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2026 Supreme(Mad) 120

IN THE HIGH COURT OF JUDICATURE AT MADRAS
D.BHARATHA CHAKRAVARTHY, J.
The Management of Jaigopal Garodia, Vivekanda Vidyalaya – Appellant 
Versus
Siranjeevi W/o Late Daniel – Respondent
W.P. No. 345 of 2024, W.M.P. Nos. 404, 9162 of 2024
Decided On : 18-02-2026

Advocates Appeared:
For the Appellant : Haroon Al Rasheed,
For the Respondents: P.R. Krishnaraj, C. Sundaramurthy

Fair labor practices require proper procedures before termination, and unjust dismissals should result in compensation reflective of lost wages.

Headnote:(A) Industrial Disputes Act, 1947 - Award by Labour Court - Termination of service - Unfair labour practice - Claim for reinstatement and compensation upheld - Compensation modified from Rs.12,00,000/- to Rs.8,00,000/- - Absence of enquiry or charge sheet before termination rendered dismissal unjustified - Supreme Court principles regarding compensation for unfair dismissal discussed, emphasizing future wage considerations. (Paras 1, 5, 6, 15)

(B) Fair Procedure - Importance of conducting a proper enquiry and issuing charge sheet before termination - Management failed to prove termination was justified. (Paras 5, 12, 14)

Facts of the case:
The writ petition challenged an award by the Labour Court declaring the termination of service of the Worker as illegal, awarding Rs.12,00,000/- as compensation. The Worker was employed for over 27 years and terminated without enquiry on grounds of alleged misconduct.

Findings of Court:
The Labour Court found the termination procedure lacked fairness and awarded compensation instead of reinstatement. Injurious conduct was noted but insufficient to justify dismissal without process.

Issues: The legality of the termination process and adequacy of awarded compensation.

Ratio Decidendi: The court reiterated the necessity of fair procedures in employment terminations, notably the failure to hold an enquiry or offer the worker a chance to respond. The compensation was reduced based on considerations of fair earnings calculations per relevant judicial principles.

Result: The writ petition was disposed of, upholding the Labour Court's finding on termination's unjustness but modifying compensation to Rs.8,00,000/-.

Table of Content
1. challenge to labour court award (Para 1 , 2)
2. management's claim of fair enquiry (Para 3 , 5)
3. merits of management's charges (Para 7)
4. insufficient evidence to justify termination (Para 10)
5. flaws in management's handling (Para 11 , 12 , 13)
6. awarding compensation over reinstatement (Para 14)
7. modification of compensation amount (Para 15)
8. final order on compensation (Para 16)

ORDER :

1. This Writ Petition is filed challenging the award passed by the Labour Court dated 18.02.2023 in I.D.No.330 of 2014. By the said award, upholding the claim made by the Workman that the termination in service was illegal and unjustified, in lieu of reinstatement with backwages, awarded compensation of Rs.12,00,000/-. Aggrieved by the same, the petitioner-Management is before this Court.

2. Upon hearing the learned counsel for the petitioner and perusing the affidavit filed in support of the writ petition and the other material records of the case, it can be seen that the worker, namely, Mrs.Siranjeevi, was working as an Aaya in the petitioner school. At the relevant point of time, she had put in more than 27 years of service. However, without any enquiry whatsoever, she was suddenly terminated from service on 17.03.2014. The order states that she has been warned of using filthy language against the other staff and, in spite of the warning, she did not correct herself and therefore, she was terminated from service. Aggrieved by the same, the above claim petition was filed.

3. The claim petition was resisted by the Management on the ground that the award was passed after due enquiry and, therefore, it need not be interfered with by the Labour Court. Originally, an award was passed on 11.06.2015, whereby the claim was allowed and the Management was directed to reinstate the petitioner with full back wages. The same was challenged by the petitioner- Management before this Court. Pending the final hearing, this Court, by an interim order dated 18.07.2022, directed the Management to deposit a sum of Rs.5,50,000/- in an interest fetching deposit and directed reporting of compliance of the same. Finally, the writ petition was disposed of on the following terms:

“4. Having regard to the said concordance arrived between the parties and to shorten the litigation, the impugned award dated 11.06.2015 in I.D. No. 330 of 2014 passed by the First Respondent is set aside and that the industrial dispute in I.D. No. 330 of 2014 shall be restored to the file of the First Respondent and listed for next hearing on 07.12.2022. The parties or their respective Counsel shall attend the hearing on the said date as well as on the subsequent dates to which it is adjourned and extend their co-operation for the early disposal of the matter. The Petitioner shall be cross-examined and both parties are not precluded from examining other witnesses and producing documents in respect of their respective contentions. After affording full opportunity of hearing to all parties concerned following the prescribed procedure in consonance with the principles of natural justice, the First Respondent shall deal with each of the contentions raised and pass reasoned orders on merits and in accordance with law and communicate the decision taken to the concerned parties under written acknowledgment and depending upon its outcome, the First Respondent shall decide as to the manner in which the remaining sum of Rs. 5,50,000/- in Fixed Deposit would have to be dealt by the parties. It shall be ensured that there is atleast one effective hearing every week showing progress of the case and monthly reports in that regard shall be sent to the Registrar (Judicial) of the Court till the matter is finally disposed.

In fine, the Writ Petition is disposed on the aforesaid terms. No costs.”

4. Thereafter, the matter proceeded before the Labour Court and the proceedings continued. Thereafter, the Management examined M.W.1 to M.W.3 and Ex.M1 to Ex.M7 were marked on behalf of the Managemen

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