jkti=] fgekpy izns'k
fgekpy izns'k jkT; 'kklu }kjk izdkf'kr
cq/kokj] 11 vizSy] 2018@21 pS=] 1940
fgekpy izns'k ljdkj
TRANSPORT DEPARTMENT
NOTIFICATION
Shimla-2, the 10th April, 2018
No. TPT-A(1)-3/2015.—The Governor, Himachal Pradesh, in exercise of the power
conferred upon him under Section 68 of Motor Vehicles Act, 1988 (Act No 59 of 1988) and all
09&jkti=@2018&11&04&2018
¼267½
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other powers enabling him in this behalf, is pleased to constitute the State Transport Authority,
Himachal Pradesh, Shimla, which shall exercise powers and perform functions enumerated in sub-
section 2 of above Section, of the act ibid:—
Official Member
1.
Additional Chief Secretary (Transport) to the
Government of Himachal Pradesh
. .Chairman
2.
Director (Transport) Himachal Pradesh
Shimla-171004
. .Member
3.
Secretary, State Transport Authority
Shimla, H.P.
. .Member Secretary
Non-Official Member
1.
Sh. Pal Verma, Advocate, r/o Vill. Shylah,
P.O. Lohara, Tehsil Balh, District Mandi, H.P.
. .Member
2.
Sh. Chaman Pundeer, r/o VPO Dehrian, Tehsil
Jawalaji, District Kangra, H.P.
. .Member
3.
Sh. Harpal Singh Gill, r/o VPO Raipur Sadouna,
Tehsil and District Una, H.P.
. .Member
4.
Smt. Jindu Devi, r/o Vill Kanyal, P.O. Chhiyal
Tehsil Manali, District Kullu, H.P.
. .Member
By order,
RAM SUBHAG SINGH,
Additional Chief Secretary (Transport).
____________
HIMACHAL PRADESH VIDHAN SABHA SECRETARIAT
SHIMLA-171004
NOTIFICATION
Shimla- 4, the 10th April, 2018
No. VS/Estt./6-62/81-II.—On the recommendations of the Departmental Promotion
Committee, the Hon’ble Speaker is pleased to promote and appoint Sh. Sanjeev Gupta, Section
Officer as Under Secretary in the pay scale of Rs. 15600-39100+ 6600GP with immediate effect.
He will be entitled to exercise option for pay fixation under the saving clause as per
clarification contained in letter number Fin (PER)B(7)-1/2009 dated 19.09.2009 within a period of
one month.
Sd/-
Secretary,
H. P. Vidhan Sabha.
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LAW DEPARTMENT
NOTICE
Shimla-2, the 7th April, 2018
No. LLR-E(9)-4/2018-Leg.—Whereas, the following Advocates of District Sirmaur H.P.
have applied for appointment of Public Notary in the place and area mentioned against their names
under rule 4 of the Notaries Rules, 1956:—
Sl. No.
Name of Advocate
Area for which they have applied for
appointment of Notary
1.
Shri Nitin Gupta, Advocate s/o Shri Viney
Kumar Gupta, r/o H. No. 262/11, Chauhan Ka
Bag Nahan, District Sirmaur, H.P.
Sub-Division Nahan
2.
Shri Abhay Kant Aggarwal, Advocate s/o
Shri Prem Chand Aggarwal, r/o Above
Aggarwal
Motors
Gunnu-Ghat
Nahan,
District Sirmaur, H.P.
Sub-Division Nahan
Therefore, I undersigned in exercise of the power conferred vide Government Notification
No. LLR-A(2)-1/2014-Leg. dated 1st July, 2017, hereby issue notice under rule 6 of the Notaries
Rules, 1956, for the information of general public for inviting objections, if any, within a period of
fifteen days from the date of publication of this notice in Rajpatra, H.P. against their appointment
as Notary Public in the places mentioned against their names of their respective Sub-Divisions.
(Competent Authority),
DLR-cum-Deputy Secretary (Law-Legislation).
&&&&&&&
HIGH COURT OF HIMACHAL PRADESH, SHIMLA- 171 001
NOTIFICATION
Shimla, the 21st March, 2018
No. HHC/Admn. 3(270)/88-I.—12 days earned leave i.e. on and with effect from
02-04-2018 to 13-04-2018, with permission to prefix Sunday falling on 01-04-2018 and suffix
Second Saturday and Sunday falling on 14-04-2018 and 15-04-2018, is hereby sanctioned, in
favour of Smt. Sanjokta Thakur, Court Master of this Registry.
Certified that Smt. Sanjokta Thakur is likely to join the same post and at the same station
from where she proceeds on leave after the expiry of the above leave period.
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Certified that Smt. Sanjokta Thakur would have continued to officiate the same post of
Court Master but for her proceeding on leave.
By order,
Sd/-
Registrar General.
___________
HIGH COURT OF HIMACHAL PRADESH, SHIMLA - 171 001
NOTIFICATION
Shimla, the 23rd March, 2018
No. HHC/Admn.16 (8)74-IV.—Hon’ble the Acting Chief Justice, in exercise of the powers
vested in him U/S 139(b) of the Code of Civil Procedure, 1908, U/S 297(1) (b) of the Code of
Criminal Procedure, 1973 and Rule 5(vi) of the H.P. Oath Commissioners (Appointment &
Control) Rules, 2007 has been pleased to appoint Sh. Vikas Kumar and Ms. Parveen Kumari,
Advocates, Hamirpur as Oath Commissioners at Hamirpur for a period of two years with
immediate effect for administering oaths and affirmations on affidavits to the deponents under the
aforesaid Codes and Rules.
By order,
Sd/-
Registrar General.
____________
HIGH COURT OF HIMACHAL PRADESH, SHIMLA - 171 001
NOTIFICATION
Shimla, the 23rd March, 2018
No. HHC/Admn.16 (20)75-III.—Hon’ble the Acting Chief Justice, in exercise of the
powers vested in him U/S 139(b) of the Code of Civil Procedure, 1908, U/S 297(1) (b) of the Code
of Criminal Procedure, 1973 and Rule 5(vi) of the H.P. Oath Commissioners (Appointment &
Control) Rules, 2007 has been pleased to appoint Sh. Pankaj Kumar, Advocate, Ghumarwin as
Oath Commissioner at Ghumarwin for a period of two years with immediate effect for
administering oaths and affirmations on affidavits to the deponents under the aforesaid Codes and
Rules.
By order,
Sd/-
Registrar General.
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LABOUR AND EMPLOYMENT DEPARTMENT
NOTIFICATION
Dharamshala the 7th December, 2017
No.: Shram (A) 6-2/2014 (Awards).—In exercise of the powers vested under section 17(1)
of the Industrial Disputes Act,1947, the Governor Himachal Pradesh is pleased to order the
publication of awards of the following cases announced by the Presiding Officer, Labour Court
D/Shala on the website of the Department of Labour & Employment Government of Himachal
Pradesh:—
Sl.
No.
Ref. No.
Petitioner
Respondent
Date of
Award/Order
1.
189/17
Dhian Chand
D.C.-cum-Chairman Red Cross
Society Kangra,HP
16-10-2017
2.
490/15
Lal Chand
E.E. HPPWD, Killar
04-10-2017
3.
507/15
Sunita Devi
E.E. HPPWD, Killar
04-10-2017
4.
489/15
Ram Dei
E.E. HPPWD, Killar
04-10-2017
5.
499/15
Muni Kumari
E.E. HPPWD, Killar
04-10-2017
6.
509/15
Naino Devi
E.E. HPPWD, Killar
04-10-2017
7.
513/15
Bimla
E.E. HPPWD, Killar
04-10-2017
8.
502/15
Laxmi Devi
E.E. HPPWD, Killar
04-10-2017
9.
506/15
Bhagtu Ram
E.E. HPPWD, Killar
04-10-2017
10.
511/15
Bindro Kumari
E.E. HPPWD, Killar
04-10-2017
11.
498/15
Dhyan Singh
E.E. HPPWD, Killar
04-10-2017
12.
492/15
Tek Chand
E.E. HPPWD, Killar
04-10-2017
13.
435/15
Anchal Goswami
M/s GVK EMRI
07-10-2017
14.
139/13
Prem Chand
E.E. HPSEB, Dharampur
09-10-2017
15.
140/13
Hem Singh
E.E. HPSEB, Dharampur
09-10-2017
16.
141/13
Hari Chand
E.E. HPSEB, Dharampur
09-10-2017
17.
273/16
Surinder Kumar
M.D. M/s GVK EMRI
17-10-2017
18.
114/16
Om Prakash
M.D. M/s GVK EMRI
17-10-2017
19.
137/17
Banita Devi
CMO Bilaspur
24-10-2017
20.
147/17
Bhoop Singh
G.M. M/s Sapna, Cars Pvt. Ltd.
27-10-2017
21.
214/16
Sebo Kumari
E.E. HPPWD, Killar
16-10-2017
22.
118/16
Khem Raj
E.E. HPPWD, Killar
16-10-2017
23.
173/16
Pritam Singh
E.E. HPPWD, Killar
16-10-2017
24.
200/16
Kishan Dei
E.E. HPPWD, Killar
16-10-2017
25.
64/16
Krishni
E.E. HPPWD, Killar
16-10-2017
26.
205/16
Narinder Kumar
E.E. HPPWD, Killar
16-10-2017
27.
157/13
LPS Dainik Bhogi
Lahaul Potato
27-10-2017
28.
231/14
Karam Chand
M/s GVKEMRI
27-10-2017
By order,
R.D. DHIMAN, IAS,
Pr. Secretary ( Lab. & Emp.).
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IN THE COURT OF SHRI K.K. SHARMA, PRESIDING JUDGE, LABOUR COURT-CUM-
INDUSTRIAL TRIBUNAL, KANGRA AT DHARAMSHALA, H.P.
Ref: No. 189/ 2017
Shri Dhian Chand s/o Shri Dharam Chand, r/o Village Kuthar Thati, P.O. Sansai, Tehsil and
District Kangra, H.P.
. . Petitioner.
Versus
1.
The Deputy Commissioner-cum-Chairman, District Red Cross Society Kangra, H.P.
2.
The Secretary, Red Cross Society, Dharamshala, District Kangra, H.P. . . Respondents.
16-10-2017 Present: Petitioner with Sh. Umesh Nath Dhiman, adv.
None for the respondent no.1
Sh. Sanjeev Singh Rana, Dy.D.A. for the respondent No.2
Case taken up today in pursuance to application under Section 151
C.P.C. for withdrawal of case moved by the applicant Sh. Dhian Chand who has claimed re-
instatement in service with the respondents raising industrial dispute in pursuance to which
reference No. 189/17 has been received from the Labour Commissioner, H.P. Application
under Section 151 C. P. C. is supported with affidavit reveals that applicant wants to
withdraw this case due to some technical reasons. In his statement on oath before this Court
applicant has prayed for withdrawal of case. Statement recorded and placed on file.
Sh. Manoj Kumar, adv. has identified the applicant/petitioner.
In view of the statement so made by the applicant/petitioner, claim petition/reference No.
189/2017 is dismissed as withdrawn without any order as to costs.
Reference is answered in the aforesaid terms. The parties to bear their own costs.
Let copy of the Order/Award be sent to the appropriate Government for information and
further necessary action / publication. The file, after completion be consigned to the records.
Announced :
16-10-2017
Sd/-
(K. K. SHARMA),
Presiding Judge,
Labour Court-cum-Industrial,
Tribunal, Kangra at Dharamshala, H.P.
__________
IN THE COURT OF SHRI K. K. SHARMA, PRESIDING JUDGE, LABOUR COURT-
CUM-INDUSTRIAL TRIBUNAL, KANGRA AT DHARAMSHALA (H.P.)
Ref. No.
: 490/2015
Date of Institution : 09-11-2015
Date of Decision : 04-10-2017
Shri Lal Chand s/o Shri Mani Dass, r/o Village Banwas, P.O. Luj, Tehsil Pangi, District
Chamba, H.P.
…Petitioner.
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Versus
The Executive Engineer, Killar Division, H.P.P.W.D., Killar (Pangi) District Chamba, H.P.
. . Respondent.
Reference under Section 10 (1) of the Industrial Disputes Act, 1947
For the Petitioner : Sh. Rajeev Dharmani, Adv.
For the Respondent : Sh. Sanjeev Singh Rana, Dy. D.A.
AWARD
The reference given below has been received from the appropriate Government for
adjudication:
“Whether the industrial dispute raised by the worker Shri Lal Chand s/o Shri Mani Dass, r/o
Villlage Banwas, P.O. Luj, Tehsil Pangi, District Chamba, H.P. before the Executive
Engineer, Killar Division, H.P.P.W.D. Killar (Pangi), District Chamba, H.P. vide demand
notice dated 19-12-2011 regarding his alleged illegal termination of services during
November 1997 suffers from delay and latches? If not, Whether termination of services of
Shri Lal Chand s/o Shri Mani Dass, r/o Villlage Banwas, P.O. Luj, Tehsil Pangi, District
Chamba, H.P. by the Executive Engineer, Killar Division, H.P.P.W.D. Killar (Pangi),
District Chamba, H.P. during November, 1997, without complying the provisions of the
Industrial Disputes Act, 1947, is legal and justified? If not, what amount of back wages,
seniority, past service benefits and compensation the above aggrieved workman is entitled
to from the above employer?”
2.
On receipt of reference from appropriate government, notices were issued to the parties
in pursuance to which claimant/petitioner has filed statement of claim.
3.
Brief facts as enumerated in the present claim petition by the petitioner above named
revealed that he had been initially engaged as daily wage beldar on muster-roll basis in the year
1993 who continuously worked till 2000 with the respondent. Averments made in the petition
further revealed that petitioner had worked for 160 days in each calendar year as per the criteria
prescribed for tribal area of Pangi Tehsil District Chamba and became eligible for continuous
service envisaged under statutory provisions of Section 25-B of the Industrial Disputes Act, 1947
(hereinafter referred to as 'the Act' for brevity). Averments made in the petition revealed that the
services of petitioner had been interrupted by way of intermittent/artificial breaks given by the
respondent/department deliberately and as such breaks are required to be counted as 'continuous
services' for the purposes of calculation of 160 days for the applicability of Section 25-B of the Act.
The grievance of petitioner remains that respondent/department had terminated/disengaged
petitioner from daily wage service orally without issuing one month's notice in writing stipulating
therein reason for retrenchment besides no retrenchment compensation was paid to petitioner when
respondent had been illegally terminated. It is also alleged that respondent had not followed the
provisions of Section 25-F of the Act while disengaging petitioner from service. It is stated that
petitioner is very poor who has no source of income besides after termination of the services of
petitioner, petitioner had approached the respondent time and again but of no avail. The grievance
of petitioner further remains that when the services of petitioner had been terminated,
respondent/department had reengaged number of new workman from time to time and while doing
so, respondent had not followed the principle of 'Last come, First go' envisaged under Section 25-G
of the Act. It is further alleged that respondent/department had continuously retained junior to
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petitioner who are still in service namely Suraj Ram who appointed in 1997, Chunku Ram in 2000,
Budhi Ram in 2003 and Dev Raj in 2007. The claimant/petitioner claimed that he had spotless
service record who never been charge-sheeted for any act of indiscipline or negligence or his
conduct and even at the time of verbal termination, no charge-sheet had been served upon him and
the at the same time, no opportunity of hearing had been afforded to him. The petitioner also
alleges that he has remained unemployed ever since his illegal termination from year of 2000 till
the date of institution of present claim petition who had been nowhere gainfully employed and was
thus entitled for full back wages. Accordingly alleging respondent to have committed violation of
statutory provision of Section 25-F, Section 25-G and Section 25-H of the Industrial Disputes Act,
1947 and thus petitioner prays for setting aside oral order of termination/retrenchment of
respondent in the year 2000. He further prayed for reinstatement in service w.e.f. year 2000 along-
with back wages, seniority including continuity in service as petitioner as he had remained
unemployed since the date of his illegal termination. The petitioner has also prayed that period of
intermittent/fictional breaks deliberately given time and again during entire service of petitioner
between 1993 to 2000 be counted 160 days continuous service and to any other relief petitioner is
entitled and regularization of the services of petitioner w.e.f. 1-1-2002 under 10 years regularization
policy and to any other relief petitioner is entitled.
4.
The respondent contested claim petition, filed reply inter-alia taken preliminary
objections of maintainability, claim petition being bad on account of delay and laches. On merits
denied that petitioner had worked for more than 160 days in each calendar year rather clarified by
stating that petitioner was engaged as daily waged beldar in 1997 who remained engaged till 2004
but had worked intermittently as petitioner used to come and attend the work at his own sweet will
and convenience. Relying upon the mandays chart, it has been categorically pleaded by the
respondent that petitioner had not completed 160 days in each calendar year as required for tribal
area of Pangi Tehsil. The allegations of fictional breaks given by respondent to the petitioner have
been specifically denied. In so far as engagement of persons junior to petitioner mentioned in para
No. 10 of the claim petition were appointed as per order of Labour Court and no other juniors to the
petitioner had been retained in service by the respondent. On the plea of termination of service of
petitioner, respondent specifically alleges that petitioner had left the job at his own will therefore
serving of notice or pay in lieu thereof was not required. Reiterating its stand respondent has
maintained that petitioner had left the work of his own sweet will and the persons mentioned in
para No.10 are stated to have engaged as per direction of the Labour Court-cum-Industrial Tribunal
Dharamshala and respondent had not violated the principle of 'Last come, First go'. It is also
contended that if petitioner had been terminated in 2004 he would have definitely raised industrial
dispute immediately and that after thirteen years petitioner is stated to be agitating the matter which
is bad on account of delay and laches. It is also contended that since the services of petitioner had
not been terminated by the respondent, question of issuance of notice or wages in lieu thereof did
not arise and at the same time, there was no necessity for charge-sheet or issuing any notice of
petitioner after his termination. It is contended that petitioner was agriculturist and gainfully
employed and was thus not entitled for back wages.
5.
The petitioner filed rejoinder, reiterated his stand as maintained in the claim petition.
Further asserted that provisions of Limitation Act did not eclipse the claim of petitioner in totality
besides allegation of violation of principle of 'Last come, First go' was specifically denied.
6.
In order to prove his case, petitioner had examined himself as PW1 tendered/proved
his affidavit Ex. PW1/A under Order 18 Rule 4 CPC, copy of demand notice Ex. PW1/B, copy of
order Ex. PW1/C and closed evidence. On the other hand, repudiating the evidence led by the
petitioner, respondent examined RW1 Shri D.R. Chauhan, the then Executive Engineer, HPPWD
Division Killar as RW1 tendered/proved mandays chart of petitioner Ex. RW1/B, Ex. RW1/C copy
of mandays chart of co-workers and closed the evidence.
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7.
I have heard the Ld. counsel of petitioner and ld. Dy. D.A. representing respondent,
gone through records of the case carefully relevant for disposed of this case.
8.
From the contentions raised, following issues were framed on 29-04-2016 for
determination:
1.
Whether the industrial dispute raised by petitioner vide demand notice dated
19-12-2011 qua his termination of service during November, 1997 by respondent
suffers from the vice of delay and laches as alleged? If so, its effect?
. . OPP
2.
Whether termination of the services of the petitioner by the respondent w.e.f.
November, 1997 is/was illegal and unjustified as alleged?
. . OPP
3.
If issue No. 2 is proved in affirmative, to what service benefits the petitioner is entitled
to?
. . OPR.
4.
Whether the claim petition is not maintainable in the present form as alleged? . . OPR.
Relief
9.
For the reasons detailed here under, my findings on the above issues are as follows:—
Issue No.1
:
Discussed
Issue No. 2
:
Yes
Issue No. 3
:
Discussed
Issue No. 4
:
No
Relief.
:
Petition is partly allowed awarding compensation of Rs.40,000/- per
operative part of award.
REASONS FOR FINDINGS
ISSUES No.1 TO 3
10. All these issues have been taken up together for discussion being interconnected which
can be disposed of simultaneously without repetition of evidence.
11. Relationship of petitioner having been engaged as daily waged beldar by respondent on
muster-roll basis in the year 1993 continuously worked till 2000 with the respondent is not in
dispute. Admittedly, petitioner was engaged without any written order or settlement of terms and
conditions by the respondent. It is equally not in dispute that no written order was passed while
terminating service of the petitioner as claim of respondent remains that it had not retrenched
petitioner from service who had abandoned the job of his own and used to work intermittently as
per his own wish and convenience. However, there is dispute with regard to period for which the
petitioner has worked with respondent. It is evident from mandays chart Ex. RW1/B coupled with
pleadings of respondent that petitioner had worked from 1997 till September 2004 whereas the
claimant/petitioner alleges that he had worked from 1993 to 2004. Since the claim of petitioner is
not substantiated from any corresponding documentary evidence on record, the only inference in
such situation could be drawn is that petitioner had been factually engaged in 1997 and not in 1993.
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Admittedly, the reference of appropriate govt. does not relate to plea of fictional breaks but only
with regard to petitioner's termination from service. In the backdrop of foregoing admitted facts on
record, claim of petitioner requires to be adjudicated with a view to determine if petitioner is
entitled for relief of reinstatement and back wages alongwith seniority and past service benefits and
compensation as claimed by him.
12. Stepping into witness box as PW1 has sworn in affidavit Ex. PW1/A reiterating and
reaffirming his pleadings as stipulated in claim petition. In his affidavit he has claimed to have
worked with the respondent/department for more than 160 days in Pangi Sub Division Chamba
District and remained engaged from 1997 till 2004. He has also stated on oath that no notice under
Section 25-F of the Act was given by the respondent before terminating his service and at the same
time no compensation in lieu thereof notice period was paid to him and thus his termination was
illegal and void entitling petitioner benefit of reinstatement of service with full back wages and all
the other consequential service benefits. The petitioner has further alleged on oath that
respondent/department after terminating his services in 2004 by oral order had engaged several co-
workers who were junior to petitioner were retained in service. Not only this, the persons who were
junior to petitioner are stated to have been regularized in service and thus respondent had not
followed the mandate of Sections 25-G and 25-H of the Act which was obligatory on its part. The
case of petitioner also remains that he had served respondent with due diligence and had spotless
service record as respondent/department had never called any explanation or raised charge-sheet
against him but even while retrenching petitioner from service, no notice was given. The petitioner
has also explained reason for not approaching the authorities under Labour Act and thereafter
before this Tribunal and petitioner had moved before the Labour Officer raising demand notice
consequent upon which a failure report was submitted and as the Labour Commissioner did not
make reference for industrial dispute raised by petitioner, the petitioner had moved before the
Hon'ble High Court by filing CWP where direction was passed for making reference to the Labour
Court due to which delay had occurred and same was satisfactorily explained.
13. In so far as plea of abandonment raised by respondent is concerned, the same merits
rejection in view of the fact that respondent had failed to produce any record by which it could be
established that whenever petitioner absented from his duty as also reflected in mandays chart Ex.
RW1/B any notice or letter was ever issued. On this point respondent as RW1 has specifically
admitted that whenever petitioner abandoned the job, no notice had been issued. RW1 specifically
admitted that no departmental inquiry was initiated against petitioner even after 2004. No reason
whatsoever has been assigned for such any action or omission on the part of respondent in not
initiating any departmental proceedings or making correspondence calling upon the petitioner to
join service. This prima facie belies the stand taken by the respondent as abandonment has to be
proved like any other fact in issue. The petitioner, on the other hand, as PW1 in cross examination
has specifically denied that he used to leave the job in between and attended the work intermittently
rather he has claimed that intermit breaks had been deliberately given to him by the respondent in
the service record of petitioner so that petitioner did not complete 160 days of work as required for
Pangi Tehsil area and also for applicability of Section 25-B of the Act. As such, in absence of any
specific and reliable evidence led by respondent, it would be unsafe to hold that respondent had
established plea of abandonment.
14. A bare glance on the mandays chart Ex. RW1/B would reveal that petitioner had
worked for 36 days in the year 1997, 58 days in 2003 and 102 days in 2004 and thus a total of his
service in 1997 to 2004 in 03 years he had worked for 196 days in his entire service period. Be it
noticed that petitioner had not worked for more than 160 days and as there is no reference from the
Labour Commissioner, Shimla on the point of artificial breaks, this court is to confine its findings
only with regard to alleged illegal termination. It is evident from mandays chart Ex. RW1/B that in
the year 2004 the petitioner had merely worked for 102 days and thus immediately in preceding 12
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calendar months from the month of termination of petitioner had not rendered service of 160 days
so as to meet requirement of law of having continuous service of one year and thus it was not at all
required from respondent to have issued a notice envisaged under Section 25-F of the Act. As such,
the respondent is held to have not violated the provisions of Section 25-F of the Act.
15. Ld. counsel for petitioner has contended with vehemence that large number of workers
who were junior to petitioner had been appointed and these workers have been retained in service
and regularized. The grievance of petitioner remains that principle of ‘‘Last come First go’’ was not
followed as the juniors were retained and services of petitioner despite being senior was terminated
without any valid reason. Ex. RW1/C is the year-wise mandays of daily waged workers who were
junior to the petitioner and had joined in the year 1997 or thereafter. All of these co-workers shown
in Ex. RW1/C the year-wise mandays details of workers of Division HPPWD Killar were certainly
junior to petitioner who were given sufficient work existing in those years more than 200 days in a
year whereas the petitioner had been not given muster roll for the whole month. Ex. RW1/C also
established that all the co-workers shown in this document have worked for more than 160 days in
most of the years although they were junior to petitioner. Evidently, there is no iota of evidence of
respondent establishing that petitioner was called upon to join for service at any time after 2004
even at the time when junior persons were reengaged. That being so the respondent had certainly
violated the provisions of Section 25-G of the Act as the juniors workers mentioned in para No.10
of the affidavit were retained whereas petitioner was senior from these co-workers having joined
service in 1997 was terminated and even thereafter respondent omitted to afford opportunity to
petitioner for reemployment for work which also violates the provisions of Section 25-H of the Act.
Ld. counsel for petitioner has placed reliance upon judgment of Central Bank of India vs. S.
Satyam, 1996 (5) SCC 419 in which Hon'ble Apex Court has held that for the applicability of
Section 25-G and 25-H of the Act, there was no necessity of claimant/petitioner to have worked
for 240 days as in case of provisions of Section 25-F of the Act.
16. Ld. Dy. D.A. representing respondent has made futile attempt to justify engagement
junior worker and their retention in service in pursuance to Awards passed by Labour Court. On the
other hand, Ld. counsel for petitioner relied upon Ex. PW1/C the order dated 27-8-2015 of Hon'ble
High Court of H.P. vide which the orders qua termination passed as against respondent and several
other were quashed. That being so the relief was granted in favour of the petitioner who was
directed to be reinstated with others. As such, even when petitioner is proved to have not worked
for more than 160 days in preceding 10 years which entitled him for regularization of his service
per government policy, yet respondent is not absolved from its accountability for complying the
provisions of Sections 25-G and 25-H of the Act and as such, it is held that respondent had violated
the provisions of Sections 25-G and 25-H of the Industrial Disputes Act.
17. Ld. counsel for petitioner has contended that after petitioner's termination in 2004, he
had remained unemployed and was not earning anything thereafter as such was entitled for full
back wages. Repudiating the arguments of Ld. counel of petitioner, Ld. Dy. D.A. for the State has
taken this court through cross-examination of the petitioner who has admitted that he had cultivable
land with him and also worked a private labourer. Thus, plea of having remained not gainfully
employed gets belied admission of petitioner in cross-examination in which he had maintained that
he had been earning from agricultural land as well as he has been working as daily wager privately.
Reliance has been placed on the judgment of Hon'ble Apex Court North East Karnataka Road
Transport Corporation vs. M. Nagangouda (2007) 10 SCC 765 in which Division Bench
comprising of Justice A.R. Lakshmanan and Justice Altamas Kabir had held that "term gainfully
employment would also include self employment wherefrom income is generated. It was
income either from employment in an establishment or from self employment merely
differentiates the sources from which income is generated, the end use being the same".
Applying the ratio of judgment of 2007 (supra) to this case since the petitioner was earning from
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his agricultural and manual pursuits, the same were sufficient to maintain him and his family. It is
thus held that petitioner was gainfully employed. Be it stated here that Hon'ble Apex Court in
Deepali Gundu Surwase's case has held that the Labour Court was not justified in holding that
merely because the respondent was receiving agriculture income, he cannot be treated to be
engaged in gainful employment. Since the petitioner had income from agriculture pursuits for his
livelihood it cannot be stated that petitioner was not gainfully employed and thus would not be
entitled full back wages. In view of the forgoing discussion, it is held that the relationship of
workman and employer existed between petitioner and respondent and that petitioner was illegally
retrenched without compliance of Section 25-G and Section 25-H of the Act although remained
gainfully employed after his retrenchment. Thus, applying the ratio of judgment of Hon'ble Apex
Court 2007 (supra), it may not be erroneous to hold that petitioner was gainfully employed and
thus would be not entitled for back wages for the period he was out of job on being terminated by
the respondent.
18. Lastly, Ld. Dy. D.A. for State has contended with vehemence that there is inordinate
and explained delay which disentitles petitioner relief claimed for by him. On the other hand, Ld.
counsel for the petitioner has relied upon the judgment of Hon'ble Apex Court titled Raghubir
Singh vs. General Manager, Haryana Roadways, Hissar reported in 2014 Lab IC 4266 (SC)
and the relevant paras of the judgment are produced below for reference:
“12. Therefore, in our considered view, the observations made by this Court in the
Rajasthan State Agriculture Marketing Board case (supra) upon which the learned
Additional Advocate General for the State of Haryana has placed reliance cannot be
applied to the fact situation of the case on hand, for the reason that the Labour Court
has erroneously rejected the reference without judiciously considering all the relevant
factors of the case particularly the points of dispute referred to it and answered the 2nd
issue regarding the reference being barred by limitation but not on the merits of the
case. The said decision has no application to the fact situation and also for the reason
the catena of decisions of this Court referred to supra, wherein this Court has
categorically held that the provisions of Limitation Act under Article 137 has no
application to make reference by the appropriate government to the Labour
Court/Industrial Tribunal for adjudication of existing industrial dispute between
workmen and the employer.
13. In the case on hand, no doubt there is a delay in raising the dispute by the
appellant; the Labour Court nevertheless has the power to mould the relief
accordingly. At the time of adjudication, if the dispute referred to the Labour
Court is not adjudicated by it, it does not mean that the dispute ceases to exist.
The appropriate government in exercise of its statutory power under Section 10(1)(c)
of the Act can refer the industrial dispute, between the parties, at any time, to either the
jurisdictional Labour Court/Industrial Tribunal as interpreted by this Court in the Avon
Services case referred to supra. Therefore, the State Government has rightly exercised
its power under Section 10(1)(c) of the Act and referred the points of dispute to the
Labour Court as the same are in accordance with the law laid down by this Court in
Avon Services & Sapan Kumar Pandit cases referred to supra.
14. Further, the workman cannot be denied to seek relief only on the ground of delay
in raising the dispute as held in the case of S.M. Nilajkar & Ors. vs. Telecom
District Manager, Karnataka[4] it was held by this Court as follows—
“17. It was submitted on behalf of the respondent that on account of delay in raising
the dispute by the appellants the High Court was justified in denying relief to the
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appellants. We cannot agree...... In Ratan Chandra Sammanta and Ors. vs. Union of
India and Ors. (supra)1993 AIR SCW 2214, it was held that a casual labourer
retrenched by the employer deprives himself of remedy available in law by delay itself,
lapse of time results in losing the remedy and the right as well. The delay would
certainly be fatal if it has resulted in material evidence relevant to adjudication being
lost and rendered not available. However, we do not think that the delay in the case at
hand has been so culpable as to disentitle the appellants for any relief.....”(Emphasis
laid by the Court) In view of the legal principles laid down by this Court in the above
judgment, the reference of the industrial dispute made in the case on hand by the State
Government to the Labour Court to adjudicate the existing industrial dispute between
the parties was made within a reasonable time, considering the circumstances in which
the workman was placed, firstly, as there was a criminal case pending against his and
secondly, the respondent had assured the workman that he would be reinstated after his
acquittal from the criminal case. Moreover, it is reasonable to adjudicate the industrial
dispute in spite of the delay in raising and referring the matter, since there is no
mention of any loss or unavailability of material evidence due to the delay. Thus, we
do not consider the delay in raising the industrial dispute and referring the same to the
Labour Court for adjudication as gravely erroneous and it does not debar the workman
from claiming rightful relief from his employer.
15. In the case of Ajaib Singh vs. The Sirhind Co-Operative Marketing -cum- Processing
Service Society Limited & Anr.[5] this Court has opined that relief cannot be denied to
the workman merely on the ground of delay, stating that:—
“10. It follows, therefore, that the provisions of Article 137 of the Schedule to
Limitation Act, 1963 are not applicable to the proceedings under the act and that the
relief under it cannot be denied to the workman merely on the ground of delay. The
plea of delay if raised by the employer is required to be proved as a matter of fact by
showing the real prejudice and not as a merely hypothetical defence. No reference to
the labour court can be generally questioned on the ground of delay alone. Even in a
case where the delay in shown to be existing, the tribunal, labour court or board,
dealing with the case can appropriately mould the relief by declining to grant back
wages to the workman till the date he raised the demand regarding his illegal
retrenchment/ termination or dismissal. The Court may also in appropriate cases direct
the payment of part of the back wages instead of full back wages.....” (Emphasis laid
by the Court).
16. Hence, we are of the opinion, having regard to the fact and circumstances of the case
that there is no delay or latches on the part of the workman from the date of his
acquittal in the criminal case. Thereafter, upon failure of the respondent in adhering to
the assurance given to the workman that he would be reinstated after his acquittal from
the criminal case, the workman approached the conciliation officer and the State
Government to make a reference to the Labour Court for adjudication of the dispute
with regard to the order of dismissal passed by the respondent. Keeping in mind the
date of acquittal of the appellant and the date on which he approached the conciliation
officer by raising the dispute, since the respondent had not adhered to its assurance, the
State Government had rightly referred the dispute for its adjudication. Therefore it
cannot be said that there was a delay on the part of the appellant in raising the dispute
and getting it referred to the Labour Court by the State Government.
17. Further, the Labour Court on an erroneous assumption of law framed the
additional issue regarding the limitation in raising the dispute and its reference
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by the State Government to the Labour Court. Thus, the Labour Court has ignored
the legal principles laid down by this Court in the cases referred to supra. The award
passed by the Labour Court was accepted erroneously by both the learned single Judge
and the Division Bench of the High Court by dismissing the Civil Writ Petition & the
Letters Patent Appeal without examining the case in its proper perspective, keeping in
view the power of the State Government under Section 10(1)(c) and the object and
intendment of the Act. Not adjudicating the existing industrial dispute on merits
between the parties referred to it may lead to disruption of industrial peace and
harmony, which is the foremost important aspect in Industrial Jurisprudence as the
same would affect the public interest at large.
19. Ld. Dy. D.A. representing respondent department has also contended with vehemence
that claim petition is barred by limitation on account of delay and laches. It has been pointed that
termination of petitioner in this case took place on 2004 and the industrial dispute was raised after
several years of retrenchment. Repudiating the argument by Ld. counsel, Ld. AR for the petitioner
has placed reliance upon judgment reported in 2007 LHLJ 903 Hon'ble High Court of H.P.
(Bhatag Ram's case) in which it has been held that delay in raising dispute may be considered by
court at the time of granting final relief however in various other judgments even longer delay has
been condoned. In Divisional Manager, HPFC & another vs. Garibu Ram, Latest HLJ 2007
(HP) 1160, delay of more than 10 years was condoned besides Hon'ble High Court has held that
principle of Limitation Act is not applicable to the industrial dispute. Similar view was taken by
Hon'ble Apex Court in Ajayab Singh vs. Sirhind Co-operative Marketing-cum-Processing
Society Limited and Another, (1999) 6 SCC 82 in which it has been held that the principle of
Limitation Act, 1963 did not apply to the proceeding under the Industrial Disputes Act.
20. Relying upon the aforestated judgment, it has been contended that claim of petitioner
cannot be defeated on the point of delay and laches. Repudiating arguments advanced by Ld.
counsel for petitioner, Ld. Dy. D.A. has placed reliance upon the judgment of Hon'ble Apex Court
titled as Assistant Engineer, Rajasthan State Agriculture Marketing Board, Sub-Division
Kota and Mohan Lal [2013 (139) FLR 125], the relevant para of the judgment are produced
below for reference:
Industrial Disputes Act, 1947-Sections 25-F and 10-Limitation Act, 1963- Section 5-
Industrial dispute-Termination of service-Finding of Labour Court that workman had
completed 240 days in calendar year and her termination was in violation of section 25-F of
the I.D.Act- Workman worked from 1-11-1984 to 17-2-1986 in all 286 days during
employment. Her services terminated on 18-2-1986. Industrial dispute raised after 6 years
of termination. Admitted delay of 6 years not kept in view by the Labour Court- Judicial
discretion exercised by the Labour Court flawed and unsustainable. Reinstatement of the
workman not the appropriate relief. In lieu of reinstatement compensation of Rs.One lac
directed to be paid to the workman by the appellant-employer within six weeks failing
which interest @ 9% p.a. will be payable.
[Paras 21 and 22]
Limitation Act, 1963. Section 5-Industrial Disputes Act, 1947- Section 25-F- Termination
of service- Industrial dispute raised after six years- Limitation Act not applicable to
reference made under the I.D. Act-Delay in raising industrial disputes definitely an
important circumstances which the Labour Court must keep in view before granting
relief”.
21. Repudiating the arguments by Ld. Dy. D.A. for the State, Ld. counsel for
claimant/petitioner has relied upon the judgment of Hon'ble Apex Court in case titled as Tapash
Kumar Paul vs. BSNL & another reported in AIR 2015 SC 357 wherein Hon'ble Court held that
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a Court may pass an order of reinstatement by awarding compensation but the same has to be based
on justifiable grounds. In this judgment, it was held that compensation can be granted in a situation
where the industry is closed or that employees has superannuated or going to retire shortly and no
period is left to his credit or where workman has been rendered in capacitated to discharge duties
cannot be reinstated and/or fourthly when he has lost confidence of the management to discharge
duties. It was observed that there may be appropriate cases on facts which may justify substituting
an order of reinstatement by award of compensation but that has to be supported by some legal
and justifiable reasons indicating why the reinstatement should be followed to be substituted
by award of compensation. Ld. counsel for the petitioner with the aid of above-said judgment had
argued that there are only four situations when a worker may be awarded compensation instead of
reinstatement but the judgment has certainly not been correctly appreciated by Ld. counsel as this
judgment postulates probable four situations which are illustrate in nature where compensation may
be awarded instead of reinstatement but that does not mean that except the four grounds, no other
ground would be appropriate for awarding compensation. In the case in hand before this court, it
has come that petitioner had abandoned the job who did not report for duty for several years and
later gave notice requesting for joining of duties but the conditions in para No. 5 of judgment (2015
supra) even if not met requirement, cannot be a ground to reinstate the petitioner and it is only
compensation which would be appropriate relief. Ld. counsel for the petitioner has relied upon the
judgment of Hon'ble Apex Court titled as Deepali Gundu Surwase vs. Kranti Junior Adhyapak
Mahavidyalaya (D.Ed.) and Ors. reported in AIR 2014 SC (Supp) 121, Raghubir Singh vs.
General Manager, Haryana Roadways, Hissar reported in 2014(3) Apex Court Judgments 652.
I have gone through these judgments and of view that they don't come to rescue the petitioner on
point of reinstatement instead of compensation. Ld. Dy. D.A. for State on the other hand has relied
upon the judgment of Hon'ble Apex Court in Vice Chancellor, Lucknow University, Lucknow,
Uttar Pradesh vs. Akhilesh Kumar Khare & another reported in AIR 2015 SC 3473. It has
been contended that engagement of claimant/petitioner in this case was not through regular mode of
recruitment and applying the ratio of this judgment AIR 2015 SC supra, claim of petitioner for
reinstatement can be negated and thus compensation would be sufficient for redressal of grievance
of the claimant/petitioner. Similarly, in 2016 (1) Him. L.R. 502 titled as State of Himachal
Pradesh and another vs. Chaman Singh relied by Ld. AR for petitioner interpretation of Section
137 of Limitation Act was involved which provides that Article 137 of Limitation Act did not apply
to industrial disputes. In 2014 (3) Apex Court Judgment 652 (SC) similar view was reiterated
which clearly mandates that claimant/petitioner cannot be denied relief sought for merely on the
ground of delay and laches. That being so, the law remains as it was that ground of delay and
laches, claimant/petitioner cannot be denied relief rather the court has to consider various aspects
before moulding relief and the case in hand it would not be erroneous to mention here that the
claimant/petitioner can be reasonably indemnified by ordering compensation and not by
reinstatement. In so far as judgment of AIR 2015 SC 1373 titled as Mackinon Machenize &
Company Ltd. vs. Mackinon Employees Union is concerned, the Hon'ble Apex Court has held
on closure of unit of company principle of "Last come First go" was not followed which violated
Section 25-G of Industrial Disputes Act and retrenchment was held illegal entitling petitioner for
retrenchment compensation. Since the facts of case of Mackinon Machenize's case are different
from case in hand as in former closure of unit of company was involved whereas in case in hand
before this court, there is no closure of company rather it is the department of HPPWD which had
engaged petitioner without following of the procedure although subject to funds and availability of
work but in the case in hand petitioner had abandoned the job who never reported for duty. As
such, when there is no closure of any unit by respondent which the petitioner was engaged,
judgment of Mackinon Machenize cannot be made applicable.
22. After hearing the rival contentions of the parties and case law relied by them, it can be
safely concluded that delay in raising industrial dispute is certainly important aspect/circumstance
which court has to keep in mind while exercising discretion. In para Nos. 20 and 21 of the
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judgment as referred to in this case reported in 2013 (136) FLR 893 (SC) titled as Assistant
Engineer Rajasthan Development Corporation and another vs. Geetam Singh provides that
before exercising its judicial discretion, the Labour Court or Tribunal has to keep in mind all
relevant factors including the mode and manner of appointment, nature of employment, length of
service, the ground on which termination has been set aside and delay in raising industrial dispute
before grant of relief. It was observed by the Hon'ble Apex Court in judgment (2013 supra) before
that workman had worked for 286 days and had raised industrial dispute in 1992 whereas her
services have been terminated in 1986 and she raised industrial dispute after six years. The Hon'ble
Apex Court has held that though compensation awarded by Single Judge of the Hon'ble High Court
was too low and liable to be enhanced by the Division Bench but surely reinstatement of the
workman in the facts and circumstances is not the appropriate relief and thus Hon'ble Apex
Court awarded a lump-sum of Rs.1 lakh alongwith interest @ 9% per annum if the respondent
failed to make payment of compensation within six weeks from the date of judgment. In the case in
hand before this court factors which have weighed are that the petitioner in all remained engaged
for about 03 years and actually worked for 196 days as per mandays chart on record and that the
services of petitioner were disengaged in the year 2004 who worked as non skilled worker and had
raised industrial dispute by issuance of demand notice after about fourteen years i.e. demand
notice was given on 19-12-2011. Taking into consideration factors mentioned above in pursuance
to judgments of Hon'ble Apex Court referred to above, petitioner would not be entitled either for
reinstatement or for back wages but a lump-sum compensation would be appropriate relief in view
of judgment 2013 (139) FLR 25 (SC). The judgments relied upon by Ld. counsel for petitioner on
the matter of delay and laches is more or less settled law that claim of the petitioner could not be
solely declined on the ground of delay and laches. Similarly, judgment of Hon'ble Apex Court in
2014 titled as Raghubir Singh's case also does not come to the rescue of the petitioner as in this
judgment also the Hon'ble Apex Court has reiterated the mandate as given by the Hon'ble Apex
Court in previous judgment in the year 2013 i.e. Assistant Engineer, Rajasthan State
Agriculture Marketing Board, Sub-Division Kota and Mohan Lal's case. I have gone through
these judgments which are not attracted in this present case as this court not declining relief to the
petitioner on the ground of limitation rather on the basis of guidelines of Hon'ble Apex Court laid
down in judgment of 2013 as referred to above. Ld. Dy. D.A. representing State/respondents has
relied upon the judgment of Hon'ble Apex Court reported in AIR 2016 SC 2984 titled as
Prabhakar vs. Joint Director Sericulture Department and another. I have gone through the
judgment which deals reference under Section 10 of the Industrial Disputes Act in which it has
been held that Hon'ble High Court can intervene in writ jurisdiction under Article 226 when
reference has been challenged on the ground of inordinate unexplained delay. Since the reference
made by the Government in this case is not in challenge before this Court, the above said judgment
would not be attracted in the facts and circumstances of the case. Moreso in view of observation
qua facts made in judgment (2016) supra, claimant/petitioner was found to be an educated person
who was working as Clerk whereas in case before this Court, the petitioner is an illiterate unskilled
worker. For the above-said reasons, plea of delay and laches would not eclipse claim of petitioner.
23. In view of foregoing discussion, a lump-sum compensation of Rs.40,000/- (Rupees
forty thousand only) would be an appropriate relief to which the petitioner is entitled in the facts
and circumstances of the case as stated above. It is further made clear that amount of compensation
shall be paid within four months from the date of receipt of Award failing which the petitioner
would be entitled for interest @ 9% per annum from date of Award till its realization. Issues No. 1
to 3 are answered accordingly.
ISSUE No. 4
24. On the plea of non-maintainability of the claim petition under Section 10 of the
Industrial Disputes Act, Ld. Dy. D.A. representing respondent department has failed to allege in
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reply in what manner petition is not maintainable. Thus, vague plea merits rejection outright.
Otherwise also, from pleadings and evidence on record, no inference of claim petition being not
maintainable could be raised against claimant/petitioner. This issue is decided in favour of
petitioner and against the respondent.
RELIEF
25. As sequel to my findings on foregoing issues, the respondent is hereby directed to pay
the compensation of Rs. 40,000/- (Rupees forty thousand only) to the petitioner in lieu of the
reinstatement, back wages, seniority and past service benefits. Amount of compensation so
awarded will be paid by the respondent to the petitioner within four months from the date of receipt
of Award failing which the respondent shall be liable to pay the interest @ 9% per annum on the
said amount from the date of award till the date of its realization. In the peculiar circumstances of
the case, the parties are left to bear their own costs.
26. The reference is answered in the aforesaid terms.
27. A copy of this Award be sent to the appropriate Government for publication in the
official gazette.
28. File, after due completion be consigned to the Record Room. Announced in the open
Court today this 4th day of October, 2017.
Sd/-
(K. K. Sharma)
Presiding Judge,
Labour Court-cum-Industrial Tribunal,
Kangra at Dharamshala, H.P.
__________
IN THE COURT OF SH. K. K. SHARMA, PRESIDING JUDGE, LABOUR COURT-CUM-
INDUSTRIAL TRIBUNAL, KANGRA AT DHARAMSHALA (H.P.)
Ref. No.
:
507/2015
Date of Institution : 09-11-2015
Date of Decision :
04-10-2017
Ms. Sunita Devi d/o Shri Gian Chand, r/o V.P.O. Gosati Karyas, Tehsil Pangi, District
Chamba, H.P.
. . Petitioner.
Versus
The Executive Engineer, Killar Division, I.&P.H./H.P.P.W.D., Killar (Pangi) District
Chamba, H.P.
. . Respondent.
Reference under Section 10 (1) of the Industrial Disputes Act, 1947.
For the Petitioner : Sh. Rajeev Dharmani, Adv.
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For the Respondent : Sh. Sanjeev Singh Rana, Dy. D.A.
AWARD
The reference given below has been received from the appropriate Government for
adjudication:
“Whether the industrial dispute raised by the worker Ms. Sunita Devi d/o Shri Gina Chand,
r/o V.P.O. Gosati Karyas, Tehsil Pangi, District Chamba, H.P. before the Executive
Engineer, Killar Division, I.&P.H./H.P.P.W.D., Killar (Pangi), District Chamba, H.P. vide
demand notice dated 23-12-2011 regarding her alleged illegal termination during October,
2001 suffers from delay and latches? If not, Whether termination of services of Ms. Sunita
Devi d/o Shri Gina Chand, r/o V.P.O. Gosati Karyas, Tehsil Pangi, District Chamba, H.P.
by the Executive Engineer, Killar Division, I.&P.H./H.P.P.W.D., Killar (Pangi), District
Chamba, H.P. during October 2001, without complying the provisions of the Industrial
Disputes Act, 1947, is legal and justified? If not, what amount of back wages, seniority, past
service benefits and compensation the above aggrieve workman is entitled to from the
above employer?”
2.
On receipt of reference from appropriate government, notices were issued to the parties
in pursuance to which claimant/petitioner has filed statement of claim.
3.
Brief facts as enumerated in the present claim petition by the petitioner above named
revealed that she had been initially engaged as daily wage beldar on muster roll basis in the year
1990 who continuously worked till 2004 with the respondent. Averments made in the petition
further revealed that petitioner had worked for 160 days in each calendar year as per the criteria
prescribed for tribal area of Pangi Tehsil, District Chamba and became eligible for continuous
service envisaged under statutory provisions of Section 25-B of the Industrial Disputes Act, 1947
(hereinafter referred to as 'the Act' for brevity). Averments made in the petition revealed that the
services of petitioner had been interrupted by way of intermittent/artificial breaks given by the
respondent/department deliberately and as such breaks are required to be counted as "continuous
services" for the purposes of calculation of 160 days for the applicability of Section 25-B of the
Act. The grievance of petitioner remains that respondent/department had terminated/disengaged
petitioner from daily wage service orally without issuing one month's notice in writing stipulating
therein reason for retrenchment besides no retrenchment compensation was paid to petitioner when
respondent had been illegally terminated. It is also alleged that respondent had not followed the
provisions of Section 25-F of the Act while disengaging petitioner from service. It is stated that
petitioner is very poor who has no source of income besides after termination of the services of
petitioner, petitioner had approached the respondent time and again but of no avail. The grievance
of petitioner further remains that when the services of petitioner had been terminated,
respondent/department had reengaged number of new workman from time to time and while doing
so, respondent had not followed the principle of "Last come, First go" envisaged under Section
25-G of the Act. It is further alleged that respondent/department had continuously retained junior to
petitioner who are still in service namely Suraj Ram who appointed in 1997, Chunku Ram in 2000,
Budhi Ram in 2003 and Dev Raj in 2007. The claimant/petitioner claimed that she had spotless
service record who never been charge-sheeted for any act of indiscipline or negligence or her
conduct and even at the time of verbal termination, no charge-sheet had been served upon her and
the at the same time, no opportunity of hearing had been afforded to him. The petitioner also
alleges that she has remained unemployed ever since her illegal termination from year of 2004 till
the date of institution of present claim petition who had been nowhere gainfully employed and was
thus entitled for full back wages. Accordingly alleging respondent to have committed violation of
statutory provision of Section 25-F, Section 25-G and Section 25-H of the Industrial Disputes Act,
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1947 and thus petitioner prays for setting aside oral order of termination/retrenchment of
respondent in the year 2004. She further prayed for reinstatement in service w.e.f. year 2004 along-
with back wages, seniority including continuity in service as petitioner as she had remained
unemployed since the date of her illegal termination. The petitioner has also prayed that period of
intermittent/fictional breaks deliberately given time and again during entire service of petitioner
between 1990 to 2004 be counted 160 days continuous service and regularization of the services of
petitioner w.e.f. 1-1-1999 under 10 years regularization policy and to any other relief petitioner is
entitled.
4.
The respondent contested claim petition, filed reply inter-alia taken preliminary
objections of maintainability, claim petition being bad on account of delay and laches. On merits
denied that petitioner had worked for more than 160 days in each calendar year rather clarified by
stating that petitioner was engaged as daily waged beldar in 1997 who remained engaged till 2001
but had worked intermittently as petitioner used to come and attend the work at her own sweet will
and convenience. Relying upon the mandays chart, it has been categorically pleaded by the
respondent that petitioner had not completed 160 days in each calendar year as required for tribal
area of Pangi Tehsil. The allegations of fictional breaks given by respondent to the petitioner have
been specifically denied. In so far as engagement of persons junior to petitioner mentioned in para
No. 10 of the claim petition were appointed as per order of Labour Court and no other juniors to the
petitioner had been retained in service by the respondent. On the plea of termination of service of
petitioner, respondent specifically alleges that petitioner had left the job at her own will therefore
serving of notice or pay in lieu thereof was not required. Reiterating its stand respondent has
maintained that petitioner had left the work of her own sweet will and the persons mentioned in
para No.10 are stated to have engaged as per direction of the Labour Court-cum-Industrial Tribunal
Dharamshala and respondent had not violated the principle of "Last come, First go". It is also
contended that if petitioner had been terminated in 2001 she would have definitely raised industrial
dispute immediately and that after thirteen years petitioner is stated to be agitating the matter which
is bad on account of delay and laches. It is also contended that since the services of petitioner had
not been terminated by the respondent, question of issuance of notice or wages in lieu thereof did
not arise and at the same time, there was no necessity for charge-sheet or issuing any notice of
petitioner after her termination. It is contended that petitioner was agriculturist and gainfully
employed and was thus not entitled for back wages.
5.
The petitioner filed rejoinder, reiterated her stand as maintained in the claim petition.
Further asserted that provisions of Limitation Act did not eclipse the claim of petitioner in totality
besides allegation of violation of principle of "Last come First go" was specifically denied.
6.
In order to prove her case, petitioner had examined herself as PW1 tendered/proved her
affidavit Ex. PW1/A under Order 18 Rule 4 CPC, Ex. PW1/B copy of demand notice, Ex. PW1/C
copy of order dated 27-8-2015 and closed evidence. On the other hand, repudiating the evidence
led by the petitioner, respondent examined RW1 Shri D.R. Chauhan, the then Executive Engineer,
HPPWD Division Killar as RW1 tendered/proved mandays chart of petitioner Ex. RW1/B, Ex.
RW1/C copy of mandays chart of co-workers and closed the evidence.
7.
I have heard the Ld. counsel of petitioner and Ld. Dy. D.A. representing respondent,
gone through records of the case carefully relevant for disposed of this case.
8.
From the contentions raised, following issues were framed on 29-04-2016 for
determination:
1.
Whether the industrial dispute raised by petitioner vide demand notice dated
23-12-2011 qua her termination of service during October 2001 by respondent suffers
from the vice of delay and laches as alleged? If so, its effect?
. . OPP.
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2.
Whether termination of the services of the petitioner by the respondent during October
2001 is/was illegal and unjustified as alleged?
. . OPP.
3.
If issue No. 2 is proved in affirmative, to what service benefits the petitioner is entitled
to?
. . OPP.
4.
Whether the claim petition is not maintainable in the present form as alleged? . . OPR
Relief
9.
For the reasons detailed here under, my findings on the above issues are as follows:—
Issue No.1
:
Discussed
Issue No.2
:
Yes
Issue No.3
:
Discussed
Issue No.4
:
No
Relief.
:
Petition is partly allowed awarding compensation of Rs.75,000/- per
operative part of award.
REASONS FOR FINDINGS
Issues No. 1 to 3 :
10. All these issues have been taken up together for discussion being interconnected which
can be disposed of simultaneously without repetition of evidence.
11. Relationship of petitioner having been engaged as daily waged beldar by respondent on
muster roll basis in the year 1990 continuously worked till October 2001 with the respondent.
Admittedly, petitioner was engaged without any written order or settlement of terms and conditions
by the respondent. It is equally not in dispute that no written order was passed while terminating
service of the petitioner as claim of respondent remains that it had not retrenched petitioner from
service who had abandoned the job of her own and used to work intermittently as per her own wish
and convenience. However, there is dispute with regard to period for which the petitioner has
worked with respondent. It is evident from mandays chart Ex. RW1/B coupled with pleadings of
respondent that petitioner had worked from 1997 till October 2001 whereas the claimant/petitioner
alleges that he had worked from 1990 to 2004. Since the claim of petitioner is not substantiated
from any corresponding documentary evidence on record, the only inference in such situation could
be drawn is that petitioner had been factually engaged from 1997 till October 2001 and not from
1990 upto 2004. Admittedly, the reference of appropriate govt. does not relate to plea of fictional
breaks but only with regard to petitioner's termination from service. In the backdrop of foregoing
admitted facts on record, claim of petitioner requires to be adjudicated with a view to determine if
petitioner is entitled for relief of reinstatement and back wages alongwith seniority and past service
benefits and compensation as claimed by him.
12. Stepping into witness box as PW1 has sworn in affidavit Ex. PW1/A reiterating and
reaffirming her pleadings as stipulated in claim petition. In her affidavit she has claimed to have
worked with the respondent/department for more than 160 days in Pangi Sub Division Chamba
District and remained engaged from 1997 to October 2001. She has also stated on oath that no
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notice under Section 25-F of the Act was given by the respondent before terminating her service
and at the same time no compensation in lieu thereof notice period was paid to her and thus her
termination was illegal and void entitling petitioner benefit of reinstatement of service with full
back wages and all the other consequential service benefits. The petitioner has further alleged on
oath that respondent/department after terminating her services in October 2001 by oral order had
engaged several co-workers who were junior to petitioner were retained in service. Not only this,
the persons who were junior to petitioner are stated to have been regularized in service and thus
respondent had not followed the mandate of Sections 25-G and 25-H of the Act which was
obligatory on its part. The case of petitioner also remains that she had served respondent with due
diligence and had spotless service record as respondent/department had never called any
explanation or raised charge-sheet against her but even while retrenching petitioner from service,
no notice was given. The petitioner has also explained reason for not approaching the authorities
under Labour Act and thereafter before this Tribunal, as there existed no road between Chamba
town to Pangi Tehsil till 2011 and petitioner had moved before the Labour Officer raising demand
notice consequent upon which a failure report was submitted and as the Labour Commissioner did
not make reference for industrial dispute raised by petitioner, the petitioner had moved before the
Hon'ble High Court by filing CWP where direction was passed for making reference to the Labour
Court due to which delay had occurred and same was satisfactorily explained.
13. In so far as plea of abandonment raised by respondent is concerned, the same merits
rejection in view of the fact that respondent had failed to produce any record by which it could be
established that whenever petitioner absented from her duty as also reflected in mandays chart Ex.
RW1/B any notice or letter was ever issued. On this point respondent as RW1 has specifically
admitted that whenever petitioner abandoned the job, no notice had been issued. RW1 specifically
admitted that no departmental inquiry was initiated against petitioner even after October 2001. No
reason whatsoever has been assigned for such any action or omission on the part of respondent in
not initiating any departmental proceedings or making correspondence calling upon the petitioner
to join service. This prima facie belies the stand taken by the respondent as abandonment has to be
proved like any other fact in issue. The petitioner, on the other hand, as PW1 in cross-examination
has specifically denied that she used to leave the job in between and attended the work
intermittently rather she has claimed that intermit breaks had been deliberately given to her by the
respondent in the service record of petitioner so that petitioner did not complete 160 days of work
as required for Pangi Tehsil area and also for applicability of Section 25-B of the Act. As such, in
absence of any specific and reliable evidence led by respondent, it would be unsafe to hold that
respondent had established plea of abandonment.
