2025 Supreme(Online)(MAD) 6438
IN THE HIGH COURT OF JUDICATURE AT MADRAS
A.D. Maria Clete, J.
Tamil Nadu Private Professional Colleges Association – Health Sciences - Petitioner
Versus
P.Ganesh Son of Periyasamy - Respondent
W.P.No. 20472 of 2020 and W.M.P.No. 25247 of 2020
Decided On : 25-02-2025
Advocate Appeared :
For the Petitioner : Mr. Abishek Jenasenan, Advocate, For M/s. Abishek Jenasenan, Aparajitha Vishwanath and Arun Dhanapalan, Advocates
For the Respondent : Mr.S.Sathish, Advocate, for M/s. S.Sathish, K.Rangesh and S.Meenakshi Sundaram, Advocates
For the Appellant :Mr. Abishek Jenasenan, Advocate For M/s. Abishek Jenasenan, Aparajitha Vishwanath and Arun Dhanapalan, Advocates
For the Respondent:Mr.S.Sathish, Advocate For M/s. S.Sathish, K.Rangesh and S.Meenakshi Sundaram, Advocates
Termination without compliance with Section 25-F of the Industrial Disputes Act is void ab initio, and compensation may be awarded in lieu of reinstatement.
Headnote:(A) Industrial Disputes Act, 1947 - Sections 2(oo) and 25-F - Writ petition challenging Labour Court's Award regarding non-employment of workman - Court found termination void ab initio due to non-compliance with mandatory provisions - Compensation of Rs. 5 lakhs awarded in lieu of reinstatement. (Paras 12, 13, 14)
(B) Termination - Validity - Termination simpliciter without notice or compensation constitutes retrenchment under Section 2(oo) - Employer's failure to substantiate misconduct allegations renders termination invalid. (Paras 13, 14)
Facts of the case:
The writ petitioner, an educational agency, challenged the Labour Court's Award which held the non-employment of the Respondent invalid but awarded compensation instead of reinstatement. The Respondent was terminated after allegations of misconduct, which were not substantiated. (Paras 2, 4, 12)
Findings of Court:
The Labour Court concluded that the management's inconsistent positions and lack of evidence for misconduct rendered the termination void ab initio, awarding Rs. 5 lakhs as compensation. (Paras 11, 12)
Issues: The main issues were the validity of the termination and whether the Labour Court's decision to award compensation instead of reinstatement was justified. (Paras 12, 14)
Ratio Decidendi: The court ruled that termination without adherence to Section 25-F of the Industrial Disputes Act is void ab initio, and the Labour Court's discretion to award compensation was upheld. (Paras 13, 14)
Result: Writ petition dismissed.
| Table of Content |
|---|
| 1. writ petition challenging labour court's award (Para 2 , 3 , 4) |
| 2. workman's termination and compensation (Para 5 , 6 , 7 , 8 , 9 , 10) |
| 3. labour court's findings on evidence (Para 11 , 12 , 13) |
| 4. termination void ab initio (Para 14 , 15 , 16) |
JUDGMENT :
A.D. Maria Clete, J.
Heard.
2. The writ petitioner, an educational agency managing multiple educational institutions and registered as a society under the Tamil Nadu Societies Registration Act, with its headquarters in Chennai, has filed the present writ petition challenging the Award passed by the II Additional Labour Court, Chennai, in I.D. No. 101/2011 dated 06.11.2019. By the said Award, the Labour Court held that the non-employment of the Respondent was not valid. However, instead of ordering reinstatement, it directed the payment of compensation in lieu of reinstatement, quantified at Rs. 5 lakhs, to be paid within three months.
3. The writ petition was admitted on 06.01.2021, and an interim stay on the operation of the Award was granted. Upon notice, the Respondent entered an appearance through their counsel.
4. It is seen from the records that the Respondent workman was appointed as a Data Entry Operator on probation with effect from 31.01.2005. Upon successfully completing his probation, he was designated as a Junior Assistant with a salary of Rs. 4,500 per month. However, by an order dated 16.04.2009, after completing four years of service, he was relieved from his position. It is further noted that another individual, reportedly a close relative of the Administrative Manager of the Petitioner Society, was appointed in his place.
5. The workman issued a legal notice on 22.01.2010, requesting that his termination order be set aside and that he be reinstated in service. As no response was received, he raised an industrial dispute before the Labour Officer-III under Section 2A(2) of the Industrial Disputes Act through his letter dated 09.04.2010. It was contended on his behalf that the termination was invalid, as it violated Section 25-F of the Industrial Disputes Act, given that he was neither provided with prior notice nor compensated for the services rendered.
6. The management appeared before the Conciliation Officer and filed an objection statement dated 16.08.2010. As this represents the petitioner management's initial stance on the matter, it is necessary to extract the relevant portion from their objection statement detailing the reasons for the workman’s termination:
“TNPPCA-HS is functioning for the admission purpose of the management seats in Self-Financing colleges. Our work nature includes time bound duties. Mr.Ganesh who was working as Data Entry Operator from 31.01.2005 till 15.04.2009. He was warned earlier on many occasions with many allegations as such 1. Dereliction in duty 2. Showing Disrespect to superiors 3. Talking obscene to fellow staffs 4. Frequently attends office late. On 16.04.2009, when the same allegations were reported to our Administrative Officer and when he was questioned, he threw the office key on the Administrative Officer’s table and left the office abusing in filthy language. He didn’t turn up to office for 2 days without any sanctioned leave or prior permission, after that we intimated him through our staffs to come to office to meet the Secretary. But he had neither met him nor sent any apology letter to our office. Hence, we had issued Charge memo to him on 20.04.2009 from our office, and a reminder were also sent on 27.04.2009. But no reply has been received from him.
Our season work has started and his unauthorized absence made us to relieve him from his duties on 16.04.2009 ie. from the date he left the office illegally by an order dated 05.05.2009. His duty salary has also been paid without any pending.
Our’s is a time bound work and after one month we have selected a candidate for his place with proper recruiting procedure.”
7. As the Conciliation Officer was unable to mediate a settlement, he recorded the failure o