High Court of Bombay at Goa Hears Writ Petition Challenging Industrial Tribunal's Award of Reinstatement and Back Wages — Dispute Centered on Whether Employee Abandoned Service or Was Terminated, and Whether Offer to Rejoin After Abandonment Precludes Back Wages. The Court Considered the Effect of an Employer's Offer of Reinstatement Made During Proceedings on the Employee's Entitlement to Reinstatement and Back Wages Under the Industrial Disputes Act, 1947.

High Court: Bombay High Court Bench: GOA
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Case Note & Summary

The matter originated from an industrial dispute between The Goa Postal Employees Co-operative Society Ltd. (petitioner) and its employee, Ms. Nirupa C. Udaikar (respondent no.1). The employee, engaged as an Accounts Assistant since 01.07.2000, claimed that her services were orally terminated with effect from 12.05.2009. The employer contended that she had voluntarily abandoned her job and repeatedly refused offers to return to duty. The dispute escalated through conciliation proceedings, which failed, leading to a reference under Section 10 of the Industrial Disputes Act, 1947 to the Industrial Tribunal & Labour Court-1, Goa. The Tribunal, by Award dated 04.08.2015, held the termination illegal and directed reinstatement with full back wages, continuity of service, and all consequential benefits. Aggrieved, the employer filed this writ petition challenging the Award. Before the High Court, the petitioner argued that the employee had abandoned service and refused multiple offers to rejoin, thus disentitling her to reinstatement or back wages, relying on decisions in Sonal Garments, VFC Industries, and Madhuri Chandulal Lakhani. The employee resisted, contending that no notice was given to resume duty and that the termination was illegal, placing reliance on Gaurishanker Vishwakarma, Havaldar Tejbali Singh, Kendriya Vidyalaya Sangathan, and Deepali Gundu Surwase. The court considered these submissions and examined the principles laid down in the cited precedents regarding the effect of an employer's offer of reinstatement on the employee's rights. The judgment, however, is truncated and does not contain the final operative order or the court’s conclusive analysis.

Headnote

A) Labour Law - Termination of Employment - Abandonment vs Oral Termination - Industrial Disputes Act, 1947, Section 10 - The employee alleged oral termination, the employer alleged abandonment. The court considered the burden of proof and the effect of the employee's refusal of offers to rejoin. The Industrial Tribunal held the termination illegal; the writ petition challenged that finding (Paras 2-5).

B) Labour Law - Back Wages - Effect of Offer of Reinstatement - Industrial Disputes Act, 1947 - Precedents established that if an employer offers reinstatement at any stage of the dispute and the workman refuses, the workman forfeits reinstatement and back wages from that date. The court examined whether the petitioner's offer was valid and the refusal disentitled the respondent to back wages (Paras 8-12).

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Issue of Consideration

Whether the respondent no.1 is entitled to back wages and reinstatement when she had allegedly abandoned services and refused the employer's offer to rejoin duty.

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Law Points

  • Employee who refuses employer's offer of reinstatement during proceedings forfeits right to reinstatement and back wages from date of offer
  • burden on employee to prove termination if employer alleges abandonment
  • offer of reinstatement need not be unconditional
  • back wages not automatic on reinstatement
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Case Details

2017 LawText (BOM) (10) 118

Writ Petition No. 63 of 2016

2017-10-13

Nutan D. Sardessai

2017:BHC-GOA:2939

S. P. Munj for Petitioner, J. J. Mulgaonkar for Respondent No.1

The Goa Postal Employees Co-operative Society Ltd.

Ms. Nirupa C. Udaikar & Ors.

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Nature of Litigation

Writ petition under Article 226/227 challenging the Award of the Industrial Tribunal and Labour Court which held the termination of the employee illegal and ordered reinstatement with full back wages.

Remedy Sought

The petitioner-society sought to quash the award and deny reinstatement and back wages on the ground that the employee had abandoned service and refused offers to rejoin.

Filing Reason

The Industrial Tribunal passed an award in favour of the respondent employee granting reinstatement and full back wages, which the petitioner considered erroneous.

Previous Decisions

The Industrial Tribunal & Labour Court-1, Goa passed Award dated 04.08.2015 holding the termination illegal and ordering reinstatement with full back wages, continuity, and consequential benefits.

Issues

Whether the respondent no.1 abandoned her services or was terminated by the petitioner Whether the respondent no.1 is entitled to full back wages despite the petitioner's offer to take her back and her refusal to resume duty

Submissions/Arguments

Petitioner argued that respondent abandoned services, did not avail offer to rejoin, and hence not entitled to reinstatement or back wages, relying on Sonal Garments, VFC Industries, Madhuri Chandulal Lakhani. Respondent argued that no notice was given to resume duty, and that termination was illegal, relying on Gaurishanker Vishwakarma, Havaldar Tejbali Singh, Kendriya Vidyalaya Sangathan, Deepali Gundu Surwase.

Judgment Excerpts

Whenever the employer offers to reinstate the workman at any stage of the dispute or proceeding and if the workman does not accept the offer even without prejudice to his rights and contentions he will not be entitled to continue his claim for reinstatement in the proceedings and he will also be not entitled to claim any back wages from the date of such offer... The Labour Court had adopted an approach which was not correct. Once an off

Procedural History

Respondent no.1 was employed as Accounts Assistant from 01.07.2000. She allegedly absented from 12.05.2009 and lodged police complaint on 14.07.2009. On 20.05.2009 she complained to Labour Commissioner of termination. Petitioner responded stating they needed staff and asked her to rejoin. Conciliation failed. Reference made under Section 10 of Industrial Disputes Act, 1947 to Industrial Tribunal. Tribunal passed Award on 04.08.2015 in favour of respondent no.1. Petitioner filed Writ Petition No. 63 of 2016 challenging the award.

Acts & Sections

  • Industrial Disputes Act, 1947: Section 10
  • Maharashtra Co-operative Societies Act, 1860:
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