As per case facts, a workman was removed from service following an enquiry for unauthorized absence of approximately 500 days. The Labour Court, while addressing a claim petition, found the ...
W.P.(C) 5535/2006 & W.P.(C) 2551/2006 Page 1 of 19
IN THE HIGH COURT OF DELHI AT NEW DELHI
% Judgment reserved on:24.07.2026
Judgment pronounced on:08.09.2026
Judgment uploaded on:08.09.2026
# CNR No. DLHC010735882006
+ W.P.(C) 5535/2006
BANWARI SINGH RANA .....Petitioner
versus
MANGT. OF M/S ASHOK HOTEL & ANR. ..... Respondents
# CNR No. DLHC010721272006
+ W.P.(C) 2551/2006
THE MANAGEMENT OF ASHOK HOTEL .....Petitioner
versus
ALL INDIA ITDC MAZDOOR JANTA U ..... Respondent
Advocates who appeared in this case:
For the Petitioner : Mr. Karan Luthra and Mr. Rohan Dua,
Advs. in W.P.(C)5535/2006.
Mr. Rajeev Goyal, Mr. Anshul Misra and
Ms. Rashi Agarwal, Advs. in W.P.(C)
2551/2006.
W.P.(C) 5535/2006 & W.P.(C) 2551/2006 Page 2 of 19
For the Respondents : Mr. Rajeev Goyal, Mr. Anshul Misra and
Ms. Rashi Agarwal, Advs. in W.P.(C)
5535/2006.
Mr. Karan Luthra and Mr. Rohan Dua, Advs.
in W.P.(C)2551/2006.
CORAM
HON’BLE MR JUSTICE AMIT MAHAJAN
JUDGMENT
1. The present cross petitions are filed assailing order dated
07.02.2005 (hereinafter ‘impugned order’) passed by the learned
Labour Court in I.D. No. 543/96 whereby Shri Banwari Singh was
directed to be reinstated into service without back wages or continuity
of service.
2.Briefly stated, Shri Banwari Singh was appointed on a
temporary post of Tandoori Cook at Airport Hotel, Calcutta on
29.01.1975. Subsequently, Shri Banwari Singh was transferred and
posted at Frontier Restaurant in Ashok Hotel as Chef De Parte.
Thereafter, a complaint was filed against Shri Banwari Singh and 23
other employees by the then Senior Chef, Ashok Hotel vide letter
dated 02.07.1993 regarding unauthorised absence.
3.The management of Ashok Hotel issued a charge sheet dated
04.09.1993 against Shri Banwari Singh under Rule 4(4.1)(vi) and
4(4.1)(xi) of the Indian Tourism Development Corporation Conduct
Discipline & Appeal Rules, 1978. Pursuant to the departmental
W.P.(C) 5535/2006 & W.P.(C) 2551/2006 Page 3 of 19
enquiry, Shri Banwari Singh was removed from services as he had
remained unauthorisedly absent for a period of about 500 days. Shri
Banwari Singh preferred an appeal against his termination before the
Vice President (H), however, the same was rejected vide order dated
25.05.1995.
4. Aggrieved thereby, Shri Banwari Singh and All India ITDC
Mazdoor Janta Union filed a claim petition before the Assistant
Labour Commissioner & Conciliation Officer and thereafter, the same
was sent to the learned Labour Court vide Reference No. F
24(1545)/96-Lab/35926-30 dated 01.07.1996.
5.The learned Labour Court vide order dated 31.07.2004 observed
that the enquiry in the present case had been undertaken by an
individual who was not an employee of Ashoka Hotel, which was in
violation of Section 16(iii) of the Certified Standing Order and hence
the enquiry against the workman stood vitiated.
6.The learned Labour Court vide the impugned order further
noted that the enquiry against Shri Banwari Lal had been held illegal
vide order dated 31.07.2004 only on a technical ground and he had
admitted the charges for remaining absent for more than a year
without any intimation or permission. Thus, the learned Tribunal
concluded that the workman had committed a grave misconduct which
could not be awarded in any manner by awarding back wages or
continuity of service and directed simple reinstatement in favour of
Shri Banwari Lal.
