High Court of Judicature at Bombay Upholds Reinstatement of Workman in Industrial Dispute but Reduces Back Wages to 25% for Period Prior to Award's Enforceability. Labour Court's Award Modified as Dismissal Found Shockingly Disproportionate but Workman's Highly Blemished Past Record and Proved Misconduct Warrant Substantial Reduction in Monetary Relief Under Section 11A of Industrial Disputes Act, 1947.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The petitioner employer challenged the Labour Court's award granting reinstatement with continuity and full back wages to the respondent workman in an industrial dispute. The workman, employed as a machine operator since 1982, had a history of nine suspensions for minor misconducts. In 1999, a charge-sheet was issued for unauthorized absence for 57 days between January and December 1998. After a domestic enquiry, he was found guilty and dismissed from service on 28 September 1999. The workman raised an industrial dispute under Section 2A of the Industrial Disputes Act, 1947, leading to adjudication by the First Labour Court, Pune, in Reference (IDA) No. 527 of 2000. The Labour Court first passed a Part-1 award on 11 August 2016, holding that the enquiry was fair and its findings not perverse, which the workman did not challenge. Subsequently, by final award dated 9 August 2019, the Labour Court, while noting the surviving issue was the proportionality of the punishment under Section 11A, granted reinstatement with continuity and full back wages. The employer filed Writ Petition No. 659 of 2020. During pendency, the workman attained superannuation on 4 January 2021. The High Court, with consent of parties, took up the matter for final hearing. It observed that once the enquiry is sustained, the Labour Court's power under Section 11A is limited to considering whether the punishment is shockingly disproportionate and, if so, modifying it. The Labour Court erred by treating reinstatement as an automatic reward despite the proved misconduct and blemished past record. The Court held that dismissal was shockingly disproportionate given no prior unauthorized absence, so reinstatement was justified, but the workman's highly blemished record necessitated reduction of back wages. The Court modified the award, confirming reinstatement and continuity but granting only 25% back wages from dismissal until 30 November 2019, and full back wages from 1 December 2019 (the date the award became enforceable) till superannuation on 4 January 2021. Gratuity, provident fund, and pension rights were directed to be settled treating the workman in service till superannuation, with adjustments for amounts already paid. The employer was to calculate and pay the amounts by 31 March 2022, with a detailed chart. The petition was partly allowed, and the interim application disposed of accordingly.

Headnote

A) Labour Law - Disciplinary Proceedings - Scope of Section 11A, Industrial Disputes Act, 1947 - Once the enquiry is found fair and findings not perverse, the Labour Court can only consider the proportionality of the punishment and may modify the punishment if shockingly disproportionate. It cannot grant reinstatement and full back wages as a reward but must suitably mould the relief. (Paras 4-5)

B) Labour Law - Unauthorized Absenteeism - Proportionality of Punishment - Industrial Disputes Act, 1947, Section 11A - Absence for 57 days constituted misconduct, but dismissal was shockingly disproportionate given no prior similar absenteeism; thus, reinstatement was justified. However, blemished past record of nine suspensions made full back wages inappropriate. (Paras 3, 6-7)

C) Labour Law - Back Wages - Reduction of Back Wages - Industrial Disputes Act, 1947, Section 11A - Where workman's past record is highly blemished, back wages can be reduced. Court granted 25% back wages from dismissal till date award became enforceable, and full back wages thereafter till superannuation, balancing equities. (Paras 7-8)

D) Writ Jurisdiction - Writ of Certiorari - Moulding of Relief - Constitution of India - High Court, while exercising certiorari jurisdiction, can suitably mould the relief when the Labour Court's award is unsustainable. (Para 5)

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Issue of Consideration

Whether the Labour Court's award granting reinstatement with full back wages was sustainable under Section 11A of the Industrial Disputes Act, 1947, given that the enquiry was held fair and the misconduct was proved; and what would be the appropriate relief considering the workman's blemished past record and superannuation.

