Gujarat High Court Upholds Employer's Challenge to Reinstatement Order in Oral Termination Case. Labour Court's Award of Reinstatement with 50% Backwages for Workman Terminated Orally Without Inquiry Under Industrial Disputes Act, 1947, Upheld.

High Court: Gujarat High Court Bench: AHEMDABAD In Favour of Accused
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Case Note & Summary

The petitioner, I.T.M. Vocational University, challenged the judgment and award dated 01.08.2023 passed by the Labour Court, Vadodara in Reference (LCV) No. 554 of 2017. The respondent-workman, Naginbhai Jethabhai Parmar, joined the petitioner University in June 2012 as an Operator (Non-Teaching Staff). His services were terminated by an oral order on 01.07.2016. Aggrieved, the workman filed a Claim Form (Exh.-4) before the Labour Court 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. The petitioner, being aggrieved, filed the present petition under Articles 226 and 227 of the Constitution of India read with the Industrial Disputes Act, 1947. The High Court considered the submissions of both sides. The petitioner argued that the Labour Court erred in granting 50% backwages without considering that the workman did not prove he was unemployed after termination. The respondent supported the award. The High Court found that the Labour Court had correctly held the termination illegal as it was oral and without any inquiry. The court noted that the workman had worked for about four years and his termination was in violation of principles of natural justice. Regarding backwages, the court observed that the Labour Court had exercised discretion in awarding 50% backwages, which was not excessive or perverse. The High Court held that no interference was warranted under Article 227 as the award was just and proper. Accordingly, the petition was dismissed and the Labour Court's award was upheld.

Headnote

A) Industrial Law - Illegal Termination - Oral Termination - Reinstatement with Backwages - The workman was terminated orally on 01.07.2016 without any domestic inquiry or compliance with Section 25F of the Industrial Disputes Act, 1947 - The Labour Court held the termination illegal and directed reinstatement with continuity of service and 50% backwages - The High Court upheld the award, finding no perversity or error of law (Paras 1-7).

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Issue of Consideration

Whether the Labour Court was justified in directing reinstatement with continuity of service and 50% backwages for the workman whose services were terminated orally without any inquiry.

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Final Decision

The High Court dismissed the petition and upheld the Labour Court's award dated 01.08.2023 directing reinstatement of the respondent-workman with continuity of service and 50% backwages.

Law Points

  • Oral termination is illegal
  • Reinstatement with continuity of service
  • 50% backwages
  • No domestic inquiry required for illegal termination
  • Section 25F of Industrial Disputes Act
  • 1947
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Case Details

2026 LawText (GUJ) (01) 32

R/SPECIAL CIVIL APPLICATION NO. 19721 of 2023

2026-01-05

Hemant M. Prachchhak

Mr. Manan Bhatt, Robin Prasad

I.T.M. Vocational University

Naginbhai Jethabhai Parmar

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Nature of Litigation

Challenge to Labour Court award directing reinstatement with backwages for illegal oral termination.

Remedy Sought

Petitioner (University) 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-workman with continuity of service and 50% backwages.

Previous Decisions

Labour Court partly allowed Reference (LCV) No. 554 of 2017 on 01.08.2023, directing reinstatement with continuity of service and 50% backwages.

Issues

Whether the Labour Court's award of reinstatement with 50% backwages was perverse or illegal? Whether the oral termination of the workman was valid?

Submissions/Arguments

Petitioner argued that the Labour Court erred in granting 50% backwages without considering that the workman did not prove he was unemployed after termination. Respondent supported the Labour Court's award, submitting that the termination was illegal and the award was just and proper.

Ratio Decidendi

Oral termination of a workman without any inquiry or compliance with Section 25F of the Industrial Disputes Act, 1947 is illegal. The Labour Court's discretion in awarding 50% backwages was not excessive or perverse, and no interference under Article 227 is warranted.

Judgment Excerpts

The Labour Court has rightly held that the termination of the respondent-workman is illegal and directed the petitioner to reinstate the respondent with continuity of service alongwith 50% backwages. The impugned judgment and award passed by the learned Labour Court is just and proper and no interference is called for.

Procedural History

The respondent-workman filed a Claim Form (Exh.-4) before the Labour Court after his oral termination on 01.07.2016. The petitioner filed a Written Statement on 23.09.2019. The Labour Court passed the impugned award on 01.08.2023. The petitioner then filed the present Special Civil Application under Articles 226 and 227 of the Constitution of India.

Acts & Sections

  • Industrial Disputes Act, 1947: Section 25F
  • Constitution of India: Article 226, Article 227
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