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2023 Supreme(All) 2759

IN THE HIGH COURT OF ALLAHABAD
PIYUSH AGRAWAL, J.
Smt. Vidya Rawat - Petitioner
Versus
State of U.P. and Others - Respondents
WRIT - C NO. - 11692 OF 2007.
Decided On : 08-08-2023

Advocates appeared:
For the Petitioner:Y.K. Sinha and Akshat Sinha, Advocates.
For the Respondent:C.S.C.,Vivek Ratan Agrawal, Advocate.

Headnote:(A) Industrial Disputes Act, 1947 - Section 6-N and 6-H(1) - Writ petition challenging Labour Court's award - The petitioner was terminated illegally without due process and reinstatement was ordered, but back wages were not awarded - The court highlighted that reinstatement should ordinarily lead to back wages unless proven otherwise. (Paras 4, 8, 23)

(B) Principle of Back Wages - The Supreme Court held that when an employee's termination is found illegal, they are entitled to back wages from the date of termination until reinstatement unless the employer proves alternative gainful employment. (Paras 18-20)

(C) Right to Livelihood - The court reinforced that the right to life under Article 21 of the Constitution includes a right to livelihood, and arbitrary denial of back wages results in deprivation of this right. (Paras 22, 23)

Facts of the case:
The petitioner was appointed in 1985 and terminated in 1993 without just cause or opportunity, leading to a legal challenge. The Labour Court reinstated her but denied back wages without justification.

Findings of Court:
The court found that back wages were rightly due to the petitioner following her illegal termination.

Issues: Whether the Labour Court's refusal to award back wages was justified and lawful.

Ratio Decidendi: The court asserted that failure to award back wages upon reinstatement violates the principles established by precedent, as back wages naturally follow the nullification of an illegal termination.

Result: Writ petition allowed, directing that back wages be awarded.

Table of Content
1. challenge of termination without back wages. (Para 3 , 4)
2. consequences of illegal termination and entitlement to back wages. (Para 6)
3. modification of award to include back wages. (Para 8 , 9 , 10)

JUDGMENT

Piyush Agrawal, J.

List has been revised. No one appears on behalf of the respondent no. 3.

2. Heard Shri Akshat Sinha, learned counsel for the petitioner and learned Standing Counsel.

3. The instant writ petition has been filed challenging the award dated 25.06.2006 passed by the Labour Court, 1st, Ghaziabad in Adjudication Case No. 240 of 1994 so far as it has not awarded back wages to the petitioner and grant full back wages from the date of termination till the actual reinstatement.

4. Learned counsel for the petitioner submits that the petitioner was appointed as Assembly Girl by the respondent no. 3 on 19.11.1985. On 14.08.1993, she was terminated from service without any opportunity of hearing or paying retrenchment compensation to her. Thereafter, a reference was made. After exchange of pleadings and evidence, the Labour Court, vide impugned award dated 25.06.2006, has held that the order terminating the services of the petitioner is illegal and directed for reinstatement of the petitioner in service, but did not award any back wages to the petitioner without assigning any reason. He further submits that the said award has not been challenged by the respondent no. 3 and she is discharging her duties without there being any complaint. He further submits that the Labour Court has not properly and legally considered the question of back wages while passing the award. He prays for allowing the writ petition.

5. After hearing the learned counsel for the petitioner, perused the record.

6. In the award, the order of termination was found illegal and therefore, the petitioner was reinstated. The Labour Court has recorded the argument of both the side and in paragraph no. 14, the arguments and pleadings of the petitioner have been recorded, in which prayer of the petitioner for reinstatement along with back wages has also been recorded. The award was passed holding the termination order as bad and directed for reinstatement of the petitioner. Further, the respondent no. 3 has never challenged the award. If a termination order is set aside being illegal, the consequence would be that the order of termination was never passed and therefore, reinstatement in service with full back wages is the natural consequence of setting aside the order of termination. The Apex Court in State of U.P. v. Charan Singh [2015 AIR SCW 2615] has made the following observations:-

    "17. In the present case, there has been an absence of cogent evidence adduced on record by the appellant to justify the termination of the services of the respondent-workman, who has been aggrieved by the non-awarding of back wages from the date of termination till the date of passing the Award by the Industrial Tribunal. There is no justification for the Industrial Tribunal to deny the back wages for the said period without assigning any cogent and valid reasons. Therefore, the denial of back wages to the respondent even though the Industrial Tribunal has recorded its finding on the contentious question no.1 in the affirmative in his favour and in the absence of evidence of gainful employment of the respondent during the relevant period, amounts to arbitrary exercise of power by the Industrial Tribunal for no fault of the respondent and the same is contrary to law as laid down by this Court in a catena of cases. Hence, it is a fit case for this Court to exercise its power under Order XLI Rule 33 of the Civil Procedure Code, 1908, to award back wages to the respondent, even though the respondent has not filed a separate writ petition questioning that portion of the Award wherein no back wages were awarded to him by the Courts below for the relevant period. The respondent has got a right to place reliance upon the said provision of the Civil Procedure

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