14. A bare glance on the mandays chart Ex. RW1/B would reveal that petitioner had
worked for 200 ½ days in the year 1997, 104 days in 1998, 140 days in 1999, 142 days in 2000 and
95 ½ days in 2001 and thus a total of her service in 1997 to 2001 in 05 years she had worked for
682 days in her entire service period. Be it noticed that except the years 1998 to 2001 petitioner had
worked for more than 160 days and as there is no reference from the Labour Commissioner, Shimla
on the point of artificial breaks, this court is to confine its findings only with regard to alleged
illegal termination. It is evident from mandays chart Ex. RW1/B that in the year 2001 the petitioner
had merely worked for 95½ days and thus immediately in preceding 12 calendar months from the
month of termination of petitioner had not rendered service of 160 days so as to meet requirement
of law of having continuous service of one year and thus it was not at all required from respondent
to have issued a notice envisaged under Section 25-F of the Act. As such, the respondent is held to
have not violated the provisions of Section 25-F of the Act.
15. Ld. counsel for petitioner has contended with vehemence that large number of workers
who were junior to petitioner had been appointed and these workers have been retained in service
and regularized. The grievance of petitioner remains that principle of "Last come First go" was not
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followed as the juniors were retained and services of petitioner despite being senior was terminated
without any valid reason. Ex. RW1/C is the year-wise mandays of daily waged workers who were
junior to the petitioner and had joined in the year 1997 or thereafter. All of these co-workers shown
in Ex. RW1/C the year-wise mandays details of workers of Division HPPWD Killar were certainly
junior to petitioner who were given sufficient work existing in those years more than 200 days in a
year whereas the petitioner had been not given muster roll for the whole month. Ex. RW1/C also
established that all the co-workers shown in this document have worked for more than 160 days in
most of the years although they were junior to petitioner. Evidently, there is no iota of evidence of
respondent establishing that petitioner was called upon to join for service at any time after October
2001 even at the time when junior persons were reengaged. That being so the respondent had
certainly violated the provisions of Section 25-G of the Act as the juniors workers mentioned in
para No.10 of the affidavit were retained whereas petitioner was senior from these co-workers
having joined service in 1997 was terminated and even thereafter respondent omitted to afford
opportunity to petitioner for reemployment for work which also violates the provisions of Section
25-H of the Act. Ld. counsel for petitioner has placed reliance upon judgment of Central Bank of
India vs. S. Satyam, 1996 (5) SCC 419 in which Hon'ble Apex Court has held that for the
applicability of Section 25-G and 25-H of the Act, there was no necessity of claimant/petitioner
to have worked for 240 days as in case of provisions of Section 25-F of the Act.
16. Ld. Dy. D.A. representing respondent has made futile attempt to justify engagement
junior worker and their retention in service in pursuance to Awards passed by Labour Court. On the
other hand, Ld. counsel for petitioner relied upon Ex. PW1/C the order dated 27-8-2015 of Hon'ble
High Court of H.P. vide which the orders qua termination passed as against respondent and several
other were quashed. That being so the relief was granted in favour of the petitioner who was
directed to be reinstated with others. As such, even when petitioner is proved to have not worked
for more than 160 days in preceding 10 years which entitled him for regularization of his service
per government policy, yet respondent is not absolved from its accountability for complying the
provisions of Sections 25-G and 25-H of the Act and as such, it is held that respondent had violated
the provisions of Sections 25-G and 25-H of the Industrial Disputes Act.
17. Ld. counsel for petitioner has contended that after petitioner's termination in October
2001, she had remained unemployed and was not earning anything thereafter as such was entitled
for full back wages. Repudiating the arguments of Ld. counsel of petitioner, Ld. Dy. D.A. for the
State has taken this court through cross-examination of the petitioner who has admitted that she had
cultivatable land with her and also worked a private labourer. Thus, plea of having remained not
gainfully employed gets belied admission of petitioner in cross-examination in which she had
maintained that she had been earning from agricultural land as well as she has been working as
daily wager privately. Reliance has been placed on the judgment of Hon'ble Apex Court North
East Karnataka Road Transport Corporation vs. M. Nagangouda (2007) 10 SCC 765 in which
Division Bench comprising of Justice A.R. Lakshmanan and Justice Altamas Kabir had held that
"term gainfully employment would also include self employment wherefrom income is
generated. It was income either from employment in an establishment or from self
employment merely differentiates the sources from which income is generated, the end use
being the same". Applying the ratio of judgment of 2007 (supra) to this case since the petitioner
was earning from her agricultural and manual pursuits, the same were sufficient to maintain her and
her family. It is thus held that petitioner was gainfully employed. Be it stated here that Hon'ble
Apex Court in Deepali Gundu Surwase's case has held that the Labour Court was not justified in
holding that merely because the respondent was receiving agriculture income, she cannot be treated
to be engaged in gainful employment. Since the petitioner had income from agriculture pursuits for
her livelihood it cannot be stated that petitioner was not gainfully employed and thus would not be
entitled full back wages. In view of the forgoing discussion, it is held that the relationship of
workman and employer existed between petitioner and respondent and that petitioner was illegally
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retrenched without compliance of Section 25-G and Section 25-H of the Act although remained
gainfully employed after her retrenchment. Thus, applying the ratio of judgment of Hon'ble Apex
Court (2007 supra), it may not be erroneous to hold that petitioner was gainfully employed and
thus would be not entitled for back wages for the period she was out of job on being terminated by
the respondent.
18. Lastly, Ld. Dy. D.A. for State has contended with vehemence that there is inordinate
and explained delay which disentitles petitioner relief claimed for by him. On the other hand, Ld.
counsel for the petitioner has relied upon the judgment of Hon'ble Apex Court titled Raghubir
Singh vs. General Manager, Haryana Roadways, Hissar reported in 2014 Lab IC 4266 (SC)
and the relevant paras of the judgment are produced below for reference:
“12. Therefore, in our considered view, the observations made by this Court in the
Rajasthan State Agriculture Marketing Board case (supra) upon which the learned
Additional Advocate General for the State of Haryana has placed reliance cannot be
applied to the fact situation of the case on hand, for the reason that the Labour Court
has erroneously rejected the reference without judiciously considering all the relevant
factors of the case particularly the points of dispute referred to it and answered the 2nd
issue regarding the reference being barred by limitation but not on the merits of the
case. The said decision has no application to the fact situation and also for the reason
the catena of decisions of this Court referred to supra, wherein this Court has
categorically held that the provisions of Limitation Act under Article 137 has no
application to make reference by the appropriate government to the Labour
Court/Industrial Tribunal for adjudication of existing industrial dispute between
workmen and the employer.
13. In the case on hand, no doubt there is a delay in raising the dispute by the
appellant; the Labour Court nevertheless has the power to mould the relief
accordingly. At the time of adjudication, if the dispute referred to the Labour
Court is not adjudicated by it, it does not mean that the dispute ceases to exist.
The appropriate government in exercise of its statutory power under Section 10(1)(c)
of the Act can refer the industrial dispute, between the parties, at any time, to either the
jurisdictional Labour Court/Industrial Tribunal as interpreted by this Court in the Avon
Services case referred to supra. Therefore, the State Government has rightly exercised
its power under Section 10(1)(c) of the Act and referred the points of dispute to the
Labour Court as the same are in accordance with the law laid down by this Court in
Avon Services & Sapan Kumar Pandit cases referred to supra.
14. Further, the workman cannot be denied to seek relief only on the ground of delay
in raising the dispute as held in the case of S.M. Nilajkar & Ors. vs. Telecom
District Manager, Karnataka[4] it was held by this Court as follows-
“17. It was submitted on behalf of the respondent that on account of delay in raising
the dispute by the appellants the High Court was justified in denying relief to the
appellants. We cannot agree...... In Ratan Chandra Sammanta and Ors. vs. Union of
India and Ors. (supra)1993 AIR SCW 2214, it was held that a casual labourer
retrenched by the employer deprives herself of remedy available in law by delay itself,
lapse of time results in losing the remedy and the right as well. The delay would
certainly be fatal if it has resulted in material evidence relevant to adjudication being
lost and rendered not available. However, we do not think that the delay in the case at
hand has been so culpable as to disentitle the appellants for any relief.....” (Emphasis
laid by the Court) In view of the legal principles laid down by this Court in the above
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judgment, the reference of the industrial dispute made in the case on hand by the State
Government to the Labour Court to adjudicate the existing industrial dispute between
the parties was made within a reasonable time, considering the circumstances in which
the workman was placed, firstly, as there was a criminal case pending against her and
secondly, the respondent had assured the workman that she would be reinstated after
her acquittal from the criminal case. Moreover, it is reasonable to adjudicate the
industrial dispute in spite of the delay in raising and referring the matter, since there is
no mention of any loss or unavailability of material evidence due to the delay. Thus,
we do not consider the delay in raising the industrial dispute and referring the same to
the Labour Court for adjudication as gravely erroneous and it does not debar the
workman from claiming rightful relief from her employer.
15. In the case of Ajaib Singh vs. The Sirhind Co-Operative Marketing-cum-Processing
Service Society Limited & Anr.[5] this Court has opined that relief cannot be denied to
the workman merely on the ground of delay, stating that:—
“10. It follows, therefore, that the provisions of Article 137 of the Schedule to
Limitation Act, 1963 are not applicable to the proceedings under the act and that the
relief under it cannot be denied to the workman merely on the ground of delay. The
plea of delay if raised by the employer is required to be proved as a matter of fact by
showing the real prejudice and not as a merely hypothetical defence. No reference to
the labour court can be generally questioned on the ground of delay alone. Even in a
case where the delay in shown to be existing, the tribunal, labour court or board,
dealing with the case can appropriately mould the relief by declining to grant back
wages to the workman till the date she raised the demand regarding her illegal
retrenchment/ termination or dismissal. The Court may also in appropriate cases direct
the payment of part of the back wages instead of full back wages.....” (Emphasis laid
by the Court).
16. Hence, we are of the opinion, having regard to the fact and circumstances of the
case that there is no delay or latches on the part of the workman from the date of
her acquittal in the criminal case. Thereafter, upon failure of the respondent in
adhering to the assurance given to the workman that she would be reinstated after
her acquittal from the criminal case, the workman approached the conciliation
officer and the State Government to make a reference to the Labour Court for
adjudication of the dispute with regard to the order of dismissal passed by the
respondent. Keeping in mind the date of acquittal of the appellant and the date on
which she approached the conciliation officer by raising the dispute, since the
respondent had not adhered to its assurance, the State Government had rightly
referred the dispute for its adjudication. Therefore it cannot be said that there was
a delay on the part of the appellant in raising the dispute and getting it referred to
the Labour Court by the State Government.
17. Further, the Labour Court on an erroneous assumption of law framed the
additional issue regarding the limitation in raising the dispute and its
reference by the State Government to the Labour Court. Thus, the Labour
Court has ignored the legal principles laid down by this Court in the cases referred
to supra. The award passed by the Labour Court was accepted erroneously by
both the learned single Judge and the Division Bench of the High Court by
dismissing the Civil Writ Petition & the Letters Patent Appeal without examining
the case in its proper perspective, keeping in view the power of the State
Government under Section 10(1)(c) and the object and intendment of the Act. Not
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adjudicating the existing industrial dispute on merits between the parties referred
to it may lead to disruption of industrial peace and harmony, which is the
foremost important aspect in Industrial Jurisprudence as the same would affect the
public interest at large.
19. Ld. Dy. D.A. representing respondent department has also contended with vehemence
that claim petition is barred by limitation on account of delay and laches. It has been pointed that
termination of petitioner in this case took place on 2001 and the industrial dispute was raised after
several years of retrenchment. Repudiating the argument by Ld. counsel, Ld. AR for the petitioner
has placed reliance upon judgment reported in 2007 LHLJ 903 Hon'ble High Court of H.P.
(Bhatag Ram's case) in which it has been held that delay in raising dispute may be considered by
court at the time of granting final relief however in various other judgments even longer delay has
been condoned. In Divisional Manager, HPFC & another vs. Garibu Ram, Latest HLJ 2007
(H.P.) 1160, delay of more than 10 years was condoned besides Hon'ble High Court has held that
principle of Limitation Act is not applicable to the industrial dispute. Similar view was taken by
Hon'ble Apex Court in Ajayab Singh vs. Sirhind Co-operative Marketing-cum-Processing
Society Limited and Another, (1999) 6 SCC 82 in which it has been held that the principle of
Limitation Act, 1963 did not apply to the proceeding under the Industrial Disputes Act.
20. Relying upon the aforestated judgment, it has been contended that claim of petitioner
cannot be defeated on the point of delay and laches. Repudiating arguments advanced by Ld.
counsel for petitioner, Ld. Dy. D.A. has placed reliance upon the judgment of Hon'ble Apex Court
titled as Assistant Engineer, Rajasthan State Agriculture Marketing Board, Sub-Division
Kota and Mohan Lal [2013 (139) FLR 125], the relevant para of the judgment are produced
below for reference:
Industrial Disputes Act, 1947-Sections 25-F and 10- Limitation Act, 1963- Section 5-
Industrial dispute-Termination of service-Finding of Labour Court that workman had
completed 240 days in calendar year and her termination was in violation of section 25-F of
the I.D.Act- Workman worked from 1-11-1984 to 17-2-1986 in all 286 days during
employment. Her services terminated on 18-2-1986. Industrial dispute raised after 6 years
of termination. Admitted delay of 6 years not kept in view by the Labour Court- Judicial
discretion exercised by the Labour Court flawed and unsustainable. Reinstatement of the
workman not the appropriate relief. In lieu of reinstatement compensation of Rs. One lac
directed to be paid to the workman by the appellant-employer within six weeks failing
which interest @ 9% p.a. will be payable.
[Paras 21 and 22]
Limitation Act, 1963. Section 5- Industrial Disputes Act, 1947- Section 25-F- Termination
of service- Industrial dispute raised after six years- Limitation Act not applicable to
reference made under the I.D. Act-Delay in raising industrial disputes definitely an
important circumstances which the Labour Court must keep in view before granting
relief”.
21. Repudiating the arguments by Ld. Dy. D.A. for the State, Ld. counsel for claimant/
petitioner has relied upon the judgment of Hon'ble Apex Court in case titled as Tapash Kumar
Paul vs. BSNL & another reported in AIR 2015 SC 357 wherein Hon'ble Court held that a Court
may pass an order of reinstatement by awarding compensation but the same has to be based on
justifiable grounds. In this judgment, it was held that compensation can be granted in a situation
where the industry is closed or that employees has superannuated or going to retire shortly and no
period is left to her credit or where workman has been rendered in capacitated to discharge duties
cannot be reinstated and/or fourthly when she has lost confidence of the management to discharge
duties. It was observed that there may be appropriate cases on facts which may justify substituting
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an order of reinstatement by award of compensation but that has to be supported by some legal
and justifiable reasons indicating why the reinstatement should be followed to be substituted
by award of compensation. Ld. counsel for the petitioner with the aid of above-said judgment had
argued that there are only four situations when a worker may be awarded compensation instead of
reinstatement but the judgment has certainly not been correctly appreciated by Ld. counsel as this
judgment postulates probable four situations which are illustrate in nature where compensation may
be awarded instead of reinstatement but that does not mean that except the four grounds, no other
ground would be appropriate for awarding compensation. In the case in hand before this court, it
has come that petitioner had abandoned the job who did not report for duty for several years and
later gave notice requesting for joining of duties but the conditions in para No.5 of judgment (2015
supra) even if not met requirement, cannot be a ground to reinstate the petitioner and it is only
compensation which would be appropriate relief. Ld. counsel for the petitioner has relied upon the
judgment of Hon'ble Apex Court titled as Deepali Gundu Surwase vs. Kranti Junior Adhyapak
Mahavidyalaya (D.Ed.) and Ors. reported in AIR 2014 SC (Supp) 121, Raghubir Singh vs.
General Manager, Haryana Roadways, Hissar reported in 2014(3) Apex Court Judgments 652.
I have gone through these judgments and of view that they don't come to rescue the petitioner on
point of reinstatement instead of compensation. Ld. Dy. D.A. for State on the other hand has relied
upon the judgment of Hon'ble Apex Court in Vice Chancellor, Lucknow University, Lucknow,
Uttar Pradesh vs. Akhilesh Kumar Khare & another reported in AIR 2015 SC 3473. It has
been contended that engagement of claimant/petitioner in this case was not through regular mode of
recruitment and applying the ratio of this judgment AIR 2015 SC supra, claim of petitioner for
reinstatement can be negated and thus compensation would be sufficient for redressal of grievance
of the claimant/petitioner. Similarly, in 2016 (1) Him. L.R. 502 titled as State of Himachal
Pradesh and another vs. Chaman Singh relied by Ld. AR for petitioner interpretation of Section
137 of Limitation Act was involved which provides that Article 137 of Limitation Act did not apply
to industrial disputes. In 2014 (3) Apex Court Judgment 652 (SC) similar view was reiterated
which clearly mandates that claimant/petitioner cannot be denied relief sought for merely on the
ground of delay and laches. That being so, the law remains as it was that ground of delay and
laches, claimant/petitioner cannot be denied relief rather the court has to consider various aspects
before moulding relief and the case in hand it would not be erroneous to mention here that the
claimant/petitioner can be reasonably indemnified by ordering compensation and not by
reinstatement. In so far as judgment of AIR 2015 SC 1373 titled as Mackinon Machenize &
Company Ltd. vs. Mackinon Employees Union is concerned, the Hon'ble Apex Court has held
on closure of unit of company principle of "Last come First go" was not followed which violated
Section 25-G of Industrial Disputes Act and retrenchment was held illegal entitling petitioner for
retrenchment compensation. Since the facts of case of Mackinon Machenize's case are different
from case in hand as in former closure of unit of company was involved whereas in case in hand
before this court, there is no closure of company rather it is the department of HPPWD which had
engaged petitioner without following of the procedure although subject to funds and availability of
work. As such, when there is no closure of any unit by respondent which the petitioner was
engaged, judgment of Mackinon Machenize cannot be made applicable.
22. After hearing the rival contentions of the parties and case law relied by them, it can be
safely concluded that delay in raising industrial dispute is certainly important aspect/circumstance
which court has to keep in mind while exercising discretion. In para Nos. 20 and 21 of the
judgment as referred to in this case reported in 2013 (136) FLR 893 (SC) titled as Assistant
Engineer Rajasthan Development Corporation and another vs. Geetam Singh provides that
before exercising its judicial discretion, the Labour Court or Tribunal has to keep in mind all
relevant factors including the mode and manner of appointment, nature of employment, length of
service, the ground on which termination has been set aside and delay in raising industrial dispute
before grant of relief. It was observed by the Hon'ble Apex Court in judgment (2013 supra) before
that workman had worked for 286 days and had raised industrial dispute in 1992 whereas her
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services have been terminated in 1986 and she raised industrial dispute after six years. The Hon'ble
Apex Court has held that though compensation awarded by Single Judge of the Hon'ble High Court
was too low and liable to be enhanced by the Division Bench but surely reinstatement of the
workman in the facts and circumstances is not the appropriate relief and thus Hon'ble Apex
Court awarded a lump-sum of Rs.1 lakh alongwith interest @ 9% per annum if the respondent
failed to make payment of compensation within six weeks from the date of judgment. In the case in
hand before this court factors which have weighed are that the petitioner in all remained engaged
for about 05 years and actually worked for 682 days as per mandays chart on record and that the
services of petitioner were disengaged in October 2001 who worked as non skilled worker and had
raised industrial dispute by issuance of demand notice after about ten years i.e. demand notice was
given on 23-12-2011. Taking into consideration factors mentioned above in pursuance to
judgments of Hon'ble Apex Court referred to above, petitioner would not be entitled either for
reinstatement or for back wages but a lump-sum compensation would be appropriate relief in view
of judgment 2013 (139) FLR 25 (SC). The judgments relied upon by Ld. counsel for petitioner on
the matter of delay and laches is more or less settled law that claim of the petitioner could not be
solely declined on the ground of delay and laches. Similarly, judgment of Hon'ble Apex Court in
2014 titled as Raghubir Singh's case also does not come to the rescue of the petitioner as in this
judgment also the Hon'ble Apex Court has reiterated the mandate as given by the Hon'ble Apex
Court in previous judgment in the year 2013 i.e. Assistant Engineer, Rajasthan State
Agriculture Marketing Board, Sub-Division Kota and Mohan Lal's case. I have gone through
these judgments which are not attracted in this present case as this court not declining relief to the
petitioner on the ground of limitation rather on the basis of guidelines of Hon'ble Apex Court laid
down in judgment of 2013 as referred to above. Ld. Dy. D.A. representing State/respondents has
relied upon the judgment of Hon'ble Apex Court reported in AIR 2016 SC 2984 titled as
Prabhakar vs. Joint Director Sericulture Department and another. I have gone through the
judgment which deals reference under Section 10 of the Industrial Disputes Act in which it has
been held that Hon'ble High Court can intervene in writ jurisdiction under Article 226 when
reference has been challenged on the ground of inordinate unexplained delay. Since the reference
made by the Government in this case is not in challenge before this Court, the above said judgment
would not be attracted in the facts and circumstances of the case. Moreso in view of observation
qua facts made in judgment (2016) supra, claimant/petitioner was found to be an educated person
who was working as Clerk whereas in case before this Court, the petitioner is an illiterate unskilled
worker. For the above-said reasons, plea of delay and laches would not eclipse claim of petitioner.
23. In view of foregoing discussion, a lump-sum compensation of Rs.75,000/- (Rupees
seventy five thousand only) would be an appropriate relief to which the petitioner is entitled in the
facts and circumstances of the case as stated above. It is further made clear that amount of
compensation shall be paid within four months from the date of receipt of Award failing which the
petitioner would be entitled for interest @ 9% per annum from date of Award till its realization.
Issues No. 1 to 3 are answered accordingly.
ISSUE No. 4
24. On the plea of non-maintainability of the claim petition under Section 10 of the
Industrial Disputes Act, Ld. Dy. D.A. representing respondent department has failed to allege in
reply in what manner petition is not maintainable. Thus, vague plea merits rejection outright.
Otherwise also, from pleadings and evidence on record, no inference of claim petition being not
maintainable could be raised against claimant/petitioner. This issue is decided in favour of
petitioner and against the respondent.
RELIEF
25. As sequel to my findings on foregoing issues, the respondent is hereby directed to pay
the compensation of Rs.75,000/- (Rupees seventy five thousand only) to the petitioner in lieu of the
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reinstatement, back wages, seniority and past service benefits. Amount of compensation so
awarded will be paid by the respondent to the petitioner within four months from the date of receipt
of Award failing which the respondent shall be liable to pay the interest @ 9% per annum on the
said amount from the date of award till the date of its realization. In the peculiar circumstances of
the case, the parties are left to bear their own costs.
26. The reference is answered in the aforesaid terms.
27. A copy of this Award be sent to the appropriate Government for publication in the
official gazette.
28. File, after due completion be consigned to the Record Room. Announced in the open
Court today this 4th day of October, 2017.
Sd/-
(K. K. Sharma),
Presiding Judge,
Labour Court-cum-Industrial Tribunal,
Kangra at Dharamshala, H.P.
__________
IN THE COURT OF SH. K. K. SHARMA, PRESIDING JUDGE, LABOUR COURT-CUM-
INDUSTRIAL TRIBUNAL, KANGRA AT DHARAMSHALA (H.P.)
Ref No.
:
489/2015
Date of Institution :
09-11-2015
Date of Decision :
04-10-2017
Smt. Ram Dei w/o Shri Dhyan Singh, r/o Village Tikri, P.O. Luj, Tehsil Pangi, District
Chamba, H.P.
. . Petitioner.
Versus
The Executive Engineer, Killar Division, H.P.P.W.D., Killar (Pangi) District Chamba, H.P.
. . Respondent.
Reference under Section 10 (1) of the Industrial Disputes Act, 1947.
For the Petitioner
: Sh. Rajeev Dharmani, Adv.
For the Respondent : Sh. Sanjeev Singh Rana, Dy. D.A.
AWARD
The reference given below has been received from the appropriate Government for
adjudication:
“Whether the industrial raised by the worker Smt. Ram Dei w/o Shri Dhyan Singh, r/o
Village Tikri, P.O. Luj, Tehsil Pangi, District Chamba, H.P. before the Executive Engineer,
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Killar Division, H.P.P.W.D., Killar (Pangi), District Chamba, H.P. vide demand notice
dated nil received in Labour Office Chamba on dated 16-11-2011 regarding her alleged
illegal termination of services during year, 1998 suffers from delay and latches? If not,
Whether termination of services of Smt. Ram Dei w/o Shri Dhyan Singh, r/o Village Tikri,
P.O. Luj, Tehsil Pangi, District Chamba, H.P. by the Executive Engineer, Killar Division,
H.P.P.W.D., Killar (Pangi), District Chamba, H.P. during year, 1998, without complying
the provisions of the Industrial Disputes Act, 1947, is legal and justified? If not, what
amount of back wages, seniority, past service benefits and compensation the above
aggrieved workman is entitled to from the above employer?”
2.
On receipt of reference from appropriate government, notices were issued to the parties
in pursuance to which claimant/petitioner has filed statement of claim.
3.
Brief facts as enumerated in the present claim petition by the petitioner above named
revealed that she had been initially engaged as daily wage Beldar on muster-roll basis in the year
1990 who continuously worked till 1998 with the respondent. Averments made in the petition
further revealed that petitioner had worked for 160 days in each calendar year as per the criteria
prescribed for tribal area of Pangi Tehsil District Chamba and became eligible for continuous
service envisaged under statutory provisions of Section 25-B of the Industrial Disputes Act, 1947
(hereinafter referred to as "the Act" for brevity). Averments made in the petition revealed that the
services of petitioner had been interrupted by way of intermittent/artificial breaks given by the
respondent/department deliberately and as such breaks are required to be counted as "continuous
services" for the purposes of calculation of 160 days for the applicability of Section 25-B of the
Act. The grievance of petitioner remains that respondent/department had terminated/disengaged
petitioner from daily wage service orally without issuing one month's notice in writing stipulating
therein reason for retrenchment besides no retrenchment compensation was paid to petitioner when
respondent had been illegally terminated. It is also alleged that respondent had not followed the
provisions of Section 25-F of the Act while disengaging petitioner from service. It is stated that
petitioner is very poor who has no source of income besides after termination of the services of
petitioner, petitioner had approached the respondent time and again but of no avail. The grievance
of petitioner further remains that when the services of petitioner had been terminated,
respondent/department had reengaged number of new workman from time to time and while doing
so, respondent had not followed the principle of "Last come, First go" envisaged under Section 25-
G of the Act. It is further alleged that respondent/department had continuously retained junior to
petitioner who are still in service namely Suraj Ram who appointed in 1997, Chunku Ram in 2000,
Budhi Ram in 2003 and Dev Raj in 2007. The claimant/petitioner claimed that she had spotless
service record who never been charge-sheeted for any act of indiscipline or negligence or her
conduct and even at the time of verbal termination, no charge-sheet had been served upon her and
the at the same time, no opportunity of hearing had been afforded to him. The petitioner also
alleges that she has remained unemployed ever since her illegal termination from year of 1998 till
the date of institution of present claim petition who had been nowhere gainfully employed and was
thus entitled for full back wages. Accordingly alleging respondent to have committed violation of
statutory provision of Section 25-F, Section 25-G and Section 25-H of the Industrial Disputes Act,
1947 and thus petitioner prays for setting aside oral order of termination/retrenchment of
respondent in the year 1998. She further prayed for reinstatement in service w.e.f. year 1998 along-
with back wages, seniority including continuity in service as petitioner as she had remained
unemployed since the date of her illegal termination. The petitioner has also prayed that period of
intermittent/fictional breaks deliberately given time and again during entire service of petitioner
between 1990 to 1998 be counted 160 days continuous service and regularization of the services of
petitioner w.e.f. 1-1-1999 under 10 years regularization policy and to any other relief petitioner is
entitled.
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4.
The respondent contested claim petition, filed reply inter-alia taken preliminary
objections of maintainability, claim petition being bad on account of delay and laches. On merits
denied that petitioner had worked for more than 160 days in each calendar year rather clarified by
stating that petitioner was engaged as daily waged Beldar in 1994 who remained engaged till 1998
but had worked intermittently as petitioner used to come and attend the work at her own sweet will
and convenience. Relying upon the mandays chart, it has been categorically pleaded by the
respondent that petitioner had not completed 160 days in each calendar year as required for tribal
area of Pangi Tehsil. The allegations of fictional breaks given by respondent to the petitioner have
been specifically denied. In so far as engagement of persons junior to petitioner mentioned in para
No. 10 of the claim petition were appointed as per order of Labour Court and no other juniors to the
petitioner had been retained in service by the respondent. On the plea of termination of service of
petitioner, respondent specifically alleges that petitioner had left the job at her own will therefore
serving of notice or pay in lieu thereof was not required. Reiterating its stand respondent has
maintained that petitioner had left the work of her own sweet will and the persons mentioned in
para No.10 are stated to have engaged as per direction of the Labour Court-cum-Industrial Tribunal
Dharamshala and respondent had not violated the principle of 'Last come, First go'. It is also
contended that if petitioner had been terminated in 1998 she would have definitely raised industrial
dispute immediately and that after thirteen years petitioner is stated to be agitating the matter which
is bad on account of delay and laches. It is also contended that since the services of petitioner had
not been terminated by the respondent, question of issuance of notice or wages in lieu thereof did
not arise and at the same time, there was no necessity for charge-sheet or issuing any notice of
petitioner after her termination. It is contended that petitioner was agriculturist and gainfully
employed and was thus not entitled for back wages.
5.
The petitioner filed rejoinder, reiterated her stand as maintained in the claim petition.
Further asserted that provisions of Limitation Act did not eclipse the claim of petitioner in totality
besides allegation of violation of principle of "Last come First go" was specifically denied.
6.
In order to prove her case, petitioner had examined herself as PW1 tendered/proved her
affidavit Ex. PW1/A under Order 18 Rule 4 CPC, Ex. PW1/B copy of demand notice, Ex. PW1/C
copy of order dated 27-8-2015 and closed evidence. On the other hand, repudiating the evidence
led by the petitioner, respondent examined RW1 Shri D.R. Chauhan, the then Executive Engineer,
HPPWD Division Killar as RW1 tendered/proved mandays chart of petitioner Ex. RW1/B, Ex.
RW1/C copy of mandays chart of co-workers and closed the evidence.
7.
I have heard the Ld. counsel of petitioner and Ld. Dy. D.A. representing respondent,
gone through records of the case carefully relevant for disposed of this case.
8.
From the contentions raised, following issues were framed on 29-04-2016 for
determination:
1.
Whether the industrial dispute raised by petitioner vide demand notice dated nil qua
her termination of service during year 1998 by respondent suffers from the vice of
delay and laches as alleged? If so, its effect?
. . OPP
2.
Whether termination of the services of the petitioner by the respondent during year,
1998 is/was illegal and unjustified as alleged?
. . OPP
3.
If issue No. 2 is proved in affirmative, to what service benefits the petitioner is entitled
to?
. . OPP
4.
Whether the claim petition is not maintainable in the present form as alleged? . . OPR
Relief.
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9.
For the reasons detailed here under, my findings on the above issues are as follows:—
Issue No.1
: Discussed
Issue No.2
: Yes
Issue No.3
: Discussed
Issue No.4
: No
Relief
: Petition is partly allowed awarding compensation of Rs.1,00,000/- per
operative part of award.
REASONS FOR FINDINGS
Issues No. 1 to 3 :
10. All these issues have been taken up together for discussion being interconnected which
can be disposed of simultaneously without repetition of evidence.
11. Relationship of petitioner having been engaged as daily waged beldar by respondent on
muster-roll basis in the year 1990 continuously worked till 1998 with the respondent is not in
dispute. Admittedly, petitioner was engaged without any written order or settlement of terms and
conditions by the respondent. It is equally not in dispute that no written order was passed while
terminating service of the petitioner as claim of respondent remains that it had not retrenched
petitioner from service who had abandoned the job of her own and used to work intermittently as
per her own wish and convenience. However, there is dispute with regard to period for which the
petitioner has worked with respondent. It is evident from mandays chart Ex. RW1/B coupled with
pleadings of respondent that petitioner had worked from 1994 till 1998 whereas the
claimant/petitioner alleges that he had worked from 1990 to 1998. Since the claim of petitioner is
not substantiated from any corresponding documentary evidence on record, the only inference in
such situation could be drawn is that petitioner had been factually engaged w.e.f. 1994 and not from
1990. Admittedly, the reference of appropriate govt. does not relate to plea of fictional breaks but
only with regard to petitioner's termination from service. In the backdrop of foregoing admitted
facts on record, claim of petitioner requires to be adjudicated with a view to determine if petitioner
is entitled for relief of reinstatement and back wages alongwith seniority and past service benefits
and compensation as claimed by him.
12. Stepping into witness box as PW1 has sworn in affidavit Ex. PW1/A reiterating and
reaffirming her pleadings as stipulated in claim petition. In her affidavit she has claimed to have
worked with the respondent/department for more than 160 days in Pangi Sub Division Chamba
District and remained engaged from 1994 to 1998. She has also stated on oath that no notice under
Section 25-F of the Act was given by the respondent before terminating her service and at the same
time no compensation in lieu thereof notice period was paid to her and thus her termination was
illegal and void entitling petitioner benefit of reinstatement of service with full back wages and all
the other consequential service benefits. The petitioner has further alleged on oath that
respondent/department after terminating her services in the year 1998 by oral order had engaged
several co-workers who were junior to petitioner were retained in service. Not only this, the
persons who were junior to petitioner are stated to have been regularized in service and thus
respondent had not followed the mandate of Sections 25-G and 25-H of the Act which was
obligatory on its part. The case of petitioner also remains that she had served respondent with due
diligence and had spotless service record as respondent/department had never called any
explanation or raised charge-sheet against her but even while retrenching petitioner from service,
no notice was given. The petitioner has also explained reason for not approaching the authorities
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under Labour Act and thereafter before this Tribunal, as there existed no road between Chamba
town to Pangi Tehsil till 2011 and petitioner had moved before the Labour Officer raising demand
notice consequent upon which a failure report was submitted and as the Labour Commissioner did
not make reference for industrial dispute raised by petitioner, the petitioner had moved before the
Hon'ble High Court by filing CWP where direction was passed for making reference to the Labour
Court due to which delay had occurred and same was satisfactorily explained.
13. In so far as plea of abandonment raised by respondent is concerned, the same merits
rejection in view of the fact that respondent had failed to produce any record by which it could be
established that whenever petitioner absented from her duty as also reflected in mandays chart Ex.
RW1/B any notice or letter was ever issued. On this point respondent as RW1 has specifically
admitted that whenever petitioner abandoned the job, no notice had been issued. RW1 specifically
admitted that no departmental inquiry was initiated against petitioner even after the year 1998. No
reason whatsoever has been assigned for such any action or omission on the part of respondent in
not initiating any departmental proceedings or making correspondence calling upon the petitioner
to join service. This prima facie belies the stand taken by the respondent as abandonment has to be
proved like any other fact in issue. The petitioner, on the other hand, as PW1 in cross-examination
has specifically denied that she used to leave the job in between and attended the work
intermittently rather she has claimed that intermit breaks had been deliberately given to her by the
respondent in the service record of petitioner so that petitioner did not complete 160 days of work
as required for Pangi Tehsil area and also for applicability of Section 25-B of the Act. As such, in
absence of any specific and reliable evidence led by respondent, it would be unsafe to hold that
respondent had established plea of abandonment.
14. A bare glance on the mandays chart Ex. RW1/B would reveal that petitioner had
worked for 197 days in the year 1994, 184 days in 1995, 157 days in 1996, 156 days in 1997 and
163 days in 1998 and thus a total of her service in 1994 to 1998 in 05 years she had worked for 857
days in her entire service period. Be it noticed that petitioner had worked for more than 160 days
and as there is no reference from the Labour Commissioner, Shimla on the point of artificial breaks,
this court is to confine its findings only with regard to alleged illegal termination. It is evident from
mandays chart Ex. RW1/B that in the year 1998 the petitioner had merely worked for 163 days and
thus immediately in preceding 12 calendar months from the month of termination of petitioner had
rendered service of 160 days so as to meet requirement of law of having continuous service of one
year and thus it was at all required from respondent to have issued a notice envisaged under Section
25-F of the Act. As such, the respondent is held to have violated the provisions of Section 25-F of
the Act.
15. Ld. counsel for petitioner has contended with vehemence that large number of workers
who were junior to petitioner had been appointed and these workers have been retained in service
and regularized. The grievance of petitioner remains that principle of "Last come First go" was not
followed as the juniors were retained and services of petitioner despite being senior was terminated
without any valid reason. Ex. RW1/C is the year-wise mandays of daily waged workers who were
junior to the petitioner and had joined in the year 1997 or thereafter. All of these co-workers shown
in Ex. RW1/C the year-wise mandays details of workers of Division HPPWD Killar were certainly
junior to petitioner who were given sufficient work existing in those years more than 200 days in a
year whereas the petitioner had been not given muster-roll for the whole month. Ex. RW1/C also
established that all the co-workers shown in this document have worked for more than 160 days in
most of the years although they were junior to petitioner. Evidently, there is no iota of evidence of
respondent establishing that petitioner was called upon to join for service at any time after 1998
even at the time when junior persons were reengaged. That being so the respondent had certainly
violated the provisions of Section 25-G of the Act as the juniors workers mentioned in para No.10
of the affidavit were retained whereas petitioner was senior from these co-workers having joined
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service in 1992 was terminated and even thereafter respondent omitted to afford opportunity to
petitioner for reemployment for work which also violates the provisions of Section 25-H of the Act.
Ld. counsel for petitioner has placed reliance upon judgment of Central Bank of India vs. S.
Satyam, 1996 (5) SCC 419 in which Hon'ble Apex Court has held that for the applicability of
Section 25-G and 25-H of the Act, there was no necessity of claimant/petitioner to have worked
for 240 days as in case of provisions of Section 25-F of the Act.
16. Ld. Dy. D.A. representing respondent has made futile attempt to justify engagement
junior worker and their retention in service in pursuance to Awards passed by Labour Court. On the
other hand, Ld. counsel for petitioner relied upon Ex. PW1/C the order dated 27.8.2015 of Hon‟ble
High Court of H.P. vide which the orders qua termination passed as against respondent and several
other were quashed. That being so the relief was granted in favour of the petitioner who was
directed to be reinstated with others. As such, even when petitioner is proved to have not worked
for more than 160 days in preceding 10 years which entitled him for regularization of his service
per government policy, yet respondent is not absolved from its accountability for complying the
provisions of Sections 25-G and 25-H of the Act and as such, it is held that respondent had violated
the provisions of Sections 25-F, 25-G and 25-H of the Industrial Disputes Act.
17. Ld. Counsel for petitioner has contended that after petitioner's termination in 1998, she
had remained unemployed and was not earning anything thereafter as such was entitled for full
back wages. Repudiating the arguments of Ld. counsel of petitioner, Ld. Dy. D.A. for the State has
taken this court through cross-examination of the petitioner who has admitted that she had
cultivable land with her and also worked a private labourer. Thus, plea of having remained not
gainfully employed gets belied admission of petitioner in cross-examination in which she had
maintained that she had been earning from agricultural land as well as she has been working as
daily wager privately. Reliance has been placed on the judgment of Hon'ble Apex Court North
East Karnataka Road Transport Corporation vs. M. Nagangouda (2007) 10 SCC 765 in which
Division Bench comprising of Justice A. R. Lakshmanan and Justice Altamas Kabir had held that
"term gainfully employment would also include self employment wherefrom income is
generated. It was income either from employment in an establishment or from self
employment merely differentiates the sources from which income is generated, the end use
being the same". Applying the ratio of judgment of 2007 (supra) to this case since the petitioner
was earning from her agricultural and manual pursuits, the same were sufficient to maintain her and
her family. It is thus held that petitioner was gainfully employed. Be it stated here that Hon'ble
Apex Court in Deepali Gundu Surwase's case has held that the Labour Court was not justified in
holding that merely because the respondent was receiving agriculture income, she cannot be treated
to be engaged in gainful employment. Since the petitioner had income from agriculture pursuits for
her livelihood it cannot be stated that petitioner was not gainfully employed and thus would not be
entitled full back wages. In view of the forgoing discussion, it is held that the relationship of
workman and employer existed between petitioner and respondent and that petitioner was illegally
retrenched without compliance of Sections 25-F, 25-G and Section 25-H of the Act although
remained gainfully employed after her retrenchment. Thus, applying the ratio of judgment of
Hon'ble Apex Court (2007 supra), it may not be erroneous to hold that petitioner was gainfully
employed and thus would be not entitled for back wages for the period she was out of job on being
terminated by the respondent.
18. Lastly, Ld. Dy. D.A. for State has contended with vehemence that there is inordinate
and explained delay which disentitles petitioner relief claimed for by him. On the other hand, Ld.
counsel for the petitioner has relied upon the judgment of Hon'ble Apex Court titled Raghubir
Singh vs. General Manager, Haryana Roadways, Hissar reported in 2014 Lab IC 4266 (SC)
and the relevant paras of the judgment are produced below for reference:
“12. Therefore, in our considered view, the observations made by this Court in the
Rajasthan State Agriculture Marketing Board case (supra) upon which the learned
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Additional Advocate General for the State of Haryana has placed reliance cannot be
applied to the fact situation of the case on hand, for the reason that the Labour Court
has erroneously rejected the reference without judiciously considering all the relevant
factors of the case particularly the points of dispute referred to it and answered the 2nd
issue regarding the reference being barred by limitation but not on the merits of the
case. The said decision has no application to the fact situation and also for the reason
the catena of decisions of this Court referred to supra, wherein this Court has
categorically held that the provisions of Limitation Act under Article 137 has no
application to make reference by the appropriate government to the Labour
Court/Industrial Tribunal for adjudication of existing industrial dispute between
workmen and the employer.
13. In the case on hand, no doubt there is a delay in raising the dispute by the
appellant; the Labour Court nevertheless has the power to mould the relief
accordingly. At the time of adjudication, if the dispute referred to the Labour
Court is not adjudicated by it, it does not mean that the dispute ceases to exist.
The appropriate government in exercise of its statutory power under Section 10(1)(c)
of the Act can refer the industrial dispute, between the parties, at any time, to either the
jurisdictional Labour Court/Industrial Tribunal as interpreted by this Court in the Avon
Services case referred to supra. Therefore, the State Government has rightly exercised
its power under Section 10(1)(c) of the Act and referred the points of dispute to the
Labour Court as the same are in accordance with the law laid down by this Court in
Avon Services & Sapan Kumar Pandit cases referred to supra.
14. Further, the workman cannot be denied to seek relief only on the ground of delay
in raising the dispute as held in the case of S.M. Nilajkar & Ors. vs. Telecom
District Manager, Karnataka[4] it was held by this Court as follows—
“17. It was submitted on behalf of the respondent that on account of delay in raising
the dispute by the appellants the High Court was justified in denying relief to the
appellants. We cannot agree...... In Ratan Chandra Sammanta and Ors. vs. Union of
India and Ors. (supra)1993 AIR SCW 2214, it was held that a casual labourer
retrenched by the employer deprives herself of remedy available in law by delay itself,
lapse of time results in losing the remedy and the right as well. The delay would
certainly be fatal if it has resulted in material evidence relevant to adjudication being
lost and rendered not available. However, we do not think that the delay in the case at
hand has been so culpable as to disentitle the appellants for any relief.....”(Emphasis
laid by the Court) In view of the legal principles laid down by this Court in the above
judgment, the reference of the industrial dispute made in the case on hand by the State
Government to the Labour Court to adjudicate the existing industrial dispute between
the parties was made within a reasonable time, considering the circumstances in which
the workman was placed, firstly, as there was a criminal case pending against her and
secondly, the respondent had assured the workman that she would be reinstated after
her acquittal from the criminal case. Moreover, it is reasonable to adjudicate the
industrial dispute in spite of the delay in raising and referring the matter, since there is
no mention of any loss or unavailability of material evidence due to the delay. Thus,
we do not consider the delay in raising the industrial dispute and referring the same to
the Labour Court for adjudication as gravely erroneous and it does not debar the
workman from claiming rightful relief from her employer.
15. In the case of Ajaib Singh vs. The Sirhind Co-Operative Marketing-cum- Processing
Service Society Limited & Anr.[5] this Court has opined that relief cannot be denied to
the workman merely on the ground of delay, stating that:—
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“10. It follows, therefore, that the provisions of Article 137 of the Schedule to
Limitation Act, 1963 are not applicable to the proceedings under the act and that the
relief under it cannot be denied to the workman merely on the ground of delay. The
plea of delay if raised by the employer is required to be proved as a matter of fact by
showing the real prejudice and not as a merely hypothetical defence. No reference to
the labour court can be generally questioned on the ground of delay alone. Even in a
case where the delay in shown to be existing, the tribunal, labour court or board,
dealing with the case can appropriately mould the relief by declining to grant back
wages to the workman till the date she raised the demand regarding her illegal
retrenchment/ termination or dismissal. The Court may also in appropriate cases direct
the payment of part of the back wages instead of full back wages.....” (Emphasis laid
by the Court).
16. Hence, we are of the opinion, having regard to the fact and circumstances of the case
that there is no delay or laches on the part of the workman from the date of her
acquittal in the criminal case. Thereafter, upon failure of the respondent in adhering to
the assurance given to the workman that she would be reinstated after her acquittal
from the criminal case, the workman approached the conciliation officer and the State
Government to make a reference to the Labour Court for adjudication of the dispute
with regard to the order of dismissal passed by the respondent. Keeping in mind the
date of acquittal of the appellant and the date on which she approached the conciliation
officer by raising the dispute, since the respondent had not adhered to its assurance, the
State Government had rightly referred the dispute for its adjudication. Therefore it
cannot be said that there was a delay on the part of the appellant in raising the dispute
and getting it referred to the Labour Court by the State Government.
17. Further, the Labour Court on an erroneous assumption of law framed the
additional issue regarding the limitation in raising the dispute and its reference
by the State Government to the Labour Court. Thus, the Labour Court has ignored
the legal principles laid down by this Court in the cases referred to supra. The award
passed by the Labour Court was accepted erroneously by both the learned single Judge
and the Division Bench of the High Court by dismissing the Civil Writ Petition & the
Letters Patent Appeal without examining the case in its proper perspective, keeping in
view the power of the State Government under Section 10(1)(c) and the object and
intendment of the Act. Not adjudicating the existing industrial dispute on merits
between the parties referred to it may lead to disruption of industrial peace and
harmony, which is the foremost important aspect in Industrial Jurisprudence as the
same would affect the public interest at large.
19. Ld. Dy. D.A. representing respondent department has also contended with vehemence
that claim petition is barred by limitation on account of delay and laches. It has been pointed that
termination of petitioner in this case took place on 1998 and the industrial dispute was raised after
several years of retrenchment. Repudiating the argument by Ld. counsel, ld. AR for the petitioner
has placed reliance upon judgment reported in 2007 LHLJ 903 Hon'ble High Court of H.P.
(Bhatag Ram's case) in which it has been held that delay in raising dispute may be considered by
court at the time of granting final relief however in various other judgments even longer delay has
been condoned. In Divisional Manager, HPFC & another vs. Garibu Ram, Latest HLJ 2007
(HP) 1160, delay of more than 10 years was condoned besides Hon'ble High Court has held that
principle of Limitation Act is not applicable to the industrial dispute. Similar view was taken by
Hon'ble Apex Court in Ajayab Singh vs. Sirhind Co-operative Marketing-cum-Processing
Society Limited and Another, (1999) 6 SCC 82 in which it has been held that the principle of
Limitation Act, 1963 did not apply to the proceeding under the Industrial Disputes Act.
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20. Relying upon the aforestated judgment, it has been contended that claim of petitioner
cannot be defeated on the point of delay and laches. Repudiating arguments advanced by Ld.
Counsel for petitioner, Ld. Dy. D.A. has placed reliance upon the judgment of Hon'ble Apex Court
titled as Assistant Engineer, Rajasthan State Agriculture Marketing Board, Sub-Division
Kota and Mohan Lal [2013 (139) FLR 125], the relevant para of the judgment are produced
below for reference:
Industrial Disputes Act, 1947-Sections 25-F and 10-Limitation Act, 1963- Section 5-
Industrial dispute-Termination of service-Finding of Labour Court that workman had
completed 240 days in calendar year and her termination was in violation of section 25-F of
the I.D.Act- Workman worked from 1-11-1984 to 17-2-1986 in all 286 days during
employment. Her services terminated on 18-2-1986. Industrial dispute raised after 6 years
of termination. Admitted delay of 6 years not kept in view by the Labour Court- Judicial
discretion exercised by the Labour Court flawed and unsustainable. Reinstatement of the
workman not the appropriate relief. In lieu of reinstatement compensation of Rs. One lac
directed to be paid to the workman by the appellant-employer within six weeks failing
which interest @ 9% p.a. will be payable.
[Paras 21 and 22]
Limitation Act, 1963. Section 5- Industrial Disputes Act, 1947- Section 25-F- Termination
of service- Industrial dispute raised after six years- Limitation Act not applicable to reference
made under the I.D. Act-Delay in raising industrial disputes definitely an important
circumstances which the Labour Court must keep in view before granting relief”.
21. Repudiating the arguments by Ld. Dy. D.A. for the State, Ld. Counsel for claimant/
petitioner has relied upon the judgment of Hon'ble Apex Court in case titled as Tapash Kumar
Paul vs. BSNL & another reported in AIR 2015 SC 357 wherein Hon'ble Court held that a Court
may pass an order of reinstatement by awarding compensation but the same has to be based on
justifiable grounds. In this judgment, it was held that compensation can be granted in a situation
where the industry is closed or that employees has superannuated or going to retire shortly and no
period is left to her credit or where workman has been rendered in capacitated to discharge duties
cannot be reinstated and/or fourthly when she has lost confidence of the management to discharge
duties. It was observed that there may be appropriate cases on facts which may justify substituting
an order of reinstatement by award of compensation but that has to be supported by some legal
and justifiable reasons indicating why the reinstatement should be followed to be substituted
by award of compensation. Ld. Counsel for the petitioner with the aid of above-said judgment had
argued that there are only four situations when a worker may be awarded compensation instead of
reinstatement but the judgment has certainly not been correctly appreciated by Ld. Counsel as this
judgment postulates probable four situations which are illustrate in nature where compensation may
be awarded instead of reinstatement but that does not mean that except the four grounds, no other
ground would be appropriate for awarding compensation. In the case in hand before this court, it
has come that petitioner had abandoned the job who did not report for duty for several years and
later gave notice requesting for joining of duties but the conditions in para No.5 of judgment (2015
supra) even if not met requirement, cannot be a ground to reinstate the petitioner and it is only
compensation which would be appropriate relief. Ld. counsel for the petitioner has relied upon the
judgment of Hon'be Apex Court titled as Deepali Gundu Surwase vs. Kranti Junior Adhyapak
Mahavidyalaya (D.Ed.) and Ors. reported in AIR 2014 SC (Supp) 121, Raghubir Singh vs.
General Manager, Haryana Roadways, Hissar reported in 2014(3) Apex Court Judgments 652.
I have gone through these judgments and of view that they don't come to rescue the petitioner on
point of reinstatement instead of compensation. Ld. Dy. D.A. for State on the other hand has relied
upon the judgment of Hon'ble Apex Court in Vice Chancellor, Lucknow University, Lucknow,
Uttar Pradesh vs. Akhilesh Kumar Khare & another reported in AIR 2015 SC 3473. It has been
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contended that engagement of claimant/petitioner in this case was not through regular mode of
recruitment and applying the ratio of this judgment AIR 2015 SC supra, claim of petitioner for
reinstatement can be negated and thus compensation would be sufficient for redressal of grievance
of the claimant/petitioner. Similarly, in 2016 (1) Him. L.R. 502 titled as State of Himachal
Pradesh and another vs. Chaman Singh relied by Ld. AR for petitioner interpretation of Section
137 of Limitation Act was involved which provides that Article 137 of Limitation Act did not apply
to industrial disputes. In 2014 (3) Apex Court Judgment 652 (SC) similar view was reiterated
which clearly mandates that claimant/petitioner cannot be denied relief sought for merely on the
ground of delay and laches. That being so, the law remains as it was that ground of delay and
laches, claimant/petitioner cannot be denied relief rather the court has to consider various aspects
before moulding relief and the case in hand it would not be erroneous to mention here that the
claimant/petitioner can be reasonably indemnified by ordering compensation and not by
reinstatement. In so far as judgment of AIR 2015 SC 1373 titled as Mackinon Machenize &
Company Ltd. vs. Mackinon Employees Union is concerned, the Hon'ble Apex Court has held
on closure of unit of company principle of "Last come First go" was not followed which violated
Section 25-G of Industrial Disputes Act and retrenchment was held illegal entitling petitioner for
retrenchment compensation. Since the facts of case of Mackinon Machenize's case are different
from case in hand as in former closure of unit of company was involved whereas in case in hand
before this court, there is no closure of company rather it is the department of HPPWD which had
engaged petitioner without following of the procedure although subject to funds and availability of
work. As such, when there is no closure of any unit by respondent which the petitioner was
engaged, judgment of Mackinon Machenize cannot be made applicable.
22. After hearing the rival contentions of the parties and case law relied by them, it can be
safely concluded that delay in raising industrial dispute is certainly important aspect/circumstance
which court has to keep in mind while exercising discretion. In para Nos. 20 and 21 of the
judgment as referred to in this case reported in 2013 (136) FLR 893 (SC) titled as Assistant
Engineer Rajasthan Development Corporation and another vs. Geetam Singh provides that
before exercising its judicial discretion, the Labour Court or Tribunal has to keep in mind all
relevant factors including the mode and manner of appointment, nature of employment, length of
service, the ground on which termination has been set aside and delay in raising industrial dispute
before grant of relief. It was observed by the Hon'ble Apex Court in judgment (2013 supra) before
that workman had worked for 286 days and had raised industrial dispute in 1992 whereas her
services have been terminated in 1986 and she raised industrial dispute after six years. The Hon'ble
Apex Court has held that though compensation awarded by Single Judge of the Hon'ble High Court
was too low and liable to be enhanced by the Division Bench but surely reinstatement of the
workman in the facts and circumstances is not the appropriate relief and thus Hon'ble Apex
Court awarded a lump-sum of Rs.1 lakh alongwith interest @ 9% per annum if the respondent
failed to make payment of compensation within six weeks from the date of judgment. In the case in
hand before this court factors which have weighed are that the petitioner in all remained engaged
for about 05 years and actually worked for 857 days as per mandays chart on record and that the
services of petitioner were disengaged in the year 1998 who worked as non skilled worker and had
raised industrial dispute by issuance of demand notice after about thirteen years i.e. demand notice
was given on 16-11-2011. Taking into consideration factors mentioned above in pursuance to
judgments of Hon'ble Apex Court referred to above, petitioner would not be entitled either for
reinstatement or for back wages but a lump-sum compensation would be appropriate relief in view
of judgment 2013 (139) FLR 25 (SC). The judgments relied upon by Ld. counsel for petitioner on
the matter of delay and laches is more or less settled law that claim of the petitioner could not be
solely declined on the ground of delay and laches. Similarly, judgment of Hon'ble Apex Court in
2014 titled as Raghubir Singh's case also does not come to the rescue of the petitioner as in this
judgment also the Hon'ble Apex Court has reiterated the mandate as given by the Hon'ble Apex
Court in previous judgment in the year 2013 i.e. Assistant Engineer, Rajasthan State
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Agriculture Marketing Board, Sub-Division Kota and Mohan Lal's case. I have gone through
these judgments which are not attracted in this present case as this court not declining relief to the
petitioner on the ground of limitation rather on the basis of guidelines of Hon'ble Apex Court laid
down in judgment of 2013 as referred to above. Ld. Dy. D.A. representing State/respondents has
relied upon the judgment of Hon'ble Apex Court reported in AIR 2016 SC 2984 titled as
Prabhakar vs. Joint Director Sericulture Department and another. I have gone through the
judgment which deals reference under Section 10 of the Industrial Disputes Act in which it has
been held that Hon'ble High Court can intervene in writ jurisdiction under Article 226 when
reference has been challenged on the ground of inordinate unexplained delay. Since the reference
made by the Government in this case is not in challenge before this Court, the above said judgment
would not be attracted in the facts and circumstances of the case. Moreso in view of observation
qua facts made in judgment (2016) supra, claimant/petitioner was found to be an educated person
who was working as Clerk whereas in case before this Court, the petitioner is an illiterate unskilled
worker. For the above-said reasons, plea of delay and laches would not eclipse claim of petitioner.
23. In view of foregoing discussion, a lump-sum compensation of Rs.1,00,000/- (Rupees
one lakh only) would be an appropriate relief to which the petitioner is entitled in the facts and
circumstances of the case as stated above. It is further made clear that amount of compensation
shall be paid within four months from the date of receipt of Award failing which the petitioner
would be entitled for interest @ 9% per annum from date of Award till its realization. Issues No. 1
to 3 are answered accordingly.
ISSUE No. 4
24. On the plea of non-maintainability of the claim petition under Section 10 of the
Industrial Disputes Act, Ld. Dy. D.A. representing respondent department has failed to allege in
reply in what manner petition is not maintainable. Thus, vague plea merits rejection outright.
Otherwise also, from pleadings and evidence on record, no inference of claim petition being not
maintainable could be raised against claimant/petitioner. This issue is decided in favour of
petitioner and against the respondent.
RELIEF
25. As sequel to my findings on foregoing issues, the respondent is hereby directed to pay
the compensation of Rs.1,00,000/- (Rupees one lakh only) to the petitioner in lieu of the
reinstatement, back wages, seniority and past service benefits. Amount of compensation so
awarded will be paid by the respondent to the petitioner within four months from the date of receipt
of Award failing which the respondent shall be liable to pay the interest @ 9% per annum on the
said amount from the date of award till the date of its realization. In the peculiar circumstances of
the case, the parties are left to bear their own costs.
26. The reference is answered in the aforesaid terms.
27. A copy of this Award be sent to the appropriate Government for publication in the
official gazette.
28. File, after due completion be consigned to the Record Room.
Announced in the open Court today this 4th day of October, 2017.
Sd/-
(K.K. Sharma),
Presiding Judge,
Labour Court-cum-Industrial Tribunal,
Kangra at Dharamshala, H.P.
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IN THE COURT OF SH. K. K. SHARMA, PRESIDING JUDGE, LABOUR COURT-CUM-
INDUSTRIAL TRIBUNAL, KANGRA AT DHARAMSHALA (H.P.)
