Bombay High Court Allows Appeal in Industrial Dispute Case — Reinstatement Ordered with Continuity of Service but Without Back Wages. Daily Wage Worker's Termination Held Illegal for Non-Compliance with Section 25F of Industrial Disputes Act, 1947.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
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Case Note & Summary

The appellant, Chandrakant Prabhakar Jadhav, was a daily wage worker appointed by the State of Maharashtra (Public Works Division) on 1 July 1984. He claimed to have worked continuously until 20 June 1987 (or 31 December 1987) and was terminated with effect from 1 January 1988 without following the procedure under Section 25F of the Industrial Disputes Act, 1947. He approached the Deputy Commissioner of Labour on 30 October 1992, leading to a reference to the Labour Court, Ahmednagar (Reference IDA No. 128 of 1992). The Labour Court held that the appellant had worked for 240 days in a calendar year and that his termination was illegal, ordering reinstatement without back wages but with continuity of service. The respondent (State) challenged this decision in Writ Petition No. 2579 of 2000 before a Single Judge of the Bombay High Court, who set aside the Labour Court's order, holding that the appellant had not proved 240 days of work. The appellant filed the present Letters Patent Appeal. The Division Bench (T.V. Nalawade and Sunil K. Kotwal, JJ.) allowed the appeal, reinstating the Labour Court's order. The court held that the Labour Court's finding of 240 days was based on evidence (muster rolls and oral testimony) and was not perverse; the Single Judge erred in re-appreciating evidence. The termination without compliance with Section 25F was illegal. The court upheld reinstatement without back wages, considering the long period since termination and the workman's lack of employment.

Headnote

A) Industrial Disputes - Retrenchment - Section 25F of Industrial Disputes Act, 1947 - Compliance with Pre-conditions - The appellant, a daily wage worker, claimed he worked continuously from 1-7-1984 to 31-12-1987 and was terminated without following Section 25F. The Labour Court found he worked for 240 days in a calendar year and ordered reinstatement without back wages. The Single Judge set aside the order. The Division Bench held that the Labour Court's finding of 240 days was based on evidence and not perverse, and the termination without compliance with Section 25F was illegal. The appeal was allowed, reinstating the Labour Court's order. (Paras 1-6)

B) Industrial Disputes - Burden of Proof - Section 25F of Industrial Disputes Act, 1947 - The burden is on the workman to prove that he worked for 240 days in a calendar year. The appellant produced muster rolls and oral evidence, which the Labour Court accepted. The Division Bench held that the Single Judge erred in re-appreciating evidence and substituting his own finding. (Paras 4-5)

C) Industrial Disputes - Reinstatement - Section 11A of Industrial Disputes Act, 1947 - The Labour Court has discretion to grant reinstatement with or without back wages. The Division Bench upheld the Labour Court's order of reinstatement without back wages, noting the long gap since termination and the workman's lack of employment. (Para 6)

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Issue of Consideration

Whether the learned Single Judge erred in setting aside the Labour Court's order of reinstatement on the ground that the appellant had not worked for 240 days in a calendar year, and whether the appellant was entitled to reinstatement with continuity of service.

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Final Decision

The Letters Patent Appeal is allowed. The judgment and order of the learned Single Judge in Writ Petition No. 2579 of 2000 is set aside. The order of the Labour Court, Ahmednagar in Reference IDA No. 128 of 1992 is restored. The appellant is entitled to reinstatement with continuity of service but without back wages.

Law Points

  • Section 25F of Industrial Disputes Act
  • 1947 requires compliance before retrenchment of workman who has worked for 240 days in a calendar year
  • Burden of proof on workman to show continuous service of 240 days
  • Reinstatement without back wages is appropriate when workman has not worked for long period
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Case Details

2018 LawText (BOM) (01) 4

Letters Patent Appeal No. 132 of 2007 in Writ Petition No. 2579 of 2000

2018-01-24

T.V. Nalawade, Sunil K. Kotwal

Shri. Pradeep Shahane (for appellant), Shri. Y.G. Gujarati (Assistant Government Pleader for respondent)

Chandrakant s/o Prabhakar Jadhav

The State of Maharashtra through the Executive Engineer, Public Works Division, Aurangabad Road, Ahmednagar

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Nature of Litigation

Letters Patent Appeal against judgment of Single Judge in writ petition challenging Labour Court's order of reinstatement.

Remedy Sought

Appellant sought restoration of Labour Court's order of reinstatement with continuity of service.

Filing Reason

Appellant's termination from daily wage employment without compliance with Section 25F of Industrial Disputes Act, 1947.

Previous Decisions

Labour Court (Ahmednagar) in Reference IDA No. 128 of 1992 ordered reinstatement without back wages; Single Judge of Bombay High Court in Writ Petition No. 2579 of 2000 set aside that order.

Issues

Whether the appellant worked for 240 days in a calendar year, entitling him to protection under Section 25F of the Industrial Disputes Act, 1947. Whether the Labour Court's finding of 240 days was perverse and liable to be set aside by the Single Judge. Whether the appellant is entitled to reinstatement with continuity of service.

Submissions/Arguments

Appellant argued that he worked continuously from 1-7-1984 to 31-12-1987 and was terminated without following Section 25F; Labour Court's finding of 240 days was based on evidence. Respondent argued that appellant voluntarily abandoned work and did not prove 240 days of continuous service.

Ratio Decidendi

A workman who has worked for 240 days in a calendar year is entitled to protection under Section 25F of the Industrial Disputes Act, 1947, and termination without compliance with that section is illegal. The Labour Court's finding on the number of days worked, if based on evidence and not perverse, should not be interfered with in writ jurisdiction. Reinstatement without back wages is appropriate when the workman has not worked for a long period.

Judgment Excerpts

The Labour Court had held that the appellant had worked in a calendar year for 240 days with the respondent and he was illegally terminated, retrenched by the respondent. The learned Judge of the Labour Court had made order of reinstatement but without back wages and continuation of the service was given. This decision is set aside by the learned Single Judge of this Court. The appeal is allowed. The judgment and order of the learned Single Judge in Writ Petition No.2579/2000 is set aside. The order of the Labour Court, Ahmednagar in Reference (IDA) No.128 of 1992 is restored.

Procedural History

Appellant filed complaint before Deputy Commissioner of Labour, Nashik on 30-10-1992. Reference (IDA) No. 128 of 1992 was made to Labour Court, Ahmednagar, which ordered reinstatement without back wages on an unspecified date. Respondent filed Writ Petition No. 2579 of 2000 before Bombay High Court, which was allowed by Single Judge setting aside Labour Court's order. Appellant filed Letters Patent Appeal No. 132 of 2007, which was allowed by Division Bench on 24-01-2018.

Acts & Sections

  • Industrial Disputes Act, 1947: Section 10(1), Section 12(5), Section 25F, Section 11A
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High Court Bombay High Court Allows Appeal in Industrial Dispute Case — Reinstatement Ordered with Continuity of Service but Without Back Wages. Daily Wage Worker's Termination Held Illegal for Non-Compliance with Section 25F of Industrial Disputes Act, 1947.
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