Case Note & Summary
The dispute arose between the workmen represented by the Executive Staff Union of the Food Corporation of India (FCI) and the management regarding the retrenchment of 21 casual workers. The Ministry of Labour referred the industrial dispute to the Central Government Industrial Tribunal, which found the retrenchment unjustified and directed reinstatement and regularization of the workers' services. The management challenged this Award in the Jharkhand High Court, which initially upheld the reinstatement but later modified the order to quash the regularization aspect. The Supreme Court was approached by both parties, with the workmen seeking regularization and the management contesting the reinstatement and back wages. The Supreme Court noted that the management had complied with the Award for 18 years, absorbing the workers into regular service, and emphasized the principle of approbate and reprobate, which prevents a party from accepting benefits while simultaneously challenging the basis of those benefits. The Court restored the Tribunal's Award, reinstating the workers and their back wages, and dismissed the management's appeal. The decision underscored the importance of fair play and the consequences of the management's voluntary actions over the years.
Headnote
A) Industrial Disputes - Reinstatement and Regularization - Legality of Award - Industrial Disputes Act, 1947, Sections 10, 25F - The Tribunal found the retrenchment of workmen void due to non-compliance with mandatory provisions, directing reinstatement and regularization. The Division Bench modified the order, quashing the regularization aspect, but the Supreme Court restored the Award, emphasizing the management's voluntary compliance over 18 years. Held that the management could not challenge the Award after benefiting from it (Paras 17-17).
Issue of Consideration
Whether the workmen were entitled to regularization of services and the legality of the Award directing such relief.
Final Decision
The Supreme Court allowed the appeal filed by the Executive Staff Union of FCI, restoring the Award dated 18.03.1997 and the order dated 01.11.2018, thereby upholding the reinstatement and payment of 75% back wages to the workmen. The management's appeal was dismissed.
Law Points
- Industrial Disputes Act
- 1947
- Section 10
- Section 25F
- compliance with awards
- regularization of services
- doctrine of approbate and reprobate
