Gujarat High Court Dismisses State's Petition Challenging Labour Court Award Granting Compensation to Legal Heirs of Deceased Workman. Oral Termination of Watchman Without Compliance with Section 25F of Industrial Disputes Act, 1947 Invalid; 25% Compensation in Lieu of Reinstatement Upheld.

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

The petitioner, Range Forest Officer, challenged the judgment and award dated 03.12.2022 passed by the Labour Court, Valsad in Reference (LCV) No. 196 of 2016. The respondent-workman, Rajubhai Raghubhai Deshmukh, was employed as a Watchman with the Forest Department for three years and was drawing wages of Rs. 5,897/- per month. His services were orally terminated on 01.06.2015 without any notice or compliance with Section 25F of the Industrial Disputes Act, 1947. The legal heirs of the deceased workman filed a claim statement before the Labour Court. The petitioner opposed the reference by filing a written statement. After hearing the parties and examining the evidence, the Labour Court partly allowed the reference, granting 25% compensation in lieu of reinstatement and consequential benefits. The petitioner, being aggrieved, filed the present petition under Articles 226 and 227 of the Constitution of India. The High Court heard the learned Assistant Government Pleader for the petitioner and the learned counsel for the respondent. The court found that the Labour Court had correctly held the termination invalid due to non-compliance with Section 25F. Since the workman had died, reinstatement was not possible, and the Labour Court had exercised its discretion under Section 11A to award 25% compensation. The High Court held that the impugned award did not suffer from any perversity or illegality and dismissed the petition. The court also noted that the amount of compensation was just and proper in the circumstances.

Headnote

A) Industrial Law - Retrenchment - Section 25F of Industrial Disputes Act, 1947 - Oral Termination - The workman was employed as a Watchman for three years and his services were orally terminated on 01.06.2015 without following the mandatory procedure under Section 25F of the Act. The Labour Court held the termination invalid and granted 25% compensation in lieu of reinstatement to the legal heirs. The High Court upheld the award, finding no perversity or illegality. (Paras 2-7)

B) Industrial Law - Compensation in Lieu of Reinstatement - Section 11A of Industrial Disputes Act, 1947 - Legal Heirs - The workman died during the pendency of the reference. The Labour Court, exercising discretion under Section 11A, awarded 25% of the back wages and compensation instead of reinstatement, considering the death of the workman. The High Court affirmed the award as just and proper. (Paras 6-7)

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Issue of Consideration

Whether the Labour Court was justified in granting 25% compensation in lieu of reinstatement to the legal heirs of the deceased workman whose services were orally terminated without compliance with Section 25F of the Industrial Disputes Act, 1947.

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Final Decision

The High Court dismissed the petition, upholding the Labour Court's award dated 03.12.2022 granting 25% compensation in lieu of reinstatement to the legal heirs of the deceased workman. Rule discharged. No order as to costs.

Law Points

  • Industrial Disputes Act
  • 1947
  • Section 25F
  • oral termination
  • reinstatement
  • compensation in lieu of reinstatement
  • legal heirs
  • workman
  • watchman
  • three years continuous service
  • retrenchment compensation
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Case Details

2026:GUJHC:16499

R/SPECIAL CIVIL APPLICATION NO. 7229 of 2024

2026-03-02

Hemant M. Prachchhak

2026:GUJHC:16499

Ms. Roshni Patel, Mr. K.I. Kazi

Range Forest Officer

LHS of Rajubhai Raghubhai Deshmukh Jijaben Rajubhai Deshmukh

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Nature of Litigation

Petition under Articles 226 and 227 of the Constitution of India challenging the judgment and award of the Labour Court in an industrial dispute reference.

Remedy Sought

The petitioner-State sought to quash and set aside the Labour Court's award granting 25% compensation to the legal heirs of the deceased workman.

Filing Reason

The petitioner was aggrieved by the Labour Court's award dated 03.12.2022 which partly allowed the reference filed by the legal heirs of the deceased workman, granting 25% compensation in lieu of reinstatement.

Previous Decisions

The Labour Court, Valsad, passed the impugned judgment and award dated 03.12.2022 in Reference (LCV) No. 196 of 2016, partly allowing the reference.

Issues

Whether the oral termination of the workman without compliance with Section 25F of the Industrial Disputes Act, 1947 was valid. Whether the Labour Court's award of 25% compensation in lieu of reinstatement to the legal heirs of the deceased workman was justified.

Submissions/Arguments

Learned AGP Ms. Patel submitted that the impugned award was illegal, unjust, arbitrary, erroneous, and contrary to the facts and material on record and the provisions of the Act. Learned counsel Mr. Kazi supported the impugned award and submitted that the Labour Court had correctly exercised its discretion.

Ratio Decidendi

The oral termination of a workman without compliance with Section 25F of the Industrial Disputes Act, 1947 is invalid. In cases where the workman has died, the Labour Court may, under Section 11A, award compensation in lieu of reinstatement to the legal heirs, and such award is not perverse or illegal.

Judgment Excerpts

Present petition is filed by the petitioner-State under Articles 226 & 227 of the Constitution of India read with the provisions of the Industrial Disputes Act, 1947 challenging the judgment and award dated 03.12.2022 passed by the learned Presiding Officer, Labour Court, Valsad in Reference (LCV) No. 196 of 2016, whereby, the learned Judge has partly allowed the Reference filed by the legal heirs of the deceased respondent-workman granting 25% in lieu of reinstatement and consequential benefits. The Labour Court has rightly held that the termination of the workman was illegal and invalid as the provisions of Section 25F of the Act were not complied with.

Procedural History

The respondent-workman was orally terminated on 01.06.2015. The legal heirs filed a claim statement before the Labour Court, Valsad, which was registered as Reference (LCV) No. 196 of 2016. The Labour Court passed the impugned award on 03.12.2022. The petitioner-State filed the present petition under Articles 226 and 227 of the Constitution of India on 22.04.2024. The High Court heard the matter and delivered judgment on 02.03.2026.

Acts & Sections

  • Industrial Disputes Act, 1947: Section 25F, Section 11A
  • Constitution of India: Article 226, Article 227
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High Court Gujarat High Court Dismisses State's Petition Challenging Labour Court Award Granting Compensation to Legal Heirs of Deceased Workman. Oral Termination of Watchman Without Compliance with Section 25F of Industrial Disputes Act, 1947 Invalid; 25% Comp...