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[Cites 13, Cited by 0]

Gujarat High Court

Deputy Executive Engineer vs Devuben Mangabhai & 3 on 7 July, 2017

Author: K.M.Thaker

Bench: K.M.Thaker

                  C/SCA/27409/2007                                          JUDGMENT




                    IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                       SPECIAL CIVIL APPLICATION NO. 27409 of 2007



         FOR APPROVAL AND SIGNATURE:



         HONOURABLE MR.JUSTICE K.M.THAKER                                            Sd/-


         ==========================================================

         1     Whether Reporters of Local Papers may be allowed                       YES
               to see the judgment ?

         2     To be referred to the Reporter or not ?                                 NO

         3     Whether their Lordships wish to see the fair copy of                    NO
               the judgment ?

         4     Whether this case involves a substantial question of                    NO
               law as to the interpretation of the Constitution of
               India or any order made thereunder ?

         ==========================================================
                     DEPUTY EXECUTIVE ENGINEER....Petitioner(s)
                                        Versus
                      DEVUBEN MANGABHAI & 3....Respondent(s)
         ==========================================================
         Appearance:
         MS SEJAL K MANDAVIA, ADVOCATE for the Petitioner(s) No. 1
         MR MANOJ SHRIMALI, ADVOCATE for the Respondent(s) No. 1 - 2 , 4
         RULE SERVED for the Respondent(s) No. 3
         ==========================================================

             CORAM: HONOURABLE MR.JUSTICE K.M.THAKER

                                     Date : 07/07/2017


                                     ORAL JUDGMENT
1

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1. Ms.Mandavia,   learned   advocate   for   the  petitioner and Mr.Shrimali, learned advocate for  the respondents.

2. In   this   petition,   the   petitioner   has  challenged   award   dated   8.5.2007   passed   by   the  learned   Labour   Court   at   Surendranagar   in  Reference   (LCS)   No.119   of   1994   whereby   the  learned Labour Court directed present petitioner  to reinstate the respondent on his original post  without   any   other   benefits.     Aggrieved   by   the  said award and direction the petitioner has taken  out present petition.

3. At   the   outset,   it   is   necessary   to  mention   that   the   dispute   which   was   referred   to  learned   Labour   Court   for   adjudication   was   in  respect of four workmen.  

3.1 However, for the reasons recorded in the  award, the reference was not prosecuted and that,  therefore,   the   learned   Labour   Court   disposed   of  in   respect   of   one   out   of   four   workmen   and  2 HC-NIC Page 2 of 23 Created On Sun Jul 23 18:49:45 IST 2017 C/SCA/27409/2007 JUDGMENT therefore, the award which is impugned in present  petition   is   passed   only   in   respect   of   three  workmen. 

3.2 Consequently,   the   petition   which   is  filed   against   four   workmen,   is   required   to   be  restricted   to   three   workmen   viz.   respondents  No.1, 2 and 4. The dispute or claim or demand by  respondent   No.3,   i.e.   Jivaben   Vaghela   does   not  survive in view of the fact that by virtue of the  award, any relief in respect of the said workmen  is not granted.

4. So   fact   as   factual   background   is  concerned,   it   has   emerged   that   four   workmen  raised   industrial   dispute   with   the   allegation  that   the   employer   terminated   their   services  without   following   procedure   prescribed   by   law.  With the said allegation, the claimants demanded  that   they   should   be   reinstated   in   service   with  all benefits.  



         4.1         Appropriate   government   referred   the 


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                C/SCA/27409/2007                                       JUDGMENT



dispute   for   adjudication   to   the   learned   Labour  Court   at   Surendranagar.   The   reference   was  registered as Reference (LCS) No.119 of 1994.  4.2 During   the   proceedings   before   the  learned   Labour   Court,   the   claimants   filed  statement   of   claim   and   contended   that   claimant  No.1 had worked with the opponent employer for 6  years, claimant No.2 had worked with the opponent  employer   for   6   years,   claimant   No.3   had   worked  with   the   opponent   employer   for   6   years   and  claimant   No.4   had   worked   with   the   opponent  employer   for   15   years   (who   abandoned   the  reference case), before their services came to be  illegally terminated on 1.1.1993.   4.3 The   claimant   alleged   that   before  terminating their services, the employer did not  pay   retrenchment   compensation   or   notice   pay   or  did  not grant  opportunity  of hearing.  With  such  allegation,   the   claimants   demanded   that   they  should be reinstated in service.  





