High Court of Karnataka Upholds Labour Court Award of Reinstatement with Backwages in Industrial Dispute — Employer's Challenge Dismissed for Lack of Merit. Termination of Workman Found Illegal as Domestic Inquiry Was Not Held and Employer Failed to Prove Misconduct.

High Court: Karnataka High Court Bench: BENGALURU In Favour of Accused
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Case Note & Summary

The petitioner, M/s TTK Healthcare Ltd, an employer engaged in the manufacture of ready-to-eat food products, challenged the award dated 28.02.2014 passed by the Prl. Labour Court, Bangalore in I.D. No.18/2012. The Labour Court had allowed the claim of the respondent-workman, Sri P V Ravi, setting aside his termination and ordering his reinstatement with full backwages and continuity of service. The workman had been employed as a helper from 01.08.2005 and was terminated on 31.08.2009 without any domestic inquiry or compliance with Section 25F of the Industrial Disputes Act, 1947. The workman raised an industrial dispute, which was referred to the Labour Court. The employer contended that the workman had abandoned service, but the Labour Court found that the employer failed to prove abandonment or misconduct. The Labour Court held that the termination was illegal and directed reinstatement with full backwages. The High Court, in its judgment dated 29.03.2023, dismissed the writ petition, holding that the Labour Court's findings were based on evidence and were not perverse. The court noted that the employer did not hold a domestic inquiry and did not comply with Section 25F. The High Court also observed that the workman had been out of employment and the employer did not lead evidence to show gainful employment elsewhere. The court upheld the award of reinstatement with full backwages and continuity of service.

Headnote

A) Industrial Law - Termination of Service - Illegal Termination - Sections 10, 11A, 25F, 25G, 25H of Industrial Disputes Act, 1947 - The workman was terminated without holding a domestic inquiry and without compliance with Section 25F of the Act. The Labour Court found the termination illegal and ordered reinstatement with full backwages and continuity of service. The High Court upheld the award, holding that the employer failed to prove misconduct and that the termination was in violation of principles of natural justice. (Paras 1-10)

B) Industrial Law - Reinstatement - Backwages - Section 11A of Industrial Disputes Act, 1947 - The Labour Court, in exercise of its discretion under Section 11A, ordered reinstatement with full backwages. The High Court affirmed, noting that the workman had been out of employment and the employer did not lead evidence to show that the workman was gainfully employed elsewhere. (Paras 8-10)

C) Constitutional Law - Writ Jurisdiction - Articles 226 and 227 of Constitution of India - The High Court held that the scope of interference with a Labour Court award under Articles 226 and 227 is limited to cases of perversity or error of law. Since the Labour Court's findings were based on evidence and were not perverse, the writ petition was dismissed. (Paras 1, 10)

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Issue of Consideration

Whether the Labour Court was justified in setting aside the termination of the workman and ordering reinstatement with full backwages and continuity of service, and whether the impugned award suffers from any perversity or error of law warranting interference under Articles 226 and 227 of the Constitution of India.

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Final Decision

The High Court dismissed the writ petition, upholding the Labour Court award dated 28.02.2014 in I.D. No.18/2012, which ordered reinstatement of the workman with full backwages and continuity of service.

Law Points

  • Industrial Dispute Act
  • 1947
  • Section 10
  • Section 11A
  • Section 25F
  • Section 25G
  • Section 25H
  • Reinstatement
  • Backwages
  • Domestic Inquiry
  • Misconduct
  • Burden of Proof
  • Writ Jurisdiction under Articles 226 and 227 of Constitution of India
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Case Details

2023 LawText (KAR) (03) 28

Writ Petition No. 29197 of 2014 (L-TER)

2023-03-29

Suraj Govindaraj

Sri. Somashekar, Advocate for S.N.Murthy Associates (for petitioner), Ms. Avani Chokshi, Advocate (for respondent)

M/s TTK Healthcare Ltd

Sri P V Ravi

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Nature of Litigation

Writ petition under Articles 226 and 227 of the Constitution of India challenging an award of the Labour Court in an industrial dispute regarding termination of a workman.

Remedy Sought

The petitioner (employer) sought a writ of certiorari to quash the award dated 28.02.2014 passed by the Prl. Labour Court, Bangalore in I.D. No.18/2012, which ordered reinstatement of the respondent-workman with full backwages and continuity of service.

Filing Reason

The employer challenged the Labour Court award on the ground that the workman had abandoned service and that the award was perverse and contrary to law.

Previous Decisions

The Labour Court, by award dated 28.02.2014, allowed the workman's claim and directed reinstatement with full backwages and continuity of service.

Issues

Whether the Labour Court was justified in setting aside the termination of the workman and ordering reinstatement with full backwages and continuity of service? Whether the impugned award suffers from any perversity or error of law warranting interference under Articles 226 and 227 of the Constitution of India?

Submissions/Arguments

The petitioner (employer) argued that the workman had abandoned service and that the Labour Court erred in ordering reinstatement with backwages. The respondent (workman) contended that the termination was illegal as no domestic inquiry was held and no compliance with Section 25F of the Industrial Disputes Act was made.

Ratio Decidendi

The termination of a workman without holding a domestic inquiry and without compliance with Section 25F of the Industrial Disputes Act, 1947 is illegal. The Labour Court, under Section 11A, has discretion to order reinstatement with backwages, and such award cannot be interfered with under Articles 226 and 227 unless it is perverse or based on no evidence.

Judgment Excerpts

The employer is engaged in the manufacture of ready to eat food products. The workman was terminated on 31.08.2009 without any domestic inquiry or compliance with Section 25F of the Industrial Disputes Act. The Labour Court held that the termination was illegal and directed reinstatement with full backwages and continuity of service. The High Court dismissed the writ petition, holding that the Labour Court's findings were based on evidence and were not perverse.

Procedural History

The workman was employed from 01.08.2005 and terminated on 31.08.2009. He raised an industrial dispute, which was referred to the Labour Court and registered as I.D. No.18/2012. The Labour Court passed an award on 28.02.2014 ordering reinstatement with full backwages and continuity of service. The employer challenged the award by filing Writ Petition No. 29197 of 2014 under Articles 226 and 227 of the Constitution of India. The High Court reserved orders on 24.02.2023 and pronounced judgment on 29.03.2023, dismissing the writ petition.

Acts & Sections

  • Industrial Disputes Act, 1947: 10, 11A, 25F, 25G, 25H
  • Constitution of India: 226, 227
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