Bombay High Court Upholds Reinstatement but Quashes Backwages in Industrial Dispute Case. Violation of Sections 25F and 25G of Industrial Disputes Act, 1947 Found, but Backwages Denied as Employee Was Gainfully Employed During Pendency.

High Court: Bombay High Court Bench: NAGPUR
  • 86
Judgement Image
Font size:
Print

Case Note & Summary

The petitioner, Anant Yeshwantrao Mahulkar, was employed with the Deputy Conservator of Forest, Amravati Forest Division. His services were terminated, allegedly without compliance with Sections 25F and 25G of the Industrial Disputes Act, 1947. He filed Complaint (ULP) No. 399 of 1990 before the Labour Court, which allowed the complaint on 11.01.2001, directing reinstatement with continuity of service and 25% backwages. The respondent employer filed Revision (ULP) No. 12 of 2001 before the Industrial Court, which allowed the revision on 12.12.2003, setting aside the Labour Court's order. Aggrieved, the petitioner filed the present writ petition before the Bombay High Court. During the pendency of the writ petition, an interim order was passed continuing the petitioner in service and staying the backwages. The petitioner remained in employment and received wages throughout. The High Court noted that the Labour Court's finding of violation of Sections 25F and 25G was not challenged on merits. The court held that the order of reinstatement and continuity of service did not call for interference, but the direction for payment of backwages was quashed and set aside because the petitioner was in employment and receiving wages during the pendency. The respondent was given liberty to effect retrenchment in future, if necessary, by following the provisions of Sections 25F and 25G, keeping in view that the petitioner's case for regularization was under consideration by the State Government.

Headnote

A) Industrial Law - Reinstatement - Violation of Sections 25F and 25G of Industrial Disputes Act, 1947 - Labour Court found termination illegal due to non-compliance with pre-retrenchment conditions and order of retrenchment - Industrial Court set aside the order - High Court upheld reinstatement but quashed backwages as petitioner was in employment during pendency and received wages - Held that reinstatement for violation of Sections 25F and 25G is proper, but backwages can be denied if employee was gainfully employed (Paras 1-4).

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the Industrial Court was justified in setting aside the Labour Court's order of reinstatement with backwages for violation of Sections 25F and 25G of the Industrial Disputes Act, 1947

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The High Court partly allowed the writ petition. The order of reinstatement and continuity in service was upheld. The direction for payment of backwages was quashed and set aside. The respondent was given liberty to effect retrenchment in future, if necessary, by following Sections 25F and 25G of the Industrial Disputes Act, 1947, keeping in view that the petitioner's case for regularization was under consideration by the State Government.

Law Points

  • Reinstatement for violation of Section 25F and 25G of Industrial Disputes Act
  • 1947 is proper
  • but backwages are not automatic
  • discretion of court to deny backwages if employee was in employment during pendency
Subscribe to unlock Law Points Subscribe Now

Case Details

2015 LawText (BOM) (02) 164

Writ Petition No. 135 of 2004

2015-02-05

R. K. Deshpande

Shri B.J.Lonare for Petitioner, Shri R.D.Wakode for Respondent

Anant Yeshwantrao Mahulkar

Deputy Conservator of Forest, Amravati Forest Division, Amravati

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Writ petition challenging the Industrial Court's order setting aside Labour Court's reinstatement and backwages order

Remedy Sought

Petitioner sought restoration of Labour Court's order of reinstatement with continuity and 25% backwages

Filing Reason

Petitioner's termination was alleged to be in violation of Sections 25F and 25G of the Industrial Disputes Act, 1947

Previous Decisions

Labour Court allowed complaint on 11.01.2001 directing reinstatement with continuity and 25% backwages; Industrial Court allowed revision on 12.12.2003 setting aside Labour Court's order

Issues

Whether the Industrial Court was justified in setting aside the Labour Court's order of reinstatement with backwages for violation of Sections 25F and 25G of the Industrial Disputes Act, 1947

Submissions/Arguments

Petitioner argued that termination was illegal due to non-compliance with Sections 25F and 25G of the Industrial Disputes Act, 1947 Respondent contested the order of backwages as the petitioner was in employment during pendency

Ratio Decidendi

Reinstatement for violation of Sections 25F and 25G of the Industrial Disputes Act, 1947 is proper, but backwages are not automatic and can be denied if the employee was gainfully employed during the pendency of proceedings.

Judgment Excerpts

Complaint (ULP) No. 399 of 1990 was allowed by the Labour Court by its judgment and order dated 11.01.2001. The order setting aside the termination and granting reinstatement and continuity in service does not call for any interference. The order directing payment of backwages is hereby quashed and set aside.

Procedural History

Petitioner filed Complaint (ULP) No. 399/1990 before Labour Court which allowed it on 11.01.2001. Respondent filed Revision (ULP) No. 12/2001 before Industrial Court which allowed it on 12.12.2003. Petitioner then filed Writ Petition No. 135/2004 before Bombay High Court. During pendency, interim order continued petitioner in service and stayed backwages. High Court disposed of petition on 05.02.2015.

Acts & Sections

  • Industrial Disputes Act, 1947: 25F, 25G
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Upholds Reinstatement but Quashes Backwages in Industrial Dispute Case. Violation of Sections 25F and 25G of Industrial Disputes Act, 1947 Found, but Backwages Denied as Employee Was Gainfully Employed During Pendency.
Related Judgement
High Court Bombay High Court Quashes Criminal Proceedings in Cheque Dishonour Case Due to Lack of Proper Service of Demand Notice. Service of notice under Section 138 of the Negotiable Instruments Act, 1881 must be at the correct address; notice sent to a close...