Gujarat High Court Upholds Labour Court Award of Reinstatement with 50% Backwages in Industrial Dispute Case. Employer's Claim of Abandonment Rejected as Termination Found Unjustified Under Industrial Disputes Act, 1947.

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

The petitioner, Manager of Oswal Industries Ltd., challenged the award dated 6.5.2023 passed by the Labour Court, Kalol, in Reference T(LC) No. 24 of 2018. The Labour Court had partly allowed the reference filed by the respondent workman, Omprakash Shyamlal Jayswal, and ordered his reinstatement with 50% of his last drawn wages as backwages. The workman had alleged that he was employed in the Furnace department at a daily wage of Rs.432, and his services were terminated on 3.10.2017 without any notice or inquiry. He raised an industrial dispute, which was referred to the Labour Court. The employer contended that the workman had abandoned service on his own and that there were complaints against him from co-staff, and a warning letter was issued. The Labour Court, after considering the evidence, found that the termination was illegal and granted relief. The High Court, in the present petition under Articles 226 and 227 of the Constitution, heard the parties. The petitioner's counsel argued that the Labour Court erred in not accepting the abandonment theory and that the workman had voluntarily left. The respondent's counsel supported the award. The High Court, after perusing the record, found that the Labour Court had correctly appreciated the evidence and that the employer failed to prove abandonment or justify termination. The court noted that no inquiry was conducted and no notice was issued to the workman. The High Court dismissed the petition, upholding the award of reinstatement with 50% backwages, and directed compliance within eight weeks.

Headnote

A) Industrial Law - Reinstatement and Backwages - Termination of Service - Industrial Disputes Act, 1947 - Sections 2A, 10, 11A - The workman alleged termination without notice or inquiry; employer claimed abandonment. Labour Court found termination illegal and ordered reinstatement with 50% backwages. High Court upheld the award, holding that the employer failed to prove abandonment or justify termination. (Paras 1-7)

B) Industrial Law - Burden of Proof - Abandonment of Service - Industrial Disputes Act, 1947 - The employer must prove abandonment by showing intention to leave; mere absence or complaints are insufficient. The Labour Court's finding that the employer did not conduct any inquiry or issue notice before treating the workman as having abandoned service was upheld. (Paras 5-6)

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Issue of Consideration

Whether the Labour Court was justified in ordering reinstatement with 50% backwages despite the employer's claim that the workman abandoned service.

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Final Decision

The High Court dismissed the petition and upheld the Labour Court's award dated 6.5.2023, directing reinstatement with 50% backwages. The employer was ordered to comply within eight weeks.

Law Points

  • Reinstatement with backwages
  • Abandonment of service
  • Termination without inquiry
  • Burden of proof on employer
  • Industrial Disputes Act
  • 1947
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Case Details

2026:GUJHC:14926

R/Special Civil Application No. 13672 of 2023

2026-02-23

Hemant M. Prachchhak

2026:GUJHC:14926

Ms. Hina Desai for Petitioner, Ms. Dipmala S. Desai for Respondent No.1, Ms. Sweety Samara AGP for Respondent No.2

Manager, Oswal Industries Ltd.

Omprakash Shyamlal Jayswal & Anr.

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Nature of Litigation

Petition under Articles 226 and 227 of the Constitution challenging the award of the Labour Court in an industrial dispute regarding termination of service.

Remedy Sought

The petitioner (employer) sought to quash and set aside the Labour Court award granting reinstatement and 50% backwages to the workman.

Filing Reason

The employer was aggrieved by the Labour Court's award dated 6.5.2023 which partly allowed the reference and ordered reinstatement with 50% backwages.

Previous Decisions

The Labour Court, Kalol, passed the impugned award on 6.5.2023 in Reference T(LC) No. 24 of 2018.

Issues

Whether the Labour Court was justified in ordering reinstatement with 50% backwages despite the employer's claim of abandonment? Whether the employer proved that the workman abandoned service voluntarily?

Submissions/Arguments

Petitioner argued that the workman abandoned service on his own, there were complaints against him, and a warning letter was issued; the Labour Court erred in granting relief. Respondent workman supported the Labour Court award, contending that termination was illegal and without inquiry.

Ratio Decidendi

The employer failed to prove abandonment or justify termination; no inquiry or notice was given to the workman. The Labour Court's finding of illegal termination and award of reinstatement with 50% backwages was upheld.

Judgment Excerpts

The Labour Court has partly allowed the reference in favour of the workman and granted reinstatement with 50% of wages of his last drawn wages as backwages. The petitioner never terminated the services of the respondent–workman and that, in fact, the respondent had abandoned the service on his own.

Procedural History

The workman raised an industrial dispute after termination on 3.10.2017. The Labour Court, Kalol, passed an award on 6.5.2023 in Reference T(LC) No. 24 of 2018 partly allowing the reference. The employer filed the present petition under Articles 226 and 227 of the Constitution on 23.02.2026.

Acts & Sections

  • Industrial Disputes Act, 1947: 2A, 10, 11A
  • Constitution of India: 226, 227
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High Court Gujarat High Court Upholds Labour Court Award of Reinstatement with 50% Backwages in Industrial Dispute Case. Employer's Claim of Abandonment Rejected as Termination Found Unjustified Under Industrial Disputes Act, 1947.