Case Note & Summary
The petitioner, Shankar M. Gowekar, a workman employed by the Maharashtra State Road Transport Corporation (MSRTC), was terminated from service on 16/01/2018 without a domestic enquiry and without compliance with Section 25F of the Industrial Disputes Act, 1947. He filed Complaint (ULP) No. 6 of 2018 before the Labour Court at Mahad, which held the termination illegal and directed reinstatement with continuity of service but denied back wages. Both parties filed Revision Applications before the Industrial Court at Thane: the petitioner sought back wages, and the respondents challenged the finding of illegal termination. The Industrial Court dismissed the petitioner's revision and allowed the respondents' revision, remanding the matter on the quantum of punishment. The petitioner then filed the present writ petition challenging the Industrial Court's order. The High Court analyzed the facts and found that the termination was clearly illegal as no domestic enquiry was held and no notice or compensation was given as required under Section 25F. The High Court held that once termination is found illegal, reinstatement with full back wages is the normal rule, and the employer failed to justify denial of back wages. The court set aside the Industrial Court's order and restored the Labour Court's finding of illegal termination, directing reinstatement with full back wages from the date of termination, i.e., 16/01/2018, with continuity of service.
Headnote
A) Industrial Law - Termination of Service - Illegal Termination - Section 25F of Industrial Disputes Act, 1947 - The petitioner workman was terminated without holding a domestic enquiry and without compliance with Section 25F of the Industrial Disputes Act, 1947. The Labour Court and Industrial Court held the termination illegal but denied back wages. The High Court held that once termination is found illegal, reinstatement with full back wages is the normal rule, and the employer failed to justify denial of back wages. (Paras 1-20)
B) Industrial Law - Back Wages - Denial of Back Wages - Section 30 of MRTU & PULP Act, 1971 - The Industrial Court remanded the matter on quantum of punishment, but the High Court held that the Labour Court had already found the termination illegal and the employer did not lead evidence to justify denial of back wages. The High Court restored the Labour Court's finding of illegal termination and granted full back wages from the date of termination. (Paras 15-20)
Issue of Consideration
Whether the termination of the petitioner workman was illegal and whether he is entitled to reinstatement with full back wages and continuity of service.
Final Decision
The High Court allowed the writ petition, set aside the Industrial Court's order dated 14/12/2020, and restored the Labour Court's finding of illegal termination. The court directed the respondents to reinstate the petitioner with continuity of service and full back wages from the date of termination, i.e., 16/01/2018.
Law Points
- Termination without domestic enquiry is illegal
- Reinstatement with full back wages is normal rule
- Burden of proof on employer to justify denial of back wages
- Section 25F of Industrial Disputes Act
- 1947 requires notice and compensation before retrenchment
- Unfair labour practice under MRTU & PULP Act
- 1971
Case Details
2022 LawText (BOM) (05) 23
Writ Petition No. 3580 of 2021
Ms. Seema Chopda a/w. Mr. T.R. Yadav for the Petitioner, Ms. Pinky M. Bhansali for the Respondents
Divisional Transport Officers, Maharashtra State Road Transport Corporation and Another
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Nature of Litigation
Writ petition challenging the order of the Industrial Court which dismissed the petitioner's revision and allowed the respondents' revision, remanding the matter on quantum of punishment, and seeking reinstatement with full back wages.
Remedy Sought
The petitioner sought a writ of certiorari and mandamus to quash the Industrial Court's order and the Labour Court's order to the extent of denial of back wages, and to direct reinstatement with full back wages and continuity of service.
Filing Reason
The petitioner was terminated from service without a domestic enquiry and without compliance with Section 25F of the Industrial Disputes Act, 1947, which he alleged was illegal and an unfair labour practice.
Previous Decisions
The Labour Court at Mahad in Complaint (ULP) No. 6 of 2018 held the termination illegal and directed reinstatement with continuity of service but denied back wages. The Industrial Court at Thane in Revision Application (ULP) No. 55 of 2019 (filed by respondents) and Revision Application (ULP) No. 103 of 2019 (filed by petitioner) dismissed the petitioner's revision and allowed the respondents' revision, remanding the matter on quantum of punishment.
Issues
Whether the termination of the petitioner workman was illegal?
Whether the petitioner is entitled to reinstatement with full back wages and continuity of service?
Submissions/Arguments
Petitioner argued that termination was illegal as no domestic enquiry was held and no notice or compensation was given under Section 25F of the Industrial Disputes Act, 1947, and that denial of back wages was unjustified.
Respondents argued that the termination was justified and that the Labour Court's finding of illegal termination was erroneous, and that the Industrial Court correctly remanded the matter on quantum of punishment.
Ratio Decidendi
Once termination is found illegal for want of domestic enquiry and non-compliance with Section 25F of the Industrial Disputes Act, 1947, reinstatement with full back wages is the normal rule. The employer bears the burden to justify denial of back wages, and failure to lead evidence results in entitlement to full back wages.
Judgment Excerpts
By the present petition, the Petitioner has prayed for the following reliefs:-
Briefly the relevant facts are stated as under:-
Procedural History
The petitioner filed Complaint (ULP) No. 6 of 2018 before the Labour Court at Mahad, which held termination illegal and directed reinstatement with continuity but denied back wages. Both parties filed Revision Applications before the Industrial Court at Thane: Revision Application (ULP) No. 55 of 2019 by respondents and Revision Application (ULP) No. 103 of 2019 by petitioner. The Industrial Court dismissed the petitioner's revision and allowed the respondents' revision, remanding the matter on quantum of punishment. The petitioner then filed the present writ petition before the High Court.
Acts & Sections
- Industrial Disputes Act, 1947: Section 25F
- Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (MRTU & PULP Act): Section 30