Ref. No.
:
499/2015
Date of Institution
:
09-11-2015
Date of Decision
:
04-10-2017
Ms. Muni Kumari d/o Shri Suram Chand, r/o Village Hugal, P.O. Karyas, Tehsil Pangi,
District Chamba, H.P.
...Petitioner.
Versus
The Executive Engineer, Killar Division, H.P.P.W.D., Killar (Pangi) District Chamba, H.P.
...Respondent.
Reference under Section 10 (1) of the Industrial Disputes Act, 1947.
For the Petitioner
: Sh. Rajeev Dharmani, Adv.
For the Respondent
: Sh. Sanjeev Singh Rana, Dy. D.A.
AWARD
The reference given below has been received from the appropriate Government for
adjudication:
“Whether the industrial dispute raised by worker Ms. Muni Kumari d/o Shri Suram Chand,
r/o Village Hugal, P.O. Karyas, Tehsil Pangi, District Chamba, H.P. before the Executive
Engineer, Killar Division, H.P.P.W.D., Killar (Pangi), District Chamba, H.P. vide demand
notice dated 24-12-2011 regarding her alleged illegal termination of services during
November, 1997 suffers from delay and latches? If not, Whether termination of services of
Ms. Muni Kumari D/O Shri Suram Chand, R/O Village Hugal, P.O. Karyas, Tehsil Pangi,
District Chamba, H.P. by the Executive Engineer, Killar Division, H.P.P.W.D., Killar
(Pangi), District Chamba, H.P. during November, 1997, without complying the provisions
of the Industrial Disputes Act, 1947, is legal and justified? If not, what amount of back
wages, seniority, past service benefits and compensation the above aggrieved workman is
entitled to from the above employer?”
2. On receipt of reference from appropriate government, notices were issued to the parties
in pursuance to which claimant/petitioner has filed statement of claim.
3. Brief facts as enumerated in the present claim petition by the petitioner above named
revealed that she had been initially engaged as daily wage beldar on muster roll basis in the year
1992 who continuously worked till 1997 with the respondent. Averments made in the petition
further revealed that petitioner had worked for 160 days in each calendar year as per the criteria
prescribed for tribal area of Pangi, Tehsil and District Chamba and became eligible for continuous
service envisaged under statutory provisions of Section 25-B of the Industrial Disputes Act, 1947
(hereinafter referred to as 'the Act' for brevity). Averments made in the petition revealed that the
services of petitioner had been interrupted by way of intermittent/artificial breaks given by the
respondent/department deliberately and as such breaks are required to be counted as 'continuous
services' for the purposes of calculation of 160 days for the applicability of Section 25-B of the Act.
The grievance of petitioner remains that respondent/department had terminated/disengaged
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petitioner from daily wage service orally without issuing one month's notice in writing stipulating
therein reason for retrenchment besides no retrenchment compensation was paid to petitioner when
respondent had been illegally terminated. It is also alleged that respondent had not followed the
provisions of Section 25-F of the Act while disengaging petitioner from service. It is stated that
petitioner is very poor who has no source of income besides after termination of the services of
petitioner, petitioner had approached the respondent time and again but of no avail. The grievance
of petitioner further remains that when the services of petitioner had been terminated,
respondent/department had reengaged number of new workman from time to time and while doing
so, respondent had not followed the principle of 'Last come, First go' envisaged under Section 25-G
of the Act. It is further alleged that respondent/department had continuously retained junior to
petitioner who are still in service namely Suraj Ram who appointed in 1997, Chunku Ram in 2000,
Budhi Ram in 2003 and Dev Raj in 2007. The claimant/petitioner claimed that she had spotless
service record who never been charge-sheeted for any act of indiscipline or negligence or her
conduct and even at the time of verbal termination, no charge-sheet had been served upon her and
at the same time, no opportunity of hearing had been afforded to him. The petitioner also alleges
that she has remained unemployed ever since her illegal termination from year of 1997 till the date
of institution of present claim petition who had been nowhere gainfully employed and was thus
entitled for full back wages. Accordingly alleging respondent to have committed violation of
statutory provision of Section 25-F, Section 25-G and Section 25-H of the Industrial Disputes Act,
1947 and thus petitioner prays for setting aside oral order of termination/retrenchment of
respondent in the year 1997. She further prayed for reinstatement in service w.e.f. year 1997 along-
with back wages, seniority including continuity in service as petitioner as she had remained
unemployed since the date of her illegal termination. The petitioner has also prayed that period of
intermittent/fictional breaks deliberately given time and again during entire service of petitioner
between 1992 to 1997 be counted 160 days continuous service and regularization of the services of
petitioner w.e.f. 1-1-2001 under 10 years regularization policy and to any other relief petitioner is
entitled.
4. The respondent contested claim petition, filed reply inter-alia taken preliminary
objections of maintainability, claim petition being bad on account of delay and laches. On merits
denied that petitioner had worked for more than 160 days in each calendar year rather clarified by
stating that petitioner was engaged as daily waged Beldar in 1994 who remained engaged till 1997
but had worked intermittently as petitioner used to come and attend the work at her own sweet will
and convenience. Relying upon the mandays chart, it has been categorically pleaded by the
respondent that petitioner had not completed 160 days in each calendar year as required for tribal
area of Pangi Tehsil. The allegations of fictional breaks given by respondent to the petitioner have
been specifically denied. In so far as engagement of persons junior to petitioner mentioned in para
No. 10 of the claim petition were appointed as per order of Labour Court and no other juniors to the
petitioner had been retained in service by the respondent. On the plea of termination of service of
petitioner, respondent specifically alleges that petitioner had left the job at her own will therefore
serving of notice or pay in lieu thereof was not required. Reiterating its stand respondent has
maintained that petitioner had left the work of her own sweet will and the persons mentioned in
para no.10 are stated to have engaged as per direction of the Labour Court-cum-Industrial Tribunal
Dharamshala and respondent had not violated the principle of 'Last come, First go'. It is also
contended that if petitioner had been terminated in 1997 she would have definitely raised industrial
dispute immediately and that after thirteen years petitioner is stated to be agitating the matter which
is bad on account of delay and laches. It is also contended that since the services of petitioner had
not been terminated by the respondent, question of issuance of notice or wages in lieu thereof did
not arise and at the same time, there was no necessity for charge-sheet or issuing any notice of
petitioner after her termination. It is contended that petitioner was agriculturist and gainfully
employed and was thus not entitled for back wages.
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5. The petitioner filed rejoinder, reiterated her stand as maintained in the claim petition.
Further asserted that provisions of Limitation Act did not eclipse the claim of petitioner in totality
besides allegation of violation of principle of 'Last come First go' was specifically denied.
6. In order to prove her case, petitioner had examined herself as PW1 tendered/proved her
affidavit Ex. PW1/A under Order 18 Rule 4 CPC, Ex. PW1/B copy of demand notice, Ex. PW1/C
copy of order dated 27-8-2015 and closed evidence. On the other hand, repudiating the evidence
led by the petitioner, respondent examined RW1 Shri D.R. Chauhan, the then Executive Engineer,
HPPWD Division Killar as RW1 tendered/proved mandays chart of petitioner Ex. RW1/B, Ex.
RW1/C copy of mandays chart of co-workers and closed the evidence.
7. I have heard the ld. counsel of petitioner and ld. Dy. D.A. representing respondent,
gone through records of the case carefully relevant for disposed of this case.
8. From the contentions raised, following issues were framed on 29.04.2016 for
determination:
1. Whether the industrial dispute raised by petitioner vide demand notice dated
24.12.2011 qua her termination of service during November, 1997 by respondent
suffers from the vice of delay and laches as alleged? If so, its effect?
...OPP.
2. Whether termination of the services of the petitioner by the respondent during
November, 1997 is/was illegal and unjustified as alleged?
...OPP.
3. If issue No. 2 is proved in affirmative, to what service benefits the petitioner is entitled
to?
...OPP.
4. Whether the claim petition is not maintainable in the present form as alleged? ...OPR.
Relief.
9. For the reasons detailed here under, my findings on the above issues are as follows:—
Issue No.1 : Discussed
Issue No.2 : Yes
Issue No.3 : Discussed
Issue No.4 : No
Relief. : Petition is partly allowed awarding compensation of Rs.80,000/- per operative
part of award.
REASONS FOR FINDINGS
ISSUES No.1 TO 3 :
10. All these issues have been taken up together for discussion being interconnected which
can be disposed of simultaneously without repetition of evidence.
11. Relationship of petitioner having been engaged as daily waged Beldar by respondent
on muster roll basis in the year 1992 continuously worked till November, 1997 with the respondent
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is not in dispute. Admittedly, petitioner was engaged without any written order or settlement of
terms and conditions by the respondent. It is equally not in dispute that no written order was passed
while terminating service of the petitioner as claim of respondent remains that it had not retrenched
petitioner from service who had abandoned the job of her own and used to work intermittently as
per her own wish and convenience. However, there is dispute with regard to period for which the
petitioner has worked with respondent. It is evident from mandays chart Ex. RW1/B coupled with
pleadings of respondent that petitioner had worked from 1994 till 1997 whereas the
claimant/petitioner alleges that he had worked from 1992 to November, 1997. Since the claim of
petitioner is not substantiated from any corresponding documentary evidence on record, the only
inference in such situation could be drawn is that petitioner had been factually engaged w.e.f. 1994
and not from 1992. Admittedly, the reference of appropriate govt. does not relate to plea of
fictional breaks but only with regard to petitioner's termination from service. In the backdrop of
foregoing admitted facts on record, claim of petitioner requires to be adjudicated with a view to
determine if petitioner is entitled for relief of reinstatement and back wages along-with seniority
and past service benefits and compensation as claimed by him.
12. Stepping into witness box as PW1 has sworn in affidavit Ex. PW1/A reiterating and
reaffirming her pleadings as stipulated in claim petition. In her affidavit she has claimed to have
worked with the respondent/department for more than 160 days in Pangi Sub Division Chamba
District and remained engaged from 1994 to 1997. She has also stated on oath that no notice under
Section 25-F of the Act was given by the respondent before terminating her service and at the same
time no compensation in lieu thereof notice period was paid to her and thus her termination was
illegal and void entitling petitioner benefit of reinstatement of service with full back wages and all
the other consequential service benefits. The petitioner has further alleged on oath that
respondent/department after terminating her services in the month of November, 1997 by oral order
had engaged several co-workers who were junior to petitioner were retained in service. Not only
this, the persons who were junior to petitioner are stated to have been regularized in service and
thus respondent had not followed the mandate of Sections 25-G and 25-H of the Act which was
obligatory on its part. The case of petitioner also remains that she had served respondent with due
diligence and had spotless service record as respondent/department had never called any
explanation or raised charge-sheet against her but even while retrenching petitioner from service,
no notice was given. The petitioner has also explained reason for not approaching the authorities
under Labour Act and thereafter before this Tribunal, as there existed no road between Chamba
town to Pangi Tehsil till 2011 and petitioner had moved before the Labour Officer raising demand
notice consequent upon which a failure report was submitted and as the Labour Commissioner did
not make reference for industrial dispute raised by petitioner, the petitioner had moved before the
Hon'ble High Court by filing CWP where direction was passed for making reference to the Labour
Court due to which delay had occurred and same was satisfactorily explained.
13. In so far as plea of abandonment raised by respondent is concerned, the same merits
rejection in view of the fact that respondent had failed to produce any record by which it could be
established that whenever petitioner absented from her duty as also reflected in mandays chart Ex.
RW1/B any notice or letter was ever issued. On this point respondent as RW1 has specifically
admitted that whenever petitioner abandoned the job, no notice had been issued. RW1 specifically
admitted that no departmental inquiry was initiated against petitioner even after the year 1997. No
reason whatsoever has been assigned for such any action or omission on the part of respondent in
not initiating any departmental proceedings or making correspondence calling upon the petitioner
to join service. This prima facie belies the stand taken by the respondent as abandonment has to be
proved like any other fact in issue. The petitioner, on the other hand, as PW1 in cross-examination
has specifically denied that she used to leave the job in between and attended the work
intermittently rather she has claimed that intermit breaks had been deliberately given to her by the
respondent in the service record of petitioner so that petitioner did not complete 160 days of work
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as required for Pangi Tehsil area and also for applicability of Section 25-B of the Act. As such, in
absence of any specific and reliable evidence led by respondent, it would be unsafe to hold that
respondent had established plea of abandonment.
14. A bare glance on the mandays chart Ex. RW1/B would reveal that petitioner had
worked for 185 ½ days in the year 1994, 103 days in 1995, 173 days in 1996 and 165 ½ days in
1997 and thus a total of her service in 1994 to 1997 in 04 years she had worked for 627 days in her
entire service period. Be it noticed that petitioner had worked for more than 160 days and as there
is no reference from the Labour Commissioner, Shimla on the point of artificial breaks, this court is
to confine its findings only with regard to alleged illegal termination. It is evident from mandays
chart Ex. RW1/B that in the year 1997 the petitioner had merely worked for 165 ½ days and thus
immediately in preceding 12 calendar months from the month of termination of petitioner had
rendered service of 160 days so as to meet requirement of law of having continuous service of one
year and thus it was at all required from respondent to have issued a notice envisaged under Section
25-F of the Act. As such, the respondent is held to have violated the provisions of Section 25-F of
the Act.
15. Ld. counsel for petitioner has contended with vehemence that large number of workers
who were junior to petitioner had been appointed and these workers have been retained in service
and regularized. The grievance of petitioner remains that principle of 'Last come First go' was not
followed as the juniors were retained and services of petitioner despite being senior was terminated
without any valid reason. Ex. RW1/C is the year-wise mandays of daily waged workers who were
junior to the petitioner and had joined in the year 1997 or thereafter. All of these co-workers shown
in Ex. RW1/C the year-wise mandays details of workers of Division HPPWD Killar were certainly
junior to petitioner who were given sufficient work existing in those years more than 200 days in a
year whereas the petitioner had been not given muster roll for the whole month. Ex. RW1/C also
established that all the co-workers shown in this document have worked for more than 160 days in
most of the years although they were junior to petitioner. Evidently, there is no iota of evidence of
respondent establishing that petitioner was called upon to join for service at any time after
November, 1997 even at the time when junior persons were reengaged. That being so the
respondent had certainly violated the provisions of Section 25-G of the Act as the juniors workers
mentioned in para No.10 of the affidavit were retained whereas petitioner was senior from these co-
workers having joined service in 1994 was terminated and even thereafter respondent omitted to
afford opportunity to petitioner for reemployment for work which also violates the provisions of
Section 25-H of the Act. Ld. Counsel for petitioner has placed reliance upon judgment of Central
Bank of India vs. S. Satyam, 1996 (5) SCC 419 in which Hon'ble Apex Court has held that for the
applicability of Sections 25-G and 25-H of the Act, there was no necessity of claimant/petitioner
to have worked for 240 days as in case of provisions of Section 25-F of the Act.
16. Ld. Dy. D.A. representing respondent has made futile attempt to justify engagement
junior worker and their retention in service in pursuance to Awards passed by Labour Court. On the
other hand, Ld. Counsel for petitioner relied upon Ex. PW1/C the order dated 27-8-2015 of Hon'ble
High Court of H.P. vide which the orders qua termination passed as against respondent and several
other were quashed. That being so the relief was granted in favour of the petitioner who was
directed to be reinstated with others. As such, even when petitioner is proved to have not worked
for more than 160 days in preceding 10 years which entitled him for regularization of his service
per government policy, yet respondent is not absolved from its accountability for complying the
provisions of Sections 25-G and 25-H of the Act and as such, it is held that respondent had violated
the provisions of Sections 25-F, 25-G and 25-H of the Industrial Disputes Act.
17. Ld. Counsel for petitioner has contended that after petitioner's termination in
November, 1997, she had remained unemployed and was not earning anything thereafter as such
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was entitled for full back wages. Repudiating the arguments of Ld. Counsel of petitioner, ld. Dy.
D.A. for the State has taken this court through cross-examination of the petitioner who has admitted
that she had cultivable land with her and also worked a private labourer. Thus, plea of having
remained not gainfully employed gets belied admission of petitioner in cross examination in which
she had maintained that she had been earning from agricultural land as well as she has been
working as daily wager privately. Reliance has been placed on the judgment of Hon'ble Apex Court
North East Karnataka Road Transport Corporation vs. M. Nagangouda (2007) 10 SCC 765
in which Division Bench comprising of Justice A.R. Lakshmanan and Justice Altamas Kabir had
held that 'term gainfully employment would also include self employment wherefrom income
is generated. It was income either from employment in an establishment or from self
employment merely differentiates the sources from which income is generated, the end use
being the same'. Applying the ratio of judgment of 2007 (supra) to this case since the petitioner
was earning from her agricultural and manual pursuits, the same were sufficient to maintain her and
her family. It is thus held that petitioner was gainfully employed. Be it stated here that Hon'ble
Apex Court in Deepali Gundu Surwase's case has held that the Labour Court was not justified in
holding that merely because the respondent was receiving agriculture income, she cannot be treated
to be engaged in gainful employment. Since the petitioner had income from agriculture pursuits for
her livelihood it cannot be stated that petitioner was not gainfully employed and thus would not be
entitled full back wages. In view of the forgoing discussion, it is held that the relationship of
workman and employer existed between petitioner and respondent and that petitioner was illegally
retrenched without compliance of Sections 25-F, 25-G and Section 25-H of the Act although
remained gainfully employed after her retrenchment. Thus, applying the ratio of judgment of
Hon'ble Apex Court (2007 supra), it may not be erroneous to hold that petitioner was gainfully
employed and thus would be not entitled for back wages for the period she was out of job on being
terminated by the respondent.
18. Lastly, Ld. Dy. D.A. for State has contended with vehemence that there is inordinate
and explained delay which disentitles petitioner relief claimed for by him. On the other hand, Ld.
Counsel for the petitioner has relied upon the judgment of Hon'ble Apex Court titled Raghubir
Singh vs. General Manager, Haryana Roadways, Hissar reported in 2014 Lab IC 4266 (SC)
and the relevant paras of the judgment are produced below for reference:
“12. Therefore, in our considered view, the observations made by this Court in the
Rajasthan State Agriculture Marketing Board case (supra) upon which the learned
Additional Advocate General for the State of Haryana has placed reliance cannot be
applied to the fact situation of the case on hand, for the reason that the Labour Court
has erroneously rejected the reference without judiciously considering all the relevant
factors of the case particularly the points of dispute referred to it and answered the 2nd
issue regarding the reference being barred by limitation but not on the merits of the
case. The said decision has no application to the fact situation and also for the reason
the catena of decisions of this Court referred to supra, wherein this Court has
categorically held that the provisions of Limitation Act under Article 137 has no
application to make reference by the appropriate government to the Labour
Court/Industrial Tribunal for adjudication of existing industrial dispute between
workmen and the employer.
13. In the case on hand, no doubt there is a delay in raising the dispute by the
appellant; the Labour Court nevertheless has the power to mould the relief
accordingly. At the time of adjudication, if the dispute referred to the Labour
Court is not adjudicated by it, it does not mean that the dispute ceases to exist.
The appropriate government in exercise of its statutory power under Section 10(1)(c)
of the Act can refer the industrial dispute, between the parties, at any time, to either the
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jurisdictional Labour Court/Industrial Tribunal as interpreted by this Court in the Avon
Services case referred to supra. Therefore, the State Government has rightly exercised
its power under Section 10(1)(c) of the Act and referred the points of dispute to the
Labour Court as the same are in accordance with the law laid down by this Court in
Avon Services & Sapan Kumar Pandit cases referred to supra.
14. Further, the workman cannot be denied to seek relief only on the ground of delay
in raising the dispute as held in the case of S.M. Nilajkar & Ors. vs. Telecom
District Manager, Karnataka[4] it was held by this Court as follows—
“17. It was submitted on behalf of the respondent that on account of delay in raising
the dispute by the appellants the High Court was justified in denying relief to the
appellants. We cannot agree...... In Ratan Chandra Sammanta and Ors. vs. Union of
India and Ors. (supra)1993 AIR SCW 2214, it was held that a casual labourer
retrenched by the employer deprives herself of remedy available in law by delay itself,
lapse of time results in losing the remedy and the right as well. The delay would
certainly be fatal if it has resulted in material evidence relevant to adjudication being
lost and rendered not available. However, we do not think that the delay in the case at
hand has been so culpable as to disentitle the appellants for any relief.....” (Emphasis
laid by the Court) In view of the legal principles laid down by this Court in the above
judgment, the reference of the industrial dispute made in the case on hand by the State
Government to the Labour Court to adjudicate the existing industrial dispute between
the parties was made within a reasonable time, considering the circumstances in which
the workman was placed, firstly, as there was a criminal case pending against her and
secondly, the respondent had assured the workman that she would be reinstated after
her acquittal from the criminal case. Moreover, it is reasonable to adjudicate the
industrial dispute inspite of the delay in raising and referring the matter, since there is
no mention of any loss or unavailability of material evidence due to the delay. Thus,
we do not consider the delay in raising the industrial dispute and referring the same to
the Labour Court for adjudication as gravely erroneous and it does not debar the
workman from claiming rightful relief from her employer.
15. In the case of Ajaib Singh vs. The Sirhind Co-operative Marketing-cum-Processing
Service Society Limited & Anr.[5] this Court has opined that relief cannot be denied to
the workman merely on the ground of delay, stating that:—
“10. It follows, therefore, that the provisions of Article 137 of the Schedule to
Limitation Act, 1963 are not applicable to the proceedings under the act and that the
relief under it cannot be denied to the workman merely on the ground of delay. The
plea of delay if raised by the employer is required to be proved as a matter of fact by
showing the real prejudice and not as a merely hypothetical defence. No reference to
the labour court can be generally questioned on the ground of delay alone. Even in a
case where the delay in shown to be existing, the tribunal, labour court or board,
dealing with the case can appropriately mould the relief by declining to grant back
wages to the workman till the date she raised the demand regarding her illegal
retrenchment/ termination or dismissal. The Court may also in appropriate cases direct
the payment of part of the back wages instead of full back wages.....” (Emphasis laid
by the Court)
16. Hence, we are of the opinion, having regard to the fact and circumstances of the case
that there is no delay or latches on the part of the workman from the date of her
acquittal in the criminal case. Thereafter, upon failure of the respondent in adhering to
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the assurance given to the workman that she would be reinstated after her acquittal
from the criminal case, the workman approached the conciliation officer and the State
Government to make a reference to the Labour Court for adjudication of the dispute
with regard to the order of dismissal passed by the respondent. Keeping in mind the
date of acquittal of the appellant and the date on which she approached the conciliation
officer by raising the dispute, since the respondent had not adhered to its assurance, the
State Government had rightly referred the dispute for its adjudication. Therefore it
cannot be said that there was a delay on the part of the appellant in raising the dispute
and getting it referred to the Labour Court by the State Government.
17. Further, the Labour Court on an erroneous assumption of law framed the
additional issue regarding the limitation in raising the dispute and its reference
by the State Government to the Labour Court. Thus, the Labour Court has ignored
the legal principles laid down by this Court in the cases referred to supra. The award
passed by the Labour Court was accepted erroneously by both the learned single Judge
and the Division Bench of the High Court by dismissing the Civil Writ Petition & the
Letters Patent Appeal without examining the case in its proper perspective, keeping in
view the power of the State Government under Section 10(1)(c) and the object and
intendment of the Act. Not adjudicating the existing industrial dispute on merits
between the parties referred to it may lead to disruption of industrial peace and
harmony, which is the foremost important aspect in Industrial Jurisprudence as the
same would affect the public interest at large.
19. Ld. Dy. D.A. representing respondent department has also contended with vehemence
that claim petition is barred by limitation on account of delay and laches. It has been pointed that
termination of petitioner in this case took place on 1997 and the industrial dispute was raised after
several years of retrenchment. Repudiating the argument by Ld. counsel, Ld. AR for the petitioner
has placed reliance upon judgment reported in 2007 LHLJ 903 Hon'ble High Court of H.P.
(Bhatag Ram's case) in which it has been held that delay in raising dispute may be considered by
court at the time of granting final relief however in various other judgments even longer delay has
been condoned. In Divisional Manager, HPFC & another vs. Garibu Ram, Latest HLJ 2007
(HP) 1160, delay of more than 10 years was condoned besides Hon'ble High Court has held that
principle of Limitation Act is not applicable to the industrial dispute. Similar view was taken by
Hon'ble Apex Court in Ajayab Singh vs. Sirhind Co-operative Marketing-cum-Processing
Society Limited and Another, (1999) 6 SCC 82 in which it has been held that the principle of
Limitation Act, 1963 did not apply to the proceeding under the Industrial Disputes Act.
20. Relying upon the aforestated judgment, it has been contended that claim of petitioner
cannot be defeated on the point of delay and laches. Repudiating arguments advanced by ld.
counsel for petitioner, Ld. Dy. D.A. has placed reliance upon the judgment of Hon'ble Apex Court
titled as Assistant Engineer, Rajasthan State Agriculture Marketing Board, Sub-Division
Kota and Mohan Lal [2013 (139) FLR 125], the relevant para of the judgment are produced
below for reference: Industrial Disputes Act, 1947-Sections 25-F and 10-Limitation Act, 1963-
Section 5-Industrial dispute—
Termination of service-Finding of Labour Court that workman had completed 240
days in calendar year and her termination was in violation of Section 25-F of the
I.D.Act- Workman worked from 1-11-1984 to 17-2-1986 in all 286 days during
employment. her services terminated on 18.2.1986. Industrial dispute raised after 6
years of termination. Admitted delay of 6 years not kept in view by the Labour Court-
Judicial discretion exercised by the Labour Court flawed and unsustainable.
Reinstatement of the workman not the appropriate relief. In lieu of reinstatement
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compensation of Rs.one lac directed to be paid to the workman by the appellant
employer within six weeks failing which interest @ 9% p.a. will be payable.
[Paras 21 and 22]
Limitation Act, 1963. Section 5-Industrial Disputes Act, 1947-Section 25-F-
Termination of service- Industrial dispute raised after six years- Limitation Act not
applicable to reference made under the I.D. Act-Delay in raising industrial
disputes definitely an important circumstances which the Labour Court must
keep in view before granting relief”.
21. Repudiating the arguments by Ld. Dy. D.A. for the State, Ld. Counsel for
claimant/petitioner has relied upon the judgment of Hon'ble Apex Court in case titled as Tapash
Kumar Paul vs. BSNL & another reported in AIR 2015 SC 357 wherein Hon'ble Court held that
a Court may pass an order of reinstatement by awarding compensation but the same has to be based
on justifiable grounds. In this judgment, it was held that compensation can be granted in a situation
where the industry is closed or that employees has superannuated or going to retire shortly and no
period is left to her credit or where workman has been rendered in capacitated to discharge duties
cannot be reinstated and/or fourthly when she has lost confidence of the management to discharge
duties. It was observed that there may be appropriate cases on facts which may justify substituting
an order of reinstatement by award of compensation but that has to be supported by some legal
and justifiable reasons indicating why the reinstatement should be followed to be substituted
by award of compensation. Ld. Counsel for the petitioner with the aid of above-said judgment had
argued that there are only four situations when a worker may be awarded compensation instead of
reinstatement but the judgment has certainly not been correctly appreciated by Ld. Counsel as this
judgment postulates probable four situations which are illustrate in nature where compensation may
be awarded instead of reinstatement but that does not mean that except the four grounds, no other
ground would be appropriate for awarding compensation. In the case in hand before this court, it
has come that petitioner had abandoned the job who did not report for duty for several years and
later gave notice requesting for joining of duties but the conditions in para no.5 of judgment (2015
supra) even if not met requirement, cannot be a ground to reinstate the petitioner and it is only
compensation which would be appropriate relief. Ld. Counsel for the petitioner has relied upon the
judgment of Hon'be Apex Court titled as Deepali Gundu Surwase vs. Kranti Junior Adhyapak
Mahavidyalaya (D.Ed.) and Ors. reported in AIR 2014 SC (Supp) 121, Raghubir Singh vs.
General Manager, Haryana Roadways, Hissar reported in 2014(3) Apex Court Judgments 652.
I have gone through these judgments and of view that they don't come to rescue the petitioner on
point of reinstatement instead of compensation. Ld. Dy. D.A. for State on the other hand has relied
upon the judgment of Hon'ble Apex Court in Vice Chancellor, Lucknow University, Lucknow,
Uttar Pradesh vs. Akhilesh Kumar Khare & another reported in AIR 2015 SC 3473. It has
been contended that engagement of claimant/petitioner in this case was not through regular mode of
recruitment and applying the ratio of this judgment AIR 2015 SC supra, claim of petitioner for
reinstatement can be negated and thus compensation would be sufficient for redressal of grievance
of the claimant/petitioner. Similarly, in 2016 (1) Him. L.R. 502 titled as State of Himachal
Pradesh and another vs. Chaman Singh relied by Ld. AR for petitioner interpretation of Section
137 of Limitation Act was involved which provides that Article 137 of Limitation Act did not apply
to industrial disputes. In 2014 (3) Apex Court Judgment 652 (SC) similar view was reiterated
which clearly mandates that claimant/petitioner cannot be denied relief sought for merely on the
ground of delay and laches. That being so, the law remains as it was that ground of delay and
laches, claimant/petitioner cannot be denied relief rather the court has to consider various aspects
before moulding relief and the case in hand it would not be erroneous to mention here that the
claimant/petitioner can be reasonably indemnified by ordering compensation and not by
reinstatement. In so far as judgment of AIR 2015 SC 1373 titled as Mackinon Machenize &
Company Ltd. vs. Mackinon Employees Union is concerned, the Hon'ble Apex Court has held
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on closure of unit of company principle of 'Last come First go' was not followed which violated
Section 25-G of Industrial Disputes Act and retrenchment was held illegal entitling petitioner for
retrenchment compensation. Since the facts of case of Mackinon Machenize's case are different
from case in hand as in former closure of unit of company was involved whereas in case in hand
before this court, there is no closure of company rather it is the department of HPPWD which had
engaged petitioner without following of the procedure although subject to funds and availability of
work. As such, when there is no closure of any unit by respondent which the petitioner was
engaged, judgment of Mackinon Machenize cannot be made applicable.
22. After hearing the rival contentions of the parties and case law relied by them, it can be
safely concluded that delay in raising industrial dispute is certainly important aspect/circumstance
which court has to keep in mind while exercising discretion. In para nos. 20 and 21 of the judgment
as referred to in this case reported in 2013 (136) FLR 893 (SC) titled as Assistant Engineer
Rajasthan Development Corporation and another vs. Geetam Singh provides that before
exercising its judicial discretion, the Labour Court or Tribunal has to keep in mind all relevant
factors including the mode and manner of appointment, nature of employment, length of service,
the ground on which termination has been set aside and delay in raising industrial dispute before
grant of relief. It was observed by the Hon'ble Apex Court in judgment (2013 I) before that
workman had worked for 286 days and had raised industrial dispute in 1992 whereas her services
have been terminated in 1986 and she raised industrial dispute after six years. The Hon'ble Apex
Court has held that though compensation awarded by Single Judge of the Hon'ble High Court was
too low and liable to be enhanced by the Division Bench but surely reinstatement of the
workman in the facts and circumstances is not the appropriate relief and thus Hon'ble Apex
Court awarded a lump-sum of Rs.1 lakh along-with interest @ 9% per annum if the respondent
failed to make payment of compensation within six weeks from the date of judgment. In the case in
hand before this court factors which have weighed are that the petitioner in all remained engaged
for about 04 years and actually worked for 627 days as per mandays chart on record and that the
services of petitioner were disengaged in November, 1997 who worked as non skilled worker and
had raised industrial dispute by issuance of demand notice after about fourteen years i.e. demand
notice was given on 24-12-2011. Taking into consideration factors mentioned above in pursuance
to judgments of Hon'ble Apex Court referred to above, petitioner would not be entitled either for
reinstatement or for back wages but a lump-sum compensation would be appropriate relief in view
of judgment 2013 (139) FLR 25 (SC). The judgments relied upon by ld. counsel for petitioner on
the matter of delay and laches is more or less settled law that claim of the petitioner could not be
solely declined on the ground of delay and laches. Similarly, judgment of Hon'ble Apex Court in
2014 titled as Raghubir Singh's case also does not come to the rescue of the petitioner as in this
judgment also the Hon'ble Apex Court has reiterated the mandate as given by the Hon'ble Apex
Court in previous judgment in the year 2013 i.e. Assistant Engineer, Rajasthan State
Agriculture Marketing Board, Sub-Division Kota and Mohan Lal's case. I have gone through
these judgments which are not attracted in this present case as this court not declining relief to the
petitioner on the ground of limitation rather on the basis of guidelines of Hon'ble Apex Court laid
down in judgment of 2013 as referred to above. Ld. Dy. D.A. representing State/respondents has
relied upon the judgment of Hon'ble Apex Court reported in AIR 2016 SC 2984 titled as
Prabhakar vs. Joint Director Sericulture Department and another. I have gone through the
judgment which deals reference under Section 10 of the Industrial Disputes Act in which it has
been held that Hon'ble High Court can intervene in writ jurisdiction under Article 226 when
reference has been challenged on the ground of inordinate unexplained delay. Since the reference
made by the Government in this case is not in challenge before this Court, the above said judgment
would not be attracted in the facts and circumstances of the case. Moreso in view of observation
qua facts made in judgment (2016) supra, claimant/petitioner was found to be an educated person
who was working as Clerk whereas in case before this Court, the petitioner is an illiterate unskilled
worker. For the above-said reasons, plea of delay and laches would not eclipse claim of petitioner.
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23. In view of foregoing discussion, a lump-sum compensation of Rs. 80,000/- (Rupees
eighty thousand only) would be an appropriate relief to which the petitioner is entitled in the facts
and circumstances of the case as stated above. It is further made clear that amount of compensation
shall be paid within four months from the date of receipt of Award failing which the petitioner
would be entitled for interest @ 9% per annum from date of Award till its realization. Issues No. 1
to 3 are answered accordingly.
Issue No. 4 :
24. On the plea of non-maintainability of the claim petition under Section 10 of the
Industrial Disputes Act, Ld. Dy. D.A. representing respondent department has failed to allege in
reply in what manner petition is not maintainable. Thus, vague plea merits rejection outright.
Otherwise also, from pleadings and evidence on record, no inference of claim petition being not
maintainable could be raised against claimant/petitioner. This issue is decided in favour of
petitioner and against the respondent.
RELIEF
25. As sequel to my findings on foregoing issues, the respondent is hereby directed to pay
the compensation of Rs.80,000/- (Rupees eighty thousand only) to the petitioner in lieu of the
reinstatement, back wages, seniority and past service benefits. Amount of compensation so
awarded will be paid by the respondent to the petitioner within four months from the date of receipt
of Award failing which the respondent shall be liable to pay the interest @ 9% per annum on the
said amount from the date of award till the date of its realization. In the peculiar circumstances of
the case, the parties are left to bear their own costs.
26. The reference is answered in the aforesaid terms.
27. A copy of this Award be sent to the appropriate Government for publication in the
official gazette.
28. File, after due completion be consigned to the Record Room.
Announced in the open Court today this 4th day of October, 2017.
Sd/-
(K. K. Sharma),
Presiding Judge,
Labour Court-cum-Industrial Tribunal,
Kangra at Dharamshala, H.P.
___________
IN THE COURT OF SHRI K. K. SHARMA, PRESIDING JUDGE, LABOUR COURT-
CUM-INDUSTRIAL TRIBUNAL, KANGRA AT DHARAMSHALA (HP)
Ref. No.
:
509/2015
Date of Institution :
09-11-2015
Date of Decision
:
04-10-2017
Smt. Naino Devi w/o Late Shri Prem Chand, r/o Village Tikri Luj, P.O. Luj, Tehsil Pangi,
District Chamba, H.P.
...Petitioner.
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Versus
The Executive Engineer, Killar Division, I.&P.H./H.P.P.W.D., Killar (Pangi) District
Chamba, H.P.
...Respondent.
Reference under Section 10 (1) of the Industrial Disputes Act, 1947
For the Petitioner
: Sh. Rajeev Dharmani, Adv.
For the Respondent : Sh. Sanjeev Singh Rana, Dy. D.A.
AWARD
The reference given below has been received from the appropriate Government for
adjudication:
“Whether the industrial dispute raised by the worker Smt. Naino Devi w/o Late Shri
Prem Chand, r/o Village Tikri Luj, P.O. Luj, Tehsil Pangi, District Chamba, H.P.
before the Executive Engineer, Killar Division, I. & P.H./H.P.P.W.D., Killar (Pangi),
District Chamba, H.P. vide demand notice dated nil received in Labour Office on dated
16-11-2011 regarding her illegal termination of services during August, 2004 suffers
from delay and latches? If not, Whether termination of services of Smt. Naino Devi
w/o Late Shri Prem Chand, r/o Village Tikri Luj, P.O. Luj, Tehsil Pangi, District
Chamba, H.P. by the Executive Engineer, Killar Division, I.&P.H./H.P.P.W.D., Killar
(Pangi), District Chamba, H.P. during August, 2004, without complying the provisions
of the Industrial Disputes Act, 1947, is legal and justified? If not, what amount of back
wages, seniority, past service benefits and compensation the above aggrieve workman
is entitled to from the above employer?”
2. On receipt of reference from appropriate government, notices were issued to the parties
in pursuance to which claimant/petitioner has filed statement of claim.
3. Brief facts as enumerated in the present claim petition by the petitioner above named
revealed that she had been initially engaged as daily wage Beldar on muster roll basis in the year
1988 who continuously worked till 2004 with the respondent. Averments made in the petition
further revealed that petitioner had worked for 160 days in each calendar year as per the criteria
prescribed for tribal area of Pangi Tehsil, District Chamba and became eligible for continuous
service envisaged under statutory provisions of Section 25-B of the Industrial Disputes Act, 1947
(hereinafter referred to as "the Act" for brevity). Averments made in the petition revealed that the
services of petitioner had been interrupted by way of intermittent/artificial breaks given by the
respondent/department deliberately and as such breaks are required to be counted as 'continuous
services' for the purposes of calculation of 160 days for the applicability of Section 25-B of the Act.
The grievance of petitioner remains that respondent/department had terminated/disengaged
petitioner from daily wage service orally without issuing one month's notice in writing stipulating
therein reason for retrenchment besides no retrenchment compensation was paid to petitioner when
respondent had been illegally terminated. It is also alleged that respondent had not followed the
provisions of Section 25-F of the Act while disengaging petitioner from service. It is stated that
petitioner is very poor who has no source of income besides after termination of the services of
petitioner, petitioner had approached the respondent time and again but of no avail. The grievance
of petitioner further remains that when the services of petitioner had been terminated,
respondent/department had reengaged number of new workman from time to time and while doing
so, respondent had not followed the principle of 'Last come, First go' envisaged under Section 25-G
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of the Act. It is further alleged that respondent/department had continuously retained junior to
petitioner who are still in service namely Suraj Ram who appointed in 1997, Chunku Ram in 2000,
Budhi Ram in 2003 and Dev Raj in 2007. The claimant/petitioner claimed that she had spotless
service record who never been charge-sheeted for any act of indiscipline or negligence or her
conduct and even at the time of verbal termination, no charge-sheet had been served upon her and
at the same time, no opportunity of hearing had been afforded to him. The petitioner also alleges
that she has remained unemployed ever since her illegal termination from year of 2004 till the date
of institution of present claim petition who had been nowhere gainfully employed and was thus
entitled for full back wages. Accordingly alleging respondent to have committed violation of
statutory provision of Section 25-F, Section 25-G and Section 25-H of the Industrial Disputes
Act, 1947 and thus petitioner prays for setting aside oral order of termination/retrenchment of
respondent in the year 2004. She further prayed for reinstatement in service w.e.f. year 2004 along-
with back wages, seniority including continuity in service as petitioner as she had remained
unemployed since the date of her illegal termination. The petitioner has also prayed that period of
intermittent/fictional breaks deliberately given time and again during entire service of petitioner
between 1988 to 2004 be counted 160 days continuous service and regularization of the services of
petitioner w.e.f. 1-1-1997 under 10 years regularization policy and to any other relief petitioner is
entitled.
4. The respondent contested claim petition, filed reply inter-alia taken preliminary
objections of maintainability, claim petition being bad on account of delay and laches. On merits
denied that petitioner had worked for more than 160 days in each calendar year rather clarified by
stating that petitioner was engaged as daily waged Beldar in 1991 who remained engaged till 2004
but had worked intermittently as petitioner used to come and attend the work at her own sweet will
and convenience. Relying upon the mandays chart, it has been categorically pleaded by the
respondent that petitioner had not completed 160 days in each calendar year as required for tribal
area of Pangi Tehsil. The allegations of fictional breaks given by respondent to the petitioner have
been specifically denied. In so far as engagement of persons junior to petitioner mentioned in para
No. 10 of the claim petition were appointed as per order of Labour Court and no other juniors to the
petitioner had been retained in service by the respondent. On the plea of termination of service of
petitioner, respondent specifically alleges that petitioner had left the job at her own will therefore
serving of notice or pay in lieu thereof was not required. Reiterating its stand respondent has
maintained that petitioner had left the work of her own sweet will and the persons mentioned in
para no.10 are stated to have engaged as per direction of the Labour Court-cum-Industrial Tribunal
Dharamshala and respondent had not violated the principle of 'Last come, First go'. It is also
contended that if petitioner had been terminated in 2004 she would have definitely raised industrial
dispute immediately and that after thirteen years petitioner is stated to be agitating the matter which
is bad on account of delay and laches. It is also contended that since the services of petitioner had
not been terminated by the respondent, question of issuance of notice or wages in lieu thereof did
not arise and at the same time, there was no necessity for charge-sheet or issuing any notice of
petitioner after her termination. It is contended that petitioner was agriculturist and gainfully
employed and was thus not entitled for back wages.
5. The petitioner filed rejoinder, reiterated her stand as maintained in the claim petition.
Further asserted that provisions of Limitation Act did not eclipse the claim of petitioner in totality
besides allegation of violation of principle of 'Last come First go' was specifically denied.
6. In order to prove her case, petitioner had examined herself as PW1 tendered/proved her
affidavit Ex. PW1/A under Order 18 Rule 4 CPC, Ex. PW1/B copy of demand notice, Ex. PW1/C
copy of order dated 27-8-2015 and closed evidence. On the other hand, repudiating the evidence
led by the petitioner, respondent examined RW1 Shri D.R. Chauhan, the then Executive Engineer,
HPPWD Division Killar as RW1 tendered/proved mandays chart of petitioner Ex. RW1/B, Ex.
RW1/C copy of mandays chart of co-workers and closed the evidence.
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7. I have heard the ld. counsel of petitioner and Ld. Dy. D.A. representing respondent, gone
through records of the case carefully relevant for disposed of this case.
8. From the contentions raised, following issues were framed on 29-04-2016 for
determination:
1. Whether the industrial dispute raised by petitioner vide demand notice dated nil qua
her termination of service during August, 2004 by respondent suffers from the vice of
delay and laches as alleged? If so, its effect?
...OPP.
2. Whether termination of the services of the petitioner by the respondent during August,
2004 is/was illegal and unjustified as alleged?
...OPP.
3. If issue No. 2 is proved in affirmative, to what service benefits the petitioner is entitled
to?
...OPP.
4. Whether the claim petition is not maintainable in the present form as alleged? ...OPR.
Relief.
9. For the reasons detailed here under, my findings on the above issues are as follows:—
Issue No. 1 : Discussed
Issue No. 2 : Yes
Issue No. 3 : Discussed
Issue No. 4 : No
Relief. : Petition is partly allowed awarding compensation of Rs.1,70,000/- per operative part of
award.
REASONS FOR FINDINGS
Issues No. 1 to 3 :
10. All these issues have been taken up together for discussion being interconnected which
can be disposed of simultaneously without repetition of evidence.
11. Relationship of petitioner having been engaged as daily waged Beldar by respondent
on muster roll basis in the year 1988 continuously worked till August, 2004 with the respondent.
Admittedly, petitioner was engaged without any written order or settlement of terms and conditions
by the respondent. It is equally not in dispute that no written order was passed while terminating
service of the petitioner as claim of respondent remains that it had not retrenched petitioner from
service who had abandoned the job of her own and used to work intermittently as per her own wish
and convenience. However, there is dispute with regard to period for which the petitioner has
worked with respondent. It is evident from mandays chart Ex. RW1/B coupled with pleadings of
respondent that petitioner had worked from 1991 till August, 2004 whereas the claimant/petitioner
alleges that he had worked from 1991 to 2004. Since the claim of petitioner is not substantiated
from any corresponding documentary evidence on record, the only inference in such situation could
be drawn is that petitioner had been factually engaged in 1991 and not in 1988. Admittedly, the
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reference of appropriate govt. does not relate to plea of fictional breaks but only with regard to
petitioner's termination from service. In the backdrop of foregoing admitted facts on record, claim
of petitioner requires to be adjudicated with a view to determine if petitioner is entitled for relief of
reinstatement and back wages along-with seniority and past service benefits and compensation as
claimed by him.
12. Stepping into witness box as PW1 has sworn in affidavit Ex. PW1/A reiterating and
reaffirming her pleadings as stipulated in claim petition. In her affidavit she has claimed to have
worked with the respondent/department for more than 160 days in Pangi Sub Division, Chamba
District and remained engaged from 1991 to August, 2004. She has also stated on oath that no
notice under Section 25-F of the Act was given by the respondent before terminating her service
and at the same time no compensation in lieu thereof notice period was paid to her and thus her
termination was illegal and void entitling petitioner benefit of reinstatement of service with full
back wages and all the other consequential service benefits. The petitioner has further alleged on
oath that respondent/department after terminating her services in August, 2004 by oral order had
engaged several co-workers who were junior to petitioner were retained in service. Not only this,
the persons who were junior to petitioner are stated to have been regularized in service and thus
respondent had not followed the mandate of Sections 25-G and 25-H of the Act which was
obligatory on its part. The case of petitioner also remains that she had served respondent with due
diligence and had spotless service record as respondent/department had never called any
explanation or raised charge-sheet against her but even while retrenching petitioner from service,
no notice was given. The petitioner has also explained reason for not approaching the authorities
under Labour Act and thereafter before this Tribunal, as there existed no road between Chamba
town to Pangi Tehsil till 2011 and petitioner had moved before the Labour Officer raising demand
notice consequent upon which a failure report was submitted and as the Labour Commissioner did
not make reference for industrial dispute raised by petitioner, the petitioner had moved before the
Hon'ble High Court by filing CWP where direction was passed for making reference to the Labour
Court due to which delay had occurred and same was satisfactorily explained.
13. In so far as plea of abandonment raised by respondent is concerned, the same merits
rejection in view of the fact that respondent had failed to produce any record by which it could be
established that whenever petitioner absented from her duty as also reflected in mandays chart Ex.
RW1/B any notice or letter was ever issued. On this point respondent as RW1 has specifically
admitted that whenever petitioner abandoned the job, no notice had been issued. RW1 specifically
admitted that no departmental inquiry was initiated against petitioner even after August, 2004. No
reason whatsoever has been assigned for such any action or omission on the part of respondent in
not initiating any departmental proceedings or making correspondence calling upon the petitioner
to join service. This prima facie belies the stand taken by the respondent as abandonment has to be
proved like any other fact in issue. The petitioner, on the other hand, as PW1 in cross-examination
has specifically denied that she used to leave the job in between and attended the work
intermittently rather she has claimed that intermit breaks had been deliberately given to her by the
respondent in the service record of petitioner so that petitioner did not complete 160 days of work
as required for Pangi Tehsil area and also for applicability of Section 25-B of the Act. As such, in
absence of any specific and reliable evidence led by respondent, it would be unsafe to hold that
respondent had established plea of abandonment.
14. A bare glance on the mandays chart Ex. RW1/B would reveal that petitioner had
worked for 139 days in the year 1991, 61 days in 1992, 177 ½ days in 1994, 15 days in 1995, 159
days in 1996, 195 ½ days in 1997, 171 days in 1998, 101 days in 1999, 105 days in 2000, 102 days
in 2001, 153 days in 2002, 134 ½ days in 2003 and 86 days in 2004 and thus a total of her service
in 1991 to 2004 in 13 years she had worked for 1599.5 days in her entire service period. Be it
noticed that except the years 1991, 1992, 1995, 1996, and 1999 to 2004 petitioner had worked for
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more than 160 days and as there is no reference from the Labour Commissioner, Shimla on the
point of artificial breaks, this court is to confine its findings only with regard to alleged illegal
termination. It is evident from mandays chart Ex. RW1/B that in the year 2004 the petitioner had
merely worked for 95½ days and thus immediately in preceding 12 calendar months from the
month of termination of petitioner had not rendered service of 160 days so as to meet requirement
of law of having continuous service of one year and thus it was not at all required from respondent
to have issued a notice envisaged under Section 25-F of the Act. As such, the respondent is held to
have not violated the provisions of Section 25-F of the Act.
15. Ld. counsel for petitioner has contended with vehemence that large number of workers
who were junior to petitioner had been appointed and these workers have been retained in service
and regularized. The grievance of petitioner remains that principle of 'Last come First go' was not
followed as the juniors were retained and services of petitioner despite being senior was terminated
without any valid reason. Ex. RW1/C is the year-wise mandays of daily waged workers who were
junior to the petitioner and had joined in the year 1997 or thereafter. All of these co-workers shown
in Ex. RW1/C the year-wise mandays details of workers of Division HPPWD Killar were certainly
junior to petitioner who were given sufficient work existing in those years more than 200 days in a
year whereas the petitioner had been not given muster roll for the whole month. Ex. RW1/C also
established that all the co-workers shown in this document have worked for more than 160 days in
most of the years although they were junior to petitioner. Evidently, there is no iota of evidence of
respondent establishing that petitioner was called upon to join for service at any time after August,
2004 even at the time when junior persons were reengaged. That being so the respondent had
certainly violated the provisions of Section 25-G of the Act as the juniors workers mentioned in
para no.10 of the affidavit were retained whereas petitioner was senior from these co-workers
having joined service in 1991 was terminated and even thereafter respondent omitted to afford
opportunity to petitioner for reemployment for work which also violates the provisions of Section
25-H of the Act. Ld. Counsel for petitioner has placed reliance upon judgment of Central Bank of
India vs. S. Satyam, 1996 (5) SCC 419 in which Hon'ble Apex Court has held that for the
applicability of Sections 25-G and 25-H of the Act, there was no necessity of claimant/petitioner
to have worked for 240 days as in case of provisions of Section 25-F of the Act.
16. Ld. Dy. D.A. representing respondent has made futile attempt to justify engagement
junior worker and their retention in service in pursuance to Awards passed by Labour Court. On the
other hand, Ld. Counsel for petitioner relied upon Ex. PW1/C the order dated 27-8-2015 of Hon'ble
High Court of H.P. vide which the orders qua termination passed as against respondent and several
other were quashed. That being so the relief was granted in favour of the petitioner who was
directed to be reinstated with others. As such, even when petitioner is proved to have not worked
for more than 160 days in preceding 10 years which entitled him for regularization of his service
per government policy, yet respondent is not absolved from its accountability for complying the
provisions of Sections 25-G and 25-H of the Act and as such, it is held that respondent had violated
the provisions of Sections 25-G and 25-H of the Industrial Disputes Act.
17. Ld. counsel for petitioner has contended that after petitioner's termination in August,
2004, she had remained unemployed and was not earning anything thereafter as such was entitled
for full back wages. Repudiating the arguments of Ld. Counsel of petitioner, ld. Dy. D.A. for the
State has taken this court through cross-examination of the petitioner who has admitted that she had
cultivatable land with her and also worked a private labourer. Thus, plea of having remained not
gainfully employed gets belied admission of petitioner in cross examination in which she had
maintained that she had been earning from agricultural land as well as she has been working as
daily wager privately. Reliance has been placed on the judgment of Hon'ble Apex Court North
East Karnataka Road Transport Corporation vs. M. Nagangouda (2007) 10 SCC 765 in which
Division Bench comprising of Justice A.R. Lakshmanan and Justice Altamas Kabir had held that
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'term gainfully employment would also include self employment wherefrom income is
generated. It was income either from employment in an establishment or from self
employment merely differentiates the sources from which income is generated, the end use
being the same'. Applying the ratio of judgment of 2007 (supra) to this case since the petitioner
was earning from her agricultural and manual pursuits, the same were sufficient to maintain her and
her family. It is thus held that petitioner was gainfully employed. Be it stated here that Hon'ble
Apex Court in Deepali Gundu Surwase's case has held that the Labour Court was not justified in
holding that merely because the respondent was receiving agriculture income, she cannot be treated
to be engaged in gainful employment. Since the petitioner had income from agriculture pursuits for
her livelihood it cannot be stated that petitioner was not gainfully employed and thus would not be
entitled full back wages. In view of the forgoing discussion, it is held that the relationship of
workman and employer existed between petitioner and respondent and that petitioner was illegally
retrenched without compliance of Section 25-G and Section 25-H of the Act although remained
gainfully employed after her retrenchment. Thus, applying the ratio of judgment of Hon'ble Apex
Court (2007 supra), it may not be erroneous to hold that petitioner was gainfully employed and
thus would be not entitled for back wages for the period she was out of job on being terminated by
the respondent.
18. Lastly, Ld. Dy. D.A. for State has contended with vehemence that there is inordinate
and explained delay which disentitles petitioner relief claimed for by him. On the other hand, Ld.
Counsel for the petitioner has relied upon the judgment of Hon'ble Apex Court titled Raghubir
Singh vs. General Manager, Haryana Roadways, Hissar reported in 2014 Lab IC 4266 (SC)
and the relevant paras of the judgment are produced below for reference:
“12. Therefore, in our considered view, the observations made by this Court in the
Rajasthan State Agriculture Marketing Board case (supra) upon which the learned
Additional Advocate General for the State of Haryana has placed reliance cannot be
applied to the fact situation of the case on hand, for the reason that the Labour Court
has erroneously rejected the reference without judiciously considering all the relevant
factors of the case particularly the points of dispute referred to it and answered the 2nd
issue regarding the reference being barred by limitation but not on the merits of the
case. The said decision has no application to the fact situation and also for the reason
the catena of decisions of this Court referred to supra, wherein this Court has
categorically held that the provisions of Limitation Act under Article 137 has no
application to make reference by the appropriate government to the Labour
Court/Industrial Tribunal for adjudication of existing industrial dispute between
workmen and the employer.
13. In the case on hand, no doubt there is a delay in raising the dispute by the
appellant; the Labour Court nevertheless has the power to mould the relief
accordingly. At the time of adjudication, if the dispute referred to the Labour
Court is not adjudicated by it, it does not mean that the dispute ceases to exist.
The appropriate government in exercise of its statutory power under Section 10(1)(c)
of the Act can refer the industrial dispute, between the parties, at any time, to either the
jurisdictional Labour Court/Industrial Tribunal as interpreted by this Court in the Avon
Services case referred to supra. Therefore, the State Government has rightly exercised
its power under Section 10(1)(c) of the Act and referred the points of dispute to the
Labour Court as the same are in accordance with the law laid down by this Court in
Avon Services & Sapan Kumar Pandit cases referred to supra.
14. Further, the workman cannot be denied to seek relief only on the ground of delay
in raising the dispute as held in the case of S.M. Nilajkar & Ors. vs. Telecom
District Manager, Karnataka[4] it was held by this Court as follows-
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“17. It was submitted on behalf of the respondent that on account of delay in raising
the dispute by the appellants the High Court was justified in denying relief to the
appellants. We cannot agree...... In Ratan Chandra Sammanta and Ors. vs. Union of
India and Ors. (supra)1993 AIR SCW 2214, it was held that a casual labourer
retrenched by the employer deprives herself of remedy available in law by delay itself,
lapse of time results in losing the remedy and the right as well. The delay would
certainly be fatal if it has resulted in material evidence relevant to adjudication being
lost and rendered not available. However, we do not think that the delay in the case at
hand has been so culpable as to disentitle the appellants for any relief.....” (Emphasis
laid by the Court) In view of the legal principles laid down by this Court in the above
judgment, the reference of the industrial dispute made in the case on hand by the State
Government to the Labour Court to adjudicate the existing industrial dispute between
the parties was made within a reasonable time, considering the circumstances in which
the workman was placed, firstly, as there was a criminal case pending against her and
secondly, the respondent had assured the workman that she would be reinstated after
her acquittal from the criminal case. Moreover, it is reasonable to adjudicate the
industrial dispute inspite of the delay in raising and referring the matter, since there is
no mention of any loss or unavailability of material evidence due to the delay. Thus,
we do not consider the delay in raising the industrial dispute and referring the same to
the Labour Court for adjudication as gravely erroneous and it does not debar the
workman from claiming rightful relief from her employer.
15. In the case of Ajaib Singh vs. The Sirhind Co-operative Marketing-cum-Processing
Service Society Limited & Anr.[5] this Court has opined that relief cannot be denied to
the workman merely on the ground of delay, stating that:—
“10. It follows, therefore, that the provisions of Article 137 of the Schedule to
Limitation Act, 1963 are not applicable to the proceedings under the act and that the
relief under it cannot be denied to the workman merely on the ground of delay. The
plea of delay if raised by the employer is required to be proved as a matter of fact by
showing the real prejudice and not as a merely hypothetical defence. No reference to
the labour court can be generally questioned on the ground of delay alone. Even in a
case where the delay in shown to be existing, the tribunal, labour court or board,
dealing with the case can appropriately mould the relief by declining to grant back
wages to the workman till the date she raised the demand regarding her illegal
retrenchment/termination or dismissal. The Court may also in appropriate cases direct
the payment of part of the back wages instead of full back wages.....” (Emphasis laid
by the Court)
16. Hence, we are of the opinion, having regard to the fact and circumstances of the case
that there is no delay or latches on the part of the workman from the date of her
acquittal in the criminal case. Thereafter, upon failure of the respondent in adhering to
the assurance given to the workman that she would be reinstated after her acquittal
from the criminal case, the workman approached the conciliation officer and the State
Government to make a reference to the Labour Court for adjudication of the dispute
with regard to the order of dismissal passed by the respondent. Keeping in mind the
date of acquittal of the appellant and the date on which she approached the conciliation
officer by raising the dispute, since the respondent had not adhered to its assurance, the
State Government had rightly referred the dispute for its adjudication. Therefore it
cannot be said that there was a delay on the part of the appellant in raising the dispute
and getting it referred to the Labour Court by the State Government.