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                 C/SCA/27409/2007                                       JUDGMENT



         4.4          The   opponent   employer,   i.e.   office   of 

the   Deputy   Executive   Engineer.   The   opponent  employer denied that the claimants had worked for  such   period   as   alleged   by   workmen.   It   was   also  claimed that the claimant No.1 had worked for 207  days   in   1980,   167   days   in   1981   and   51   days   in  1992   and   had   voluntarily   stopped   reporting   for  work.    With  reference  to other  three  claimants,  the   opponent   employer   contended   that   the   said  claimants   had   never   worked   with   the   office   of  Executive   Engineer   at   Surendranagar   and   their  allegations   that   they   were   employees   of   the  opponent   employer,   are   incorrect.   The   opponent  employer   contended   that   since   the   said   other  three claimants were never employed, there was no  question   of   terminating   their   services   and/or  following   any   procedure   before   terminating   the  service.   In   respect   of   claimant   No.1,   opponent  No.1   employer   contended   that   since   the   claimant  had   never   worked   for   240   days   and   in   any   case  since he had not worked for 240 days in preceding  12 months, there was no illegality or breach of  5 HC-NIC Page 5 of 23 Created On Sun Jul 23 18:49:45 IST 2017 C/SCA/27409/2007 JUDGMENT statutory provisions, by the respondent employer,  more   particularly   because   it   was   the   claimant  No.1   who   herself   had   voluntarily   stopped  reporting for work. 

4.5 After   conclusion   of   the   pleadings,   the  learned   Labour   Court   recorded   the   evidence   and  thereafter   the   learned   Labour   Court   heard   rival  submissions from contesting parties.  4.6 Upon   conclusion   of   the   hearing   the  learned   Labour   Court   passed   impugned   award   with  above   mentioned   directions   in   respect   of   three  workmen. 

5. While assailing the awamrd passed by the  learned   Labour   Court,   Ms.Mandavia,   learned  advocate   for   the   petitioner   reiterated   the  details   mentioned   in   the   written   statement   viz.  claimants   No.2,   3   and   4   never   employed   by   the  office of the Deputy Executive Engineer and that  claimant No.1 had not worked for 240 days in any  year   and   the   claim   by   the   claimants   was  6 HC-NIC Page 6 of 23 Created On Sun Jul 23 18:49:45 IST 2017 C/SCA/27409/2007 JUDGMENT unjustified.   She   also   submitted   that   the  claimants   had   raised   industrial   dispute   after  gross   delay   and   that,   therefore,   the   reference  should   not   have   been   entertained.   She   also  submitted that the claimants failed to place any  evidence on record that they had ever worked with  the   petitioner   employer   and/or   they   had   worked  for  240 days  or more  in any  year,  much  less in  preceding   12   months   before   the   date   of   alleged  termination   and   that,   therefore,   there   is   no  basis or justification for impugned direction and  the impugned award deserves to be set aside. 

6. Learned   advocate   for   the   respondents  submitted   that   the   claimants   had   submitted   an  application   seeking   production   of   documents,  however,   the   petitioner   never   placed   on   record  relevant documents, i.e. attendance register for  the period from January 1987 to December 1992 and  wage register for the period from January 1987 to  December   1996.   However,   the   petitioner   never  placed   the   said   document   on   record   and   that,  7 HC-NIC Page 7 of 23 Created On Sun Jul 23 18:49:45 IST 2017 C/SCA/27409/2007 JUDGMENT therefore,   the   conclusion   and   decision   by   the  learned   Labour   Court   should   not   be   faulted.   He  also   submitted   that   the   petitioner   filed   its  written   statement,   however,   the   petitioner  employer did not examine any witness or did not  place   documentary   evidence   on   record.   He  submitted   that   the   said   fact   is   recorded   in  paragraph No.8 of the award. Learned advocate for  the   claimants   -   respondents   submitted   that   the  claimants had demanded that the seniority list of  the   employees   should   be   placed   on   record,  however,   the   opponent   employer   also   failed   to  place on record seniority list. He submitted that  in view of the fact that the petitioner failed to  place any evidence on record, the learned Labour  Court   decided   the   reference   and   reached   to   the  conclusion that the employer committed breach of  sections   25F,   25G   and   that   so   far   as   the   said  findings   are   concerned,   the   award   is   just   and  proper and it does not suffer from any infirmity.  He   submitted   that   the   petition   may   not   be  entertained.


