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Civil · Reportable judgment

Divisional Controller Maharashtra State Road Transport Corporation vs Kalawati Pandurang Fulzele

Court
Supreme Court of India
Date
31 January 2022
Case No.
Civil Appeal No. 463 of 2022
Result
Partly allowed
Bench
M.R. Shah, B.V. Nagarathna
Citation
[2022] 1 S.C.R. 399 : 2022 INSC 125
Supreme Court Reports [2022] 1 S.C.R. 399 : 2022 INSC 125
Headnote

Industrial Disputes Act, 1947:ss. 25F and 25G – Retrenchment of workman – On facts, terminationof workman set aside by courts belowexcept Industrial Court and ordered reinstatement with back wages – Correctness of – Held: Appointment of the workman was on contractual basis at a fixed honorarium, she worked for approximately for four years and there were no allegations on any unfair labour practice – Only finding recorded by the labour court was termination in breach of ss. 25F and 25G – Thus, order of reinstatement and back wages not warranted and instead lumpsum compensation is awarded, modifying the order passed by the labour court – s. 2(oo)(bb) – Industrial Disputes Act (Bombay) Rules, 1957 – r. 81.

Partly allowing the appeal, the Court

Read the full headnote (1 more paragraph)

HELD: 1.1 It is true that as such all the three courts below (except the Industrial Court) held the termination of the respondent-workman in breach of Sections 25-F and 25-G of the Industrial Disputes Act and, therefore, the Labour Court ordered reinstatement with back wages. However, it is required to be noted that even as per the appointment order produced by the respondent herself, her appointment was on contractual basis at a fixed salary/honorarium of Rs. 500/- per month. Though, it is a case on behalf of the appellant that her appointment was a fixed term appointment, however, considering the appointment order, the appointment was till further orders. It also cannot be disputed that she worked approximately for four years as a sweeper. As such there were no specific averments/allegations in the complaint on any unfair labour practice. Even there was no specific finding recorded by the Labour Court that there was any unfair labour practice adopted by the MSRTC. The only finding recorded by the Labour Court was that the termination was in breach of Sections 25-F and 25-G of the Industrial Disputes Act. In the peculiar facts and circumstances of the case, when the appointment was purely on contractual basis and on a fixed salary/honorarium of Rs.500/- per month, the order of reinstatement with back wages was not warranted and instead if the lumpsum compensation of Rs. Three lakhs only is awarded in lieu of reinstatement and back wages, it would meet the ends of justice.In view thereof, the impugned judgment and order passed by the Division Bench of the High Court and the judgment and award passed by the Labour Court ordering reinstatement with back wages is hereby modified and the appellant is directed to pay a lumpsum compensation of Rs.3,00,000/- (Rupees Three Lakhs only) to the respondent, within the stipulated period. [Paras 6-8][403-D-G; 404-A-D]

As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.

Full Judgment Text

The Judgment of the Court was delivered by M. R. SHAH, J. 1. Feeling aggrieved and dissatisfied with the impugned judgment and order dated 30.01.2020 passed by the High Court of Judicature at Bombay at Nagpur in LPA No. 37 of 2008 by which the Division Bench of the High Court has dismissed the said appeal and has confirmed the judgment and order passed by the learned Single Judge quashing and setting aside the judgment and order passed by the Industrial Tribunal and restoring the award passed by the Labour Court directing the appellant to reinstate the respondent with back wages, the employe
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