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17. Further, the Labour Court on an erroneous assumption of law framed the
additional issue regarding the limitation in raising the dispute and its reference
by the State Government to the Labour Court. Thus, the Labour Court has ignored
the legal principles laid down by this Court in the cases referred to supra. The award
passed by the Labour Court was accepted erroneously by both the learned single Judge
and the Division Bench of the High Court by dismissing the Civil Writ Petition & the
Letters Patent Appeal without examining the case in its proper perspective, keeping in
view the power of the State Government under Section 10(1)(c) and the object and
intendment of the Act. Not adjudicating the existing industrial dispute on merits
between the parties referred to it may lead to disruption of industrial peace and
harmony, which is the foremost important aspect in Industrial Jurisprudence as the
same would affect the public interest at large.
19. Ld. Dy. D.A. representing respondent department has also contended with vehemence
that claim petition is barred by limitation on account of delay and laches. It has been pointed that
termination of petitioner in this case took place on 2004 and the industrial dispute was raised after
several years of retrenchment. Repudiating the argument by Ld. Counsel, Ld. AR for the petitioner
has placed reliance upon judgment reported in 2007 LHLJ 903 Hon'ble High Court of H.P.
(Bhatag Ram's case) in which it has been held that delay in raising dispute may be considered by
court at the time of granting final relief however in various other judgments even longer delay has
been condoned. In Divisional Manager, HPFC & another vs. Garibu Ram, Latest HLJ 2007
(HP) 1160, delay of more than 10 years was condoned besides Hon'ble High Court has held that
principle of Limitation Act is not applicable to the industrial dispute. Similar view was taken by
Hon'ble Apex Court in Ajayab Singh vs. Sirhind Co-operative Marketing-cum-Processing
Society Limited and Another, (1999) 6 SCC 82 in which it has been held that the principle of
Limitation Act, 1963 did not apply to the proceeding under the Industrial Disputes Act.
20. Relying upon the aforestated judgment, it has been contended that claim of petitioner
cannot be defeated on the point of delay and laches. Repudiating arguments advanced by Ld.
Counsel for petitioner, Ld. Dy. D.A. has placed reliance upon the judgment of Hon'ble Apex Court
titled as Assistant Engineer, Rajasthan State Agriculture Marketing Board, Sub-Division
Kota and Mohan Lal [2013 (139) FLR 125], the relevant para of the judgment are produced
below for reference:
Industrial Disputes Act, 1947-Sections 25-F and 10-Limitation Act, 1963-Section 5-
Industrial dispute-Termination of service-Finding of Labour Court that workman had
completed 240 days in calendar year and her termination was in violation of section 25-F of
the I.D.Act- Workman worked from 1-11-1984 to 17-2-1986 in all 286 days during
employment her services terminated on 18.2.1986. Industrial dispute raised after 6 years of
termination. Admitted delay of 6 years not kept in view by the Labour Court- Judicial
discretion exercised by the Labour Court flawed and unsustainable. Reinstatement of the
workman not the appropriate relief. In lieu of reinstatement compensation of Rs.one lac
directed to be paid to the workman by the appellant-employer within six weeks failing
which interest @ 9% p.a. will be payable.
[Paras 21 and 22]
Limitation Act, 1963. Section 5-Industrial Disputes Act, 1947- Section 25-F-
Termination of service- Industrial dispute raised after six years- Limitation Act not
applicable to reference made under the I.D. Act-Delay in raising industrial
disputes definitely an important circumstances which the Labour Court must
keep in view before granting relief”.
21. Repudiating the arguments by ld. Dy. D. A. for the State, Ld. Counsel for claimant/
petitioner has relied upon the judgment of Hon'ble Apex Court in case titled as Tapash Kumar
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Paul vs. BSNL & another reported in AIR 2015 SC 357 wherein Hon'ble Court held that a Court
may pass an order of reinstatement by awarding compensation but the same has to be based on
justifiable grounds. In this judgment, it was held that compensation can be granted in a situation
where the industry is closed or that employees has superannuated or going to retire shortly and no
period is left to her credit or where workman has been rendered in capacitated to discharge duties
cannot be reinstated and/or fourthly when she has lost confidence of the management to discharge
duties. It was observed that there may be appropriate cases on facts which may justify substituting
an order of reinstatement by award of compensation but that has to be supported by some legal
and justifiable reasons indicating why the reinstatement should be followed to be substituted
by award of compensation. Ld. counsel for the petitioner with the aid of above-said judgment had
argued that there are only four situations when a worker may be awarded compensation instead of
reinstatement but the judgment has certainly not been correctly appreciated by Ld. Counsel as this
judgment postulates probable four situations which are illustrate in nature where compensation may
be awarded instead of reinstatement but that does not mean that except the four grounds, no other
ground would be appropriate for awarding compensation. In the case in hand before this court, it
has come that petitioner had abandoned the job who did not report for duty for several years and
later gave notice requesting for joining of duties but the conditions in para No. 5 of judgment (2015
supra) even if not met requirement, cannot be a ground to reinstate the petitioner and it is only
compensation which would be appropriate relief. Ld. counsel for the petitioner has relied upon the
judgment of Hon'be Apex Court titled as Deepali Gundu Surwase vs. Kranti Junior Adhyapak
Mahavidyalaya (D.Ed.) and Ors. reported in AIR 2014 SC (Supp) 121, Raghubir Singh vs.
General Manager, Haryana Roadways, Hissar reported in 2014(3) Apex Court Judgments 652.
I have gone through these judgments and of view that they don't come to rescue the petitioner on
point of reinstatement instead of compensation. Ld. Dy. D.A. for State on the other hand has relied
upon the judgment of Hon'ble Apex Court in Vice Chancellor, Lucknow University, Lucknow,
Uttar Pradesh vs. Akhilesh Kumar Khare & another reported in AIR 2015 SC 3473. It has
been contended that engagement of claimant/petitioner in this case was not through regular mode of
recruitment and applying the ratio of this judgment AIR 2015 SC supra, claim of petitioner for
reinstatement can be negated and thus compensation would be sufficient for redressal of grievance
of the claimant/petitioner. Similarly, in 2016 (1) Him. L. R. 502 titled as State of Himachal
Pradesh and another vs. Chaman Singh relied by Ld. AR for petitioner interpretation of Section
137 of Limitation Act was involved which provides that Article 137 of Limitation Act did not apply
to industrial disputes. In 2014 (3) Apex Court Judgment 652 (SC) similar view was reiterated
which clearly mandates that claimant/petitioner cannot be denied relief sought for merely on the
ground of delay and laches. That being so, the law remains as it was that ground of delay and
laches, claimant/petitioner cannot be denied relief rather the court has to consider various aspects
before moulding relief and the case in hand it would not be erroneous to mention here that the
claimant/petitioner can be reasonably indemnified by ordering compensation and not by
reinstatement. In so far as judgment of AIR 2015 SC 1373 titled as Mackinon Machenize &
Company Ltd. vs. Mackinon Employees Union is concerned, the Hon'ble Apex Court has held
on closure of unit of company principle of 'Last come First go' was not followed which violated
Section 25-G of Industrial Disputes Act and retrenchment was held illegal entitling petitioner for
retrenchment compensation. Since the facts of case of Mackinon Machenize's case are different
from case in hand as in former closure of unit of company was involved whereas in case in hand
before this court, there is no closure of company rather it is the department of HPPWD which had
engaged petitioner without following of the procedure although subject to funds and availability of
work. As such, when there is no closure of any unit by respondent which the petitioner was
engaged, judgment of Mackinon Machenize cannot be made applicable.
22. After hearing the rival contentions of the parties and case law relied by them, it can be
safely concluded that delay in raising industrial dispute is certainly important aspect/circumstance
which court has to keep in mind while exercising discretion. In para nos. 20 and 21 of the judgment
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as referred to in this case reported in 2013 (136) FLR 893 (SC) titled as Assistant Engineer
Rajasthan Development Corporation and another vs. Geetam Singh provides that before
exercising its judicial discretion, the Labour Court or Tribunal has to keep in mind all relevant
factors including the mode and manner of appointment, nature of employment, length of service,
the ground on which termination has been set aside and delay in raising industrial dispute before
grant of relief. It was observed by the Hon'ble Apex Court in judgment (2013 supra) before that
workman had worked for 286 days and had raised industrial dispute in 1992 whereas her services
have been terminated in 1986 and she raised industrial dispute after six years. The Hon'ble Apex
Court has held that though compensation awarded by Single Judge of the Hon'ble High Court was
too low and liable to be enhanced by the Division Bench but surely reinstatement of the
workman in the facts and circumstances is not the appropriate relief and thus Hon'ble Apex
Court awarded a lump-sum of Rs.1 lakh along-with interest @ 9% per annum if the respondent
failed to make payment of compensation within six weeks from the date of judgment. In the case in
hand before this court factors which have weighed are that the petitioner in all remained engaged
for about 13 years and actually worked for 1599½ days as per mandays chart on record and that the
services of petitioner were disengaged in August, 2004 who worked as non skilled worker and had
raised industrial dispute by issuance of demand notice after about seven years i.e. demand notice
was given on 16.11.2011. Taking into consideration factors mentioned above in pursuance to
judgments of Hon'ble Apex Court referred to above, petitioner would not be entitled either for
reinstatement or for back wages but a lump-sum compensation would be appropriate relief in view
of judgment 2013 (139) FLR 25 (SC). The judgments relied upon by Ld. Counsel for petitioner on
the matter of delay and laches is more or less settled law that claim of the petitioner could not be
solely declined on the ground of delay and laches. Similarly, judgment of Hon'ble Apex Court in
2014 titled as Raghubir Singh's case also does not come to the rescue of the petitioner as in this
judgment also the Hon'ble Apex Court has reiterated the mandate as given by the Hon'ble Apex
Court in previous judgment in the year 2013 i.e. Assistant Engineer, Rajasthan State
Agriculture Marketing Board, Sub-Division Kota and Mohan Lal's case. I have gone through
these judgments which are not attracted in this present case as this court not declining relief to the
petitioner on the ground of limitation rather on the basis of guidelines of Hon'ble Apex Court laid
down in judgment of 2013 as referred to above. Ld. Dy. D.A. representing State/respondents has
relied upon the judgment of Hon'ble Apex Court reported in AIR 2016 SC 2984 titled as
Prabhakar vs. Joint Director Sericulture Department and another. I have gone through the
judgment which deals reference under Section 10 of the Industrial Disputes Act in which it has
been held that Hon'ble High Court can intervene in writ jurisdiction under Article 226 when
reference has been challenged on the ground of inordinate unexplained delay. Since the reference
made by the Government in this case is not in challenge before this Court, the above said judgment
would not be attracted in the facts and circumstances of the case. Moreso in view of observation
qua facts made in judgment (2016) supra, claimant/petitioner was found to be an educated person
who was working as Clerk whereas in case before this Court, the petitioner is an illiterate unskilled
worker. For the above-said reasons, plea of delay and laches would not eclipse claim of petitioner.
23. In view of foregoing discussion, a lump-sum compensation of Rs.1,70,000/- (Rupees
one lakh seventy thousand only) would be an appropriate relief to which the petitioner is entitled in
the facts and circumstances of the case as stated above. It is further made clear that amount of
compensation shall be paid within four months from the date of receipt of Award failing which the
petitioner would be entitled for interest @ 9% per annum from date of Award till its realization.
Issues No. 1 to 3 are answered accordingly.
Issue no. 4 :
24. On the plea of non-maintainability of the claim petition under Section 10 of the
Industrial Disputes Act, Ld. Dy. D.A. representing respondent department has failed to allege in
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reply in what manner petition is not maintainable. Thus, vague plea merits rejection outright.
Otherwise also, from pleadings and evidence on record, no inference of claim petition being not
maintainable could be raised against claimant/petitioner. This issue is decided in favour of
petitioner and against the respondent.
RELIEF
25. As sequel to my findings on foregoing issues, the respondent is hereby directed to pay
the compensation of Rs.1,70,000/- (Rupees one lakh seventy thousand only) to the petitioner in lieu
of the reinstatement, back wages, seniority and past service benefits. Amount of compensation so
awarded will be paid by the respondent to the petitioner within four months from the date of receipt
of Award failing which the respondent shall be liable to pay the interest @ 9% per annum on the
said amount from the date of award till the date of its realization. In the peculiar circumstances of
the case, the parties are left to bear their own costs.
26. The reference is answered in the aforesaid terms.
27. A copy of this Award be sent to the appropriate Government for publication in the
official gazette.
28. File, after due completion be consigned to the Record Room.
Announced in the open Court today this 4th day of October, 2017.
Sd/-
(K. K. Sharma)
Presiding Judge,
Labour Court-cum-Industrial Tribunal,
Kangra at Dharamshala, H.P.
___________
IN THE COURT OF SH. K. K. SHARMA, PRESIDING JUDGE, LABOUR COURT-CUM-
INDUSTRIAL TRIBUNAL, KANGRA AT DHARAMSHALA (HP)
Ref. No.
: 513/2015
Date of Institution
: 09-11-2015
Date of Decision
: 04-10-2017
Smt. Bimla w/o Shri Bhan Chand, r/o Village Mahaliyat, P.O. Killar, Tehsil Pangi, District
Chamba, H.P.
…Petitioner.
Versus
The Executive Engineer, Killar Division, I.&P.H./H.P.P.W.D., Killar (Pangi), District
Chamba, H.P.
...Respondent.
Reference under Section 10 (1) of the Industrial Disputes Act, 1947
For the Petitioner
: Sh. Rajeev Dharmani, Adv.
For the Respondent : Sh. Sanjeev Singh Rana, Dy. D.A.
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AWARD
The reference given below has been received from the appropriate Government for
adjudication:
“Whether the industrial dispute raised by the worker Smt. Bimla w/o Shri Bhan Chand,
r/o Village Mahaliyat, P.O. Killar, Tehsil Pangi, District Chamba, H.P. before the
Executive Engineer, Killar Division, I. & P.H./H.P.P.W.D., Killar (Pangi), District
Chamba, H.P. vide demand notice dated 22-11-2011 regarding her alleged illegal
termination of services during July, 2004 suffers from delay and latches? If not,
whether termination of services of Smt. Bimla w/o Shri Bhan Chand, r/o Village
Mahaliyat, P.O. Killar, Tehsil Pangi, District Chamba, H.P. by the Executive Engineer,
Killar Division, I.&P.H./H.P.P.W.D., Killar (Pangi), District Chamba, H.P., during
July, 2004, without complying the provisions of the Industrial Disputes Act, 1947, is
legal and justified? If not, what amount of back wages, seniority, past service benefits
and compensation the above aggrieve workman is entitled to from the above
employer?”
2. On receipt of reference from appropriate government, notices were issued to the parties
in pursuance to which claimant/petitioner has filed statement of claim.
3. Brief facts as enumerated in the present claim petition by the petitioner above named
revealed that she had been initially engaged as daily wage beldar on muster roll basis in the year
1994 who continuously worked till 2004 with the respondent. Averments made in the petition
further revealed that petitioner had worked for 160 days in each calendar year as per the criteria
prescribed for tribal area of Pangi Tehsil, District Chamba and became eligible for continuous
service envisaged under statutory provisions of Section 25-B of the Industrial Disputes Act, 1947
(hereinafter referred to as 'the Act' for brevity). Averments made in the petition revealed that the
services of petitioner had been interrupted by way of intermittent/artificial breaks given by the
respondent/department deliberately and as such breaks are required to be counted as 'continuous
services' for the purposes of calculation of 160 days for the applicability of Section 25-B of the Act.
The grievance of petitioner remains that respondent/department had terminated/disengaged
petitioner from daily wage service orally without issuing one month's notice in writing stipulating
therein reason for retrenchment besides no retrenchment compensation was paid to petitioner when
respondent had been illegally terminated. It is also alleged that respondent had not followed the
provisions of Section 25-F of the Act while disengaging petitioner from service. It is stated that
petitioner is very poor who has no source of income besides after termination of the services of
petitioner, petitioner had approached the respondent time and again but of no avail. The grievance
of petitioner further remains that when the services of petitioner had been terminated,
respondent/department had reengaged number of new workman from time to time and while doing
so, respondent had not followed the principle of 'Last come, First go' envisaged under Section 25-G
of the Act. It is further alleged that respondent/department had continuously retained junior to
petitioner who are still in service namely Suraj Ram who appointed in 1997, Chunku Ram in 2000,
Budhi Ram in 2003 and Dev Raj in 2007. The claimant/petitioner claimed that she had spotless
service record who never been charge-sheeted for any act of indiscipline or negligence or her
conduct and even at the time of verbal termination, no charge-sheet had been served upon her and
the at the same time, no opportunity of hearing had been afforded to him. The petitioner also
alleges that she has remained unemployed ever since her illegal termination from year of 2004 till
the date of institution of present claim petition who had been nowhere gainfully employed and was
thus entitled for full back wages. Accordingly alleging respondent to have committed violation of
statutory provision of Section 25-F, Section 25-G and Section 25-H of the Industrial Disputes Act,
1947 and thus petitioner prays for setting aside oral order of termination/retrenchment of
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respondent in the year 2004. She further prayed for reinstatement in service w.e.f. year 2004 along-
with back wages, seniority including continuity in service as petitioner as she had remained
unemployed since the date of her illegal termination. The petitioner has also prayed that period of
intermittent/fictional breaks deliberately given time and again during entire service of petitioner
between 1990 to 2004 be counted 160 days continuous service and regularization of the services of
petitioner w.e.f. 1-1-2003 under 10 years regularization policy and to any other relief petitioner is
entitled.
4. The respondent contested claim petition, filed reply inter-alia taken preliminary
objections of maintainability, claim petition being bad on account of delay and laches. On merits
denied that petitioner had worked for more than 160 days in each calendar year rather clarified by
stating that petitioner was engaged as daily waged Beldar in 1994 who remained engaged till 2004
but had worked intermittently as petitioner used to come and attend the work at her own sweet will
and convenience. Relying upon the mandays chart, it has been categorically pleaded by the
respondent that petitioner had not completed 160 days in each calendar year as required for tribal
area of Pangi Tehsil. The allegations of fictional breaks given by respondent to the petitioner have
been specifically denied. In so far as engagement of persons junior to petitioner mentioned in para
No. 10 of the claim petition were appointed as per order of Labour Court and no other juniors to the
petitioner had been retained in service by the respondent. On the plea of termination of service of
petitioner, respondent specifically alleges that petitioner had left the job at her own will therefore
serving of notice or pay in lieu thereof was not required. Reiterating its stand respondent has
maintained that petitioner had left the work of her own sweet will and the persons mentioned in
para No.10 are stated to have engaged as per direction of the Labour Court-cum-Industrial Tribunal
Dharamshala and respondent had not violated the principle of 'Last come, First go'. It is also
contended that if petitioner had been terminated in 2004 she would have definitely raised industrial
dispute immediately and that after thirteen years petitioner is stated to be agitating the matter which
is bad on account of delay and laches. It is also contended that since the services of petitioner had
not been terminated by the respondent, question of issuance of notice or wages in lieu thereof did
not arise and at the same time, there was no necessity for charge-sheet or issuing any notice of
petitioner after her termination. It is contended that petitioner was agriculturist and gainfully
employed and was thus not entitled for back wages.
5. The petitioner filed rejoinder, reiterated her stand as maintained in the claim petition.
Further asserted that provisions of Limitation Act did not eclipse the claim of petitioner in totality
besides allegation of violation of principle of 'Last come First go' was specifically denied.
6. In order to prove her case, petitioner had examined herself as PW1 tendered/proved her
affidavit Ex. PW1/A under Order 18 Rule 4 CPC, Ex. PW1/B copy of demand notice, Ex. PW1/C
copy of order dated 27.8.2015 and closed evidence. On the other hand, repudiating the evidence led
by the petitioner, respondent examined RW1 Shri D.R. Chauhan, the then Executive Engineer,
HPPWD Division Killar as RW1 tendered/proved mandays chart of petitioner Ex. RW1/B, Ex.
RW1/C copy of mandays chart of co-workers closed the evidence.
7. I have heard the ld. counsel of petitioner and ld. Dy. D.A. representing respondent,
gone through records of the case carefully relevant for disposed of this case.
8. From the contentions raised, following issues were framed on 29.04.2016 for
determination:
1. Whether the industrial dispute raised by petitioner vide demand notice dated
22-11-2011 qua her termination of service during July, 2004 by respondent suffers
from the vice of delay and laches as alleged? If so, its effect?
...OPP.
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2. Whether termination of the services of the petitioner by the respondent during July,
2004 is/was illegal and unjustified as alleged?
...OPP.
3. If issue no. 2 is proved in affirmative, to what service benefits the petitioner is entitled
to?
...OPP.
4. Whether the claim petition is not maintainable in the present form as alleged? ...OPR.
5.
Relief.
9. For the reasons detailed hereunder, my findings on the above issues are as follows:—
Issue No. 1 : Discussed
Issue No. 2 : Yes
Issue No. 3 : Discussed
Issue No. 4 : No
Relief. : Petition is partly allowed awarding compensation of Rs.1,20,000/- per operative part of
award.
REASONS FOR FINDINGS
Issues No. 1 to 3
10. All these issues have been taken up together for discussion being interconnected which
can be disposed of simultaneously without repetition of evidence.
11. Relationship of petitioner having been engaged as daily waged beldar by respondent on
muster roll basis in the year 1994 continuously worked till July, 2004 with the respondent.
Admittedly, petitioner was engaged without any written order or settlement of terms and conditions
by the respondent. It is equally not in dispute that no written order was passed while terminating
service of the petitioner as claim of respondent remains that it had not retrenched petitioner from
service who had abandoned the job of her own and used to work intermittently as per her own wish
and convenience. Admittedly, the reference of appropriate govt. does not relate to plea of fictional
breaks but only with regard to petitioner's termination from service. In the backdrop of foregoing
admitted facts on record, claim of petitioner requires to be adjudicated with a view to determine if
petitioner is entitled for relief of reinstatement and back wages along-with seniority and past
service benefits and compensation as claimed by him.
12. Stepping into witness box as PW1 has sworn in affidavit Ex. PW1/A reiterating and
reaffirming her pleadings as stipulated in claim petition. In her affidavit she has claimed to have
worked with the respondent/department for more than 160 days in Pangi Sub-Division Chamba
district and remained engaged from 1994 to July, 2004. She has also stated on oath that no notice
under Section 25-F of the Act was given by the respondent before terminating her service and at the
same time no compensation in lieu thereof notice period was paid to her and thus her termination
was illegal and void entitling petitioner benefit of reinstatement of service with full back wages and
all the other consequential service benefits. The petitioner has further alleged on oath that
respondent/department after terminating her services in July, 2004 by oral order had engaged
several co-workers who were junior to petitioner were retained in service. Not only this, the
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persons who were junior to petitioner are stated to have been regularized in service and thus
respondent had not followed the mandate of Sections 25-G and 25-H of the Act which was
obligatory on its part. The case of petitioner also remains that she had served respondent with due
diligence and had spotless service record as respondent/department had never called any
explanation or raised charge-sheet against her but even while retrenching petitioner from service,
no notice was given. The petitioner has also explained reason for not approaching the authorities
under Labour Act and thereafter before this Tribunal, as there existed no road between Chamba
town to Pangi Tehsil till 2011 and petitioner had moved before the Labour Officer raising demand
notice consequent upon which a failure report was submitted and as the Labour Commissioner did
not make reference for industrial dispute raised by petitioner, the petitioner had moved before the
Hon'ble High Court by filing CWP where direction was passed for making reference to the Labour
Court due to which delay had occurred and same was satisfactorily explained.
13. In so far as plea of abandonment raised by respondent is concerned, the same merits
rejection in view of the fact that respondent had failed to produce any record by which it could be
established that whenever petitioner absented from her duty as also reflected in mandays chart Ex.
RW1/B any notice or letter was ever issued. On this point respondent as RW1 has specifically
admitted that whenever petitioner abandoned the job, no notice had been issued. RW1 specifically
admitted that no departmental inquiry was initiated against petitioner even after July, 2004. No
reason whatsoever has been assigned for such any action or omission on the part of respondent in
not initiating any departmental proceedings or making correspondence calling upon the petitioner
to join service. This prima facie belies the stand taken by the respondent as abandonment has to be
proved like any other fact in issue. The petitioner, on the other hand, as PW1 in cross-examination
has specifically denied that she used to leave the job in between and attended the work
intermittently rather she has claimed that intermit breaks had been deliberately given to her by the
respondent in the service record of petitioner so that petitioner did not complete 160 days of work
as required for Pangi Tehsil area and also for applicability of Section 25-B of the Act. As such, in
absence of any specific and reliable evidence led by respondent, it would be unsafe to hold that
respondent had established plea of abandonment.
14. A bare glance on the mandays chart Ex. RW1/B would reveal that petitioner had
worked for 67 days in the year 1994, 125 days in 1995, 59 days in 1996, 29 days in 1997, 61.5 days
in 1998, 103.5 days in 1999, 79 days in 2000, 83 days in 2001, 87 days in 2002, 73 days in 2003
and 59 days in 2004 and thus a total of her service in 1994 to 2004 in 11 years she had worked for
826 days in her entire service period. Be it noticed that petitioner had not worked for more than 160
days and as there is no reference from the Labour Commissioner, Shimla on the point of artificial
breaks, this court is to confine its findings only with regard to alleged illegal termination. It is
evident from mandays chart Ex. RW1/B that in the year 2004 the petitioner had merely worked for
59 days and thus immediately in preceding 12 calendar months from the month of termination of
petitioner had not rendered service of 160 days so as to meet requirement of law of having
continuous service of one year and thus it was not at all required from respondent to have issued a
notice envisaged under Section 25-F of the Act. As such, the respondent is held to have not violated
the provisions of Section 25-F of the Act.
15. Ld. Counsel for petitioner has contended with vehemence that large number of workers
who were junior to petitioner had been appointed and these workers have been retained in service
and regularized. The grievance of petitioner remains that principle of 'Last come First go' was not
followed as the juniors were retained and services of petitioner despite being senior was terminated
without any valid reason. Ex. RW1/C is the year-wise mandays of daily waged workers who were
junior to the petitioner and had joined in the year 1997 or thereafter. All of these co-workers shown
in Ex. RW1/C the year-wise mandays details of workers of Division HPPWD Killar were certainly
junior to petitioner who were given sufficient work existing in those years more than 200 days in a
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year whereas the petitioner had been not given muster roll for the whole month. Ex. RW1/C also
established that all the co-workers shown in this document have worked for more than 160 days in
most of the years although they were junior to petitioner. Evidently, there is no iota of evidence of
respondent establishing that petitioner was called upon to join for service at any time after July,
2004 even at the time when junior persons were re-engaged. That being so the respondent had
certainly violated the provisions of Section 25-G of the Act as the juniors workers mentioned in
para No.10 of the affidavit were retained whereas petitioner was senior from these co-workers
having joined service in 1994 was terminated and even thereafter respondent omitted to afford
opportunity to petitioner for re-employment for work which also violates the provisions of Section
25-H of the Act. Ld. Counsel for petitioner has placed reliance upon judgment of Central Bank of
India vs. S. Satyam, 1996 (5) SCC 419 in which Hon'ble Apex Court has held that for the
applicability of Section 25-G and 25-H of the Act, there was no necessity of claimant/petitioner
to have worked for 240 days as in case of provisions of Section 25-F of the Act.
16. Ld. Dy. D.A. representing respondent has made futile attempt to justify engagement
junior worker and their retention in service in pursuance to Awards passed by Labour Court. On the
other hand, Ld. Counsel for petitioner relied upon Ex. PW1/C the order dated 27.8.2015 of Hon'ble
High Court of H. P. vide which the orders qua termination passed as against respondent and several
other were quashed. That being so the relief was granted in favour of the petitioner who was
directed to be reinstated with others. As such, even when petitioner is proved to have not worked
for more than 160 days in preceding 10 years which entitled him for regularization of his service
per government policy, yet respondent is not absolved from its accountability for complying the
provisions of Sections 25-G and 25-H of the Act and as such, it is held that respondent had violated
the provisions of Sections 25-G and 25-H of the Industrial Disputes Act.
17. Ld. Counsel for petitioner has contended that after petitioner's termination in July,
2004, she had remained unemployed and was not earning anything thereafter as such was entitled
for full back wages. Repudiating the arguments of Ld. Counsel of petitioner, ld. Dy. D.A. for the
State has taken this court through cross-examination of the petitioner who has admitted that she had
cultivable land with her and also worked a private labourer. Thus, plea of having remained not
gainfully employed gets belied admission of petitioner in cross examination in which she had
maintained that she had been earning from agricultural land as well as she has been working as
daily wager privately. Reliance has been placed on the judgment of Hon'ble Apex Court North
East Karnataka Road Transport Corporation vs. M. Nagangouda (2007) 10 SCC 765 in which
Division Bench comprising of Justice A.R. Lakshmanan and Justice Altamas Kabir had held that
'term gainfully employment would also include self employment wherefrom income is
generated. It was income either from employment in an establishment or from self
employment merely differentiates the sources from which income is generated, the end use
being the same'. Applying the ratio of judgment of 2007 (supra) to this case since the petitioner
was earning from her agricultural and manual pursuits, the same were sufficient to maintain her and
her family. It is thus held that petitioner was gainfully employed. Be it stated here that Hon'ble
Apex Court in Deepali Gundu Surwase's case has held that the Labour Court was not justified in
holding that merely because the respondent was receiving agriculture income, she cannot be treated
to be engaged in gainful employment. Since the petitioner had income from agriculture pursuits for
her livelihood it cannot be stated that petitioner was not gainfully employed and thus would not be
entitled full back wages. In view of the forgoing discussion, it is held that the relationship of
workman and employer existed between petitioner and respondent and that petitioner was illegally
retrenched without compliance of Section 25-G and Section 25-H of the Act although remained
gainfully employed after her retrenchment. Thus, applying the ratio of judgment of Hon'ble Apex
Court (2007 supra), it may not be erroneous to hold that petitioner was gainfully employed and
thus would be not entitled for back wages for the period she was out of job on being terminated by
the respondent.
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18. Lastly, Ld. Dy. D.A. for State has contended with vehemence that there is inordinate
and explained delay which disentitles petitioner relief claimed for by him. On the other hand, Ld.
Counsel for the petitioner has relied upon the judgment of Hon'ble Apex Court titled Raghubir
Singh vs. General Manager, Haryana Roadways, Hissar reported in 2014 Lab IC 4266 (SC)
and the relevant paras of the judgment are produced below for reference:
“12. Therefore, in our considered view, the observations made by this Court in the
Rajasthan State Agriculture Marketing Board case (supra) upon which the Learned
Additional Advocate General for the State of Haryana has placed reliance cannot be applied
to the fact situation of the case on hand, for the reason that the Labour Court has
erroneously rejected the reference without judiciously considering all the relevant factors of
the case particularly the points of dispute referred to it and answered the 2nd issue regarding
the reference being barred by limitation but not on the merits of the case. The said decision
has no application to the fact situation and also for the reason the catena of decisions of this
Court referred to supra, wherein this Court has categorically held that the provisions of
Limitation Act under Article 137 has no application to make reference by the appropriate
government to the Labour Court/Industrial Tribunal for adjudication of existing industrial
dispute between workmen and the employer.
13. In the case on hand, no doubt there is a delay in raising the dispute by the
appellant; the Labour Court nevertheless has the power to mould the relief
accordingly. At the time of adjudication, if the dispute referred to the Labour
Court is not adjudicated by it, it does not mean that the dispute ceases to exist.
The appropriate government in exercise of its statutory power under Section 10(1)(c)
of the Act can refer the industrial dispute, between the parties, at any time, to either the
jurisdictional Labour Court/Industrial Tribunal as interpreted by this Court in the Avon
Services case referred to supra. Therefore, the State Government has rightly exercised
its power under Section 10(1)(c) of the Act and referred the points of dispute to the
Labour Court as the same are in accordance with the law laid down by this Court in
Avon Services & Sapan Kumar Pandit cases referred to supra.
14. Further, the workman cannot be denied to seek relief only on the ground of delay
in raising the dispute as held in the case of S.M. Nilajkar & Ors. v. Telecom
District Manager, Karnataka[4] it was held by this Court as follows-
“17. It was submitted on behalf of the respondent that on account of delay in raising
the dispute by the appellants the High Court was justified in denying relief to the
appellants. We cannot agree...... In Ratan Chandra Sammanta and Ors. v. Union of
India and Ors. (supra)1993 AIR SCW 2214, it was held that a casual labourer
retrenched by the employer deprives herself of remedy available in law by delay itself,
lapse of time results in losing the remedy and the right as well. The delay would
certainly be fatal if it has resulted in material evidence relevant to adjudication being
lost and rendered not available. However, we do not think that the delay in the case at
hand has been so culpable as to disentitle the appellants for any relief.....” (Emphasis
laid by the Court) In view of the legal principles laid down by this Court in the above
judgment, the reference of the industrial dispute made in the case on hand by the State
Government to the Labour Court to adjudicate the existing industrial dispute between
the parties was made within a reasonable time, considering the circumstances in which
the workman was placed, firstly, as there was a criminal case pending against her and
secondly, the respondent had assured the workman that she would be reinstated after
her acquittal from the criminal case. Moreover, it is reasonable to adjudicate the
industrial dispute inspite of the delay in raising and referring the matter, since there is
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no mention of any loss or unavailability of material evidence due to the delay. Thus,
we do not consider the delay in raising the industrial dispute and referring the same to
the Labour Court for adjudication as gravely erroneous and it does not debar the
workman from claiming rightful relief from her employer.
15. In the case of Ajaib Singh v. The Sirhind Co-operative Marketing-cum-Processing
Service Society Limited & Anr.[5] this Court has opined that relief cannot be denied to
the workman merely on the ground of delay, stating that:—
“10. It follows, therefore, that the provisions of Article 137 of the Schedule to
Limitation Act, 1963 are not applicable to the proceedings under the act and that the
relief under it cannot be denied to the workman merely on the ground of delay. The
plea of delay if raised by the employer is required to be proved as a matter of fact by
showing the real prejudice and not as a merely hypothetical defence. No reference to
the labour court can be generally questioned on the ground of delay alone. Even in a
case where the delay in shown to be existing, the tribunal, labour court or board,
dealing with the case can appropriately mould the relief by declining to grant back
wages to the workman till the date she raised the demand regarding her illegal
retrenchment/ termination or dismissal. The Court may also in appropriate cases direct
the payment of part of the back wages instead of full back wages.....” (Emphasis laid
by the Court).
16. Hence, we are of the opinion, having regard to the fact and circumstances of the case
that there is no delay or latches on the part of the workman from the date of her
acquittal in the criminal case. Thereafter, upon failure of the respondent in adhering to
the assurance given to the workman that she would be reinstated after her acquittal
from the criminal case, the workman approached the conciliation officer and the State
Government to make a reference to the Labour Court for adjudication of the dispute
with regard to the order of dismissal passed by the respondent. Keeping in mind the
date of acquittal of the appellant and the date on which she approached the conciliation
officer by raising the dispute, since the respondent had not adhered to its assurance, the
State Government had rightly referred the dispute for its adjudication. Therefore it
cannot be said that there was a delay on the part of the appellant in raising the dispute
and getting it referred to the Labour Court by the State Government.
17. Further, the Labour Court on an erroneous assumption of law framed the
additional issue regarding the limitation in raising the dispute and its reference
by the State Government to the Labour Court. Thus, the Labour Court has ignored
the legal principles laid down by this Court in the cases referred to supra. The award
passed by the Labour Court was accepted erroneously by both the learned single Judge
and the Division Bench of the High Court by dismissing the Civil Writ Petition & the
Letters Patent Appeal without examining the case in its proper perspective, keeping in
view the power of the State Government under Section 10(1)(c) and the object and
intendment of the Act. Not adjudicating the existing industrial dispute on merits
between the parties referred to it may lead to disruption of industrial peace and
harmony, which is the foremost important aspect in Industrial Jurisprudence as the
same would affect the public interest at large.
19. Ld. Dy. D.A. representing respondent department has also contended with vehemence
that claim petition is barred by limitation on account of delay and laches. It has been pointed that
termination of petitioner in this case took place on 2004 and the industrial dispute was raised after
several years of retrenchment. Repudiating the argument by ld. counsel, ld. AR for the petitioner
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has placed reliance upon judgment reported in 2007 LHLJ 903 Hon'ble High Court of H.P.
(Bhatag Ram's case) in which it has been held that delay in raising dispute may be considered by
court at the time of granting final relief however in various other judgments even longer delay has
been condoned. In Divisional Manager, HPFC & another vs. Garibu Ram, Latest HLJ 2007
(HP) 1160, delay of more than 10 years was condoned besides Hon'ble High Court has held that
principle of Limitation Act is not applicable to the industrial dispute. Similar view was taken by
Hon'ble Apex Court in Ajayab Singh vs. Sirhind Co-operative Marketing-cum-Processing
Society Limited and Another, (1999) 6 SCC 82 in which it has been held that the principle of
Limitation Act, 1963 did not apply to the proceeding under the Industrial Disputes Act.
20. Relying upon the aforestated judgment, it has been contended that claim of petitioner
cannot be defeated on the point of delay and laches. Repudiating arguments advanced by Ld.
counsel for petitioner, Ld. Dy. D.A. has placed reliance upon the judgment of Hon'ble Apex Court
titled as Assistant Engineer, Rajasthan State Agriculture Marketing Board, Sub-Division
Kota and Mohan Lal [2013 (139) FLR 125], the relevant para of the judgment are produced
below for reference:
Industrial Disputes Act, 1947-Sections 25-F and 10- Limitation Act, 1963- Section 5-
Industrial dispute-Termination of service-Finding of Labour Court that workman had
completed 240 days in calendar year and her termination was in violation of Section
25-F of the I.D.Act- Workman worked from 1-11-1984 to 17-2-1986 in all 286 days
during employment. her services terminated on 18-2-1986. Industrial dispute raised
after 6 years of termination. Admitted delay of 6 years not kept in view by the Labour
Court- Judicial discretion exercised by the Labour Court flawed and unsustainable.
Reinstatement of the workman not the appropriate relief. In lieu of reinstatement
compensation of Rs.one lac directed to be paid to the workman by the appellant
employer within six weeks failing which interest @ 9% p.a. will be payable.
[Paras 21 and 22]
Limitation Act, 1963. Section 5- Industrial Disputes Act, 1947- Section 25-F-
Termination of service- Industrial dispute raised after six years- Limitation Act not
applicable to reference made under the I.D. Act-Delay in raising industrial
disputes definitely an important circumstances which the Labour Court must
keep in view before granting relief”.
21. Repudiating the arguments by ld. Dy. D.A. for the State, ld. counsel for
claimant/petitioner has relied upon the judgment of Hon'ble Apex Court in case titled as Tapash
Kumar Paul vs. BSNL & another reported in AIR 2015 SC 357 wherein Hon'ble Court held that
a Court may pass an order of reinstatement by awarding compensation but the same has to be based
on justifiable grounds. In this judgment, it was held that compensation can be granted in a situation
where the industry is closed or that employees has superannuated or going to retire shortly and no
period is left to her credit or where workman has been rendered in capacitated to discharge duties
cannot be reinstated and/or fourthly when she has lost confidence of the management to discharge
duties. It was observed that there may be appropriate cases on facts which may justify substituting
an order of reinstatement by award of compensation but that has to be supported by some legal
and justifiable reasons indicating why the reinstatement should be followed to be substituted
by award of compensation. Ld. counsel for the petitioner with the aid of above-said judgment had
argued that there are only four situations when a worker may be awarded compensation instead of
reinstatement but the judgment has certainly not been correctly appreciated by ld. counsel as this
judgment postulates probable four situations which are illustrate in nature where compensation may
be awarded instead of reinstatement but that does not mean that except the four grounds, no other
ground would be appropriate for awarding compensation. In the case in hand before this court, it
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has come that petitioner had abandoned the job who did not report for duty for several years and
later gave notice requesting for joining of duties but the conditions in para no.5 of judgment (2015
supra) even if not met requirement, cannot be a ground to reinstate the petitioner and it is only
compensation which would be appropriate relief. Ld. counsel for the petitioner has relied upon the
judgment of Hon'be Apex Court titled as Deepali Gundu Surwase vs. Kranti Junior Adhyapak
Mahavidyalaya (D.Ed.) and Ors. reported in AIR 2014 SC (Supp) 121, Raghubir Singh vs.
General Manager, Haryana Roadways, Hissar reported in 2014(3) Apex Court Judgments 652.
I have gone through these judgments and of view that they don't come to rescue the petitioner on
point of reinstatement instead of compensation. Ld. Dy. D.A. for State on the other hand has relied
upon the judgment of Hon'ble Apex Court in Vice Chancellor, Lucknow University, Lucknow,
Uttar Pradesh v. Akhilesh Kumar Khare & another reported in AIR 2015 SC 3473. It has been
contended that engagement of claimant/petitioner in this case was not through regular mode of
recruitment and applying the ratio of this judgment AIR 2015 SC supra, claim of petitioner for
reinstatement can be negated and thus compensation would be sufficient for redressal of grievance
of the claimant/petitioner. Similarly, in 2016 (1) Him. L.R. 502 titled as State of Himachal
Pradesh and another vs. Chaman Singh relied by ld. AR for petitioner interpretation of Section
137 of Limitation Act was involved which provides that Article 137 of Limitation Act did not apply
to industrial disputes. In 2014 (3) Apex Court Judgment 652 (SC) similar view was reiterated
which clearly mandates that claimant/petitioner cannot be denied relief sought for merely on the
ground of delay and laches. That being so, the law remains as it was that ground of delay and
laches, claimant/petitioner cannot be denied relief rather the court has to consider various aspects
before moulding relief and the case in hand it would not be erroneous to mention here that the
claimant/petitioner can be reasonably indemnified by ordering compensation and not by
reinstatement. In so far as judgment of AIR 2015 SC 1373 titled as Mackinon Machenize &
Company Ltd. vs. Mackinon Employees Union is concerned, the Hon'ble Apex Court has held
on closure of unit of company principle of 'Last come First go' was not followed which violated
Section 25-G of Industrial Disputes Act and retrenchment was held illegal entitling petitioner for
retrenchment compensation. Since the facts of case of Mackinon Machenize's case are different
from case in hand as in former closure of unit of company was involved whereas in case in hand
before this court, there is no closure of company rather it is the department of HPPWD which had
engaged petitioner without following of the procedure although subject to funds and availability of
work. As such, when there is no closure of any unit by respondent which the petitioner was
engaged, judgment of Mackinon Machenize cannot be made applicable.
22. After hearing the rival contentions of the parties and case law relied by them, it can be
safely concluded that delay in raising industrial dispute is certainly important aspect/circumstance
which court has to keep in mind while exercising discretion. In para nos. 20 and 21 of the judgment
as referred to in this case reported in 2013 (136) FLR 893 (SC) titled as Assistant Engineer
Rajasthan Development Corporation and another vs. Geetam Singh provides that before
exercising its judicial discretion, the Labour Court or Tribunal has to keep in mind all relevant
factors including the mode and manner of appointment, nature of employment, length of service,
the ground on which termination has been set aside and delay in raising industrial dispute before
grant of relief. It was observed by the Hon'ble Apex Court in judgment (2013 supra) before that
workman had worked for 286 days and had raised industrial dispute in 1992 whereas her services
have been terminated in 1986 and she raised industrial dispute after six years. The Hon'ble Apex
Court has held that though compensation awarded by Single Judge of the Hon'ble High Court was
too low and liable to be enhanced by the Division Bench but surely reinstatement of the
workman in the facts and circumstances is not the appropriate relief and thus Hon'ble Apex
Court awarded a lump-sum of Rs.1 lakh along-with interest @ 9% per annum if the respondent
failed to make payment of compensation within six weeks from the date of judgment. In the case in
hand before this court factors which have weighed are that the petitioner in all remained engaged
for about 11 years and actually worked for 826 days as per mandays chart on record and that the
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services of petitioner were disengaged in July, 2004 who worked as non skilled worker and had
raised industrial dispute by issuance of demand notice after about seven years i.e. demand notice
was given on 22.11.2011. Taking into consideration factors mentioned above in pursuance to
judgments of Hon'ble Apex Court referred to above, petitioner would not be entitled either for
reinstatement or for back wages but a lump-sum compensation would be appropriate relief in view
of judgment 2013 (139) FLR 25 (SC). The judgments relied upon by Ld. Counsel for petitioner on
the matter of delay and laches is more or less settled law that claim of the petitioner could not be
solely declined on the ground of delay and laches. Similarly, judgment of Hon'ble Apex Court in
2014 titled as Raghubir Singh's case also does not come to the rescue of the petitioner as in this
judgment also the Hon'ble Apex Court has reiterated the mandate as given by the Hon'ble Apex
Court in previous judgment in the year 2013 i.e. Assistant Engineer, Rajasthan State
Agriculture Marketing Board, Sub-Division Kota and Mohan Lal's case. I have gone through
these judgments which are not attracted in this present case as this court not declining relief to the
petitioner on the ground of limitation rather on the basis of guidelines of Hon‟ble Apex Court laid
down in judgment of 2013 as referred to above. Ld. Dy. D.A. representing State/respondents has
relied upon the judgment of Hon'ble Apex Court reported in AIR 2016 SC 2984 titled as
Prabhakar v. Joint Director Sericulture Department and another. I have gone through the
judgment which deals reference under Section 10 of the Industrial Disputes Act in which it has
been held that Hon'ble High Court can intervene in writ jurisdiction under Article 226 when
reference has been challenged on the ground of inordinate unexplained delay. Since the reference
made by the Government in this case is not in challenge before this Court, the above said judgment
would not be attracted in the facts and circumstances of the case. Moreso in view of observation
qua facts made in judgment (2016) supra, claimant/petitioner was found to be an educated person
who was working as Clerk whereas in case before this Court, the petitioner is an illiterate unskilled
worker. For the above-said reasons, plea of delay and laches would not eclipse claim of petitioner.
23. In view of foregoing discussion, a lump-sum compensation of Rs.1,20,000/- (Rupees
one lakh twenty thousand only) would be an appropriate relief to which the petitioner is entitled in
the facts and circumstances of the case as stated above. It is further made clear that amount of
compensation shall be paid within four months from the date of receipt of Award failing which the
petitioner would be entitled for interest @ 9% per annum from date of Award till its realization.
Issues No. 1 to 3 are answered accordingly.
Issue No. 4 :
24. On the plea of non-maintainability of the claim petition under Section 10 of the
Industrial Disputes Act, ld. Dy. D.A. representing respondent department has failed to allege in
reply in what manner petition is not maintainable. Thus, vague plea merits rejection outright.
Otherwise also, from pleadings and evidence on record, no inference of claim petition being not
maintainable could be raised against claimant/petitioner. This issue is decided in favour of
petitioner and against the respondent.
RELIEF
25. As sequel to my findings on foregoing issues, the respondent is hereby directed to pay
the compensation of Rs.1,20,000/- (Rupees one lakh twenty thousand only) to the petitioner in lieu
of the reinstatement, back wages, seniority and past service benefits. Amount of compensation so
awarded will be paid by the respondent to the petitioner within four months from the date of receipt
of Award failing which the respondent shall be liable to pay the interest @ 9% per annum on the
said amount from the date of award till the date of its realization. In the peculiar circumstances of
the case, the parties are left to bear their own costs.
26. The reference is answered in the aforesaid terms.
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27. A copy of this Award be sent to the appropriate Government for publication in the
official gazette.
28. File, after due completion be consigned to the Record Room.
Announced in the open Court today this 4th day of October, 2017.
(K. K. Sharma)
Presiding Judge,
Labour Court-cum-Industrial Tribunal,
Kangra at Dharamshala, H.P.
__________
IN THE COURT OF SHRI K. K. SHARMA, PRESIDING JUDGE, LABOUR COURT-
CUM-INDUSTRIAL TRIBUNAL, KANGRA AT DHARAMSHALA (HP)
Ref. No.
: 502/2015
Date of Institution : 09.11.2015
Date of Decision : 04.10.2017
Ms. Laxmi Devi d/o Shri Man Singh, r/o Village Kawas, P.O. Killar, Tehsil Pangi, District
Chamba, H.P.
...Petitioner.
Versus
The Executive Engineer, Killar Division, H.P.P.W.D., Killar (Pangi) District Chamba, H.P.
...Respondent.
Reference under Section 10 (1) of the Industrial Disputes Act, 1947
For the Petitioner : Sh. Rajeev Dharmani, Adv.
For the Respondent : Sh. Sanjeev Singh Rana, Dy. D.A.
AWARD
The reference given below has been received from the appropriate Government for
adjudication:
“Whether the industrial dispute raised by the worker Ms. Laxmi Devi d/o Shri Man
Singh, r/o Village Kawas, P.O. Killar, Tehsil Pangi, District Chamba, H.P. before the
Executive Engineer, Killar Division, H.P.P.W.D., Killar (Pangi), District Chamba,
H.P. vide demand notice dated 20-12-2011 regarding her alleged illegal termination of
services during October, 2000 suffers from delay and latches? If not, Whether
termination of services of Ms. Laxmi Devi D/O Shri Man Singh, r/o Village Kawas,
P.O. Killar, Tehsil Pangi, District Chamba, H.P. by the Executive Engineer, Killar
Division, H.P.P.W.D., Killar (Pangi), District Chamba, H.P. during October, 2000,
without complying the provisions of the Industrial Disputes Act, 1947, is legal and
justified? If not, what amount of back wages, seniority, past service benefits and
compensation the above aggrieved workman is entitled to from the above employer?”
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2. On receipt of reference from appropriate government, notices were issued to the parties
in pursuance to which claimant/petitioner has filed statement of claim.
3. Brief facts as enumerated in the present claim petition by the petitioner above named
revealed that she had been initially engaged as daily wage Beldar on muster roll basis in the year
1994 who continuously worked till 1999 with the respondent. Averments made in the petition
further revealed that petitioner had worked for 160 days in each calendar year as per the criteria
prescribed for tribal area of Pangi Tehsil District Chamba and became eligible for continuous
service envisaged under statutory provisions of Section 25-B of the Industrial Disputes Act, 1947
(hereinafter referred to as ‘the Act’ for brevity). Averments made in the petition revealed that the
services of petitioner had been interrupted by way of intermittent/artificial breaks given by the
respondent/department deliberately and as such breaks are required to be counted as ‘continuous
services’ for the purposes of calculation of 160 days for the applicability of Section 25-B of the
Act. The grievance of petitioner remains that respondent/department had terminated/disengaged
petitioner from daily wage service orally without issuing one month's notice in writing stipulating
therein reason for retrenchment besides no retrenchment compensation was paid to petitioner when
respondent had been illegally terminated. It is also alleged that respondent had not followed the
provisions of Section 25-F of the Act while disengaging petitioner from service. It is stated that
petitioner is very poor who has no source of income besides after termination of the services of
petitioner, petitioner had approached the respondent time and again but of no avail. The grievance
of petitioner further remains that when the services of petitioner had been terminated,
respondent/department had reengaged number of new workman from time to time and while doing
so, respondent had not followed the principle of 'Last come, First go' envisaged under Section 25-G
of the Act. It is further alleged that respondent/department had continuously retained junior to
petitioner who are still in service namely Suraj Ram who appointed in 1997, Chunku Ram in 2000,
Budhi Ram in 2003 and Dev Raj in 2007. The claimant/petitioner claimed that she had spotless
service record who never been charge-sheeted for any act of indiscipline or negligence or her
conduct and even at the time of verbal termination, no charge-sheet had been served upon her and
the at the same time, no opportunity of hearing had been afforded to him. The petitioner also
alleges that she has remained unemployed ever since her illegal termination from year of 1999 till
the date of institution of present claim petition who had been nowhere gainfully employed and was
thus entitled for full back wages. Accordingly alleging respondent to have committed violation of
statutory provision of Section 25-F, Section 25-G and Section 25-H of the Industrial Disputes Act,
1947 and thus petitioner prays for setting aside oral order of termination/retrenchment of
respondent in the year 1999. She further prayed for reinstatement in service w.e.f. year 1999 along-
with back wages, seniority including continuity in service as petitioner as she had remained
unemployed since the date of her illegal termination. The petitioner has also prayed that period of
intermittent/fictional breaks deliberately given time and again during entire service of petitioner
between 1994 to 1999 be counted 160 days continuous service and regularization of the services of
petitioner w.e.f. 1-1-2003 under 10 years regularization policy and to any other relief petitioner is
entitled.
4. The respondent contested claim petition, filed reply inter-alia taken preliminary
objections of maintainability, claim petition being bad on account of delay and laches. On merits
denied that petitioner had worked for more than 160 days in each calendar year rather clarified by
stating that petitioner was engaged as daily waged Beldar in 1995 who remained engaged till 1999
but had worked intermittently as petitioner used to come and attend the work at her own sweet will
and convenience. Relying upon the mandays chart, it has been categorically pleaded by the
respondent that petitioner had not completed 160 days in each calendar year as required for tribal
area of Pangi Tehsil. The allegations of fictional breaks given by respondent to the petitioner have
been specifically denied. In so far as engagement of persons junior to petitioner mentioned in para
No. 10 of the claim petition were appointed as per order of Labour Court and no other juniors to the
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petitioner had been retained in service by the respondent. On the plea of termination of service of
petitioner, respondent specifically alleges that petitioner had left the job at her own will therefore
serving of notice or pay in lieu thereof was not required. Reiterating its stand respondent has
maintained that petitioner had left the work of her own sweet will and the persons mentioned in
para no.10 are stated to have engaged as per direction of the Labour Court-cum-Industrial Tribunal
Dharamshala and respondent had not violated the principle of 'Last come, First go'. It is also
contended that if petitioner had been terminated in 1999 she would have definitely raised industrial
dispute immediately and that after thirteen years petitioner is stated to be agitating the matter which
is bad on account of delay and laches. It is also contended that since the services of petitioner had
not been terminated by the respondent, question of issuance of notice or wages in lieu thereof did
not arise and at the same time, there was no necessity for charge-sheet or issuing any notice of
petitioner after her termination. It is contended that petitioner was agriculturist and gainfully
employed and was thus not entitled for back wages.
5. The petitioner filed rejoinder, reiterated her stand as maintained in the claim petition.
Further asserted that provisions of Limitation Act did not eclipse the claim of petitioner in totality
besides allegation of violation of principle of 'Last come First go' was specifically denied.
6. In order to prove her case, petitioner had examined herself as PW1 tendered/proved her
affidavit Ex. PW1/A under Order 18 Rule 4 CPC, Ex. PW1/B copy of demand notice, Ex. PW1/C
copy of order dated 27.8.2015 and closed evidence. On the other hand, repudiating the evidence led
by the petitioner, respondent examined RW1 Shri D.R. Chauhan, the then Executive Engineer,
HPPWD Division Killar as RW1 tendered/proved mandays chart of petitioner Ex. RW1/B, Ex.
RW1/C copy of mandays chart of co-workers and closed the evidence.
7. I have heard the ld. counsel of petitioner and ld. Dy. D.A. representing respondent,
gone through records of the case carefully relevant for disposed of this case.
8. From the contentions raised, following issues were framed on 29-04-2016 for
determination:
1. Whether the industrial dispute raised by petitioner vide demand notice dated
20-12-2011 qua her termination of service during October, 2000 by respondent suffers
from the vice of delay and laches as alleged? If so, its effect?
...OPP.
2. Whether termination of the services of the petitioner by the respondent during October,
2000 is/was illegal and unjustified as alleged?
...OPP.
3. If issue No. 2 is proved in affirmative, to what service benefits the petitioner is entitled
to?
...OPP.
4. Whether the claim petition is not maintainable in the present form as alleged? ...OPR.
Relief.
9. For the reasons detailed here under, my findings on the above issues are as follows:—
Issue No.1 : Discussed
Issue No. 2 : Yes
Issue No. 3 : Discussed
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Issue No. 4 : No
Relief : Petition is partly allowed awarding compensation of Rs.75,000/- per operative part
of award.
REASONS FOR FINDINGS
Issues no.1 to 3 :
10. All these issues have been taken up together for discussion being interconnected which
can be disposed of simultaneously without repetition of evidence.
11. Relationship of petitioner having been engaged as daily waged beldar by respondent on
muster roll basis in the year 1994 continuously worked till 1999 with the respondent is not in
dispute. Admittedly, petitioner was engaged without any written order or settlement of terms and
conditions by the respondent. It is equally not in dispute that no written order was passed while
terminating service of the petitioner as claim of respondent remains that it had not retrenched
petitioner from service who had abandoned the job of her own and used to work intermittently as
per her own wish and convenience. However, there is dispute with regard to period for which the
petitioner has worked with respondent. It is evident from mandays chart Ex. RW1/B coupled with
pleadings of respondent that petitioner had worked from 1995 till October, 1999 whereas the
claimant/petitioner alleges that he had worked from 1994 to 1999. Since the claim of petitioner is
not substantiated from any corresponding documentary evidence on record, the only inference in
such situation could be drawn is that petitioner had been factually engaged w.e.f. 1995 and not from
1994. Admittedly, the reference of appropriate govt. does not relate to plea of fictional breaks but
only with regard to petitioner's termination from service. In the backdrop of foregoing admitted
facts on record, claim of petitioner requires to be adjudicated with a view to determine if petitioner
is entitled for relief of reinstatement and back wages along-with seniority and past service benefits
and compensation as claimed by him.
12. Stepping into witness box as PW1 has sworn in affidavit Ex. PW1/A reiterating and
reaffirming her pleadings as stipulated in claim petition. In her affidavit she has claimed to have
worked with the respondent/department for more than 160 days in Pangi Sub Division Chamba
District and remained engaged from 1994 to 1999. She has also stated on oath that no notice under
Section 25-F of the Act was given by the respondent before terminating her service and at the same
time no compensation in lieu thereof notice period was paid to her and thus her termination was
illegal and void entitling petitioner benefit of reinstatement of service with full back wages and all
the other consequential service benefits. The petitioner has further alleged on oath that
respondent/department after terminating her services in the year 1999 by oral order had engaged
several co-workers who were junior to petitioner were retained in service. Not only this, the
persons who were junior to petitioner are stated to have been regularized in service and thus
respondent had not followed the mandate of Sections 25-G and 25-H of the Act which was
obligatory on its part. The case of petitioner also remains that she had served respondent with due
diligence and had spotless service record as respondent/department had never called any
explanation or raised charge-sheet against her but even while retrenching petitioner from service,
no notice was given. The petitioner has also explained reason for not approaching the authorities
under Labour Act and thereafter before this Tribunal, as there existed no road between Chamba
town to Pangi Tehsil till 2011 and petitioner had moved before the Labour Officer raising demand
notice consequent upon which a failure report was submitted and as the Labour Commissioner did
not make reference for industrial dispute raised by petitioner, the petitioner had moved before the
Hon'ble High Court by filing CWP where direction was passed for making reference to the Labour
Court due to which delay had occurred and same was satisfactorily explained.
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13. In so far as plea of abandonment raised by respondent is concerned, the same merits
rejection in view of the fact that respondent had failed to produce any record by which it could be
established that whenever petitioner absented from her duty as also reflected in mandays chart Ex.