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7. I   have   considered   rival   submissions   by  contesting   parties.   I   have   also   considered  impugned   award   and   other   material   on   record,  including the affidavit filed by respondent No.1. 

8. At the outset, it is relevant to mention  that   even   if   the   case   of   the   respondents   with  regard   to   the   allegations   that   the   employer  committed  breach   of Section  25F  are accepted  in  light   of   the   petitioner's   contention   that   the  claimants did not establish that they had worked  for 240 days in preceding 12 months, the findings  by   the   learned   Labour   Court   with   regard   to   the  breach   of   Section   25G   would   still   stare   in   the  face of the respondents.

9. It   is   true   that   before   the   learned  advocate   for   the   petitioner­employer   opposed  reference   cases,   on   the   premises,   the   claimants  nos.2, 3 and 4 had never worked with the office  of   the   Deputy   Executive   Engineer.     It   is   also  true   that   (to   justify   and   support   present  9 HC-NIC Page 9 of 23 Created On Sun Jul 23 18:49:45 IST 2017 C/SCA/27409/2007 JUDGMENT application),   in   this   petition   also   the  petitioner   employer   has   raised   th   same  contention.  

10. However,   the   fact   remains   that   despite  the   applications   submitted   by   the   claimants   for  production   of   documents   namely   attendance  register   and   wage   register,   the   petitioner­ employer   did   not   place   the   said   documents   on  record.  

11. The   petitioner­employer   also   did   not  deny   that   attendance   card   were   never   issued   to  the employees.  

12. In   this   view   of   the   matter,   the  employees   were   not   able   to   and   could   not   place  such documents on record.  

13. It is also fact that though the learned  lower   court   passed   direction   to   either   place  documents   on   record   or   to   file   affidavit,   the  petitioner­employer failed on both count.   It is  also   fact   that   the   petitioner­employer   did   not  10 HC-NIC Page 10 of 23 Created On Sun Jul 23 18:49:45 IST 2017 C/SCA/27409/2007 JUDGMENT care to lead even oral evidence and to say about  documentary evidence.  

14. Under   the   circumstances,   the   pleadings  (written   statement)   by   the   petitioner­employer  remained   unsupported   and   mere   reply   without   any  supporting   evidence.   Therefore,   the   learned  advocate   did   not   take   into   account   such  unsupported   and   unsubstantiated   defense.   Having  regard to the fact that the claimants, there was  no evidence that the claimants had worked for 240  days   in   preceding   12   months   and   in   light   of  undisputed   fact   that   the   appointment   of   the  claimants were irregular and they were engaged on  daily   wage   basis,   if   the   petitioner's   defence  with   regard   to   Section   25   is   assumed   to   be  correct and even if it is assumed that breach of  Section   25­F   is   not   established   then   also   the  fact   remains   that   before   the   service   of   the  claimants   came   to   be   discontinued,   the  petitioner­employer   had   not   prepared   and  displayed   seniority   list   in   accordance   with   the  11 HC-NIC Page 11 of 23 Created On Sun Jul 23 18:49:45 IST 2017 C/SCA/27409/2007 JUDGMENT Rule   81   and   there   was   no   evidence   on   record   to  establish   that   the   petitioner­employer   had  followed principle of seniority i.e. principle of  'last­come­first­go' and the procedure prescribed  under   Section   25­G,   the   conclusion   by   learned  lower court with regard to breach of Section 25­G  cannot be faulted.  

