Gujarat High Court Allows State's Appeal Against Labour Court Award Directing Backwages for Period Workmen Were Not in Service — Workmen Not Entitled to Wages for Period They Did Not Work Despite Reinstatement Order.

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

The case involves a Letters Patent Appeal filed by the State of Gujarat against an order of a learned Single Judge directing the State to pay wages to the workmen for the period from 22.07.2000 (corrected to 22.03.2000) to 15.01.2007, during which the workmen were not in service. The background is that the workmen's services were terminated, and they raised a dispute before the Labour Court. The Labour Court, by its award dated 22.03.2000, directed that the workmen be engaged as new daily wagers but denied backwages and continuity of service. The State challenged this award by filing Special Civil Application No.4569 of 2021, which was dismissed. Consequently, the workmen were given appointment orders on 08.01.2007 and joined service on 17.01.2007. Thereafter, the workmen filed a writ petition seeking a direction to treat their reinstatement from 15.01.2000 as illegal and to direct the State to treat them as being in service from 22.07.2000 and grant all benefits under the Government Resolution dated 17.10.1988. The learned Single Judge partly allowed the petition, directing the State to consider 22.07.2000 as the date from which all benefits should be given and to pay wages for the period from 22.07.2000 to 15.01.2007. The State appealed against this order. The Division Bench observed that the Labour Court had specifically denied backwages and continuity of service, and the workmen had not challenged that part of the award. The workmen were reinstated only on 17.01.2007, and they did not work during the intervening period. Applying the principle of 'no work no pay', the Court held that the workmen were not entitled to wages for the period they did not work. The Division Bench allowed the appeal, set aside the impugned order of the learned Single Judge, and dismissed the workmen's writ petition. The connected civil applications were also disposed of.

Headnote

A) Service Law - Reinstatement - Backwages - No Work No Pay - Workmen terminated, Labour Court directed reinstatement as new daily wagers without backwages or continuity - Workmen reinstated on 17.01.2007 - Later, Single Judge directed payment of wages for the period from 22.07.2000 to 15.01.2007 - Held that workmen are not entitled to wages for the period they did not work, as the Labour Court had denied backwages and the workmen did not challenge that denial - Appeal allowed, impugned order set aside (Paras 1-5).

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Issue of Consideration

Whether the workmen are entitled to wages for the period from 22.07.2000 (or 22.03.2000) to 15.01.2007 during which they were not in service despite the Labour Court's award of reinstatement.

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Final Decision

Appeal allowed. Impugned order of learned Single Judge set aside. Writ petition filed by workmen dismissed. Connected civil applications disposed of.

Law Points

  • Reinstatement does not automatically entitle workmen to backwages for the period they were not in service
  • No work no pay principle
  • Labour Court award directing backwages for period of non-employment set aside
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Case Details

2026:GUJHC:20513-DB

R/LETTERS PATENT APPEAL NO. 99 of 2026

2026-03-17

N.S.Sanjay Gowda, J. L. Odedra

2026:GUJHC:20513-DB

Ms Shruti Dhruve, Mr Dipak R Dave

State of Gujarat & Ors.

Nanabhai Bhagwanbhai Malivad & Ors.

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Nature of Litigation

Letters Patent Appeal against order of Single Judge directing payment of wages for period workmen were not in service.

Remedy Sought

State sought setting aside of Single Judge's order directing payment of wages for period from 22.07.2000 to 15.01.2007.

Filing Reason

State aggrieved by Single Judge's order directing payment of wages for period workmen were not in service despite Labour Court having denied backwages.

Previous Decisions

Labour Court award dated 22.03.2000 directed reinstatement as new daily wagers without backwages or continuity; SCA No.4569 of 2021 filed by State dismissed; workmen reinstated on 17.01.2007; Single Judge partly allowed workmen's petition directing payment of wages for period from 22.07.2000 to 15.01.2007.

Issues

Whether workmen are entitled to wages for the period they were not in service despite Labour Court's denial of backwages and continuity.

Submissions/Arguments

Appellant argued that workmen were not entitled to wages for the period they did not work, as Labour Court had denied backwages and workmen did not challenge that denial. Respondents argued that they were entitled to benefits from the date of Labour Court award.

Ratio Decidendi

Workmen are not entitled to wages for the period they did not work, as the Labour Court had denied backwages and continuity of service, and the workmen did not challenge that part of the award. The principle of 'no work no pay' applies.

Judgment Excerpts

The Labour Court, by its award dated 22.07.2000 (it is stated that the date of the award was 22.03.2000 and not 22.07.2000) directed the respondents herein to be engaged as a new daily wagers and at the same time denied the backwages and continuity of service. The learned Single Judge, by the impugned order, accepted the claim in part and directed the State to consider 22.07.2000 (must be 22.03.2000) as the date from which all the benefits should be given in favour of the workmen. In our view, the workmen would not be entitled to the wages for the period during which they did not work.

Procedural History

Workmen terminated -> Labour Court award dated 22.03.2000 directing reinstatement as new daily wagers without backwages or continuity -> State filed SCA No.4569 of 2021 which was dismissed -> Workmen reinstated on 17.01.2007 -> Workmen filed writ petition seeking benefits from 22.07.2000 -> Single Judge partly allowed petition directing payment of wages for period 22.07.2000 to 15.01.2007 -> State filed Letters Patent Appeal -> Division Bench allowed appeal and set aside Single Judge's order.

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