Gujarat High Court Quashes Labour Court Order in Termination Dispute Due to Violation of Natural Justice and Lack of Inquiry. Petitioner's Termination Without Disciplinary Proceedings Held Illegal Under Industrial Disputes Act, 1947.

High Court: Gujarat High Court In Favour of Accused
  • 6
Judgement Image
Font size:
Print

Case Note & Summary

The petitioner, Dineshbhai Haribhai Satikunwar, was initially appointed as a daily wager Clerk at the Jasdan Branch of respondent No. 1, Rajkot Nagriksahakari Bank Ltd., on 28.10.1999. On 01.07.2005, he was transferred to respondent No. 2, a contractor, and continued working under them. On 31.08.2012, the petitioner was terminated from services without any disciplinary inquiry or proceedings on the ground of serious misconduct. Aggrieved, the petitioner filed a reference before the Labour Court, Rajkot, seeking declaration that the termination was null and void and for reinstatement with consequential benefits. The Labour Court, vide order dated 16.12.2019, dismissed the reference. The petitioner then filed the present petition under Articles 226 and 227 of the Constitution of India read with the Industrial Disputes Act, 1947, challenging the Labour Court's order. The High Court found that the termination was effected without any disciplinary inquiry, violating principles of natural justice. The court held that the Labour Court erred in dismissing the reference without considering this fundamental procedural flaw. Consequently, the High Court quashed the impugned order and remanded the matter back to the Labour Court for fresh adjudication, directing the Labour Court to decide the reference afresh in accordance with law, after giving both parties an opportunity to lead evidence. The petition was allowed to that extent.

Headnote

A) Industrial Law - Termination - Natural Justice - Sections 25F, 25G, 25H, Industrial Disputes Act, 1947 - Petitioner was terminated without any disciplinary inquiry on ground of misconduct - Labour Court dismissed reference without considering violation of natural justice - Held that termination without inquiry is illegal and Labour Court's order is quashed - Matter remanded for fresh consideration (Paras 1-8).

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the termination of the petitioner without conducting any disciplinary inquiry and proceedings is legal and valid, and whether the Labour Court erred in dismissing the reference.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The High Court allowed the petition, quashed the impugned order dated 16.12.2019 passed by the Labour Court, Rajkot, and remanded the matter back to the Labour Court for fresh adjudication. The Labour Court was directed to decide the reference afresh in accordance with law, after giving both parties an opportunity to lead evidence.

Law Points

  • Termination without disciplinary inquiry violates principles of natural justice
  • Labour Court must consider procedural fairness
  • Burden on employer to justify termination
Subscribe to unlock Law Points Subscribe Now

Case Details

2026 LawText (GUJ) (02) 239

R/Special Civil Application No. 8850 of 2020

2026-02-25

Hemant M. Prachchhak

Krishnan M Ghavariya, Jigar M Patel, Prabhakar Upadhyay, Varun K. Patel

Dineshbhai Haribhai Satikunwar

The Manager, Rajkot Nagriksahakari Bank Ltd. & Ors.

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Petition under Articles 226 and 227 of the Constitution of India challenging Labour Court order dismissing reference for reinstatement and backwages.

Remedy Sought

Petitioner sought quashing of Labour Court order dated 16.12.2019 and direction for reinstatement with continuity of service and full backwages with 12% interest.

Filing Reason

Petitioner was terminated from service on 31.08.2012 without any disciplinary inquiry or proceedings, allegedly for serious misconduct.

Previous Decisions

Labour Court, Rajkot dismissed the reference (LCR Case No. 42 of 2013) vide order dated 16.12.2019.

Issues

Whether the termination of the petitioner without conducting any disciplinary inquiry is legal and valid. Whether the Labour Court erred in dismissing the reference without considering the violation of principles of natural justice.

Submissions/Arguments

Petitioner argued that termination was without any disciplinary inquiry and in breach of principles of natural justice. Respondents contended that the petitioner had committed serious misconduct justifying termination.

Ratio Decidendi

Termination of an employee without conducting any disciplinary inquiry or proceedings is illegal and violative of principles of natural justice. The Labour Court must consider such procedural flaws before dismissing a reference.

Judgment Excerpts

Present petition is filed by the petitioner under Articles 226 and 227 of the Constitution of India read with the provisions of the Industrial Disputes Act, 1947 seeking following reliefs... Brief facts giving rise to the present petition are that, the petitioner was initially appointed as a daily wager Clerk at Jasdan Branch with respondent No. 1 on 28.10.1999.

Procedural History

Petitioner appointed on 28.10.1999, transferred on 01.07.2005, terminated on 31.08.2012 without inquiry. Filed reference before Labour Court on 30.04.2013. Labour Court dismissed reference on 16.12.2019. Petitioner filed present petition on 2020.

Acts & Sections

  • Constitution of India: Articles 226, 227
  • Industrial Disputes Act, 1947:
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Allows Landlords' Eviction Petition in Rent Control Case — Bonafide Need Established, Comparative Hardship Cannot Deny Decree. Section 16(1)(g) of Maharashtra Rent Control Act, 1999 requires eviction when bonafide need is proved a...
Related Judgement
High Court High Court of Karnataka Quashes Upa-Lokayukta Recommendation in Disciplinary Matter — Procedural Fairness Required When Disagreeing with Inquiry Officer. Upa-lokayukta cannot disagree with inquiry officer's findings without providing opportunity of...