15. In   light   of   this   fact   and   above   said  findings,   the   learned   Labour   Court   directed   the  petitioner to reinstate the claimant without back  wages and any other benefit.  

16. Now, in this context, it is necessary to  take   into   account   some   relevant   and   important  fact.   According   to   the   petitioner,   the   claimant  No.1   had   stopped   reporting   duty   from   1982   and  other   claimants   were   never   employed   by   the  petitioner.

17. Besides   the   said   fact,   it   is   pertinent  that the claimants raised dispute as late as in  1994 i.e. after almost 12 years and they failed  12 HC-NIC Page 12 of 23 Created On Sun Jul 23 18:49:45 IST 2017 C/SCA/27409/2007 JUDGMENT to establish date of appointment as well as date  of termination.  

18. Even   if   the   unsubstantiated   allegations  claimants   by   the   respondent   i.e.   original  claimants   namely   that   they   had   worked   for   six  years before their service came to be terminated,  are assumed to be correct then also total tenure  of their service would be of six years, that too  upon   irregular   and   ad   hoc   appointment   on   daily  wage basis.  

19. The   said   fact   is   coupled   with   the   fact  that   more   than   30   years   have   passed   since   the  service   of   the   claimants   came   to   be   allegedly  terminated.

20. Further, even according to clarification  by   learned   advocate   for   the   respondents,   the  claimants are more than 50 years of age.  

21. Under   the   circumstances,   the   direction  to   reinstate   the   claimants,   after   such   long  period of 30 years is not justified.  


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                  C/SCA/27409/2007                                               JUDGMENT




         21.1          In this context, it would be appropriate 

at   this   stage   to   take   into   account   the  observations   by   Hon'ble   Apex   Court   in   the  decision   in   case   of  Hari   Nandan   Prasad   and   another   vs.   Employer   I/R   to   Management   of   Food   Corporation   of   India   and   another   [(2014)   7   SCC   190,   wherein   Hon'ble   Apex   Court   observed,  inter   alia, that: 

