IN THE HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT SRINAGAR
RAJNESH OSWAL, MOHAN LAL, JJ.
India Tourism Development Corporation Limited & Anr. - Appellants
Versus
Fayaz Ahmad Sheikh & Ors. - Respondents
LPA No. 163 of 2022
Decided on : 10-03-2023
Industrial Disputes Act, 1947 – Section 25-F, 2-A – Claiming Compensation – Order of retrenchment was illegal and discriminatory – Held, Court would, however, like to add a caveat here – There may be cases where termination of a daily wage worker is found to be illegal on ground it was resorted to as unfair labour practice or in violation of principle of last come first go viz. while retrenching such a worker daily wage juniors to him were retained – There may also be a situation that persons junior to him wee regularized under some policy but concerned workman terminated, terminated worker should not be denied reinstatement unless there are some other weighty reasons for adopting course of grant of compensation instead of reinstatement – Court clarify that in so far as observation of Writ Court pertaining to superannuation of Respondents is concerned, same was pertaining to Respondent Nos.2, 3 and 5, while as relief of reinstatement shall pertain to Respondent Nos. 1 and 4 – Court do not find any reason whatsoever to interfere with Judgment impugned passed by Writ Court – CMs dismissed.
JUDGMENT
Oswal, J.
1. The Respondents, after being retrenched by the Appellant-Corporation under Section 25-F of the Industrial Disputes Act, 1947 (for short ‘the Act of 1947’) on the ground of closure of the establishment, raised a dispute in terms of Section 2-A of the Act of 1947 before the Conciliation Officer (Deputy Labour Commissioner), Kashmir Division. As the conciliation efforts failed, the Conciliation Officer submitted a report to the then State Government (now Union Territory) under the Act of 1947, which resulted into a reference of the Government under SRO 244 dated 26th of July, 2004 to the Industrial Tribunal-cum-Labour Court, J&K, Srinagar (fort short ‘the Tribunal’). The learned Tribunal, after considering the rival contentions of the contesting parties, vide award dated 13th of June, 2016, directed the Appellant-Corporation to reinstate the Respondents with full back wages on revision basis, along with other consequential benefits with 9% interest on full back wages.
2. The Appellant-Corporation assailed the aforesaid award dated 13th of June, 2016 passed by the Tribunal through the medium of a Writ Petition bearing OWP No. 472/2017, wherein the learned Writ Court, vide its Judgment dated 25th of May, 2022, passed the following directions:
ii. The grant of back wages by the Tribunal to the respondents herein and the award of interest thereupon shall stand set aside;
iii. The reinstatement of the respondents herein ordered in terms of the impugned award shall be applicable to respondents 2 and 4 only; and
iv. The Tribunal shall re-visit and reconsider the case of the respondents 1, 3 and 5 afresh for payment of compensation in lieu of the reinstatement besides the grant of retiral benefits, as such, the matter is remanded back to the Tribunal for re-visiting and reconsidering the said issue expeditiously, preferably, within a period of three months from the date copy of this order is made available to the Tribunal.” i. Whether the Judgment is reportable? Yes.
3. The Appellant-Corporation, being aggrieved of the aforesaid Judgment dated 25th of May, 2022, has assailed the same through the medium of this intra Court appeal with respect to Respondent Nos. 2 and 4 only, inter alia, on the ground that the learned Writ Court has wrongly rejected the plea of the Appellants that after accepting the retrenchment amount, the notice amount, gratuity and other terminal dues voluntarily and without any protest, the Respondents could not have raised any dispute about their retrenchment, on the premise that the Appellants had not raised the said plea before the learned Tribunal. It is also stated that the non-compliance of Section 25-F of the Act of 1947 would not result in the issuance of a direction of reinstatement of the retrenched workmen. Further, the Appellants also pleaded that there was no discrimination with the Respondents, as such, in the present facts and circumstances of the case, the Order of retrenchment could not have been upset consequently leading to the re-instatement of the Respondents.
4. Mr Jahangir Iqbal Ganai, the learned Senior Counsel, appearing for the Appellants, submitted that the learned Writ Court has wrongly rejected the contention of the Appellants that the Appellants cannot raise the plea before the Writ Court that the Respondents cannot raise a dispute after having accepted the retrenchment amount and the other terminal benefits on the ground that the said plea was not raised before the Tribunal. The learned Senior Counsel further argued that in case the retrenchment of the workmen is found to be illegal, then the workmen can be suitably compensated instead of ordering reinstatement of the said workmen. Mr Jahangir, in this behalf, placed reliance upon the Judgment passed by the Hon’ble Apex Court in case titled ‘Bharat Sanchar
The court clarified the conditions for granting back wages and reinstatement in cases of retrenchment under the Industrial Dispute Act, emphasizing the need for the employee to prove lack of gainful ....
Statutory compliance under Sections 25(F) and 25(G) of the Industrial Disputes Act is crucial in retrenchment cases for legality, with repercussions for failure to adhere to these provisions.
Labour Courts may award compensation instead of reinstatement under unusual circumstances, adhering to Section 25F of the Industrial Disputes Act.
Relief by way of reinstatement with backwages is not automatic and may be wholly inappropriate in a given fact situation even though the termination of an employee is in contravention of the prescrib....
The main legal point established is that in cases of illegal termination, reinstatement is not automatic and may be replaced by compensation, taking into account the circumstances and the interest of....
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