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2023 Supreme(P&H) 2528

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
G.S. SANDHAWALIA, HARPREET KAUR JEEWAN, JJ.
XEN OP Divisional No. 1 and 2 Dadri & Ors. – Appellants
Versus
Presiding Officer, Industrial Tribunal-Cum-Labour Court & Anr. – Respondents
LPA-513 of 2018 (O&M)
Decided On : 20-02-2023

Advocates Appeared:
Mr.Puneet Jindal, Senior Advocate with Ms. Navroop Sawanda, Advocate; For the Appellant
Mr. B.S. Rana, Senior Advocate with Mr. Navdeep Doon, Advocate for Respondent No.2.

Headnote:(A) Industrial Disputes Act, 1947 - Section 25-F - Adjustment of back-wages and reinstatement - Appeal against modification of Labour Court's award reducing back-wages from 50% to 40% and ordering compensation of Rs.3 lakhs - The conclusion of the learned Single Judge was based on the lack of direct evidence for continuous service of 15 years, citing Bharat Sanchar Nigam Ltd. v. Bhurumal, (2014) 7 SCC 177, stating that delay in raising demand notice justified reduction in compensation. (Paras 2, 12, 14)

(B) Workers' Rights - Definition of workman - The court upholds that part-time workers fall under the definition of workman, thus entitled to protection under the Industrial Disputes Act. (Paras 6, 10)

(C) Reinstatement Principles - Reinstatement not an automatic right; consideration of nature of service and delays in raising disputes are vital factors in determining relief. (Paras 11, 14)

Facts of the case:
The workman claimed employment as a permanent Mali from 1987 until his services were terminated in 2000 without due process. The Labour Court initially awarded reinstatement and back-wages, which was partially modified by the Single Judge resulting in reduced benefits. (Paras 1-3)

Findings of Court:
The court concluded that reinstatement was not appropriate, considering the long delay in raising the demand for reinstatement and the nature of the employment. Compensation of Rs.7,50,000 was deemed appropriate. (Paras 14, 15)

Issues: The main issues were the validity of the workman’s employment claim and the justification for modifying the back-wages and reinstatement. (Paras 1, 4)

Ratio Decidendi: The lack of evidence for continuous employment and the delay in raising the dispute were critical, coupled with the principle that reinstatement is not automatic but dependent on various circumstances surrounding employment. (Paras 11, 14)

Result: Appeal allowed; Rs.7,50,000 compensation awarded to the workman to be paid within two months. (Paras 15)

Table of Content
1. delay in appeal condoned. (Para 1)
2. workman claims unfair termination and seeks reinstatement. (Para 2 , 3 , 4 , 5 , 6)
3. precedents establish compensation for wrongful termination. (Para 7 , 8 , 9)
4. guiding principles for reinstatement and employee rights. (Para 10 , 11)
5. compensation assessed based on circumstances of case. (Para 12 , 13)
6. appeal allowed, compensation awarded to workman. (Para 14 , 15)

JUDGMENT

G.S. Sandhawalia, J. - CM-1398-LPA-2018

Application for condonation of delay of 185 days in filing the appeal, is allowed, in view of the averments made in the application duly supported by affidavit. Delay of 185 days in filing the appeal is condoned.

CM stands disposed of.

LPA-513-2018 (O&M)

The present Letters Patent Appeal requires consideration of the judgment of the learned Single Judge passed in CWP No.23594 of 2013 Xen OP Divisional No. 1 and 2, Dadri, Distt. Bhiwani and & others v. Presiding Officer Industrial Tribunal-cum-Labor Court and another' decided on 31.07.2017. By virtue of the said order, the learned Single Judge modified the Award of the Labour Court dated 03.01.2014 (Annexure P-1) to the extent that instead of 50% back-wages along-with the relief of reinstatement, the benefit of back-wages was restricted to 40%. The amount of Rs.3 lakhs which had been deposited by the department in pursuance of the interim order dated 02.12.2014 when notice of motion was issued in the present appeal which has to carry the maximum rate of interest while staying the Award was to be returned to the department by issuing a demand draft.

2. The reasons which weighed with the learned Single Judge were that the appointment of the workman as Mali was on 01.01.1987 and his services were dispensed with in December, 2000. He had served a demand notice on 06.05.2003 (Annexure P-2) and, therefore, while noticing the pronouncement of law by the Apex Court in Bharat Sanchar Nigam Ltd. v. Bhurumal , (2014) 7 SCC 177 , it was held that no direct evidence for working for 15 years had been furnished by the workman and most of the documents were relatable only to two years. The delay in raising the demand notice of 3 years was accordingly taken into consideration by granting only 40% of the back-wages.

3. A perusal of the paper-book would go on to show that the claim of the workman was on the strength of the claim petition filed that he was appointed as Mali on 01.01.1987 by the respondent-Nigam at Pump House No.18, Balkara. Thereafter, he was transferred to Power House Charkhi Dadri and remained there till December, 2000. It was claimed that the post on which he was working was of permanent nature but he was treated as a daily wager and, thus, he had put in more than 240 days service till the date of termination. Neither any notice was issued to him nor any retrenchment compensation was paid to him. He had also alleged that he was told that his services were no longer required, whereas juniors had been retained.

4. The defence as such of the appellant-Nigam was that he had never worked for a single full day and was only a part time sweeper. He had worked in the Sub-Station which falls under the jurisdiction of Executive Engineer, Rewari and the said officer had not been impleaded as a party. The employment was for 89 days only and after the expiry of the same fresh approval and sanction was taken, which was for the same period. The policy of the Nigam dated 01.12.2000 provided that his services to be discontinued.

5. In response to the written statement, the respondent-workman had filed replication, wherein there was a denial to the fact that he was a sweeper but appointed as a part time Mali and his services were continued from 01.01.1987 to 31.12.2000 without any gap.

6. WW-2 R.M. Bhargav, Retired Sub-Station Engineer, Electricity Department had been examined to show that he was working @ Rs.775/- per month in the year 2000 and submitted that he was a part time sweeper. The Labour Court came to the conclusion t

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