"19. The   following   passage   from   the   said   judgment  would  reflect   the   earlier   decisions   of   this   Court   on  the question of reinstatement: 
"29. The   learned   counsel   for   the   appellant  referred   to   two   judgments   wherein   this   Court  granted   compensation   instead   of   reinstatement.  In the case of BSNL vs. Man Singh (2012) 1 SCC  558,   this   Court   has   held   that   when   the  termination   is   set   aside   because   of   violation  of Section 25­F of the Industrial Disputes Act,  it   is   not   necessary   that   relief   of  reinstatement   be   also   given   as   a   matter   of  right.   In   the   case  of  Incharge  Officer  &  Anr.  vs.   Shankar   Shetty   (2010)   9   SCC   126,   it   was  held   that   those   cases   where   the   workman   had  worked   on   daily   wage   basis,   and   worked   merely  for a period of 240 days or 2­3 years and where  the termination had taken place many years ago,  the   recent   trend   was   to   grant   compensation   in  lieu of reinstatement. 
30. In this  judgment  of Shankar  Shetty,  this  trend   was   reiterated   by   referring   to   various  judgments,   as   is   clear   from   the   following  discussion. 
'2. Should   an   order   of   reinstatement  automatically   follow   in   a   case   where   the  engagement of a daily wager has been brought to  end   in   violation   of   Section   25­F   of   the  Industrial   Disputes   Act,   1947   (for   short   "the  ID  Act")?   The   course   of   the   decisions   of  this  Court   in   recent  years   has   been  uniform  on  the  14 HC-NIC Page 14 of 23 Created On Sun Jul 23 18:49:45 IST 2017 C/SCA/27409/2007 JUDGMENT above question. 
3. In   Jagbir   Singh   vs.   Haryana   State  Agriculture   Mktd.   Board   (2009)   15   SCC   327  delivering   the   judgment   of   this   Court,   one   of  us   (R.M.Lodha,J.)   noticed   some   of   the   recent  decisions   of   this   Court,   namely,   U.P.State  Brassware   Corpn.   Ltd.   Vs.   Uday   Narain   Pandey  (2006) 1 SCC 479, Uttaranchal Forest Department  Corpn. Vs. M.C.Joshi (2007) 9 SCC 353, State of  M.P.   vs.   Lalit   Kumar   Verma   (2007)   1   SCC   575,  M.P.Admn. vs. Tribhuban  (2007) 9 SCC 748, Sita  Ram   vs.   Moti   Lal   Nehru   Farmers   Training  Institute   (2008)   5   SCC   75,   Jaipur   Development  Authority   vs.   Ramsahai   (2006)   11   SCC   684,   GDA  vs.   Ashok   Kumar   (2008)   4   SCC   261   and   Mahboob  Deepak   vs.   Nagar   Panchayat,   Gajraula   (2008)   1  SCC   575   and   stated   as   follows:   (Jagbir   Singh  case, SCC pp.330 & 335 paras 7 & 14). 
"7. It is true that the earlier view of this  Court   articulated   in   many   decision   reflected  the   legal   position   that   if   the   termination   of  an employee was found to be illegal, the relief  of   reinstatement   with   full   back   wages   would  ordinarily   follow.   However,   in   recent   past,  there   has   been   a   shift   in   the   legal   position  and   in   a   long   line   of   cases,   this   Court   has  consistently  taken the view that relief by way  of   reinstatement   with   back   wages   is   not  automatic and may be wholly inappropriate  in a  given   fact   situation   even   though   the  termination  of an employee  is in contravention  of   the   prescribed   procedure.   Compensation  instead of reinstatement  has been held to meet  the ends of justice. 
*  * *
14. It would be, thus, seen that by a catena  of   decisions   in   recent   time,   this   Court   has  clearly laid down that an order of retrenchment  passed   in   violation   of   Section   25­F   although  may be set aside but an award of reinstatement  should  not,  however,   automatically   passed.  The  award of reinstatement  with full back wages in  a case where the workman has completed 240 days  of   work   in   a   year   preceding   the   date   of  termination, particularly, daily wagers has not  been   found   to   be   proper   by   this   Court   and  instead   compensation   has   been   awarded.   This  Court   has   distinguished   between   a   daily   wager  who   does   not   hold   a   post   and   a   permanent  employee." 

4. Jagbir   Singh   has   been   applied   very  recently  in Telegraph  Deptt.  Vs. Santosh  Kumar  Seal   (2010)   6   SCC   773,   wherein   this   Court  stated: (SCC p.777, para 11) 

11. In   view   of   the   aforesaid   legal   position  15 HC-NIC Page 15 of 23 Created On Sun Jul 23 18:49:45 IST 2017 C/SCA/27409/2007 JUDGMENT and  the   fact   that  the  workmen  were   engaged  as  daily   wagers   about   25   years   back   and   they  worked   hardly   for   2   or   3   years,   relief   of  reinstatement  and back wages to them cannot be  said   to   be   justified   and   instead   monetary  compensation   would   subserve   the   ends   of  justice.'" 

