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RANBIR SINGH

v.

EXECUTIVE ENG. P.W.D

(Civil Appeal No. 4483 of 2010)

SEPTEMBER 02, 2021

[K. M. JOSEPH AND

PAMIDIGHANTAM SRI NARASIMHA, JJ.]

Labour Laws – Public authority – Termination of daily-wager

– Termination found illegal due to procedural defect, namely,

violation of mandatory provisions of s.25F – Appellant-daily wager

was reinstated after the award of the Labour Court – High Court

set aside the award – On appeal, held: Appellant could not adduce

convincing evidence to establish retention of junior workers, as

alleged by him – No finding of unfair trade practice, as such – In

such circumstances, reinstatement cannot be automatic –

Transgression of s.25F being established, suitable compensation

to appellant would be the appropriate remedy – Industrial Disputes

Act, 1947 – s.25F.

Partly allowing the appeal, the Court

HELD:1.1. This is a case where it is found that, though

the appellant had worked for 240 days, appellant’s service was

terminated, violating the mandatory provisions of Section 25F

of the Industrial Disputes Act, 1947. The authority involved in

this case, apparently, is a public authority. At the same time, it

is common case that the appellant was a daily wager and the

appellant was not a permanent employee. It is relevant to note

that, in the award answering Issue No.1, which was, whether the

termination of the appellant’s service was justified and in order,

and if not, what was the amount of back wages he was entitled

to, it was found, inter alia, that the appellant could not adduce

convincing evidence to establish retention of junior workers.

There is no finding of unfair trade practice, as such. In such

circumstances, the principle, which is enunciated by this Court,

in the decision, which is referred to in Raj Kumar case, would

be more appropriate to follow. In other words, it is found that

reinstatement cannot be automatic, and the transgression of

[2021] 6 S.C.R. 102

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Section 25F being established, suitable compensation would be

the appropriate remedy. [Para 6][107-C-E]

1.2. In such circumstance, noticing that, though the

appellant was reinstated after the award of the Labour Court in

2006, the appellant has not been working since 2009 following

the impugned order of the High Court, and also taking note of

the fact that the appellant was, in all likelihood, employed

otherwise, also the interest of justice would be best subserved

with modifying the impugned order and directing that in place

of Rs. 25000/- (Rupees Twenty Five Thousand), as lumpsum

compensation, appellant be paid Rs.3.25 lakhs (Rupees Three

Lakhs and Twenty Five Thousand), as compensation, taking into

consideration also the fact that the appellant had already been

paid Rs. 25000/- (Rupees Twenty Five Thousand) as

compensation. [Para 7][107-F-H]

State of Uttarakhand and another v. Raj Kumar, (2019)

14 SCC 353 : [2019] 1 SCR 94 – relied on.

Ajaypal Singh v. Haryana Warehousing Corporation,

(2015) 6 SCC 321 ;Secretary, State of Karnataka and

others v. Umadevi and others, (2006) 4 SCC 1 :

[2006] 3 SCR 953 ; and Durgapur Casual Workers

Union andothers v. Food Corporation of India and

others, (2015) 5 SCC 786 : [2014] 12 SCR 377 –

referred to.

Case Law Reference

(2015) 6 SCC 321 referred to Para 3

[2006] 3 SCR 953 referred to Para 3

[2019] 1 SCR 94 relied on Para 3

[2014] 12 SCR 377 referred to Para 4

CIVIL APPELLATE JURISDICTION : Civil Appeal No.4483

of 2010.

From the Judgment and Order dated 25.09.2008 of the High

Court of Punjab and Haryana at Chandigarh in Civil Writ Petition

No.15642 of 2007.

RANBIR SINGH v. EXECUTIVE ENG. P.W.D

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Manjeet Singh Dalal, Sr. Adv., Ms. Beena, Satish Kumar, Advs.

for the Appellant.

Samar Vijay Singh, AAG, Vishwa Pal Singh, Ms. Nandita Jha,

Y.P. Singh, Anil Kumar, Kamal Mohan Gupta, Advs. for the Respondent.

The Judgment of the Court was delivered by

K. M. JOSEPH, J.

1. Heard Shri Manjeet Singh, learned Senior Counsel for the

appellant and also Shri Samar Vijay Singh, learned AAG for the

respondent. By the impugned judgment the High Court has interfered

with the award passed by the Labour Court, Hisar dated 13

th

October,

2006 and directed that appellant would be entitled to lump sum

compensation of Rs. 25,000/- (Rupees Twenty Five Thousand Only)

which was to be paid within three months of the order. The High Court

notes the claim of the appellant to be that he was appointed verbally in

June, 1983, and that, his service was terminated on verbal orders on

01.04.1991, after he had worked for eight years.

2. The case of the appellant was that he was working with the

respondent for a period of nearly eight years and service was terminated

without complying with Section 25F of the Industrial Disputes Act, 1947

(hereinafter referred to as, ‘the Act’). The Labour Court rejected the

contention of the respondent that the appellant had not worked for 240

days and found that appellant had indeed worked for 240 days. It is

found that there is non-compliance of Section 25F of the Act and the

Labour Court awarded reinstatement of the appellant with 25 per cent

back wages. As already noticed, it is this award which is set aside by

the High Court.

3. Shri Manjeet Singh, learned Senior Counsel for the appellant

would seek to rely upon the judgment of this Court in Ajaypal Singh v.

