The Labour Court has the discretion to grant relief of reinstatement with back wages or some other relief, considering all relevant factors, including the misconduct of the workman and the possibility of gainful employment after termination of service.

G.S.Singhvi, J.

1. The facts of the case are that the petitioner joined service of the respondent No. 1 as a Secretary. On the June, 1981, his service was terminated. That action of the employer became subject matter of reference under Section 10(1) (c) of the Industrial Disputes Act, 1947 , before the Labour Court at Bhatinda to whom a reference was made by the Government of Punjab. The workmans grievance was that his service had been terminated by the employer without any enquiry and without compliance of the principals of natural justice. The employer pleaded that termination of service of the petitioner was brought about by it but he had abandoned his job by absenting from duties.

2. After considering the rival cases, the Labour Court held that the employer had taken action against the workman for his alleged participation in the strike but before removing him from service, no enquiry was made in accordance with the principle of natural justice. On that ground, the Labour Court held that the termination of service of the workman was illegal, However, on the issue of relief, the Labour Court observed that the workman had himself abstained from work and he is, therefore, not entitled to back wages.

3. Petitioner has questioned that part of the award by which the back wages have been denied to him by the Labour Court. The petitioner has submitted that once the order of termination of the service of a workman is held to be illegal, the only course open to the Labour Court/Industrial Tribunal is to award the relief of reinstatement with full back wages and no discretion vests with the Labour Court to deprive the benefit of the back wages to the workman.

4. No reply to the writ petition has been filed nor the counsel for the respondents has appeared to argue the case.

5. Though the terms of reference of the dispute have not been set out in the award or in the writ petition yet it is reasonable to proceed with the assumption that the Government had referred the dispute relating to the termination of service of the petitioner with a direction of the Labour Court to decide as to what relief, if any, should be granted to the workman. Thus, the Labour Court did have the jurisdiction to grant relief of reinstatement with back wages or some other relief. Even otherwise, the very nature of powers conferred on the Labour Court/Industrial Tribunal vests inherent power in them to grant appropriate relief on the basis of a finding that the termination of service of the workman is not legal and justified.

6. In the cases involving retrenchment of the services of workman, the Courts have by and large recognised the principle that the normal relief of re-instatement with back wages should be awarded to the workman. However, this rule is not required to be followed in cases where employer pleads and proves existence of exceptional circumstances. If the court is satisfied that re-instatement would cause greater hardship, some other relief can be given. Reference in this connection can appropriately be made to the decision of the Supreme Court in Surinder Kumar Verma v. The Central Government Industrial Tribunal - cum Labour Court, New Delhi and Anr., A.I.R. 1981 S.C. 422.

7. In the cases relating to termination of Service of the workman on the allegations of misconduct much more wider power vests with the Labour Court/Industrial Tribunal. Section 11-A of the Industrial Dispute act, 1947, confers statutory powers on the Labour Court/Industrial Tribunal to interfere with the quantum of punishment awarded by the employer. The degree of discretion to give relief of reinstatement or not to give such relief is certainly much more in the cases of termination of Service by way of punishment as compared to the cases of retrenchment from service. Nevertheless in each case, the Labour Court or Industrial Tribunal has to take into consideration all relevant factors while determining the relief to be given to the workman.

8. On the issue of back wage