20. Taking note of the judgments referred to in the  aforesaid paragraphs and also few more cases in other  portion  of   the   said   judgment,  the   legal   position   was  summed up in the following manner: 
"33. It   is   clear   from   the   reading   of   the  aforesaid judgments that the ordinary principle  of grant of reinstatement with full back wages,  when the termination is found to be illegal is  not   applied   mechanically   in   all   cases.   While  that   may   be   a   position   where   services   of   a  regular/permanent   workman   are   terminated  illegally   and/or   malafide   and/or   by   way   of  victimization,   unfair   labour   practice   etc.  However,   when   it   comes   to   the   case   of  termination   of   a   daily   wage   worker   and   where  the   termination   is   found   illegal   because   of  procedural   defect,   namely   in   violation   of  Section   25­F   of   the   Industrial   Disputes   Act,  this Court is consistent in taking the view in  such cases reinstatement with back wages is not  automatic   and   instead   the   workman   should   be  given monetary compensation which will meet the  ends of justice. Rationale for shifting in this  direction is obvious. 
34. Reasons   for   denying   the   relief   of  reinstatement  in such cases are obvious.  It is  trite law that when the termination is found to  be   illegal   because   of   non­payment   of  retrenchment   compensation   and   notice   pay   as  mandatorily  required  under  Section   25­F of  the  Industrial   Disputes   Act,   even   after  reinstatement,   it   is   always   open   to   the  management   to   terminate   the   services   of   that  employee   by   paying   him   the   retrenchment  compensation.   Since  such  a workman  was  working  on   daily   wage   basis   and   even   after   he   is  reinstated,   he   has   no   right   to   seek  regularization (See: State of Karnataka vs. Uma  Devi (2006) 4 SCC 1). Thus when he cannot claim  regularization  and he has no right to continue  even as a daily wage worker, no useful purpose  is   going   to   be   served   in   reinstating   such   a  workman   and   he   can   be   given   monetary  compensation by the Court itself inasmuch as if  he  is  terminated  again   after  reinstatement,  he  would receive monetary compensation only in the  form   of   retrenchment   compensation   and   notice  pay. In such a situation, giving the relief of  reinstatement, that too after a long gap, would  16 HC-NIC Page 16 of 23 Created On Sun Jul 23 18:49:45 IST 2017 C/SCA/27409/2007 JUDGMENT not serve any purpose. 
35. We   would,   however,   like   to   add   a   caveat  here. There may be cases where termination of a  daily wage worker is found to be illegal on the  ground   it   was   resorted   to   as   unfair   labour  practice   or   in   violation   of   the   principle   of  last come first go viz. while retrenching  such  a   worker   daily   wage   juniors   to   him   were  retained.   There   may   also   be   a   situation   that  persons   junior   to   him   wee   regularized   under  some   policy   but   the   concerned   workman  terminated.   In   such   circumstances,   the  terminated   worker   should   not   be   denied  reinstatement   unless   there   are   some   other  weighty   reasons   for   adopting   the   course   of  grant of compensation instead of reinstatement.  In such cases, reinstatement should be the rule  and   only   in   exceptional   cases   for   the   reasons  stated  to be in writing,  such  a  relief  can  be  denied." 

21. We make it clear that reference to Uma Devi, in  the   aforesaid   discussion   is   in   a   situation  where   the  dispute referred pertained to termination alone. Going  by the principles carved out above, had it been a case  where   the   issue   is   limited   only   to   the   validity   of  termination,   appellant   No.1   would   not   be   entitled   to  reinstatement. This could be the position in respect of  appellant  No.2   as   well.   Though  the   factual  matrix   in  his   case   is   slightly  different,  that   by   itself   would  not have made much of a difference. However, the matter  does not end here. In the present case, the reference  of dispute to the CGIT was not limited to the validity  of termination. The terms of reference also contained  the   claim   made   by   the   appellants   for   their  regularization of service." 

21.2 At   this  stage,   profitable   reference  can  also be had to the observations by Hon'ble Apex  Court in the decision in case of  Bharat Sanchar   Nigam   Limited   vs.   Man   Singh   [2012)   1   SCC   558],  wherein Hon'ble Apex Court observed,  inter alia,  that: 

"4.   This   Court   in   a   catena   of   decisions   has   clearly  17 HC-NIC Page 17 of 23 Created On Sun Jul 23 18:49:45 IST 2017 C/SCA/27409/2007 JUDGMENT laid down that although an order of retrenchment passed  in violation of Section 25­F of the Industrial Disputes  Act   may   be   set   aside   but   an   award   of   reinstatement  should   not   be   passed.   This   Court   has   distinguished  between a daily wager who does not hold a post and a  permanent employee. 
5. In view of the aforementioned legal position and  the fact that the respondents ­ workmen were engaged as  'daily wagers' and they had merely worked for more than  240   days,   in   our   considered   view,   relief   of  reinstatement   cannot   be   said   to   be   justified   and  instead,  monetary compensation  would  meet  the ends of  justice." 

