Bombay High Court Dismisses Employer's Challenge to Labour Court Compensation Award as Infructuous — Workman's Legal Heirs Withdrew Deposited Amount. Industrial Dispute Compensation of Rs.50,000/- Already Paid, Petition Becomes Moot.

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

The petitioner, Chief Executive Officer of Zilla Parishad, Jalgaon, challenged the judgment and award dated 2.8.1993 passed by the Labour Court, Jalgaon in Reference (IDA) No. 3 of 1985. The Labour Court had directed the employer to pay a lump sum compensation of Rs.50,000/- to the workman Maharu Kautik Patil, along with costs of Rs.1,000/-. The workman had raised an industrial dispute which was referred to the Labour Court under Section 10 of the Industrial Disputes Act, 1947. The Labour Court found that the employer had engaged in unfair labour practice and awarded compensation. The employer filed the present writ petition in 1994, which was admitted and interim stay was granted. Subsequently, the workman died and his legal heirs were brought on record. By order dated 24.9.1998, the employer was directed to deposit Rs.50,000/- in court, and later by order dated 23.2.2000, the legal heirs were permitted to withdraw the amount upon furnishing security. It was informed that the amount was withdrawn. The petitioner's counsel argued that the award was illegal and liable to be set aside. However, the court noted that since the entire compensation amount had already been withdrawn by the legal heirs, the petition had become infructuous. The court dismissed the writ petition as having become infructuous, observing that no further orders could be passed. The court also noted that the legal heirs had already received the amount and the matter was effectively concluded.

Headnote

A) Industrial Law - Compensation - Lump Sum Award - Industrial Disputes Act, 1947, Section 10 - Workman was awarded Rs.50,000/- lump sum compensation by Labour Court for unfair labour practice - Employer challenged the award in writ petition - During pendency, workman died and legal heirs withdrew the deposited amount - Held that the petition becomes infructuous as the amount has been withdrawn and no further relief can be granted (Paras 1-9).

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Issue of Consideration

Whether the Labour Court's award of lump sum compensation of Rs.50,000/- to the workman is liable to be set aside in writ jurisdiction.

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Final Decision

The writ petition is dismissed as having become infructuous. The amount of Rs.50,000/- already withdrawn by the legal heirs of the workman is not disturbed.

Law Points

  • Industrial Dispute Act
  • 1947
  • Section 10
  • Reference
  • Compensation
  • Lump Sum
  • Unfair Labour Practice
  • Withdrawal of Amount
  • Mootness
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Case Details

2015 LawText (BOM) (06) 4

Writ Petition No. 1538 of 1994

2015-06-25

Ravindra V. Ghuge, J.

Shri Vijay Sharma for Petitioner, Shri B.R. Warma for Respondents 1A to 1G

Chief Executive Officer, Zilla Parishad, Jalgaon

Maharu Kautik Patil (deceased, through L.Rs.)

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Nature of Litigation

Writ petition challenging the judgment and award of the Labour Court in an industrial dispute reference.

Remedy Sought

Petitioner sought quashing of the Labour Court award dated 2.8.1993 and dismissal of the claim statement.

Filing Reason

Petitioner challenged the Labour Court's award of Rs.50,000/- lump sum compensation to the workman.

Previous Decisions

Labour Court, Jalgaon passed award on 2.8.1993 in Reference (IDA) No. 3 of 1985 directing payment of Rs.50,000/- compensation and Rs.1,000/- costs.

Issues

Whether the Labour Court's award of lump sum compensation is sustainable in law.

Submissions/Arguments

Petitioner's counsel argued that the impugned award deserves to be quashed and set aside.

Ratio Decidendi

Since the entire compensation amount awarded by the Labour Court has been deposited and withdrawn by the legal heirs of the workman, the petition challenging the award has become infructuous and no further orders are required.

Judgment Excerpts

By this petitioner, the petitioner challenges the judgment and award dated 2.8.1993, delivered by the Labour Court, Jalgaon in Reference (IDA) No. 3 of 1985. The Labour Court, by the impugned award has ordered in Clause (i), (ii) and (iii) as under:- It is informed that the respondent has withdrawn the whole amount. The respondent has passed away and his L. Rs. are on record.

Procedural History

Labour Court passed award on 2.8.1993. Petitioner filed writ petition on 15.7.1994 which was admitted and interim stay granted. On 24.9.1998, court directed deposit of Rs.50,000/-. On 23.2.2000, legal heirs allowed to withdraw amount. Workman died and L.Rs. brought on record. Petition heard on 25.6.2015 and dismissed as infructuous.

Acts & Sections

  • Industrial Disputes Act, 1947: Section 10
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High Court Bombay High Court Dismisses Employer's Challenge to Labour Court Compensation Award as Infructuous — Workman's Legal Heirs Withdrew Deposited Amount. Industrial Dispute Compensation of Rs.50,000/- Already Paid, Petition Becomes Moot.
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