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Final Decision

The writ petition was partly allowed. The impugned award was modified: reinstatement and continuity of service confirmed, but monetary benefits reduced: 25% back wages from dismissal (28/9/1999) till 30/11/2019; full back wages from 1/12/2019 till superannuation on 4/1/2021; gratuity and PF to be paid treating workman in service till superannuation; pension papers to be processed; adjustments of amounts already paid; chart of calculations to be supplied by 31/3/2022. Employer's deposit in court allowed to be withdrawn by employer after 31/3/2022. Interim Application disposed of.

Law Points

  • Legal points not extracted
  • Section 11A of Industrial Disputes Act
  • 1947
  • proportionality of punishment
  • moulding of relief
  • discretion to reduce back wages
  • writ of certiorari jurisdiction
  • past service record as aggravating factor
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Case Details

2022 LawText (BOM) (02) 81

WRIT PETITION NO. 659 OF 2020

2022-02-14

RAVINDRA V. GHUGE

Citation not available, 2022:BHC-AS:2780

Kiran Bapat, Y.B. Lengare

M/s.Century Enka Ltd

Shri Ratansingh Prakashsingh Bange

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Nature of Litigation

Writ petition challenging Labour Court's award granting reinstatement with full back wages in an industrial dispute under Industrial Disputes Act, 1947.

Remedy Sought

Petitioner (employer) sought quashing of Labour Court's award granting reinstatement with continuity and full back wages.

Filing Reason

The Labour Court had granted reinstatement and full back wages despite upholding the enquiry and finding of unauthorized absenteeism, which the employer considered contrary to Section 11A of the Act.

Previous Decisions

Labour Court Part-1 award dated 11/8/2016 held enquiry fair and findings not perverse; Final award dated 9/8/2019 granted reinstatement with continuity and full back wages. Workman did not challenge Part-1 award.

Issues

Whether the Labour Court's award granting reinstatement with full back wages was sustainable in law when the enquiry was found fair and the misconduct of unauthorized absenteeism was proved? Whether the punishment of dismissal was shockingly disproportionate warranting modification under Section 11A of the Industrial Disputes Act, 1947? What would be the appropriate relief considering the workman's blemished past record and superannuation?

Submissions/Arguments

Petitioner contended that once the enquiry was upheld, Labour Court could only modify punishment if shockingly disproportionate and could not grant reinstatement with full back wages. Respondent workman sought to sustain the award of reinstatement and full back wages.

Ratio Decidendi

Under Section 11A of the Industrial Disputes Act, 1947, once the enquiry is found fair and findings not perverse, the Labour Court can only consider proportionality of punishment. If the punishment is shockingly disproportionate, it may modify it, but cannot reward the workman with full back wages when the past record is blemished and misconduct is proved. Back wages can be suitably reduced to balance the equities.

Judgment Excerpts

Under Section 11A, it could consider whether a punishment lesser than the one amounting to a shockingly disproportionate punishment could be granted. the punishment of dismissal from service would be shockingly disproportionate The past service record of the workman is highly blemished and is an aggravating factor. Taking into account such factors, the Labour Court, while granting reinstatement in service and continuity, should have deprived the workman of a quantum of the back wages

Procedural History

The workman, employed since 1/2/1982, was dismissed on 28/9/1999 after an enquiry found him guilty of unauthorized absence for 57 days. He raised an industrial dispute under Section 2A, leading to Reference (IDA) No.527 of 2000 before the First Labour Court, Pune. The Labour Court passed a Part-1 award on 11/8/2016, holding the enquiry fair and findings not perverse, which the workman did not challenge. Subsequently, the Labour Court delivered the final award on 9/8/2019, granting reinstatement with continuity and full back wages. The employer filed Writ Petition No.659 of 2020 challenging this award. During pendency, the workman attained superannuation on 4/1/2021. The workman filed Interim Application No.523 of 2022 seeking deposit of back wages. The High Court took up the writ petition for final hearing with consent, and partly allowed it, modifying the award as above.

Acts & Sections

  • Industrial Disputes Act, 1947: 2A, 11A
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