RW1/B any notice or letter was ever issued. On this point respondent as RW1 has specifically
admitted that whenever petitioner abandoned the job, no notice had been issued. RW1 specifically
admitted that no departmental inquiry was initiated against petitioner even after the year 1999. No
reason whatsoever has been assigned for such any action or omission on the part of respondent in
not initiating any departmental proceedings or making correspondence calling upon the petitioner
to join service. This prima facie belies the stand taken by the respondent as abandonment has to be
proved like any other fact in issue. The petitioner, on the other hand, as PW1 in cross-examination
has specifically denied that she used to leave the job in between and attended the work
intermittently rather she has claimed that intermit breaks had been deliberately given to her by the
respondent in the service record of petitioner so that petitioner did not complete 160 days of work
as required for Pangi Tehsil area and also for applicability of Section 25-B of the Act. As such, in
absence of any specific and reliable evidence led by respondent, it would be unsafe to hold that
respondent had established plea of abandonment.
14. A bare glance on the mandays chart Ex. RW1/B would reveal that petitioner had
worked for 52 days in the year, 1995, 154 days in 1996, 145 days in 1997, 162 days in 1998 and
143 ½ days in 1999 and thus a total of her service in 1995 to 1999 in 05 years she had worked for
656.5 days in her entire service period. Be it noticed that except the years 1995 to 1997 and 1999
petitioner had worked for more than 160 days and as there is no reference from the Labour
Commissioner, Shimla on the point of artificial breaks, this court is to confine its findings only with
regard to alleged illegal termination. It is evident from mandays chart Ex. RW1/B that in the year
1999 the petitioner had merely worked for 143 ½ days and thus immediately in preceding 12
calendar months from the month of termination of petitioner had rendered service of 160 days so as
to meet requirement of law of having continuous service of one year and thus it was at all required
from respondent to have issued a notice envisaged under Section 25-F of the Act. As such, the
respondent is held to have violated the provisions of Section 25-F of the Act.
15. Ld. Counsel for petitioner has contended with vehemence that large number of workers
who were junior to petitioner had been appointed and these workers have been retained in service
and regularized. The grievance of petitioner remains that principle of 'Last come First go' was not
followed as the juniors were retained and services of petitioner despite being senior was terminated
without any valid reason. Ex. RW1/C is the year-wise mandays of daily waged workers who were
junior to the petitioner and had joined in the year 1997 or thereafter. All of these co-workers shown
in Ex. RW1/C the year-wise mandays details of workers of Division HPPWD Killar were certainly
junior to petitioner who were given sufficient work existing in those years more than 200 days in a
year whereas the petitioner had been not given muster roll for the whole month. Ex. RW1/C also
established that all the co-workers shown in this document have worked for more than 160 days in
most of the years although they were junior to petitioner. Evidently, there is no iota of evidence of
respondent establishing that petitioner was called upon to join for service at any time after 1998
even at the time when junior persons were reengaged. That being so the respondent had certainly
violated the provisions of Section 25-G of the Act as the juniors workers mentioned in para no.10
of the affidavit were retained whereas petitioner was senior from these co-workers having joined
service in 1995 was terminated and even thereafter respondent omitted to afford opportunity to
petitioner for reemployment for work which also violates the provisions of Section 25-H of the Act.
Ld. counsel for petitioner has placed reliance upon judgment of Central Bank of India vs. S.
Satyam, 1996 (5) SCC 419 in which Hon'ble Apex Court has held that for the applicability of
Section 25-G and 25-H of the Act, there was no necessity of claimant/petitioner to have worked
for 240 days as in case of provisions of Section 25-F of the Act.
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16. Ld. Dy. D.A. representing respondent has made futile attempt to justify engagement
junior worker and their retention in service in pursuance to Awards passed by Labour Court. On the
other hand, ld. counsel for petitioner relied upon Ex. PW1/C the order dated 27-8-2015 of Hon'ble
High Court of H.P. vide which the orders qua termination passed as against respondent and several
other were quashed. That being so the relief was granted in favour of the petitioner who was
directed to be reinstated with others. As such, even when petitioner is proved to have not worked
for more than 160 days in preceding 10 years which entitled him for regularization of his service
per government policy, yet respondent is not absolved from its accountability for complying the
provisions of Sections 25-G and 25-H of the Act and as such, it is held that respondent had violated
the provisions of Sections 25-G and 25-H of the Industrial Disputes Act.
17. Ld. Counsel for petitioner has contended that after petitioner's termination in 1998, she
had remained unemployed and was not earning anything thereafter as such was entitled for full
back wages. Repudiating the arguments of Ld. Counsel of petitioner, Ld. Dy. D.A. for the State has
taken this court through cross-examination of the petitioner who has admitted that she had
cultivatable land with her and also worked a private labourer. Thus, plea of having remained not
gainfully employed gets belied admission of petitioner in cross-examination in which she had
maintained that she had been earning from agricultural land as well as she has been working as
daily wager privately. Reliance has been placed on the judgment of Hon'ble Apex Court North
East Karnataka Road Transport Corporation vs. M. Nagangouda (2007) 10 SCC 765 in which
Division Bench comprising of Justice A.R. Lakshmanan and Justice Altamas Kabir had held that
'term gainfully employment would also include self employment wherefrom income is
generated. It was income either from employment in an establishment or from self
employment merely differentiates the sources from which income is generated, the end use
being the same'. Applying the ratio of judgment of 2007 (supra) to this case since the petitioner
was earning from her agricultural and manual pursuits, the same were sufficient to maintain her and
her family. It is thus held that petitioner was gainfully employed. Be it stated here that Hon'ble
Apex Court in Deepali Gundu Surwase's case has held that the Labour Court was not justified in
holding that merely because the respondent was receiving agriculture income, she cannot be treated
to be engaged in gainful employment. Since the petitioner had income from agriculture pursuits for
her livelihood it cannot be stated that petitioner was not gainfully employed and thus would not be
entitled full back wages. In view of the forgoing discussion, it is held that the relationship of
workman and employer existed between petitioner and respondent and that petitioner was illegally
retrenched without compliance of Sections 25-F, 25-G and Section 25-H of the Act although
remained gainfully employed after her retrenchment. Thus, applying the ratio of judgment of
Hon'ble Apex Court (2007 supra), it may not be erroneous to hold that petitioner was gainfully
employed and thus would be not entitled for back wages for the period she was out of job on being
terminated by the respondent.
18. Lastly, Ld. Dy. D.A. for State has contended with vehemence that there is inordinate
and explained delay which disentitles petitioner relief claimed for by him. On the other hand, Ld.
Counsel for the petitioner has relied upon the judgment of Hon'ble Apex Court titled Raghubir
Singh vs. General Manager, Haryana Roadways, Hissar reported in 2014 Lab IC 4266 (SC)
and the relevant paras of the judgment are produced below for reference:
“12. Therefore, in our considered view, the observations made by this Court in the
Rajasthan State Agriculture Marketing Board case (supra) upon which the learned
Additional Advocate General for the State of Haryana has placed reliance cannot be
applied to the fact situation of the case on hand, for the reason that the Labour Court
has erroneously rejected the reference without judiciously considering all the relevant
factors of the case particularly the points of dispute referred to it and answered the 2nd
issue regarding the reference being barred by limitation but not on the merits of the
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case. The said decision has no application to the fact situation and also for the reason
the catena of decisions of this Court referred to supra, wherein this Court has
categorically held that the provisions of Limitation Act under Article 137 has no
application to make reference by the appropriate government to the Labour
Court/Industrial Tribunal for adjudication of existing industrial dispute between
workmen and the employer.
13. In the case on hand, no doubt there is a delay in raising the dispute by the
appellant; the Labour Court nevertheless has the power to mould the relief
accordingly. At the time of adjudication, if the dispute referred to the Labour
Court is not adjudicated by it, it does not mean that the dispute ceases to exist.
The appropriate government in exercise of its statutory power under Section 10(1)(c)
of the Act can refer the industrial dispute, between the parties, at any time, to either the
Jurisdictional Labour Court/Industrial Tribunal as interpreted by this Court in the Avon
Services case referred to supra. Therefore, the State Government has rightly exercised
its power under Section 10(1)(c) of the Act and referred the points of dispute to the
Labour Court as the same are in accordance with the law laid down by this Court in
Avon Services & Sapan Kumar Pandit cases referred to supra.
14. Further, the workman cannot be denied to seek relief only on the ground of delay
in raising the dispute as held in the case of S.M. Nilajkar & Ors. v. Telecom
District Manager, Karnataka[4] it was held by this Court as follows:—
“17. It was submitted on behalf of the respondent that on account of delay in raising
the dispute by the appellants the High Court was justified in denying relief to the
appellants. We cannot agree...... in Ratan Chandra Sammanta and Ors. v. Union of
India and Ors. (supra)1993 AIR SCW 2214, it was held that a casual labourer
retrenched by the employer deprives herself of remedy available in law by delay itself,
lapse of time results in losing the remedy and the right as well. The delay would
certainly be fatal if it has resulted in material evidence relevant to adjudication being
lost and rendered not available. However, we do not think that the delay in the case at
hand has been so culpable as to disentitle the appellants for any relief.....” (Emphasis
laid by the Court) in view of the legal principles laid down by this Court in the above
judgment, the reference of the industrial dispute made in the case on hand by the State
Government to the Labour Court to adjudicate the existing industrial dispute between
the parties was made within a reasonable time, considering the circumstances in which
the workman was placed, firstly, as there was a criminal case pending against her and
secondly, the respondent had assured the workman that she would be reinstated after
her acquittal from the criminal case. Moreover, it is reasonable to adjudicate the
industrial dispute in spite of the delay in raising and referring the matter, since there is
no mention of any loss or unavailability of material evidence due to the delay. Thus,
we do not consider the delay in raising the industrial dispute and referring the same to
the Labour Court for adjudication as gravely erroneous and it does not debar the
workman from claiming rightful relief from her employer.
15. In the case of Ajaib Singh v. The Sirhind Co-operative Marketing-cum-Processing
Service Society Limited & Anr.[5] this Court has opined that relief cannot be denied to
the workman merely on the ground of delay, stating that:—
“10. It follows, therefore, that the provisions of Article 137 of the Schedule to
Limitation Act, 1963 are not applicable to the proceedings under the act and that the
relief under it cannot be denied to the workman merely on the ground of delay. The
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plea of delay if raised by the employer is required to be proved as a matter of fact by
showing the real prejudice and not as a merely hypothetical defence. No reference to
the labour court can be generally questioned on the ground of delay alone. Even in a
case where the delay in shown to be existing, the tribunal, labour court or board,
dealing with the case can appropriately mould the relief by declining to grant back
wages to the workman till the date she raised the demand regarding her illegal
retrenchment/termination or dismissal. The Court may also in appropriate cases direct
the payment of part of the back wages instead of full back wages.....” (Emphasis laid
by the Court).
16. Hence, we are of the opinion, having regard to the fact and circumstances of the case
that there is no delay or latches on the part of the workman from the date of her
acquittal in the criminal case. Thereafter, upon failure of the respondent in adhering to
the assurance given to the workman that she would be reinstated after her acquittal
from the criminal case, the workman approached the conciliation officer and the State
Government to make a reference to the Labour Court for adjudication of the dispute
with regard to the order of dismissal passed by the respondent. Keeping in mind the
date of acquittal of the appellant and the date on which she approached the conciliation
officer by raising the dispute, since the respondent had not adhered to its assurance, the
State Government had rightly referred the dispute for its adjudication. Therefore it
cannot be said that there was a delay on the part of the appellant in raising the dispute
and getting it referred to the Labour Court by the State Government.
17. Further, the Labour Court on an erroneous assumption of law framed the
additional issue regarding the limitation in raising the dispute and its reference
by the State Government to the Labour Court. Thus, the Labour Court has ignored
the legal principles laid down by this Court in the cases referred to supra. The award
passed by the Labour Court was accepted erroneously by both the learned single Judge
and the Division Bench of the High Court by dismissing the Civil Writ Petition & the
Letters Patent Appeal without examining the case in its proper perspective, keeping in
view the power of the State Government under Section 10(1)(c) and the object and
intendment of the Act. Not adjudicating the existing industrial dispute on merits
between the parties referred to it may lead to disruption of industrial peace and
harmony, which is the foremost important aspect in Industrial Jurisprudence as the
same would affect the public interest at large.
19. Ld. Dy. D.A. representing respondent department has also contended with vehemence
that claim petition is barred by limitation on account of delay and laches. It has been pointed that
termination of petitioner in this case took place on 1999 and the industrial dispute was raised after
several years of retrenchment. Repudiating the argument by Ld. Counsel, ld. AR for the petitioner
has placed reliance upon judgment reported in 2007 LHLJ 903 Hon'ble High Court of H.P.
(Bhatag Ram's case) in which it has been held that delay in raising dispute may be considered by
court at the time of granting final relief however in various other judgments even longer delay has
been condoned. In Divisional Manager, HPFC & another vs. Garibu Ram, Latest HLJ 2007
(HP) 1160, delay of more than 10 years was condoned besides Hon'ble High Court has held that
principle of Limitation Act is not applicable to the industrial dispute. Similar view was taken by
Hon'ble Apex Court in Ajayab Singh vs. Sirhind Co-operative Marketing-cum-Processing
Society Limited and Another (1999) 6 SCC 82 in which it has been held that the principle of
Limitation Act, 1963 did not apply to the proceeding under the Industrial Disputes Act.
20. Relying upon the aforestated judgment, it has been contended that claim of petitioner
cannot be defeated on the point of delay and laches. Repudiating arguments advanced by Ld.
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counsel for petitioner, Ld. Dy. D.A. has placed reliance upon the judgment of Hon'ble Apex Court
titled as Assistant Engineer, Rajasthan State Agriculture Marketing Board, Sub-Division
Kota and Mohan Lal [2013 (139) FLR 125], the relevant para of the judgment are produced
below for reference:
Industrial Disputes Act, 1947-Sections 25-F and 10-Limitation Act, 1963- Section 5-
Industrial dispute-Termination of service-Finding of Labour Court that workman had
completed 240 days in calendar year and her termination was in violation of section
25-F of the I.D.Act- Workman worked from 1.11.1984 to 17.2.1986 in all 286 days
during employment. her services terminated on 18.2.1986. Industrial dispute raised
after 6 years of termination. Admitted delay of 6 years not kept in view by the Labour
Court-Judicial discretion exercised by the Labour Court flawed and unsustainable.
Reinstatement of the workman not the appropriate relief. In lieu of reinstatement
compensation of Rs. one lac directed to be paid to the workman by the appellant
employer within six weeks failing which interest @ workman 9% P.A. will be payable.
[Paras 21 and 22].
Limitation Act, 1963. Section 5- Industrial Disputes Act, 1947- Section 25-F-
Termination of service- Industrial dispute raised after six years- Limitation Act not
applicable to reference made under the I.D. Act-Delay in raising industrial
disputes definitely an important circumstances which the Labour Court must
keep in view before granting relief.
21. Repudiating the arguments by Ld. Dy. D.A. for the State, Ld. Counsel for
claimant/petitioner has relied upon the judgment of Hon'ble Apex Court in case titled as Tapash
Kumar Paul vs. BSNL & another reported in AIR 2015 SC 357 wherein Hon'ble Court held that
a Court may pass an order of reinstatement by awarding compensation but the same has to be based
on justifiable grounds. In this judgment, it was held that compensation can be granted in a situation
where the industry is closed or that employees has superannuated or going to retire shortly and no
period is left to her credit or where workman has been rendered in capacitated to discharge duties
cannot be reinstated and/or fourthly when she has lost confidence of the management to discharge
duties. It was observed that there may be appropriate cases on facts which may justify substituting
an order of reinstatement by award of compensation but that has to be supported by some legal
and justifiable reasons indicating why the reinstatement should be followed to be substituted
by award of compensation. Ld. Counsel for the petitioner with the aid of above-said judgment had
argued that there are only four situations when a worker may be awarded compensation instead of
reinstatement but the judgment has certainly not been correctly appreciated by Ld. Counsel as this
judgment postulates probable four situations which are illustrate in nature where compensation may
be awarded instead of reinstatement but that does not mean that except the four grounds, no other
ground would be appropriate for awarding compensation. In the case in hand before this court, it
has come that petitioner had abandoned the job who did not report for duty for several years and
later gave notice requesting for joining of duties but the conditions in para No.5 of judgment (2015
supra) even if not met requirement, cannot be a ground to reinstate the petitioner and it is only
compensation which would be appropriate relief. Ld. Counsel for the petitioner has relied upon the
judgment of Hon'be Apex Court titled as Deepali Gundu Surwase vs. Kranti Junior Adhyapak
Mahavidyalaya (D.Ed.) and Ors. reported in AIR 2014 SC (Supp) 121, Raghubir Singh vs.
General Manager, Haryana Roadways, Hissar reported in 2014(3) Apex Court Judgments 652.
I have gone through these judgments and of view that they don't come to rescue the petitioner on
point of reinstatement instead of compensation. Ld. Dy. D.A. for State on the other hand has relied
upon the judgment of Hon'ble Apex Court in Vice Chancellor, Lucknow University, Lucknow,
Uttar Pradesh v. Akhilesh Kumar Khare & another reported in AIR 2015 SC 3473. It has been
contended that engagement of claimant/petitioner in this case was not through regular mode of
recruitment and applying the ratio of this judgment AIR 2015 SC supra, claim of petitioner for
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reinstatement can be negated and thus compensation would be sufficient for redressal of grievance
of the claimant/petitioner. Similarly, in 2016 (1) Him. L.R. 502 titled as State of Himachal
Pradesh and another vs. Chaman Singh relied by Ld. AR for petitioner interpretation of Section
137 of Limitation Act was involved which provides that Article 137 of Limitation Act did not apply
to industrial disputes. In 2014 (3) Apex Court Judgment 652 (SC) similar view was reiterated
which clearly mandates that claimant/petitioner cannot be denied relief sought for merely on the
ground of delay and laches. That being so, the law remains as it was that ground of delay and
laches, claimant/petitioner cannot be denied relief rather the court has to consider various aspects
before moulding relief and the case in hand it would not be erroneous to mention here that the
claimant/petitioner can be reasonably indemnified by ordering compensation and not by
reinstatement. In so far as judgment of AIR 2015 SC 1373 titled as Mackinon Machenize &
Company Ltd. vs. Mackinon Employees Union is concerned, the Hon'ble Apex Court has held
on closure of unit of company principle of 'Last come First go' was not followed which violated
Section 25-G of Industrial Disputes Act and retrenchment was held illegal entitling petitioner for
retrenchment compensation. Since the facts of case of Mackinon Machenize's case are different
from case in hand as in former closure of unit of company was involved whereas in case in hand
before this court, there is no closure of company rather it is the department of HPPWD which had
engaged petitioner without following of the procedure although subject to funds and availability of
work. As such, when there is no closure of any unit by respondent which the petitioner was
engaged, judgment of Mackinon Machenize cannot be made applicable.
22. After hearing the rival contentions of the parties and case law relied by them, it can be
safely concluded that delay in raising industrial dispute is certainly important aspect/circumstance
which court has to keep in mind while exercising discretion. In para Nos. 20 and 21 of the
judgment as referred to in this case reported in 2013 (136) FLR 893 (SC) titled as Assistant
Engineer Rajasthan Development Corporation and another vs. Geetam Singh provides that
before exercising its judicial discretion, the Labour Court or Tribunal has to keep in mind all
relevant factors including the mode and manner of appointment, nature of employment, length of
service, the ground on which termination has been set aside and delay in raising industrial dispute
before grant of relief. It was observed by the Hon'ble Apex Court in judgment (2013 supra) before
that workman had worked for 286 days and had raised industrial dispute in 1992 whereas her
services have been terminated in 1986 and she raised industrial dispute after six years. The Hon'ble
Apex Court has held that though compensation awarded by Single Judge of the Hon'ble High Court
was too low and liable to be enhanced by the Division Bench but surely reinstatement of the
workman in the facts and circumstances is not the appropriate relief and thus Hon'ble Apex
Court awarded a lump-sum of Rs.1 lakh along-with interest @ 9% per annum if the respondent
failed to make payment of compensation within six weeks from the date of judgment. In the case in
hand before this court factors which have weighed are that the petitioner in all remained engaged
for about 05 years and actually worked for 656.5 days as per mandays chart on record and that the
services of petitioner were disengaged in the year 1999 who worked as non skilled worker and had
raised industrial dispute by issuance of demand notice after about twelve years i.e. demand notice
was given on 20-12-2011. Taking into consideration factors mentioned above in pursuance to
judgments of Hon'ble Apex Court referred to above, petitioner would not be entitled either for
reinstatement or for back wages but a lump-sum compensation would be appropriate relief in view
of judgment 2013 (139) FLR 25 (SC). The judgments relied upon by ld. counsel for petitioner on
the matter of delay and laches is more or less settled law that claim of the petitioner could not be
solely declined on the ground of delay and laches. Similarly, judgment of Hon'ble Apex Court in
2014 titled as Raghubir Singh's case also does not come to the rescue of the petitioner as in this
judgment also the Hon'ble Apex Court has reiterated the mandate as given by the Hon'ble Apex
Court in previous judgment in the year 2013 i.e. Assistant Engineer, Rajasthan State
Agriculture Marketing Board, Sub-Division Kota and Mohan Lal's case. I have gone through
these judgments which are not attracted in this present case as this court not declining relief to the
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petitioner on the ground of limitation rather on the basis of guidelines of Hon'ble Apex Court laid
down in judgment of 2013 as referred to above. Ld. Dy. D.A. representing State/respondents has
relied upon the judgment of Hon'ble Apex Court reported in AIR 2016 SC 2984 titled as
Prabhakar v. Joint Director Sericulture Department and another. I have gone through the
judgment which deals reference under Section 10 of the Industrial Disputes Act in which it has
been held that Hon'ble High Court can intervene in writ jurisdiction under Article 226 when
reference has been challenged on the ground of inordinate unexplained delay. Since the reference
made by the Government in this case is not in challenge before this Court, the above said judgment
would not be attracted in the facts and circumstances of the case. Moreso in view of observation
qua facts made in judgment (2016) supra, claimant/petitioner was found to be an educated person
who was working as Clerk whereas in case before this Court, the petitioner is an illiterate unskilled
worker. For the above-said reasons, plea of delay and laches would not eclipse claim of petitioner.
23. In view of foregoing discussion, a lump-sum compensation of Rs.75,000/- (Rupees
seventy five thousand only) would be an appropriate relief to which the petitioner is entitled in the
facts and circumstances of the case as stated above. It is further made clear that amount of
compensation shall be paid within four months from the date of receipt of Award failing which the
petitioner would be entitled for interest @ 9% per annum from date of Award till its realization.
Issues No. 1 to 3 are answered accordingly.
ISSUE NO. 4 :
24. On the plea of non-maintainability of the claim petition under Section 10 of the
Industrial Disputes Act, Ld. Dy. D.A. representing respondent department has failed to allege in
reply in what manner petition is not maintainable. Thus, vague plea merits rejection outright.
Otherwise also, from pleadings and evidence on record, no inference of claim petition being not
maintainable could be raised against claimant/petitioner. This issue is decided in favour of
petitioner and against the respondent.
RELIEF
25. As sequel to my findings on foregoing issues, the respondent is hereby directed to pay
the compensation of Rs.75,000/- (Rupees seventy five thousand only) to the petitioner in lieu of the
reinstatement, back wages, seniority and past service benefits. Amount of compensation so
awarded will be paid by the respondent to the petitioner within four months from the date of receipt
of Award failing which the respondent shall be liable to pay the interest @ 9% per annum on the
said amount from the date of award till the date of its realization. In the peculiar circumstances of
the case, the parties are left to bear their own costs.
26. The reference is answered in the aforesaid terms.
27. A copy of this Award be sent to the appropriate Government for publication in the
official gazette.
28. File, after due completion be consigned to the record room.
Announced in the open Court today this 4th day of October, 2017.
Sd/-
(K. K. Sharma)
Presiding Judge,
Labour Court-cum-Industrial Tribunal,
Kangra at Dharamshala, H.P.
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IN THE COURT OF SHRI K. K. SHARMA, PRESIDING JUDGE, LABOUR COURT-
CUM-INDUSTRIAL TRIBUNAL, KANGRA AT DHARAMSHALA (H.P.)
Ref. No.
: 506/2015
Date of Institution
: 09-11-2015
Date of Decision
: 04-10-2017
Ms. Bhagtu d/o Shri Thakur Chand, r/o Village Udaini, P.O. Luj, Tehsil Pangi, District
Chamba, H.P.
...Petitioner.
Versus
The Executive Engineer, Killar Division, I.&P.H./H.P.P.W.D., Killar (Pangi), District
Chamba, H.P.
....Respondent.
Reference under Section 10 (1) of the Industrial Disputes Act, 1947
For the Petitioner
: Sh. Rajeev Dharmani, Adv.
For the Respondent
: Sh. Sanjeev Singh Rana, Dy. D.A.
AWARD
The reference given below has been received from the appropriate Government for
adjudication:
“Whether the industrial dispute raised by the worker Ms. Bhagtu d/o Shri Thakur
Chand, r/o Village Udaini, P.O. Luj, Tehsil Pangi, District Chamba, H.P. before the
Executive Engineer, Killar Division, I. & P.H./H.P.P.W.D., Killar (Pangi), District
Chamba, H.P., vide demand notice dated 18-01-2012 regarding his alleged illegal
termination of services during June, 1998 suffers from delay and latches? If not,
Whether termination of services of Ms. Bhagtu d/o Shri Thakur Chand, r/o Village
Udaini, P.O. Luj, Tehsil Pangi, District Chamba, H.P. by the Executive Engineer,
Killar Division, I.&P.H./H.P.P.W.D., Killar (Pangi), District Chamba, H.P. during
June, 1998, without complying the provisions of the Industrial Disputes Act, 1947, is
legal and justified? If not, what amount of back wages, seniority, past service benefits
and compensation the above aggrieved workman is entitled to from the above
employer?”
2. On receipt of reference from appropriate government, notices were issued to the parties
in pursuance to which claimant/petitioner has filed statement of claim.
3. Brief facts as enumerated in the present claim petition by the petitioner above named
revealed that she had been initially engaged as daily wage beldar on muster roll basis in the year
1992 who continuously worked till 1998 with the respondent. Averments made in the petition
further revealed that petitioner had worked for 160 days in each calendar year as per the criteria
prescribed for tribal area of Pangi Tehsil, District Chamba and became eligible for continuous
service envisaged under statutory provisions of Section 25-B of the Industrial Disputes Act, 1947
(hereinafter referred to as 'the Act' for brevity). Averments made in the petition revealed that the
services of petitioner had been interrupted by way of intermittent/artificial breaks given by the
respondent/department deliberately and as such breaks are required to be counted as 'continuous
services' for the purposes of calculation of 160 days for the applicability of Section 25-B of the Act.
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The grievance of petitioner remains that respondent/department had terminated/disengaged
petitioner from daily wage service orally without issuing one month's notice in writing stipulating
therein reason for retrenchment besides no retrenchment compensation was paid to petitioner when
respondent had been illegally terminated. It is also alleged that respondent had not followed the
provisions of Section 25-F of the Act while disengaging petitioner from service. It is stated that
petitioner is very poor who has no source of income besides after termination of the services of
petitioner, petitioner had approached the respondent time and again but of no avail. The grievance
of petitioner further remains that when the services of petitioner had been terminated,
respondent/department had reengaged number of new workman from time to time and while doing
so, respondent had not followed the principle of 'Last come, First go' envisaged under Section 25-G
of the Act. It is further alleged that respondent/department had continuously retained junior to
petitioner who are still in service namely Suraj Ram who appointed in 1997, Chunku Ram in 2000,
Budhi Ram in 2003 and Dev Raj in 2007. The claimant/petitioner claimed that she had spotless
service record who never been charge-sheeted for any act of indiscipline or negligence or her
conduct and even at the time of verbal termination, no charge-sheet had been served upon her and
the at the same time, no opportunity of hearing had been afforded to him. The petitioner also
alleges that she has remained unemployed ever since her illegal termination from year of 1998 till
the date of institution of present claim petition who had been nowhere gainfully employed and was
thus entitled for full back wages. Accordingly alleging respondent to have committed violation of
statutory provision of Section 25-F, Section 25-G and Section 25-H of the Industrial Disputes Act,
1947 and thus petitioner prays for setting aside oral order of termination/retrenchment of
respondent in the year 1998. She further prayed for reinstatement in service w.e.f. year 1998 along-
with back wages, seniority including continuity in service as petitioner as she had remained
unemployed since the date of her illegal termination. The petitioner has also prayed that period of
intermittent/fictional breaks deliberately given time and again during entire service of petitioner
between 1992 to 1998 be counted 160 days continuous service and regularization of the services of
petitioner w.e.f. 1-1-2002 under 10 years regularization policy and to any other relief petitioner is
entitled.
4. The respondent contested claim petition, filed reply inter-alia taken preliminary
objections of maintainability, claim petition being bad on account of delay and laches. On merits
denied that petitioner had worked for more than 160 days in each calendar year rather clarified by
stating that petitioner was engaged as daily waged beldar in 1993 who remained engaged till 1998
but had worked intermittently as petitioner used to come and attend the work at her own sweet will
and convenience. Relying upon the mandays chart, it has been categorically pleaded by the
respondent that petitioner had not completed 160 days in each calendar year as required for tribal
area of Pangi Tehsil. The allegations of fictional breaks given by respondent to the petitioner have
been specifically denied. In so far as engagement of persons junior to petitioner mentioned in para
no. 10 of the claim petition were appointed as per order of Labour Court and no other juniors to the
petitioner had been retained in service by the respondent. On the plea of termination of service of
petitioner, respondent specifically alleges that petitioner had left the job at her own will therefore
serving of notice or pay in lieu thereof was not required. Reiterating its stand respondent has
maintained that petitioner had left the work of her own sweet will and the persons mentioned in
para No.10 are stated to have engaged as per direction of the Labour Court-cum-Industrial Tribunal
Dharamshala and respondent had not violated the principle of 'Last come, First go'. It is also
contended that if petitioner had been terminated in 1998 she would have definitely raised industrial
dispute immediately and that after thirteen years petitioner is stated to be agitating the matter which
is bad on account of delay and laches. It is also contended that since the services of petitioner had
not been terminated by the respondent, question of issuance of notice or wages in lieu thereof did
not arise and at the same time, there was no necessity for charge-sheet or issuing any notice of
petitioner after her termination. It is contended that petitioner was agriculturist and gainfully
employed and was thus not entitled for back wages.
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5. The petitioner filed rejoinder, reiterated her stand as maintained in the claim petition.
Further asserted that provisions of Limitation Act did not eclipse the claim of petitioner in totality
besides allegation of violation of principle of 'Last come First go' was specifically denied.
6. In order to prove her case, petitioner had examined herself as PW1 tendered/proved her
affidavit Ex. PW1/A under Order 18 Rule 4 CPC, Ex. PW1/B copy of demand notice, Ex. PW1/C
copy of order dated 27.8.2015 and closed evidence. On the other hand, repudiating the evidence led
by the petitioner, respondent examined RW1 Shri D.R. Chauhan, the then Executive Engineer,
HPPWD Division Killar as RW1 tendered/proved mandays chart of petitioner Ex. RW1/B,
Ex. RW1/C copy of mandays chart of co-workers and closed the evidence.
7. I have heard the Ld. Counsel of petitioner and Ld. Dy. D.A. representing respondent,
gone through records of the case carefully relevant for disposed of this case.
8. From the contentions raised, following issues were framed on 29-04-2016 for
determination:
1. Whether the industrial dispute raised by petitioner vide demand notice dated 18.1.2012
qua her termination of service during June, 1998 by respondent suffers from the vice of
delay and laches as alleged? If so, its effect?
...OPP.
2. Whether termination of the services of the petitioner by the respondent during June,
1998 is/was illegal and unjustified as alleged?
...OPP.
3. If Issue No. 2 is proved in affirmative, to what service benefits the petitioner is entitled
to?
...OPP.
4. Whether the claim petition is not maintainable in the present form as alleged? ...OPR.
5.
Relief.
9. For the reasons detailed hereunder, my findings on the above issues are as follows:—
Issue No.1 : Discussed
Issue No. 2 : Yes
Issue No. 3 : Discussed
Issue No. 4 : No
Relief : Petition is partly allowed awarding compensation of Rs.60,000/- per operative
part of award.
REASONS FOR FINDINGS
Issues No. 1 to 3
10. All these issues have been taken up together for discussion being interconnected which
can be disposed of simultaneously without repetition of evidence.
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11. Relationship of petitioner having been engaged as daily waged beldar by respondent on
muster roll basis in the year 1992 continuously worked till 1998 with the respondent is not in
dispute. Admittedly, petitioner was engaged without any written order or settlement of terms and
conditions by the respondent. It is equally not in dispute that no written order was passed while
terminating service of the petitioner as claim of respondent remains that it had not retrenched
petitioner from service who had abandoned the job of her own and used to work intermittently as
per her own wish and convenience. However, there is dispute with regard to period for which the
petitioner has worked with respondent. It is evident from mandays chart Ex. RW1/B coupled with
pleadings of respondent that petitioner had worked from 1993 till 1998 whereas the
claimant/petitioner alleges that he had worked from 1992 to 1998. Since the claim of petitioner is
not substantiated from any corresponding documentary evidence on record, the only inference in
such situation could be drawn is that petitioner had been factually engaged w.e.f. 1993 and not from
1992. Admittedly, the reference of appropriate govt. does not relate to plea of fictional breaks but
only with regard to petitioner's termination from service. In the backdrop of foregoing admitted
facts on record, claim of petitioner requires to be adjudicated with a view to determine if petitioner
is entitled for relief of reinstatement and back wages along-with seniority and past service benefits
and compensation as claimed by him.
12. Stepping into witness box as PW1 has sworn in affidavit Ex. PW1/A reiterating and
reaffirming her pleadings as stipulated in claim petition. In her affidavit she has claimed to have
worked with the respondent/department for more than 160 days in Pangi Sub-Division, Chamba
district and remained engaged from 1993 to 1998. She has also stated on oath that no notice under
Section 25-F of the Act was given by the respondent before terminating her service and at the same
time no compensation in lieu thereof notice period was paid to her and thus her termination was
illegal and void entitling petitioner benefit of reinstatement of service with full back wages and all
the other consequential service benefits. The petitioner has further alleged on oath that
respondent/department after terminating her services in the year 1998 by oral order had engaged
several co-workers who were junior to petitioner were retained in service. Not only this, the
persons who were junior to petitioner are stated to have been regularized in service and thus
respondent had not followed the mandate of Sections 25-G and 25-H of the Act which was
obligatory on its part. The case of petitioner also remains that she had served respondent with due
diligence and had spotless service record as respondent/department had never called any
explanation or raised charge-sheet against her but even while retrenching petitioner from service,
no notice was given. The petitioner has also explained reason for not approaching the authorities
under Labour Act and thereafter before this Tribunal, as there existed no road between Chamba
town to Pangi Tehsil till 2011 and petitioner had moved before the Labour Officer raising demand
notice consequent upon which a failure report was submitted and as the Labour Commissioner did
not make reference for industrial dispute raised by petitioner, the petitioner had moved before the
Hon'ble High Court by filing CWP where direction was passed for making reference to the Labour
Court due to which delay had occurred and same was satisfactorily explained.
13. In so far as plea of abandonment raised by respondent is concerned, the same merits
rejection in view of the fact that respondent had failed to produce any record by which it could be
established that whenever petitioner absented from her duty as also reflected in mandays chart Ex.
RW1/B any notice or letter was ever issued. On this point respondent as RW1 has specifically
admitted that whenever petitioner abandoned the job, no notice had been issued. RW1 specifically
admitted that no departmental inquiry was initiated against petitioner even after the year 1998. No
reason whatsoever has been assigned for such any action or omission on the part of respondent in
not initiating any departmental proceedings or making correspondence calling upon the petitioner
to join service. This prima facie belies the stand taken by the respondent as abandonment has to be
proved like any other fact in issue. The petitioner, on the other hand, as PW1 in cross-examination
has specifically denied that she used to leave the job in between and attended the work
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intermittently rather she has claimed that intermit breaks had been deliberately given to her by the
respondent in the service record of petitioner so that petitioner did not complete 160 days of work
as required for Pangi Tehsil area and also for applicability of Section 25-B of the Act. As such, in
absence of any specific and reliable evidence led by respondent, it would be unsafe to hold that
respondent had established plea of abandonment.
14. A bare glance on the mandays chart Ex. RW1/B would reveal that petitioner had
worked for 62 days in the year 1993, 201.5 days in 1994, 149.5 days in 1995, 34 days in 1996 and
36 days in 1998 and thus a total of her service in 1993 to 1998 in 05 years she had worked for 482
days in her entire service period. Be it noticed that except the years 1993, 1995, 1996 and 1998
petitioner had worked for more than 160 days and as there is no reference from the Labour
Commissioner, Shimla on the point of artificial breaks, this court is to confine its findings only with
regard to alleged illegal termination. It is evident from mandays chart Ex. RW1/B that in the year
1998 the petitioner had merely worked for 36 days and thus immediately in preceding 12 calendar
months from the month of termination of petitioner had rendered service of 160 days so as to meet
requirement of law of having continuous service of one year and thus it was at all required from
respondent to have issued a notice envisaged under Section 25-F of the Act. As such, the
respondent is held to have violated the provisions of Section 25-F of the Act.
15. Ld. Counsel for petitioner has contended with vehemence that large number of workers
who were junior to petitioner had been appointed and these workers have been retained in service
and regularized. The grievance of petitioner remains that principle of 'Last come First go' was not
followed as the juniors were retained and services of petitioner despite being senior was terminated
without any valid reason. Ex. RW1/C is the year-wise mandays of daily waged workers who were
junior to the petitioner and had joined in the year 1997 or thereafter. All of these co-workers shown
in Ex. RW1/C the year-wise mandays details of workers of Division HPPWD Killar were certainly
junior to petitioner who were given sufficient work existing in those years more than 200 days in a
year whereas the petitioner had been not given muster roll for the whole month. Ex. RW1/C also
established that all the co-workers shown in this document have worked for more than 160 days in
most of the years although they were junior to petitioner. Evidently, there is no iota of evidence of
respondent establishing that petitioner was called upon to join for service at any time after 1998
even at the time when junior persons were re-engaged. That being so the respondent had certainly
violated the provisions of Section 25-G of the Act as the juniors workers mentioned in para no.10
of the affidavit were retained whereas petitioner was senior from these co-workers having joined
service in 1993 was terminated and even thereafter respondent omitted to afford opportunity to
petitioner for re-employment for work which also violates the provisions of Section 25-H of the
Act. Ld. counsel for petitioner has placed reliance upon judgment of Central Bank of India vs.
S. Satyam, 1996 (5) SCC 419 in which Hon'ble Apex Court has held that for the applicability of
Section 25-G and 25-H of the Act, there was no necessity of claimant/petitioner to have worked
for 240 days as in case of provisions of Section 25-F of the Act.
16. Ld. Dy. D.A. representing respondent has made futile attempt to justify engagement
junior worker and their retention in service in pursuance to Awards passed by Labour Court. On the
other hand, Ld. Counsel for petitioner relied upon Ex. PW1/C the order dated 27.8.2015 of Hon'ble
High Court of H.P. vide which the orders qua termination passed as against respondent and several
other were quashed. That being so the relief was granted in favour of the petitioner who was
directed to be reinstated with others. As such, even when petitioner is proved to have not worked
for more than 160 days in preceding 10 years which entitled him for regularization of his service
per government policy, yet respondent is not absolved from its accountability for complying the
provisions of Sections 25-G and 25-H of the Act and as such, it is held that respondent had violated
the provisions of Sections 25-G and 25-H of the Industrial Disputes Act.
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17. Ld. Counsel for petitioner has contended that after petitioner's termination in 1998, she
had remained unemployed and was not earning anything thereafter as such was entitled for full
back wages. Repudiating the arguments of Ld. Counsel of petitioner, Ld. Dy. D.A. for the State has
taken this court through cross-examination of the petitioner who has admitted that she had
cultivable land with her and also worked a private labourer. Thus, plea of having remained not
gainfully employed gets belied admission of petitioner in cross-examination in which she had
maintained that she had been earning from agricultural land as well as she has been working as
daily wager privately. Reliance has been placed on the judgment of Hon'ble Apex Court North
East Karnataka Road Transport Corporation vs. M. Nagangouda (2007) 10 SCC 765 in which
Division Bench comprising of Justice A.R. Lakshmanan and Justice Altamas Kabir had held that
'term gainfully employment would also include self employment wherefrom income is
generated. It was income either from employment in an establishment or from self
employment merely differentiates the sources from which income is generated, the end use
being the same'. Applying the ratio of judgment of 2007 (supra) to this case since the petitioner
was earning from her agricultural and manual pursuits, the same were sufficient to maintain her and
her family. It is thus held that petitioner was gainfully employed. Be it stated here that Hon'ble
Apex Court in Deepali Gundu Surwase's case has held that the Labour Court was not justified in
holding that merely because the respondent was receiving agriculture income, she cannot be treated
to be engaged in gainful employment. Since the petitioner had income from agriculture pursuits for
her livelihood it cannot be stated that petitioner was not gainfully employed and thus would not be
entitled full back wages. In view of the forgoing discussion, it is held that the relationship of
workman and employer existed between petitioner and respondent and that petitioner was illegally
retrenched without compliance of Sections 25-F, 25-G and Section 25-H of the Act although
remained gainfully employed after her retrenchment. Thus, applying the ratio of judgment of
Hon'ble Apex Court (2007 supra), it may not be erroneous to hold that petitioner was gainfully
employed and thus would be not entitled for back wages for the period she was out of job on being
terminated by the respondent.
18. Lastly, Ld. Dy. D.A. for State has contended with vehemence that there is inordinate
and explained delay which disentitles petitioner relief claimed for by him. On the other hand, Ld.
Counsel for the petitioner has relied upon the judgment of Hon'ble Apex Court titled Raghubir
Singh vs. General Manager, Haryana Roadways, Hissar reported in 2014 Lab IC 4266 (SC)
and the relevant paras of the judgment are produced below for reference:
“12. Therefore, in our considered view, the observations made by this Court in the
Rajasthan State Agriculture Marketing Board case (supra) upon which the Learned
Additional Advocate General for the State of Haryana has placed reliance cannot be applied
to the fact situation of the case on hand, for the reason that the Labour Court has
erroneously rejected the reference without judiciously considering all the relevant factors of
the case particularly the points of dispute referred to it and answered the 2nd issue regarding
the reference being barred by limitation but not on the merits of the case. The said decision
has no application to the fact situation and also for the reason the catena of decisions of this
Court referred to supra, wherein this Court has categorically held that the provisions of
Limitation Act under Article 137 has no application to make reference by the appropriate
government to the Labour Court/Industrial Tribunal for adjudication of existing industrial
dispute between workmen and the employer.
13. In the case on hand, no doubt there is a delay in raising the dispute by the
appellant; the Labour Court nevertheless has the power to mould the relief
accordingly. At the time of adjudication, if the dispute referred to the Labour
Court is not adjudicated by it, it does not mean that the dispute ceases to exist.
The appropriate government in exercise of its statutory power under Section 10(1)(c)
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of the Act can refer the industrial dispute, between the parties, at any time, to either the
jurisdictional Labour Court/Industrial Tribunal as interpreted by this Court in the Avon
Services case referred to supra. Therefore, the State Government has rightly exercised
its power under Section 10(1)(c) of the Act and referred the points of dispute to the
Labour Court as the same are in accordance with the law laid down by this Court in
Avon Services & Sapan Kumar Pandit cases referred to supra.
14. Further, the workman cannot be denied to seek relief only on the ground of delay
in raising the dispute as held in the case of S.M. Nilajkar & Ors. v. Telecom
District Manager, Karnataka[4] it was held by this Court as follows—
“17. It was submitted on behalf of the respondent that on account of delay in raising
the dispute by the appellants the High Court was justified in denying relief to the
appellants. We cannot agree...... in Ratan Chandra Sammanta and Ors. v. Union of
India and Ors. (supra)1993 AIR SCW 2214, it was held that a casual labourer
retrenched by the employer deprives herself of remedy available in law by delay itself,
lapse of time results in losing the remedy and the right as well. The delay would
certainly be fatal if it has resulted in material evidence relevant to adjudication being
lost and rendered not available. However, we do not think that the delay in the case at
hand has been so culpable as to disentitle the appellants for any relief.....” (Emphasis
laid by the Court). In view of the legal principles laid down by this Court in the above
judgment, the reference of the industrial dispute made in the case on hand by the State
Government to the Labour Court to adjudicate the existing industrial dispute between
the parties was made within a reasonable time, considering the circumstances in which
the workman was placed, firstly, as there was a criminal case pending against her and
secondly, the respondent had assured the workman that she would be reinstated after
her acquittal from the criminal case. Moreover, it is reasonable to adjudicate the
industrial dispute in spite of the delay in raising and referring the matter, since there is
no mention of any loss or unavailability of material evidence due to the delay. Thus,
we do not consider the delay in raising the industrial dispute and referring the same to
the Labour Court for adjudication as gravely erroneous and it does not debar the
workman from claiming rightful relief from her employer.
15. In the case of Ajaib Singh v. The Sirhind Co-operative Marketing-cum- Processing
Service Society Limited & Anr.[5] this Court has opined that relief cannot be denied to
the workman merely on the ground of delay, stating that:—
“10. It follows, therefore, that the provisions of Article 137 of the Schedule to
Limitation Act, 1963 are not applicable to the proceedings under the act and that the
relief under it cannot be denied to the workman merely on the ground of delay. The
plea of delay if raised by the employer is required to be proved as a matter of fact by
showing the real prejudice and not as a merely hypothetical defence. No reference to
the labour court can be generally questioned on the ground of delay alone. Even in a
case where the delay in shown to be existing, the tribunal, labour court or board,
dealing with the case can appropriately mould the relief by declining to grant back
wages to the workman till the date she raised the demand regarding her illegal
retrenchment/ termination or dismissal. The Court may also in appropriate cases direct
the payment of part of the back wages instead of full back wages.....” (Emphasis laid
by the Court).
16. Hence, we are of the opinion, having regard to the fact and circumstances of the case
that there is no delay or latches on the part of the workman from the date of her
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acquittal in the criminal case. Thereafter, upon failure of the respondent in adhering to
the assurance given to the workman that she would be reinstated after her acquittal
from the criminal case, the workman approached the conciliation officer and the State
Government to make a reference to the Labour Court for adjudication of the dispute
with regard to the order of dismissal passed by the respondent. Keeping in mind the
date of acquittal of the appellant and the date on which she approached the conciliation
officer by raising the dispute, since the respondent had not adhered to its assurance, the
State Government had rightly referred the dispute for its adjudication. Therefore it
cannot be said that there was a delay on the part of the appellant in raising the dispute
and getting it referred to the Labour Court by the State Government.
17. Further, the Labour Court on an erroneous assumption of law framed the
additional issue regarding the limitation in raising the dispute and its reference
by the State Government to the Labour Court. Thus, the Labour Court has ignored
the legal principles laid down by this Court in the cases referred to supra. The award
passed by the Labour Court was accepted erroneously by both the learned single Judge
and the Division Bench of the High Court by dismissing the Civil Writ Petition & the
Letters Patent Appeal without examining the case in its proper perspective, keeping in
view the power of the State Government under Section 10(1)(c) and the object and
intendment of the Act. Not adjudicating the existing industrial dispute on merits
between the parties referred to it may lead to disruption of industrial peace and
harmony, which is the foremost important aspect in Industrial Jurisprudence as the
same would affect the public interest at large.
19. Ld. Dy. D.A. representing respondent department has also contended with vehemence
that claim petition is barred by limitation on account of delay and laches. It has been pointed that
termination of petitioner in this case took place on 1998 and the industrial dispute was raised after
several years of retrenchment. Repudiating the argument by Ld. Counsel, Ld. AR for the petitioner
has placed reliance upon judgment reported in 2007 LHLJ 903 Hon'ble High Court of H.P.
(Bhatag Ram's case) in which it has been held that delay in raising dispute may be considered by
court at the time of granting final relief however in various other judgments even longer delay has
been condoned. In Divisional Manager, HPFC & another vs. Garibu Ram, Latest HLJ 2007
(HP) 1160, delay of more than 10 years was condoned besides Hon'ble High Court has held that
principle of Limitation Act is not applicable to the industrial dispute. Similar view was taken by
Hon'ble Apex Court in Ajayab Singh vs. Sirhind Co-operative Marketing-cum-Processing
Society Limited and Another (1999) 6 SCC 82 in which it has been held that the principle of
Limitation Act, 1963 did not apply to the proceeding under the Industrial Disputes Act.
20. Relying upon the aforestated judgment, it has been contended that claim of petitioner
cannot be defeated on the point of delay and laches. Repudiating arguments advanced by Ld.
Counsel for petitioner, Ld. Dy. D.A. has placed reliance upon the judgment of Hon'ble Apex Court
titled as Assistant Engineer, Rajasthan State Agriculture Marketing Board, Sub-Division
Kota and Mohan Lal [2013 (139) FLR 125], the relevant para of the judgment are produced
below for reference:
Industrial Disputes Act, 1947-Sections 25-F and 10- Limitation Act, 1963- Section 5-
Industrial dispute-Termination of service-Finding of Labour Court that workman had
completed 240 days in calendar year and her termination was in violation of section 25-F of
the I.D.Act- Workman worked from 1-11-1984 to 17-2-1986 in all 286 days during
employment. her services terminated on 18-2-1986. Industrial dispute raised after 6 years of
termination. Admitted delay of 6 years not kept in view by the Labour Court- Judicial
discretion exercised by the Labour Court flawed and unsustainable. Reinstatement of the
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workman not the appropriate relief. In lieu of reinstatement compensation of Rs.one lac
directed to be paid to the workman by the appellant employer within six weeks failing
which interest @ 9% p.a. will be payable.
[Paras 21 and 22]
Limitation Act, 1963. Section 5- Industrial Disputes Act, 1947- Section 25-F- Termination
of service- Industrial dispute raised after six years- Limitation Act not applicable to
reference made under the I.D. Act-Delay in raising industrial disputes definitely an
important circumstances which the Labour Court must keep in view before granting
relief.
21. Repudiating the arguments by Ld. Dy. D.A. for the State, Ld. Counsel for
claimant/petitioner has relied upon the judgment of Hon'ble Apex Court in case titled as Tapash
Kumar Paul vs. BSNL & another reported in AIR 2015 SC 357 wherein Hon'ble Court held that
a Court may pass an order of reinstatement by awarding compensation but the same has to be based
on justifiable grounds. In this judgment, it was held that compensation can be granted in a situation
where the industry is closed or that employees has superannuated or going to retire shortly and no
period is left to her credit or where workman has been rendered in capacitated to discharge duties
cannot be reinstated and/or fourthly when she has lost confidence of the management to discharge
duties. It was observed that there may be appropriate cases on facts which may justify substituting
an order of reinstatement by award of compensation but that has to be supported by some legal
and justifiable reasons indicating why the reinstatement should be followed to be substituted
by award of compensation. Ld. Counsel for the petitioner with the aid of above-said judgment had
argued that there are only four situations when a worker may be awarded compensation instead of
reinstatement but the judgment has certainly not been correctly appreciated by Ld. Counsel as this
judgment postulates probable four situations which are illustrate in nature where compensation may
be awarded instead of reinstatement but that does not mean that except the four grounds, no other
ground would be appropriate for awarding compensation. In the case in hand before this court, it
has come that petitioner had abandoned the job who did not report for duty for several years and
later gave notice requesting for joining of duties but the conditions in para No. 5 of judgment (2015
supra) even if not met requirement, cannot be a ground to reinstate the petitioner and it is only
compensation which would be appropriate relief. Ld. Counsel for the petitioner has relied upon the
judgment of Hon'be Apex Court titled as Deepali Gundu Surwase vs. Kranti Junior Adhyapak
Mahavidyalaya (D.Ed.) and Ors. reported in AIR 2014 SC (Supp) 121, Raghubir Singh vs.
General Manager, Haryana Roadways, Hissar reported in 2014(3) Apex Court Judgments 652.
I have gone through these judgments and of view that they don't come to rescue the petitioner on
point of reinstatement instead of compensation. Ld. Dy. D.A. for State on the other hand has relied
upon the judgment of Hon'ble Apex Court in Vice Chancellor, Lucknow University, Lucknow,
Uttar Pradesh v. Akhilesh Kumar Khare & another reported in AIR 2015 SC 3473. It has been
contended that engagement of claimant/petitioner in this case was not through regular mode of
recruitment and applying the ratio of this judgment AIR 2015 SC supra, claim of petitioner for
reinstatement can be negated and thus compensation would be sufficient for redressal of grievance
of the claimant/petitioner. Similarly, in 2016 (1) Him. L.R. 502 titled as State of Himachal
Pradesh and another vs. Chaman Singh relied by Ld. AR for petitioner interpretation of Section
137 of Limitation Act was involved which provides that Article 137 of Limitation Act did not apply
to industrial disputes. In 2014 (3) Apex Court Judgment 652 (SC) similar view was reiterated
which clearly mandates that claimant/petitioner cannot be denied relief sought for merely on the
ground of delay and laches. That being so, the law remains as it was that ground of delay and
laches, claimant/petitioner cannot be denied relief rather the court has to consider various aspects
before moulding relief and the case in hand it would not be erroneous to mention here that the
claimant/petitioner can be reasonably indemnified by ordering compensation and not by
reinstatement. In so far as judgment of AIR 2015 SC 1373 titled as Mackinon Machenize &
Company Ltd. vs. Mackinon Employees Union is concerned, the Hon'ble Apex Court has held
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on closure of unit of company principle of 'Last come First go' was not followed which violated
Section 25-G of Industrial Disputes Act and retrenchment was held illegal entitling petitioner for
retrenchment compensation. Since the facts of case of Mackinon Machenize's case are different
from case in hand as in former closure of unit of company was involved whereas in case in hand
before this court, there is no closure of company rather it is the department of HPPWD which had
engaged petitioner without following of the procedure although subject to funds and availability of
work. As such, when there is no closure of any unit by respondent which the petitioner was
engaged, judgment of Mackinon Machenize cannot be made applicable.
22. After hearing the rival contentions of the parties and case law relied by them, it can be
safely concluded that delay in raising industrial dispute is certainly important aspect/circumstance
which court has to keep in mind while exercising discretion. In para Nos. 20 and 21 of the
judgment as referred to in this case reported in 2013 (136) FLR 893 (SC) titled as Assistant
Engineer Rajasthan Development Corporation and another vs. Geetam Singh provides that
before exercising its judicial discretion, the Labour Court or Tribunal has to keep in mind all
relevant factors including the mode and manner of appointment, nature of employment, length of
service, the ground on which termination has been set aside and delay in raising industrial dispute
before grant of relief. It was observed by the Hon'ble Apex Court in judgment (2013 supra) before
that workman had worked for 286 days and had raised industrial dispute in 1992 whereas her
services have been terminated in 1986 and she raised industrial dispute after six years. The Hon'ble
Apex Court has held that though compensation awarded by Single Judge of the Hon'ble High Court
was too low and liable to be enhanced by the Division Bench but surely reinstatement of the
workman in the facts and circumstances is not the appropriate relief and thus Hon'ble Apex
Court awarded a lump-sum of Rs.1 lakh along-with interest @ 9% per annum if the respondent
failed to make payment of compensation within six weeks from the date of judgment. In the case in
hand before this court factors which have weighed are that the petitioner in all remained engaged
for about 05 years and actually worked for 482 days as per mandays chart on record and that the
services of petitioner were disengaged in the year 1998 who worked as non skilled worker and had
raised industrial dispute by issuance of demand notice after about fourteen years i.e. demand
notice was given on 18-1-2012. Taking into consideration factors mentioned above in pursuance to
judgments of Hon'ble Apex Court referred to above, petitioner would not be entitled either for
reinstatement or for back wages but a lump-sum compensation would be appropriate relief in view
of judgment 2013 (139) FLR 25 (SC). The judgments relied upon by Ld. Counsel for petitioner on
the matter of delay and laches is more or less settled law that claim of the petitioner could not be
solely declined on the ground of delay and laches. Similarly, judgment of Hon'ble Apex Court in
2014 titled as Raghubir Singh's case also does not come to the rescue of the petitioner as in this
judgment also the Hon'ble Apex Court has reiterated the mandate as given by the Hon'ble Apex
Court in previous judgment in the year 2013 i.e. Assistant Engineer, Rajasthan State
Agriculture Marketing Board, Sub-Division Kota and Mohan Lal's case. I have gone through
these judgments which are not attracted in this present case as this court not declining relief to the
petitioner on the ground of limitation rather on the basis of guidelines of Hon'ble Apex Court laid
down in judgment of 2013 as referred to above. Ld. Dy. D.A. representing State/respondents has
relied upon the judgment of Hon’ble Apex Court reported in AIR 2016 SC 2984 titled as
Prabhakar v. Joint Director Sericulture Department and another. I have gone through the
judgment which deals reference under Section 10 of the Industrial Disputes Act in which it has
been held that Hon'ble High Court can intervene in writ jurisdiction under Article 226 when
reference has been challenged on the ground of inordinate unexplained delay. Since the reference
made by the Government in this case is not in challenge before this Court, the above said judgment
would not be attracted in the facts and circumstances of the case. Moreso in view of observation
qua facts made in judgment (2016) supra, claimant/petitioner was found to be an educated person
who was working as Clerk whereas in case before this Court, the petitioner is an illiterate unskilled
worker. For the above-said reasons, plea of delay and laches would not eclipse claim of petitioner.
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23. In view of foregoing discussion, a lump-sum compensation of Rs. 60,000/- (Rupees
sixty thousand only) would be an appropriate relief to which the petitioner is entitled in the facts
and circumstances of the case as stated above. It is further made clear that amount of compensation
shall be paid within four months from the date of receipt of Award failing which the petitioner
would be entitled for interest @ 9% per annum from the date of Award till its realization. Issues
No. 1 to 3 are answered accordingly.
Issue No. 4
24. On the plea of non-maintainability of the claim petition under Section 10 of the
Industrial Disputes Act, Ld. Dy. D.A. representing respondent department has failed to allege in
reply in what manner petition is not maintainable. Thus, vague plea merits rejection outright.
Otherwise also, from pleadings and evidence on record, no inference of claim petition being not
maintainable could be raised against claimant/petitioner. This issue is decided in favour of
petitioner and against the respondent.
RELIEF
25. As sequel to my findings on foregoing issues, the respondent is hereby directed to pay
the compensation of Rs. 60,000/- (Rupees sixty thousand only) to the petitioner in lieu of the
reinstatement, back wages, seniority and past service benefits. Amount of compensation so
awarded will be paid by the respondent to the petitioner within four months from the date of receipt
of Award failing which the respondent shall be liable to pay the interest @ 9% per annum on the
said amount from the date of award till the date of its realization. In the peculiar circumstances of
the case, the parties are left to bear their own costs.
