Bombay High Court Allows Workman's Petition in Industrial Dispute Challenging Termination and Denial of Back Wages. Termination Held Illegal for Non-Compliance with Section 25F of Industrial Disputes Act, 1947; Full Back Wages Granted as Employer Failed to Prove Gainful Employment.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

The petitioner, a workman employed by the Union of India through the Controller of Quality Assurance (Vehicles), Ministry of Defence, challenged his termination and the denial of back wages. The workman was appointed as a Driver on a temporary basis and his services were terminated without following the procedure under Section 25F of the Industrial Disputes Act, 1947. The Central Government Industrial Tribunal-cum-Labour Court (CGIT) held that the termination was illegal but denied back wages on the ground that the workman was not gainfully employed. The workman filed a writ petition under Articles 226 and 227 of the Constitution of India. The Bombay High Court examined the legality of the termination and the denial of back wages. The Court held that the termination was illegal due to non-compliance with Section 25F and that the employer failed to prove misconduct. The Court further held that the denial of back wages was not justified as there was no evidence that the workman was gainfully employed. The Court allowed the petition, set aside the award to the extent of denial of back wages, and directed the employer to pay full back wages with continuity of service and all consequential benefits.

Headnote

A) Industrial Law - Termination of Service - Section 25F of Industrial Disputes Act, 1947 - Compliance with Pre-conditions - The termination of a workman without payment of retrenchment compensation and one month's notice as required under Section 25F of the Industrial Disputes Act, 1947 is illegal and void ab initio. The employer must strictly comply with the pre-conditions before effecting retrenchment. (Paras 5-7)

B) Industrial Law - Domestic Enquiry - Burden of Proof - Misconduct - The burden to prove misconduct in a domestic enquiry lies on the employer. If the enquiry is held to be defective or not conducted properly, the employer must lead evidence before the Tribunal to justify the termination. Failure to do so renders the termination unsustainable. (Paras 4-6)

C) Industrial Law - Reinstatement - Back Wages - Section 11A of Industrial Disputes Act, 1947 - Discretion of Tribunal - While ordering reinstatement, the Tribunal has discretion to award back wages. However, back wages should not be denied arbitrarily. In the absence of any finding that the workman was gainfully employed during the period of termination, full back wages ought to be granted. (Paras 8-10)

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Issue of Consideration

Whether the termination of the workman was legal and justified, and whether the workman is entitled to reinstatement with full back wages and continuity of service.

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Final Decision

The High Court allowed the petition, set aside the award dated 01.02.2012 to the extent of denial of back wages, and directed the respondent to pay full back wages to the workman with continuity of service and all consequential benefits.

Law Points

  • Termination without compliance with Section 25F of Industrial Disputes Act
  • 1947 is illegal
  • Employer must prove misconduct in domestic enquiry
  • Workman entitled to reinstatement with continuity of service and back wages unless exceptional circumstances exist
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Case Details

2023 LawText (BOM) (10) 151

Writ Petition No. 10338 of 2013

2023-10-03

Milind N. Jadhav

2023:BHC-AS:35091

Mr. Ashok Kotangle a/w Ms. Rasashri Karande, Mr. Mayur Sarode and Mr. Anil Sable for Petitioner, Mr. Yogeshwar Bhate a/w D.R. Shah for Respondent

Popat B. Bhalerao

Union of India through The Controller of Quality Assurance (Vehicle)

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Nature of Litigation

Writ petition under Articles 226 and 227 of the Constitution of India challenging the award of the Central Government Industrial Tribunal-cum-Labour Court denying back wages to the workman.

Remedy Sought

The workman sought quashing of the notification dated 21.03.2012 and the award dated 01.02.2012 passed by CGIT-1, and sought reinstatement with full back wages and continuity of service.

Filing Reason

The workman was terminated from service without compliance with Section 25F of the Industrial Disputes Act, 1947, and the Tribunal denied back wages despite holding the termination illegal.

Previous Decisions

The Central Government Industrial Tribunal-cum-Labour Court No. 1, Mumbai, in Reference No. CGIT-1/1 of 2003, held the termination illegal but denied back wages.

Issues

Whether the termination of the workman was legal and justified? Whether the workman is entitled to reinstatement with full back wages and continuity of service?

Submissions/Arguments

Petitioner argued that the termination was illegal for non-compliance with Section 25F of the Industrial Disputes Act, 1947, and that the denial of back wages was arbitrary as there was no evidence of gainful employment. Respondent argued that the workman was a temporary employee and that the termination was justified due to misconduct, and that the denial of back wages was proper.

Ratio Decidendi

Termination of a workman without compliance with Section 25F of the Industrial Disputes Act, 1947 is illegal. The employer must prove misconduct in a domestic enquiry. Denial of back wages must be based on evidence of gainful employment; in the absence thereof, full back wages should be granted.

Judgment Excerpts

This Petition is filed under the provisions of Article 226 and 227 of the Constitution of India challenging the Notification dated 21.03.2012 issued by Government of India and Award dated 01.02.2012 passed by Central Government Industrial Tribunal-cum-Labour Court No. 1, Mumbai. The termination of the workman without compliance with Section 25F of the Industrial Disputes Act, 1947 is illegal and void ab initio. In the absence of any finding that the workman was gainfully employed during the period of termination, full back wages ought to be granted.

Procedural History

The workman was terminated from service. The matter was referred to the Central Government Industrial Tribunal-cum-Labour Court No. 1, Mumbai, as Reference No. CGIT-1/1 of 2003. The Tribunal passed an award on 01.02.2012 holding the termination illegal but denying back wages. The workman filed a writ petition under Articles 226 and 227 of the Constitution of India before the Bombay High Court, which was decided on 03.10.2023.

Acts & Sections

  • Constitution of India: Article 226, Article 227
  • Industrial Disputes Act, 1947: Section 25F, Section 11A
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