W.P.(C) 5535/2006 & W.P.(C) 2551/2006 Page 4 of 19
7.Aggrieved thereby, the present cross petitions have been filed.
The challenge in W.P(C) 5535/2006 is limited to denial of back wages
to the workman.
8.This Court vide order dated 19.05.2023 noted that the workman
expired on 13.11.2015 and allowed the application for impleadment of
his LRs.
9.The learned counsel for the workman (Petitioner in W.P(C)
5535/2006) submitted that the learned Labour Court has erred in
failing to grant back wages to the workman.
10.He submitted that the learned Labour Court conclusively held
that the termination of the workman was illegal and that the
management failed to prove that the workman was gainfully employed
during the period of termination, thus, he ought to have been granted
back wages from the date of his illegal termination.
11.He submitted that the learned Labour Court erred in denying
back wages to the workman by observing that his termination was
held to be illegal only on a technical ground. He submitted that the
enquiry officer in the workman’s enquiry not being authorised to
conduct an enquiry under the Standing Orders completely vitiates the
proceedings and renders it wholly without jurisdiction and the same
cannot be held to be a mere “technical ground”. In this regard reliance
has been placed upon the judgment of the Hon’ble Apex Court in
Central Bank of Inida v. C. Bernard : (1991) 1 SCC 319.
W.P.(C) 5535/2006 & W.P.(C) 2551/2006 Page 5 of 19
12.He submitted that even if the charge of un-authorised absence
against the workman stood proved, the punishment awarded for the
same is wholly disproportionate to the alleged misconduct. He
submitted that similarly placed employees, namely Sh. Yash Pal and
Smt. Mehak Singh, who were also named in the complaint dated
02.07.1993 for the same allegation of unauthorised absence, were not
terminated but were instead issued caution/warning letters or had
increments stopped. He submitted that the same makes it evident that
the management adopted a discriminatory approach against the
workman in the present case.
13.He submitted that the learned Labour Court while denying back
wages to the workman erroneously relied upon the alleged admission
of the workman, which formed part of the inquiry proceedings. He
submitted that once the learned Labour Court found the inquiry
proceedings to have been vitiated, it was no longer open to the learned
Labour Court to place reliance upon any part of those proceedings. In
this regard reliance has been placed upon the judgment in Workmen
of Motipur Sugar Factory Pvt. Ltd. vs The Motipur Sugar Factory :
AIR 1965 SC 1803 and Phulbari Tea Estate vs Workmen : AIR 1959
SC 1111.
14.He submitted that the learned Labour Court has rightly placed
reliance upon the judgments in Central Bank of India v. C. Bernard :
(1991) 1 SCC 319 and Hotel Kanishka v. Delhi Administration
: 1 LIJ 1996 to observe that in absence of any rules in the standing
W.P.(C) 5535/2006 & W.P.(C) 2551/2006 Page 6 of 19
order that the enquiry officer can be from anywhere, the same has to
be from the department and cannot be an outsider.
15. The learned counsel for the management (respondent in
W.P(C) 5535/2006 and petitioner in W.P.(C) 2551/2006) submitted
that the learned Labour Court has erred in granting reinstatement to
the workman. He submitted that the learned Labour Court has
erroneously observed that the enquiry proceedings stood vitiated as
the same had been in violation of Section 16(iii) of the Certified
Standing Orders.
16.He submitted that Section 16(iii) of the Certified Standing
Orders does not mandate that the enquiry against an employee ought
to be held by an officer of the employer, rather it only mandated that
the enquiry officer not be an officer who is lower in rank to the
accused.
