocates Appeared:
For the Petitioners: Mr. Raghu Nandan Sharma

Restoration of employment is mandated when termination is found illegal, unless compelling reasons are provided for denial.

Headnote:(A) Industrial Disputes Act - Sections 25F and 25H - Termination found illegal - Labour Court granted compensation instead of reinstatement - Court ruled reinstatement is necessary unless justified otherwise. (Paras 4, 14, 17)

(B) Compensation and back wages - Employer must prove workman was gainfully employed to deny back wages. (Paras 16)

Facts of the case:
The petitioner was terminated from service after more than seven years; his termination was ruled arbitrary and illegal by the Labour Court in 2022. (Paras 2, 3)

Findings of Court:
The Labour Court's award granting compensation was set aside, and reinstatement was ordered due to the termination's illegality as per Section 25F. (Para 17)

Issues: Whether the Labour Court was justified in refusing reinstatement despite ruling the termination as illegal. (Para 8)

Ratio Decidendi: Once termination is found contrary to law, reinstatement is preferred unless clear justifications for denial exist. The Labour Court must consider reinstatement before compensatory alternatives. (Paras 10, 14)

Result: Writ petition allowed; respondent directed to reinstate the petitioner and grant entitlement to wages. (Paragraphs 17, 18)

Table of Content
1. petitioner's requests in the writ petition. (Para 1)
2. background of employment and termination. (Para 2)
3. labour court's decision on termination legality. (Para 3)
4. status of proceedings after filing. (Para 4)
5. arguments for reinstatement and compensation. (Para 5 , 6)
6. issue of reinstatement refusal explored. (Para 8)
7. age and duration of petitioner's service considered. (Para 9)
8. precedents regarding reinstatement and compensation. (Para 10 , 11)
9. availability of position and grounds for reinstatement. (Para 12 , 13)
10. duty of labour court to examine reinstatement grounds. (Para 14)
11. decision to grant relief of reinstatement. (Para 15)
12. provisions regarding backwages responsibilities. (Para 16)
13. final orders and compliance timeline. (Para 17 , 18 , 19)

ORDER :

ASHOK KUMAR JAIN, J.

1. Instant writ petition is preferred by petitioner with following prayer:

“1-Quashed and set aside the award dated 17-08-2022 passed by the learned Labour Court No. 2, Jaipur to the extent of granting lump sum amount 1,25,000/- instead of reinstatement with full back wages continuity. 2-Directed to the respondents to reinstate back the petitioner in service and also paid full back wages from the date of illegal termination to the petitioner with continuity of service and other consequential benefits.

3-Further directed to the respondents, if reinstatement in not possible then appropriate compensation Rs.10,00,000/- be granted to the petitioners in placed of reinstatement.”

2. Brief facts of the case are that the petitioner was appointed on the post of Assistant Manager in the respondent organization in the month of March 2000 on a salary of Rs. 1500 per month. The services of the petitioner continued and his last payout was Rs. 4000 per month. The services of the petitioner were terminated on 19.07.2007. The petitioner raised a dispute before the Labour Department and on 30.11.2010, the dispute was referred by the Labour Department to the Labour Court No. 2, Jaipur.

3. The Labour Court, after considering the evidence and material on record, found that the order of termination dated 18.07.2007 is bad and illegal and not tenable. The Labour Court also held that the respondent employer has not complied with the provisions of Section 25F of the Industrial Disputes Act, but instead of reinstatement, the petitioner was granted compensation of Rs. 1,25,000/- with interest of 9%.

4. After filing of the writ petition by the workman, notice was issued to the respondent, and despite service, no one appeared on behalf of the respondent. Considering that no one has appeared despite service, the matter is posted for final hearing.

5. Learned Counsel for the petitioner, while placing reliance upon the judgment in the case of Armed Forces Ex- Officers Multi Services Co-operative Society v. Rashtriya Mazdoor Sangh (INTUC) reported as (2022) 7 Supreme 124, submitted that when the termination was found illegal and contrary to the provisions of law, then the duty lies upon the Labour Court to examine whether reinstatement is possible or not. He further submitted that the Labour Court, without considering the legal position, has drawn a conclusion that reinstatement is not possible. He further submitted that the post is still lying vacant and the petitioner raised the dispute soon after his termination from the post. He also submitted that the petitioner has already rendered four years of service in the respondent organization and without any compensatory payment, the respondent terminated the services of the petitioner.

6. He also referred to the judgment in the case of Amit Kumar Dubey v. MPPKVV Co. Ltd. and Another , Civil Appeal No…./2025 arising out of SLP (Civil) No. 20902/2024, order dated 29.01.2025, and submitted that when the termination is found illegal, particularly in violation of Section 25F of the Industrial Disputes Act, then the Court is duty-bound to award compensation at the rate of Rs. 1.5 lakhs per year. He also submitted t

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