IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
HARPREET SINGH BRAR, J.
R.N. Mishra and others - Petitioner
Versus
The Haryana State Industrial Development Corporation and others - Respondent
CWP-18401-2001 (O&M)
Decided On : 09-02-2026
JUDGMENT :
HARPREET SINGH BRAR, J.
CM-33195-2001
Allowed as prayed for.
CM-13232-CWP-2016
The present application has been filed under Section 151 of CPC for placing on record the policy dated 06.02.2001 as Annexure P-38 and exemption from filing the original/typed copy of the same.
In view of the averments made in the application, the same is allowed and the policy dated 06.02.2001 as Annexure P-38 is taken on record. Further, the applicant/petitioner is exempted from filing the original/typed copy of the same. Registry is directed to tag the same at an appropriate place in the file.
CWP-18401-2001
1. The present writ petition has been filed under Articles 226/227 of the Constitution of India for issuance of a writ in the nature of Mandamus directing the respondents to absorb the petitioners on suitable posts, according to their educational qualifications, experience and status in any board/corporation/university/department etc. of the State of Haryana. In the alternative, it is prayed that if it is concluded that the petitioners cannot be absorbed, the petitioners be paid their terminal dues and compensation.
2. Learned counsel for the petitioners submits that the petitioners were working with the Haryana Concast Limited, Hisar (hereinafter ‘Company’) on various posts. The Haryana Concast Limited was earlier named as Haryana Polysteel Limited which was incorporated in November, 1973 in joint sector of the respondent Haryana State Industrial Development Corporation, in collaboration with a Bhavnagar-based private company. Later on, it became a subsidiary of the respondent-HSIDC in September, 1977. The working of Haryana Polysteel Limited stood suspended since 03.07.1997. However, the manufacturing unit of the company was closed in March, 1998 in accordance with Section 25 of the Industrial Disputes Act, 1947. He further submits that even though permission was granted to retrench all 317 employees, only 309 employees were retrenched while the petitioners were retained for various activities including disbursing dues to the said retrenched employees. The petitioners continued to discharge their functions without any break in their service under the promise that they will be ultimately absorbed in another Government department/ board/ corporation etc. Ultimately, the company was wound up vide order dated 20.10.1999 passed by this Court and the petitioners were left without a job. The retrenched employees received compensation whereas the petitioners have not been paid their salary for November, 1999 or reimbursed for the company-related expenses made by them from their own pocket.
3. He further submits that the petitioners submitted a detailed representation dated 17.11.1999 for their absorption to another government-run entity, on suitable posts. It was detailed therein that Rs.3 crore was sanctioned to the company for payment of compensation to the 317 employees approved for retrenchment. An amount of Rs.2.4 crore was paid to the 309 retrenched employees and Rs.45 lakh was returned to the respondent-HSIDC while the petitioners were still in service. Vide letter (Annexure P-8), respondent No.4-the Director of Industries, Haryana recommended their adjustment in other public sector undertaking to respondent No.2. However, no step has been taken in furtherance of the same. Moreover, vide circular dated 13.07.1998 (Annexure P-20), the Government of Haryana had taken a policy decision that surplus regular employees of closed units would be absorbed in service. In spite of being covered by the said policy, no steps have been taken to absorb the petitioners in service.
4. Per contra, learned counsel for respondent-No.1-HSIDC submits that Rs.3 crore were released by the respondent-HSIDC and the State Government, in proportion to the equity shares held by them in Haryana Concast Limited. Admittedly, 08 employees i.e. the petitioners, were retained by the Company while 309 other employees were retrenched and compensated as the former were involved
Absorption rights for retrenched employees are contingent upon participation in litigation; non-parties are not entitled to benefit from judicial decisions of previous cases.
Absorption claims under the Industrial Disputes Act require existing employment; retrenchment compensation claims can still be valid if evidence of non-payment exists.
The court ruled that quasi-contractual arrangements do not preclude establishing employment status; the absence of a true contractor allows claims under MRTU & PULP Act.
Termination of casual workers constituted illegal retrenchment under Section 25F due to failure to provide notice and compensation; reinstatement replaced with monetary compensation due to the delay ....
The court held that the termination of employees for strike participation, without following due process or respecting binding agreements protecting their rights, violated constitutional protections ....
Statutory compliance under Sections 25(F) and 25(G) of the Industrial Disputes Act is crucial in retrenchment cases for legality, with repercussions for failure to adhere to these provisions.
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