17.He submitted that the reliance placed by the learned Labour
Court upon the judgment of this Court in Hotel Kanishka v. Delhi
Administration : 59 (1995) DLT553,in order to determine that the
enquiry was not held by a proper officer as per the standing orders in
the present case, is misplaced. He submitted that the aforesaid
judgment can be distinguished from the facts of the present case. He
submitted that in Hotel Kanishka (supra), the relevant standing order
provided for an enquiry to be conducted by an officer/ employee of the
Hotel/Corporation, who should not be lower in rank than the accused,
while in the present case the standing order only provides that an
W.P.(C) 5535/2006 & W.P.(C) 2551/2006 Page 7 of 19
enquiry shall be held by an officer/employer not lower in status than
the accused.
18.He submitted that the reliance placed upon the judgment in
Central Bank of India v. C. Bernard (supra) is misplaced and the
same can be distinguished on facts.
19.He submitted that the standing order in the present case does not
expressly provide that the officer holding the inquiry ought to be an
employee of the Hotel and the term ‘officer’ has not been defined in
the standing orders. He submitted that in view of the same, the learned
Labour Court could not have construed Section 16(iii) of the standing
order to mean that the inquiry ought to be conducted by “an officer of
the company”. In this regard reliance has been placed upon the
judgment of the the Hon’ble Rajasthan High Court in Capstan Meters
(India) Ltd. v. The Judge Labour Court : 1991 (2) WLN417.
20.He submitted that Shri Hardan Lal was engaged by India
Tourism Development Corporation (ITDC) on retainership basis for
conducting inquiries into departmental cases with the status equivalent
to an officer in the scale of pay of Rs. 1500-2000/-, and has produced
office order dated 30.07.1996 to support the same. He has further
produced an LTC final settlement form issued by ITDC, Unit: Ashoka
Hotel, wherein Shri Banwari Singh has mentioned his scale of pay as
Rs.1350-2325. Thus, he submits that Shri Hardan Lal being an officer
appointed by the General Manager of Ashoka Hotel and having being
engaged by ITDC for conducting enquiries was at a higher pay scale
W.P.(C) 5535/2006 & W.P.(C) 2551/2006 Page 8 of 19
than the workman at the time of enquiry and therefore, would
indisputably be a proper officer to conduct the enquiry in terms of the
standing order.
21.He submitted that Shri Hardan Lal was also appointed as the
inquiry officer in other cases as well by the General Manager of
Ashoka Hotel and has produced appointment letters dated 28.06.1989
and 15.07.2000 to support the same.
22.He submitted that no prejudice has been caused to the workman
due to his enquiry having been undertaken by an outsider, as the
charge of being on un-authorised leave for a period of 500 days was
never contested by the workman. He submitted that the workman
admitted the said charge only with the caveat that his absence was due
to family disputes and marital problems, which caused him mental
distress, while failing to lead any evidence in this regard.
23.He submitted that the plea of the workman regarding the
management being discriminatory towards him by terminating him is
wrong and misconceived. He submitted that the workman has failed to
plead as to how his case was similar to that of Mehak Singh and Yash
Pal. He submitted that Mehak Singh had remained absent for a period
of 114 days and Yashpal had remained absent for a period of 118
days, while the workman in the present case was on un-authorised
leave for a period of 500 days.
W.P.(C) 5535/2006 & W.P.(C) 2551/2006 Page 9 of 19
24.He submitted that the workman has not led any evidence to
prove that he remained unemployed during the relevant period and
thus, the relief of back wages cannot be granted to him.
25.I have heard the arguments and perused the record.
26.At the outset, it is necessary to note that the scope of
interference under Articles 226 and 227 of the Constitution of India
with an Award passed by the Labour Court is limited. This Court does
not sit as a Court of appeal over findings of fact rendered by the
Labour Court. Interference is warranted only where the findings are
perverse, based on no evidence, suffer from patent illegality, or
disclose a jurisdictional error. Reference in this regard may be made to
the judgment in International Airport Authority of India v.
