Gujarat High Court Dismisses Employer's Challenge to Labour Court Award of Reinstatement with 30% Backwages for Workman. Termination of Daily Wager 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 judgment arises from two Special Civil Applications filed under Articles 14, 21, 226, and 227 of the Constitution of India read with the Industrial Disputes Act, 1947. The employer (Deputy Executive Engineer) challenged the Labour Court, Godhra's award dated 05.01.2022 in Reference (T) No. 146 of 2013, which allowed the workman's reference in full, ordering reinstatement with continuity of service and 30% backwages. The workman also filed a petition seeking full backwages. The workman, Udabhai Surthabhai Pateliya, was employed as a daily wager with the respondent authority. He alleged that his services were terminated illegally without compliance with Section 25F of the Industrial Disputes Act, 1947. The Labour Court found that the workman had completed 240 days of continuous service in the preceding 12 months and that the employer failed to follow the mandatory procedure of giving notice or paying retrenchment compensation. The Labour Court directed reinstatement with continuity of service and 30% backwages. The employer argued that the workman was not a workman and that the termination was justified, but the High Court found no merit. The High Court held that the Labour Court's findings were based on evidence and that the award did not suffer from any perversity or illegality warranting interference under Article 227. The employer's petition was dismissed, and the workman's petition for full backwages was also dismissed as the Labour Court's discretion was reasonable.

Headnote

A) Industrial Disputes Act, 1947 - Section 25F - Retrenchment - Compliance - Workman completed 240 days of continuous service in preceding 12 months - Termination without notice or retrenchment compensation held illegal - Labour Court correctly ordered reinstatement with continuity and 30% backwages - Employer's petition dismissed (Paras 1-10).

B) Industrial Disputes Act, 1947 - Section 25B - Continuous Service - Burden of Proof - Workman discharged initial burden by showing 240 days of service - Employer failed to rebut with cogent evidence - Labour Court's finding of fact upheld (Paras 5-8).

C) Industrial Disputes Act, 1947 - Section 11A - Relief - Backwages - Discretion - Labour Court granted 30% backwages considering workman's age and length of service - No perversity or illegality - High Court declined to interfere under Article 227 (Paras 9-10).

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Issue of Consideration

Whether the Labour Court was justified in ordering reinstatement with 30% backwages in favour of the workman, and whether the employer's challenge to the award is maintainable.

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Final Decision

Both petitions dismissed. Labour Court award dated 05.01.2022 in Reference (T) No. 146 of 2013 upheld. No interference under Article 227 of the Constitution of India.

Law Points

  • Section 25F of Industrial Disputes Act
  • 1947
  • retrenchment compensation
  • notice pay
  • 240 days continuous service
  • burden of proof on workman
  • reinstatement with backwages
  • proportionality of backwages
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Case Details

2026:GUJHC:14673

R/SPECIAL CIVIL APPLICATION NO. 2010 of 2023 with R/SPECIAL CIVIL APPLICATION NO. 24210 of 2022

2026-02-20

HEMANT M. PRACHCHHAK

2026:GUJHC:14673

MR DIPAK R DAVE for the Petitioner(s) No. 1, MR MRUNAL DHOLARIA, ASST. GOVERNMENT PLEADER for the Respondent(s) No. 1

Udabhai Surthabhai Pateliya (in SCA/2010/2023) and Deputy Executive Engineer (in SCA/24210/2022)

Deputy Executive Engineer (in SCA/2010/2023) and Udabhai Surthabhai Pateliya (in SCA/24210/2022)

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Nature of Litigation

Industrial dispute regarding illegal termination of a daily wager workman.

Remedy Sought

Workman sought reinstatement with continuity of service and full backwages; employer sought quashing of Labour Court award granting reinstatement with 30% backwages.

Filing Reason

Workman challenged termination without compliance with Section 25F of Industrial Disputes Act, 1947; employer challenged Labour Court award.

Previous Decisions

Labour Court, Godhra passed award dated 05.01.2022 in Reference (T) No. 146 of 2013 allowing the reference in full, ordering reinstatement with continuity and 30% backwages.

Issues

Whether the Labour Court's award of reinstatement with 30% backwages is legal and proper. Whether the workman completed 240 days of continuous service and whether termination violated Section 25F of Industrial Disputes Act, 1947.

Submissions/Arguments

Employer argued that the workman was not a workman and that the termination was justified. Workman argued that he had completed 240 days of service and termination was illegal without notice or compensation.

Ratio Decidendi

Termination of a workman who has completed 240 days of continuous service without complying with Section 25F of the Industrial Disputes Act, 1947 is illegal. The Labour Court has discretion under Section 11A to grant reinstatement with or without backwages, and such discretion, if exercised reasonably, will not be interfered with under Article 227.

Judgment Excerpts

Rule returnable forthwith. The Labour Court has rightly held that the workman had completed 240 days of continuous service and that the termination was illegal for non-compliance with Section 25F. The award does not suffer from any perversity or illegality warranting interference under Article 227.

Procedural History

Reference (T) No. 146 of 2013 was filed by the workman before the Labour Court, Godhra, which passed an award on 05.01.2022 allowing the reference. Both the employer and the workman challenged the award by filing Special Civil Applications No. 24210 of 2022 and No. 2010 of 2023 respectively before the High Court of Gujarat. The High Court heard both petitions together and dismissed them on 20.02.2026.

Acts & Sections

  • Industrial Disputes Act, 1947: 25F, 25B, 11A
  • Constitution of India: 14, 21, 226, 227
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High Court Gujarat High Court Dismisses Employer's Challenge to Labour Court Award of Reinstatement with 30% Backwages for Workman. Termination of Daily Wager Without Compliance with Section 25F of Industrial Disputes Act, 1947 Held Illegal.
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