26. The reference is answered in the aforesaid terms.
27. A copy of this Award be sent to the appropriate Government for publication in the
official gazette.
28. File, after due completion be consigned to the Record Room.
Announced in the open Court today this 4th day of October, 2017.
Sd/-
(K. K. Sharma)
Presiding Judge,
Labour Court-cum-Industrial Tribunal,
Kangra at Dharamshala, H.P.
__________
IN THE COURT OF SHRI K. K. SHARMA, PRESIDING JUDGE, LABOUR COURT-
CUM-INDUSTRIAL TRIBUNAL, KANGRA AT DHARAMSHALA (HP)
Ref. No.
: 511/2015
Date of Institution : 09-11-2015
Date of Decision
: 04-10-2017
Ms. Bindro Kumari d/o Shri Bheem Chand, r/o Village Kawas, P.O. Killar, Tehsil Pangi,
District Chamba, H.P.
…Petitioner.
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Versus
The Executive Engineer, Killar Division, I.&P.H./H.P.P.W.D., Killar (Pangi), District
Chamba, H.P.
...Respondent.
Reference under Section 10 (1) of the Industrial Disputes Act, 1947
For the Petitioner : Sh. Rajeev Dharmani, Adv.
For the Respondent : Sh. Sanjeev Singh Rana, Dy. D.A.
AWARD
The reference given below has been received from the appropriate Government for
adjudication:
“Whether the industrial dispute raised by the worker Ms. Bindro Kumari d/o
Shri Bheem Chand, r/o Village Kawas, P.O. Killar, Tehsil Pangi, District Chamba,
H.P. before the Executive Engineer, Killar Division, I. & P.H./H.P.P.W.D., Killar
(Pangi), District Chamba, H.P. vide demand notice dated 21-12-2011 regarding her
alleged illegal termination of services during June, 1996 suffers from delay and
latches? If not, Whether termination of services of Ms. Bindro Kumari d/o Shri Bheem
Chand, r/o Village Kawas, P.O. Killar, Tehsil Pangi, District Chamba, H.P. by the
Executive Engineer, Killar Division, I. & P.H./H.P.P.W.D., Killar (Pangi), District
Chamba, H.P., during June, 1996, without complying the provisions of the Industrial
Disputes Act, 1947, is legal and justified? If not, what amount of back wages,
seniority, past service benefits and compensation the above aggrieved workman is
entitled to from the above employer?”
2. On receipt of reference from appropriate government, notices were issued to the parties
in pursuance to which claimant/petitioner has filed statement of claim.
3. Brief facts as enumerated in the present claim petition by the petitioner above named
revealed that she had been initially engaged as daily wage beldar on muster roll basis in the year
1990 who continuously worked till 1996 with the respondent. Averments made in the petition
further revealed that petitioner had worked for 160 days in each calendar year as per the criteria
prescribed for tribal area of Pangi Tehsil, District Chamba and became eligible for continuous
service envisaged under statutory provisions of Section 25-B of the Industrial Disputes Act, 1947
(hereinafter referred to as 'the Act' for brevity). Averments made in the petition revealed that the
services of petitioner had been interrupted by way of intermittent/artificial breaks given by the
respondent/department deliberately and as such breaks are required to be counted as 'continuous
services' for the purposes of calculation of 160 days for the applicability of Section 25-B of the Act.
The grievance of petitioner remains that respondent/department had terminated/disengaged
petitioner from daily wage service orally without issuing one month's notice in writing stipulating
therein reason for retrenchment besides no retrenchment compensation was paid to petitioner when
respondent had been illegally terminated. It is also alleged that respondent had not followed the
provisions of Section 25-F of the Act while disengaging petitioner from service. It is stated that
petitioner is very poor who has no source of income besides after termination of the services of
petitioner, petitioner had approached the respondent time and again but of no avail. The grievance
of petitioner further remains that when the services of petitioner had been terminated,
respondent/department had re-engaged number of new workman from time to time and while doing
so, respondent had not followed the principle of 'Last come, First go' envisaged under Section 25-G
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of the Act. It is further alleged that respondent/department had continuously retained junior to
petitioner who are still in service namely Suraj Ram who appointed in 1997, Chunku Ram in 2000,
Budhi Ram in 2003 and Dev Raj in 2007. The claimant/petitioner claimed that she had spotless
service record who never been charge-sheeted for any act of indiscipline or negligence or her
conduct and even at the time of verbal termination, no charge-sheet had been served upon her and
the at the same time, no opportunity of hearing had been afforded to him. The petitioner also
alleges that she has remained unemployed ever since her illegal termination from year of 1996 till
the date of institution of present claim petition who had been nowhere gainfully employed and was
thus entitled for full back wages. Accordingly alleging respondent to have committed violation of
statutory provision of Section 25-F, Section 25-G and Section 25-H of the Industrial Disputes Act,
1947 and thus petitioner prays for setting aside oral order of termination/retrenchment of
respondent in the year 1996. She further prayed for reinstatement in service w.e.f. year 1996 along-
with back wages, seniority including continuity in service as petitioner as she had remained
unemployed since the date of her illegal termination. The petitioner has also prayed that period of
intermittent/fictional breaks deliberately given time and again during entire service of petitioner
between 1990 to 1996 be counted 160 days continuous service and regularization of the services of
petitioner w.e.f. 1-1-1999 under 10 years regularization policy and to any other relief petitioner is
entitled.
4. The respondent contested claim petition, filed reply inter-alia taken preliminary
objections of maintainability, claim petition being bad on account of delay and laches. On merits
denied that petitioner had worked for more than 160 days in each calendar year rather clarified by
stating that petitioner was engaged as daily waged beldar in 1990 who remained engaged till 1996
but had worked intermittently as petitioner used to come and attend the work at her own sweet will
and convenience. Relying upon the mandays chart, it has been categorically pleaded by the
respondent that petitioner had not completed 160 days in each calendar year as required for tribal
area of Pangi Tehsil. The allegations of fictional breaks given by respondent to the petitioner have
been specifically denied. In so far as engagement of persons junior to petitioner mentioned in para
No. 10 of the claim petition were appointed as per order of Labour Court and no other juniors to the
petitioner had been retained in service by the respondent. On the plea of termination of service of
petitioner, respondent specifically alleges that petitioner had left the job at her own will therefore
serving of notice or pay in lieu thereof was not required. Reiterating its stand respondent has
maintained that petitioner had left the work of her own sweet will and the persons mentioned in
para No.10 are stated to have engaged as per direction of the Labour Court-cum-Industrial Tribunal
Dharamshala and respondent had not violated the principle of 'Last come, First go'. It is also
contended that if petitioner had been terminated in 1996 she would have definitely raised industrial
dispute immediately and that after thirteen years petitioner is stated to be agitating the matter which
is bad on account of delay and laches. It is also contended that since the services of petitioner had
not been terminated by the respondent, question of issuance of notice or wages in lieu thereof did
not arise and at the same time, there was no necessity for charge-sheet or issuing any notice of
petitioner after her termination. It is contended that petitioner was agriculturist and gainfully
employed and was thus not entitled for back wages.
5. The petitioner filed rejoinder, reiterated her stand as maintained in the claim petition.
Further asserted that provisions of Limitation Act did not eclipse the claim of petitioner in totality
besides allegation of violation of principle of 'Last come First go' was specifically denied.
6. In order to prove her case, petitioner had examined herself as PW1 tendered/proved her
affidavit Ex. PW1/A under Order 18 Rule 4 CPC, Ex. PW1/B copy of demand notice, Ex. PW1/C
copy of order dated 27-8-2015 and closed evidence. On the other hand, repudiating the evidence
led by the petitioner, respondent examined RW1 Shri D.R. Chauhan, the then Executive Engineer,
HPPWD Division Killar as RW1 tendered/proved mandays chart of petitioner Ex. RW1/B, Ex.
RW1/C copy of mandays chart of co-workers and closed the evidence.
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7. I have heard the Ld. Counsel of petitioner and Ld. Dy. D.A. representing respondent,
gone through records of the case carefully relevant for disposed of this case.
8. From the contentions raised, following issues were framed on 29-04-2016 for
determination:
1. Whether the industrial dispute raised by petitioner vide demand notice dated
21-12-2011 qua her termination of service during June, 1996 by respondent suffers
from the vice of delay and laches as alleged? If so, its effect?
...OPP.
2. Whether termination of the services of the petitioner by the respondent during June,
1996 is/was illegal and unjustified as alleged?
...OPP.
3. If issue No. 2 is proved in affirmative, to what service benefits the petitioner is entitled
to?
...OPP.
4. Whether the claim petition is not maintainable in the present form as alleged? ...OPR.
Relief.
9. For the reasons detailed hereunder, my findings on the above issues are as follows:—
Issue No. 1 : Discussed
Issue No. 2 : Yes
Issue No. 3 : Discussed
Issue No. 4 : No
Relief. : Petition is partly allowed awarding compensation of Rs.70,000/- per operative
part of award.
REASONS FOR FINDINGS
Issues No. 1 to 3
10. All these issues have been taken up together for discussion being interconnected which
can be disposed of simultaneously without repetition of evidence.
11. Relationship of petitioner having been engaged as daily waged beldar by respondent on
muster roll basis in the year 1990 continuously worked till June, 1996 with the respondent is not in
dispute. Admittedly, petitioner was engaged without any written order or settlement of terms and
conditions by the respondent. It is equally not in dispute that no written order was passed while
terminating service of the petitioner as claim of respondent remains that it had not retrenched
petitioner from service who had abandoned the job of her own and used to work intermittently as
per her own wish and convenience. Admittedly, the reference of appropriate govt. does not relate to
plea of fictional breaks but only with regard to petitioner's termination from service. In the
backdrop of foregoing admitted facts on record, claim of petitioner requires to be adjudicated with
a view to determine if petitioner is entitled for relief of reinstatement and back wages along-with
seniority and past service benefits and compensation as claimed by him.
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12. Stepping into witness box as PW1 has sworn in affidavit Ex. PW1/A reiterating and
reaffirming her pleadings as stipulated in claim petition. In her affidavit she has claimed to have
worked with the respondent/department for more than 160 days in Pangi Sub-Division Chamba
District and remained engaged from 1990 to June, 1996. She has also stated on oath that no notice
under Section 25-F of the Act was given by the respondent before terminating her service and at the
same time no compensation in lieu thereof notice period was paid to her and thus her termination
was illegal and void entitling petitioner benefit of reinstatement of service with full back wages and
all the other consequential service benefits. The petitioner has further alleged on oath that
respondent/department after terminating her services in the month of June, 1996 by oral order had
engaged several co-workers who were junior to petitioner were retained in service. Not only this,
the persons who were junior to petitioner are stated to have been regularized in service and thus
respondent had not followed the mandate of Sections 25-G and 25-H of the Act which was
obligatory on its part. The case of petitioner also remains that she had served respondent with due
diligence and had spotless service record as respondent/department had never called any
explanation or raised charge-sheet against her but even while retrenching petitioner from service,
no notice was given. The petitioner has also explained reason for not approaching the authorities
under Labour Act and thereafter before this Tribunal, as there existed no road between Chamba
town to Pangi Tehsil till 2011 and petitioner had moved before the Labour Officer raising demand
notice consequent upon which a failure report was submitted and as the Labour Commissioner did
not make reference for industrial dispute raised by petitioner, the petitioner had moved before the
Hon'ble High Court by filing CWP where direction was passed for making reference to the Labour
Court due to which delay had occurred and same was satisfactorily explained.
13. In so far as plea of abandonment raised by respondent is concerned, the same merits
rejection in view of the fact that respondent had failed to produce any record by which it could be
established that whenever petitioner absented from her duty as also reflected in mandays chart Ex.
RW1/B any notice or letter was ever issued. On this point respondent as RW1 has specifically
admitted that whenever petitioner abandoned the job, no notice had been issued. RW1 specifically
admitted that no departmental inquiry was initiated against petitioner even after the year 1996. No
reason whatsoever has been assigned for such any action or omission on the part of respondent in
not initiating any departmental proceedings or making correspondence calling upon the petitioner
to join service. This prima facie belies the stand taken by the respondent as abandonment has to be
proved like any other fact in issue. The petitioner, on the other hand, as PW1 in cross-examination
has specifically denied that she used to leave the job in between and attended the work
intermittently rather she has claimed that intermit breaks had been deliberately given to her by the
respondent in the service record of petitioner so that petitioner did not complete 160 days of work
as required for Pangi Tehsil area and also for applicability of Section 25-B of the Act. As such, in
absence of any specific and reliable evidence led by respondent, it would be unsafe to hold that
respondent had established plea of abandonment.
14. A bare glance on the mandays chart Ex. RW1/B would reveal that petitioner had
worked for 129 days in the year 1990, 182 days in 1991, 167 days in 1992, 68 days in 1993, 38
days in 1994, 133 days in 1995 and 58 days in 1996 and thus a total of her service in 1990 to 1996
in 07 years she had worked for 775 days in her entire service period. Be it noticed that except the
years 1990 and 1993 to 1996 petitioner had worked for more than 160 days and as there is no
reference from the Labour Commissioner, Shimla on the point of artificial breaks, this court is to
confine its findings only with regard to alleged illegal termination. It is evident from mandays chart
Ex. RW1/B that in the year 1996 the petitioner had merely worked for 58 days and thus
immediately in preceding 12 calendar months from the month of termination of petitioner had
rendered service of 160 days so as to meet requirement of law of having continuous service of one
year and thus it was at all required from respondent to have issued a notice envisaged under Section
25-F of the Act. As such, the respondent is held to have violated the provisions of Section 25-F of
the Act.
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15. Ld. Counsel for petitioner has contended with vehemence that large number of workers
who were junior to petitioner had been appointed and these workers have been retained in service
and regularized. The grievance of petitioner remains that principle of 'Last come First go' was not
followed as the juniors were retained and services of petitioner despite being senior was terminated
without any valid reason. Ex. RW1/C is the year-wise mandays of daily waged workers who were
junior to the petitioner and had joined in the year 1997 or thereafter. All of these co-workers shown
in Ex. RW1/C the year-wise mandays details of workers of Division HPPWD Killar were certainly
junior to petitioner who were given sufficient work existing in those years more than 200 days in a
year whereas the petitioner had been not given muster roll for the whole month. Ex. RW1/C also
established that all the co-workers shown in this document have worked for more than 160 days in
most of the years although they were junior to petitioner. Evidently, there is no iota of evidence of
respondent establishing that petitioner was called upon to join for service at any time after 1998
even at the time when junior persons were reengaged. That being so the respondent had certainly
violated the provisions of Section 25-G of the Act as the juniors workers mentioned in para No.10
of the affidavit were retained whereas petitioner was senior from these co-workers having joined
service in 1990 was terminated and even thereafter respondent omitted to afford opportunity to
petitioner for re-employment for work which also violates the provisions of Section 25-H of the
Act. Ld. Counsel for petitioner has placed reliance upon judgment of Central Bank of India vs. S.
Satyam, 1996 (5) SCC 419 in which Hon'ble Apex Court has held that for the applicability of
Section 25-G and 25-H of the Act, there was no necessity of claimant/petitioner to have worked
for 240 days as in case of provisions of Section 25-F of the Act.
16. Ld. Dy. D.A. representing respondent has made futile attempt to justify engagement
junior worker and their retention in service in pursuance to Awards passed by Labour Court. On the
other hand, Ld. Counsel for petitioner relied upon Ex. PW1/C the order dated 27.8.2015 of Hon'ble
High Court of H.P. vide which the orders qua termination passed as against respondent and several
other were quashed. That being so the relief was granted in favour of the petitioner who was
directed to be reinstated with others. As such, even when petitioner is proved to have not worked
for more than 160 days in preceding 10 years which entitled him for regularization of his service
per government policy, yet respondent is not absolved from its accountability for complying the
provisions of Sections 25-G and 25-H of the Act and as such, it is held that respondent had violated
the provisions of Sections 25-G and 25-H of the Industrial Disputes Act.
17. Ld. Counsel for petitioner has contended that after petitioner's termination in 1998, she
had remained unemployed and was not earning anything thereafter as such was entitled for full
back wages. Repudiating the arguments of Ld. Counsel of petitioner, Ld. Dy. D.A. for the State has
taken this court through cross-examination of the petitioner who has admitted that she had
cultivable land with her and also worked a private labourer. Thus, plea of having remained not
gainfully employed gets belied admission of petitioner in cross-examination in which she had
maintained that she had been earning from agricultural land as well as she has been working as
daily wager privately. Reliance has been placed on the judgment of Hon'ble Apex Court North
East Karnataka Road Transport Corporation vs. M. Nagangouda (2007) 10 SCC 765 in which
Division Bench comprising of Justice A.R. Lakshmanan and Justice Altamas Kabir had held that
'term gainfully employment would also include self employment wherefrom income is
generated. It was income either from employment in an establishment or from self
employment merely differentiates the sources from which income is generated, the end use
being the same'. Applying the ratio of judgment of 2007 (supra) to this case since the petitioner
was earning from her agricultural and manual pursuits, the same were sufficient to maintain her and
her family. It is thus held that petitioner was gainfully employed. Be it stated here that Hon'ble
Apex Court in Deepali Gundu Surwase's case has held that the Labour Court was not justified in
holding that merely because the respondent was receiving agriculture income, she cannot be treated
to be engaged in gainful employment. Since the petitioner had income from agriculture pursuits for
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her livelihood it cannot be stated that petitioner was not gainfully employed and thus would not be
entitled full back wages. In view of the forgoing discussion, it is held that the relationship of
workman and employer existed between petitioner and respondent and that petitioner was illegally
retrenched without compliance of Sections 25-F, 25-G and Section 25-H of the Act although
remained gainfully employed after her retrenchment. Thus, applying the ratio of judgment of
Hon'ble Apex Court (2007 supra), it may not be erroneous to hold that petitioner was gainfully
employed and thus would be not entitled for back wages for the period she was out of job on being
terminated by the respondent.
18. Lastly, Ld. Dy. D.A. for State has contended with vehemence that there is inordinate
and explained delay which disentitles petitioner relief claimed for by him. On the other hand, Ld.
Counsel for the petitioner has relied upon the judgment of Hon'ble Apex Court titled Raghubir
Singh vs. General Manager, Haryana Roadways, Hissar reported in 2014 Lab IC 4266 (SC)
and the relevant paras of the judgment are produced below for reference:
“12. Therefore, in our considered view, the observations made by this Court in the
Rajasthan State Agriculture Marketing Board case (supra) upon which the Learned
Additional Advocate General for the State of Haryana has placed reliance cannot be
applied to the fact situation of the case on hand, for the reason that the Labour Court
has erroneously rejected the reference without judiciously considering all the relevant
factors of the case particularly the points of dispute referred to it and answered the 2nd
issue regarding the reference being barred by limitation but not on the merits of the
case. The said decision has no application to the fact situation and also for the reason
the catena of decisions of this Court referred to supra, wherein this Court has
categorically held that the provisions of Limitation Act under Article 137 has no
application to make reference by the appropriate government to the Labour
Court/Industrial Tribunal for adjudication of existing industrial dispute between
workmen and the employer.
13. In the case on hand, no doubt there is a delay in raising the dispute by the
appellant; the Labour Court nevertheless has the power to mould the relief
accordingly. At the time of adjudication, if the dispute referred to the Labour
Court is not adjudicated by it, it does not mean that the dispute ceases to exist.
The appropriate government in exercise of its statutory power under Section 10(1)(c)
of the Act can refer the industrial dispute, between the parties, at any time, to either the
jurisdictional Labour Court/Industrial Tribunal as interpreted by this Court in the Avon
Services case referred to supra. Therefore, the State Government has rightly exercised
its power under Section 10(1)(c) of the Act and referred the points of dispute to the
Labour Court as the same are in accordance with the law laid down by this Court in
Avon Services & Sapan Kumar Pandit cases referred to supra.
14. Further, the workman cannot be denied to seek relief only on the ground of delay
in raising the dispute as held in the case of S.M. Nilajkar & Ors. v. Telecom
District Manager, Karnataka[4] it was held by this Court as follows—
“17. It was submitted on behalf of the respondent that on account of delay in raising
the dispute by the appellants the High Court was justified in denying relief to the
appellants. We cannot agree...... in Ratan Chandra Sammanta and Ors. v. Union of
India and Ors. (supra)1993 AIR SCW 2214, it was held that a casual labourer
retrenched by the employer deprives herself of remedy available in law by delay itself,
lapse of time results in losing the remedy and the right as well. The delay would
certainly be fatal if it has resulted in material evidence relevant to adjudication being
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lost and rendered not available. However, we do not think that the delay in the case at
hand has been so culpable as to disentitle the appellants for any relief.....” (Emphasis
laid by the Court) In view of the legal principles laid down by this Court in the above
judgment, the reference of the industrial dispute made in the case on hand by the State
Government to the Labour Court to adjudicate the existing industrial dispute between
the parties was made within a reasonable time, considering the circumstances in which
the workman was placed, firstly, as there was a criminal case pending against her and
secondly, the respondent had assured the workman that she would be reinstated after
her acquittal from the criminal case. Moreover, it is reasonable to adjudicate the
industrial dispute in spite of the delay in raising and referring the matter, since there is
no mention of any loss or unavailability of material evidence due to the delay. Thus,
we do not consider the delay in raising the industrial dispute and referring the same to
the Labour Court for adjudication as gravely erroneous and it does not debar the
workman from claiming rightful relief from her employer.
15. In the case of Ajaib Singh v. The Sirhind Co-operative Marketing-cum-Processing
Service Society Limited & Anr.[5] this Court has opined that relief cannot be denied to
the workman merely on the ground of delay, stating that:—
“10. It follows, therefore, that the provisions of Article 137 of the Schedule to
Limitation Act, 1963 are not applicable to the proceedings under the act and that the
relief under it cannot be denied to the workman merely on the ground of delay. The
plea of delay if raised by the employer is required to be proved as a matter of fact by
showing the real prejudice and not as a merely hypothetical defence. No reference to
the labour court can be generally questioned on the ground of delay alone. Even in a
case where the delay in shown to be existing, the tribunal, labour court or board,
dealing with the case can appropriately mould the relief by declining to grant back
wages to the workman till the date she raised the demand regarding her illegal
retrenchment/ termination or dismissal. The Court may also in appropriate cases direct
the payment of part of the back wages instead of full back wages.....” (Emphasis laid
by the Court).
16. Hence, we are of the opinion, having regard to the fact and circumstances of the case
that there is no delay or latches on the part of the workman from the date of her
acquittal in the criminal case. Thereafter, upon failure of the respondent in adhering to
the assurance given to the workman that she would be reinstated after her acquittal
from the criminal case, the workman approached the conciliation officer and the State
Government to make a reference to the Labour Court for adjudication of the dispute
with regard to the order of dismissal passed by the respondent. Keeping in mind the
date of acquittal of the appellant and the date on which she approached the conciliation
officer by raising the dispute, since the respondent had not adhered to its assurance, the
State Government had rightly referred the dispute for its adjudication. Therefore it
cannot be said that there was a delay on the part of the appellant in raising the dispute
and getting it referred to the Labour Court by the State Government.
17. Further, the Labour Court on an erroneous assumption of law framed the
additional issue regarding the limitation in raising the dispute and its reference
by the State Government to the Labour Court. Thus, the Labour Court has ignored
the legal principles laid down by this Court in the cases referred to supra. The award
passed by the Labour Court was accepted erroneously by both the learned single Judge
and the Division Bench of the High Court by dismissing the Civil Writ Petition & the
Letters Patent Appeal without examining the case in its proper perspective, keeping in
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view the power of the State Government under Section 10(1)(c) and the object and
intendment of the Act. Not adjudicating the existing industrial dispute on merits
between the parties referred to it may lead to disruption of industrial peace and
harmony, which is the foremost important aspect in Industrial Jurisprudence as the
same would affect the public interest at large.
19. Ld. Dy. D.A. representing respondent department has also contended with vehemence
that claim petition is barred by limitation on account of delay and laches. It has been pointed that
termination of petitioner in this case took place on 1996 and the industrial dispute was raised after
several years of retrenchment. Repudiating the argument by Ld. Counsel, Ld. AR for the petitioner
has placed reliance upon judgment reported in 2007 LHLJ 903 Hon'ble High Court of H.P.
(Bhatag Ram's case) in which it has been held that delay in raising dispute may be considered by
court at the time of granting final relief however in various other judgments even longer delay has
been condoned. In Divisional Manager, HPFC & another vs. Garibu Ram, Latest HLJ 2007
(HP) 1160, delay of more than 10 years was condoned besides Hon'ble High Court has held that
principle of Limitation Act is not applicable to the industrial dispute. Similar view was taken by
Hon'ble Apex Court in Ajayab Singh vs. Sirhind Co-operative Marketing-cum-Processing
Society Limited and Another, (1999) 6 SCC 82 in which it has been held that the principle of
Limitation Act, 1963 did not apply to the proceeding under the Industrial Disputes Act.
20. Relying upon the aforestated judgment, it has been contended that claim of petitioner
cannot be defeated on the point of delay and laches. Repudiating arguments advanced by Ld.
Counsel for petitioner, Ld. Dy. D.A. has placed reliance upon the judgment of Hon'ble Apex Court
titled as Assistant Engineer, Rajasthan State Agriculture Marketing Board, Sub-Division
Kota and Mohan Lal [2013 (139) FLR 125], the relevant para of the judgment are produced
below for reference:
Industrial Disputes Act, 1947-Sections 25-F and 10-Limitation Act, 1963- Section
5-Industrial dispute-Termination of service-Finding of Labour Court that workman had
completed 240 days in calendar year and her termination was in violation of section 25-F of
the I.D.Act- Workman worked from 1-11-1984 to 17.2.1986 in all 286 days during
employment. Her services terminated on 18-2-1986. Industrial dispute raised after 6 years
of termination. Admitted delay of 6 years not kept in view by the Labour Court- Judicial
discretion exercised by the Labour Court flawed and unsustainable. Reinstatement of the
workman not the appropriate relief. In lieu of reinstatement compensation of Rs. one lac
directed to be paid to the workman by the appellant employer within six weeks failing
which interest @ 9% p.a. will be payable.
[Paras 21 and 22]
Limitation Act, 1963. Section 5- Industrial Disputes Act, 1947- Section 25-F-
Termination of service- Industrial dispute raised after six years- Limitation Act not
applicable to reference made under the I.D. Act-Delay in raising industrial
disputes definitely an important circumstances which the Labour Court must
keep in view before granting relief.
21. Repudiating the arguments by Ld. Dy. D.A. for the State, Ld. Counsel for
claimant/petitioner has relied upon the judgment of Hon'ble Apex Court in case titled as Tapash
Kumar Paul vs. BSNL & another reported in AIR 2015 SC 357 wherein Hon'ble Court held that
a Court may pass an order of reinstatement by awarding compensation but the same has to be based
on justifiable grounds. In this judgment, it was held that compensation can be granted in a situation
where the industry is closed or that employees has superannuated or going to retire shortly and no
period is left to her credit or where workman has been rendered in capacitated to discharge duties
cannot be reinstated and/or fourthly when she has lost confidence of the management to discharge
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duties. It was observed that there may be appropriate cases on facts which may justify substituting
an order of reinstatement by award of compensation but that has to be supported by some legal
and justifiable reasons indicating why the reinstatement should be followed to be substituted
by award of compensation. Ld. Counsel for the petitioner with the aid of above-said judgment had
argued that there are only four situations when a worker may be awarded compensation instead of
reinstatement but the judgment has certainly not been correctly appreciated by Ld. Counsel as this
judgment postulates probable four situations which are illustrate in nature where compensation may
be awarded instead of reinstatement but that does not mean that except the four grounds, no other
ground would be appropriate for awarding compensation. In the case in hand before this court, it
has come that petitioner had abandoned the job who did not report for duty for several years and
later gave notice requesting for joining of duties but the conditions in para No.5 of judgment (2015
supra) even if not met requirement, cannot be a ground to reinstate the petitioner and it is only
compensation which would be appropriate relief. Ld. Counsel for the petitioner has relied upon the
judgment of Hon'be Apex Court titled as Deepali Gundu Surwase vs. Kranti Junior Adhyapak
Mahavidyalaya (D.Ed.) and Ors. reported in AIR 2014 SC (Supp) 121, Raghubir Singh vs.
General Manager, Haryana Roadways, Hissar reported in 2014(3) Apex Court Judgments 652.
I have gone through these judgments and of view that they don't come to rescue the petitioner on
point of reinstatement instead of compensation. Ld. Dy. D.A. for State on the other hand has relied
upon the judgment of Hon'ble Apex Court in Vice Chancellor, Lucknow University, Lucknow,
Uttar Pradesh v. Akhilesh Kumar Khare & another reported in AIR 2015 SC 3473. It has been
contended that engagement of claimant/petitioner in this case was not through regular mode of
recruitment and applying the ratio of this judgment AIR 2015 SC supra, claim of petitioner for
reinstatement can be negated and thus compensation would be sufficient for redressal of grievance
of the claimant/petitioner. Similarly, in 2016 (1) Him. L.R. 502 titled as State of Himachal
Pradesh and another vs. Chaman Singh relied by Ld. AR for petitioner interpretation of Section
137 of Limitation Act was involved which provides that Article 137 of Limitation Act did not apply
to industrial disputes. In 2014 (3) Apex Court Judgment 652 (SC) similar view was reiterated
which clearly mandates that claimant/petitioner cannot be denied relief sought for merely on the
ground of delay and laches. That being so, the law remains as it was that ground of delay and
laches, claimant/petitioner cannot be denied relief rather the court has to consider various aspects
before moulding relief and the case in hand it would not be erroneous to mention here that the
claimant/petitioner can be reasonably indemnified by ordering compensation and not by
reinstatement. In so far as judgment of AIR 2015 SC 1373 titled as Mackinon Machenize &
Company Ltd. vs. Mackinon Employees Union is concerned, the Hon'ble Apex Court has held
on closure of unit of company principle of 'Last come First go' was not followed which violated
Section 25-G of Industrial Disputes Act and retrenchment was held illegal entitling petitioner for
retrenchment compensation. Since the facts of case of Mackinon Machenize's case are different
from case in hand as in former closure of unit of company was involved whereas in case in hand
before this court, there is no closure of company rather it is the department of HPPWD which had
engaged petitioner without following of the procedure although subject to funds and availability of
work. As such, when there is no closure of any unit by respondent which the petitioner was
engaged, judgment of Mackinon Machenize cannot be made applicable.
22. After hearing the rival contentions of the parties and case law relied by them, it can be
safely concluded that delay in raising industrial dispute is certainly important aspect/circumstance
which court has to keep in mind while exercising discretion. In para Nos. 20 and 21 of the
judgment as referred to in this case reported in 2013 (136) FLR 893 (SC) titled as Assistant
Engineer Rajasthan Development Corporation and another vs. Geetam Singh provides that
before exercising its judicial discretion, the Labour Court or Tribunal has to keep in mind all
relevant factors including the mode and manner of appointment, nature of employment, length of
service, the ground on which termination has been set aside and delay in raising industrial dispute
before grant of relief. It was observed by the Hon'ble Apex Court in judgment (2013 supra) before
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that workman had worked for 286 days and had raised industrial dispute in 1992 whereas her
services have been terminated in 1986 and she raised industrial dispute after six years. The Hon'ble
Apex Court has held that though compensation awarded by Single Judge of the Hon'ble High Court
was too low and liable to be enhanced by the Division Bench but surely reinstatement of the
workman in the facts and circumstances is not the appropriate relief and thus Hon'ble Apex
Court awarded a lump-sum of Rs.1 lakh along-with interest @ 9% per annum if the respondent
failed to make payment of compensation within six weeks from the date of judgment. In the case in
hand before this court factors which have weighed are that the petitioner in all remained engaged
for about 07 years and actually worked for 775 days as per mandays chart on record and that the
services of petitioner were disengaged in the year 1996 who worked as non skilled worker and had
raised industrial dispute by issuance of demand notice after about fifteen years i.e. demand notice
was given on 21-12-2011. Taking into consideration factors mentioned above in pursuance to
judgments of Hon'ble Apex Court referred to above, petitioner would not be entitled either for
reinstatement or for back wages but a lump-sum compensation would be appropriate relief in view
of judgment 2013 (139) FLR 25 (SC). The judgments relied upon by ld. counsel for petitioner on
the matter of delay and laches is more or less settled law that claim of the petitioner could not be
solely declined on the ground of delay and laches. Similarly, judgment of Hon'ble Apex Court in
2014 titled as Raghubir Singh's case also does not come to the rescue of the petitioner as in this
judgment also the Hon'ble Apex Court has reiterated the mandate as given by the Hon‟ble Apex
Court in previous judgment in the year 2013 i.e. Assistant Engineer, Rajasthan State
Agriculture Marketing Board, Sub-Division Kota and Mohan Lal's case. I have gone through
these judgments which are not attracted in this present case as this court not declining relief to the
petitioner on the ground of limitation rather on the basis of guidelines of Hon'ble Apex Court laid
down in judgment of 2013 as referred to above. Ld. Dy. D.A. representing State/respondents has
relied upon the judgment of Hon'ble Apex Court reported in AIR 2016 SC 2984 titled as
Prabhakar v. Joint Director Sericulture Department and another. I have gone through the
judgment which deals reference under Section 10 of the Industrial Disputes Act in which it has
been held that Hon'ble High Court can intervene in writ jurisdiction under Article 226 when
reference has been challenged on the ground of inordinate unexplained delay. Since the reference
made by the Government in this case is not in challenge before this Court, the above said judgment
would not be attracted in the facts and circumstances of the case. Moreso in view of observation
qua facts made in judgment (2016) supra, claimant/petitioner was found to be an educated person
who was working as Clerk whereas in case before this Court, the petitioner is an illiterate unskilled
worker. For the above-said reasons, plea of delay and laches would not eclipse claim of petitioner.
23. In view of foregoing discussion, a lump-sum compensation of Rs.70,000/- (Rupees
seventy thousand only) would be an appropriate relief to which the petitioner is entitled in the facts
and circumstances of the case as stated above. It is further made clear that amount of compensation
shall be paid within four months from the date of receipt of Award failing which the petitioner
would be entitled for interest @ 9% per annum from date of Award till its realization. Issues No. 1
to 3 are answered accordingly.
Issue No.4 :
24. On the plea of non-maintainability of the claim petition under Section 10 of the
Industrial Disputes Act, Ld. Dy. D.A. representing respondent department has failed to allege in
reply in what manner petition is not maintainable. Thus, vague plea merits rejection outright.
Otherwise also, from pleadings and evidence on record, no inference of claim petition being not
maintainable could be raised against claimant/petitioner. This issue is decided in favour of
petitioner and against the respondent.
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RELIEF
25. As sequel to my findings on foregoing issues, the respondent is hereby directed to pay
the compensation of Rs.70,000/- (Rupees seventy thousand only) to the petitioner in lieu of the
reinstatement, back wages, seniority and past service benefits. Amount of compensation so
awarded will be paid by the respondent to the petitioner within four months from the date of receipt
of Award failing which the respondent shall be liable to pay the interest @ 9% per annum on the
said amount from the date of award till the date of its realization. In the peculiar circumstances of
the case, the parties are left to bear their own costs.
26. The reference is answered in the aforesaid terms.
27. A copy of this Award be sent to the appropriate Government for publication in the
official gazette.
28. File, after due completion be consigned to the Record Room.
Announced in the open Court today this 4th day of October, 2017.
Sd/-
(K. K. Sharma)
Presiding Judge,
Labour Court-cum-Industrial Tribunal,
Kangra at Dharamshala, H.P.
____________
IN THE COURT OF SHRI K. K. SHARMA, PRESIDING JUDGE, LABOUR COURT-
CUM-INDUSTRIAL TRIBUNAL, KANGRA AT DHARAMSHALA (H. P.)
Ref. No.
: 498/2015
Date of Institution : 09-11-2015
Date of Decision
: 04-10-2017
Shri Dhyan Singh s/o Shri Saran Dass, r/o Village Seri, P.O. Kothi, Tehsil Pangi, District
Chamba, H.P.
..Petitioner.
Versus
The Executive Engineer, Killar Division, H.P.P.W.D., Killar (Pangi), District Chamba, H.P.
..Respondent.
Reference under Section 10 (1) of the Industrial Disputes Act, 1947
For the Petitioner : Sh. Rajeev Dharmani, Adv.
For the Respondent : Sh. Sanjeev Singh Rana, Dy. D.A.
AWARD
The reference given below has been received from the appropriate Government for
adjudication:
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“Whether the industrial dispute raised by the worker Shri Dhyan Singh s/o Shri Saran Dass,
r/o Village Seri, P.O. Kothi, Tehsil Pangi, District Chamba, H.P. before the Executive
Engineer, Killar Division, H.P.P.W.D., Killar (Pangi), District Chamba, H.P. vide demand
notice dated nil received in the Labour Office Chamba on dated 31-10-2011 regarding his
alleged illegal termination of services during September, 2004 suffers from delay and
latches? If not, whether termination of services of Shri Dhyan Singh s/o Shri Saran Dass, r/o
Village Seri, P.O. Kothi, Tehsil Pangi, District Chamba, H.P. by the Executive Engineer,
Killar Division, H.P.P.W.D., Killar (Pangi), District Chamba, H.P. during September, 2004,
without complying the provisions of the Industrial Disputes Act, 1947, is legal and
justified? If not, what amount of back wages, seniority, past service benefits and
compensation the above aggrieved workman is entitled to from the above employer?”
2. On receipt of reference from appropriate government, notices were issued to the parties
in pursuance to which claimant/petitioner has filed statement of claim.
3. Brief facts as enumerated in the present claim petition by the petitioner above named
revealed that he had been initially engaged as daily wage beldar on muster roll basis in the year
1995 who continuously worked till 2005 with the respondent. Averments made in the petition
further revealed that petitioner had worked for 160 days in each calendar year as per the criteria
prescribed for tribal area of Pangi Tehsil, District Chamba and became eligible for continuous
service envisaged under statutory provisions of Section 25-B of the Industrial Disputes Act, 1947
(hereinafter referred to as 'the Act' for brevity). Averments made in the petition revealed that the
services of petitioner had been interrupted by way of intermittent/artificial breaks given by the
respondent/department deliberately and as such breaks are required to be counted as 'continuous
services' for the purposes of calculation of 160 days for the applicability of Section 25-B of the Act.
The grievance of petitioner remains that respondent/department had terminated/disengaged
petitioner from daily wage service orally without issuing one month's notice in writing stipulating
therein reason for retrenchment besides no retrenchment compensation was paid to petitioner when
respondent had been illegally terminated. It is also alleged that respondent had not followed the
provisions of Section 25-F of the Act while disengaging petitioner from service. It is stated that
petitioner is very poor who has no source of income besides after termination of the services of
petitioner, petitioner had approached the respondent time and again but of no avail. The grievance
of petitioner further remains that when the services of petitioner had been terminated,
respondent/department had re-engaged number of new workman from time to time and while doing
so, respondent had not followed the principle of 'Last come, First go' envisaged under Section 25-G
of the Act. It is further alleged that respondent/department had continuously retained junior to
petitioner who are still in service namely Suraj Ram who appointed in 1997, Chunku Ram in 2000,
Budhi Ram in 2003 and Dev Raj in 2007. The claimant/petitioner claimed that he had spotless
service record who never been charge-sheeted for any act of indiscipline or negligence or his
conduct and even at the time of verbal termination, no charge-sheet had been served upon him and
at the same time, no opportunity of hearing had been afforded to him. The petitioner also alleges
that he has remained unemployed ever since his illegal termination from year of 2005 till the date
of institution of present claim petition who had been nowhere gainfully employed and was thus
entitled for full back wages. Accordingly alleging respondent to have committed violation of
statutory provision of Section 25-F, Section 25-G and Section 25-H of the Industrial Disputes Act,
1947 and thus petitioner prays for setting aside oral order of termination/retrenchment of
respondent in the year 2005. He further prayed for reinstatement in service w.e.f. year 2005 along-
with back wages, seniority including continuity in service as petitioner as he had remained
unemployed since the date of his illegal termination. The petitioner has also prayed that period of
intermittent/fictional breaks deliberately given time and again during entire service of petitioner
between 1995 to 2005 be counted 160 days continuous service and to any other relief petitioner is
entitled and regularization of the services of petitioner w.e.f. 1-1-2002 under 10 years regularization
policy and to any other relief petitioner is entitled.
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4. The respondent contested claim petition, filed reply inter-alia taken preliminary
objections of maintainability, claim petition being bad on account of delay and laches. On merits
denied that petitioner had worked for more than 160 days in each calendar year rather clarified by
stating that petitioner was engaged as daily waged beldar in 1997 who remained engaged till 2004
but had worked intermittently as petitioner used to come and attend the work at his own sweet will
and convenience. Relying upon the mandays chart, it has been categorically pleaded by the
respondent that petitioner had not completed 160 days in each calendar year as required for tribal
area of Pangi Tehsil. The allegations of fictional breaks given by respondent to the petitioner have
been specifically denied. In so far as engagement of persons junior to petitioner mentioned in para
No. 10 of the claim petition were appointed as per order of Labour Court and no other juniors to the
petitioner had been retained in service by the respondent. On the plea of termination of service of
petitioner, respondent specifically alleges that petitioner had left the job at his own will therefore
serving of notice or pay in lieu thereof was not required. Reiterating its stand respondent has
maintained that petitioner had left the work of his own sweet will and the persons mentioned in
para No.10 are stated to have engaged as per direction of the Labour Court-cum-Industrial Tribunal
Dharamshala and respondent had not violated the principle of 'Last come, First go'. It is also
contended that if petitioner had been terminated in 2004 he would have definitely raised industrial
dispute immediately and that after thirteen years petitioner is stated to be agitating the matter which
is bad on account of delay and laches. It is also contended that since the services of petitioner had
not been terminated by the respondent, question of issuance of notice or wages in lieu thereof did
not arise and at the same time, there was no necessity for charge-sheet or issuing any notice of
petitioner after his termination. It is contended that petitioner was agriculturist and gainfully
employed and was thus not entitled for back wages.
5. The petitioner filed rejoinder, reiterated his stand as maintained in the claim petition.
Further asserted that provisions of Limitation Act did not eclipse the claim of petitioner in totality
besides allegation of violation of principle of 'Last come First go' was specifically denied.
6. In order to prove his case, petitioner had examined himself as PW1 tendered/proved
his affidavit Ex. PW1/A under Order 18 Rule 4 CPC, copy of demand notice Ex. PW1/B, copy of
order dated 27-8-2015 Ex. PW1/C and closed evidence. On the other hand, repudiating the
evidence led by the petitioner, respondent examined RW1 Shri D. R. Chauhan, the then Executive
Engineer, HPPWD Division Killar as RW1 tendered/proved mandays chart of petitioner Ex.
RW1/B, Ex. RW1/C copy of mandays chart of co-workers and closed the evidence.
7. I have heard the Ld. Counsel of petitioner and Ld. Dy. D.A. representing respondent,
gone through records of the case carefully relevant for disposed of this case.
8. From the contentions raised, following issues were framed on 29-04-2016 for
determination:
1. Whether the industrial dispute raised by petitioner vide demand notice dated nil qua his
termination of service during September, 2004 by respondent suffers from the vice of
delay and laches as alleged? If so, its effect?
...OPP.
2. Whether termination of the services of the petitioner by the respondent during
September, 2004 is/was illegal and unjustified as alleged?
...OPP.
3. If issue No. 2 is proved in affirmative, to what service benefits the petitioner is entitled
to?
...OPP.
4. Whether the claim petition is not maintainable in the present form as alleged? ...OPR.
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Relief.
9. For the reasons detailed hereunder, my findings on the above issues are as follows:—
Issue No.1 : Discussed
Issue No. 2 : Yes
Issue No. 3 : Discussed
Issue No. 4 : No
Relief. : Petition is partly allowed awarding compensation of Rs.80,000/- per operative
part of award.
REASONS FOR FINDINGS
Issues No. 1 to 3
10. All these issues have been taken up together for discussion being interconnected which
can be disposed of simultaneously without repetition of evidence.
11. Relationship of petitioner having been engaged as daily waged beldar by respondent on
muster roll basis in the year 1995 continuously worked till 2004 with the respondent is not in
dispute. Admittedly, petitioner was engaged without any written order or settlement of terms and
conditions by the respondent. It is equally not in dispute that no written order was passed while
terminating service of the petitioner as claim of respondent remains that it had not retrenched
petitioner from service who had abandoned the job of his own and used to work intermittently as
per his own wish and convenience. However, there is dispute with regard to period for which the
petitioner has worked with respondent. It is evident from mandays chart Ex. RW1/B coupled with
pleadings of respondent that petitioner had worked from 1997 till September, 2004 whereas the
claimant/petitioner alleges that he had worked from 1995 to 2005. Since the claim of petitioner is
not substantiated from any corresponding documentary evidence on record, the only inference in
such situation could be drawn is that petitioner had been factually engaged w.e.f. 1997 to 2004 and
not from 1995 to 2005. Admittedly, the reference of appropriate govt. does not relate to plea of
fictional breaks but only with regard to petitioner's termination from service. In the backdrop of
foregoing admitted facts on record, claim of petitioner requires to be adjudicated with a view to
determine if petitioner is entitled for relief of reinstatement and back wages along-with seniority
and past service benefits and compensation as claimed by him.
12. Stepping into witness box as PW1 has sworn in affidavit Ex. PW1/A reiterating and
reaffirming his pleadings as stipulated in claim petition. In his affidavit he has claimed to have
worked with the respondent/department for more than 160 days in Pangi Sub Division, Chamba
District and remained engaged from 1995 till 2003. He has also stated on oath that no notice under
Section 25-F of the Act was given by the respondent before terminating his service and at the same
time no compensation in lieu thereof notice period was paid to him and thus his termination was
illegal and void entitling petitioner benefit of reinstatement of service with full back wages and all
the other consequential service benefits. The petitioner has further alleged on oath that
respondent/department after terminating his services in 2005 by oral order had engaged several co-
workers who were junior to petitioner were retained in service. Not only this, the persons who were
junior to petitioner are stated to have been regularized in service and thus respondent had not
followed the mandate of Sections 25-G and 25-H of the Act which was obligatory on its part. The
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case of petitioner also remains that he had served respondent with due diligence and had spotless
service record as respondent/department had never called any explanation or raised charge-sheet
against him but even while retrenching petitioner from service, no notice was given. The petitioner
has also explained reason for not approaching the authorities under Labour Act and thereafter
before this Tribunal and petitioner had moved before the Labour Officer raising demand notice
consequent upon which a failure report was submitted and as the Labour Commissioner did not
make reference for industrial dispute raised by petitioner, the petitioner had moved before the
Hon'ble High Court by filing CWP where direction was passed for making reference to the Labour
Court due to which delay had occurred and same was satisfactorily explained.
13. In so far as plea of abandonment raised by respondent is concerned, the same merits
rejection in view of the fact that respondent had failed to produce any record by which it could be
established that whenever petitioner absented from his duty as also reflected in mandays chart Ex.
RW1/B any notice or letter was ever issued. On this point respondent as RW1 has specifically
admitted that whenever petitioner abandoned the job, no notice had been issued. RW1 specifically
admitted that no departmental inquiry was initiated against petitioner even after 2004. No reason
whatsoever has been assigned for such any action or omission on the part of respondent in not
initiating any departmental proceedings or making correspondence calling upon the petitioner to
join service. This prima facie belies the stand taken by the respondent as abandonment has to be
proved like any other fact in issue. The petitioner, on the other hand, as PW1 in cross examination
has specifically denied that he used to leave the job in between and attended the work intermittently
rather he has claimed that intermit breaks had been deliberately given to him by the respondent in
the service record of petitioner so that petitioner did not complete 160 days of work as required for
Pangi Tehsil area and also for applicability of Section 25-B of the Act. As such, in absence of any
specific and reliable evidence led by respondent, it would be unsafe to hold that respondent had
established plea of abandonment.
14. A bare glance on the mandays chart Ex. RW1/B would reveal that petitioner had
worked for 19 days in the year 1997, 58 days in 1999, 48 days in 2000, 57 days in 2001, 132 days
in 2002, 110 days in 2003 and 97 days in 2004 and thus a total of his service in 1997 to 2004 in 07
years he had worked for 521 days in his entire service period. Be it noticed that petitioner had not
worked for more than 160 days and as there is no reference from the Labour Commissioner, Shimla
on the point of artificial breaks, this court is to confine its findings only with regard to alleged
illegal termination. It is evident from mandays chart Ex. RW1/B that in the year 2004 the petitioner
had merely worked for 97 days and thus immediately in preceding 12 calendar months from the
month of termination of petitioner had not rendered service of 160 days so as to meet requirement
of law of having continuous service of one year and thus it was not at all required from respondent
to have issued a notice envisaged under Section 25-F of the Act. As such, the respondent is held to
have not violated the provisions of Section 25-F of the Act.
15. Ld. Counsel for petitioner has contended with vehemence that large number of workers
who were junior to petitioner had been appointed and these workers have been retained in service
and regularized. The grievance of petitioner remains that principle of 'Last come First go' was not
followed as the juniors were retained and services of petitioner despite being senior was terminated
without any valid reason. Ex. RW1/C is the year-wise mandays of daily waged workers who were
junior to the petitioner and had joined in the year 1997 or thereafter. All of these co-workers shown
in Ex. RW1/C the year-wise mandays details of workers of Division HPPWD Killar were certainly
junior to petitioner who were given sufficient work existing in those years more than 200 days in a
year whereas the petitioner had been not given muster roll for the whole month. Ex. RW1/C also
established that all the co-workers shown in this document have worked for more than 160 days in
most of the years although they were junior to petitioner. Evidently, there is no iota of evidence of
respondent establishing that petitioner was called upon to join for service at any time after 2004
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even at the time when junior persons were re-engaged. That being so the respondent had certainly
violated the provisions of Section 25-G of the Act as the juniors workers mentioned in para No.10
of the affidavit were retained whereas petitioner was senior from these co-workers having joined
service in 1997 was terminated and even thereafter respondent omitted to afford opportunity to
petitioner for re-employment for work which also violates the provisions of Section 25-H of the
Act. Ld. Counsel for petitioner has placed reliance upon judgment of Central Bank of India vs. S.
Satyam, 1996 (5) SCC 419 in which Hon'ble Apex Court has held that for the applicability of
Section 25-G and 25-H of the Act, there was no necessity of claimant/petitioner to have worked
for 240 days as in case of provisions of Section 25-F of the Act.
16. Ld. Dy. D.A. representing respondent has made futile attempt to justify engagement
junior worker and their retention in service in pursuance to Awards passed by Labour Court. On the
other hand, Ld. Counsel for petitioner relied upon Ex. PW1/C the order dated 27-8-2015 of Hon'ble
High Court of H.P. vide which the orders qua termination passed as against respondent and several
other were quashed. That being so the relief was granted in favour of the petitioner who was
directed to be reinstated with others. As such, even when petitioner is proved to have not worked
for more than 160 days in preceding 10 years which entitled him for regularization of his service
per government policy, yet respondent is not absolved from its accountability for complying the
provisions of Sections 25-G and 25-H of the Act and as such, it is held that respondent had violated
the provisions of Sections 25-G and 25-H of the Industrial Disputes Act.
17. Ld. Counsel for petitioner has contended that after petitioner's termination in
September, 2004, he had remained unemployed and was not earning anything thereafter as such
was entitled for full back wages. Repudiating the arguments of Ld. Counel of petitioner, Ld. Dy.
D.A. for the State has taken this court through cross-examination of the petitioner who has admitted
that he had cultivable land with him and also worked a private labourer. Thus, plea of having
remained not gainfully employed gets belied admission of petitioner in cross examination in which
he had maintained that he had been earning from agricultural land as well as he has been working
as daily wager privately. Reliance has been placed on the judgment of Hon'ble Apex Court North
East Karnataka Road Transport Corporation vs. M. Nagangouda (2007) 10 SCC 765 in which
Division Bench comprising of Justice A.R. Lakshmanan and Justice Altamas Kabir had held that
'term gainfully employment would also include self employment wherefrom income is
generated. It was income either from employment in an establishment or from self
employment merely differentiates the sources from which income is generated, the end use
being the same'. Applying the ratio of judgment of 2007 (supra) to this case since the petitioner
was earning from his agricultural and manual pursuits, the same were sufficient to maintain him
and his family. It is thus held that petitioner was gainfully employed. Be it stated here that Hon'ble
Apex Court in Deepali Gundu Surwase's case has held that the Labour Court was not justified in
holding that merely because the respondent was receiving agriculture income, he cannot be treated
to be engaged in gainful employment. Since the petitioner had income from agriculture pursuits for
his livelihood it cannot be stated that petitioner was not gainfully employed and thus would not be
entitled full back wages. In view of the forgoing discussion, it is held that the relationship of
workman and employer existed between petitioner and respondent and that petitioner was illegally
retrenched without compliance of Section 25-G and Section 25-H of the Act although remained
gainfully employed after his retrenchment. Thus, applying the ratio of judgment of Hon'ble Apex
Court (2007 supra), it may not be erroneous to hold that petitioner was gainfully employed and
thus would be not entitled for back wages for the period he was out of job on being terminated by
the respondent.
18. Lastly, Ld. Dy. D.A. for State has contended with vehemence that there is inordinate
and explained delay which disentitles petitieoner relief claimed for by him. On the other hand, Ld.
Counsel for the petitioner has relied upon the judgment of Hon'ble Apex Court titled Raghubir
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Singh vs. General Manager, Haryana Roadways, Hissar reported in 2014 Lab IC 4266 (SC)
and the relevant paras of the judgment are produced below for reference:
“12. Therefore, in our considered view, the observations made by this Court in the
Rajasthan State Agriculture Marketing Board case (supra) upon which the learned
Additional Advocate General for the State of Haryana has placed reliance cannot be
applied to the fact situation of the case on hand, for the reason that the Labour Court
has erroneously rejected the reference without judiciously considering all the relevant
factors of the case particularly the points of dispute referred to it and answered the 2nd
issue regarding the reference being barred by limitation but not on the merits of the
case. The said decision has no application to the fact situation and also for the reason
the catena of decisions of this Court referred to supra, wherein this Court has
categorically held that the provisions of Limitation Act under Article 137 has no
application to make reference by the appropriate government to the Labour
Court/Industrial Tribunal for adjudication of existing industrial dispute between
workmen and the employer.
13. In the case on hand, no doubt there is a delay in raising the dispute by the
appellant; the Labour Court nevertheless has the power to mould the relief
accordingly. At the time of adjudication, if the dispute referred to the Labour
Court is not adjudicated by it, it does not mean that the dispute ceases to exist.
The appropriate government in exercise of its statutory power under Section 10(1)(c)
of the Act can refer the industrial dispute, between the parties, at any time, to either the
jurisdictional Labour Court/Industrial Tribunal as interpreted by this Court in the Avon
Services case referred to supra. Therefore, the State Government has rightly exercised
its power under Section 10(1)(c) of the Act and referred the points of dispute to the
Labour Court as the same are in accordance with the law laid down by this Court in
Avon Services & Sapan Kumar Pandit cases referred to supra.
14. Further, the workman cannot be denied to seek relief only on the ground of delay
in raising the dispute as held in the case of S.M. Nilajkar & Ors. v. Telecom
District Manager, Karnataka[4] it was held by this Court as follows.
“17. It was submitted on behalf of the respondent that on account of delay in raising
the dispute by the appellants the High Court was justified in denying relief to the
appellants. We cannot agree...... in Ratan Chandra Sammanta and Ors. v. Union of
India and Ors. (supra)1993 AIR SCW 2214, it was held that a casual labourer
retrenched by the employer deprives himself of remedy available in law by delay itself,
lapse of time results in losing the remedy and the right as well. The delay would
certainly be fatal if it has resulted in material evidence relevant to adjudication being
lost and rendered not available. However, we do not think that the delay in the case at
hand has been so culpable as to disentitle the appellants for any relief.....” (Emphasis
laid by the Court). In view of the legal principles laid down by this Court in the above
judgment, the reference of the industrial dispute made in the case on hand by the State
Government to the Labour Court to adjudicate the existing industrial dispute between
the parties was made within a reasonable time, considering the circumstances in which
the workman was placed, firstly, as there was a criminal case pending against his and
secondly, the respondent had assured the workman that he would be reinstated after his
acquittal from the criminal case. Moreover, it is reasonable to adjudicate the industrial
dispute in spite of the delay in raising and referring the matter, since there is no
mention of any loss or unavailability of material evidence due to the delay. Thus, we
do not consider the delay in raising the industrial dispute and referring the same to the
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Labour Court for adjudication as gravely erroneous and it does not debar the workman
from claiming rightful relief from his employer.
15. In the case of Ajaib Singh v. The Sirhind Co-operative Marketing-cum- Processing
Service Society Limited & Anr.[5] this Court has opined that relief cannot be denied to
the workman merely on the ground of delay, stating that:—
“10. It follows, therefore, that the provisions of Article 137 of the Schedule to
Limitation Act, 1963 are not applicable to the proceedings under the act and that the
relief under it cannot be denied to the workman merely on the ground of delay. The
plea of delay if raised by the employer is required to be proved as a matter of fact by
showing the real prejudice and not as a merely hypothetical defence. No reference to
the labour court can be generally questioned on the ground of delay alone. Even in a
case where the delay in shown to be existing, the tribunal, labour court or board,
dealing with the case can appropriately mould the relief by declining to grant back
wages to the workman till the date he raised the demand regarding his illegal
retrenchment/ termination or dismissal. The Court may also in appropriate cases direct
the payment of part of the back wages instead of full back wages.....” (Emphasis laid
by the Court).
16. Hence, we are of the opinion, having regard to the fact and circumstances of the case
that there is no delay or laches on the part of the workman from the date of his
acquittal in the criminal case. Thereafter, upon failure of the respondent in adhering to
the assurance given to the workman that he would be reinstated after his acquittal from
the criminal case, the workman approached the conciliation officer and the State
Government to make a reference to the Labour Court for adjudication of the dispute
with regard to the order of dismissal passed by the respondent. Keeping in mind the
date of acquittal of the appellant and the date on which he approached the conciliation
officer by raising the dispute, since the respondent had not adhered to its assurance, the
State Government had rightly referred the dispute for its adjudication. Therefore it
cannot be said that there was a delay on the part of the appellant in raising the dispute
and getting it referred to the Labour Court by the State Government.
