Case Note & Summary
The petitioner, Kalubhai Shukkarabhai Kalat, was employed as a Watchman with the respondent State of Gujarat from 1 July 2010 to 1 August 2015. During his service, he was not issued any appointment letter, identity card, service book, seniority record, or statutory benefits. On 1 August 2015, he was orally and arbitrarily discharged from service without following due procedure. Aggrieved, he raised an industrial dispute before the Labour Court, Valsad, which partly allowed the reference vide award dated 11 March 2025 in Reference (LCV) No. 18 of 2016, awarding Rs.60,000/- as lumpsum compensation without continuity of service and reinstatement. The petitioner challenged this award before the High Court under Articles 226 and 227 of the Constitution of India read with the Industrial Disputes Act. The High Court heard learned counsel for both sides. The petitioner's counsel argued that the compensation was inadequate given the five years of service and the arbitrary termination. The respondent's counsel supported the award. The High Court, after considering the facts and submissions, found that the compensation of Rs.60,000/- was on the lower side and enhanced it to Rs.1,50,000/- payable within eight weeks, failing which interest at 6% per annum would accrue. The petition was partly allowed, and the award was modified accordingly.
Headnote
A) Industrial Law - Unfair Labour Practice - Termination without due process - Workman worked as Watchman from 1.7.2010 to 1.8.2015 without appointment letter or statutory benefits - Terminated orally and arbitrarily - Labour Court partly allowed reference and awarded Rs.60,000/- lumpsum compensation without reinstatement - Held that compensation of Rs.60,000/- is inadequate considering length of service and nature of termination - High Court enhanced compensation to Rs.1,50,000/- (Paras 1-6).
Issue of Consideration
Whether the Labour Court's award of Rs.60,000/- lumpsum compensation without reinstatement and continuity of service is just and proper, and whether the petitioner is entitled to higher compensation.
Final Decision
The petition is partly allowed. The impugned award dated 11.03.2025 is modified. The respondent is directed to pay Rs.1,50,000/- as lumpsum compensation to the petitioner within eight weeks from the date of receipt of the order, failing which the amount shall carry interest at 6% per annum from the date of the order till realization. Rule made absolute to the aforesaid extent.
Law Points
- Industrial Disputes Act
- 1947
- Section 25F
- Section 25G
- Section 25H
- Section 11A
- Compensation in lieu of reinstatement
- Lumpsum compensation
- Back wages
