Case Note & Summary
The petitioner, Khadi & Village Industries Commission, a statutory body under the Khadi & Village Industries Commission Act, 1956, challenged an award dated 23/7/2003 of the Central Government Industrial Tribunal No.1 at Bombay. The Tribunal directed reinstatement of the respondent, Jagdish Prasad Prajapati, with effect from 1/11/1999 with back wages at Rs.1,500 per month from that date until absorption. The respondent was employed on 6th March, 1995 as a daily wager in a temporary vacancy for 89 days, but his services continued without a fresh appointment letter for more than three years. On 29th October, 1999, the petitioner issued a letter discontinuing his services from 1/11/1999, citing that daily wagers working for a long time could lead to complications regarding permanent appointment. The respondent raised an industrial dispute, and the Tribunal found the termination illegal for non-compliance with Section 25F of the Industrial Disputes Act, 1947, ordering reinstatement with back wages. The High Court upheld the finding of illegal termination but modified the back wages, reducing them to 50% of the awarded amount, as the respondent had not proved he was unemployed throughout and the nature of employment was temporary. The court directed the petitioner to pay 50% back wages within eight weeks and continue to pay wages at Rs.1,500 per month until absorption.
Headnote
A) Industrial Law - Reinstatement - Daily Wager - Termination without complying with Section 25F of Industrial Disputes Act, 1947 - Respondent worked continuously for more than three years as daily wager - Termination by letter dated 29/10/1999 without notice or compensation - Held that termination is illegal and reinstatement is justified (Paras 1-5).
B) Industrial Law - Back Wages - Daily Wager - Discretion of Court - Reinstatement with full back wages not automatic - Petitioner failed to prove respondent was gainfully employed elsewhere - However, considering nature of employment and delay, back wages reduced to 50% - Held that back wages should be reduced to 50% (Paras 6-7).
Issue of Consideration
Whether the termination of a daily wager who had rendered continuous service for more than three years without complying with Section 25F of the Industrial Disputes Act, 1947 is valid, and what relief is appropriate.
Final Decision
The High Court upheld the finding of illegal termination but modified the award to reduce back wages to 50% of the awarded amount. The petitioner was directed to pay 50% back wages within eight weeks and continue to pay wages at Rs.1,500 per month until absorption.
Law Points
- Industrial Dispute
- Reinstatement
- Back Wages
- Daily Wager
- Continuous Service
- Termination without Notice
- Section 25F Industrial Disputes Act
- 1947
Case Details
2005 LawText (BOM) (07) 19
Writ Petition No.388 of 2004
Mr. Avinash Jalisatgi with Amol Desai & Nagendra Dube for petitioner; Mr. Jaiprakash Sawant with Kiran T. Patil for respondent
Khadi & Village Industries Commission
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Nature of Litigation
Writ petition challenging an industrial tribunal award directing reinstatement with back wages.
Remedy Sought
Petitioner sought to quash the award of the Central Government Industrial Tribunal dated 23/7/2003.
Filing Reason
Petitioner challenged the award on the ground that the Tribunal erred in ordering reinstatement with full back wages.
Previous Decisions
The Central Government Industrial Tribunal No.1 at Bombay passed an award on 23/7/2003 directing reinstatement with back wages at Rs.1,500 per month from 1/11/1999.
Issues
Whether the termination of the respondent without complying with Section 25F of the Industrial Disputes Act, 1947 is illegal.
Whether the respondent is entitled to reinstatement with full back wages.
Submissions/Arguments
Petitioner argued that the respondent was a daily wager and his termination was in accordance with the terms of appointment.
Respondent argued that he had rendered continuous service for more than three years and termination without notice or compensation was illegal.
Ratio Decidendi
Termination of a daily wager who has rendered continuous service for more than three years without complying with Section 25F of the Industrial Disputes Act, 1947 is illegal. However, reinstatement with full back wages is not automatic; the court may reduce back wages based on the nature of employment and whether the employee was gainfully employed elsewhere.
Judgment Excerpts
The petitioner challenges the award of the Central Government Industrial Tribunal No.1 at Bombay dated 23/7/2003.
By this Award, the petitioner is directed to reinstate the respondent with effect from 1/11/1999 with back wages at the rate of Rs.1,500/- p.m. from 1/11/1999 till the respondent is absorbed.
The facts relevant for the present petition are that the petitioner is a Commission established by the Central Government under Khadi & Village Industries Commissioner Act, 1956.
On 6th March, 1995 the respondent was employed in a temporary vacancy on daily wages.
Admittedly, an appointment letter was issued by the petitioner appointing the respondent for a period of 89 days but subsequently, the services have been continued without issuing any appointment letter.
It is also an admitted position that the respondent has rendered continuous temporary service for more than three years.
However, by letter dated 29 October, 1999, the temporary service of the respondent was sought to be discontinued with effect from 1/11/1999.
Procedural History
The respondent was employed on 6/3/1995 as a daily wager. His services were discontinued on 1/11/1999 by letter dated 29/10/1999. He raised an industrial dispute which was referred to the Central Government Industrial Tribunal No.1 at Bombay. The Tribunal passed an award on 23/7/2003 directing reinstatement with back wages. The petitioner challenged the award by filing Writ Petition No.388 of 2004 in the Bombay High Court, which was disposed of on 15/7/2005.
Acts & Sections
- Industrial Disputes Act, 1947: Section 25F
- Khadi & Village Industries Commission Act, 1956:
