Gujarat High Court Upholds Reinstatement of Workman with 50% Backwages in Industrial Dispute Case. Termination by Oral Order Without Inquiry Held Illegal Under Industrial Disputes Act, 1947.

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 before the Labour Court seeking a declaration that the termination was illegal. The petitioner filed a written statement on 23.09.2019. After hearing the parties and examining evidence, the Labour Court partly allowed the reference and directed reinstatement with continuity of service and 50% backwages. The High Court, under Articles 226 and 227 of the Constitution read with the Industrial Disputes Act, 1947, examined the legality of the award. The court noted that the termination was by oral order without any domestic inquiry or compliance with Section 25F of the Act. The Labour Court had found that the workman had worked for more than 240 days in the preceding year and that the employer failed to prove any misconduct or that the termination was for a valid reason. The High Court held that the Labour Court's findings were based on evidence and not perverse. The court also considered the principle that backwages are not automatic but must be granted based on facts. In this case, the workman had remained unemployed and the employer did not lead evidence to show gainful employment. The High Court found no reason to interfere with the award of 50% backwages. The petition was dismissed, and the Labour Court's award was upheld.

Headnote

A) Industrial Law - Termination - Oral Termination - Illegal Termination - Industrial Disputes Act, 1947 - Sections 25F, 25G, 25H - The respondent-workman was terminated by oral order without any notice or inquiry. The Labour Court held the termination illegal and ordered reinstatement with 50% backwages. The High Court upheld the award, finding no perversity in the Labour Court's findings. (Paras 1-7)

B) Industrial Law - Reinstatement - Backwages - Quantum - Industrial Disputes Act, 1947 - Section 11A - The Labour Court granted 50% backwages considering the workman's unemployment and the employer's failure to prove misconduct. The High Court affirmed this as proportionate and not warranting interference. (Paras 2-7)

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Issue of Consideration

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

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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

  • Termination by oral order is illegal
  • Reinstatement with continuity of service
  • 50% backwages
  • No domestic inquiry required for oral termination
  • Burden of proof on employer
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Case Details

2026 LawText (GUJ) (01) 33

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 ordering reinstatement with backwages

Remedy Sought

Petitioner sought to quash the Labour Court award dated 01.08.2023

Filing Reason

Petitioner aggrieved by Labour Court order directing reinstatement with 50% backwages

Previous Decisions

Labour Court partly allowed reference and ordered reinstatement with continuity of service and 50% backwages

Issues

Whether the termination of the respondent-workman by oral order was legal and justified? Whether the Labour Court's award of reinstatement with 50% backwages is proper and does not warrant interference?

Submissions/Arguments

Petitioner argued that the Labour Court erred in granting reinstatement and backwages without proper evidence. Respondent argued that the termination was illegal and the Labour Court correctly ordered reinstatement with backwages.

Ratio Decidendi

Termination by oral order without any domestic inquiry or compliance with Section 25F of the Industrial Disputes Act, 1947 is illegal. The Labour Court's findings based on evidence are not perverse and do not warrant interference under Articles 226 and 227. Reinstatement with 50% backwages is proportionate.

Judgment Excerpts

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. The services of the respondent was terminated by oral order on 01.07.2016

Procedural History

Respondent-workman filed claim form before Labour Court after oral termination on 01.07.2016. Petitioner filed written statement on 23.09.2019. Labour Court passed award on 01.08.2023 partly allowing reference. Petitioner filed present petition under Articles 226 and 227 challenging the award.

Acts & Sections

  • Industrial Disputes Act, 1947: 25F, 25G, 25H, 11A
  • Constitution of India: 226, 227
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High Court Gujarat High Court Upholds Reinstatement of Workman with 50% Backwages in Industrial Dispute Case. Termination by Oral Order Without Inquiry Held Illegal Under Industrial Disputes Act, 1947.
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