Gujarat High Court Dismisses Employer's Petition Challenging Labour Court Award of Reinstatement with 20% Backwages for Illegal Termination. Termination of Workman Without Compliance with Section 25F of Industrial Disputes Act, 1947 Held Illegal.

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

The petitioner, Maan Industries (India) Ltd., challenged the award dated 4.7.2019 passed by the Labour Court, Bhuj-Kutch in Reference (LCB) No. 70 of 2010. The respondent workman was appointed on 6.5.2005 as a Hydro Crane Operator and was made permanent after probation. He was granted leave from 23.6.2010 to 5.7.2010 with an advance of Rs.5,000/-. Upon completion of leave, when he approached the company, he was not permitted to join duty and his services were illegally terminated on 20.7.2010. The workman raised a dispute, which was referred to the Labour Court. The Labour Court, after hearing both sides and appreciating evidence, partly allowed the reference and granted reinstatement with continuity of service and 20% backwages. The employer filed the present petition under Articles 14, 16, 226 and 227 of the Constitution read with the Industrial Disputes Act, 1947. The High Court examined the record and found that the Labour Court had correctly concluded that the termination was illegal as the employer failed to comply with Section 25F of the Industrial Disputes Act, 1947. The employer's contention that the workman had abandoned service was not supported by evidence. The High Court held that the Labour Court's findings were based on proper appreciation of evidence and did not warrant interference under Article 227. The petition was dismissed, and the award of reinstatement with 20% backwages was upheld.

Headnote

A) Industrial Law - Illegal Termination - Section 25F of Industrial Disputes Act, 1947 - Reinstatement with Backwages - The workman was appointed on 6.5.2005 and made permanent after probation. He was granted leave from 23.6.2010 to 5.7.2010 with an advance of Rs.5,000/-. Upon reporting back, he was not permitted to join and his services were illegally terminated on 20.7.2010 without compliance with Section 25F of the Industrial Disputes Act, 1947. The Labour Court found the termination illegal and granted reinstatement with continuity of service and 20% backwages. The High Court upheld the award, noting that the employer failed to prove that the workman abandoned service or that the termination was legal. (Paras 1-6)

B) Industrial Law - Reinstatement - Backwages - Section 25F of Industrial Disputes Act, 1947 - The Labour Court awarded 20% backwages, which was not challenged by the workman. The High Court found no reason to interfere with the quantum of backwages as the Labour Court had exercised discretion properly. The employer's petition was dismissed. (Paras 5-6)

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Issue of Consideration

Whether the termination of the workman was illegal and whether the Labour Court's award of reinstatement with 20% backwages is sustainable.

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Final Decision

The High Court dismissed the petition and upheld the Labour Court's award dated 4.7.2019 granting reinstatement with continuity of service and 20% backwages.

Law Points

  • Termination without compliance with Section 25F of Industrial Disputes Act
  • 1947 is illegal
  • Reinstatement with continuity of service and backwages is appropriate remedy for illegal termination
  • Labour Court's findings on facts and evidence are not to be interfered with under Article 227 unless perverse
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Case Details

2026 LawText (GUJ) (01) 484

R/Special Civil Application No. 4791 of 2020

2026-01-07

Hemant M. Prachchhak

Mr. Hemal Shah for the Petitioner, Mr. Ashish Makwana for Mr. RM Parmar for the Respondent

Maan Industries (India) Ltd.

Vashishtha Narayan Singh Rameshsingh

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Nature of Litigation

Petition under Articles 14, 16, 226 and 227 of Constitution of India challenging Labour Court award granting reinstatement with backwages.

Remedy Sought

Petitioner employer sought to quash and set aside the Labour Court award dated 4.7.2019.

Filing Reason

The employer was aggrieved by the Labour Court's award granting reinstatement with continuity of service and 20% backwages to the workman.

Previous Decisions

Labour Court partly allowed Reference (LCB) No. 70 of 2010 on 4.7.2019, granting reinstatement with continuity of service and 20% backwages.

Issues

Whether the termination of the workman was illegal? Whether the Labour Court's award of reinstatement with 20% backwages is sustainable?

Submissions/Arguments

Petitioner argued that the workman had abandoned service and the termination was legal. Respondent workman supported the Labour Court's findings that termination was illegal and without compliance with Section 25F.

Ratio Decidendi

Termination of a workman without compliance with Section 25F of the Industrial Disputes Act, 1947 is illegal. The Labour Court's findings based on evidence are not to be interfered with under Article 227 unless perverse. Reinstatement with continuity of service and backwages is the appropriate remedy for illegal termination.

Judgment Excerpts

Present petition is filed by the petitioner under Articles 14, 16, 226 and 227 of the Constitution of India r/w the provisions of Industrial Disputes Act, 1947 challenging the impugned award dated 4.7.2019 in Reference (LCB) No. 70 of 2010 passed by the Presiding Officer, Labour Court, Bhuj-Kutch whereby the Labour Court has granted reinstatement with continuity of service with 20% backwages in favour of workman. After hearing both the parties and after appreciating the evidence placed on record, the labour Court has partly allowed the said reference and granted reinstatement with continuity of service with 20% backwages in favour of the workman.

Procedural History

The workman was appointed on 6.5.2005, made permanent, granted leave from 23.6.2010 to 5.7.2010, and terminated on 20.7.2010. He filed Reference (LCB) No. 70 of 2010 before the Labour Court, Bhuj-Kutch. The Labour Court partly allowed the reference on 4.7.2019. The employer filed Special Civil Application No. 4791 of 2020 before the High Court of Gujarat, which was dismissed on 7.1.2026.

Acts & Sections

  • Industrial Disputes Act, 1947: Section 25F
  • Constitution of India: Articles 14, 16, 226, 227
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