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2026 Supreme(Raj) 401

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR 
ASHOK KUMAR JAIN, J. 
Vijay Kumar Yogi, S/o. Shri Ramnath Yogi – Petitioner
Versus 
The Chairman, Municipal Board, Hindaun City – Respondent
S.B. Civil Writ Petition No. 18559 of 2017 
Decided On : 24-03-2026

Advocates Appeared:
For the Petitioner: Mr. Lucky Sharma Mr. Ayush Goyal
For the Respondent: Mr. Himanshu Jain for Mr. Jinesh Jain

Reinstatement is not an automatic consequence of illegal termination. In cases involving short-duration contractual employment, courts exercise discretion to award fair monetary compensation in lieu of reinstatement, considering the nature of the engagement and the time elapsed since the termination.

Headnote:(A) Industrial Disputes Act, 1947 - Termination of service - Relief - Reinstatement is not an automatic consequence when termination is declared illegal - Courts should consider duration of service, nature of employment, and time lapsed since termination - Monetary compensation may be granted in lieu of reinstatement where the service period is short. (Paras 6, 7, 8)

(B) Appellate Jurisdiction - Labour Court Award - Modification of award - Where reinstatement is denied due to short duration of contractual service, the Court may award lump sum compensation to ensure a just and equitable resolution. (Paras 9, 10, 11)

Facts of the case:
The petitioner, a former contractual worker, challenged a labor court award which declared his termination illegal but only granted modest compensation in lieu of reinstatement. The petitioner sought full reinstatement with continuity and back wages, contending that the termination was illegal. The respondent argued that because the petitioner's engagement was of a short duration and purely contractual, the lump sum compensation already awarded was sufficient.

Findings of Court:
The court determined that while the termination was properly adjudicated as unfair, the nature of the employment and its short duration did not warrant mandatory reinstatement. Established judicial principles dictate that monetary relief is an appropriate alternative when reinstatement is not deemed suitable. The court modified the existing award to provide a higher, more equitable lump sum compensation in place of reinstatement.

Issues: Whether the finding of an illegal termination automatically entitles a workman to reinstatement or whether the court can legitimately exercise discretion to grant lump sum compensation based on the duration of service and nature of employment.

Ratio Decidendi: Reinstatement is not a mechanical consequence of finding a termination illegal; rather, it is subject to considerations of the duration of service, the nature of the appointment, and the passage of time since the termination. In cases of short-term contractual service, awarding sufficient monetary compensation is a more appropriate and balanced remedy.

Result: Petition partly allowed; award modified to grant enhanced lump sum compensation in lieu of reinstatement.

Table of Content
1. overview of petition, arguments, and respondent's defense. (Para 1 , 2 , 3)
2. established facts of contractual employment and labor court findings. (Para 4 , 5)
3. reinstatement is not an automatic remedy for termination. (Para 6 , 7 , 8)
4. compensation in lieu of reinstatement based on duration. (Para 9 , 10 , 11 , 12)

ORDER :

ASHOK KUMAR JAIN, J.

1. The instant writ petition is filed by the petitioner with following prayer:-

“It is, therefore, most humbly and respectfully prayed that your lordships may very graciously be pleased to admit/allow this writ petition and be further pleased to issue a writ of certiorari or any other appropriate writ, order or direction in the nature thereof:-

(i) declaring the impugned award dated 21.7.2017 passed by the learned Labour Court Bhratpur to the extent it declined to order reinstatement of the petitioner in service with continuity and back wages as illegal and unconstitutional and the same may kindly be quashed and set-aside /modified suitably;

(ii) directing the respondents to reinstate the petitioner in service with continuity and full back wages;

(iii) any other appropriate order or direction which this Hon'ble Court may deem just and proper in the facts and circumstances of the case may kindly also be passed in favour of humble petitioner including award of cost of this writ petition."

2. Learned counsel for the petitioner while placing reliance upon the order in case of Principal Medical and Health Officer, General Hospital, Alwar Vs. Bharat Singh and Anr. : S.B. Civil Writ Petition No. 12803/2019, decided on 30.01.2023, has submitted that the Labour Court has decided the issue of termination in favor of the petitioner as the termination order dated 01.08.1997 was declared as unfair and illegal, but it has awarded lump sum compensation of Rs. 25,000/-. He submitted that there is no fault of the petitioner in pursuing the remedy therefore, the petitioner is entitled for reinstatement. He further referred judgment in case Amit Kumar Dubey vs. M.P.P.K.V.V. Company Limited and another , Civil Appeal No. 1198/2025 arising out of SLP (Civil) Nos. 20902/2024 and further followed by a Co-ordinate Bench of this Court in S.B. Civil Writ Petition No. 12614/2025, Radheyshyam Vs. Social Welfare Officer decided on 16.09.2025 and submitted that in case reinstatement is not granted, then the writ petition be disposed of in light of aforementioned judgment.

3. Learned counsel for the respondents has opposed the prayer made by learned counsel for the petitioner and submitted that the Labour Court has considered a fact that the petitioner was engaged for a very short period and same was not a regular appointment. He further submitted that as per record, the petitioner has worked for 167 days in contractual capacity and there is no written agreement between them. He also submitted that the findings recorded by the Labour Court about the duration is contrary to the record submitted by the respondents. At last, he submitted that for a work of shorter duration, a person is not entitled for reinstatement. He also submitted that the respondents have not challenged the award passed on 21.07.2017, but a lump sum compensation of Rs. 25,000/- in such circumstances is sufficient and the petitioner is not entitled for any other relief.

4. Heard learned counsel for the parties and perused the material placed on record. Also considered the judgments as referred by learned counsel for the petitioner.

5. Admittedly, the petitioner was engaged in contractual capacity as Electrical Lineman and his services were terminated on 01.08.1997. A reference is made to the Labour Court as conciliation between the parties have failed. Learned Labour Court in its award dated 21.07.2017 has declared the termination order of the petitioner dated 01.08.1997 as unfair and illegal. The respondents have not challenged the award. As per Labour Court, the petitioner has worked from 01.08.1996 to 31.07.1997 and the period is one

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