Bombay High Court Dismisses Appeal of Daily Wage Workers Seeking Reinstatement Under Kalelkar Award. Workers Held Not Covered by Award but Entitled to Retrenchment Compensation Under Chapter VA of Industrial Disputes Act, 1947.

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

The case involves an appeal under Clause 15 of the Letters Patent against a judgment of a learned Single Judge of the Bombay High Court dated 15.10.1997 in Writ Petition No. 2618/1997. The appellants, four daily wage workers (Dashrath Rajaram Solanke, Pandurang Laxman Kaikade, Gopal Chindwa Bawane, and Ankush Mahadeo Tendulkar), were employed by the respondents (Executive Engineer and Deputy Engineer of the Chief Gate Erection Unit) between 1982 and 1984. Their services were terminated on 31.8.1984. The Labour Court, Amravati, on 4.6.1994 in ULP (Complaint) Nos. 319/1984 to 322/1984, directed reinstatement with continuity of service and full back wages. The Industrial Court dismissed the employer's revision (U.L.P. Revision No. 158/1994) and upheld the Labour Court's order. The employer then filed a writ petition, which the learned Single Judge allowed, setting aside the reinstatement and back wages, but ordering payment of retrenchment compensation under Chapter VA of the Industrial Disputes Act, 1947. The Single Judge found that the appellants were not covered by the Kalelkar Award, so their termination was not illegal on that ground. The present appeal challenges that judgment. The Division Bench noted that the appellants had not been provided work since termination, and they were out of service for about 28 years. The court observed that the appellants, except Dashrath, were employed between 1.7.1982 and 31.8.1984, and Dashrath had worked for 207 days from 1.3.1983 to 31.8.1984, but the Labour Court found he had completed 240 days of continuous service. The Division Bench upheld the Single Judge's finding that the appellants were not covered by the Kalelkar Award, and therefore, their termination was not illegal. However, they were entitled to retrenchment compensation under Chapter VA of the Industrial Disputes Act. The appeal was dismissed, and the Single Judge's order was confirmed.

Headnote

A) Industrial Law - Kalelkar Award - Applicability - Services of daily wage workers not covered under Kalelkar Award - The court held that the appellants' services were not governed by the Kalelkar Award, hence their termination was not illegal on that ground. (Paras 1-2)

B) Industrial Law - Retrenchment Compensation - Chapter VA of Industrial Disputes Act, 1947 - Entitlement to compensation - The court found that the appellants were entitled to retrenchment compensation under Chapter VA of the Industrial Disputes Act, 1947, as they had completed 240 days of continuous service. (Paras 1-2)

C) Industrial Law - Reinstatement - Daily wage workers - Not entitled to reinstatement - The court held that since the appellants were not covered by the Kalelkar Award, they were not entitled to reinstatement with back wages, but only to retrenchment compensation. (Paras 1-2)

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Issue of Consideration

Whether the appellants, daily wage workers, are covered under the Kalelkar Award and entitled to reinstatement with back wages, or only to retrenchment compensation under the Industrial Disputes Act, 1947.

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Final Decision

The appeal is dismissed. The judgment of the learned Single Judge dated 15.10.1997 is confirmed. The appellants are entitled to retrenchment compensation under Chapter VA of the Industrial Disputes Act, 1947, but not reinstatement or back wages.

Law Points

  • Kalelkar Award applicability
  • retrenchment compensation under Chapter VA of Industrial Disputes Act
  • 1947
  • daily wage workers' continuity of service
  • Letters Patent Appeal against Single Judge order
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Case Details

1998(3) Mah.L.J. 897 (Executive Engineer vs. Ananta and Others)

Letters Patent Appeal No. 28 of 1998 in Writ Petition No. 2618 of 1997

2013-03-22

B.P. Dharmadhikari, P.B. Varale

1998(3) Mah.L.J. 897 (Executive Engineer vs. Ananta and Others)

Dashrath Rajaram Solanke, Pandurang Laxman Kaikade, Gopal Chindwa Bawane, Ankush Mahadeo Tendulkar

The Executive Engineer, Chief Gate Erection Unit No.2, Nagpur; The Deputy Engineer, Gate Erection SubDivision, Veni

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Nature of Litigation

Appeal under Clause 15 of Letters Patent against judgment of Single Judge in writ petition challenging Labour Court and Industrial Court orders of reinstatement with back wages.

Remedy Sought

Appellants sought reinstatement with continuity of service and full back wages.

Filing Reason

Appellants challenged the Single Judge's order setting aside reinstatement and granting only retrenchment compensation.

Previous Decisions

Labour Court (4.6.1994) ordered reinstatement with back wages; Industrial Court dismissed employer's revision; Single Judge (15.10.1997) set aside reinstatement and ordered retrenchment compensation only.

Issues

Whether the appellants' services are covered under the Kalelkar Award? Whether the appellants are entitled to reinstatement with back wages or only retrenchment compensation?

Submissions/Arguments

Appellants argued that they were covered under the Kalelkar Award and entitled to reinstatement. Respondents contended that the appellants were not covered by the Kalelkar Award and their termination was valid.

Ratio Decidendi

Daily wage workers not covered by the Kalelkar Award are not entitled to reinstatement but are entitled to retrenchment compensation under Chapter VA of the Industrial Disputes Act, 1947, if they have completed 240 days of continuous service.

Judgment Excerpts

The learned Single Judge has, in said judgment, found that services of present appellants are not covered under the terms of 'Kalelkar Award' and hence their termination cannot be faulted. However, they are found to be entitled to compensation as per and under Chapter VA of the Industrial Disputes Act, as retrenchment compensation.

Procedural History

Labour Court (4.6.1994) ordered reinstatement with back wages in ULP (Complaint) Nos. 319/1984 to 322/1984. Industrial Court dismissed employer's revision (U.L.P. Revision No. 158/1994). Employer filed Writ Petition No. 2618/1997, which was allowed by Single Judge on 15.10.1997, setting aside reinstatement and ordering retrenchment compensation. Present appeal filed under Letters Patent on 24.6.1998, with stay granted. Appeal dismissed on 22.3.2013.

Acts & Sections

  • Industrial Disputes Act, 1947: Chapter VA
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High Court Bombay High Court Dismisses Appeal of Daily Wage Workers Seeking Reinstatement Under Kalelkar Award. Workers Held Not Covered by Award but Entitled to Retrenchment Compensation Under Chapter VA of Industrial Disputes Act, 1947.
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