International Air Cargo Workers Union :(2009) 13 SCC 374 where
the Hon’ble Apex Court held as under:
“47. It is true that in exercising the writ jurisdiction, the High
Court cannot sit in appeal over the findings and award of the
Industrial Tribunal and therefore, cannot reappreciate evidence.
The findings of fact recorded by a fact-finding authority should
ordinarily be considered as final. The findings of the Tribunal
should not be interfered with in writ jurisdiction merely on the
ground that the material on which the Tribunal had acted was
insufficient or not credible.
48. It is also true that as long as the findings of fact are based on
some materials which are relevant, findings may not be interfered
with merely because another view is also possible. But where the
Tribunal records findings on no evidence or irrelevant evidence, it
is certainly open to the High Court to interfere with the award of
the Industrial Tribunal.”
W.P.(C) 5535/2006 & W.P.(C) 2551/2006 Page 10 of 19
27.In the present case, the learned Labour Court held the inquiry in
the present case to have been vitiated for having violated Section 16
(iii) of the Certified Standing Order, which provides as under:
“III. An employee against whom an enquiry has to be held shall be
given a chargesheet clearly setting forth the charges against him
indicating therein the nature of offence as laid down in any of the
sub-sections of Section 14 above and the full particulars thereof.
The charge-sheet will invariably end up by calling upon the
employee to give his explanation in writing by a stipulated date. If
his reply is not considered satisfactory by the departmental head
concerned an enquiry shall be held by an officer/employer not
lower in status than the accused. During the enquiry…….”
28.Section 16(iii) of the Standing Orders provides that an
employee against whom an enquiry is to be held shall be taken up by
an officer/employer who is not lower in status than the accused
employee. The learned Labour Court has construed the provision to
mean that such officer must be an employee of the
Corporation/Department and must not be lower in rank or status than
the accused. Though the Management contends that Section 16(iii)
does not expressly stipulate that the officer must be an employee of
the Corporation, this contention, in the opinion of this Court, cannot
be accepted.
29.The expression “officer/employer” has to be understood in the
context of the Standing Orders governing the service conditions of the
Corporation's employees. The reference to an “officer”, particularly
when read with the requirement that such officer must not be lower in
status than the accused, necessarily contemplates a person holding a
position within the organisational hierarchy of the employer. The
W.P.(C) 5535/2006 & W.P.(C) 2551/2006 Page 11 of 19
requirement of relative status would have little meaning if the Enquiry
Officer were to be an outsider to the Corporation.
30.Thus, although Section 16(iii) does not expressly state that the
Enquiry Officer must be an employee of the Corporation, such
requirement necessarily follows from the language and scheme of the
provision. The learned Labour Court was, therefore, justified in
holding that the “officer” contemplated under Section 16(iii) must be
an officer/employee of the Corporation.
31.Having decided that the “officer” contemplated under Section
16(iii) must be an officer/employee of the Corporation, the question
that arises is whether Shri Hardam Lal, who was the appointed enquiry
officer in the present case, can be regarded as an officer of the
Corporation.
32.The Management has produced the Office Order dated
02.07.1986, whereby Shri Hardam Lal was engaged by ITDC on
retainership basis for conducting enquiries in departmental cases. The
said Office Order further stipulates that he would enjoy the status
equivalent to that of an officer in the scale of pay of ₹1,500-2,000/-.
The relevant extract of the said Office Order is reproduced
hereinbelow:
“Shri Hardam Lal resident of 4D/57, Rajendra Nagar(Old), New
Delhi-110060, Phone: 5711999 has been engaged by ITDC on
retainership basis with immediate effect for conducting enquiries in
the departmental cases. Sh. Hardam Lal will enjoy status
equivalent to an officer in the scale of pay of Rs.1500-2000/- He
W.P.(C) 5535/2006 & W.P.(C) 2551/2006 Page 12 of 19
will be entitled to payment of a retainership fee of Rs.325/- per
enquiry, and reimbursement of conveyence expenses at the rate of
Rs.30/- per sitting.”
