An award by the Labour Court attains finality upon withdrawal of a challenge, validating recovery orders for unpaid compensation.

ORAL ORDER

1. Rule, returnable forthwith. Learned advocate Mr.Chaudhari waives service of notice of Rule on behalf of the respondent No.1.

2. This petition is filed challenging the award passed by the learned Presiding OfÏcer, labour court No.2, Ahmedabad in Reference (LCA) No.369 of 2004 dated 30.11.2021 with order dated 01.04.2023 passed in Recovery C1 Application No.10 of 2022.

3. This Court has heard the learned advocates for the respective parties.

4. It transpires from the record that, the award passed by the learned Presiding OfÏcer, labour Court No.2, on 30.11.2021 directing the present petitioner to pay the lumpsum compensation of Rs.2,00,000/- was challenged before this Court by way of filing the petition being Special Civil Application No.7215 of 2022. During the pendency of the petition, the recovery proceedings were initiated as there was no stay granted by this Court therefore, challenging the order passed in recovery application No.10 of 2022 the application being Civil Application No.1 of 2023 was filed praying to stay of the order passed in Recovery C1 application No.10 of 2022.

5. After hearing the parties, this Court has passed the following order on 05.09.2023:

“1. The present application (for interim relief) is filed by the petitioner- company to stay implementation, execution and operation of the order dated 01.04.2023 in Recovery Application (C-1) No. 10 of 2022 passed by the Labour Court, Ahmedabad, wherein the lump-sum amount of Rs.2,00,000/- has been awarded to the workmen.

2. As the Company is closed, there is no question of reinstatement the workmen, who has filed recovery application before the Labour Court, the Labour Court has also passed an order in favour of the workmen.

3. Learned advocate Mr. Devdip Brahmbhat for the petitioner- Company is hereby directed to take necessary instructions from the company for compliance of the order dated 01.04.2023 passed in Recovery Application (C-1) No. 10 of 2022.

4. The matter is adjourned to 04.10.2023.”

6. This court has directed in the above order to comply with the order dated 01.04.2023 passed in recovery application No.10 of 2022, instead of complying with the said order, the petition itself was withdrawn by the petitioner wherein the following order was passed on 26.02.2024:

“ Learned advocate for the petitioner states that during pendency of the petition, the order dated 01.04.2023 has been passed in Recovery (C-1) Application No. 10 of 2022. In view of this, he seeks permission to withdraw this petition to challenge the order in Recovery application.

Permission prayed for is granted.

Petition stands disposed of as withdrawn. Notice discharged.

In view of the above, Civil Application also stands disposed of.

It is made clear that this Court has not gone into the merits of the matter.”

It is required to be noted herein that the above petition was withdrawn with a view to challenge the order passed in recovery application.

7. This court is of the view that the award passed by the learned labour Court awarding the compensation to the respondent No.1 though challenged however, subsequently the petition was withdrawn, therefore, the same attains the finality and therefore, in that view this petition challenging the same award cannot be entertained.

8. So far as the challenge with regard to the order passed by the learned labour Court in Recovery C-1 Application No.10 of 2022 dated 01.04.2023 is concerned, the application is filed claiming that though the amount is awarded of Rs.2,00,000/- towards lump-sum compensation by the learned labour Court in Reference (LCA) No.369 of 2004, the said amount is not paid and therefore, learned labour Court has directed the petitioner to pay the said amount with 9% interest from 31.12.2021 till the realisation and to recover the same in the manner as an arrears of the land revenue, the certificate is issued and was directed to send to the Collector, Alien Recovery.

9. At this stage the reference of Section 33C(1) is required to be made,