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2025 Supreme(Ori) 731
IN THE HIGH COURT OF ORISSA AT CUTTACK
K.R. MOHAPATRA, SAVITRI RATHO, JJ.
M/s. Utkal Alumina International Limited (UAIL) - Petitioner
Versus
The Presiding Officer, Labour Court - Respondent
IA No.6063 OF 2025 (Arising out of W.P.(C) No.23261 of 2024)
Decided On : 25-09-2025
Advocate Appeared:
For the Petitioner:Mr. Biraja Prasad Tripathy, Advocate
For the Respondent:Mr. Swayambhu Mishra, Additional Standing Counsel, Mr. Durga Prasad Nanda, Senior Advocate, being assisted by Mr. Purna Chandra Das, Advocate
Under Section 17-B of the Industrial Disputes Act, 'absorption' can be interpreted as 'reinstatement', ensuring workmen are protected from financial hardship during legal proceedings.
Headnote:(A) Industrial Disputes Act, 1947 - Section 17-B - Benefits during litigation - Workmen's services terminated; Labour Court ordered absorption as employees rather than reinstatement - Section 17-B’s intent is to protect workmen from destitution during litigation - Court interprets 'absorption' inclusively as 'reinstatement' in this context. (Paras 4, 11, 14, 15)
(B) Interpretation of legislative provisions - A liberal approach is mandated for beneficial legislation, particularly concerning employment security during disputes. (Paras 12, 14)
Facts of the case:
Workmen engaged through a contractor had their services terminated in 2017; the Labour Court ruled the contractor's agreement a sham and ordered their absorption by the principal employer.
Findings of Court:
This Court ruled to uphold the Labour Court's order for absorption, clarifying its equivalence to reinstatement for the affected workmen.
Issues: Whether the Labour Court's order of 'absorption' can be considered 'reinstatement' under Section 17-B during the pending Writ Petition.
Ratio Decidendi: The court concluded that ‘absorption’ in this instance serves to reinstate the workmen in their former positions, emphasizing a broader interpretation of employment reinstatement in statutory provisions.
Result: IA is granted, conditional upon the Workmen filing required affidavits indicating unemployment during litigation.
| Table of Content |
|---|
| 1. establishment of dispute and prior rulings. (Para 2 , 3) |
| 2. interpretation of section 17-b and workmen's rights. (Para 4) |
| 3. management's counterarguments against workmen's claims. (Para 5 , 6 , 7 , 8) |
| 4. analysis of section 17-b conditions for benefits. (Para 10) |
| 5. interpretation of 'reinstatement' in context. (Para 11) |
| 6. broad interpretation of beneficial legislation. (Para 12 , 13 , 14) |
| 7. affirmation of extending benefits to workmen. (Para 15) |
| 8. final directive on compliance and benefits. (Para 16) |
ORDER :
K.R.Mohapatra, J.
1. This matter is taken up through hybrid mode.
2. This Interlocutory Application has been filed by the Workmen-Opposite Party Nos.2 to 13 (in the Writ Petition) (for brevity ‘the Workmen’) under Section 17 -B of the Industrial Disputes Act, 1947 (for brevity, ‘the Act’).
3. Short narration of facts necessary for proper adjudication of the IA are that Industrial Dispute was raised by the Workmen was referred to the Labour Court, Jeypore (for brevity ‘the Labour Court’) to answer the following reference:-
"Whether the contract between M/s. Sri Ram Constructions, Indira Nagar, Line, Near Ring Road, Rayagada-765001, Odisha (Contractor) and M/s. Utkal Alumina International Ltd., At. Doraguda. PO. Kuchipadar, Rayagada-765015, Odisha (Principal Employer) was genuine or it was ruse/sham and whether the workmen namely Sri Bhabani Charan Satapathy and 11 others, whose services were terminated w.e.f. 01.04.2017 are entitled to be absorbed on the rolls of M/s. Utkal Alumina International Ltd. w.e.f. 01.04.2017?”
3.1 On receipt of reference, ID Case No.1 of 2018 was registered on the file of Labour Court, Jeypore. Learned Labour Court answered the reference vide award dated 30th March, 2024 (Annexure-6) as under:-
“The reference be and the same, is answered on contest against both the Managements. The Management no.l is directed to absorb the present workmen into its regular establishment from the date of their disengagement/termination i.e 01.04.2017, along with 50% back wages and all the consequential service benefits as that of a regular employee is getting, within two months from the date of publication of this award by the Appropriate Govt. No order as costs.”
3.2 The Management No.1, namely, M/s Utkal Alumina International Limited (UAIL) has filed this Writ Petition assailing the award under Annexure-6. The Workmen on their appearance filed the present IA to extent the benefit under Section 17 -B of the Act during pendency of the Writ Petition.
4. Mr. Nanda, learned Senior Advocate appearing for the Workmen submitted that Section 17 -B of the Act is a beneficial legislation enacted to protect the Workmen from starvation and destitution while the employer chooses to challenge an award of reinstatement in a superior Court. The underlying object is to ensure that the Workmen, who have been found to have illegally terminated and have been favoured with an award of reinstatement/restitution in employment are not left without means of subsistence during prolonged litigation in superior Courts. Although the Workmen were engaged through Contractor, namely, M/s Sri Ram Construction, Indira Nagar-Opposite Party No.14-Management No.2 by virtue of an agreement, but said agreement was found to be sham and camouflage in the impugned award. Thus, in effect, the Management No.1- principal employer becomes the real employer from the date of their initial employment/engagement. The word ‘reinstatement’ used in -B of the Act is inclusive in nature, which includes a direction to absorb the Workmen in the post from which they were terminated, as in the instant case. Mr. Nanda, learned Senior Advocate also drew attention to the English Dictionary meaning of the word ‘reinstatement’. Referring to Cambridge Dictionary, it is submitted that the word ‘reinstatement’ means “the act of giving someone back their job or making something exist again”. As per Collins Dictionary, the synonyms of the word ‘reinstatement’ means and i
