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2026 Supreme(Del) 672

IN THE HIGH COURT OF DELHI AT NEW DELHI
MANOJ KUMAR OHRI, J.
M/s Swan Agencies - Petitioner
Versus
Sh. Mohan - Respondent
W.P.(C) No. 10119 of 2023
Decided On : 26-05-2026

Advocates:
Advocate Appeared:
For the Petitioner: Mr. Om Prakash Gupta.

Writ jurisdiction is restricted to cases of perversity or lack of jurisdiction. Additionally, an employer's failure to produce requested material evidence, such as attendance records, allows the court to draw an adverse inference regarding the existence of an employment relationship.

Headnote:(A) Industrial Disputes Act, 1947 - Constitution of India - Article 226 - Writ jurisdiction - Scope of interference - Interference is warranted only where the impugned order is without jurisdiction, perverse, or passed in violation of the principles of natural justice - An order is not to be interfered with simply because another view is possible. (Para 7)

(B) Evidence - Adverse inference - Employer-employee relationship - Where an employer fails to produce material documents like biometric attendance records despite court directions, an adverse inference against the employer regarding the existence of an employment relationship is permissible. (Para 6)

(C) Relief - Termination - Lump sum compensation - Given the significant lapse of time between the date of termination and the adjudication of the dispute, granting lump sum compensation in lieu of reinstatement and back wages is a reasonable exercise of discretion by the labor court to balance equities. (Para 8)

Facts of the case:
The respondent claimed to have worked as a delivery man and alleged that their services were terminated illegally following a dispute regarding minimum wages and alleged mistreatment by management. The management denied the existence of an employer-employee relationship. During the proceedings, the management was ordered to produce biometric attendance records but failed to do so, claiming the records were unavailable. The labor court, noting the failure to lead evidence or produce records, concluded the termination was illegal and awarded lump sum compensation instead of reinstatement.

Findings of Court:
The court found that the management failed to lead evidence to rebut the workman’s claim or produce relevant records, justifying an adverse inference. Finding no perversity in the order of the labor court, the court upheld the award of compensation.

Issues: The central issues were the proof of an employer-employee relationship in the absence of written records, the validity of the termination, and whether the labor court’s award of lump sum compensation was justified in the exercise of writ jurisdiction.

Ratio Decidendi: When an employer withholds the best evidence in their possession despite being directed to produce it, an adverse inference can be drawn. The high court's writ jurisdiction is limited to correcting jurisdictional errors or manifest perversity, not to re-evaluating evidence as an appellate authority.

Result: Petition dismissed.

Table of Content
1. establishing employer-employee relationship and industrial dispute procedure. (Para 1 , 2 , 3 , 4 , 5)
2. adverse inference drawn due to employer's failure to produce employment records. (Para 6 , 7 , 8)
3. final adjudication and dismissal of the writ petition. (Para 9 , 10)

JUDGMENT :

1. The present writ petition has been filed by the management/petitioner challenging the Award dated 23.03.2023 passed by the learned Labour Court in LIR No. 1947/2017, whereby the claim application filed by the workman/respondent was allowed.

2. Briefly stated, the workman/respondent raised an industrial dispute before the Labour Commissioner, GNCTD. However, the conciliation proceedings remained unsuccessful and the dispute was referred to the Labour Court with the following terms of reference:-

“Whether employer-employee relationship ever existed between workman Shri Mohan S/o Shri Banwari and management and if so, whether his services have been terminated illegally and/or unjustifiably by the management; and if so, to what relief is he entitled and what directions are necessary in this respect?”

3. The workman filed his statement of claim stating that he was employed with the management as a ‘Delivery Man’ since 01.06.2008 and that his last drawn salary was Rs. 6,500/- per month. It was further alleged that the management was paying wages less than the minimum wages fixed by the Government and, when the same was demanded, the management developed a grudge against him. It was further alleged that on 09.04.2014, while the workman was performing his duties, one Raj Kumar, the Manager, abused and assaulted him, pursuant to which a DD entry was lodged against the Manager at P.S. Kirti Nagar. The said act allegedly infuriated the management and, when the workman reported for duty thereafter, Sh. Sandeep Malhotra, partner of the management, did not allow him to work and terminated his services on the same day i.e., 09.04.2014.

The workman further claimed that during the course of his employment he was not provided legal facilities such as appointment letter, minimum wages, wage slips, leave book, attendance card, ESI and PF facilities, etc. It was also stated that a demand notice dated 13.10.2016 (mentioned as 14.10.2016 in the impugned award) was sent by the workman through registered and speed post however, the management failed to respond to the same. The workman further claimed that he had worked for more than 240 days in each calendar year till the date of termination and accordingly sought reinstatement with continuity of service and full back wages.

4. The management appeared and contested the claim and denied the existence of any employer-employee relationship with the workman. The workman examined himself as WW-1 and tendered his evidence by way of affidavit (Ex. WW1/A). In the said affidavit, the workman reiterated the contents of the statement of claim and relied upon the following documents:-

(1) Ex.WWl/1 is copy of demand notice dated 13.10.2016.

(2) Ex.WWl/2 and Ex. WW-1/3 are postal receipts in respect of dispatch of demand notice.

5. In his cross-examination, the workman denied the suggestion that he was never employed with the management and clarified that no employment record was available with him and therefore none could be filed. In support of his claim, the workman, on 27.01.2020, had also summoned one Mandeep, Data Entry Operator from the Office of the Joint Labour Commissioner, District West, Karam Pura, New Delhi, however, the said witness was subsequently dropped. The management, on its part, did not lead any evidence.

6. While passing the impugned Award, the Labour Court took note of the fact that during the pendency of the proceedings, the workman had moved an application under Section 11 of the Industrial Disputes Act, 1947 seeking production of certain documents, which application was allowed and the management was directed to produce the biometric attendance record before the Court. The management, however, file

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