(emphasis supplied)
33.The Management has also produced the Office Orders dated
28.06.1989 and 15.07.2000, whereby Shri Hardam Lal was appointed
as the Enquiry Officer in two other cases of misconduct by the
General Manager of Ashoka Hotel. Further, in the present case itself,
Shri Hardam Lal was appointed as the Enquiry Officer by the Resident
Manager, Ashoka Hotel, vide order dated 28.10.1993.
34.In the opinion of this Court, the mere description of a person as
enjoying a status equivalent to that of an officer, or the conferment of
a notional scale of pay, cannot by itself make such person an officer of
the Corporation.
35.In the present case, the Office Order dated 02.07.1986 itself
records that Shri Hardam Lal was engaged “on retainership basis” for
conducting departmental enquiries and was to be paid a retainership
fee of ₹325/- per enquiry, besides conveyance expenses. Thus, his
engagement was specifically for the limited purpose of conducting
departmental enquiries and did not constitute an appointment to any
office or post under the Corporation. The mere stipulation that he
would enjoy a status equivalent to that of an officer cannot, in the
opinion of this Court, alter the nature of his engagement or make him
an officer/employee of the Corporation for the purposes of Section
16(iii).
W.P.(C) 5535/2006 & W.P.(C) 2551/2006 Page 13 of 19
36.Reliance in this regard may be placed upon the judgment of a
Division Bench of this Court in Hotel Kanishka v. Delhi
Administration & Ors.:1995 SCC OnLine Del 321. In the said case,
the Division Bench was considering an identical provision contained
in Standing Order 16(iii), which required the enquiry to be conducted
by an “officer/employee of the Hotel/Corporation not lower than the
accused”. The Enquiry Officer therein had, like Shri Hardam Lal in
the present case, been engaged on a retainership basis for conducting
departmental enquiries and was accorded a status equivalent to that of
an officer in the scale of ₹1,500–2,000/-. The Division Bench
nevertheless observed that such engagement did not make him an
officer/employee of the Corporation. The relevant observations are
reproduced hereinbelow:
“5. In order to appreciate the contention of the learned counsel for
the appellant, it is necessary to reproduce Para 16(iii) of the
Standing Orders, which admittedly is the provision applicable to
the facts and circumstances of the present case:
“16. Procedure for dealing with cases of misconduct”
x x x
(iii) An employee against whom an enquiry has to be held shall be
given a charge-sheet clearly setting forth the charges against him
indicating therein nature of the offence as laid down in any of the
sub-clauses of Cl. 14 above and the full particulars thereof. The
chargesheet will invariably end up by calling upon the employee to
give his explanation in writing by a stipulated date. If his reply is
not considered satisfactory by the management or if no reply is
received within stipulated time or any extension thereof, an enquiry
shall be held by an officer/employee of the Hotel/Corporation not
lower than the accused.
6. In this connection it is also necessary to refer to the office order
appointing Sri S.P.S. Ahluwalia for conducting the enquiry in
departmental cases, which according to the learned counsel for the
W.P.(C) 5535/2006 & W.P.(C) 2551/2006 Page 14 of 19
appellant is his appointment order appointing him as an
officer/employee of the Hotel/Corporation.
“Sri S.P.S. Ahluwalia has been engaged on retainership basis with
effect from 23 May 1984 for conducting enquiries in the
departmental cases. He will enjoy status equivalent to an officer in
the scale of Rs. 1500-2000.
Sd/-
(P.C. ARORA)
Deputy General Manager (E)”
7. From a bare perusal of the aforesaid provision of Para. 16(iii)
of the Standing Orders it is apparent that the disciplinary enquiry
against a workman is required to be conducted by an
officer/employee of the Hotel/Corporal ion, who also should not be
lower than the accused (workman).
