Bombay High Court Upholds Labour Court Award of Reinstatement with Backwages for Termination Without Enquiry. Violation of Sections 25F and 25G of Industrial Disputes Act, 1947 Found as Employee Was Not Given Notice or Compensation and Principle of Last Come First Go Was Not Followed.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
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Case Note & Summary

The case involves a challenge by the petitioners (the Principal of Industrial Training Institute, Khamgaon, and the Joint Director of Vocational Education and Training) against an award dated 30.10.2010 passed by the Labour Court at Buldhana in Reference No. 69 of 2004. The Labour Court had answered the reference in favor of the respondent-employee, Anant Nivrutti Bhure, directing his reinstatement with continuity of service and full backwages. The respondent was initially appointed as an Assistant Store Keeper on 23.11.1995 with effect from 01.12.1995 on a temporary basis for five months, with a condition that his appointment could be terminated without notice. Similar orders were issued subsequently, the last being on 09.10.1996. His services were terminated by an order dated 17.12.1996 based on an enquiry report submitted by an Enquiry Committee and accepted by the Principal. The termination was referred to the Labour Court under Section 10(1)(C) of the Industrial Disputes Act, 1947. The Labour Court found that the termination was effected without holding a proper domestic enquiry and in violation of Sections 25F and 25G of the I.D. Act. The employer did not give any notice or compensation as required under Section 25F, and the principle of 'last come first go' under Section 25G was not followed. The High Court, after considering the submissions, held that the Labour Court's findings were based on evidence and did not warrant interference under Article 226 of the Constitution. The petition was dismissed, and the award of reinstatement with continuity of service and full backwages was upheld.

Headnote

A) Industrial Law - Termination - Illegal Termination - Sections 25F, 25G, Industrial Disputes Act, 1947 - The Labour Court found that the termination of the respondent-employee was effected without holding a domestic enquiry and in violation of Sections 25F and 25G of the I.D. Act. The employee was not given any notice or compensation, and the principle of 'last come first go' was not followed. The Court upheld the award of reinstatement with continuity of service and full backwages. (Paras 1-5)

B) Industrial Law - Retrenchment - Compliance with Section 25F - Industrial Disputes Act, 1947, Section 25F - The employer failed to comply with the mandatory requirements of Section 25F by not giving one month's notice or pay in lieu thereof and not paying retrenchment compensation at the time of termination. The termination was therefore illegal. (Paras 3-5)

C) Industrial Law - Retrenchment - Principle of Last Come First Go - Section 25G, Industrial Disputes Act, 1947 - The employer did not follow the principle of 'last come first go' as required under Section 25G, as the respondent-employee was the last to be appointed but was terminated while others with less seniority were retained. This violation further vitiated the termination. (Paras 3-5)

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Issue of Consideration

Whether the termination of the respondent-employee was legal and valid, and whether the Labour Court was justified in ordering reinstatement with continuity of service and full backwages.

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Final Decision

The High Court dismissed the writ petition and upheld the award of the Labour Court dated 30.10.2010, directing reinstatement of the respondent-employee with continuity of service and full backwages.

Law Points

  • Termination without holding a domestic enquiry is illegal
  • Violation of Sections 25F and 25G of Industrial Disputes Act
  • 1947 renders termination void
  • Reinstatement with full backwages is proper remedy for illegal termination
  • Principle of last come first go must be followed in retrenchment
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Case Details

2015 LawText (BOM) (04) 132

WRIT PETITION NO. 5683 OF 2011

2015-04-28

R. K. DESHPANDE

Shri P.C.Marpakwar for Petitioner No.1, Shri N.R.Saboo for Respondent

The Principal, Industrial Training Institute, Khamgaon, Distt. Buldhana and The Joint Director (then the Dy. Director) Vocational Education and Training Regional Office, Amravati

Anant Nivrutti Bhure

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Nature of Litigation

Writ petition challenging the award of the Labour Court ordering reinstatement with continuity of service and full backwages.

Remedy Sought

The petitioners sought to quash the Labour Court award dated 30.10.2010.

Filing Reason

The petitioners challenged the Labour Court's award on the ground that the termination was valid and the Labour Court erred in ordering reinstatement.

Previous Decisions

The Labour Court at Buldhana in Reference No. 69 of 2004 answered the reference in the affirmative and directed reinstatement with continuity of service and full backwages.

Issues

Whether the termination of the respondent-employee was in violation of Sections 25F and 25G of the Industrial Disputes Act, 1947? Whether the Labour Court was justified in ordering reinstatement with continuity of service and full backwages?

Submissions/Arguments

The petitioners argued that the termination was based on an enquiry report and was valid. The respondent-employee contended that the termination was illegal as no proper enquiry was held and mandatory provisions of the I.D. Act were violated.

Ratio Decidendi

The termination of an employee without holding a domestic enquiry and without complying with the mandatory requirements of Sections 25F and 25G of the Industrial Disputes Act, 1947 is illegal. The Labour Court's award of reinstatement with continuity of service and full backwages is proper and does not warrant interference under Article 226 of the Constitution.

Judgment Excerpts

The Labour Court has recorded the finding that there was violation of Sections 25F and 25G of the Industrial Disputes Act (in short 'the I.D. Act'), the termination has been effected by way of punishment without holding an enquiry. The petition challenges the award dated 30.10.2010 passed by the Labour Court at Buldhana, in Reference No. 69 of 2004.

Procedural History

The respondent-employee was appointed on 23.11.1995 and his services were terminated on 17.12.1996. The matter was referred to the Labour Court under Section 10(1)(C) of the I.D. Act. The Labour Court passed an award on 30.10.2010 ordering reinstatement with continuity of service and full backwages. The petitioners challenged this award by filing Writ Petition No. 5683 of 2011 before the Bombay High Court, which was dismissed on 28.04.2015.

Acts & Sections

  • Industrial Disputes Act, 1947: 10(1)(C), 25F, 25G
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