17. Further, the Labour Court on an erroneous assumption of law framed the
additional issue regarding the limitation in raising the dispute and its reference
by the State Government to the Labour Court. Thus, the Labour Court has ignored
the legal principles laid down by this Court in the cases referred to supra. The award
passed by the Labour Court was accepted erroneously by both the learned single Judge
and the Division Bench of the High Court by dismissing the Civil Writ Petition & the
Letters Patent Appeal without examining the case in its proper perspective, keeping in
view the power of the State Government under Section 10(1)(c) and the object and
intendment of the Act. Not adjudicating the existing industrial dispute on merits
between the parties referred to it may lead to disruption of industrial peace and
harmony, which is the foremost important aspect in Industrial Jurisprudence as the
same would affect the public interest at large.
19. Ld. Dy. D.A. representing respondent department has also contended with vehemence
that claim petition is barred by limitation on account of delay and laches. It has been pointed that
termination of petitioner in this case took place on 2004 and the industrial dispute was raised after
several years of retrenchment. Repudiating the argument by Ld. Counsel, Ld. AR for the petitioner
has placed reliance upon judgment reported in 2007 LHLJ 903 Hon'ble High Court of H.P.
(Bhatag Ram's case) in which it has been held that delay in raising dispute may be considered by
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court at the time of granting final relief however in various other judgments even longer delay has
been condoned. In Divisional Manager, HPFC & another vs. Garibu Ram, Latest HLJ 2007
(HP) 1160, delay of more than 10 years was condoned besides Hon'ble High Court has held that
principle of Limitation Act is not applicable to the industrial dispute. Similar view was taken by
Hon'ble Apex Court in Ajayab Singh vs. Sirhind Co-operative Marketing-cum-Processing
Society Limited and Another (1999) 6 SCC 82 in which it has been held that the principle of
Limitation Act, 1963 did not apply to the proceeding under the Industrial Disputes Act.
20. Relying upon the aforestated judgment, it has been contended that claim of petitioner
cannot be defeated on the point of delay and laches. Repudiating arguments advanced by Ld.
Counsel for petitioner, Ld. Dy. D.A. has placed reliance upon the judgment of Hon'ble Apex Court
titled as Assistant Engineer, Rajasthan State Agriculture Marketing Board, Sub-Division
Kota and Mohan Lal [2013 (139) FLR 125], the relevant para of the judgment are produced
below for reference:
Industrial Disputes Act, 1947-Sections 25-F and 10-Limitation Act, 1963- Section 5-
Industrial dispute-Termination of service-Finding of Labour Court that workman had
completed 240 days in calendar year and her termination was in violation of section 25-F of
the I.D.Act- Workman worked from 1-11-1984 to 17-2-1986 in all 286 days during
employment. Her services terminated on 18-2-1986. Industrial dispute raised after 6 years
of termination. Admitted delay of 6 years not kept in view by the Labour Court- Judicial
discretion exercised by the Labour Court flawed and unsustainable. Reinstatement of the
workman not the appropriate relief. In lieu of reinstatement compensation of Rs. one lac
directed to be paid to the workman by the appellant employer within six weeks failing
which interest @ 9% p.a. will be payable.
[Paras 21 and 22]
Limitation Act, 1963. Section 5- Industrial Disputes Act, 1947- Section 25-F- Termination
of service- Industrial dispute raised after six years- Limitation Act not applicable to
reference made under the I.D. Act-Delay in raising industrial disputes definitely an
important circumstances which the Labour Court must keep in view before granting
relief '.
21. Repudiating the arguments by Ld. Dy. D.A. for the State, Ld. Counsel for
claimant/petitioner has relied upon the judgment of Hon'ble Apex Court in case titled as Tapash
Kumar Paul vs. BSNL & another reported in AIR 2015 SC 357 wherein Hon'ble Court held that
a Court may pass an order of reinstatement by awarding compensation but the same has to be based
on justifiable grounds. In this judgment, it was held that compensation can be granted in a situation
where the industry is closed or that employees has superannuated or going to retire shortly and no
period is left to his credit or where workman has been rendered in capacitated to discharge duties
cannot be reinstated and/or fourthly when he has lost confidence of the management to discharge
duties. It was observed that there may be appropriate cases on facts which may justify substituting
an order of reinstatement by award of compensation but that has to be supported by some legal
and justifiable reasons indicating why the reinstatement should be followed to be substituted
by award of compensation. Ld. Counsel for the petitioner with the aid of above-said judgment had
argued that there are only four situations when a worker may be awarded compensation instead of
reinstatement but the judgment has certainly not been correctly appreciated by Ld. Counsel as this
judgment postulates probable four situations which are illustrate in nature where compensation may
be awarded instead of reinstatement but that does not mean that except the four grounds, no other
ground would be appropriate for awarding compensation. In the case in hand before this court, it
has come that petitioner had abandoned the job who did not report for duty for several years and
later gave notice requesting for joining of duties but the conditions in para No.5 of judgment (2015
supra) even if not met requirement, cannot be a ground to reinstate the petitioner and it is only
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compensation which would be appropriate relief. Ld. Counsel for the petitioner has relied upon the
judgment of Hon'ble Apex Court titled as Deepali Gundu Surwase vs. Kranti Junior Adhyapak
Mahavidyalaya (D.Ed.) and Ors. reported in AIR 2014 SC (Supp) 121, Raghubir Singh vs.
General Manager, Haryana Roadways, Hissar reported in 2014(3) Apex Court Judgments 652.
I have gone through these judgments and of view that they don't come to rescue the petitioner on
point of reinstatement instead of compensation. Ld. Dy. D.A. for State on the other hand has relied
upon the judgment of Hon'ble Apex Court in Vice Chancellor, Lucknow University, Lucknow,
Uttar Pradesh v. Akhilesh Kumar Khare & another reported in AIR 2015 SC 3473. It has been
contended that engagement of claimant/petitioner in this case was not through regular mode of
recruitment and applying the ratio of this judgment AIR 2015 SC supra, claim of petitioner for
reinstatement can be negated and thus compensation would be sufficient for redressal of grievance
of the claimant/petitioner. Similarly, in 2016 (1) Him. L.R. 502 titled as State of Himachal
Pradesh and another vs. Chaman Singh relied by Ld. AR for petitioner interpretation of Section
137 of Limitation Act was involved which provides that Article 137 of Limitation Act did not apply
to industrial disputes. In 2014 (3) Apex Court Judgment 652 (SC) similar view was reiterated
which clearly mandates that claimant/petitioner cannot be denied relief sought for merely on the
ground of delay and laches. That being so, the law remains as it was that ground of delay and
laches, claimant/petitioner cannot be denied relief rather the court has to consider various aspects
before moulding relief and the case in hand it would not be erroneous to mention here that the
claimant/petitioner can be reasonably indemnified by ordering compensation and not by
reinstatement. In so far as judgment of AIR 2015 SC 1373 titled as Mackinon Machenize &
Company Ltd. vs. Mackinon Employees Union is concerned, the Hon'ble Apex Court has held
on closure of unit of company principle of 'Last come First go' was not followed which violated
Section 25-G of Industrial Disputes Act and retrenchment was held illegal entitling petitioner for
retrenchment compensation. Since the facts of case of Mackinon Machenize's case are different
from case in hand as in former closure of unit of company was involved whereas in case in hand
before this court, there is no closure of company rather it is the department of HPPWD which had
engaged petitioner without following of the procedure although subject to funds and availability of
work. As such, when there is no closure of any unit by respondent which the petitioner was
engaged, judgment of Mackinon Machenize cannot be made applicable.
22. After hearing the rival contentions of the parties and case law relied by them, it can be
safely concluded that delay in raising industrial dispute is certainly important aspect/circumstance
which court has to keep in mind while exercising discretion. In para Nos. 20 and 21 of the
judgment as referred to in this case reported in 2013 (136) FLR 893 (SC) titled as Assistant
Engineer Rajasthan Development Corporation and another vs. Geetam Singh provides that
before exercising its judicial discretion, the Labour Court or Tribunal has to keep in mind all
relevant factors including the mode and manner of appointment, nature of employment, length of
service, the ground on which termination has been set aside and delay in raising industrial dispute
before grant of relief. It was observed by the Hon'ble Apex Court in judgment (2013 supra) before
that workman had worked for 286 days and had raised industrial dispute in 1992 whereas her
services have been terminated in 1986 and she raised industrial dispute after six years. The Hon'ble
Apex Court has held that though compensation awarded by Single Judge of the Hon'ble High Court
was too low and liable to be enhanced by the Division Bench but surely reinstatement of the
workman in the facts and circumstances is not the appropriate relief and thus Hon'ble Apex
Court awarded a lump-sum of Rs.1 lakh alongwith interest @ 9% per annum if the respondent
failed to make payment of compensation within six weeks from the date of judgment. In the case in
hand before this court factors which have weighed are that the petitioner in all remained engaged
for about 07 years and actually worked for 521 days as per mandays chart on record and that the
services of petitioner were disengaged in the year 2004 who worked as non skilled worker and had
raised industrial dispute by issuance of demand notice after about seven years i.e. demand notice
was given on 31-10-2011. Taking into consideration factors mentioned above in pursuance to
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judgments of Hon'ble Apex Court referred to above, petitioner would not be entitled either for
reinstatement or for back wages but a lump-sum compensation would be appropriate relief in view
of judgment 2013 (139) FLR 25 (SC). The judgments relied upon by Ld. Counsel for petitioner on
the matter of delay and laches is more or less settled law that claim of the petitioner could not be
solely declined on the ground of delay and laches. Similarly, judgment of Hon'ble Apex Court in
2014 titled as Raghubir Singh's case also does not come to the rescue of the petitioner as in this
judgment also the Hon'ble Apex Court has reiterated the mandate as given by the Hon'ble Apex
Court in previous judgment in the year 2013 i.e. Assistant Engineer, Rajasthan State
Agriculture Marketing Board, Sub-Division Kota and Mohan Lal's case. I have gone through
these judgments which are not attracted in this present case as this court not declining relief to the
petitioner on the ground of limitation rather on the basis of guidelines of Hon'ble Apex Court laid
down in judgment of 2013 as referred to above. Ld. Dy. D.A. representing State/respondents has
relied upon the judgment of Hon'ble Apex Court reported in AIR 2016 SC 2984 titled as
Prabhakar v. Joint Director Sericulture Department and another. I have gone through the
judgment which deals reference under Section 10 of the Industrial Disputes Act in which it has
been held that Hon'ble High Court can intervene in writ jurisdiction under Article 226 when
reference has been challenged on the ground of inordinate unexplained delay. Since the reference
made by the Government in this case is not in challenge before this Court, the above said judgment
would not be attracted in the facts and circumstances of the case. Moreso in view of observation
qua facts made in judgment (2016) supra, claimant/petitioner was found to be an educated person
who was working as Clerk whereas in case before this Court, the petitioner is an illiterate unskilled
worker. For the above-said reasons, plea of delay and laches would not eclipse claim of petitioner.
23. In view of foregoing discussion, a lump-sum compensation of Rs. 80,000/- (Rupees
eighty thousand only) would be an appropriate relief to which the petitioner is entitled in the facts
and circumstances of the case as stated above. It is further made clear that amount of compensation
shall be paid within four months from the date of receipt of Award failing which the petitioner
would be entitled for interest @ 9% per annum from date of Award till its realization. Issues No. 1
to 3 are answered accordingly.
Issue No. 4
24. On the plea of non-maintainability of the claim petition under Section 10 of the
Industrial Disputes Act, ld. Dy. D.A. representing respondent department has failed to allege in
reply in what manner petition is not maintainable. Thus, vague plea merits rejection outright.
Otherwise also, from pleadings and evidence on record, no inference of claim petition being not
maintainable could be raised against claimant/petitioner. This issue is decided in favour of
petitioner and against the respondent.
RELIEF
25. As sequel to my findings on foregoing issues, the respondent is hereby directed to pay
the compensation of Rs. 80,000/- (Rupees eighty thousand only) to the petitioner in lieu of the
reinstatement, back wages, seniority and past service benefits. Amount of compensation so
awarded will be paid by the respondent to the petitioner within four months from the date of receipt
of Award failing which the respondent shall be liable to pay the interest @ 9% per annum on the
said amount from the date of award till the date of its realization. In the peculiar circumstances of
the case, the parties are left to bear their own costs.
26. The reference is answered in the aforesaid terms.
27. A copy of this Award be sent to the appropriate Government for publication in the
official gazette.
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28. File, after due completion be consigned to the Record Room.
Announced in the open Court today this 4th day of October, 2017.
Sd/-
(K. K. Sharma)
Presiding Judge,
Labour Court-cum-Industrial Tribunal,
Kangra at Dharamshala, H.P.
___________
IN THE COURT OF SH. K. K. SHARMA, PRESIDING JUDGE, LABOUR COURT-CUM-
INDUSTRIAL TRIBUNAL, KANGRA AT DHARAMSHALA (H.P.)
Ref. No.
: 492/2015
Date of Institution
: 09-11-2015
Date of Decision
: 04-10-2017
Shri Tek Chand s/o Shri Tika Ram, r/o Village Kawas, P.O. Killar, Tehsil Pangi, District
Chamba, H.P.
. .Petitioner.
Versus
The Executive Engineer, Killar Division, H.P.P.W.D., Killar (Pangi), District Chamba, H.P.
. .Respondent.
Reference under Section 10 (1) of the Industrial Disputes Act, 1947
For the Petitioner
: Sh. Rajeev Dharmani, Adv.
For the Respondent : Sh. Sanjeev Singh Rana, Dy. D.A.
AWARD
The reference given below has been received from the appropriate Government for
adjudication:
“Whether the industrial dispute raised by the worker Shri Tek Chand s/o Shri Tika
Ram, r/o Village Kawas, P.O. Killar, Tehsil Pangi, District Chamba, H.P. before the
Executive Engineer, Killar Division, H.P.P.W.D., Killar (Pangi), District Chamba,
H.P. vide demand notice dated 04-01-2012 regarding his alleged illegal termination of
services during August, 2004 suffers from delay and laches? If not, whether
termination of services of Shri Tek Chand s/o Shri Tika Ram, r/o Village Kawas, P.O.
Killar, Tehsil Pangi, District Chamba, H.P. by the Executive Engineer, Killar Division,
H.P.P.W.D., Killar (Pangi), District Chamba, H.P. during August, 2004, without
complying the provisions of the Industrial Disputes Act, 1947, is legal and justified? If
not, what amount of back wages, seniority, past service benefits and compensation the
above aggrieved workman is entitled to from the above employer?”
2. On receipt of reference from appropriate government, notices were issued to the parties
in pursuance to which claimant/petitioner has filed statement of claim.
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3. Brief facts as enumerated in the present claim petition by the petitioner above named
revealed that he had been initially engaged as daily wage beldar on muster roll basis in the year
1997 who continuously worked till 2004 with the respondent. Averments made in the petition
further revealed that petitioner had worked for 160 days in each calendar year as per the criteria
prescribed for tribal area of Pangi Tehsil, District Chamba and became eligible for continuous
service envisaged under statutory provisions of Section 25-B of the Industrial Disputes Act, 1947
(hereinafter referred to as 'the Act' for brevity). Averments made in the petition revealed that the
services of petitioner had been interrupted by way of intermittent/artificial breaks given by the
respondent/department deliberately and as such breaks are required to be counted as 'continuous
services' for the purposes of calculation of 160 days for the applicability of Section 25-B of the Act.
The grievance of petitioner remains that respondent/department had terminated/disengaged
petitioner from daily wage service orally without issuing one month's notice in writing stipulating
therein reason for retrenchment besides no retrenchment compensation was paid to petitioner when
respondent had been illegally terminated. It is also alleged that respondent had not followed the
provisions of Section 25-F of the Act while disengaging petitioner from service. It is stated that
petitioner is very poor who has no source of income besides after termination of the services of
petitioner, petitioner had approached the respondent time and again but of no avail. The grievance
of petitioner further remains that when the services of petitioner had been terminated,
respondent/department had reengaged number of new workman from time to time and while doing
so, respondent had not followed the principle of 'Last come, First go' envisaged under Section 25-G
of the Act. It is further alleged that respondent/department had continuously retained junior to
petitioner who are still in service namely Suraj Ram who appointed in 1997, Chunku Ram in 2000,
Budhi Ram in 2003 and Dev Raj in 2007. The claimant/petitioner claimed that he had spotless
service record who never been charge-sheeted for any act of indiscipline or negligence or his
conduct and even at the time of verbal termination, no charge-sheet had been served upon him and
at the same time, no opportunity of hearing had been afforded to him. The petitioner also alleges
that he has remained unemployed ever since his illegal termination from year of 2004 till the date
of institution of present claim petition who had been nowhere gainfully employed and was thus
entitled for full back wages. Accordingly alleging respondent to have committed violation of
statutory provision of Section 25-F, Section 25-G and Section 25-H of the Industrial Disputes Act,
1947 and thus petitioner prays for setting aside oral order of termination/retrenchment of
respondent in the year 2004. He further prayed for reinstatement in service w.e.f. year 2004 along-
with back wages, seniority including continuity in service as petitioner as he had remained
unemployed since the date of his illegal termination. The petitioner has also prayed that period of
intermittent/fictional breaks deliberately given time and again during entire service of petitioner
between 1997 to 2004 be counted 160 days continuous service and to any other relief petitioner is
entitled and regularization of the services of petitioner w.e.f. 1-1-2004 under 10 years
regularization policy and to any other relief petitioner is entitled.
4. The respondent contested claim petition, filed reply inter-alia taken preliminary
objections of maintainability, claim petition being bad on account of delay and laches. On merits
denied that petitioner had worked for more than 160 days in each calendar year rather clarified by
stating that petitioner was engaged as daily waged beldar in 1997 who remained engaged till 2004
but had worked intermittently as petitioner used to come and attend the work at his own sweet will
and convenience. Relying upon the mandays chart, it has been categorically pleaded by the
respondent that petitioner had not completed 160 days in each calendar year as required for tribal
area of Pangi Tehsil. The allegations of fictional breaks given by respondent to the petitioner have
been specifically denied. In so far as engagement of persons junior to petitioner mentioned in para
no. 10 of the claim petition were appointed as per order of Labour Court and no other juniors to the
petitioner had been retained in service by the respondent. On the plea of termination of service of
petitioner, respondent specifically alleges that petitioner had left the job at his own will therefore
serving of notice or pay in lieu thereof was not required. Reiterating its stand respondent has
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maintained that petitioner had left the work of his own sweet will and the persons mentioned in
para No.10 are stated to have engaged as per direction of the Labour Court-cum-Industrial Tribunal
Dharamshala and respondent had not violated the principle of 'Last come, First go'. It is also
contended that if petitioner had been terminated in 2004 he would have definitely raised industrial
dispute immediately and that after thirteen years petitioner is stated to be agitating the matter which
is bad on account of delay and laches. It is also contended that since the services of petitioner had
not been terminated by the respondent, question of issuance of notice or wages in lieu thereof did
not arise and at the same time, there was no necessity for charge-sheet or issuing any notice of
petitioner after his termination. It is contended that petitioner was agriculturist and gainfully
employed and was thus not entitled for back wages.
5. The petitioner filed rejoinder, reiterated his stand as maintained in the claim petition.
Further asserted that provisions of Limitation Act did not eclipse the claim of petitioner in totality
besides allegation of violation of principle of 'Last come First go' was specifically denied.
6. In order to prove his case, petitioner had examined himself as PW1 tendered/proved
his affidavit Ex. PW1/A under Order 18 Rule 4 CPC, copy of demand notice Ex. PW1/B, copy of
order Ex. PW1/C and closed evidence. On the other hand, repudiating the evidence led by the
petitioner, respondent examined RW1 Shri D.R. Chauhan, the then Executive Engineer, HPPWD
Division Killar as RW1 tendered/proved mandays chart of petitioner Ex. RW1/B, Ex. RW1/C copy
of mandays chart of co-workers and closed the evidence.
7. I have heard the Ld. counsel of petitioner and Ld. Dy. D.A. representing respondent,
gone through records of the case carefully relevant for disposed of this case.
8. From the contentions raised, following issues were framed on 29-04-2016 for
determination:
1. Whether the industrial dispute raised by petitioner vide demand notice dated
04-01-2012 qua his termination of service during August, 2004 by respondent suffers
from the vice of delay and laches as alleged? If so, its effect?
...OPP.
2. Whether termination of the services of the petitioner by the respondent during August,
2004 is/was illegal and unjustified as alleged?
...OPP.
3. If issue No. 2 is proved in affirmative, to what service benefits the petitioner is entitled
to?
...OPP.
4. Whether the claim petition is not maintainable in the present form as alleged? ...OPR.
Relief.
9. For the reasons detailed here under, my findings on the above issues are as follows:—
Issue No.1: Discussed
Issue No. 2 : Yes
Issue No. 3 : Discussed
Issue No. 4 : No
Relief. : Petition is partly allowed awarding compensation of Rs. 85,000/- per operative part
of award.
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REASONS FOR FINDINGS
Issue No. 1 to 3:
10. All these issues have been taken up together for discussion being interconnected which
can be disposed of simultaneously without repetition of evidence.
11. Relationship of petitioner having been engaged as daily waged beldar by respondent on
muster roll basis in the year 1997 continuously worked till August, 2004 with the respondent is not
in dispute. Admittedly, petitioner was engaged without any written order or settlement of terms and
conditions by the respondent. It is equally not in dispute that no written order was passed while
terminating service of the petitioner as claim of respondent remains that it had not retrenched
petitioner from service who had abandoned the job of his own and used to work intermittently as
per his own wish and convenience. Admittedly, the reference of appropriate govt. does not relate to
plea of fictional breaks but only with regard to petitioner's termination from service. In the
backdrop of foregoing admitted facts on record, claim of petitioner requires to be adjudicated with
a view to determine if petitioner is entitled for relief of reinstatement and back wages along-with
seniority and past service benefits and compensation as claimed by him.
12. Stepping into witness box as PW1 has sworn in affidavit Ex. PW1/A reiterating and
reaffirming his pleadings as stipulated in claim petition. In his affidavit he has claimed to have
worked with the respondent/department for more than 160 days in Pangi Sub Division, Chamba
District and remained engaged from 1997 till August, 2004. He has also stated on oath that no
notice under Section 25-F of the Act was given by the respondent before terminating his service
and at the same time no compensation in lieu thereof notice period was paid to him and thus his
termination was illegal and void entitling petitioner benefit of reinstatement of service with full
back wages and all the other consequential service benefits. The petitioner has further alleged on
oath that respondent/department after terminating his services in August, 2004 by oral order had
engaged several co-workers who were junior to petitioner were retained in service. Not only this,
the persons who were junior to petitioner are stated to have been regularized in service and thus
respondent had not followed the mandate of Sections 25-G and 25-H of the Act which was
obligatory on its part. The case of petitioner also remains that he had served respondent with due
diligence and had spotless service record as respondent/department had never called any
explanation or raised charge-sheet against him but even while retrenching petitioner from service,
no notice was given. The petitioner has also explained reason for not approaching the authorities
under Labour Act and thereafter before this Tribunal and petitioner had moved before the Labour
Officer raising demand notice consequent upon which a failure report was submitted and as the
Labour Commissioner did not make reference for industrial dispute raised by petitioner, the
petitioner had moved before the Hon'ble High Court by filing CWP where direction was passed for
making reference to the Labour Court due to which delay had occurred and same was satisfactorily
explained.
13. In so far as plea of abandonment raised by respondent is concerned, the same merits
rejection in view of the fact that respondent had failed to produce any record by which it could be
established that whenever petitioner absented from his duty as also reflected in mandays chart Ex.
RW1/B any notice or letter was ever issued. On this point respondent as RW1 has specifically
admitted that whenever petitioner abandoned the job, no notice had been issued. RW1 specifically
admitted that no departmental inquiry was initiated against petitioner even after August, 2004. No
reason whatsoever has been assigned for such any action or omission on the part of respondent in
not initiating any departmental proceedings or making correspondence calling upon the petitioner
to join service. This prima facie belies the stand taken by the respondent as abandonment has to be
proved like any other fact in issue. The petitioner, on the other hand, as PW1 in cross-examination
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has specifically denied that he used to leave the job in between and attended the work intermittently
rather he has claimed that intermit breaks had been deliberately given to him by the respondent in
the service record of petitioner so that petitioner did not complete 160 days of work as required for
Pangi Tehsil area and also for applicability of Section 25-B of the Act. As such, in absence of any
specific and reliable evidence led by respondent, it would be unsafe to hold that respondent had
established plea of abandonment.
14. A bare glance on the mandays chart Ex. RW1/B would reveal that petitioner had
worked for 148 days in the year 1997, 160 days in 1998, 76 days in 1999, 103 days in 2000, 45
days in 2001, 134 days in 2003 and 84 days in 2004 and thus a total of his service in 1997 to 2004
in 07 years he had worked for 750 days in his entire service period. Be it noticed that except the
years 1997 and 1999 to 2004 petitioner had worked for more than 160 days and as there is no
reference from the Labour Commissioner, Shimla on the point of artificial breaks, this court is to
confine its findings only with regard to alleged illegal termination. It is evident from mandays chart
Ex. RW1/B that in the year 2004 the petitioner had merely worked for 84 days and thus
immediately in preceding 12 calendar months from the month of termination of petitioner had not
rendered service of 160 days so as to meet requirement of law of having continuous service of one
year and thus it was not at all required from respondent to have issued a notice envisaged under
Section 25-F of the Act. As such, the respondent is held to have not violated the provisions of
Section 25-F of the Act.
15. Ld. Counsel for petitioner has contended with vehemence that large number of workers
who were junior to petitioner had been appointed and these workers have been retained in service
and regularized. The grievance of petitioner remains that principle of 'Last come First go' was not
followed as the juniors were retained and services of petitioner despite being senior was terminated
without any valid reason. Ex. RW1/C is the year-wise mandays of daily waged workers who were
junior to the petitioner and had joined in the year 1997 or thereafter. All of these co-workers shown
in Ex. RW1/C the year-wise mandays details of workers of Division HPPWD Killar were certainly
junior to petitioner who were given sufficient work existing in those years more than 200 days in a
year whereas the petitioner had been not given muster roll for the whole month. Ex. RW1/C also
established that all the co-workers shown in this document have worked for more than 160 days in
most of the years although they were junior to petitioner. Evidently, there is no iota of evidence of
respondent establishing that petitioner was called upon to join for service at any time after 2004
even at the time when junior persons were reengaged. That being so the respondent had certainly
violated the provisions of Section 25-G of the Act as the juniors workers mentioned in para No.10
of the affidavit were retained whereas petitioner was senior from these co-workers having joined
service in 1997 was terminated and even thereafter respondent omitted to afford opportunity to
petitioner for re-employment for work which also violates the provisions of Section 25-H of the
Act. Ld. counsel for petitioner has placed reliance upon judgment of Central Bank of India vs. S.
Satyam, 1996 (5) SCC 419 in which Hon'ble Apex Court has held that for the applicability of
Section 25-G and 25-H of the Act, there was no necessity of claimant/petitioner to have worked
for 240 days as in case of provisions of Section 25-F of the Act.
16. Ld. Dy. D.A. representing respondent has made futile attempt to justify engagement
junior worker and their retention in service in pursuance to Awards passed by Labour Court. On the
other hand, Ld. Counsel for petitioner relied upon Ex. PW1/C the order dated 27.8.2015 of Hon'ble
High Court of H.P. vide which the orders qua termination passed as against respondent and several
other were quashed. That being so the relief was granted in favour of the petitioner who was
directed to be reinstated with others. As such, even when petitioner is proved to have not worked
for more than 160 days in preceding 10 years which entitled him for regularization of his service
per government policy, yet respondent is not absolved from its accountability for complying the
provisions of Sections 25-G and 25-H of the Act and as such, it is held that respondent had violated
the provisions of Sections 25-G and 25-H of the Industrial Disputes Act.
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17. Ld. Counsel for petitioner has contended that after petitioner's termination in August,
2004, he had remained unemployed and was not earning anything thereafter as such was entitled
for full 'term gainfully employment would also include self employment wherefrom income is
generated. It was income either from employment in an establishment or from self
employment merely differentiates the sources from which income is generated, the end use
being the same'. Applying the ratio of judgment of 2007 (supra) to this case since the petitioner
was earning from his agricultural and manual pursuits, the same were sufficient to maintain him
and his family. It is thus held that petitioner was gainfully employed. Be it stated here that Hon‟ble
Apex Court in Deepali Gundu Surwase's case has held that the Labour Court was not justified in
holding that merely because the respondent was receiving agriculture income, he cannot be treated
to be engaged in gainful employment. Since the petitioner had income from agriculture pursuits for
his livelihood it cannot be stated that petitioner was not gainfully employed and thus would not be
entitled full back wages. In view of the forgoing discussion, it is held that the relationship of
workman and employer existed between petitioner and respondent and that petitioner was illegally
retrenched without compliance of Section 25-G and Section 25-H of the Act although remained
gainfully employed after his retrenchment. Thus, applying the ratio of judgment of Hon'ble Apex
Court (2007 supra), it may not be erroneous to hold that petitioner was gainfully employed and
thus would be not entitled for back wages for the period he was out of job on being terminated by
the respondent.
18. Lastly, Ld. Dy. D.A. for State has contended with vehemence that there is inordinate
and explained delay which disentitles petitioner relief claimed for by him. On the other hand, Ld.
Counsel for the petitioner has relied upon the judgment of Hon'ble Apex Court titled Raghubir
Singh vs. General Manager, Haryana Roadways, Hissar reported in 2014 Lab IC 4266 (SC)
and the relevant paras of the judgment are produced below for reference:
“12. Therefore, in our considered view, the observations made by this Court in the
Rajasthan State Agriculture Marketing Board case (supra) upon which the Learned
Additional Advocate General for the State of Haryana has placed reliance cannot be
applied to the fact situation of the case on hand, for the reason that the Labour Court
has erroneously rejected the reference without judiciously considering all the relevant
factors of the case particularly the points of dispute referred to it and answered the 2nd
issue regarding the reference being barred by limitation but not on the merits of the
case. The said decision has no application to the fact situation and also for the reason
the catena of decisions of this Court referred to supra wherein this Court has
categorically held that the provisions of Limitation Act under Article 137 has no
application to make reference by the appropriate government to the Labour
Court/Industrial Tribunal for adjudication of existing industrial dispute between
workmen and the employer.
13. In the case on hand, no doubt there is a delay in raising the dispute by the
appellant; the Labour Court nevertheless has the power to mould the relief
accordingly. At the time of adjudication, if the dispute referred to the Labour
Court is not adjudicated by it, it does not mean that the dispute ceases to exist.
The appropriate government in exercise of its statutory power under Section 10(1)(c)
of the Act can refer the industrial dispute, between the parties, at any time, to either the
jurisdictional Labour Court/Industrial Tribunal as interpreted by this Court in the Avon
Services case referred to supra. Therefore, the State Government has rightly exercised
its power under Section 10(1)(c) of the Act and referred the points of dispute to the
Labour Court as the same are in accordance with the law laid down by this Court in
Avon Services & Sapan Kumar Pandit cases referred to supra.
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14. Further, the workman cannot be denied to seek relief only on the ground of delay
in raising the dispute as held in the case of S.M. Nilajkar & Ors. v. Telecom
District Manager, Karnataka[4] it was held by this Court as follows.
“17. It was submitted on behalf of the respondent that on account of delay in raising
the dispute by the appellants the High Court was justified in denying relief to the
appellants. We cannot agree...... in Ratan Chandra Sammanta and Ors. v. Union of
India and Ors. (supra)1993 AIR SCW 2214, it was held that a casual labourer
retrenched by the employer deprives himself of remedy available in law by delay itself,
lapse of time results in losing the remedy and the right as well. The delay would
certainly be fatal if it has resulted in material evidence relevant to adjudication being
lost and rendered not available. However, we do not think that the delay in the case at
hand has been so culpable as to disentitle the appellants for any relief.....” (Emphasis
laid by the Court). In view of the legal principles laid down by this Court in the above
judgment, the reference of the industrial dispute made in the case on hand by the State
Government to the Labour Court to adjudicate the existing industrial dispute between
the parties was made within a reasonable time, considering the circumstances in which
the workman was placed, firstly, as there was a criminal case pending against his and
secondly, the respondent had assured the workman that he would be reinstated after his
acquittal from the criminal case. Moreover, it is reasonable to adjudicate the industrial
dispute in spite of the delay in raising and referring the matter, since there is no
mention of any loss or unavailability of material evidence due to the delay. Thus, we
do not consider the delay in raising the industrial dispute and referring the same to the
Labour Court for adjudication as gravely erroneous and it does not debar the workman
from claiming rightful relief from his employer.
15. In the case of Ajaib Singh v. The Sirhind Co-operative Marketing-cum-Processing
Service Society Limited & Anr.[5] this Court has opined that relief cannot be denied to
the workman merely on the ground of delay, stating that:—
“10. It follows, therefore, that the provisions of Article 137 of the Schedule to
Limitation Act, 1963 are not applicable to the proceedings under the act and that the
relief under it cannot be denied to the workman merely on the ground of delay. The
plea of delay if raised by the employer is required to be proved as a matter of fact by
showing the real prejudice and not as a merely hypothetical defence. No reference to
the labour court can be generally questioned on the ground of delay alone. Even in a
case where the delay in shown to be existing, the tribunal, labour court or board,
dealing with the case can appropriately mould the relief by declining to grant back
wages to the workman till the date he raised the demand regarding his illegal
retrenchment/ termination or dismissal. The Court may also in appropriate cases direct
the payment of part of the back wages instead of full back wages.....” (Emphasis laid
by the Court).
16. Hence, we are of the opinion, having regard to the fact and circumstances of the case
that there is no delay or latches on the part of the workman from the date of his
acquittal in the criminal case. Thereafter, upon failure of the respondent in adhering to
the assurance given to the workman that he would be reinstated after his acquittal from
the criminal case, the workman approached the conciliation officer and the State
Government to make a reference to the Labour Court for adjudication of the dispute
with regard to the order of dismissal passed by the respondent. Keeping in mind the
date of acquittal of the appellant and the date on which he approached the conciliation
officer by raising the dispute, since the respondent had not adhered to its assurance, the
State Government had rightly referred the dispute for its adjudication. Therefore it
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cannot be said that there was a delay on the part of the appellant in raising the dispute
and getting it referred to the Labour Court by the State Government.
17. Further, the Labour Court on an erroneous assumption of law framed the
additional issue regarding the limitation in raising the dispute and its reference
by the State Government to the Labour Court. Thus, the Labour Court has ignored
the legal principles laid down by this Court in the cases referred to supra. The award
passed by the Labour Court was accepted erroneously by both the learned single Judge
and the Division Bench of the High Court by dismissing the Civil Writ Petition & the
Letters Patent Appeal without examining the case in its proper perspective, keeping in
view the power of the State Government under Section 10(1)(c) and the object and
intendment of the Act. Not adjudicating the existing industrial dispute on merits
between the parties referred to it may lead to disruption of industrial peace and
harmony, which is the foremost important aspect in Industrial Jurisprudence as the
same would affect the public interest at large.
19. Ld. Dy. D.A. representing respondent department has also contended with vehemence
that claim petition is barred by limitation on account of delay and laches. It has been pointed that
termination of petitioner in this case took place on 2004 and the industrial dispute was raised after
several years of retrenchment. Repudiating the argument by Ld. Counsel, Ld. AR for the petitioner
has placed reliance upon judgment reported in 2007 LHLJ 903 Hon'ble High Court of H.P.
(Bhatag Ram's case) in which it has been held that delay in raising dispute may be considered by
court at the time of granting final relief however in various other judgments even longer delay has
been condoned. In Divisional Manager, HPFC & another vs. Garibu Ram, Latest HLJ 2007
(HP) 1160, delay of more than 10 years was condoned besides Hon'ble High Court has held that
principle of Limitation Act is not applicable to the industrial dispute. Similar view was taken by
Hon'ble Apex Court in Ajayab Singh vs. Sirhind Co-operative Marketing-cum-Processing
Society Limited and Another, (1999) 6 SCC 82 in which it has been held that the principle of
Limitation Act, 1963 did not apply to the proceeding under the Industrial Disputes Act.
20. Relying upon the aforestated judgment, it has been contended that claim of petitioner
cannot be defeated on the point of delay and laches. Repudiating arguments advanced by Ld.
Counsel for petitioner, Ld. Dy. D.A. has placed reliance upon the judgment of Hon'ble Apex Court
titled as Assistant Engineer, Rajasthan State Agriculture Marketing Board, Sub-Division
Kota and Mohan Lal [2013 (139) FLR 125], the relevant para of the judgment are produced
below for reference:
Industrial Disputes Act, 1947-Sections 25-F and 10-Limitation Act, 1963-Section 5-
Industrial Dispute-Termination of service-Finding of Labour Court that workman had
completed 240 days in calendar year and her termination was in violation of Section
25-F of the I.D. Act- Workman worked from 1-11-1984 to 17-2-1986 in all 286 days
during employment. her services terminated on 18-2-1986. Industrial dispute raised
after 6 years of termination. Admitted delay of 6 years not kept in view by the Labour
Court- Judicial discretion exercised by the Labour Court flawed and unsustainable.
Reinstatement of the workman not the appropriate relief. In lieu of reinstatement
compensation of Rs.one lac directed to be paid to the workman by the appellant
employer within six weeks failing which interest @ 9% p.a. will be payable.
[Paras 21 and 22]
Limitation Act, 1963. Section 5-Industrial Disputes Act, 1947-Section 25-F-
Termination of service- Industrial dispute raised after six years- Limitation Act not
applicable to reference made under the I.D. Act-Delay in raising industrial
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disputes definitely an important circumstances which the Labour Court must
keep in view before granting relief.
21. Repudiating the arguments by Ld. Dy. D.A. for the State, Ld. Counsel for
claimant/petitioner has relied upon the judgment of Hon'ble Apex Court in case titled as Tapash
Kumar Paul vs. BSNL & another reported in AIR 2015 SC 357 wherein Hon'ble Court held that
a Court may pass an order of reinstatement by awarding compensation but the same has to be based
on justifiable grounds. In this judgment, it was held that compensation can be granted in a situation
where the industry is closed or that employees has superannuated or going to retire shortly and no
period is left to his credit or where workman has been rendered in capacitated to discharge duties
cannot be reinstated and/or fourthly when he has lost confidence of the management to discharge
duties. It was observed that there may be appropriate cases on facts which may justify substituting
an order of reinstatement by award of compensation but that has to be supported by some legal
and justifiable reasons indicating why the reinstatement should be followed to be substituted
by award of compensation. Ld. Counsel for the petitioner with the aid of above-said judgment had
argued that there are only four situations when a worker may be awarded compensation instead of
reinstatement but the judgment has certainly not been correctly appreciated by Ld. Counsel as this
judgment postulates probable four situations which are illustrate in nature where compensation may
be awarded instead of reinstatement but that does not mean that except the four grounds, no other
ground would be appropriate for awarding compensation. In the case in hand before this court, it
has come that petitioner had abandoned the job who did not report for duty for several years and
later gave notice requesting for joining of duties but the conditions in para No.5 of judgment (2015
supra) even if not met requirement, cannot be a ground to reinstate the petitioner and it is only
compensation which would be appropriate relief. Ld. Counsel for the petitioner has relied upon the
judgment of Hon'ble Apex Court titled as Deepali Gundu Surwase vs. Kranti Junior Adhyapak
Mahavidyalaya (D.Ed.) and Ors. reported in AIR 2014 SC (Supp) 121, Raghubir Singh vs.
General Manager, Haryana Roadways, Hissar reported in 2014(3) Apex Court Judgments 652.
I have gone through these judgments and of view that they don't come to rescue the petitioner on
point of reinstatement instead of compensation. Ld. Dy. D.A. for State on the other hand has relied
upon the judgment of Hon'ble Apex Court in Vice Chancellor, Lucknow University, Lucknow,
Uttar Pradesh v. Akhilesh Kumar Khare & another reported in AIR 2015 SC 3473. It has been
contended that engagement of claimant/petitioner in this case was not through regular mode of
recruitment and applying the ratio of this judgment AIR 2015 SC supra, claim of petitioner for
reinstatement can be negated and thus compensation would be sufficient for redressal of grievance
of the claimant/petitioner. Similarly, in 2016 (1) Him. L.R. 502 titled as State of Himachal
Pradesh and another vs. Chaman Singh relied by Ld. AR for petitioner interpretation of Section
137 of Limitation Act was involved which provides that Article 137 of Limitation Act did not apply
to industrial disputes. In 2014 (3) Apex Court Judgment 652 (SC) similar view was reiterated
which clearly mandates that claimant/petitioner cannot be denied relief sought for merely on the
ground of delay and laches. That being so, the law remains as it was that ground of delay and
laches, claimant/petitioner cannot be denied relief rather the court has to consider various aspects
before moulding relief and the case in hand it would not be erroneous to mention here that the
claimant/petitioner can be reasonably indemnified by ordering compensation and not by
reinstatement. In so far as judgment of AIR 2015 SC 1373 titled as Mackinon Machenize &
Company Ltd. vs. Mackinon Employees Union is concerned, the Hon'ble Apex Court has held
on closure of unit of company principle of 'Last come First go was not followed which violated
Section 25-G of Industrial Disputes Act and retrenchment was held illegal entitling petitioner for
retrenchment compensation. Since the facts of case of Mackinon Machenize's case are different
from case in hand as in former closure of unit of company was involved whereas in case in hand
before this court, there is no closure of company rather it is the department of HPPWD which had
engaged petitioner without following of the procedure although subject to funds and availability of
work. As such, when there is no closure of any unit by respondent which the petitioner was
engaged, judgment of Mackinon Machenize cannot be made applicable.
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22. After hearing the rival contentions of the parties and case law relied by them, it can be
safely concluded that delay in raising industrial dispute is certainly important aspect/circumstance
which court has to keep in mind while exercising discretion. In para Nos. 20 and 21 of the
judgment as referred to in this case reported in 2013 (136) FLR 893 (SC) titled as Assistant
Engineer Rajasthan Development Corporation and another vs. Geetam Singh provides that
before exercising its judicial discretion, the Labour Court or Tribunal has to keep in mind all
relevant factors including the mode and manner of appointment, nature of employment, length of
service, the ground on which termination has been set aside and delay in raising industrial dispute
before grant of relief. It was observed by the Hon'ble Apex Court in judgment (2013 supra) before
that workman had worked for 286 days and had raised industrial dispute in 1992 whereas her
services have been terminated in 1986 and she raised industrial dispute after six years. The Hon‟
ble Apex Court has held that though compensation awarded by Single Judge of the Hon'ble High
Court was too low and liable to be enhanced by the Division Bench but surely reinstatement of
the workman in the facts and circumstances is not the appropriate relief and thus Hon'ble
Apex Court awarded a lump-sum of Rs.1 lakh alongwith interest @ 9% per annum if the
respondent failed to make payment of compensation within six weeks from the date of judgment. In
the case in hand before this court factors which have weighed are that the petitioner in all remained
engaged for about 07 years and actually worked for 750 days as per mandays chart on record and
that the services of petitioner were disengaged in the year 2004 who worked as non skilled worker
and had raised industrial dispute by issuance of demand notice after about eight years i.e. demand
notice was given on 04-01-2012. Taking into consideration factors mentioned above in pursuance
to judgments of Hon'ble Apex Court referred to above, petitioner would not be entitled either for
reinstatement or for back wages but a lump-sum compensation would be appropriate relief in view
of judgment 2013 (139) FLR 25 (SC). The judgments relied upon by Ld. Counsel for petitioner on
the matter of delay and laches is more or less settled law that claim of the petitioner could not be
solely declined on the ground of delay and laches. Similarly, judgment of Hon'ble Apex Court in
2014 titled as Raghubir Singh's case also does not come to the rescue of the petitioner as in this
judgment also the Hon'ble Apex Court has reiterated the mandate as given by the Hon'ble Apex
Court in previous judgment in the year 2013 i.e. Assistant Engineer, Rajasthan State
Agriculture Marketing Board, Sub-Division Kota and Mohan Lal's case. I have gone through
these judgments which are not attracted in this present case as this court not declining relief to the
petitioner on the ground of limitation rather on the basis of guidelines of Hon‟ble Apex Court laid
down in judgment of 2013 as referred to above. Ld. Dy. D.A. representing State/respondents has
relied upon the judgment of Hon'ble Apex Court reported in AIR 2016 SC 2984 titled as
Prabhakar v. Joint Director Sericulture Department and another. I have gone through the
judgment which deals reference under Section 10 of the Industrial Disputes Act in which it has
been held that Hon'ble High Court can intervene in writ jurisdiction under Article 226 when
reference has been challenged on the ground of inordinate unexplained delay. Since the reference
made by the Government in this case is not in challenge before this Court, the above said judgment
would not be attracted in the facts and circumstances of the case. Moreso in view of observation
qua facts made in judgment (2016) supra, claimant/petitioner was found to be an educated person
who was working as Clerk whereas in case before this Court, the petitioner is an illiterate unskilled
worker. For the above-said reasons, plea of delay and laches would not eclipse claim of petitioner.
23. In view of foregoing discussion, a lump-sum compensation of Rs. 85,000/- (Rupees
eighty five thousand only) would be an appropriate relief to which the petitioner is entitled in the
facts and circumstances of the case as stated above. It is further made clear that amount of
compensation shall be paid within four months from the date of receipt of Award failing which the
petitioner would be entitled for interest @ 9% per annum from the date of Award till its realization.
Issues No. 1 to 3 are answered accordingly.
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Issue No. 4 :
24. On the plea of non-maintainability of the claim petition under Section 10 of the
Industrial Disputes Act, Ld. Dy. D.A. representing respondent department has failed to allege in
reply in what manner petition is not maintainable. Thus, vague plea merits rejection outright.
Otherwise also, from pleadings and evidence on record, no inference of claim petition being not
maintainable could be raised against claimant/petitioner. This issue is decided in favour of
petitioner and against the respondent.
RELIEF
25. As sequel to my findings on foregoing issues, the respondent is hereby directed to pay
the compensation of Rs. 85,000/- (Rupees eighty five thousand only) to the petitioner in lieu of the
reinstatement, back wages, seniority and past service benefits. Amount of compensation so
awarded will be paid by the respondent to the petitioner within four months from the date of receipt
of Award failing which the respondent shall be liable to pay the interest @ 9% per annum on the
said amount from the date of award till the date of its realization. In the peculiar circumstances of
the case, the parties are left to bear their own costs.
26. The reference is answered in the aforesaid terms.
27. A copy of this Award be sent to the appropriate Government for publication in the
official gazette.
28. File, after due completion be consigned to the Record Room.
Announced in the open Court today this 4th day of October, 2017.
Sd/-
(K. K. Sharma)
Presiding Judge,
Labour Court-cum-Industrial Tribunal,
Kangra at Dharamshala, H.P.
—————
IN THE COURT OFSH. K. K. SHARMA, PRESIDING JUDGE, LABOUR COURT-CUM-
INDUSTRIAL TRIBUNAL, KANGRA AT DHARAMSHALA (H.P.)
Ref. No.
: 435/2015
Date of Institution : 05-10-2015
Date of Decision
: 07-10-2017
Shri Anchal Goswami s/o Shri Sushil Goswami, r/o Village Habibpur, P.O. Kawari, Tehsil
Nagrota Bagwan, District Kangra, H.P.
. .Petitioner.
Versus
1. The Mission Director, National Health Rural Mission, Government of Himachal
Pradesh, Shimla.
2. The Employer/Manager, M/s GVK EMRI, J P Motors Building, Village Anji, Barog
Bye Pass Solan, District Solan, H.P. (Work Office) through its Executive Officer.
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3. The Managing Director, M/s Adecco India Private Limited, No. 2, NAL Wind Tunnel
Road, Murugeshpalya, Bangalore (Corporate Office).
Reference under Section 10 (1) of the Industrial Disputes Act, 1947
For the Petitioner
: Sh. Madan Thakur, Adv.
Sh. Rajinder Thakur, Adv.
For the Respondent No. 1
: Sh. Sanjeev Singh Rana, Dy. D.A.
For the Respondent No. 2
: Sh. Rajat Sahotra, Adv.
For the Respondent No. 3
: Sh. Manish Katoch, Adv.
AWARD
The reference given below has been received from the appropriate Government for
adjudication:
“Whether termination of the services of Shri Anchal Goswami, s/o Shri Sushil
Goswami, r/o Village Habibpur, P.O. Kawari, Tehsil Nagrota Bagwan, District
Kangra, H.P. vide letter dated 04-08-2014 by (i) the Mission Director, National Health
Rural Mission, Government of Himachal Pradesh, Shimla, (ii) the Employer/Manager,
M/s GVK EMRI, J P Motors Building, Village Anji, Barog Bye Pass Solan, District
Solan, H.P. (Work Office), (iii) the Managing Director, M/s Adecco India Private
Limited, No. 2, NAL Wind Tunnel Road, Murugeshpalya, Bangalore (Corporate
Office), without complying with the provisions of the Industrial Disputes Act, 1947, is
legal and justified? If not, than whether the workman is entitled to re-engagement with
the above mentioned employer along with back wages and consequential benefits?”
2. On receipt of reference from appropriate government, notices were issued to the parties
in pursuance to which claimant/petitioner has filed statement of claim.
3. Brief facts as stipulated in the claim petition revealed that State of H.P. had started
emergency medical services in the year 2010 to improve the health care being provided to needy
people in the entire State of H.P. in particular emergency condition to the general public besides
emergency response No.108. It is alleged that with a view to achieve of its goal, Government of
H.P. had entered into 'Public Private Partnership Agreement' dated 9.7.2010 (hereinafter called the
on agreement for brevity) with respondent No.2 M/s GVK Emergency Management and Research
Institute (hereinafter called GVK EMRI for brevity) and was fully financed by grant-in-aid released
by the Government of H.P. The claimant/petitioner is alleged to have been engaged initially as
trainee vide letter dated 11-2-2011 & had undergone training for 45 days at GVK-EMRI, TB
Sanatorium Dharampur, District Solan with respondent No.2 and thereafter vide letter dated 3rd
April, 2011 respondent no.3 M/s. Adecco India Pvt. Ltd. had issued letter of appointment to
claimant/petitioner as Emergency Medical Technician (hereinafter called for short as EMT for
brevity) initially for a period of one year on contract w.e.f. 3-4-2011 to 3-4-2012 however petitioner
was posted with GVK EMRI Kangra. Averments made in the claim petition further revealed that
petitioner was appointed for a period of one year but contract was to be renewed periodically which
was duly renewed from time to time and thus petitioner was in continuous service of the
respondents No. 2 and 3 but during subsistence of his services as EMT, on 22-8-2013
claimant/petitioner had got another letter of appointment dated 22-8-2013 from respondent No.2 for
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one year which was come to an end on 21-8-2014. It is also alleged that during his service period,
claimant/petitioner had been awarded certificate(s) for appreciation on 25-11-2012, July 2013,
September, 2014, October, 2013 and March, 2014 by respondent No.2 which had been endorsed by
respondent No.1 who also countersigned appreciation certificates alongwith respondent No.2. Not
only this, work of claimant/petitioner was highlighted in the official magazine EMCARE published
by respondent No.2 which establishes that petitioner had served the respondents and public with
full devotion. The grievances of the petitioner remains that during the subsistence of service
contract, claimant/petitioner received a letter dated 4-8-2014 and 13-8-2014 issued by respondent
No.2 whereby he was intimated about non-renewal of fixed term contractual employment of
petitioner whereupon claimant/petitioner had made representation on 14-8-2014 and subsequent
reminder letter dated 20-8-2014 to respondent No.2 for renewal of contract but the same yielded no
result. It is further stated that respondent No.2 after issuing the above said letter to
claimant/petitioner also acted in unreasonable manner by issuing another letter dated 24-7-2014
which was a warning letter in which false allegations had been levelled against the petitioner to
which petitioner submitted reply and explained his position stipulating therein petitioner had
always discharged his duties sincerely and faithfully and allegations levelled against the petitioner
were totally false. It is also averred in the claim petition that another letter dated 23-7-2014 for
violations of certain rules of respondent company was sent by registered letter which had been
despatched on 2.8.2014 and thus the claimant/petitioner alleges to have stated that respondent had
made antedating warning letter so as to justify its subsequent act by not renewing contract of
employment vide letter dated 4-8-2014. Averments made in the claim petition further revealed that
in his reply to letter issued by respondent No.2, the petitioner has consistently maintained to have
attended two patients on the relevant dates mentioned in the warning letter and thus petitioner
alleges to have not violated any rules mentioned in it. It further transpires from the petition that
petitioner had discharged his duties sincerely and faithfully besides services of EMTs were still
required by respondent No.2 but the contract of service of petitioner had been illegally with ulterior
motive was not renewed without any valid reason on the basis of false allegations.
4. The claim petition further reveals that the respondent No.2 taking undue advantage of
Clause 1.1.1. sub-clause (a) of Agreement dated 9-7-2010 entered into between State of Himachal
Pradesh and respondent No.2 whereby State of Himachal Pradesh had agreed for complete
autonomy and operational freedom to respondent No.2 and that Clause in question specifically
stipulated “selection, hiring, appraisals, transfers and termination/dismissal of staff from HR
agencies, preparation of training procedures, all employees of GVK EMRI will be appointed on
contract and the duration of the contract (not more than five years) will be clearly mentioned so that
there is no long term obligation for employment. The contract with the employees shall be liable to
be terminated by giving two months notice by either side”. It is alleged that under the agreement
in recitals, day-to-day functioning of respondent No. 2 was to be supervised by the Advisory Board
consisting of three members from respondent No.2, three nominees of Government of H.P. which
showed that every function of respondent No.2 was to be supervised by the Government of H.P. so
that respondent No.2 did not exploit unemployed youth who dedicated to work in emergency. It is
further stated that respondent No. 2 has not only acted in arbitrary manner but also violated its own
rule stipulated in Clause 1.1.1 wherein it has been specified that the services of employee shall be
liable to be terminated by giving two months notice by either side. It is alleged that concocted
complaint against claimant/petitioner was done with the object to remove the petitioner from
service and thus action of respondent was manifestly punitive in nature and same had been done in
the violation of principles of natural justice. It further transpires from petition that petitioner
aggrieved with the act of respondents had filed CWP No. 6406/2014 in which Hon'ble High Court
vide its order dated 9-4-2015 permitting petitioner to raise industrial dispute by issuing demand
notice in pursuance to which petitioner had issued demand notice dated 29-4-2015 to respondents.
It is alleged that Hon'ble High Court vide order dated 9-4-2015 has specifically ordered that in the
interest of justice and looking into that claimant/petitioner and others were working on meager
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salaries, the employer had been directed not to terminate the service of applicant/petitioner and
other co-petitioners of CWP No.1583/2014 who had not completed contractual period. It transpires
from the claim petition that employer had been further directed by Hon'ble High Court that in case
fresh hands were engaged, the claimant/petitioner shall be given preference in view of provisions of
Section 25-H of the Industrial Disputes Act but despite that the respondent No. 2 has ignored the
directions passed by the Hon'ble High Court and recruited 82 EMTs between 1-8-2014 to
12-9-2015 details of which had been obtained by the petitioner under RTI Act 2005. It is alleged
that the service of petitioner was permanent in nature and the services of petitioner as EMT was
always and continuously required by the respondent No.2 but the services of petitioner had been
terminated in gross violation of Agreement dated 9-7-2010 between Government of H.P. and
respondent No.2 and provisions of Industrial Disputes Act. It is alleged that partnership agreement
between the respondents is still existing and that emergency medical services are still continuing
and were required and the same project/scheme was permanent in nature and the act of the
respondents was stated to be discriminatory, unconstitutional and in violation of provisions of
Industrial Disputes Act and accordingly letters dated 4-8-2014 qua non-renewal of contractual
employment of petitioner and warning letter dated 24-7-2014 issued by the respondent No.2 have
been prayed to be quashed and petitioner is entitled to be reinstated as EMT with all consequential
benefits i.e. seniority and arrears of pay/wages etc.
5. The respondent No.1 Mission Director, National Health Rural Mission, Govt. of H.P.
contested claim petition, filed reply inter-alia taken preliminary objections of maintainability,
cause of action. On merits stated that Emergency Ambulance Service was run by the State of H.P.
in the name of H.P. Atal Swasthya Seva (108) and had thereafter renamed as National Ambulance
Service (108) being run by State of H.P. in the interest of patient care and public at large under the
public private partnership mode through GVK-Emergency Management and Research Institute
(GVK-EMRI) i.e. respondent No. 2 for which an agreement as well as Agreement/ MOU dated 9-7-
2010 had been entered with respondent No. 2 besides that the scheme was funded by the State
Government. It is further stated by respondent No.1 that the ambulance procured under the Atal
Swasthya Sewa had been registered in the name of Director Health Services, H.P. so as to keep the
assets with the Government of H.P. as agreement dated 9-7-2010 under public private partnership
between government and respondent No. 2 was for a limited period initially for five years which
could be terminated by either party as per terms of the agreement and thus registration of
ambulance in the name of Director Health Services, HP was got done with the boanfide reasons so
assets of govt. such as vehicles in ERS remained in its control. It is also stated that M/s. GVK-
EMRI respondent No.2 had further entered into agreement with M/s. Adecco Flexion Workforce
Solutions Private Limited respondent No. 3 for hiring of manpower and staff to run initially Atal
Swasthya Seva and later the National Ambulance Scheme on certain specific terms and conditions
besides maintained that respondent No. 1 was not the principal employer however respondent No.2
was the principal employer as has also been referred in Certificate of Registration issued by Labour
Department, H.P. The plea of respondent no.1 further remains that while providing autonomy and
operational freedom to GVK EMRI vide clause 1.1.0 of MOU dated 9-7-2010 respondent no.2 it
was specifically observed that there shall be operational freedom and autonomy which included
amongst other things in respect of following-“selection, hiring, appraisals, transfers and
termination/dismissal of staff, freedom to avail the staff from HR agencies, preparation of training
procedures”. It is further alleged that if there was any violation of above conditions or there was
ever exploitation of youth by the respondent No.1 claimant/petitioner be called upon to prove the
same. It is further alleged that MOU/agreement entered into between the parties the basic facilities
and infrastructure was to be provided by Govt. of H.P. for which needful instructions had been
issued to the concerned sub offices by the department vide letters dated 22-1-2011 and 2-9-2011. It
further remains the case of respondent No.1 that the services of petitioner had never been
terminated by it besides maintained that petitioner had been gainfully employed after non-renewal
of contractual service agreement. As such, there was no cause of action of petitioner/claimant as
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against respondent No. 1. Accordingly, petition has been sought to be dismissed. The reply of
respondent no.1 is supported by an affidavit sworn in by respondent No. 1.
