IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Rajbir Sehrawat, J.
M/s Shahi Exports Private Limited – Appellant
Versus
Presiding Officer, Labour Court-1, Faridabad & Anr. – Respondents
CWP No. 819 of 2015 (O&M)
Decided On : 26-05-2022
Industrial Disputes Act - Termination of Service - Section 25(f) - M.P. State Electricity Board Versus Jarina Bee, 2003(3) S.C.T. 625, Thankur Singh Rawat and others Versus Jagjit Industries Ltd., (2006) ILLJ 755 Del
Fact of the Case:
The respondent-workman claimed that his service was terminated without proper compliance with the law. The petitioner-employer argued that the termination was a voluntary resignation and not covered under the definition of 'retrenchment' as per Section 2(oo) of the Industrial Disputes Act.
Finding of the Court:
The Court found that the respondent-workman had completed 240 days of continuous service, triggering the statutory obligation of the employer to comply with Section 25(f) of the Act. The Court rejected the petitioner-employer's claim of voluntary resignation due to lack of evidence.
Issues: The main issue was whether the termination of service constituted retrenchment under the Industrial Disputes Act and if the respondent-workman was entitled to back wages.
Ratio Decidendi: The Court held that the completion of 240 days of continuous service triggers the employer's obligation under Section 25(f) of the Act. It also emphasized the need for proper evidence to support claims such as voluntary resignation. The Court highlighted that the discretion to grant back wages lies with the Labour Court, and the lack of pleading or proof of not being gainfully employed does not preclude the grant of back wages.
Final Decision: The Court modified the award passed by the Labour Court to grant compensation of Rs.4.00 Lakh to the respondent-workman instead of reinstatement with full back wages.
JUDGMENT
Rajbir Sehrawat, J. (Oral) - This is a petition filed under Articles 226/227 of the Constitution of India for issuance of a writ in the nature of Certiorari for quashing the award dated 28.10.2014 (Annexure P-3), passed by respondent No.1.
2. The facts in brief, as pleaded in the present petition and as submitted by the counsel for the petitioner, are that the respondent No.2-workman had asserted that he had worked with the petitioner-employer from March, 2000 till March, 2005. However, on 14.03.2005 the service of the petitioner was terminated. The respondent-workman was aggrieved against the termination of his service. He raised the industrial dispute.
3. The conciliation having failed, the appropriate government had referred the dispute to the Labour Court. That reference has been answered against the petitioner-employer and in favour of the respondentworkman. It is against that award, the present petition has been filed by the petitioner-employer.
4. Carrying forward the arguments, the counsel for the petitioner-employer has submitted that, in fact, the respondent-workman had joined the service with the petitioner-employer on 18.09.2000. The respondent-workman had voluntary resigned from service of the petitioner-employer on 14.03.2005. Since, it was a voluntary resignation, therefore, the termination of service of the respondent was not covered in the definition of 'retrenchment' as defined by Section 2(oo) of the Industrial Disputes Act, 1947 (for short, the Act). However, the Labour Court has held the termination of service to be the retrenchment and has passed the award in favour of respondent-workman on a wrong presumption created by the Labour Court on the ground that the respondent-workman was not confronted with the resignation letter during his cross-examination. It is further submitted that the said document, in fact, was exhibited before the Labour Court as Ex.MW1/2. The said document bears the thumb impression and signatures of the respondent-workman. Therefore, the Labour Court should have accepted the version put up by the petitioner-employer and the reference should have been answered against the respondent-workman. The counsel for the petitioner has relied upon the judgment rendered by Hon'ble the Supreme Court in the case of M.P. State Electricity Board Versus Jarina Bee, 2003(3) S.C.T. 625, and rendered by Delhi High Court in the case of Thankur Singh Rawat and others Versus Jagjit Industries Ltd., (2006) ILLJ 755 Del, to contend that the Labour Court has wrongly granted full back wages with continuity of service; despite the fact that the petitioner had not even asserted in the claim statement that he was not gainfully employed after the date of submission of the resignation. Therefore, the award passed by the Labour Court deserves to be set aside in toto. In any case, the respondent-workman is not entitled to any back wages.
5. On the other hand, the counsel for the respondent No.2-workman has submitted that the respondent-workman had never submitted any resignation. The service of the respondent-workman was wrongly terminated by the petitioner-employer without complying with the provisions of law. Hence, the Labour Court has rightly passed the award in favour of the respondent-workman. The counsel for the respondent-workman has further submitted that so far as the resignation is concerned, the respondent-workman was not confronted with any such letter during his termination. Therefore, the said document cannot be relied upon by the petitioner-employer. Moreover, even during the examination of the witness of the petitioner-employer, the respondentworkman had disputed the authenticity of the said document, as such. It was specifically suggested to the witness of the petitioner-employer that the said document had been created by the petitioner-employer after the testimony of the respondent-workman before the Labour Court was over. Despite that, the petitioner-employer has not taken any steps to prove
The completion of 240 days of continuous service triggers the employer's obligation under Section 25(f) of the Industrial Disputes Act. The discretion to grant back wages lies with the Labour Court, ....
The judgment emphasizes the importance of compliance with the Industrial Disputes Act in cases of termination, highlighting the distinction between different types of appointments and the need for ev....
The central legal point established in the judgment is that the termination of services did not fall under the definition of 'retrenchment' as per the provisions of the Industrial Disputes Act, and t....
In cases of wrongful termination of service, reinstatement with continuity of service and back wages is the normal rule, subject to considerations such as length of service, nature of misconduct, and....
The court held that the termination of the workman was illegal as it violated mandatory retrenchment procedures, entitling him to reinstatement with full back wages.
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