SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2026 Supreme(Online)(Mad) 34610

IN THE HIGH COURT OF JUDICATURE AT MADRAS
M.Dhandapani, J
The Management of Sripak Logistics (P) Ltd. – Appellant
Versus
G.Vasu – Respondent
W.P.Nos.24887 to 24891 of 2018|WMP.Nos.28930 to 28934 of 2018 and 8737 & 8740 of 2021



Advocates:
For Petitioner: M/s.P.Subba Reddy
For Respondent(s): Mr.K.V.Ananthakrushnan

Adverse inference from non-production of employment records confirms employee status; illegal termination without procedure warrants compensation.

Headnote:The management challenged labour court awards under Article 226, claiming no employer-employee relationship with drivers paid on contractual basis. Labour court found workmen as employees based on lack of denial and non-production of records by management, awarding compensation for illegal termination without due process. High Court upheld awards, directing payment within two weeks with 9% interest. Issues framed around existence of employment relationship and legality of termination. Ratio: Absence of documentary evidence, failure to deny employment in pleadings, and non-production of records led to adverse inference; termination without notice or enquiry held illegal, justifying compensation in lieu of reinstatement. Writ petitions dismissed, confirming labour court awards dated 29.06.2018 in I.D.Nos.72, 71, 70, 68 & 69 of 2009.

Table of Content
1. workmen claimed illegal termination after denied wages; labour court awarded compensation. (Para 2 , 3 , 4)
2. management denied employment; workmen cited lack of evidence from management. (Para 5 , 6)
3. no denial of employment or records led to adverse inference confirming employee status and illegal termination. (Para 7 , 8 , 9)
4. awards upheld with payment direction and interest; petitions dismissed. (Para 10 , 11 , 12)

COMMON ORDER

Since the issue involved in all these Writ petitions are similar in nature, they are disposed of by way of this common order.

2. For brevity, the petitioner in all these Writ Petitions are hereinafter referred to as the 'management' and the respondent in all these Writ petitions are hereinafter referred to as the 'workmen'. The respondent/workman in W.P.No.24889 of 2018 passed away and his legal heirs are brought on record as Respondents 2 to 4 in the said writ petition.

3. These Writ petitions have been filed seeking quashment of the impugned awards all dated 29.06.2018 made in I.D.Nos.72, 71, 70, 68 & 69 of 2009 respectively on the file of the III Additional Labour Court, Chennai.

4. The short facts necessary for disposal of these Writ petitions are as follows:-

It is the case of the workmen that they joined the services of the management as Drivers on a monthly salary of Rs.800/-, however, they have not been paid with the minimum wages, overtime wages and other welfare benefits and when the same was questioned by them, the management illegally terminated their services, against which the workmen herein raised industrial disputes in I.D.Nos.72, 71, 70, 68 & 69 of 2009 respectively and the III Additional Labour Court, Chennai, vide impugned awards all dated 29.06.2018 ordered for compensation to the tune of Rs.1,20,000/-, Rs.1,50,000/-, Rs.1,50,000/-, Rs.1,00,000/- and Rs.1,70,000/- respectively in favour of the respective workmen. Challenging the same, the management has come up with these Writ petitions.

5. Learned counsel appearing for the management submitted that there is no employer-employee relationship between the management and the workmen herein. The workmen herein are not permanent employees and though their names are found in the Drivers list maintained by the management, they have been engaged temporarily whenever necessity arises on contractual basis and after completion of their assignment, they will be paid 10% of the freight charges. While so, alleging that they were in continuous employment of the management as drivers, the workmen raised the present disputes and the Labour Court, without considering the fact that the workmen have miserably failed to establish the fact that they were permanent employees of the management, ordered for compensation in favour of the respective workmen, which is wholly unsustainable.

Accordingly, he prayed for appropriate orders.

6. Per contra, the learned counsel appearing on behalf of the workmen submitted that there is no evidence adduced by the Management before the Labour Court, denying the employment and the documents relating to engagement of Labourers/employees, which are in the custody of the Management were not produced before the Labour Court to substantiate that the workmen were not the employees of the Management and therefore, the Labour Court considered the evidence of the workmen and drawn adverse inference against the Management for non-production of oral and documentary evidence and came to the conclusion that the workmen herein are the employees of the Management and ultimately held that the termination of their services is illegal and ordered compensation in lieu of reinstatement, which cannot be said to be erroneous. Accordingly, he prayed for dismissal of these Writ petitions.

7. Heard the learned counsel for the parties and perused the materials available on record.

8. A perusal of the impugned order passed by the Labour Court reveals that no documentary evidence was marked either on the side of the Workmen or the M

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top