Gujarat High Court Partly Allows Employer's Petition in Driver Termination Case. Reinstatement Upheld but Backwages Reduced from 50% to 30% Due to Gainful Employment Under Section 25F of Industrial Disputes Act, 1947.

High Court: Gujarat High Court Bench: AHEMDABAD
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Case Note & Summary

The petitioner, ITM Vocational University, challenged the judgment and award dated 01.08.2023 passed by the Labour Court, Vadodara in Reference (LCV) No. 555 of 2017. The respondent-workman, Khodsing Fatehsing Lakum, joined the petitioner University on 28.02.2013 as a Driver (Non-Teaching Staff). His services were terminated by oral order on 01.08.2016. The workman approached the Labour Court by way of a Claim Form (Exh.-4) seeking a declaration that the termination was illegal, unlawful, and bad in law. The petitioner filed a detailed Written Statement on 23.09.2019. After hearing the parties and examining oral and documentary evidence, the Labour Court partly allowed the Reference and directed the petitioner to reinstate the respondent with continuity of service along with 50% backwages. Aggrieved, the petitioner filed the present petition under Articles 226 and 227 of the Constitution of India read with the Industrial Disputes Act, 1947. The High Court heard learned counsel Mr. Manan Bhatt for the petitioner and Mr. Robin Prasad for the respondent. The Court noted that the termination was without any inquiry and without compliance with Section 25F of the Industrial Disputes Act, 1947. However, considering that the workman was gainfully employed during the period, the Court modified the award to reduce backwages from 50% to 30%. The rest of the award, including reinstatement with continuity of service, was confirmed. The petition was partly allowed.

Headnote

A) Industrial Law - Termination - Illegal Termination - Section 25F, Industrial Disputes Act, 1947 - The respondent-workman was terminated by oral order without any inquiry or compliance with Section 25F. The Labour Court held the termination illegal and directed reinstatement with continuity of service and 50% backwages. The High Court upheld the reinstatement but reduced backwages to 30% considering the workman's gainful employment. (Paras 1-7)

B) Industrial Law - Backwages - Reduction - Section 25F, Industrial Disputes Act, 1947 - The High Court modified the backwages from 50% to 30% as the workman was gainfully employed during the period of termination, balancing the interests of both parties. (Para 7)

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Issue of Consideration

Whether the termination of the respondent-workman was legal and justified, and whether the Labour Court's award of reinstatement with 50% backwages is sustainable.

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Final Decision

The petition is partly allowed. The impugned judgment and award dated 01.08.2023 passed by the Labour Court, Vadodara in Reference (LCV) No. 555 of 2017 is modified to the extent that the respondent-workman shall be entitled to 30% backwages instead of 50%. The rest of the award remains confirmed. Rule is made absolute to the aforesaid extent.

Law Points

  • Termination without inquiry is illegal
  • Reinstatement with continuity of service
  • Backwages reduced due to gainful employment
  • Section 25F Industrial Disputes Act
  • 1947
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Case Details

2026 LawText (GUJ) (01) 30

R/SPECIAL CIVIL APPLICATION NO. 19627 of 2023

2026-01-05

Hemant M. Prachchhak

Mr. Manan Bhatt, Mr. Robin Prasad

ITM Vocational University

Khodsing Fatehsing Lakum

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Nature of Litigation

Petition under Articles 226 and 227 of the Constitution of India challenging the Labour Court's award of reinstatement with backwages.

Remedy Sought

Petitioner sought to quash and set aside the Labour Court's award dated 01.08.2023.

Filing Reason

The petitioner was aggrieved by the Labour Court's direction to reinstate the respondent with continuity of service and 50% backwages.

Previous Decisions

Labour Court partly allowed the Reference and directed reinstatement with continuity of service and 50% backwages.

Issues

Whether the termination of the respondent-workman was legal and justified? Whether the Labour Court's award of reinstatement with 50% backwages is sustainable?

Submissions/Arguments

Learned counsel for the petitioner argued that the termination was justified and the award of backwages was excessive. Learned counsel for the respondent supported the Labour Court's award.

Ratio Decidendi

Termination without inquiry and without compliance with Section 25F of the Industrial Disputes Act, 1947 is illegal. However, backwages may be reduced if the workman was gainfully employed during the period of termination.

Judgment Excerpts

The services of the respondent was terminated by oral order on 01.08.2016 the learned Judge has partly allowed the Reference filed by the respondent-workman and directed the petitioner to reinstate the respondent with continuity of service alongwith 50% backwages. Considering the fact that the respondent-workman was gainfully employed during the period, the backwages is reduced from 50% to 30%.

Procedural History

The respondent-workman filed a Claim Form before the Labour Court after termination on 01.08.2016. The Labour Court passed an award on 01.08.2023 partly allowing the Reference. The petitioner filed the present petition on an unspecified date, which was heard and decided on 05.01.2026.

Acts & Sections

  • Industrial Disputes Act, 1947: 25F
  • Constitution of India: 226, 227
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High Court Gujarat High Court Partly Allows Employer's Petition in Driver Termination Case. Reinstatement Upheld but Backwages Reduced from 50% to 30% Due to Gainful Employment Under Section 25F of Industrial Disputes Act, 1947.