SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2025 Supreme(HP) 1600

IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
G.S. SANDHAWALIA, C.J., JIYA LAL BHARDWAJ, J.
State of H.P. and Another - Appellants 
Versus
Ramesh Kumar and Another – Respondents
LPA No.312 of 2025
Decided On : 28-11-2025

Advocates Appeared:
For the Appellants :Mr. Rakesh Dhaulta, Additional Advocate General.
For the Respondents:Mr. Ravinder Singh Chandel, Advocate, Mr. Bhanu Verma, Advocate.

Illegal termination of short-term daily wager violating Section 25-F ID Act warrants lump-sum compensation, not reinstatement, considering brief service, long delay, superannuation, and no unfair practice.

Headnote:(A) Industrial Disputes Act, 1947 - Sections 25-F, 25-G, 11-A, 17-B, 25-H - Termination of part-time daily wager orally without notice or retrenchment compensation - Illegal and violative of last come first go principle - However, reinstatement not granted where service tenure short (1 year 6 months), dispute raised after 8-year delay, no unfair labour practice, workman aged 50 at claim filing and superannuated by award date, no steps for implementation despite no stay - Lump sum compensation awarded in lieu exercising discretion to mould relief, consistent with Supreme Court precedents for daily wagers. (Paras 12-25)

(B) Relief in wrongful termination of daily wagers - Not automatic reinstatement with back wages; consider length/mode of service, delay, ground of invalidity, workman conduct - Compensation preferable over reinstatement post long gap as no regularization right exists and management can re-terminate with compliance. (Paras 15-19)

Facts of the case:
Part-time beldar engaged on honorarium basis for water supply scheme from November 2006 to April 2008, terminated orally without notice/compensation, juniors retained. Dispute raised after 8 years, referred for adjudication. Labour Court awarded prospective re-engagement without back wages/seniority/continuity. Writ petition dismissed. Appeal contends no direct employment, short service warrants only compensation.

Findings of Court:
Termination illegal for non-compliance of Section 25-F; factual findings on employment affirmed; reinstatement quashed; lump sum Rs.2,25,000 compensation (pro-rata Rs.1.5 lakhs/year plus part-year) in full settlement, payable within 3 months else 6% interest.

Issues: Legality/employer status; justification for reinstatement given short tenure, delay, age; appropriate relief - reinstatement or compensation.

Ratio Decidendi: Uphold illegality finding but deny reinstatement as disproportionate; per Supreme Court, for procedural violation in short-term daily wage cases with delay, compensation meets justice - formula Rs.1.5 lakhs/year pro-rata applied; workman conduct, superannuation key factors.

Result: Appeal partly allowed.

Table of Content
1. oral termination without notice violates section 25-f. (Para 1 , 2 , 3)
2. labour court orders prospective re-engagement despite delay objections. (Para 4 , 5 , 6)
3. short service, delay, age argue against reinstatement. (Para 7 , 8 , 9 , 10)
4. uphold violation finding; deny reinstatement for delay, conduct. (Para 11 , 12 , 13 , 14)
5. daily wagers get compensation, not reinstatement after delay. (Para 15 , 16 , 17 , 18 , 19)
6. pro-rata lump-sum compensation based on service length. (Para 20 , 21 , 22 , 23)
7. quash reinstatement; award rs.2.25 lakhs compensation. (Para 24 , 25)

JUDGMENT :

Jiya Lal Bhardwaj, J.

The challenge in the present appeal is against the judgment dated 21.10.2024 passed in CWP No.6463 of 2021, titled, State of H.P and another vs. Ramesh Kumar and another, whereby the writ petition preferred by the appellants-State has been dismissed and the award dated 23.12.2019, passed by the Himachal Pradesh Industrial Tribunal-cum-Labour Court, Shimla, in Reference No. 46 of 2016, titled, Ramesh Kumar vs. State of H.P. & Ors. has been affirmed.

2. The respondent-workman, as per claim petition filed by him before the Labour Court, was engaged as a Beldar (part-time) by the appellants in the month of November, 2006 for Deola Water Supply Scheme under I&PH Sub-Division, Gumma, Tehsil Sunni, District Shimla, H.P. It has further been averred that he continuously worked in the aforesaid capacity till April, 2008 and thereafter his services were orally terminated by the appellants-State, without issuing any prior notice on him or giving any retrenchment compensation, which action is bad and in violation of Section 25-F of the Industrial Tribunal Act (for short “the I.D Act”). It was further averred that juniors to him were retained by the appellants-State and thus, action on the part of the appellants-State is violative of Section 25-G of the I.D Act.

3. The respondent-workman raised the dispute after eight years of his disengagement. The appropriate Government referred the dispute for adjudication before the Labour Court and following was the reference made:-

"Whether termination of the services of Shri Ramesh Singh s/o Shri Keshav Ram, Village & P.O. Deola, Tehsil Sunni, District Shimla during April 2008 by the Pradhan, Gram Panchyat Deola, Tehsil Sunni, District Shimla, H.P. and the Executive engineer I&PH Division Sunni District Shimla, HP, who was engaged by the Pradhan Gram Panchyat Deola, Tehsil Sunni District Shimla or carrying out the work of distribution of drinking water in the Gram Panchyat Deola and payment of wages were made by the Executive Engineer I&PH Division Sunni, District Shimla HP through the Pradhan Gram Panchyat Deola Tehsil Sunni District Shimla is legal and justified? If not what relief including reinstatement, amount of back- wages, seniority, past service benefits and compensation the above ex-worker is entitled to from the above employers?"

4. The appellants-State filed reply to the claim petition and took preliminary objections regarding maintainability of the claim petition on the plea that the respondent-workman was engaged on honorarium basis by the Pradhan, Gram Panchayat, Deola, who was party respondent No.3. He was not the employees of the appellants- State. It was also specifically pleaded that the claim petition preferred is not maintainable due to delay and laches since the respondent-workman has approached the Hon’ble Court after a gap of eight years.

5. The Labour Court-cum-Industrial Tribunal after completion of the pleadings, framed the issues and after recording the evidence, answered the reference partly in favour of the respondent-workman and against the appellants-State on 23.12.2019. The Labour Court directed the appellants-State to re-engage the respondent-workman forthwith anywhere in I&PH Sub Division Sunni as a Beldar, however, keeping in view the totality of circumstances, more particularly, the delay in espousing his cause, the respondent-workman shall not be e

































Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top