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

2018 Supreme(Mad) 560

IN THE HIGH COURT OF JUDICATURE AT MADRAS
V. PARTHIBAN, J.
The Senior Manager (P), Union Bank of India, Chennai - Petitioner
Versus
The Presiding Officer, The Central Government Industrial, Chennai & Another - Respondent
W.P. No. 4268 of 2012
Decided On : 28-02-2018

Advocates Appeared:
For the Petitioner:Anand for M/s. T.S. Gopalan & Co., Advocates.
For the Respondents:K.M. Ramesh, Advocate.

In cases of termination of daily wage employees in violation of Section 25(F) of the Industrial Disputes Act, automatic reinstatement is not justified, and compensation in lieu of reinstatement may be more appropriate.

Headnote:

Industrial Disputes Act - Termination of Part-time Daily Wager - Section 25(F) - 1947 Act

Fact of the Case:

The petitioner bank terminated the employment of the second respondent, a part-time daily wager, without complying with the mandatory provision of Section 25(F) of the Industrial Disputes Act, 1947. The second respondent raised an industrial dispute, and the Industrial Tribunal ordered reinstatement with back wages and continuity of service.

Finding of the Court:

The Court found that the termination of the second respondent's employment was in violation of Section 25(F) of the Act, rendering it illegal and unjust. The Court modified the award of the Industrial Tribunal, directing the petitioner bank to pay a lump sum compensation of Rs.2 lakhs to the second respondent in lieu of reinstatement, along with 12% interest from the date of the award till the date of payment. The Court also directed the petitioner bank to implement the order within eight weeks.

Issues: The issues revolved around the termination of the second respondent's employment, compliance with Section 25(F) of the Industrial Disputes Act, and the appropriate remedy for the violation.

Ratio Decidendi: The Court held that in cases of termination of daily wage employees in violation of Section 25(F) of the Act, automatic reinstatement is not justified. The Court referred to various decisions of the Supreme Court, emphasizing that compensation in lieu of reinstatement may be more appropriate in such cases. The Court also considered the practical difficulties in reinstating the employee after a long period and the subsequent regular recruitment by the petitioner bank.

Final Decision: The Court modified the award of the Industrial Tribunal, directing the petitioner bank to pay a lump sum compensation of Rs.2 lakhs to the second respondent in lieu of reinstatement, along with 12% interest from the date of the award till the date of payment. The Court also directed the petitioner bank to implement the order within eight weeks.

JUDGMENT :

1. The petitioner has approached this Court, seeking the following relief:

To issue Writ of Certiorari, to call for the records of the first respondent in I.D.No.119 of 2003 and quash its award dated 15.11.2011.

2. The second respondent employee joined the petitioner bank as Casual sub-staff on daily wage basis on 30.10.1998. Initially, she was paid Rs.50/- per day which was subsequently increased to Rs.60/- which was the last drawn wages. The service of the second respondent was utilized by the petitioner bank at their Besant Nagar Branch both as Sweeper and Scavenger on part time basis. According to the petitioner, her services were continued from 30.10.1998 onwards till 29.1.2002 with few artificial breaks in service. On 29.1.2012 when the second respondent was terminated by the Branch Manager of the petitioner bank on the basis of oral instructions, the bank did not comply with the mandatory provision of Section 25(F) of the Industrial Disputes Act, 1947 (hereinafter referred to 'the Act'). Therefore, the second respondent employee raised an industrial dispute under Section 2(A) of the Act, challenging her termination. The said dispute was referred to before the first respondent Industrial Tribunal-cum-Labour Court, Chennai by the Central Government, Ministry of Labour vide Order dated 13.6.2003. After reference, a claim statement was filed on behalf of the second respondent before the first respondent Tribunal in I.D.No.119 of 2003. In response to the claim statement, the petitioner bank also filed a counter statement.

3. In the proceedings before the first respondent Industrial Tribunal-cum-Labour Court, the employee examined herself as WW1 and gave evidence about nature of work performed by her and the number of days she worked in Besant Nagar Branch of the petitioner bank. On behalf of the petitioner bank, one Management witness (MW.1) was examined. Several documents were marked both on behalf of the employee and the Management.

4. In fact, in the proceedings before the first respondent Tribunal, an order was passed in I.A.No.47 of 2004 in I.D.No.119 of 2003, directing the petitioner bank to produce Muster Roll for the period from 1998 to 2002, during which period, the second respondent was employed. However, in spite of the order, no Muster Roll was produced by the Management. In the above circumstances, the first respondent Tribunal passed an award on 19.12.2005, ordering reinstatement of the second respondent with continuity of service and also with 50% back wages along with other benefits.

5. As against the award, the petitioner bank filed a writ petition in W.P.No.10727 of 2006 before this Court. By order dated 26.4.2001, this Court disposed of the said Writ Petition, by setting aside the award passed by the first respondent Tribunal insofar as it relates to the findings given by the Industrial Tribunal with regard to non-production of relevant records by the petitioner bank and consequent adverse inference drawn against the petitioner bank with regard to number of days worked by the employee concerned. Relevant portion of the order passed by this court as found in paragraph 20, is extracted as under:

"20. It is also noted that even though the relevant documents had been produced by the petitioner Bank, they had not been marked, either by the petitioner Bank or by the second respondent. It is also noted that some of the documents had been verified by the learned counsel for the second respondent, like the consolidated statements and the vouchers for the years 1998, 1999 and 2000. In such circumstances, without going into the other issues raised before this Court, the award of the first respondent Industrial Tribunal-cum-Labour Court, made in I.D.No.119 of 2003, is set aside, only in so far as it relates to the findings given by the first respondent relating to the non-production of the relevant records by the petitioner Bank and the consequent adverse inference drawn by the first respondent, with regard to the




























































Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

AI

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