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2025 Supreme(Ori) 1143

IN THE HIGH COURT OF ORISSA, CUTTACK
K.R. MOHAPATRA, SANJAY KUMAR MISHRA, JJ.
State Of Orissa - Petitioner
Versus
Rajkishore Sethi And Another – Respondent 
W.P.(C) No.2492 of 2011
Decided On : 24-03-2025

Advocates appeared
For the Petitioner: Mr. Swayambhu Mishra, Addl. Standing Counsel

Termination without notice or compensation violates the Industrial Disputes Act; recognition of continuous service applies despite temporary engagement gaps.

Headnote:(A) Industrial Disputes Act, 1947 - Sections 2(s), 2(j), 25-F, and 25-H - Termination of employment - The workman's termination was found to be illegal and unjustified as no prior notice or compensation was provided, violating the provisions of the Act. Court reaffirmed the recognition of continuous service despite gaps in employment due to temporary engagement. (Paras 4, 8, 9, 12, 18, 24)

(B) Legal Definition of Workman - The Court clarified the definition of 'workman' under the Act, asserting that the establishment is indeed an industry. (Par 13)

(C) Jurisdiction Issues - The Court held that both Administrative Tribunals and Industrial Adjudicators have concurrent jurisdiction in service matters. (Paras 15, 17)

Facts of the case:
The workman, appointed as Cook in a Girls’ Hostel, faced termination without due notice or compensation, sparking an industrial dispute that led to a favourable Labour Court award.

Findings of Court:
The Labour Court found the termination illegal and ordered reinstatement of the workman with back wages, highlighting that no statutory process was followed.

Issues: The Court addressed whether the workman's employment was under the I.D. Act's purview and the legality of the termination process.

Ratio Decidendi: The Court upheld the Labour Court’s findings that failure to comply with Section 25-F rendered the termination void and asserted that any employment-related dispute falls under the Industrial Disputes Act.

Result: Writ petition dismissed; the Labour Court's award upheld.

Table of Content
1. allegations of wrongful termination (Para 2 , 4 , 5 , 6 , 7)
2. arguments regarding legal standing and jurisdiction (Para 8 , 9 , 11 , 12)
3. management's failure to present essential arguments (Para 10 , 13 , 24)
4. criteria for 'continuous service' (Para 21 , 22)
5. final verdict upholding the labour court's order (Para 27 , 28)

JUDGMENT :

By the Bench:

1. This matter is taken up through hybrid mode.

2. Award dated 20th July, 2009 (Annexure-1) passed by the learned Presiding Officer, Labour Court, Bhubaneswar (for brevity „Labour Court‟) in Industrial Dispute Case No.50 of 2004 is under challenge in this writ petition, whereby the Opposite Party No.1- Workman has been directed to be reinstated in service with a lump sum amount of Rs.20,000/- towards back wages.

3. Parties are described as per their respective status before learned Labour Court for the sake of convenience in discussion. None appears for the Opposite Party No.1-Workman on call.

4. The admitted facts on record, which led to filing of the writ petition, are that, the Workman was appointed by the Management as Cook, vide order dated 10.12.1998 on a consolidated salary of Rs.2800/- per month in Kuntala Kumari Sabat Girls‟ Hostel, Unit-II, Bhubaneswar till the appointment of a regular employee. Accordingly, he joined the duty in the said hostel. While working as such, vide order dated 03.04.1999, the Management revised the mode of engagement of the Workman on 44 days basis on a monthly wage of Rs.780/- with one weekly off day or Rs.1020/- per month in lieu of the weekly off days with retrospective effect from 11.12.1998. Accordingly, his salary was reduced from Rs.2800/- per month to Rs.780/- or Rs.1020/- per month, as the case may be. But before issuance of the said revised engagement order, the Workman had already been paid salary @ Rs.2800/- per month for three months from his date of joining, i.e., 11.12.1998. While working as such, the Workman approached the Orissa Administrative Tribunal, Bhubaneswar in O.A. No.131 of 2001 for regularisation of his service. The said O.A. was disposed of vide order dated 08.02.2001 with a direction that if any regular selection is held for filling up of a post of a regular Cook in the said hostel, the Workman (Applicant in O.A. No.131 of 2001) having served in the Institution for a period of pretty long time, be allowed to compete with others in the regular selection, provided he possesses the minimum educational qualification prescribed for the post with further direction that till such regular selection is made, the Applicant may be allowed to continue as an ad hoc Cook subject to the conditions detailed in the said order.

4.1 However, instead of acting in terms of the observation made in order dated 08.02.2001, passed in O.A. No.131 of 2001, the services of the Workman were terminated on 22.03.2001 without giving one month‟s prior notice or one month‟s salary in lieu of notice period so also compensation in terms of Section 25 -F of the Industrial Disputes Act, 1947 (for brevity „the I.D. Act‟).

5. Being aggrieved by the said action of the Management, the Workman raised an industrial dispute. Conciliation being failed and a report being sent to the Labour and Employment Department, Government of Odisha, the appropriate Government, in exercise of power conferred under sub-section (5) of Section 12, read with Clause (c) of sub-section (1) of Section 10 of the I.D. Act, vide order dated 30th June, 2004, referred the matter to the learned Labour Court for adjudication of the dispute by answering the following reference;

“Whether the termination of employment of Sri Raj Kishore Sethi, Ex-Cook of Kuntala Kumar Sabat, Adibasi Girls Hostel by the Director, S.T. & S.C. Development Department with effect from 25.03.2001 is illegal and/or justified? If not to what relief Sri Sethi is entitled?

The matter so referred was registered as I.D. Case No.50 of 2004.

6. Being noticed, the Workman filed his statement of claim reiterating

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