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2026 Supreme(Ori) 624

IN THE HIGH COURT OF ORISSA AT CUTTACK
K.R. MOHAPATRA, SANJAY KUMAR MISHRA, JJ.
M/s. Orient Paper Mills – Appellant
Versus
Abhimanyu Behera – Respondent
W.P. (C) No. 12498 of 2018
Decided On : 18-03-2026

Advocates Appeared:
For the Appellant : Deepak Kumar Pani
For the Respondent: Susanta Dash

The illegal refusal of employment by the management necessitated compensation for the workman, underscoring the employer's burden to prove any contrary claims.

Headnote:(A) Constitution of India - Articles 226 and 227 - Industrial Disputes Act, 1947 - Section 2(s) - Challenge to termination of service - Management's refusal of employment deemed illegal - Compensation of Rs.4,00,000/- awarded with 6% interest per annum if not paid within three months. (Paras 2, 28, 34)

(B) Employer-Employee Relationship - The Labour Court determined existence of employer-employee relationship, emphasizing the burden of proof lies with the employer to contest worker's claims. (Paras 11, 20)

(C) Adverse Inference - Non-production of key records by the employer led to an adverse inference against the management's claims. (Paras 21, 22)

(D) Scope and limits of judicial review - The review under Article 226 is not to be an appellate review; findings based on evidence cannot be reopened barring proof of jurisdictional error. (Paras 25, 27) (E) Delay and hardship - The court ordered compliance with the award in light of the significant delay and the claimant's age and health. (Paras 35, 36)

Facts of the case:
The writ petition was filed by the management against a Labour Court's award declaring termination of the watchman’s employment as illegal, granting him compensation after the employer failed to prove non-relationship.

Findings of Court:
The Labour Court’s findings were based on detailed evidence and were upheld; the compensation amount must be paid to the former employee promptly due to his age-related issues.

Issues: The key issues included the existence of the employer-employee relationship, compliance with statutory procedures, and challenges to the Labour Court's award.

Ratio Decidendi: The court upheld that evidence from the management was insufficient and emphasized that labor rights must be protected, alongside stipulations for compensatory payments for unjust termination.

Result: Writ petition dismissed; Management directed to comply with the award within one month.

Table of Content
1. challenge to the labour court award under article 226 (Para 1 , 2)
2. summary of workman's claims and termination details (Para 3 , 4 , 5 , 11 , 12)
3. management's defense and claims on evidentiary burdens (Para 6 , 7 , 8 , 14 , 30)
4. evidential requirements and adjudication process (Para 9 , 10 , 19)
5. judicial review standards under article 227 (Para 21 , 22 , 24 , 25 , 27 , 29)
6. final direction for enforcing labour court's award (Para 34 , 35 , 36)

JUDGMENT :

SANJAY KUMAR MISHRA, J.

1. The present writ petition has been preferred by the Management of Orient Paper Mills, Bhubaneswar, under Article 226 and 227 of the Constitution of India challenging the award dated 31.03.2018, passed by the learned Labour Court, Bhubaneswar in I.D. Case No.104 of 2000.

2. Vide the said award, learned Labour Court, Bhubaneswar, answered issue no.1 regarding termination of service of the Opposite Party-Workman by way of refusal of employment w.e.f 14.02.1999 to be illegal and unjustified. Accordingly, so far as issue No.2 regarding relief, it granted the relief of a lump sum compensation of Rs.4,00,000/- (Rupees Four Lakhs only), to be paid to the Opposite Party-Workman within a period of three months from the date of publication of the said award, with an observation that if the Management fails to pay such compensation awarded in favour of the Opposite Party-Workman, the same shall carry a simple interest of 6% per annum till it is paid to the Opposite Party-Workman.

3. As is revealed from the record so also impugned award, passed in I.D. Case No.104 of 2000, the case of the Opposite Party-Workman (Second Party-Workman before the Court below) is that he was initially engaged under the Resident Officer of the Management at Bhubaneswar since 1984 on a daily wage of Rs.25/-. Subsequently, he was appointed as a Watchman vide office order dated 02.09.1993 on a consolidated salary of Rs.885/- per month w.e.f 01.08.1993. Thereafter, the workman approached the District Labour Officer (DLO), Khordha vide his petition dated 23.02.1999 alleging non-payment of arrear wages, statutory bonus and minimum wages etc. During joint enquiry, the Management contended that his service has already been terminated. It was the case of the Opposite Party-Workman that the Management abruptly terminated his service without observing any formalities and without affording any opportunity of hearing and thereby violating the principles of natural justice.

4. It was further case of the Opposite Party-Workman before the Labour Court that neither he had been served with any notice nor paid with notice pay and compensation before termination of his service by way of refusal of employment. Hence, being aggrieved, he approached the Labour Authority, who started a conciliation proceeding, which failed.

5. Consequently, the reference was made to the Labour Court, Bhubaneswar for adjudication of the dispute regarding termination of service of the Opposite Party-Workman as Watchman w.e.f. 14.02.1999 by way of refusal of employment.

6. Being noticed, the Petitioner-Management (the First Party-Management before the Court below) appeared and filed its written statement, questioning the maintainability of reference on the ground that the Opposite Party-Workman is not coming under the definition of “Workman”, as defined under Section 2(s) of the Industrial Disputes Act, 1947, shortly, the I.D. Act.

7. A further stand was taken before the Court below that all the documents relied upon by the Opposite Party- Workman are forged and created for the purpose of the said case. It was further contended that at no point of time, there was any relationship of employer and employee between the Management and the Opposite Party-Workman. Hence, the question of reinstatement, payment of back wages and other service benefits does not arise. Accordingly, a prayer was made to reject the prayer of the Workman with costs.

8. As is further revealed from the record, the Opposite Party-Workman filed

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