Case Note & Summary
The petitioner, Burhanuddin Sayyed Ali, was employed as a Turner with Rank Controls & Instruments (Pvt.) Ltd. from 5 February 1984. On 14 March 1986, a weekly off, he was asked to attend night shift but informed the company he could not due to his cousin's wedding. When he reported for work on 15 March 1986, he was terminated without any chargesheet, retrenchment compensation, or notice wages. After failed conciliation, a reference was made on 17 June 1987. During the pendency of the reference, the respondent reinstated the petitioner on 15 April 1993 pursuant to a settlement, but he was dismissed again on 16 August 1995. The Labour Court held the termination illegal and ordered reinstatement with continuity of service. However, regarding backwages, the Labour Court relied on letters from three companies—M/s. Columbia Valve Industries Pvt. Ltd., Sohan Engineering Enterprises, and Sai Tools—indicating the petitioner was employed from 14 April 1986 to 4 December 1992. The Labour Court granted backwages only for 10 months and 17 days. The petitioner challenged this denial of full backwages. The High Court noted that the petitioner admitted in evidence to working for 7 months at Sohan Engineering Enterprises and 4 months at Columbia Valve Industries, but denied employment at Sai Tools. The court held that the employer failed to prove gainful employment for the entire period, but the workman's own admissions limited the period of unemployment. The court modified the award, granting backwages for the period from termination until reinstatement on 15 April 1993, minus the periods of admitted employment, and from 16 August 1995 until the date of the Labour Court award, with continuity of service.
Headnote
A) Industrial Law - Illegal Termination - Backwages - Industrial Disputes Act, 1947, Section 25F - Workman terminated without notice or compensation - Labour Court held termination illegal and ordered reinstatement with continuity but granted backwages only for 10 months and 17 days based on employer's evidence of gainful employment - Workman challenged denial of full backwages - Held that employer failed to prove gainful employment for the entire period, but workman admitted employment for some months; backwages limited to period of unemployment (Paras 1-6).
Issue of Consideration
Whether the Labour Court erred in denying full backwages to the workman after finding his termination illegal, based on alleged gainful employment.
Final Decision
The High Court modified the Labour Court award. It held that the workman is entitled to backwages for the period from 15.3.1986 (termination) until 15.4.1993 (reinstatement), minus the periods of admitted employment (7 months at Sohan Engineering and 4 months at Columbia Valve), and from 16.8.1995 (second dismissal) until the date of the Labour Court award, with continuity of service. The petition was partly allowed.
Law Points
- burden of proof on employer to prove gainful employment
- backwages not automatic
- reinstatement with continuity of service
