MP High Court : Delayed Reinstatement by MPRTC Breached Labour Court Award, Criminal Offence

A dismissed workman waited more than three years after his reinstatement order before the employer actually took him back. The High Court of Madhya Pradesh has now held that such delay was itself a criminal breach of the Labour Court award.

Justice Vivek Jain, sitting at Jabalpur, ruled that MPRTC 's failure to comply with the one-month deadline fixed by the Labour Court made its officers liable under Section 29 of the Industrial Disputes Act, 1947 . The Court set aside the Executing Court 's order closing the proceedings and directed MPRTC to pay the workman wages from 5 April 2015 to 26 July 2018 .

Award Followed by a Long Silence

The dispute began when workman Suresh Chandra Jatav was dismissed by MPRTC . The matter was referred to the Labour Court , which on 4 March 2015 held that the termination was bad in law and directed reinstatement without back wages within one month.

MPRTC did not comply. Instead, it challenged the award in a writ petition before the High Court in 2016 . That petition was dismissed only on 9 July 2024 . In the meantime, the workman was eventually reinstated on 27 July 2018 — almost three years and four months after the award.

When the workman sought execution, he raised the question of wages for the period from the date of the award to the date of actual reinstatement. The Executing Court closed the proceedings on 30 October 2025 , reasoning that the award only directed reinstatement without back wages , and any further relief would amount to going behind the decree .

The Corporation's Defence

MPRTC defended the Executing Court 's order, arguing that an executing court is bound by the terms of the decree and cannot add to it. Since the Labour Court did not award post-award wages , the Executing Court had no jurisdiction to grant them, the Corporation submitted.

The High Court rejected that approach in the context of industrial adjudication. It pointed out that Labour Courts decide " industrial disputes ," not merely litigation between two parties. The larger objective is to maintain industrial peace and harmony . The Court relied on Workmen of M/S Firestone Tyre & Rubber Co. of India (P) Limited v. Firestone Tyre & Rubber Company , where the Supreme Court observed that a Labour Court must adjudicate the merits of the dispute rather than mechanically set aside a termination.

A Delayed Award is Not Compliance

The Court found the factual timeline decisive. The Labour Court had expressly fixed one month for compliance. Since MPRTC complied only after three years and four months, the Executing Court could not treat the matter as closed.

"If no time limit had been fixed for compliance of the order, then it could be said that the question of post award wages and post award late compliance cannot be considered by the Executing Court . However in the present case, the award did have the time limit for compliance..."

The Court also observed:

"The workman cannot be advised to initiate fresh litigation for the inaction of the employer whereby the employer without no just cause at all has decided not to comply with the award for a long time even after the award was passed."

Criminal Consequence Under Section 29

The judgment goes further and labels the delayed compliance a criminal offence . Section 29 of the Industrial Disputes Act punishes breach of a settlement or award with imprisonment up to six months, or fine, or both, and a further fine of up to Rs 200 per day for a continuing breach .

"The breach of award of Labour Court is a criminal offense and instead of proceeding criminally against the officers of MPRTC , the Executing Court has even closed the execution proceedings ."

What the High Court Ordered

The High Court set aside the Executing Court 's order and directed MPRTC to pay wages from 5 April 2015 , one month after the award, to 26 July 2018 , the day before reinstatement, within thirty days. If MPRTC fails to pay, the Executing Court must refer the matter to the Labour Court to take cognizance against all Managing Directors of MPRTC who were posted from 4 March 2015 till date, for prosecution under Section 29 . The Executing Court was also directed to ensure recovery of the amount.

The ruling serves as a reminder to public sector employers that awards of Labour Courts are not mere decrees to be executed at leisure; a failure to honour a time-bound direction in an award carries real consequences.

Case Title: Suresh Chandra Jatav v. Madhya Pradesh Road Transport Corporation and Others | Civil Revision No. 31 of 2026 Bench: Justice Vivek Jain Date of Order: 11 August 2026