Case Note & Summary
The case involved a challenge by the State of Gujarat to a Labour Court award that granted reinstatement to a daily wager without continuity of service or back wages. The respondent-workman had worked as a daily wager from 1 June 1993 to 31 December 2008 with a constant wage of Rs. 2,500. His services were orally terminated on 31 December 2008 without notice, reasons, or pay in lieu of notice. He raised an industrial dispute before the Labour Court, Jamnagar on 27 September 2016. The Labour Court partly allowed the reference on 24 October 2019 by directing reinstatement but denying continuity of service and back wages. The State authorities filed a petition under Articles 226 and 227 of the Constitution read with the Industrial Disputes Act, 1947, challenging the award as illegal and without jurisdiction. The State contended that the workman voluntarily absented himself and never worked continuously, and that no evidence supported his claim. The workman opposed the petition, highlighting that in a similar case (Special Civil Application No. 5191 of 2020), the High Court had directed reinstatement with continuity of service, and the State’s subsequent Letters Patent Appeal and review were dismissed. The High Court considered the submissions and noted the binding Supreme Court precedent in Gurpreet Singh v. State of Punjab, (2002) 9 SCC 492, which holds that when termination is set aside and reinstatement is ordered, the workman is entitled to continuity of service as a matter of right because it is not a fresh appointment. The court found that the identical factual and legal matrix in the related case had already been settled against the State, and the present petition did not survive. Consequently, the High Court dismissed the petition, discharged the rule, and made no order as to costs, thereby upholding the Labour Court’s award of reinstatement and effectively granting continuity of service.
Headnote
A) Labour Law – Reinstatement and Continuity of Service – Industrial Disputes Act, 1947 – Section 25F and related provisions – Labour Court granted reinstatement without continuity of service; High Court upheld reinstatement but relying on Supreme Court in Gurpreet Singh v. State of Punjab, (2002) 9 SCC 492, held that continuity of service cannot be denied when termination is set aside as it is not a case of fresh appointment – Held, State’s petition dismissed, and the workman is entitled to continuity of service (Paras 7-10).
Issue of Consideration
Validity of Labour Court award granting reinstatement without continuity of service and back wages; whether the State's challenge to the award is maintainable given a similar case already decided against it.
Final Decision
The present petition is hereby dismissed. Rule is discharged. There shall be no order as to costs. The Labour Court's award of reinstatement is upheld, and by virtue of the Supreme Court precedent in Gurpreet Singh, the workman is entitled to continuity of service.
Law Points
- Industrial Disputes Act
- 1947
- reinstatement
- continuity of service
- daily wager
- termination
- 25F
- precedent