Haryana Warehousing Corporation

1

. He would further submit that some

of persons juniors to him were also dealt with in a different fashion,

and in their case, they are working and they have, in fact, been

regularised also. Learned counsel submits that the appellant should be

reinstated in terms of the order of the Labour Court. Per Contra, Shri

Samar Vijay Singh, learned AAG for the respondent pointed out that

the acceptance of the contention of the appellant involved violation of

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the law laid down by this court in Secretary, State of Karnataka and

others v. Umadevi (3) and others

2

. He still further drew out attention

to the decision of this Court in State of Uttarakhand and another v.

Raj Kumar

3

and points out that, in such circumstances, an order of

reinstatement may not be justified.

4. It is true that in the Ajay Pal Singh (supra), the Bench of this

Court, by judgment rendered in the year 2015, took the view that, when

the termination is effected of service of a daily wager, there must be

compliance of Section 25F. This Court, in fact, went on also to note

that unlike a private body, in the case of a public body, while it may be

open to resort to retrenchment of the workmen on the score that there

is non-compliance of Articles 14 and 16 in the appointment, in which

case, in the order terminating the services, this must be alluded to, it

would still not absolve the public authority from complying with the

provisions of Section 25F of the Act and, should it contravene Section

25F, it would amount to an unfair trade practice. We do notice, this

judgment has been reiterated in a subsequent judgment also in Durgapur

Casual Workers Union and others v. Food Corporation of India and

others

4

.

5. However, we notice that there is another line of decisions, and

the latest of the same, which is brought to our notice by Shri Samar

Vijay Singh, learned AAG, is Raj Kumar (supra). We may refer only to

paragraphs-9 and 10:

“9. In our opinion, the case at hand is covered by the two

decisions of this Court rendered in BSNL v.Bhurumal [BSNL v.

Bhurumal, (2014) 7 SCC 177 : (2014) 2 SCC (L&S) 373] and

Distt. Development Officer v. Satish Kantilal Amrelia [Distt.

Development Officer v. Satish Kantilal Amrelia, (2018) 12 SCC

298 : (2018) 2 SCC (L&S) 276] .

10. It is apposite to reproduce what this Court has held in BSNL

[BSNL v. Bhurumal, (2014) 7 SCC 177 : (2014) 2 SCC (L&S)

373] : (SCC p. 189, paras 33-35)

“33. It is clear from the reading of the aforesaid judgments that

the ordinary principle of grant of reinstatement with full back

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(2019) 14 SCC 353

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(2015) 5 SCC 786

RANBIR SINGH v. EXECUTIVE ENG. P.W.D

[K. M. JOSEPH, J.]

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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 mala fide and/or by way of victimisation, 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 a procedural defect, namely, in violation of Section

25-F of the Industrial Disputes Act, this Court is consistent in

taking the view that 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. The 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 non-payment of retrenchment

compensation and notice pay as mandatorily required under

Section 25-F 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

regularisation [see State of Karnataka v. Umadevi (3) [State

of Karnataka v. Umadevi (3), (2006) 4 SCC 1 : 2006 SCC

(L&S) 753] ]. Thus when he cannot claim regularisation 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

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 that 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

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were regularised under some policy but the workman concerned

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.””

6. In the light of the state of the law, which we take note of, we

notice certain facts which are not in dispute. This is a case where it is

found that, though the appellant had worked for 240 days, appellant’s

service was terminated, violating the mandatory provisions of Section

25F of the Act. The authority involved in this case, apparently, is a public

authority. At the same time, it is common case that the appellant was

a daily wager and the appellant was not a permanent employee. It is

relevant to note that, in the award answering Issue No.1, which was,

whether the termination of the appellant’s service was justified and in

order, and if not, what was the amount of back wages he was entitled

to, it was found, inter alia, that the appellant could not adduce

convincing evidence to establish retention of junior workers. There is

no finding of unfair trade practice, as such. In such circumstances, we

think that the principle, which is enunciated by this Court, in the decision,

which is referred to in Raj Kumar (supra), which we have referred to,

would be more appropriate to follow. In other words, we find that

reinstatement cannot be automatic, and the transgression of Section 25F

being established, suitable compensation would be the appropriate

remedy.

7. In such circumstance, noticing that, though the appellant was

reinstated after the award of the Labour Court in 2006, the appellant

has not been working since 2009 following the impugned order, and also

taking note of the fact that the appellant was, in all likelihood, employed

otherwise, also the interest of justice would be best subserved with

modifying the impugned order and directing that in place of Rs. 25000/

- (Rupees Twenty Five Thousand), as lumpsum compensation, appellant

be paid Rs.3.25 lakhs (Rupees Three Lakhs and Twenty Five

Thousand), as compensation, taking into consideration also the fact that

the appellant had already been paid Rs. 25000/- (Rupees Twenty Five

Thousand) as compensation.

RANBIR SINGH v. EXECUTIVE ENG. P.W.D

[K. M. JOSEPH, J.]

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8. Accordingly, the appeal is partly allowed. We modify the

impugned judgment by directing that over and above, compensation

directed of Rs. 3.25 lakhs (Rupees Three Lakhs and Twenty Five

Thousand), shall be paid to the appellant.

9. This will be done within a period of eight weeks from today.

10. The appeal is partly allowed as above. The aforesaid

payment shall effectuate a full and final settlement of all claims of the

appellant.

Bibhuti Bhushan Bose Appeal partly allowed.