8. Now the question that is to be determined is whether Sri S.P.S.
Ahluwalia, who was appointed as the enquiry officer in the present
case was an officer/employee of the Hotel/Corporation and not
lower than the workman. From the aforesaid appointment order it
cannot be said that Sri S.P.S. Ahluwalia, the enquiry officer was an
officer of the Corporation. The aforesaid appointment order
categorically states that he is engaged on retainership basis for
conducting enquiries enjoying the status equivalent to an officer in
the scale of Rs. 1500-2000. Although in terms of the aforesaid
order the enquiry officer was enjoying the status equivalent to an
officer in the scale of Rs. 1500-2000, he was himself not appointed
to the said scale but was engaged on retainership basis only. That
being the position it cannot be held that Sri S.P.S. Ahluwalia was
an employee/officer of the Corporation. The source of power of
appointment of an enquiry officer being the Standing Order which
categorically lays down that he must be an officer employee of the
Corporation/Hotel not lower than the employees against whom an
enquiry is to be held, no other person than an officer/employee of
the Corporation/Hotel could function as an enquiry officer in
disciplinary proceedings conducted against any workman of the
Corporation/Hotel.
9. On perusal of the impugned judgment and order challenged
before us, we find that the learned Single Judge has considered the
provisions of the Standing Order 16(iii) and also the order
appointing Sri Ahluwalia for conducting enquiries in departmental
W.P.(C) 5535/2006 & W.P.(C) 2551/2006 Page 15 of 19
cases and on consideration of the same has come to a categorical
finding that Sri Ahluwalia was not an officer/employee of the
Corporation and accordingly in terms of the Standing Order No.
16(iii) he was not entitled to conduct an enquiry. In coming to the
aforesaid conclusion the learned Single Judge also considered the
decision of the Supreme Court in the case of Central Bank of India
[1991 (1) L.L.N. 1111] (vide supra), relied upon by the learned
Counsel for the appellant and came to the conclusion that in the
facts and circumstances of the present case the ratio of the said
decision is not applicable inasmuch as the present case stands on a
different footing, as in the present case one is faced with a
Standing Order which has the force of law.
10. On careful consideration of the findings and the decision
arrived at by the learned Single Judge we find that the decision
arrived at by him does not suffer from any infirmity and is based on
reasons and proper appreciation of the provisions of the Standing
Orders, and the order of appointment of Sri S.PS. Ahluwalia as the
enquiry officer.”
(emphasis supplied)
37.The Office Order dated 02.07.1986 records that Shri Hardam
Lal was engaged on a retainership basis for conducting departmental
enquiries and that he would enjoy a status equivalent to that of an
officer in the scale of ₹1,500–2,000/-. As in Hotel Kanishka (supra),
the fact that he was accorded a status equivalent to that of an officer
does not alter the nature of his engagement. He was not appointed to
the said scale or to any office under the Corporation.
38.The subsequent orders appointing Shri Hardam Lal as an
Enquiry Officer in other cases, also do not alter the aforesaid position.
Such appointments merely show that his services were utilised by the
Management for conducting departmental enquiries and have no
bearing on whether he otherwise satisfied the requirement of being an
W.P.(C) 5535/2006 & W.P.(C) 2551/2006 Page 16 of 19
officer of the Corporation under Section 16(iii) of the Standing
Orders.
39.In view of the aforesaid, this Court finds no infirmity in the
conclusion of the learned Labour Court that the enquiry conducted
against the workman was in violation of Section 16(iii) of the
Standing Orders and, consequently, stood vitiated. The termination of
the workman, being founded upon such enquiry, is therefore rendered
illegal.
40.The next question that arises is with regard to the relief to which
the workman would be entitled. The learned Labour Court, while
holding the enquiry to be vitiated, noted that the workman had
admitted the charges levelled against him during the enquiry and had
merely sought a lenient view on account of family disputes and the
resultant mental distress. The learned Labour Court, therefore,
declined to grant full back wages or continuity of service and confined
the relief to simple reinstatement.
41.It is, however, pertinent to note that the workman had already
attained the age of superannuation, in 2004, before the award came to
be passed and, consequently, the relief of reinstatement was no longer
capable of being granted. Thereafter, as noted above, the workman
expired on 13.11.2015.
