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1996 Supreme(P&H) 559

PUNJAB & HARYANA HIGH COURT
G.S.Singhvi and S.S.Sudhalkar JJ.
Rajinder Singh
Versus
Presiding Officer, Labour Court
Civil Writ Petition No. 923 of 1996,
Decided On : APRIL 10, 1996

In exceptional circumstances, the Labour Court/industrial Tribunal has the discretion to deviate from the normal rule of reinstatement with full back wages for illegally retrenched workmen.

Headnote:

INDUSTRIAL DISPUTES ACT, 1947 - SECTION 25-F, 25-G, 33-C(2) - RETRENCHMENT - BACK WAGES - AWARD - MODIFICATION - COURT'S DISCRETION - CIRCUMSTANCES - DELAY IN RAISING DEMAND - SHORT PERIOD OF SERVICE - PUBLIC EMPLOYER - NO SUBSTANTIAL FAILURE OF JUSTICE.

Fact of the Case:

Petitioner, a Mason in the Public Works Department, Punjab, was terminated from service without compliance with the mandatory provisions of Section 25-F of the Industrial Disputes Act, 1947. He filed a writ petition challenging the termination, which was initially granted a stay order but later vacated. The writ petition was eventually dismissed as withdrawn. The petitioner then raised a demand for reinstatement, leading to a reference of the industrial dispute to the Labour Court. The Labour Court found the termination of service to be contrary to Sections 25-F and 25-G of the Act and ordered reinstatement with continuity of service but only 50% back wages.

Finding of the Court:

The court held that the Labour Court had the discretion to deviate from the normal rule of reinstatement with full back wages in exceptional circumstances. The petitioner's delay of more than three years in raising the demand for reinstatement and his short period of service were considered valid reasons for declining full back wages. The court also noted that the petitioner had not worked for a single day between the termination of his service and the award of reinstatement, and that he was employed by a public employer, making the burden of full back wages unreasonable.

Issues: 1. Whether the Labour Court erred in awarding only 50% back wages to the petitioner. 2. Whether the court should exercise its extraordinary jurisdiction to modify the impugned award and direct the respondents to pay full back wages to the petitioner.

Ratio Decidendi: 1. The court recognized the principle that in exceptional cases, the Labour Court/industrial Tribunal may exercise its discretion to make deviation from the normal rule of reinstatement with full back wages. 2. The court found that the petitioner's delay of more than three years in raising the demand for reinstatement, his short period of service, and the fact that he was employed by a public employer constituted valid reasons for declining full back wages. 3. The court held that the impugned award did not result in substantial failure of justice and declined to exercise its extraordinary jurisdiction to modify the award and direct the respondents to pay full back wages to the petitioner.

Final Decision: The court dismissed the petitioner's prayer for award of full back wages and to that extent dismissed the writ petition. The court treated the petitioner's prayer for reinstatement and payment of 50% back wages as having become infructuous, subject to the petitioner's right to move an application under Section 33-C(2) of the Industrial Disputes Act, 1947 for alleged error in the calculation of the amount paid to him.

Judgment

G. S. Singhvi, J.

1. This petition has been filed with two-fold prayers. In the first place, it has been prayed that the respondents be directed to implement the award (Annexure P-I) and to take back the petitioner on duty forthwith and release 50% back wages. In the second place, that portion of the award has been challenged by which the Labour Court has restricted the relief of back wages to the extent of 50%.

2. Shorn of other details, it may be stated that the petitioner was appointed as Mason some time in July, 1988 in the Public Works Department (Bandr), Punjab and was posted at Sector 39, Chandigarh. According to the petitioner, his service was terminated w. e. f. March 1, 1989 without compliance of the mandatory provisions contained in Sec.25-F of the Industrial Disputes Act, 1947 (for short, the Act ). He filed civil writ petition No.3047 of 1989 challenging the termination of his service. Initially, the High Court passed an order of status-quo on March 13, 1989 but later on that order was vacated. The writ petition was dismissed as withdrawn on December 20, 1992. Thereafter, the petitioner raised a demand for his re-instatement and ultimately the Government of Punjab made a reference of the Industrial Dispute to the Labour Court, Union Territory Chandigarh. Notice of the reference was served upon the parties. No one appeared on behalf of the employer and on August 22, 1994, the Labour Court passed an order for ex parte proceedings. The petitioner appeared ana supported his claim. Relying on his testimony, the Labour Court held that the termination ofservice of the petitioner was contrary to Sections 25-F and 25-G of the Act. Consequently, it passed the award Annexure P-1 dated October 3, 1994 and ordered the reinstatement of the petitioner with continuity of service but 50% back wages.

3. It appears from the record that the respondent Nos.2 to 4 filed Civil Writ Petition No.12604 of 1995 challenging the award dated Oc-tober 3, 1994 on August 28, 1995, an ad-interim stay order was passed by the High Court. However, after hearing the parties, the court dismissed the writ petition on November 7, 1995.

4. Even thereafter, the petitioner was not reinstated in the service. Notice of this petition was ordered to be issued on January 18, 1996. When the case was listed for arguments on February 16, 1996, the court expressed the opinion that the departmental officials have derilicted in the discharge of their duties by not implementing the award dated October 3, 1994 and, therefore, appropriate action deserves to be taken against them. On February 22, 1996, learned Deputy Advocate General informed the court that the petitioner has been taken back in service w. e. f. February 18, 1996. It was also given out that of the amount of 50% back wages is ready for payment to the petitioner. That payment has in fact been made to the petitioner. Learned counsel for the petitioner states that the amount paid to the petitioner does not represent complete payment of 50% back wages as payable to the petitioner on the basis of the award (Annexure P-1) because the petitioner has to be given benefit of higher wages on the basis of his continuous service. In our opinion, for claiming such relief, it would be appropriate to relegate the petitioner to the remedy available to him under Sec.33-C (2) of the Act.

5. In support of the claim of the petitioner that the Labour Court has acted illegally in awarding only 50% back wages, Shri K. L. Arora, learned counsel for the petitioner, argued that once a finding of invalid retrenchment has been recorded by the Labour Court it was left with no option but to order re-instatement of the petitioner with continuity of service with full back wages. Shri Arora placed reliance on the judgment of the Supreme Court in Mohanlal V/s. Management, Bharat Electronics (1981-II-LLJ-70 ). He also placed reliance on a Full Bench Decision of this Court in Hari Palace Ambala City V/s. The Presiding Officer, Labour C













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