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2025 Supreme(HP) 27

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA 
AJAY MOHAN GOEL, J.
Man Singh (deceased) through his Legal Representatives namely Smt. Dev Kanya and Ms. Ritika Thakur - Petitioner
Versus
M/s HFCL Limited - Respondent
CWP No. 3162 of 2023
Decided On : 09-04-2025


Advocates Appeared:
For the Petitioners: Mr. Rahul Mahajan.
For the Respondent: Mr. Vikas Chauhan.

IMPORTANT POINT
An employee's dismissal is invalid without evidence of loss of confidence, and reinstatement is the norm unless proven otherwise.

Headnote:

(A) Industrial Disputes Act, 1947 - Sections 33-A and 33(2)(b) - Dismissal of employee - Labour Court awarded lump sum compensation instead of reinstatement, citing loss of confidence - Court found no evidence of loss of confidence as employer failed to plead it - Court ruled that dismissal was invalid without approval under Section 33(2)(b) - Employee deemed to be in continuous service with all benefits. (Paras 16 , 18 , 28 )

(B) Employment Law - Reinstatement - The principle that an employee cannot be dismissed without just cause and that reinstatement is the norm unless proven otherwise - The Labour Court's findings on loss of confidence were deemed perverse and unsupported by evidence. (Paras 20 , 28 )

Facts of the case:

The petitioner was dismissed from service, and the Labour Court allowed his complaint under Section 33-A but awarded compensation instead of reinstatement, citing loss of confidence. The employer did not challenge the Labour Court's dismissal of its application under Section 33(2)(b). (Paras 3 , 4 , 6 )

Findings of Court:

The Labour Court's decision to award compensation was overturned, and the petitioner was deemed to have continued in service from the date of dismissal, entitled to all benefits. (Paras 28 )

Issues: Whether the Labour Court's award of compensation instead of reinstatement was justified given the lack of evidence for loss of confidence. (Paras 15 , 28 )

Ratio Decidendi: The court emphasized that findings of loss of confidence must be supported by pleadings and evidence; without such, the dismissal is invalid, and the employee is entitled to reinstatement and benefits. (Paras 20 , 28 )

Result: Writ petition allowed, findings on loss of confidence struck down, and petitioner deemed to have continued in service.

JUDGMENT :

Ajay Mohan Goel, J.

CMP No. 310 of 2025

By way of this application, a prayer has been made to bring on record the legal representatives of sole petitioner namely Mr. Man Singh, who have stated to be died on 15.11.2024.

2. As there is no opposition to the application, the same is allowed, as prayed for. Legal representatives mentioned in paragraph No.2 of the application, are impleaded as petitioners No.1(a) & 1(b), in place of Mr. Man Singh. Application stands disposed of.

CWP No. 3162 of 2023

3. By way of this writ petition, the original petitioner, namely Mr. Man Singh, has challenged the award dated 01.11.2022, passed by learned Presiding Judge, Labour Court, Shimla, in application 81 of 2020, titled as Man Singh vs. HFCL Limited, in terms whereof, though the complaint filed by the petitioner under Section 33-A of the Industrial Disputes Act was allowed by the learned Labour Court but by erroneously holding that there was loss of confidence between the employer and the employee, learned Labour Court rather than ordering reinstatement of the petitioner, ordered payment of lump sum compensation of Rs. 5.6 Lac in lieu of reinstatement, back wages and other consequential service benefits.

4. Brief facts necessary of the adjudication of this writ petition are that two References were pending before the learned Labour Court, i.e. Reference No. 138 of 2019 and Reference No. 141 of 2019 when the petitioner was dismissed from service by the respondent on 17.07.2020 vide letter dated 14.07.2020. This was followed by filing of an application under Section 33(2)(B) of the Industrial Disputes Act by the Company before the learned Labour Court on 22.07.2020 seeking ratification of its act of dismissing the services of the petitioner, which as per the Company was done after holding due enquiry.

5. Feeling aggrieved by the order of dismissal of services, the petitioner also preferred an application/complaint under Section 33-A of the Industrial Disputes Act before the learned Labour Court on 12.10.2020 alleging therein that as the employer had changed the service conditions of the petitioner during the pendency of the reference petitions, without adhering to the statutory provisions of the Industrial Disputes Act, the impugned act of the employer was bad.

6. To cut the controversy short, the petition filed by the employer under Section 33(2)(b) of the Industrial Disputes Act was dismissed by learned Labour Court in terms of order Annexure P-6, dated 01.11.2022. While dismissing said application filed by the employer, learned Labour Court held that the Company had miserably failed to prove its case beyond preponderance of probabilities and had failed to justify its act of dismissing the services of the petitioner on the grounds assigned in the application. Learned Labour Court further held that the petitioner was a protected worker and employer was not able to justify the application filed by it under Section 33(2)(b) of the Industrial Disputes Act so as to persuade the Court to grant necessary approval.

7. It is a matter of record that this order has attained finality as the same has not been assailed by the employer.

8. Coming back to the order under challenge, after holding that the complaint filed under Section 33-A of the Industrial Disputes Act by the petitioner was a valid complaint and indeed there was a change in service conditions of the petitioner, firstly by issuing transfer order dated 27.07.2019 and thereafter dismissing him from service on 17.07.2020, as already observed hereinabove, learned Labour Court granted lump sum compensation in favour of the petitioner instead of reinstatement with consequential benefits.

9. Feeling aggrieved, the original petitioner has filed this writ petition.

10. Learned Counsel for the petitioners has vehemently argued that after learned Labour Court came to conclusion that there was an arbitrary change in the service conditions of the petitioner by the employer and further learned Labour Court wa

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