IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
SABINA, SATYEN VAIDYA, JJ.
State Bank Of India – Appellant
Versus
Puja Wife Of Shri Makhan Singh – Respondent
Letters Patent Appeal No. 258 of 2012
Decided on : 26-02-2022
Industrial Disputes Act 1947 – Termination of Service - Workman remained in continuous employment - Retrenchment of respondent held bad in law and directing the appellants herein to reinstate the workman with all consequential benefits, has been affirmed – Challenged.
Finding of the Court:
conduct of the bank/management clearly proves its intent to ostensibly employ the workman on casual or temporary basis and to continue her as such for years with the object of depriving her of the status and privilege of permanent workman, which as per Clause-10 of the 5th Schedule of the Act amounts to unfair labour practice – Service rendered by the workman to the bank initially for five years and after passing of the award by the learned Tribunal again for continuous period of more than eleven years, is definitely a circumstance to uphold the order of reinstatement in favour of the workman or otherwise, it will really be harsh upon her to be left on road without any job after a period of 21 years of her initial employment with the bank, especially when she may be at such a stage of life where she may not be able to secure another job and livelihood for her. The relief in terms of monetary compensation may not be appropriate in the given facts of the case.
Result: Appeal dismissed
JUDGMENT :
Heard.
By way of instant Letters Patent Appeal, challenge has been laid to the judgment dated 29.3.2012 passed by the learned Single Judge in CWP No. 663 of 2011, whereby the Award dated 7.9.2010 passed by learned Presiding Officer, Central Government-cum-Industrial Tribunal-I Chandigarh in Case No. ID-3/2007( for short, “Tribunal”) holding the retrenchment of respondent herein to be bad in law and directing the appellants herein to reinstate the workman with all consequential benefits, has been affirmed.
2. Appellants and Respondent herein shall be referred to as the Bank and workman respectively for the sake of convenience.
3. A glance at the factual background of the case reveals that the workman raised an Industrial Dispute under the Industrial Disputes Act 1947 (for short ‘the Act’) against the Bank. It was alleged that workman remained in continuous employment with New Shimla Branch of the Bank w.e.f 9.6.2000 till 29.7.2005, on payment of Rs. 50/- as daily wage.
She was not allowed to work w.e.f. 29.7.2005 and her services were terminated without any prior notice or salary in lieu thereof, therefore, the workman alleged her retrenchment to be in violation of Section 25-F of the Act.
4. On 22.1.2007, appropriate Government referred the dispute, under Section 10 of the Act, to the Tribunal for adjudication in following terms:-
5. The Bank did not specifically deny the averment with respect to engagement of workman in the Bank since 9.6.2000. However, the relationship of employer and employee with the workman was denied. It was stated that the workman was, in fact, employed by a contractor, who was awarded a contract to install, operate and maintain a generator set in the concerned branch of the bank. The said contract was stated to have commenced in August, 2002. It was further maintained by the management that the contractor was to be paid Rs. 8200/- per month by the bank and on the asking of the said contractor, a sum of Rs. 700/- per month was being paid to the workman, who was employed to operate the generator set by the contractor. On one hand, the management had taken a specific stand, as noticed above, on the other, the management simultaneously pleaded that the services of the workman were availed by the branch of the bank as casual labour to perform the work of sweeping and cleaning the branch on few occasions only before commencement of the business hours and she was paid for the same on daily basis as and when, she was engaged as such.
6. Learned Tribunal on the basis of material on record including the evidence led by the parties found the defence raised by the management as fallacious. The workman was held to be in continuous employment of the bank from 9.6.2000 to 29.7.2005. The termination of workman was held to be in violation of Section 25-F of the Act. The management was directed to reinstate the workman with all consequential benefits.
7. Learned Single Judge of this Court, while deciding the challenge raised by the bank to the award passed by the Tribunal, held findings and conclusions recorded by the learned Tribunal to be in accordance with the material on record and thus, affirmed the award impugned by way of CWP No. 663 of 2011.
8. Perusal of the grounds raised by the appellants in the instant Appeal reveal that the judgment passed by the learned Single Judge as well as Award passed by the learned Tribunal have been assailed being not inconformity with the material on record. The impugned judgment passed by the learned Single Judge has been challenged broadly on the ground that the relationship of employer and employee has wrongly been held to exist between the bank and the workman, whereas the workman was proved to be the employee of the contract
Termination of service – Retrenchment – Workman was proved to have worked continuously on daily wage basis for more than five years.
Termination of service of daily wage workers without complying with Section 25F of the Industrial Disputes Act renders it illegal, warranting reinstatement unless compelling reasons justify compensat....
The court upheld the illegal termination of the respondents/workmen and their entitlement to reinstatement with full back wages and other consequential benefits under the Industrial Disputes Act, 194....
there is a breach of Section 25-F of the I.D. Act and as there is a delay of 11 years in preferring the reference, instead of granting reinstatement a lump sum amount as full and final settlement wil....
Reinstatement with back wages is not automatic and may be inappropriate in certain situations, and compensation may be awarded instead.
The judgment emphasizes that relief of reinstatement and grant of backwages may not follow automatically, especially for daily-rated workmen, and the court may opt for lump-sum compensation instead.
In illegal termination cases involving daily-wage workers, reinstatement is not automatic; compensation and circumstances of employment should be evaluated.
The court upheld that an employee's continuous service of over 240 days entitles him to protections under the Industrial Disputes Act, and any termination without adherence to statutory requirements ....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.