21.3 In   the   decision   in   case   of  Assistant   Engineer,   Rajasthan   Development   Corporation   and   another   vs.   Gitam   Singh   [(2013)   5   SCC   136],  Hon'ble Apex Court observed, inter alia, that: 

"21. In Santosh Kumar Seal7, while dealing with a case  of workmen who were  engaged as  daily wagers  about 25  years   back   and   had   hardly   worked   for   two   or   three  years,   this   Court   speaking   through   one   of   us   (R.M.  Lodha,   J.)   held   that   reinstatement   with   back   wages  could not be said to be justified and instead monetary  compensation would subserve the ends of justice. It was  held that compensation of Rs. 40,000/­ to each of the  workmen would meet the ends of justice. 
22. From the long line of cases indicated above, it  can be said without any fear of contradiction that this  Court has not held as an absolute proposition that in  cases of wrongful dismissal, the dismissed employee is  entitled   to   reinstatement   in   all   situations.   It   has  always been the view of this Court that there could be  circumstance(s) in a case which may make it inexpedient  to order reinstatement. Therefore, the normal rule that  dismissed   employee   is   entitled   to   reinstatement   in  cases   of   wrongful   dismissal   has   been   held   to   be   not  without  exception.  Insofar  as  wrongful  termination  of  daily­rated workers is concerned, this Court has laid  down that consequential relief would depend on host of  factors,   namely,   manner   and   method   of   appointment,  nature of employment and length of service. Where the  length of engagement as daily wager has not been long,  award   of   reinstatement   should   not   follow   and   rather  18 HC-NIC Page 18 of 23 Created On Sun Jul 23 18:49:45 IST 2017 C/SCA/27409/2007 JUDGMENT compensation   should   be   directed   to   be   paid.   A  distinction has been drawn between a daily wager and an  employee holding the regular post for the purposes of  consequential relief. 
26. In the appeal before this Court from the order of  the Division Bench, this Court held that the High Court  had neither found any jurisdictional infirmity in the  award of the Labour Court nor it came to the conclusion  that the award was vitiated by an error of law apparent  on the face of the record and notwithstanding these the  High Court set aside the direction given by the Labour  Court for reinstatement of the workman by assuming that  his   initial   appointment   was   contrary   to   law.   The  approach of the High Court was found to be erroneous by  this   Court.   This   Court,   accordingly,   set   aside   the  order of the High Court and restored the award of the  Labour  Court. In  Devinder Singh3  , the Court  had not  dealt with the question about the consequential relief  to be granted to the workman whose termination was held  to be illegal being in violation of Section 25­F. 
27. In our view, Harjinder Singh2 and Devinder Singh3  do not lay down the proposition that in all cases of  wrongful   termination,   reinstatement   must   follow.   This  Court   found   in   those   cases   that   judicial   discretion  exercised by the Labour Court was disturbed by the High  Court on wrong assumption that the initial employment  of   the   employee   was   illegal.   As   noted   above,   with  regard   to   the   wrongful   termination  of   a   daily   wager,  who had worked for a short period, this Court in long  line of cases has held that the award of reinstatement  cannot be said to be proper relief and rather award of  compensation in such cases would be in consonance with  the demand of justice. Before exercising its judicial  discretion, the Labour Court  has  to keep  in  view all  relevant   factors,   including   the   mode   and   manner   of  appointment,  nature  of  employment,  length  of  service,  the ground on which the termination has been set aside  and the delay in raising the industrial dispute before  grant of relief in an industrial dispute. 30. 
28. We   may   also   refer   to   a   recent   decision   of   this  Court in Bharat Sanchar Nigam Limited v. Man Singh[24].  That   was   a   case   where   the   workmen,   who   were   daily  wagers during the year 1984­85, were terminated without  following   Section   25­F.   The   industrial   dispute   was  raised after five years and although the Labour Court  had awarded reinstatement of the workmen which was not  interfered by the High Court, this Court set aside the  award   of   reinstatement   and   ordered   payment   of  compensation.   In   paragraphs   4   and   5   (pg.559)   of   the  Report this Court held as under: 
19
HC-NIC Page 19 of 23 Created On Sun Jul 23 18:49:45 IST 2017 C/SCA/27409/2007 JUDGMENT "4. This Court in a catena of decisions has  clearly laid down that although an order of  retrenchment passed in violation of Section  25­F of the Industrial Disputes Act may be  set   aside   but   an   award   of   reinstatement  should   not   be   passed.   This   Court   has  distinguished between a daily wager who does  not hold a post and a permanent employee. 
5.   In   view   of   the   aforementioned   legal  position   and   the   fact   that   the   respondent  workmen were engaged as "daily wagers" and  they   had   merely   worked   for   more   than   240  days,   in   our   considered   view,   relief   of  reinstatement cannot be said to be justified  and   instead,   monetary   compensation   would  meet the ends of justice." 

