Gujarat High Court Upholds Reinstatement with 50% Backwages for Workman Terminated Orally Without Inquiry. Oral Termination Without Domestic Inquiry or Notice Held Illegal Under Industrial Disputes Act, 1947.

High Court: Gujarat High Court 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, 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 challenged this award before the High Court under Articles 226 and 227 of the Constitution of India read with the Industrial Disputes Act, 1947. The High Court examined the impugned award and found that the Labour Court had correctly appreciated the evidence and concluded that the termination was illegal as it was by oral order without any domestic inquiry or notice. The High Court held that there was no perversity or error in the Labour Court's findings and that the award did not require any interference. Consequently, the petition was dismissed, and the Labour Court's award was upheld.

Headnote

A) Industrial Law - Illegal Termination - Oral Termination - Section 25F of Industrial Disputes Act, 1947 - The respondent-workman was terminated by oral order without any domestic inquiry or notice - 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 in the Labour Court's findings (Paras 1-7).

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Issue of Consideration

Whether the termination of the respondent-workman by oral order without following due process of law is illegal and whether the Labour Court's award of reinstatement with 50% backwages is justified.

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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 requirement of domestic inquiry for oral termination
  • Section 25F of Industrial Disputes Act
  • 1947
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Case Details

2026 LawText (GUJ) (01) 442

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

Remedy Sought

Petitioner sought quashing of Labour Court award dated 01.08.2023

Filing Reason

Petitioner aggrieved by Labour Court's direction to reinstate workman with 50% backwages

Previous Decisions

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

Issues

Whether the termination of the respondent-workman by oral order was illegal? Whether the Labour Court's award of reinstatement with 50% backwages is perverse or erroneous?

Submissions/Arguments

Petitioner argued that the Labour Court's award is erroneous and requires interference. Respondent supported the Labour Court's findings and argued that the termination was illegal.

Ratio Decidendi

Termination by oral order without any domestic inquiry or notice is illegal under the Industrial Disputes Act, 1947. The Labour Court's findings based on evidence are not perverse and do not warrant interference under Articles 226 and 227 of the Constitution.

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 Labour Court passed the impugned judgment and award dated 01.08.2023 in Reference (LCV) No. 554 of 2017.

Procedural History

The respondent-workman filed a claim form before the Labour Court after 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 filed the present Special Civil Application on 19.12.2023. The High Court dismissed the petition on 05.01.2026.

Acts & Sections

  • Industrial Disputes Act, 1947: Section 25F
  • Constitution of India: Article 226, Article 227
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High Court Gujarat High Court Upholds Reinstatement with 50% Backwages for Workman Terminated Orally Without Inquiry. Oral Termination Without Domestic Inquiry or Notice Held Illegal Under Industrial Disputes Act, 1947.