Reinstatement is not automatic for wrongful termination; courts may award compensation if the position is no longer viable, reflecting a balance between employee rights and employer realities.

Judgment :

Chittaranjan Dash, J.

1. By means of the present Writ Petition, the Petitioner- Management calls in question the legality and propriety of the Award dated 26.09.2018 passed by the learned Presiding Officer, Industrial Tribunal, Bhubaneswar in I.D. Case No.19 of 2015, whereby the learned Tribunal, while answering the reference in favour of the Opposite Party-Workmen, directed the Petitioner- Management to reinstate the concerned workmen in its establishment and further directed payment of 20% of the back wages to them.

2. The background facts, in brief, are that the Berhampur Cooperative Central Bank Ltd., the Petitioner-Management, is a registered Central Cooperative Society under the Odisha Cooperative Societies Act, 1962. In order to augment its deposits, the Bank introduced a Daily Deposit Scheme pursuant to a Resolution dated 17.03.1998, and for the purpose of mobilising deposits engaged certain Commission Agents/Daily Deposit Agents. In pursuance thereof, 26 Daily Deposit Agents were engaged in different branches of the Bank, including Opp. Parties- Workmen, who are the Opposite Parties in the present Writ Petition, and agreements were executed with them at the time of their engagement. Subsequently, the Registrar, Cooperative Societies, Odisha, by communication dated 03.02.2004 bearing Letter No.1812, directed all Cooperative Banks and Urban Cooperative Banks not to engage new agents under the Daily Deposit Scheme and further directed that no new Daily Deposit Accounts be opened, save and except after verification of the existing accounts and subject to prior approval of the Registrar. The said direction was reiterated by the Registrar vide Letter No.2074 dated 05.08.2014, instructing all Managers and Branch Managers of Cooperative Banks not to open Daily Deposit Accounts and to implement the earlier directions issued on 03.02.2004 in their true spirit. The aforesaid directions were also published in Odia daily newspapers. In view of the losses allegedly sustained under the Daily Deposit Scheme, the Managing Committee of the Bank, by Resolution dated 07.11.2014, resolved not to continue the services of the Daily Deposit Agents and consequently, by Letter No.4696 dated 17.01.2015, the Branch Managers were informed regarding the closure of the said Scheme.

Aggrieved thereby, the Opposite Party-Workmen initially approached this Court in W.P.(C) No.20517 of 2014, which was disposed of by order dated 05.08.2014 directing the competent authority to consider the representation of the Opposite Parties. Upon rejection of their representation, the Opposite Parties once again approached this Court in W.P.(C) No.2389 of 2015. Pursuant to the liberty granted therein, the Opp. Parties-Workmen invoked the jurisdiction of the Industrial Tribunal, Bhubaneswar by filing an application under Section 2-A(2) of the Industrial Disputes Act, 1947, contending that the action of the Petitioner-Management in discontinuing their engagement was illegal and unjustified and seeking appropriate relief. The Petitioner-Management, upon notice, entered appearance and contested the claim, whereafter both Parties adduced oral as well as documentary evidence before the learned Tribunal. Upon consideration of the materials on record, the learned Industrial Tribunal, Bhubaneswar passed the Award dated 26.09.2018 in I.D. Case No.19 of 2015, directing reinstatement of the Opp. Parties-Workmen in the establishment of the Petitioner-Management with 20% back wages.

Being aggrieved by the said Award, particularly the direction for reinstatement with partial back wages, the Petitioner- Management has instituted the present