IN THE HIGH COURT OF JHARKHAND AT RANCHI
ANUBHA RAWAT CHOUDHARY, J.
Employer in relation to Management of Food Corporation of India, through its Area Manager - Petitioner
Versus
Upendra Kumar & Ors. - Respondents
W.P.(L) No. 7796 of 2012
Decided On : 15-01-2025
(A) Industrial Disputes Act, 1947 - Section 25-F - Award dated 03.07.2012 challenged - Petitioners directed to reinstate respondents with 75% back wages from 11.06.1998 and regularization as watchmen - Management's retrenchment actions deemed illegal and unjustified - Tribunal's findings support reinstatement based on completion of 240 days of service - Court finds management's failure to regularize as per its own circular and denies full back wages. (Paras 1, 9, 19, 30)
(B) Back Wages - Award of back wages is the normal rule upon wrongful termination but may be adjusted based on employment status during the intervening period - Court modifies back wages from 75% to 50% from the date of reference, considering lack of evidence on employment status and age of superannuation. (Paras 20, 31)
(C) Legal Principles - The entitlement to back wages is contingent upon proof of unemployment during the period of retrenchment - Management's failure to adhere to its own policies constitutes discrimination. (Paras 19, 30, 31)
Facts of the case:
The writ petition challenges the Tribunal's award directing reinstatement of workmen retrenched in 1986, citing violations of Section 25-F of the Act and seeking regularization based on a circular from 1987.
Findings of Court:
The Tribunal's award was partially modified, reducing back wages from 75% to 50%, while affirming the illegality of the retrenchment and the right to regularization.
Issues: The main issues were the legality of the retrenchment and the entitlement of the respondents to back wages and regularization.
Ratio Decidendi: The court emphasized that reinstatement with back wages is standard upon wrongful termination, yet the amount may be reduced based on lack of evidence of unemployment.
Result: The petition is disposed of with modification of back wages to 50% from the date of reference.
JUDGMENT :
ANUBHA RAWAT CHOUDHARY, J.
1. This writ petition has been filed challenging the award dated 03.07.2012 (published in the gazette on 19.07.2012) passed by the learned Presiding Officer, Central Government Industrial Tribunal No. 1 at Dhanbad in Reference Case No.21 of 1998 and 31 of 1998 whereby the petitioner has been directed to reinstate the respondents (hereinafter referred to as respondent workmen) with 75% back wages payable from the date of making reference, that is, 11.06.1998. A further direction has been issued to regularize them as watchmen in category-IV post with all consequential benefits within two months from the date of publication of the award. The terms of reference in Reference Case No. 21 of 1998 and in Reference Case No. 31 of 1998 which were decided by the common impugned award dated 03.07.2012 is quoted as under:
Terms of Reference in Reference Case No. 21 of 1998
"Whether the action of the management of Food Corporation of India, Patna in retrenching S/Sri Upendra Kumar and Ramesh Kumar w.e.f. 1.8.86 in contravention of Sec. 25-F of the I.D. Act, 1947 and denying reinstatement with full back wages and regularisation of service as per H.Q. Circular dated 6.5.87 is legal and justified? If not, to what relief are the workmen entitled?"
Terms of Reference in Reference Case No. 31 of 1998
"Whether the action of the management of FCI, Patna in retrenching S/Sh. Manoj Kumar, Saroj Kumar, Akhilesh Kumar, Arun Kumar and Arvind Singh w.e.f. 1.9.1986 in contravention of Section 25-F of I.D. Act, 1947 and denying reinstatement with full back wages and regularisation of services as per H.Q. Circular dated 6.5.1987 is legal and justified? If not, to what relief are the workmen entitled?"
2. Before the Central Government Industrial Tribunal No. 1 at Dhanbad (hereinafter referred to as "the Tribunal"), the petitioner (hereinafter referred to as "the management") produced one witness and proved the documents as Exhibit M-1 to Exhibit M-3 and the respondent workmen produced two witnesses who produced the documents – Exhibit W-1 to Exhibit W-21. Both the references were heard together as similar issues were involved. The learned Tribunal gave its conclusions in paragraph 9 of the award as under:
"9. In the result, I render the following award-
The action of the management of Food Corporation of India, Patna, in retrenching S/Sri Upendra Kumar and Ramesh Kumar of Reference No. 21 of 1998 and S/Sri Manoj Kumar, Saroj Kumar, Akhilesh Kumar, Arun Kumar and Arvind Singh of Reference No. 31 of 1998 w.e.f. 1.8.1986 and 1.9.1986 respectively, in contravention of Sec. 25-F of I.D. Act, 1947 and denying reinstatement with full back wages and regularisation of service as per H.Q. Circular dated 6.5.87 is not legal and justified.
In the circumstances of the case, I hold that the concerned workmen involved in Reference No. 21 of 1986 are entitled to be reinstated in service w.e.f. the date of their retrenchment i.e. 1.8.1986 and the concerned workmen involved in Reference No. 31 of 1986 are entitled to be reinstated in service w.e.f. the date of their retrenchment i.e. 1.9.1986. All the concerned workmen of both the reference cases are also entitled to be regularised as per H.Q. Circular dated 6.5.1987 (Ext. W-4) as Watchmen in Category-IV with 75% back wages from the date of reference i.e. 11.6.1998 and other consequential benefits. The management is directed to implement the award within two months from the date of publication of the award in the Gazette of India."
Arguments of the petitioner (management)
3. The learned counsel for the management has submitted that in this writ petition, common award passed in Reference Case No.21 of 1998 and Reference Case No.31 of 1998, has been challenged.
4. The learned counsel for the management submits that in Reference Case No.21 of 1998 there are two workmen, who are respondent nos.1 and 2, and in the other case, there are five workmen, who are respondent nos.3 to 7. He has also submitted that
Entitlement to back wages is standard upon wrongful termination, subject to proof of unemployment; management's failure to regularize violated its own policies.
Regularization of services – Having allowed workmen to put in regular service to its own benefit for over two decades, management can no longer claim an indefeasible right to continue with and canvas....
There may be cases where termination of a daily-wage worker is found to be illegal on the ground that it was resorted to as unfair labour practice or in violation of the principle of last come first ....
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....
However, wherever it is found that similarly situated workmen are regularized by the employer itself under some scheme or otherwise and the workmen in question who have approached Industrial/Labour C....
Once violation of Sections 25(F), (G) and (H) of the Industrial Disputes Act is established, reinstatement should follow, as per the decision in Gauri Shanker vs. State of Rajasthan.
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