A court may set aside an ex parte award and allow a party to contest the matter on merits provided they compensate the opposing party for costs incurred due to the default in appearance.

JUDGMENT

This writ petition has been filed challenging Exhibit P6 Award dated 23.09.2025 in I.D. No.23 of 2024 on the file of the Labour Court, Kozhikode.

2. It is the case of the petitioner that due to circumstances beyond his control, he could not contest the matter before the Labour Court and he was declared ex parte. It is submitted that the Labour Court has directed the reinstatement of the 2nd respondent with backwages, continuity of service and all other attendant benefits. It is submitted that, the petitioner may be given one opportunity to contest the matter on merits before the Labour Court.

3. The learned counsel appearing for the 2nd respondent submits that the petitioner received summons from the Labour Court and engaged a counsel, who filed Vakkalathnama in the matter. It is submitted that despite engaging a counsel, no objections were filed by the petitioner and there was repeated default in appearance before the Labour Court as well. It is submitted that, it is in such circumstances that the Labour court had declared the management ex parte and had proceeded to decide the matter. It is submitted that, the 2nd respondent is a resident of Vadakkanchery and the proceedings were before the Labour Court at Kozhikode and that the 2nd respondent had to travel all the way to Kozhikode to attend the court proceedings. It is submitted that, the 2nd respondent had been out of employment since 28.12.2020.

4. Having heard the learned counsel appearing for the petitioner and the learned counsel appearing for the 2nd respondent, I am of the view that the petitioner has not made out any case for setting aside the ex parte Award. Admittedly, the petitioner received summons, engaged counsel (who also filed Vakalathnama on behalf of the petitioner). Thereafter, there was consistent default on the part of the petitioner in appearing before the Labour Court, as a result of which, the matter was decided ex parte and an Award was passed directing reinstatement of the 2nd respondent with backwages, continuity of service and all other attendant benefits. Therefore, if the Award is to be set aside, the same can only be subject to payment of costs to the 2nd respondent.

5. Having regard to the facts and circumstances of the case, I am of the opinion that subject to payment of costs, the petitioner can be given one opportunity to contest the matter on merits.

Accordingly, the writ petition is allowed. Exhibit P6 Award dated 23.09.2025 in I.D. No.23 of 2024 will stand set aside. This shall be subject to the condition that the petitioner pays to the 2nd respondent a sum of Rs.20,000/- (Rupees Twenty thousand only) as costs within a period of one month from today. The petitioner and the 2nd respondent shall appear before the Labour Court, Kozhikode at 11.00 a.m. on 30.07.2026. If the petitioner produces proof of having paid costs within the time specified, the Labour Court, Kozhikode shall proceed to adjudicate the matter afresh, after affording an opportunity of hearing to the petitioner and to the 2nd respondent. If the petitioner fails to pay costs within the time specified, the award dated 23.09.2025 will continue to operate.

Writ petition is ordered accordingly.