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2023 Supreme(P&H) 3421

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
M.S. RAMACHANDRA RAO, MRS SUKHVINDER KAUR, JJ.
The Panipat Co-operative Sugar Mills Ltd. – Appellant
Versus
The Presiding Officer, Industrial Tribunal/Labour Court, Panipat & Anr. – Respondents
LPA-1055 of 2022(O&M)
Decided On : 11-05-2023

Advocates Appeared:
Mr. Rajinder Goel, Advocate; For the Appellant
Mr. R.K. Malik, Senior Advocate assisted by Mr. Varun Veer Chauhan, Advocate, for the caveator-respondent.

Headnote:(A) Industrial Disputes Act, 1947 - Sections 2(oo) and 25-F - Termination of service - Writ Petition challenged the award of Labour Court regarding termination of employee without notice or retrenchment compensation - Labour Court determined that termination was illegal due to lack of compliance with statutory provisions - Probationary period of employee not validly extended beyond one year, leading to confirmation of employment - High Court upheld Labour Court's decision. (Paras 6, 12, 19, 20, 32)

(B) Res Judicata - Dismissal of prior writ petition with no reasons does not bar subsequent challenge on identical issues if no substantive finding was made. (Paras 25, 26)

Facts of the case:
The appellant terminated the services of respondent after more than 240 days of service without any formal due process, including notice or retrenchment compensation. The employee contested termination citing lack of justification and domestic inquiry. Labour Court ruled in employee's favor, reinstating him with back wages.

Findings of Court:
The Court found the termination illegal as it violated statutory requirements for retrenchment and confirmed employee's status based on the proper application of Standing Orders regarding probation.

Issues: Whether the termination was justified under the Industrial Disputes Act, particularly concerning the conditions of retrenchment and the validity of the extended probation period.

Ratio Decidendi: The extension of probation beyond the stipulated maximum period was deemed invalid; appropriate procedures under the Industrial Disputes Act were necessary for lawful termination of employment.

Result: Appeal dismissed with costs.

Table of Content
1. challenge to the labour court's award. (Para 1 , 2 , 4)
2. respondent's claims of illegal termination. (Para 5 , 10)
3. labour court's reasoning on probation terms. (Para 11 , 12)
4. single judge's validation of labour court's findings. (Para 16 , 17 , 18)
5. final ruling on lpa and costs imposed. (Para 20 , 22 , 32)

JUDGMENT

Mr M.S. Ramachandra Rao, J.

This Letters Patent Appeal is filed challenging judgement dt.10.08.2022passed by the learned Single Judge of this Court in CWP- 831-1996.

2. The said Writ Petition had been filed by the appellant (herein) challenging Annexure P-7 Award passed by the Presiding Officer, Labour Court, Panipat on a reference made by the State of Haryana under section 10 of the Industrial Disputes Act, 1947.

3. In the said reference, the Labour Court had to determine whether the termination of services of respondent No.2 (herein) were justified and in accordance with law.

LPA-1055-2022 (O&M)

4. Respondent No.2 had been appointed as a Bottling Attendant in the Distillery Unit of the appellant in 1988, and he continued to work upto 13.01.1990, on which day, his services were terminated without assigning any reason.

5. Respondent No.2 contended that no notice was given to him; that no retrenchment compensation was paid to him as required under section 25-F of the Industrial Disputes Act, 1947; and there was no charge-sheet or any domestic enquiry held against him; and so, the termination of his services was illegal, unjust and he was entitled to reinstatement with back wages.

6. Respondent No.2 had earlier approached this High Court by filing Writ Petition No. CWP-875-1990 along with others challenging his termination, but the same was dismissed on 04.05.1990 (P-4) by a Division Bench of this Court without assigning any reasons by simply stating one word "dismissed".

The award of the Labour Court

7. Before the Labour Court, respondent No.2 examined himself as WW-1 and marked Exhibits A-1 and A-2, and the appellant examined MW-1 and marked Exhibits M-1 to M-5.

8. The appellant contended before the Labour Court that the reference was not maintainable in view of the decision in the said Writ Petition.

9. This plea was rejected stating that it was in liminidismissed and such an order would not operate as res judicata.

10. The case of the appellant was that respondent No.2 had been engaged as a daily-rated worker; that on 05.10.1988, he along with others were engaged against the permanent post of unskilled bottling attendants; that he was put on probation for a period of one year which was later extended for one more year on 12.10.1989; and so his services were terminated on 13.01.1990 as it was found to be not satisfactory.

11. The Labour Court held that in the Standing Orders governing the service conditions of the employees of the appellant, the maximum period of probation could only be one year, and there was no power to extend it from one year to two years, as was done by the appellant.

It held that a period of probation can at best be only extended by six months from the initial period of six months, and any stipulation in the letter of appointment or any other order extending the period of probation beyond this one year period would not be valid, and the Managing Director of the appellant had no authority to do so.

It held that the services of respondent No.2 stood confirmed after a period of six months, if they were not terminated before that period.

The Labour Court also rejected the plea of the appellant that certified Standing Orders which are applicable to an employee of Co- operative Sugar Mills, Panipat are not applicable to the employees of distillery which was a separate unit on the ground that such an argument would be contrary to the pleading of the appellant in the written statement filed by it where there was an admission that the certified Standing Orders govern the service conditions of the workman.

Reliance was also placed on the provisions of the Model Standing Orders frame

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