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, Khodasing Fatehsing Lakum, was employed as a Driver (Non-Teaching Staff) with the petitioner University from 28.02.2013. His services were terminated by an oral order on 01.08.2016. Aggrieved, the workman approached the Labour Court by filing a Claim Form (Exh.-4) seeking a declaration that the termination was illegal. The petitioner filed a detailed Written Statement on 23.09.2019. After considering oral and documentary evidence, the Labour Court partly allowed the reference and directed the petitioner to reinstate the workman with continuity of service and 50% backwages. The petitioner challenged this award under Articles 226 and 227 of the Constitution of India read with the Industrial Disputes Act, 1947. The High Court heard both sides. The petitioner argued that the Labour Court erred in granting 50% backwages without considering that the workman did not prove he was not gainfully employed. The respondent supported the award. The High Court noted that the termination by oral order was illegal and reinstatement was proper. However, regarding backwages, the Court observed that the workman did not lead any evidence to show he was not gainfully employed after termination, and there was a delay in approaching the Labour Court. The Court held that backwages cannot be granted mechanically and must be proportionate. Accordingly, the High Court modified the award by reducing backwages from 50% to 30% of the last drawn wages, while upholding the reinstatement with continuity of service. The petition was partly allowed.
Headnote
A) Industrial Law - Termination - Oral Termination - Illegal Termination - Sections 25F, 2A of Industrial Disputes Act, 1947 - The respondent-workman was terminated by oral order without following due process - The Labour Court held the termination illegal and ordered reinstatement with continuity of service and 50% backwages - The High Court upheld the reinstatement but reduced backwages to 30% considering the delay in approaching the court and the workman's failure to prove no gainful employment (Paras 2-8). B) Industrial Law - Backwages - Quantum of Backwages - Section 11A of Industrial Disputes Act, 1947 - The Labour Court awarded 50% backwages - The High Court modified it to 30% as the workman did not lead evidence to show he was not gainfully employed and there was delay in filing the claim - Held that backwages cannot be granted mechanically and must be proportionate to the facts (Paras 7-8).
Issue of Consideration
Whether the Labour Court's award of reinstatement with 50% backwages was justified in the facts and circumstances of the case.
Final Decision
The petition is partly allowed. The impugned 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% backwages. The rest of the award regarding reinstatement with continuity of service is confirmed.
Law Points
- Termination by oral order is illegal
- Reinstatement with continuity of service is proper
- Backwages must be proportionate to delay and circumstances
- No requirement of strict proof of gainful employment for backwages
