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2023 Supreme(All) 2040

IN THE HIGH COURT OF ALLAHABAD
Kshitij Shailendra, J.
Narendra Kumar and others - Petitioners
Versus
Presiding Officer Labour Court U.P. Meerut and others - Respondents
Civil Misc. Writ Petition No. 8705 of 2016
Decided On : 25-05-2023

Advocates:
Advocate Appeared:
For the Petitioner: Devendra Pratap Singh and Pramendra Pratap Singh
For the Respondent: C.S.C. and Diptiman Singh

IMPORTANT POINT
The court established that reinstatement is not an automatic remedy for violations of employment termination laws; compensation may be more appropriate based on employment duration and nature.

Headnote:

Compensation - Termination of Employment - U.P. Industrial Disputes Act, 1947 - Sections 6-N - The court interpreted Section 6-N regarding termination without due process, emphasizing that reinstatement is not automatic and compensation may be appropriate based on the nature of employment and duration of service.

Fact of the Case:

The petitioners, engaged by a sugar industry, claimed wrongful termination after completing 240 days of work without due process. The Labour Court initially awarded reinstatement and backwages, but this was overturned by the High Court, leading to a remand for re-examination.

Finding of the Court:

The Labour Court found the employer violated Section 6-N of the Act but awarded compensation instead of reinstatement, which the petitioners contested as inadequate given their work history.

Issues: Whether the Labour Court's award of compensation instead of reinstatement was justified under Section 6-N of the U.P. Industrial Disputes Act, considering the nature of employment and duration of service.

Ratio Decidendi: The court held that while violation of Section 6-N was established, reinstatement with backwages is not an automatic remedy; the Labour Court must consider the specifics of each case, including the nature of employment and the duration of service.

Result: The writ petition is disposed of, upholding the Labour Court's award with modifications for additional compensation.

JUDGMENT :

Kshitij Shailendra, J.

Heard Shri Devendra Pratap Singh, learned counsel for the petitioners, learned Standing Counsel for the State-respondents and Shri Diptiman Singh for the respondent No. 2-M/s Triveni Engineering Works Ltd., Sugar Unit-Khatauli, District-Muzaffar Nagar.

2. This writ petition is directed against the award of the Labour Court dated 19.2.2014 whereby the workmen have been awarded a lump-sum amount of compensation of Rs. 50,000/- except petitioner No. 1-Shri Narendra Kumar who has been awarded compensation to the extent of Rs. 6524/-.

3. The employer in this case is a sugar industry and it engages labour/workmen on the basis of categorization made in the Standing Order.

4. The case is of the petitioners is that they were engaged by the industry and work was taken from them and despite the fact that they had completed 240 days work, their services were orally terminated in the year 1992 without following due process of law and in violation of the provisions of U.P. Industrial Disputes Act-1947 (in short 'the Act-1947').

5. Reference was made to the Labour Court and the case was registered as Adjudication Case No. 38 of 1999 as the leading case alongwith various connected matters and the Labour Court, by impugned award dated 31.5.2002, held that termination of services of the workmen was contrary to law and relief in terms of reinstatement of all the 10 workmen with continuity in service alongwith 50% backwages was awarded. The employer-M/s. Triveni Engineering Works Ltd., Sugar Unit-Khatauli, District-Muzaffarnagar challenged the aforesaid award by filing Writ Petition No. 35990 of 2002 (Triveni Engineering & Industries Ltd. v. Presiding Officer, Labour Court (I), U.P. Meerut and others) which was allowed by this Court by order dated 9.4.2007 wherein this Court observed that the workmen had failed to discharge the primary obligation of establishing necessary facts for applicability of Section 6-N of the Act-1947 and, therefore, the award was found to be unsustainable.

6. This Court, while allowing the writ petition and setting aside the award, remanded the matter to the Labour Court to re-examine the issue as to whether conditions required for applicability of Section 6-N of the Act had been fulfilled or not and to make its award accordingly.

7. Another part of the order dated 9.4.2007 passed by this Court is that the nature of services of the workmen was also gone into by this Court and it was observed that action of the employer in refusing work to the workmen w.e.f. 7.3.1992 cannot be said to be illegal, particularly in the facts when the workmen did not contend that they were permanent employees of the industry.

8. The submission of learned counsel for the petitioners is that after remand, the Labour Court has recorded a clear finding in favour of the petitioners-workmen that they had completed 240 days of working in the industry, however, the Labour Court, instead of directing reinstatement with backwages, has erred in awarding compensation only. Learned counsel has placed reliance upon decision of Apex Court in the case of Bhuvnesh Kumar Dwivedi v. Hindalco Industries Ltd., 2014 (11) SCC 85, in which, the Supreme Court, after considering various Authorities, laid down the principles of award with backwages alongwith relief of reinstatement. Learned counsel further argued that insofar as aspect relating to gainful employment is concerned, the Labour Court has recorded a perverse finding that petitioner No. 1-workman did not state that he was unemployed and that he could not get any work. In support of his submission, learned counsel has referred to the award and oral statement of petitioner No. 1-workman.

9. Per contra, learned Standing Counsel has supported the award stating that the award has been passed in pursuance of the directions issued by the Writ Court in the previous round of litigation and, therefore, there is no illegality in the impugned award.

10. Shri Diptiman Singh, learned counsel for the

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