Reinstatement following illegal termination does not guarantee back wages; compensation may be awarded based on service duration and other considerations.

ORDER :

Shree Chandrashekhar, J.

The Management of Jamshedpur Workers College Employees Credit Co-operative Society Limited has challenged the writ Court’s decision whereby award dated 28th April 2010 passed in Reference Case No. 16 of 2002 has been affirmed.

2. In Reference Case No. 16 of 2002, the Labour Court at Jamshedpur held that the order of termination of the workman from service was illegal and, accordingly, directed his reinstatement in service with 50% back wages from 11th January 2001 with all consequential benefits.

3. The workman raised a dispute to the order of termination dated 11th January 2001 issued by the Management of Jamshedpur Workers College Employees Credit Co-operative Society Limited (in short, the Management) which was referred for adjudication by the appropriate Government vide notification dated 14th December 2002 in the following terms:

“Whether the dismissal of service of Jitendra Kumar Tiwari, Clerk-cum-Accountant, the workman, Jamshedpur Workers College Employees Credit Co-operative Society Ltd., Mango, Jamshedpur is legal and justified? If not, what relief he is entitled to?”

4. The workman who joined under the Management on 28th April 1987 was confirmed on the post of Accountant-cum-Office Assistant w.e.f 17th April 1990 and the order of his confirmation in service was approved by the Assistant Registrar by an order contained in Letter No. 938 dated 31st December 1994. Before the Tribunal, the workman examined himself and tendered evidence in support of the stand taken by him that the order of termination dated 11th January 2001 was issued in breach of the rules of natural justice. He further set up a claim that even the retrenchment compensation under section 25-F of the Industrial Disputes Act was not paid to him and that he never indulged himself in any misconduct or misappropriation of money. The workman produced documentary evidence such as office order dated 31st December 1994 vide Exhibit-W, letter dated 9th March 1998 vide Exhibit-W/1, inquiry report dated 2nd November 2001 vide Exhibit-W/2 and letter dated 27th October 2001 vide Exhibit-W/3.

5. On the other hand, the Management took a position that the performance and conduct of the workman were not satisfactory and his service was dispensed with pursuant to a decision taken in the Annual General Meeting held on 10th January 2001 and retrenchment benefit was offered to him which he refused to accept. The Management produced certain documents such as Original Cheque No. 87731 dated 11th January 2001 vide Exhibit-M/1 and letter regarding termination dues dated 11th January 2001 vide Exhibit-M/2, to demonstrate that retrenchment compensation in terms of the provisions under section 25-F of the Industrial Disputes Act was calculated and offered to the workman through the aforementioned Cheque No. 87731 dated 11th January 2001. The Management also laid in evidence attested copy of dispatch register vide Exhibit-M/4, passbook of Jamshedpur Workers College Co-operative College Mango Jamshedpur vide Exhibit-M/5, attested copy of cash account for the month vide Exhibit-M/6 and Bye-laws of the Workers College Employees Credit Co-operative Society Ltd., Jamshedpur vide Exhibit-M/7.

6. The Labour Court held that the termination order dated 11th January 2001 was illegal for the reason that the Management could not establish any misconduct on the part of the workman. The Labour Court further took note of the inquiry report vide Exhibit-W/2 and held that an inquiry was conducted without affording an opportunity to the workman to defend himself.

7. The Presiding Officer of the Labour Court at Jamshedpur answered the reference