42.The learned counsel for the workman has contended that once
the enquiry against the workman stood vitiated, the learned Labour
Court ought not to have considered the records of the said enquiry and
W.P.(C) 5535/2006 & W.P.(C) 2551/2006 Page 17 of 19
denied the workman back wages and continuity of service. Be that as
it may, the mere finding that the termination was illegal does not, by
itself, confer an automatic right to reinstatement or back wages. The
relief to be granted is required to be moulded having regard to the
facts and circumstances of each case.
43.It is trite law that a finding of illegality in termination does not,
by itself, mandate reinstatement and full back wages in every case.
The Hon’ble Apex Court has repeatedly held that reinstatement is not
an automatic or mechanical consequence of an order of termination
being held illegal and that the relief must be moulded having regard to
the nature of employment, length of service and the surrounding
circumstances of the case. In Allahabad Bank v. Krishan Pal Singh :
(2021) 19 SCC 227, the Hon’ble Supreme Court has held that
reinstatement with full back wages is not automatic in every case
where termination or dismissal is found to be not in accordance with
the procedure prescribed under law and that the relief can be moulded
depending upon the facts and circumstances of the case. The relevant
extract of the same is reproduced hereinbelow:
“8. The directions issued by the High Court of Allahabad for
reinstatement were stayed by this Court on 23-8-2019 [Allahabad
Bank v. Krishan Pal Singh, 2019 SCC OnLine SC 2061] . During
the pendency of these proceedings, the respondent workman had
attained age of superannuation. Though, there was strong
suspicion, there was no acceptable evidence on record for
dismissal of the workman. However, as the workman has worked
only for a period of about six years and he has already attained the
age of superannuation, it is a fit case for modification of the relief
granted by the High Court. The reinstatement with full back wages
is not automatic in every case, where termination/dismissal is
W.P.(C) 5535/2006 & W.P.(C) 2551/2006 Page 18 of 19
found to be not in accordance with procedure prescribed under
law. Considering that the respondent was in effective service of the
Bank only for about six years and he is out of service since 1991,
and in the meantime, respondent had attained age of
superannuation, we deem it appropriate that ends of justice would
be met by awarding lump sum monetary compensation. We
accordingly direct payment of lump sum compensation of Rs 15
lakhs to the respondent, within a period of eight weeks from today.
Failing to pay the same within the aforesaid period, the respondent
is entitled for interest @ 6% p.a., till payment.”
44.Hence, it is well crystallised that where the facts so warrant, the
Court is empowered to award monetary compensation in lieu of
reinstatement, in such cases where reinstatement is not feasible, and
where such relief of compensation would better serve the ends of
justice.
45.In the present case, the workman had been absent without
authorisation for approximately 500 days and had himself admitted the
charge during the enquiry, while seeking leniency on account of his
personal circumstances. At the same time, the termination founded
upon the vitiated enquiry cannot be sustained. Balancing these
circumstances, this Court is of the considered view that neither
reinstatement, which is no longer feasible, nor full back wages and
continuity of service would constitute an appropriate relief.
46.Accordingly, while affirming the finding of the learned Labour
Court that the termination of the workman was illegal on account of
the enquiry having been conducted in violation of Section 16(iii) of
the Standing Orders, this Court is of the considered view that the relief
W.P.(C) 5535/2006 & W.P.(C) 2551/2006 Page 19 of 19
of reinstatement granted by the learned Labour Court warrants
modification.
47.In the facts and circumstances of the present case, the ends of
justice would be met by awarding a lump-sum compensation of
₹3,00,000/- to the LRs of the workman.
48.The said amount shall be paid by the Management within a
period of eight weeks from the date of this order.
49.The petitions are accordingly disposed of in the aforesaid terms.
Pending application(s), if any, also stand disposed of.
50.A copy of this order be placed in both the matters.
AMIT MAHAJAN, J
SEPTEMBER 8, 2026
‘KDK’
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