Madhav Institute Of Technology And Science vs Bakelal

Headnote AI-drafted · Reviewed and approved

The petitioner-employer challenged an award of Labour Court No. 1, Gwalior, which held the termination of the respondent daily-wage workman to be illegal and directed reinstatement with 20% back-wages. The High Court upheld the finding of illegal termination on the ground that the employer, being in possession of all relevant documents, failed to produce evidence to rebut the respondent's claim of having worked for more than 240 days in a calendar year, warranting an adverse inference against the employer.

On the question of relief, the Court applied the settled principle laid down by the Supreme Court in Bharat Sanchar Nigam Limited v. Bhurumal (2014) 7 SCC 177, holding that reinstatement with back-wages is not an automatic consequence of illegal termination in cases involving daily-wage workers where the termination is found illegal on account of procedural violation of Section 25-F of the Industrial Disputes Act, 1947. The Court observed that in such cases monetary compensation in lieu of reinstatement better meets the ends of justice.

Following the consistent trend of the Supreme Court in cases involving daily-wage workers who had worked for limited periods and where termination had taken place many years prior, the High Court modified the Labour Court's award to substitute reinstatement with appropriate monetary compensation, partly allowing the writ petition.

Catchwords: daily-wage workman · illegal termination · reinstatement · back-wages · monetary compensation · 240 days · adverse inference · best evidence rule · Section 25-F · Industrial Disputes Act · Article 227 · judicial review · Labour Court award