21.4 In   the   decision   in   case   of  Senior   Superintendent   Telegraph   (Traffic),   Bhopal   vs.  Santosh Kumar Seal and others [(2010) 6 SCC 773],  Hon'ble   Apex   Court,   after   referring   to   the  decisions in cases of U.P. State Brassware Corpn.   Ltd.   v.   Uday   Narain   Pandey,   Uttaranchal   Forest   Development Corpn. v. M.C. JoshiState of M.P.   v.   Lalit   Kumar   Verma,   M.P.   Admn.   v.   Tribhuban,   Sita   Ram   v.   Moti   Lal   Nehru   Farmers   Training   Institute,   Jaipur   Development   Authority   v.   Ramsahai, GDA v. Ashok Kumar and Mahboob Deepak   v.   Nagar   Panchayat,   Gajraula,   observed,  inter   alia, that: 

20

HC-NIC Page 20 of 23 Created On Sun Jul 23 18:49:45 IST 2017 C/SCA/27409/2007 JUDGMENT "In the last few years it has been consistently held by  this   Court   that   relief   by   way   of   reinstatement   with  back wages is not automatic even if termination of an  employee is found to be illegal or is in contravention  of   the   prescribed   procedure   and   that   monetary  compensation in lieu of reinstatement and back wages in  cases of such nature may be appropriate."
21.5 From   above   quoted   observations,   it   can  be summarized that the direction to reinstate the  workmen and/or direction with regard to backwages  should   not be passed   mechanically  in  all cases,  even in cases where the termination is found to  be   illegal   and/or   unjustified.   This   aspect   is  more  relevant  and applicable   in cases  where  the  concerned   person   (in   whose   termination   is   found  to be illegal) was engaged on daily wage basis. 

The final relief should be appropriately modified  and  moulded  after  taking   into account  the facts  involved   in   the   case   and   relevant   factors   and  circumstances. 

22. When   the   decision   impugned   in   present  case is examined in light of the above mentioned  aspects,  it emerges  that  final  direction   by the  learned lower court deserves to be modified.  





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                 C/SCA/27409/2007                                         JUDGMENT



23. Though   there   is   no   evidence   on   record  from   either   side   as   regards   total   length   of  service of the claimants, the Court would proceed  on   the   presumption   that   the   claimants'  allegations   with   regard   to   the   period   of   their  service   could   be   correct   (in   view   of   the   fact  that   the   opponents   and   the   petitioner­employer  did  not lead  any  evidence  whatsoever   in support  of   their   pleadings)   then   also   total   length   of  their   service   could   be   six   years,   that   too   on  irregular appointment and on daily wage basis.  

24. Under the circumstances, the Court is of  the view that the direction to pay Rs.25,000/­ to  each   of   the   three   claimants   as   lump­sum  compensation   in   lieu   of   reinstatement   would  balance the equity and therefore, following order  is passed: 

In light of foregoing discussion and for the  reasons   mentioned   above,   impugned   award   is  partly set aside and modified.  



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                    C/SCA/27409/2007                                        JUDGMENT




The   direction   to   reinstate   three   claimants  i.e.   Devuben,   Kaluben   and   Kaliben   is   partly  set aside and modified and said direction is  substituted with direction to pay Rs.25,000/­  each   to   the   claimants   in   lieu   of  reinstatement.  
With   the   aforesaid   direction,   present  petition is partly allowed. Rule is made absolute  to the aforesaid extent.  
   Sd/­ (K.M.THAKER, J.) Bharat 23 HC-NIC Page 23 of 23 Created On Sun Jul 23 18:49:45 IST 2017