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2025 Supreme(Online)(Guj) 13447

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Hemant M. Prachchhak, J
NANABHAI HIRABHAI PAGI – Appellant
Versus
DEPUTY EXECUTIVE ENGINEER – Respondent
R/SPECIAL CIVIL APPLICATION NO. 3558 of 2023 | R/SPECIAL CIVIL APPLICATION NO. 24793 of 2022



Advocates:
For the Appellants/Petitioners: Dipak R. Dave
For the Respondents: Sweety Samara

In cases of illegal termination where the employee has rendered long service and reached superannuation, the court should grant continuity of service until the date of retirement and all consequential retiral benefits rather than mere lump sum compensation.

Headnote:The matter pertains to the Industrial Disputes Act, 1947, specifically regarding the entitlement of a workman to continuity of service and retiral benefits upon reaching superannuation. The petitioner, having rendered 26 years of service, challenged a Labour Court award that granted a lump sum compensation of Rs. 1,50,000 instead of reinstatement, on the grounds that the petitioner had already reached the age of superannuation. The court found that the Labour Court erred in granting mere compensation for a long-term employee. The central issue was whether an employee who has attained the age of superannuation should be granted continuity of service and consequential retirement benefits instead of lump sum compensation when the termination is found to be illegal. The court reasoned that based on judicial discipline and established precedents from coordinate and division benches, where the employer fails to produce essential evidence such as muster rolls and the employee has a long history of service, the appropriate remedy is to treat the service as continuous until the date of superannuation. The impugned award dated 13.05.2022 passed by the Labour Court, Godhra in Reference (T) No. 93 of 2014 is hereby modified and the respondent is hereby directed to consider the service of the petitioner, as continuous on the same line and treat the petitioner as workman in service till he reached the age of superannuation and pay all the retiral consequential benefits.

Table of Content
1. introduction of petitions challenging the labour court's award of compensation over reinstatement. (Para 1 , 2)
2. arguments regarding parity with other workmen and the sufficiency of evidence produced by the employer. (Para 3 , 4)
3. application of judicial discipline and reliance on coordinate and division bench precedents regarding continuity of service. (Para 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15)
4. modification of the award to grant continuity of service and retiral benefits until superannuation. (Para 16 , 17 , 18)

ORAL JUDGMENT

1. Rule returnable forthwith. Present petitions are filed by the employer as well as employee under Articles 14, 21, 226 and 227 of the Constitution of India read with the provisions of the Industrial Disputes Act, 1947 against the impugned award dated 13.05.2022 passed by the Labour Court, Godhra in Reference (T) No. 93 of 2014 with below mentioned relief/s in SCA/3558/2023:-

“(A) A writ of certiorari and/or a writ in the nature of Certiorari and / or any other appropriate writ, order of direction be issued to quash and set aside impugned award dated 13.05.2022 passed by Labour Court, Godhra, in Reference (T) No.93 of 2014 qua not allowing the Reference of the petitioner in full and further may be pleased to direct the respondents to reinstate petitioner in service with continuity and pay full back wages and all consequential benefits to the petitioner until the date of his retirement and after the date of retirement, petitioner may be held entitled to all the retirement benefits including pension, gratuity, leave encashment and other retirement benefits treating petitioner's service continuous;

(B) Pending the admission, hearing and final disposal of this petition, this Hon'ble Court may be pleased to direct respondents to confer pensionary benefits to the petitioner since the petitioner has reached age of superannuation.

(C) Any other and further relief or reliefs to which this Hon’ble Court deemed fit, in the interest of justice, may kindly be granted."

2. Heard Dipak R. Dave, learned Counsel for the petitioner and Ms. Sweety Samara, learned Assistant Government Pleader for the respondent.

3. Mr.Dipak R. Dave, learned Counsel for the petitioner submits that in case of the similarly situated workmen, who have been terminated by the respondent employer, serving in the same irrigation department, this Court vide order dated 14.2.2020/20.1.2020 allowed Special Civil Application No. 22362 of 2019 and allied petitions and granted benefits to the concerned workmen. It is submitted that in the similar cases of very department at very canal division in Special civil Application No.2205 of 2023, this court has while modifying award of lumpsum compensation granted relief of considering the service of the employee as continuous until he reached age of superannuation. Mr. Dave, learned Counsel for the petitioner has submitted that though the Labour Court has observed that the respondent has not produced any documents however, Labour Court has not considered this fact and therefore, while passing the impugned award the Labour Court has committed serious error and therefore, the impugned award passed by the Labour Court is erroneous, unjust, illegal. Mr. Dave, learned Counsel for the petitioner has submitted that the Labour Court has observed that all the issues are proved by the petitioner by material and cogent evidence however, merely on conjectures and surmises that the petitioner reached to the age of superannuation, the Labour Court has awarded lumpsum compensation to the tune of Rs.1,50,000/- which is bad in law and not in consonance with the settled legal principle.

3.1 Mr. Dave, learned Counsel for the petitioner, in support of his submissions, relied upon and referred to the decisions of the coordinate bench of this Court in Special Civil Application No.22362 of 2019 and allied petitions, Special Civil Application No. 4168 of 2022 with Special Civi

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