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2025 Supreme(Mad) 2844

IN THE HIGH COURT OF JUDICATURE AT MADRAS 
A.D. Maria Clete, J.
The Superintending Engineer, Tamil Nadu Electricity Board - Petitioner 
Versus 
T.Babu, S/o. Thirumalaisamy and ors. – Respondent 
W.P.Nos. 12192 of 2020 and 14822 of 2021 and W.M.P. No.14930 of 2020 and W.M.P.Nos.3812, 3817, 3818, 3827, 3828, 3832, 3834, 3836, 3844, 3845 and 3847 of 2021 
Decided On : 20-03-2025

Advocate Appeared:
For the Petitioner:Mr.Anand Gopalan, Advocate, For M/s. T.S.Gopalan and Co., M/s. R.Krishnaswamy, V.Ajoy Khose, V.Porkodi, S.Manogaran and H.Nandhini, Advocates.
For the Respondent:M/s. R.Krishnaswamy, V.Ajoy Khose, V.Porkodi, S.Manogaran and H.Nandhini, Advocates, Mr.Anand Gopalan, Advocate, For M/s. T.S.Gopalan and Co.,

Court upheld the labour court's decision, recognizing the workmen as employees despite the employer's claims of a contract system, while denying back wages due to the workmen's delay in pursuing claims.

Headnote:(A) Industrial Disputes Act, 1947 - Section 2 (oo) - Termination of employment - The labour court set aside the oral terminations of the workmen, ordering reinstatement without continuity of service or back wages due to delayed claims by the workmen, which were found to be valid. (Paras 2, 14, 36)

(B) Employment Relationship - The court confirmed the existence of an employer-employee relationship despite the employer's claim of a contract system, which was deemed sham. (Paras 9, 14, 20)

(C) Delay in Claim - The court acknowledged the delayed approach of the workmen to the Labour Court and denied back wages, viewing this as sufficient consequence for delay. (Paras 23, 37)

Facts of the case:
The petitioner challenged the labour court's award reinstating eleven workmen whose terminations were considered invalid. The claim for continuity of service and back wages was contested due to delay in filing by the workmen.

Findings of Court:
The labour court held that the terminations did not comply with legal requirements; however, due to the delay in assertions, normal relief including back wages was denied.

Issues: Key issues are whether the workmen had an employer-employee relationship, whether the contract system was genuine, and the implications of delay in raising their claims.

Ratio Decidendi: The court ruled that the workmen proved an employer-employee relationship, and the delay justified denial of certain benefits, emphasizing on maintaining fairness in adjudication.

Result: Both writ petitions were dismissed.

Table of Content
1. challenge to the labour court's award on worker's reinstatement. (Para 2 , 3 , 4 , 5 , 6 , 7)
2. framing issues regarding employer-employee relationship and contract legitimacy. (Para 8 , 12 , 14)
3. evidence against the claims of contract work legitimacy. (Para 9 , 10)
4. precedents affecting the resolution of delay and reinstatement. (Para 13 , 28 , 36)
5. delay in filing the claim and implications on the case. (Para 22 , 24 , 26)
6. legal implications of retrenchment under the industrial disputes act and court's rationale. (Para 27)
7. final observations and decisions regarding the claims raised by workmen. (Para 34 , 35)
8. outcome dismissing both writ petitions. (Para 38)

JUDGMENT :

A.D. Maria Clete, J.

Heard.

2.In the first writ petition, the Petitioner, the Superintending Engineer of the Tamil Nadu Electricity Board, Kadamparai Electricity Generation Circle (hereinafter referred to as the "Electricity Board"), challenges a common award issued by the First Additional Labour Court, Coimbatore, on 05.04.2018. The award pertains to 11 industrial disputes raised by 11 respondents (hereinafter referred to as the "workmen"), each of whom had individually approached the labour court. By the impugned award, the labour court set aside the oral terminations of the 11 workmen and directed their reinstatement within one month from the date the award takes effect. However, the labour court declined to grant continuity of service, back wages, or attendant benefits.

3. Aggrieved by the common award, the Electricity Board filed a single writ petition. When the matter was taken up on 08.09.2020, notice was ordered in the writ petition, and private notice was also permitted. In the meantime, upon receiving notice of the writ petition filed by the Electricity Board, the 11 workmen, who were also aggrieved by the same common award dated 05.04.2018, filed a second writ petition challenging the portion of the award that denied them continuity of service, back wages, and other attendant benefits.

4. In the second writ petition, when the matter was taken up on 19.07.2021, it was admitted, and notice was ordered to the respondent Electricity Board. It was further directed that the said writ petition be heard along with the first writ petition filed by the Electricity Board. However, when the matter was subsequently listed on 05.11.2024, it was referred for adjudication before the Lok Adalat scheduled for 14.12.2024. As no settlement was reached in the Lok Adalat, and when the first writ petition filed by the Electricity Board was taken up for final disposal, the second writ petition filed by the workmen was also tagged along. Consequently, a common judgment has been pronounced in both matters.

5. The records reveal that the 11 workmen raised disputes before the Government Labour Officer, Coimbatore, challenging their oral termination on different dates as follows: I.D.No.234/2006 (T. Babu) – 20.07.1998 I.D.No.235/2006 (T. Ravichandran) – 30.10.1998, I.D.No.236/2006 (T. Rajaselvan) – 31.12.1997, I.D.No.237/2006 (P. Suresh) – 30.10.1998, I.D.No.240/2006 (S. Ramesh) – 30.04.1999, I.D.No.243/2006 (K. Parvathi) – 05.03.1998, I.D.No.248/2006 (K. Arumugam) – 31.07.1996, I.D.No.249/2006 (K. Selvaraj) – 31.03.1998, I.D.No.250/2006 (K. Mylsami) – 23.08.1998, I.D.No.254/2006 (K. Manikandan) – 31.12.1997, I.D.No.256/2006 (P. Lawrence D’Cruz) – 16.12.1999.

6. The Labour Officer, after issuing due notice to the Electricity Board, submitted failure reports on various dates, including 03.03.2006, 27.07.2006, 27.03.2006, 24.03.2006, and 09.11.2006. Based on these failure reports, the 11 workmen filed their respective claim statements dated 08.09.2006 before the Labour Court, Coimbatore. The Labour Court registered the disputes as I.D.Nos. 234 to 237 of 2006, 240 of 2006, 243 of 2006, 248 to 250 of 2006, and 254 of 2006, 256 of 2006. The Electricity Board entered an appearance and filed separate but identical counter statements dated 07.06.2017 in the first 1

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