Case Note & Summary
The petitioner, Ahmedabad Municipal Transport Service, challenged the award dated 24.11.2021 passed by the Labour Court, Ahmedabad in Reference (LCA) No.625 of 2004. The respondent, Mansuri Firozabanu Rizwan (legal heir of the deceased workman Mansuri Rizwan Fakirmohammed), was employed as a daily wage labourer in the Stores Department from 03.02.1998 on a temporary and ad hoc basis. From 23.04.2002, the respondent stopped receiving work due to non-availability of work and funds. The workman approached the Labour Court seeking reinstatement with continuity and backwages. During the pendency of the reference, the workman died on 05.12.2018, and his legal heir was brought on record. The Labour Court partly allowed the reference and directed the petitioners to pay a lump sum compensation of Rs.1,20,000/- in lieu of reinstatement and backwages. The petitioner filed the present petition under Articles 226 and 227 of the Constitution of India read with the Industrial Disputes Act, 1947, seeking to quash and set aside the award. The High Court examined the facts and found that the workman was a daily wager and his services were discontinued due to lack of work and funds, not as a punitive measure. The Labour Court had considered the evidence and awarded compensation instead of reinstatement, which was a just and proper exercise of discretion. The High Court held that there was no perversity or illegality in the award warranting interference under writ jurisdiction. The petition was dismissed, and the award of the Labour Court was upheld.
Headnote
A) Industrial Disputes Act, 1947 - Retrenchment - Daily Wage Worker - Non-availability of Work - The respondent was employed as a daily wage labourer from 03.02.1998 and stopped receiving work from 23.04.2002 due to non-availability of work and funds. The Labour Court partly allowed the reference and awarded lump sum compensation of Rs.1,20,000/- in lieu of reinstatement and backwages. The High Court upheld the award, holding that the termination was not illegal retrenchment but due to lack of work, and compensation was appropriate. (Paras 2-6) B) Industrial Disputes Act, 1947 - Compensation - Legal Heirs - The respondent died on 05.12.2018 during the pendency of the reference. The Labour Court awarded compensation to the legal heirs. The High Court confirmed that the compensation was just and proper, and no interference was warranted under Articles 226 and 227 of the Constitution. (Paras 3-6) C) Constitution of India - Articles 226 and 227 - Writ of Certiorari - The petitioner challenged the Labour Court award by way of writ of certiorari. The High Court held that the Labour Court's findings were based on evidence and not perverse, and the compensation amount was reasonable, hence the petition was dismissed. (Paras 5-6)
Issue of Consideration
Whether the Labour Court's award of lump sum compensation of Rs.1,20,000/- in lieu of reinstatement and backwages to the legal heirs of a deceased daily wage worker, who was not offered work due to non-availability of work and funds, is legal and proper.
Final Decision
The High Court dismissed the petition and upheld the Labour Court award dated 24.11.2021 directing payment of Rs.1,20,000/- lump sum compensation to the legal heirs of the deceased workman.
Law Points
- Industrial Disputes Act
- 1947
- Section 25F
- Section 25G
- Section 25H
- Section 2(oo)
- retrenchment
- daily wage worker
- lump sum compensation
- reinstatement
- backwages
- legal heirs
- writ of certiorari
- Articles 226 and 227 of Constitution of India