6. The respondent No.2 GVK EMRI contested claim petition, filed separate reply
inter-alia taken preliminary objections of maintainability, cause of action, locus standi, suppression
of material facts. On merits admitted that claimant/petitioner was appointed initially as a trainee
who had undergone training for 45 days with respondent No.3. It is alleged that as a matter of fact,
petitioner was appointed by respondent no.3 as EMT and not by the respondent No. 2 for period of
one year as the name of petitioner existed on the rolls of respondent No. 3 which was providing
manpower resources under control and supervision to respondent No. 2. Admitted that on
22-8-2013 in reference to the fresh interview and discussions with the claimant/petitioner, the
respondent No.2 had issued a contractual letter of appointment to the petitioner for a period of one
year was to automatically come to an end on 21-8-2014 which had been accepted by petitioner by
signing the said appointment letter. It is denied that petitioner had discharged his duties with full
devotion rather he was found to have committed severe and gross misconducts as he absented from
his job without prior intimation and sanction from his superiors. It is alleged that petitioner has not
been not only found guilty of misconduct levelled against him but had also abused his colleagues
misbehaved on duty and when petitioner was asked to explain his ill behaviour, he had misbehaved
with staff and wrote false and frivolous complaints against them to the Head office of respondent
No. 2. It is alleged that petitioner was issued show cause notice several times and was asked to
explain his misconduct but of no avail. It is alleged that certificate of appreciation had been issued
by respondent No. 2 to the petitioner to motivate him to be a good employee and to encourage the
petitioner to avoid his habit of misbehavour with his colleagues and senior officials and be diligent
in his duty. Further admitted that contract of service of the claimant/petitioner was in subsistence
till 21-8-2014 but his contract was not renewed and vide letter dated 4-8-2014 which issued by
respondent No. 2 and received on 13-8-2014 by petitioner stipulated qua non-renewal of fixed term
contractual employment which came to an end on 21.8.2014. It is asserted that as per letter of
appointment dated 22-8-2013 the term of appointment was for a period of one year which was to
automatically come to an end on 21.8.2014 and term of employment which was expiring was well
intimated to the petitioner in advance on 4.8.2014 so that petitioner might look for some other
appointment opportunities while petitioner still worked with respondent No. 2 thereafter for other
15 days or so. It is admitted that petitioner had written a letter and made representation dated
4.8.2014 and 14-8-2014 for considering request for renewal of his contractual appointment. It is
emphatically denied that respondent No.2 acted in unreasonable manner and made a concocted
warning letter dated 24-7-2014 which had been received by the petitioner on 7-8-2014 rather the
allegations contained in warning letter are stated to be correct and true facts because petitioner was
found guilty of violating Code 7 and Code 16 of Rules of respondent No. 2 which showed not
attending calls, refusing case, call disconnecting besides violation of code 7 was stated to be serous
misconduct as the petitioner was employed in emergency services. It has been denied that petitioner
had discharged his duties sincerely and faithfully rather reply filed to the warning letter by
petitioner also contained false allegation. It has been denied that respondent Nso.2 had taken undue
advantage of agreement. In so far as requirement of notice period of termination for two months is
concerned, it has been maintained that infact the contract of petitioner had not been terminated
rather contract of petitioner had expired after completion of its tenure of one year. It is further
contended that Govt. of H.P. was fully monitoring respondent No. 2 so that no exploitation of
unemployed youth could take place and that respondent No. 2 was strictly adhering to all of the
labour laws besides maintained that petitioner has not been removed from service rather his term
for employment came to an end as same was not renewed.
7. In its reply respondent No.2 further admitted that Hon'ble High Court of H.P. vide
order dated 9-4-2015 had directed not to terminate the services of claimant/petitioner who had not
completed contractual period. It is maintained that the services of petitioner had been terminated on
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completion of contractual period and not between and before its expiration. It has also been
admitted by the respondent No. 2 that Hon'ble High Court had directed that in case fresh hands
were engaged, claimant/petitioner shall be given preference in view of provisions of Section 25-H
of the Industrial Disputes Act. It is claimed that at the time of engaging fresh hands respondent
No. 2 had advertised employment notification and interview dates in the local daily newspaper in
State of H.P. but neither claimant/petitioner or other co-petitioners who were previously employed
with the respondent No. 2 appeared or even petitioner did not apply at the time of interview for new
appointment. As such, petitioner despite notice for fresh recruitment, did not appear however
denied that the services of petitioner was permanent in nature as claimed by him which was stated
to be for a fixed term period and was well aware of fact petitioner's employment was contractual
which was accepted by petitioner by signing letter of appointment dated 22-8-2013 issued by
respondent No. 2. Accordingly, petition was sought to be dismissed.
8. The respondent No.3 M/s. Adecco India Pvt. Ltd. contested the claim petition, filed
separate reply inter-alia taken preliminary objections qua maintainability, estoppel, suppression of
material facts, misjoinder of parties. On merits admitted engagement of petitioner by respondent
no.3 on the request of respondent No. 2. It is stated that respondent No.3 had so far provided 555
workers to respondent No. 2 which were required and out of them 535 were still working. It is
further alleged that an agreement dated 10-8-2010 Ex. RW3/C entered between respondent No.2
and 3 was in existence which was valid for 3 years when petitioner had undergone training and was
appointed by respondent No.3 and on expiry of agreement appointment letter dated 22.8.2013 for
contractual appointment of petitioner was issued by respondent No. 2.
9. The petitioner filed three separate rejoinder(s) to the three separate replies filed by the
respondent Nos.1 to 3 reiterated his stand as maintained in the claim petition and denying all
allegations levelled in replies prejudicial to his claim as against these respondents.
10. In order to prove his case, petitioner had examined himself as PW1 tendered/proved
their affidavits Ex. PW1/A, copy of agreement dated 9-7-2010 Ex. PW1/A1, copy of letter of
engagement dated 12.7.2017 Ex. PW1/B, copy of letter of appointment dated 3.4.2011 Ex. PW1/C,
copy of letter of appointment dated 22-8-2013 Ex. PW1/D, copy of certificate dated 25-12-2011
Ex. PW1/E, copy of certificate dated July, 2013 Ex. PW1/F, copy of certificate dated September,
2013 Ex. PW1/G, copy of certificate dated October, 2013 Ex. PW1/H, copy of certificate dated
March, 2014 Ex. PW1/I, copy of EMCARE Ex. PW1/J, copy of letter regarding non renewal of fix
term contractual agreement Ex. PW1/K, copy of letter regarding request for renewal of contract
dated 14.8.2014 Ex. PW1/L, copy of letter regarding reminder of letter dated 14.8.2014 Ex.
PW1/M, copy of warning letter dated 24.7.2014 Ex. PW1/N, copy of envelop Ex. PW1/O, copy of
reply to the warning letter dated 24.7.2014 Ex. PW1/P, copy of order dated 9-4-2014 passed in
CWP No. 6406/14 Ex. PW1/Q, copy of demand notice Ex. PW1/R, copy of letter dated 25.8.2015
Ex. PW1/S, copy of letter dated 2-11-2015 Ex. PW1/T, copy of detail of EMTs recruited from
1.8.2014 to 12.9.2015 Ex. PW1/U, copy of full and final settlement Mark-B and closed the
evidence. On the other hand repudiating the evidence led by the petitioner, respondent no.1 has
examined Shri Pankaj Rai, Mission Director, National Health Mission, H.P. Shimla as RW1,
tendered/proved his affidavit Ex. RW1/A, copy of agreement dated 9.7.2010 Ex. RW1/B, copy of
agreement for service dated 10-8-2010 Ex. RW1/C, copy of certificate of registration dated
29-3-2012 Ex. RW1/D, copy of letter dated 22-1-2011 Ex. RW1/E, copy of letter dated 17-6-2013
Ex. RW1/F and closed evidence.
11. Respondent No.2 had examined Shri Daya Ram, Authorized Representative GVK
EMRI, Dharampur, District Solan, H.P. as (RW2), tendered/proved affidavit of said Daya Ram Ex.
RW2/A-1, copy of Authority Letter dated 6-7-2017 Ex. RW2/A2, copy of agreement dated
9-7-2010 Ex. RW2/A3, copy of terms and condition of employment Ex. RW2/A4 which
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corresponds to Mark-A, copy of letter of appointment Ex. RW2/A5, copy of complaint dated
28-4-2014 Ex. RW1, copy of warning letter dated 24-7-2014 Ex. RW2, copies of minutes of
meeting Mark-A, Mark-B and Mark-C respectively and closed evidence.
12. Respondent No.3 however had examined Shri Raj Wadhwa, Senior Executive
Compliances, M/s. Adecco India Pvt. Ltd. as RW3 who filed his affidavit Ex. RW3/A, copy of
Authorization Letter dated 12-4-2017 Ex. RW3/B, copy of Agreement for services dated 10-8-2010
Ex. RW3/C between respondent no. 3 and 2 and closed evidence.
13. I have heard the Ld. Counsel of petitioner and Ld. Dy. D.A. for respondent No.1 as
well as Ld. Counsel representing respondents Nos. 1 and 2, gone through records of the case
carefully relevant for disposed of this case.
14. From the contentions raised, following issues were framed on 21-11-2016 for
determination:
1. Whether termination of services of the petitioner by the respondents vide letter dated 4-
8-2014 is/was illegal and unjustified as alleged?
...OPP.
2. If issue No.1 is proved in affirmative to what service benefits the petitioner is entitled
to?
...OPP.
3. Whether the claim petition is not maintainable in the present form?
...OPR 1, 2 & 3
4. Whether the petitioner has not approached the Court with clean hands as alleged?
...OPR 2 & 3.
5. Whether the petitioner has no locus standi to file the case as alleged?
...OPR 2.
6. Whether claim petition is bad for mis-joinder of necessary party as alleged?
OPR 2.
7. Whether the petitioner has no cause of action to file the present case as alleged?
...OPR 2.
8. Whether the petitioner is estopped from filing petition by his act and conduct as
alleged? If so, its effect?
...OPR 3.
9. Whether the petitioner has suppressed and misrepresented the true and material facts
from the Court as alleged. If so, its effect?
...OPR 2 & 3.
Relief.
15. For the reasons detailed hereunder, my findings on the above issues are as follows:
Issue No.1 : Yes
Issue No. 2 : Discussed
Issue No. 3 : No
Issue No. 4 : No
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Issue No. 5 : No
Issue No. 6 : No
Issue No. 7 : No
Issue No. 8 : No
Issue No. 9 : No
Relief : Petition is allowed partly per operative part of award.
REASONS FOR FINDINGS
Issue No.1, 2 And 7
16. All these issues have been taken up together for discussion being interconnected which
can be disposed of simultaneously without repetition of evidence.
17. It is admitted case of the parties that Ex. PW1/A1 is Public Private Partnerhsip
Agreement dated 9.7.2010 entered into between the State of Himachal Pradesh through its Principal
Secretary (Health) and GVK EMRI (hereinafter called as EMRI for brevity) through its Chief
Executive Officer with the object to provide delivering and integrating professional emergency
response service covering medical care by providing technology in the emergency care operations
as well as to provide integrated Emergency Response Service (hereinafter called as ERS for
brevity). It is admitted case of respondent No.1 that respondent No.2 had been engaged to provide
services in State of Himachal Pradesh with the object to improve health care services particularly in
emergency situation to pregnant women, neonates, mother of neonates infants and children (in
serious ill health conditions) and any other health emergencies in general population and
thereby helping State to achieve the critical millennium development goals in health sector
which included efficient pre-hospital care and ambulance service. It is admitted case of the
respondent No.2 that it had engaged respondent No.3 to provide manpower on its own rolls to run
emergency service when petitioner was initially appointed by respondent No. 3 who issued
appointment letter to petitioner as EMT for a period of one year and was under control and
supervision of respondent No.3. It is equally admitted case of respondent Nos. 2 and 3 that
agreement for services dated 10.8.2010 Ex. RW1/C was entered between them was valid for three
years i.e. till 2013. It is admitted case of respondent no.2 that letter of appointment dated 22-8-2013
Ex. PW1/D was issued which was for one year, after expiration of agreement of services dated 10-
8-2010 EX. RW3/C between respondent Nos. 2 and 3. It is admitted case of respondent no.2 that
letter dated 4-8-2012 qua non-renewal of appointment was issued to the petitioner was factually
received by him on 14-8-2014 which had been issued by respondent No. 2 with the object to notify
petitioner in advance so that petitioner might be able to seek some other suitable job. It also
remains the case of respondent No. 2 that prior to issuance of letter Ex. PW1/K, a warning letter
dated 24.7.2014 was issued as petitioner was found guilty of having violated Code 7 and Code 16
of Rules framed by respondent No.2 but there was such stipulation in letter dated 4-8-2014. In the
backdrop of foregoing admitted facts on record, evidence led by the parties needs to be scanned to
determine if termination of services of petitioner by non-renewal of contractual letter of
appointment dated 22-8-2013 by respondent No. 2 vide letter dated 4.8.2014 was illegal and
unjustified.
18. Before adverting to merits of this case, it would be relevant to determine the
relationship between respondent No.1 with respondent No.2 and petitioner. It would, therefore, be
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relevant to go through the recitals of Agreements named as Public Private Partnership Agreement
dated 9-7-2010 Ex. PW1/A-1 entered into between State of H.P. and respondent No.2 with the
object to achieve its goal in health care scheme i.e. reduction of infant mortality rate, maternal
mortality rate etc. and in general to improve the health conditions amongst the people of the State
by improving their ability to access to healthcare services in case of emergencies besides the State
Government intended to provide a single Emergency Response Number (108) for responding to
medical, police and fire emergencies. The agreement in question further reveals that the State
Government was desirous of mainstreaming and integrating 'ERS' with other initiatives to provide
continuity of medical services across the continum of 'ERS' and other clinical, therapeutic service
by enlarging the scope of the professional and efficient pre-hospital care and ambulance
services. The agreement Ex. PW1/A-1 stipulates that State Government under Clause 1.1.0 is to
provide autonomy and operational freedom to GVK EMRI. Clause 1.1.1 is reproduced below for
reference:
“Clause 1.1.1
recognize GVK EMRI as the State Level Nodal Agency to provide emergency response
services across the State, in coordination with the public agencies, which will help drive
greater transparency, agility, and better citizen service. GVK EMRI shall have the
operational freedom and autonomy which includes amongst other things, the ability to
make independent decisions in respect of the following:
(a) Selection, hiring, appraisals, transfers and termination/dismissal of staff, freedom
to avail the staff from HR agencies, preparation of training procedures; all
employees of GVK EMRI HP will be appointed on Contract and the duration of
the Contract (not more than five years) will be clearly mentioned so that there is
no long term obligation for employment. The contract with the employees shall be
liable to be terminated by giving two months' notice by the either side. The
contract with employees shall not exceed the term of this Agreement. The terms of the
contracts for appointment will be finalized by the Executive Council constituted under
the Clause 1.3.3 of the agreement.
(b) Processes and procedures followed for provision of emergency response services.
(c) Infrastructure required for providing emergency response services;
(d) Re-appropriation of the budget within the overall operational expenditure provision;
(e) Promotional activities undertaken to create awareness;
(f) Proliferation of the best practices;
(g) Technology development and deployment;
(h) Design of ambulances and equipping them, as required:
Provided in the interest of transparent functioning, GVK EMRI, would furnish details
pertaining to the above activities to the State Government if the latter party so requires, and
can also suo-motu seek consultation of the State Government where needed in respect of
1.1.1 (b) to
(h) above and in other matters of operation of ERS for improving the service quality”.
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19. A bare glance at the above referred provisions of agreement Ex. PW1/A-1 would
establish that GVK EMRI respondent No.2 was given full operational freedom and autonomy
which included amongst other needs the ability to take many independent decision in respect of
selection, hiring, appraisals, transfers and termination/dismissal of staff from HR agencies,
preparation of training procedure besides, all employees of respondent No.2 were to be appointed
on contract and the duration of the contract was to be not more than five years which was clearly
mentioned in the object that there was no long term obligation for employment however the
contract with the employees could be terminated by giving two months notice by either side.
Rule 1.1.2 entrust GVK EMRI with the responsibility of operationalization of agreed number of
ambulances from time to time at the State Government's cost and expenses to meet the objective of
the ERS. It can be noticed from claim petition that claimant/petitioner has claimed that State of
Himachal Pradesh through respondent No.1 Mission Director National Rural Mission Health was
the Principal Employer of petitioner.
20. To appreciate controversy in issue, it would be relevant to go through oral evidence.
RW1 Shri Pankaj Rai working as Mission Director, National Health Rural Mission, Govt. of H.P.,
Shimla has been examined who stepped into witness box as RW1 tendered/proved his affidavit Ex.
RW1/A in which he has maintained on oath that as per emergency ambulance service which was
earlier named as Atal Swasthya Seva (108) has now been renamed as National Ambulance Service
(108) being run by State of H.P. in the interest of patient care and public at large under the public
private partnership mode through GVK-Emergency Management and Research Institute (GVK-
EMRI) i.e. respondent No.2 for which an agreement-cum-MOU Ex. PW1/A1 has been entered into
between the parties on 9-7-2010. He has further stated that ambulance had been registered in the
name of Director Health Services, H.P. so as to keep the assets with the Govt. of H.P. moreso when
the project was funded by Govt. of H.P. and agreement Ex. PW1/K dated 9-7-2010 was for a fixed
period which could also have been terminated at any time and for said reason ambulances, vehicles
were registered in the name of Director Health Services, H.P. He has further stated that respondent
No. 2 had entered into agreement dated 10-8-2010 with respondent No.3 M/s Adecco Flexion
Workforce Solutions Private Limited for hiring of manpower and staff to run the National
Ambulance Scheme on certain specific terms and conditions. Not only this, the Certificate of
Registration has been issued to respondent No. 2 GVK EMRI for carrying out emergency service
with respect to Atal Swasthya Seva (108) which was later named as National Ambulance Scheme
(108) and that Principal employer of petitioner was GVK EMRI respondent No. 2 and that
respondent No.1 was not the Principal Employer of petitioner. The said witness who is respondent
No.1 as well, has categorically maintained that autonomy and operational freedom was given to
respondent no.2 as specifically provided in Clause 1.1.0 of MOU/Agreement dated 9-7-2010. It has
been specifically laid down under Clause 1.1.1 that operational freedom and autonomy had been
given to respondent No. 2 vide agreement Ex. PW1/A-1 to take decision in respect of selection,
hiring, appraisals, transfers and termination/dismissal of staff from HR agencies, preparation of
training procedure by respondent No.2. RW1 has consistently maintained that the service of
petitioner had never been terminated by respondent No.1 as petitioner was not its employee besides
no action of respondent No. 1 as against petitioner was discriminatory and unconstitutional under
the provisions of the Industrial Disputes Act. In cross examination, this witness has admitted that
State of H.P. was having several social welfare schemes being run from time to time in public
interest besides admitted that State of H.P. had provided emergency services under 'ESR' scheme
when ambulances were decided to be deployed for emergencies in health care of general public in
pre hospitalization. Although RW1 has admitted that agreement Ex. PW1/A-1 was entered into for
State of H.P. through Principal Secretary, Health which could not be construed as State of H.P.
being Principal Employer for the purpose of engagement of employees by respondent No. 2.
Similarly, admission of RW1 that actual operational expenditure which was comprised of salary,
recruitment costs fuel repairs and maintenance, consumables, communication system ambulances
were to be borne by State of H.P. besides releasing grant-in-aid would not make respondent No.1
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Principal Employer. Even registration of ambulances in the name of Director Health Services, HP
is no of significance determining relationship between employees recruited by GVK EMRI as it has
come in the evidence as well as in the MOU/agreement dated 9-7-2010 that although agreement in
question was initially for a period of five years but was renewable with the consent of the parties
from time to time with object for retention of infrastructure as well as vehicles in the name of
Director Health Services, H.P. so that after expiration of agreement Ex. PW1/A infrastructure and
vehicles remained with respondent No.1. Be it stated that this would not make relationship of
respondent No.1 as Principal Employer with employee. Crosse xamination of RW1 by Ld. Counsel
for respondent No.2 reveals that for running ERS respondent No.2 could appoint employees on
contractual basis but contract of appointment was co-terminus with agreement/MOU Ex. PW1/A-1.
It has also been admitted by RW1 that according to agreement Ex. PW1/A-1 respondent No. 2
could employ any person on contract for fixed period. Testimony of RW1 revealed that respondent
No. 2 to have separate independent operational autonomy and State of H.P. had to merely provide
infrastructure, vehicles and grant-in-aid so as to meet out salaries and other expenses but even this
evidence is not sufficient to conclude that respondent No.1 was principal employer as the
government through respondent no.2 was implementing social welfare scheme to various categories
of people as mentioned in the agreement Ex. PW1/A-1. Enough has been emphasized by Ld.
Counsel for the petitioner that under Clause 1.3.3 of agreement/MOU Ex. PW1/A-1 Chief
Secretary of State was Chairman whereas eight others were heads of department Govt. of H.P.
besides four members were of respondent No. 2 and special invitees. Ld. Dy. District Attorney for
respondent No.1 on the other hand has contended that even when Advisory Council which was to
meet once in three months was to take major decisions were purely supervisory in nature providing
salaries and other expenses, infrastructures, building, grant-in-aid with the object of social welfare
of public at large as stated in foregoing paras but in the matter of recruitment of employees and
termination of their services, respondent No. 2 had complete separate independent autonomy
although rules provided in agreement Ex. PW1/A-1 dated 9.7.2010 were to be followed. As such
when petitioner had been recruited or terminated or say his contract of employment was not
renewed in no manner involves any action on part of respondent No.1 although for not giving two
months notice prior to termination by respondent No.2 vitiates removal of petitioner under Clause
1.1.1 of agreement referred to above. Clause 2.0 of agreement aforestated stipulates obligation of
GVK EMRI towards its employees to which respondent No.2 has specifically agreed. Clause 2.1.5
Sub (a) is reproduced below for reference:
Clause 2.1.5
“(a) Recruit, position, and train required human resources, including communications
/dispatch officers, physicians, pilots (drivers), medically trained persons (Emergency
Medical Technicians or EMTs), supervisors, trainers, managers and leaders (finance, HR,
IEC, quality, Administrative services, etc.) to support the ERS and provide the emergency
response services;
21. Ld. Counsel for petitioner had taken this court through Recitals in particular Clause 'C'
which dealt with all expenditure to be borne by Govt. of H.P. and last at page 2 of agreement under
sub-Clause C (i) it is provided that if after meeting all expenditure, respondent No.2 is left with
surplus amount or say there were saving, those will be refunded to respondent no.2 to Govt. of H.P.
The arrangement of refund to Govt. of H.P. if excess funds were released also does not make
respondent no.1 Principal Employer in any manner as refund of funds was merely arrangement
under agreement Ex. PW1/A-1.
22. RW2, Shri Daya Ram the only witness examined by GVK EMRI has sworn affidavit
Ex. RW2/A-1 in which he has specifically stated that petitioner was initially engaged by respondent
No.3 as trainee for 45 days and after the training, petitioner was given letter of engagement dated
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11-2-2011 vide which petitioner was initially appointed for a period w.e.f. 3-4-2011 to 3-4-2012 on
rolls of respondent No.3. He has further deposed that Ex. RW3/C agreement dated 10-8-2010 was
entered into between respondent Nos. 2 and 3 for hiring, deploying manpower with the respondent
No.2 besides maintained that according to agreement Ex. PW1/A-1 respondent No.2 was Principal
Employer and respondent No.3 was contractor however petitioner was engaged by respondent No.2
under the supervision and control and on the roll of respondent No.3 besides maintained that
petitioner was initially engaged for a period of one year on the basis of contractual employment
but the services of petitioner were not at all permanent in nature. RW2 has further deposed on oath
that petitioner was engaged by respondent No. 2 on 22-8-2013 till 21-8-2013 for fixed period.
Significantly, in cross-examination of RW2 Shri Daya Ram, the sole witness examined by
respondent No. 2 has specifically admitted that respondent No. 2 was Principal Employer of
petitioner who was recruited at the instance of respondent No. 2 but was on rolls of respondent
No. 3 however admitted in cross-examination that according to agreement respondent No. 2 could
take independent decision to keep or terminate the services of any of its employee. Cross-
examination of Ld. Counsel for respondent No.3 reveals that agreement dated 10-8-2010 between
respondent Nos. 2 and 3 was for a period of three years which was not in existence when petitioner
was engaged by respondent No. 2 in year 2013 by issuing appointment letter and disengaged in
year 2014 from service. Significantly, he has also admitted that termination of petitioner in the year
2014 did not relate to respondent No. 3 as agreement between respondent Nos. 2 and 3 had expired
in August, 2013 which was only for three years. Since the respondent No.3 was the contractor who
was to provide service for recruitment of employees to respondent No.2 on contract basis as per
agreement Ex. RW3/C, respondent No. 3 had ceased to have relationship with respondent No.2 and
the petitioner when appointment letter dated 22-1-2013 was issued by respondent No. 2 which was
consequently not renewed before the expiry period on 21-8-2014.
23. Now referring to testimony of petitioner qua State of H.P. and respondent No.1 being
principal employer, it is pertinent to state that affidavit Ex. PW1/A of petitioner stipulates that he
has reiterated his stand as maintained in the claim petition. In cross-examination, he has admitted
that respondent No.1 had entered into public private partnership agreement Ex. PW1/A-1 with
respondent No.2 according to which services were to be rendered to general public, female,
children in pre hospitalization free of cost. PW1 petitioner has categorically admitted in cross-
examination by Ld. Dy. D.A. for respondent No.1 that petitioner was neither appointed nor
engaged by respondent No.1 which goes to show that respondent No.1 was not at all Principal
Employer of the petitioner. Although PW1 has admitted that payment of salary was being made by
respondent No.3 but this arrangement continued till Ex. RW3/C agreement dated 10-8-2010
remained in force between respondent Nos. 2 and 3 subsisted. Cross-examination of PW1 by Ld.
Counsel for the respondent No. 2 further revealed that the petitioner was not engaged by the
respondent No. 3 but his salaries were paid by the respondent No. 3 on the basis of agreement dated
10-8-2010 Ex. RW1/C besides admitted that respondent No. 2 had issued letter on 22-8-2013 Ex.
RW1/D which was a contractual appointment for specific period and the term of agreement was to
expire on 21.8.2014. In crossexamination by Ld. Counsel for respondent No.3, it has been
specifically admitted that since 2011 till 2013 petitioner was on rolls of respondent No.3 but in
2013 respondent No. 2 had given fresh appointment to petitioner with which respondent No. 3 had
no concern. From the above said evidence on record, it can be safely concluded that initially when
petitioner was engaged as trainee and thereafter as EMT on the rolls of respondent No. 3 till 2013
and even at that time also respondent No. 2 was Principal Employer. The evidence establishes that
agreement dated 10-8-2010 entered between respondent Nos. 2 and 3 was for a period of three
years which came to an end when respondent No. 2 itself appointed petitioner by issuance of
separate letter of appointment dated 22-8-2013 for a fixed term as stated above. Since the status of
respondent No. 2 continues to be that of Principal Employer on 22-8-2013 as well as before as has
been admitted by the only witness RW2 Daya Ram on behalf of respondent no.2 that on
termination of agreement of services between respondent Nos. 2 and 3, it could not be stated that
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status of respondent No. 2 being the Principal Employer had ceased to exist at any point of time.
Not only this, as has been discussed in foregoing paras, respondent No. 2 has been provided with
complete independent autonomy in which respondent No.1 had no role in either selection,
recruitment or appointment irrespective fact that working of respondent No. 2 was only to be
monitored and supervised by through Advisory Council as stipulated in clause 1.3.3. of Agreement
dated 9-7-2010 Ex. PW1/A-1.
24. Ld. Counsel for petitioner has relied upon Clause 10 dealing with ownership which
provided the State Government shall hand over the possession of ERS complex, ambulances and all
other assets created under this scheme and funded by State Government to respondent No. 2 GVK
EMRI for the purpose of operationalizing and running emergency response services and the said
clause also provided all the moveable and immovable properties as also software acquired and
created including generated under the scheme shall vest in the State Government. By referring this
clause, it has been contended with vehemence that all properties being used by State Government
and ultimately all the ambulances were being run in the name of Director Health Services besides
the agreement in question has been entered between Principal Secretary (Health) of Govt. of H.P.
establishes that Govt. of H.P. was Principal Employer. All these averments and aspects highlighted
by Ld. Counsel for petitioner in no manner established that State of H.P. or respondent No.1 was
Principal Employer of petitioner who was on contractual employment. When appointment letter
was issued by respondent No. 2 on 22-8-2013 appointing petitioner as EMT, it had employed him
as a Principal Employer and not on behalf respondent No.1 or for the State of H.P. as discussed in
foregoing paras. The respondent No. 2 had independent autonomy and to take independent decision
in the matter of engagement and termination of the employees as discussed in foregoing para. Mere
fact that there existed an Advisory Council headed by Chief Secretary of the State Government as
well as respondent No. 2 as has come in evidence would not ipso facto lead to inference that State
of H.P. was Principal Employer and under obligation not to terminate service of petitioner who was
its employee rather petitioner himself has admitted that when he was initially engaged in the year
2011 he was appointed by respondent no.3 on whose roll he continued till 2013 when respondent
No.1 was Principal Employer and on change of situation when agreement between respondents
No. 2 and 3 expired, respondent No. 2 issued appointment letter to petitioner on 22.8.2013 which
would not change the status of respondent No. 2 as Principal Employer irrespective the fact that his
contract for hiring manpower with respondent No. 3 had ceased to exist.
25. The plea of respondent No.1 that respondent No. 2 was Principal Employer also finds
support from Ex. RW1/D Certificate of Registration issued by Labour Department, H.P. showing
respondent No. 2 as Principal Employer. In view of the same, it would be unsafe to hold that
respondent No.1 or State of H.P. was the Principal Employer of petitioner rather it was respondent
No.2 was Principal Employer when letter dated 4-8-2014 qua non-renewal of contractual letter of
appointment was issued preceded by letter of appointment dated 22-8-2013 of petitioner.
26. Admittedly, petitioner had been initially engaged by respondents whose salary etc. was
being paid by the respondent No. 3 although received through respondent No.2 from respondent
No.1 however was deployed for rendering services with respondent No.2. It is also admitted case of
the parties that agreement of service Ex. RW3/C between respondent No.3 and respondent No.2
was valid for a period for three years i.e. from 2010 till August, 2013. It is also not in dispute that
letter of appointment dated 22.8.2013 Ex. PW1/D was issued by respondent No. 2 to petitioner
consequent upon expiry of Ex. RW3/C as stated above. A bare glance at the appointment letter Ex.
PW1/D would reveal that petitioner was appointed for specific period of employment for one year
being coterminous with MOU with Government of H.P. Ex. PW1/A-1 prior to it respondent No.3
had issued a appointment letter Ex. PW1/C which shows that petitioner was employed from
3-4-2011 to 3-4-2012 and in Clause (6), it has been provided that employment with respondent No.
2 would be on deputation basis as EMT and petitioner will not be regular employee either of
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respondent No. 3 or where he was deputed to work i.e. with respondent No. 2 on same terms and
conditions for three years as per contract of employment when respondent No. 2 issued
employment letter Ex. PW1/D.
27. In so far as termination of petitioner by respondent vide letter dated 4-8-2014 is
concerned, Ld. Counsel for respondent No. 2 has vehemently contended that petitioner was on
contractual employment and contract of employment was to come to an end on 21-8-2014
automatically and thus by virtue of definition 2(oo) Sub-Clause (bb) the petitioner is excluded from
purview of retrenchment Clause (bb) aforestated provided that termination of service of workman
as result of non renewal of contract of employment between employer and workman concerned on
its expiry. Clause (oo) of Section 2 stipulates retrenchment as termination by employer of service of
workman for any reason whatsoever otherwise then as punishment inflicted by way of disciplinary
action. It can be safely observed that termination should not be a punishment inflicted by way of
disciplinary action and Clause (oo) would cover petitioner if his contract of employment was not
renewed after expiry of contract of employment. It may be pertinent to mention here that petitioner
after issuance of appointment letter dated 22-8-2013 issued by respondent No. 2 had not signed the
same accepting terms and conditions of engagement in job as prior to it letter of appointment had
been issued by respondent No. 3 irrespective of fact that petitioner was working with respondent
No.2 for past three years. By not signing Ex. PW1/D dated 22-8-2013, the conditions stipulated
therein were not binding on petitioner.
28. Ld. Counsel for petitioner has argued if the evidence is minutely scrutinized, same
would reveal that issuance of warning letter to petitioner on 24-7-2014 for violating Code 7 and
Code 16 apparently revealed serious misconducts but no inquiry was conducted and contract of
employment was not renewed much before its expiry i.e. on 4-8-2014 whereas contractual
employment was to come end on 21.8.2104 and request of petitioner and reminder for renewal
prior to last date of agreement of contract employment dated 21-8-2014 was neither acknowledged
nor rejected. Be it noticed that in reply to claim, respondent No. 2 has nowhere alleged that pay of
one months' notice period along-with other benefits was given to petitioner. Even information for
non renewal of contractual appointment on 4-8-2014 was factually received by petitioner on
13-8-2014 for no plausible explanation. As and when letter for non-renewal was issued, contractual
employment was in existence as such non-renewal of contractual letter of appointment was not
renewed after expiration and rather much before which does not meet requirement of Section 2
(bb) (oo). Not only this, order of non-renewal of contract letter of appointment was manifestly
punitive in nature as despite issuance of several appreciation letters in 2013 one of which was
consequently published in magazine EMCARE of respondent No. 2 and one letter of appreciation
letter of 2014 on record clearly established that nonrenewal was with malafide intention as result of
complaint made by petitioner to Manager HR against his senior Gaurav Mehta who had himself
misbehaved with petitioner and without conducting inquiry or raising charge-sheet for misconduct
petitioner was issued warning letter for violation Code 7 and Code 16 which too was not in
consonance with service record of petitioner. Thus, action of respondent No. 2 was not only
inconsistent with service record of petitioner but it was punitive in nature falling within the ambit
of unfair labour practice on part of respondent No. 2. For aforestated reason judgments relied by
Ld. Counsel for respondent No.2 reported in 2007 AIR (SC) 288 titled as Bhogpur Co-op Sugar
Mills Ltd. vs. Harmesh Kumar 2006 (2) SCT 23 (SC) would not attracted having different facts
altogether.
29. The grievance of petitioner remains that letter dated 4-8-2014 Ex. PW1/B qua non-
renewal of fixed term contractual employment was punitive in nature. In the letter aforestated
reference of clause (2) has been made and thus it needs to be determined if due to non-renewal of
contractual employment of petitioner, respondent violated rights of petitioner and decision to not
renew contract was in violation of provisions of the Industrial Disputes Act. At the outset, it would
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relevant to mention here that letter of appointment dated 22-8-2013 Ex. PW1/D was not signed by
petitioner by accepting terms and conditions enumerated therein. Stepping into witness box,
petitioner has sworn his affidavit Ex. PW1/A deposed on oath as maintained in the claim petition
however in crosse-xamination by the respondent No.1, petitioner has admitted that emergency
ambulance service which was earlier known as Atal Swasthya Seva later changed National
Ambulance Service on which he worked and deployed as EMT. He has further admitted that
neither respondent No.1 appointed him nor made any payment of salary etc. to him directly. In
cross-examination by Ld. Counsel for respondent No. 2 petitioner has admitted that he was
employed by respondent No.2 who the principal employer with regard to Ex. PW1/C appointment
it has been stated that same was issued by respondent no.3. He has specifically admitted that
petitioner was employed on contract for one year vide letter Ex. PW1/D which was to expire on
21-8-2014 although denied that contractual employment could be terminated by giving one month's
notice. It is evident from oral as well as documentary evidence led by petitioner placed on record
that vide letter dated 4-8-2014 Ex. PW1/K, the contract of employment was not renewed prior to it
expiration on 21-8-2014. The plea of respondent No.2 remains that services of petitioner was not
terminated prior to contractual period which was to expire on 21-8-2014 rather petitioner was
notified in advance qua non-renewal of contractual employment. Although letter dated 4-8-2014
Ex. PW1/L qua non-renewal does not give details of Clause (2) of Annexure-A of appointment
letter, as it has not been proved but the petitioner on the other hand led sufficient evidence
establishing that the action of respondent No. 2 in non-renewal of contractual appointment was
malafide fell within the definition of unfair labour practice with the object to harass the petitioner
who rendered dedicated services to patients and general public as well as to respondent No. 2 and
that the action of respondent No. 2 in giving only one months' notice was primarily in violation of
agreement dated 9-7-2010 Ex. PW1/A-1 entered into between State of H.P. and respondent No. 2.
30. In this regard reliance has placed on Clause 1.1.1 which deal respondent No. 2 with
autonomy and operational freedom to respondent No.2 under Clause 1.1.0 in sub-clause (a) and
made it obligatory for two months notice while terminating his services and read as under:
“All employees of GVK EMRI HP will be appointed on Contract and the duration of
the Contract (not more than five years) will be clearly mentioned so that there is no
long term obligation for employment. The Contract with the employees shall be liable
to be terminated by giving two months "notice by the either side”.
It can be noticed from the above stated provisions that being employee of respondent No. 2
in pursuance to agreement Ex. PW1/A-1 respondent No. 2 was under obligation to issue atleast two
month's notice if service contract of petitioner was to be terminated. It can be safely inferred from
the contents of said rule that employees of respondent No. 2 were to be appointed for period not
exceeding five years on contract so that there is no long term obligation but certainly it was clearly
mentioned that either parties could serve two months' notice to terminate contract of employment.
As such, non-renewal of contractual employment of petitioner manifestly violated sub-clause 1.1.1
(a) Ex. PW1/A-1 aforestated. Thus, there is prima facie no explanation from the side of respondent
No.2 and thus non issuance of notice of two months was in violation of agreement Ex. PW1/A-1.
Cross-examination of Shri Daya Ram (RW2) the sole witness of respondent No. 2 is quite clear on
this point as he admitted that petitioner could not be removed unless he was given two month's
notice as per clause 1.1.1 of agreement Ex. PW1/A-1 which primarily support of plea of petitioner
that he was not given required notice under the rule. This witness has also admitted that MOU Ex.
PW1/A-1 was enforceable on 4-8-2014 when letter Ex. PW1/K qua non-renewal was issued to
petitioner and there was sufficient budget although denied that petitioner was removed wrongly in
violation of the rules. Significantly, this witness has also admitted that petitioner had requested vide
letter Ex. PW1/C and PW1/M for renewal of contractual employment but there were neither
acknowledged by respondent No. 2 nor rejected. It is nowhere stated that his request for renewal of
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contract was either not considered or rejected which also showed malafide intention of respondent
No. 2 besides unfair labour practice as provided in Section 2 (ra) read with Fifth Schedule
appended to Industrial Disputes Act.
31. It is admitted case of the respondent No. 2 as well as respondent No.1 that petitioner
was issued appreciation letters Ex. PW1/E to Ex. P W1/I, the certificates which revealed that these
letters were given for exemplary performance by petitioner in providing pre-hospital care and
extending contribution towards saving valuable lives of the patients. Significantly, petitioner's
performance and appreciation was also reflected in their magazine EMCARE copy of which is Ex.
PW1/J wherein performance of CH Team Kangra was appreciated in which ambulance EMT
Anchal Goswami and pilot Sanjeev were present who had rescued patient having major cardiac
arrest, chest pain and due to prompt service of petitioner, patient could be saved. It would be
pertinent to mention here that letter Ex. PW1/K dated 4.8.2014 qua non-renewal fixed term
contractual employment respondent No. 2 has merely invoked Clause (2) under annexure of
appointment however letter stipulates nothing about his conduct or non performance of duties for
violation of Code 7 and Code 16 of rules of respondent No.2. The case of the petitioner remains
that warning letter dated 24-7-2014 Ex. PW1/N which had been issued qua violation of non
attending calls, refusing to take case, call disconnecting as well as code Nos. 7 and 16 were not
followed properly by petitioner are not at all established from any inquiry or legal evidence. The
said letter was despatched on 2nd August, 2014 as is evident from postal receipt of Ex. PW1/O at
the address of petitioner and while sending warning letter dated 27-7-2014 for violating Codes
referred above apparently there was no explanation from the side of respondent No. 2 as to how the
warning letter dated 24-7-2014 had remained pending or un-despatched in the office and was
finally despatched on 2nd August, 2014 after 10 days which also shows malafide attitude of the
respondent no.2. In the reply to Ex. PW1/P to warning letter, petitioner has raised serious
allegations against Shri Gaurav Mehta who on 26-4-2014 had abused petitioner besides slapped
him on duty and had threatened petitioner with dire consequences. Besides reply addressed to
Manager, HR 108, GVK EMRI, Solan goes to show that petitioner had made complaint against
Shri Gaurav Mehta while replying the warning letter. Not only this, petitioner in witness box has
made similar disclosures in his affidavit and when examined by respondent No. 2 nothing could be
elicited in cross-examination which would reflect that he was deposing falsely.
32. RW2 who is sole witness of respondent No. 2 when cross-examined by Ld. Counsel
for petitioner has admitted that Ex. PW1/N was issued by respondent No. 2 qua Code Nos. 7 and
16 violated by petitioner but the same time he has admitted that in Ex.PW1/K dated 4-8-2014 letter
for non-renewal of contractual employment there is no reference of violation of code Nos. 7 and 16.
He has also admitted that Ex. PW1/L and Ex. PW1/N had been signed by same officer.
Significantly, this witness also admits that while after Ex. PW1/N, respondent No. 2 had not
conducted any inquiry. At the same time, he has supported plea of petitioner by admitting that
petitioner had complained vide his letter dated 28-4-2014 Ex. RW1/C addressed to HR Manager
GVK EMRI qua misconduct of Gaurav Mehta who had abused and slapped petitioner besides
admitted that petitioner had raised voice against slapping by said Gaurav Mehta and his behaviour
but no inquiry had been conducted. This witness has also supported the plea on the point of quality
and performance of service rendered by petitioner as this witness has admitted in cross-examination
that Ex. PW1/E to Ex. PW1/I were appreciation certificates were issued by respondent No. 2
besides after issuance of certificate Ex. PW1/E the name of petitioner had been reflected in
magazine of EMCARE. Ex.PW1/J qua petitioner's excellent performance thus testimony of RW2
and admissions so made by him in cross-examination, it would be unsafe to hold that petitioner had
not rendered service satisfactorily properly or violated Code Nos. 7 and 16 as reflected in the
warning letter. At the same time, antedating warning letter 24-7-2014 which was despatched on 2nd
August, 2014 also establishes malafide intention on the part of respondent No. 2. It appears that
when petitioner raised his voice raising serious allegations against Gaurav Mehta qua his ill
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behaviour on 28-4-2014 as discussed in foregoing paras, respondent No. 2 decided to make an
excuse for removing petitioner under garb of issuance of warning letter which too was fabricated as
previous service record of petitioner did not reveal so while not renewing besides petitioner has
been condemned unheard qua story of violation of Code Nos. 7 and 16 and also incident of April,
2014 when petitioner was slapped and abused by his Senior Officer thus by making false warning
letter dated Ex. PW1/N dated 24-7-2014 contract of employment was not renewed prior to its
expiration on 31-8-2014 which is also in violation of Section 2(oo) (bb) of Industrial Disputes Act.
33. Sub-Section 2 (ra) deals with "unfair labour practice" which in stipulates unfair labour
practice means any of the practices specified in the Fifth Schedule of Industrial Disputes Act, 1947.
Rule 5 of Fifth Schedule provided any of acts stipulated in rule would be unfair labour practice
particularly if the employer discharges or dismisses the workman:
(a) by way of victimization
(b) not in good faith but in the colourable exercise of the employer's rights N.P. Ld.
Counsel for the petitioner has contended with vehemence that nonrenewal of
contractual employment fell within the ambit of unfair labour practice and action of
respondent No. 2 in not initiating inquiry against Gaurav Mehta as stated in foregoing
paras showed prejudices of employer against petitioner which cannot be stated be
made in good faith as petitioner had rendered exceptionally good services for which
even certificates were issued by respondent No. 2 and thus letter dated 4.8.2014 qua
non-renewal of contractual employment of petitioner without referring to violation of
code Nos. 7 and 16 as referred warning letter Ex. PW1/N and without conducting
inquiry or raising charge-sheet for violating of Code Nos. 7 and 16 was manifestly
illegal. At the cost of repetition, it may be stated that the issuance of warning letter
which was not served to petitioner immediately rather it was despatched on his address
on 2nd August, 2014 per registered postal receipt on record after gap of ten days and
subsequently on 4-8-2013, contractual employment was not renewed which was
received by petitioner on 13-8-2014. By doing so respondent No. 2 had deliberately
victimized the petitioner with the object to terminate him from contractual employment
and at the same time, but it was in colourable exercise of employer's right as provided
in Clause (b) of Rule 5 stated above as no inquiry was conducted at any stage and
petitioner had been condemned unheard throughout in violation of principles of natural
justice and had to pay price for raising voice against his Senior Officer with Manager
HR as has come in the evidence. No corresponding evidence on record has been
produced by respondent No. 2 which would establish that petitioner had violated the
code nos. 7 and 16 and by making reference of it in warning letter which was not
sufficient to infer that petitioner had factually committed any misconduct in violating
any code and thus issuing warning letter primarily appears to be not true and thus
respondent no.2 is held to have committed unfair labour practice within the meaning of
Section 2 (ra) of the Fifth Schedule of Industrial Disputes Act.
34. Another aspect of the matter which could not be lost sight while appreciating petitioner's
evidence qua contractual employment and non-renewal by respondent No. 2 is that despite
petitioner's repeated requests vide two letters Ex. PW1/L dated 14-8-2014 and Ex. PW1/M dated
20-8-2014 on record written before the expiry i.e. 21st August, 2014 of contractual employed had
remained unanswered or say unacknowledged. Be it stated petitioner had also moved before the
Hon'ble High Court of H.P in year 2014 filing CWP No. 6406/2014 copy of which is Ex. PW1/Q
enclosed with order of Hon'ble High Court dated 9-4-2015 besides the petition of present petitioner
was clubbed with CWP No.1583/2014 titled as H.P.108 Contract Workers Union vs. State of
H.P. and Ors. in which the Hon'ble High Court of H.P had directed the respondents to not
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terminate the services of petitioner and others who had not completed their contractual
period. The operative portion of the order also shows that employer were also directed that in case
fresh hands were engaged, the petitioners shall be given preference as per provisions of Section
25-H of the Industrial Disputes Act. Consequently, after passing this order, respondent No. 2 had
appointed 82 EMTs w.e. f 1-8-2014 to 12-9-2015 Ex. PW1/V details of which has been obtained by
petitioner under the RTI Act. Thus, evidence goes to show that respondent No. 2 had not adhered to
mandate of Hon'ble High Court as firstly the contractual employment of petitioner which was in
existence till 21st August, 2014 was factually terminated on 4-8-2014 much before its expiration.
Significantly, despite engagement of fresh hands present petitioner had not been given preference
by giving offer of appointment as per provisions of Section 25-H of the Industrial Disputes Act. On
this point, pleadings of respondent No. 2 are quite material which would throw sufficient light in
the manner respondent No. 2 had ignored the mandate of the order of Hon'ble High Court of H.P
for terminating letter of appointment dated 22-8-2013 for one year which was to expire on 21-8-
2014 whereas non-renewal was informed vide letter dated 4.8.2014 and at the same time salary of
one month as notice period was given as reflected in Mark-B. In said reply to claim petition,
respondent had stated in para No.12 admitting that Hon'ble High Court had directed vide order
dated 9.4.2015 not to terminate the services of claimant/petitioner who had not completed
contractual period however in para 13 of reply it is stated that service of petitioner had been
terminated after expiry of contractual period not in between or before its expiration. Above stated
pleadings in reply of respondent No. 2 are manifestly false as non-renewal was notified vide letter
dated 4-8-2014 whereas contractual appointment of petitioner was to expire on 21-8-2014. It was
admitted that Hon'ble High Court had also ordered in case fresh hands were engaged,
claimant/petitioner shall be given preference as per Section 25-H of the Industrial Disputes Act. To
meet the situation, respondent No. 2 has alleged that several posts of EMTs as well as interviews
were notified in local newspaper in State of H.P. but claimant/petitioner who was employee with
respondent No. 2 did not appear for interview and even the present claimant/petitioner never
applied or appeared at the time of interview when new persons/fresh hands had been engaged. On
this aspect, Section 25-H needs to be referred which provides that an opportunity was to be given to
the terminated employee while offering jobs to new recruits. In this case, local newspaper where
the posts advertised by respondent No. 2 was not produced in evidence but in such like situation
petitioner under Section 25-H of Industrial Disputes Act could be intimated through a notice in
writing by sending registered letter offering petitioner to work as EMT with respondent No. 2 as
before which has admittedly not been done establishing under the garb of interviews in local
newspapers which too had not been proved on record, respondent No. 2 had selected 82 EMTs and
for said reason the respondent No. 2 is held to have not followed mandate of order of Hon'ble High
Court in its letter and spirit, invading rights of petitioner under Section 25-H of the Industrial
Disputes Act as well. Be it stated that respondent No. 2 has also relied upon Mark-B which had
been put to petitioner in cross-examination by Ld. Counsel for respondent No. 2 showing that
petitioner had been given one month's salary as the notice period but factually respondent No. 2
was required to issue two months notice or salary in lieu thereof but plea of respondent No. 2 in
pleadings show that infact contract of employment was not renewed and therefore it could not be
inferred that any notice period or salary in lieu thereof was given to petitioner. As such, respondent
No. 2 had nowhere alleged that petitioner was given one month's salary in lieu of notice was under
obligation to issue notice of two months as per MOU Ex. PW1/A-1 signed between State of H.P.
and respondent No. 2 if contractual employment of petitioner was to be terminated. In such like
situation, it may not be erroneous to state that plea of respondent No. 2 is inconsistent as on one
hand it talks about non-renewal of contractual appointment which too was not after expiry but
before expiry and on the other hand claims to have issued notice of one month's as reflected Mark-
'B' its document showed that respondent No. 2 had paid one month's salary in lieu of notice for the
month of August, 2014. As such, the act and conduct of respondent No. 2 as discussed above
entitles petitioner reinstatement in service on the same terms and conditions on which petitioner
was rendering service before. Since petitioner had neither alleged in claim petition nor led evidence
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that he had remained unemployed after removal from service, petitioner could not at all be awarded
back wages. In view of aforegoing discussions, issue No.1 is decided as stated above whereas issue
No. 2 is answered holding that petitioner is liable to be reinstated in service forthwith and issue
No.7 is answered in negative in favour of petitioner for the reason as discussed in foregoing paras
of award.
Issue Nos. 3 And 5:
35. Ld. Counsel for the respondent No. 2 has argued that claim petition is not
maintainable. As has been discussed in foregoing paras that petitioner had been removed in
violation of agreement Ex. PW1/A-1 between State of H. P. and respondent No. 2 as notice of two
months or two months salary was not paid to petitioner. Thus, action of respondent No. 2 in
terminating the services of petitioner was with malafide object and the petitioner being aggrieved
with the act of the respondent No. 2 could legitimately raise industrial dispute as has also been
observed by Hon'ble High Court in order dated 9-4-2015 Ex. PW1/Q. In so far as objection of
respondent Nos. 1 and 3 are concerned suffice would be state here that respondent No. 3 is no more
in dispute with petitioner or respondent No. 2 as agreement dated 10-8-2013 with respondent No. 2
had come to an end after three years in August, 2013 and period in which petitioner was terminated
from service was on 4.8.2014 as earlier letter of appointment dated 22-8-2013 was issued by
respondent No. 2. In so far objection of respondent No.1 that petition was not maintainable against
it as respondent no.1 was not Principal Employer of petitioner, there is definite findings in
foregoing paras of award that respondent No.1 was not Principal Employer as infact respondent
No.2 was Principal Employer when petitioner was appointed on 22-8-2013 and contractual
appointment was not renewed in 2014. Issue No. 3 is answered negative and in favour of petitioner
to that extent and against respondent No.2 however in affirmative against respondent Nos. 1 and 3
as stated above. In view of foregoing discussion issue No.3 is answered in negative in favour of
petitioner and against the respondent No.2.
Issue Nos. 4, 6 8 and 9
36. All these issues were not pressed by Ld. Counsel for respondent Nos. 2 and 3. As such,
these issues are decided as unpressed in favour of the petitioner and against the respondent No. 2
and 3. Be it stated that onus of proof on these issues were of respondent Nos. 2 and 3. Accordingly,
issue No.4, 6, 8 and 9 are decided in negative in favour of petitioner and against the respondent No.
2 and 3.
RELIEF
37. As sequel to my findings on foregoing issues, the reference/claim petition is allowed
partly. Accordingly, the respondent No. 2 is hereby directed to re-engage the petitioner forthwith
with on same terms and conditions as before except back wages besides that respondent No. 2
shall pay Rs.10,000/- to the petitioner as litigation costs. However, the claim petition against
respondent Nos. 1 and 3 is dismissed with no orders as to costs.
38. The reference is answered in the aforesaid terms.
39. A copy of this Award be sent to the appropriate Government for publication in the
official gazette.
40. File, after due completion be consigned to the Record Room.
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Announced in the open Court today this 7th day of October, 2017.
Sd/-
(K.K. Sharma)
Presiding Judge,
Labour Court-cum-Industrial Tribunal,
Kangra at Dharamshala, H.P.
___________
IN THE COURT OF SHRI K .K. SHARMA, PRESIDING JUDGE, LABOUR COURT-
CUM-INDUSTRIAL TRIBUNAL, KANGRA AT DHARAMSHALA (H.P.)
Ref. No.
: 139/2013
Date of Institution : 09-09-2013
Date of Decision
: 09-10-2017
Shri Prem Chand s/o Shri Mahant Ram, r/o Village Kaloga, P.O. Mandap, Tehsil Sarkaghat,
District Mandi, H.P.
. .Petitioner.
Versus
The Executive Engineer Himachal Pradesh State Electricity Board, Division Dharampur,
District Mandi, H.P.
...Respondent.
Reference under Section 10 (1) of the Industrial Disputes Act, 1947
For the Petitioner
: Sh. Vinesh Dhiman, Adv.
For the Respondent : Sh. B.K. Sood, Adv.
AWARD
The reference given below has been received from the appropriate Government for
adjudication:
“Whether termination of the services of Sh. Prem Chand son of Sh. Mahant Ram, resident
of Village Kaloga, P.O. Mandap, Tehsil Sarkaghat, Distt. Mandi, H.P. by The Executive
Engineer, Himachal Pradesh State Electricity Board, Division Dharampur, Distt. Mandi
(H.P.) w.e.f. 21-7-1998 without complying the provisions of the Industrial Disputes Act,
1947 is legal and justified? If not, what amount of back wages, seniority, past service
benefits and compensation the above aggrieved workman is entitled to from the above
employer?”
2. On receipt of reference from appropriate government, notices were issued to the parties
in pursuance to which claimant/petitioner has filed statement of claim.
3. Brief facts as stipulated in the claim petition revealed that petitioner had been engaged
as beldar/daily wager by respondent No.1 in Sub Division Dharampur on muster-roll basis in April
1993 whose job continued till June 1993 who was again engaged in the month of June 1993 till
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March 1994. After that for one month and thereafter for three months when his services were
terminated as there existed no post of labourer in Division Sarkaghat however if future vacancy
arose, the petitioner would be engaged again. Averments made in the claim petition further
revealed that petitioner had been again engaged on 26-5-1998 when he continued to work upto 20th
July, 1998 and on 21st July, 1998 the service of petitioner had been orally terminated by respondent
without following mandatory provisions envisaged under Industrial Disputes Act as well as in
violation of respondent's own Standing Orders. It further revealed that petitioner had worked with
respondent more than 18 months whose services had been terminated in violation of provisions of
Sections 25-G, 25-H and 25-N of the Industrial Disputes Act and as such the impugned order qua
termination was in violation of mandatory provisions. The grievance of the petitioner also remains
that several workers junior to the petitioner namely Trilok Chand s/o Rikhi Ram, Ajeet Singh s/o
Bidhi Singh, Dharm Chand s/o Sh. Shankar Dass, Dharam Chand s/o Bhagat Ram, Kashmir Singh
s/o Sobha Ram, Sh. Sohan Singh s/o Ram Dass had been retained in service whereas petitioner was
disengaged from his service and despite request for employing him again followed by a legal notice
to respondent No.1 to allow him to join duty but in vain. It is also alleged that the services of
petitioner had been deliberately interrupted by giving fictional breaks on account of alleged
cessation of work in order to stop the petitioner to complete 240 days in a calendar year.
Accordingly, it is also alleged that as per provisions contained in Standing Orders the workers who
had not completed 240 days are required to be given 10 days notice for retrenchment which had not
been done by the respondent. As such, respondent is stated to have retrenched the service of the
petitioner without prior notice as stated above and at the same time no retrenchment compensation
had been given to him. Accordingly, petitioner prays to declare order of termination of the services
of petitioner null and void with further prayer for consequential relief and all the other allowances
such as back wages, seniority, past service benefits and compensation alongwith interest and to
other relief, petitioner is found entitle.
4. The respondent contested claim petition, filed reply inter-alia taken preliminary
objections of maintainability, cause of action. On merits denied that petitioner had been engaged in
Dharampur Sub Division but petitioner had been engaged in Sub Division Tihra which at the time
was within domain of Electrical Division Sarkaghat. While referring to mandays chart in para No.1
of reply respondent has specifically alleged that petitioner had worked for 15 days from 6-9-93 to
20-9-93 for which muster-roll No. 427/93 had been issued, 30 days from 21-9-93 to 20-10-93 on
muster roll No. 434/93, 31 days from 21-10-93 to 20-11-93 for which muster roll No.504/93 had
been issued, 6 days from 21-11-93 to 20-12-93 for which muster-roll No. 599/93 had been issued,
25 days from 26-5-98 to 20-6-98 under muster-roll No. 39/98 and 22 days from 21-6-98 to 20-7-98
for which muster-roll No. 41/98 had been issued. Thus respondent has admitted to have engaged
petitioner as detailed in para No.1 of the reply but denied that persons whose names are mentioned
in para No. 2 were junior to petitioner besides emphasized that petitioner had himself
left/abandoned his job and therefore he could not have been compelled to join the service and
therefore it could not be stated that provisions of Sections 25-G, 25-H and 25-N had been violated.
It is also asserted that claim petition is not within limitation which has been filed with the object of
to harass the replying respondent. It is also alleged that once petitioner himself abandoned the job,
then no question arises to stop the petitioner to complete 240 days. It is also emphasized that
provisions of Sections stated above under the Industrial Disputes Act could be attracted only when
the services of petitioner had been terminated rather petitioner is stated to have abandoned the job.
The respondent while contesting the claim petition had also referred to decision dated 18-12-2012
in pursuance to which Hon'ble High Court of H.P. on the basis of CWP No. 9440/12 titled as Bilu
Ram vs. State of H.P. in which respondent has asserted its stand that respondent was not making
any fresh recruitment. It further remains the case of respondent that there is no requirement of
additional manpower with the respondent board and therefore in view of decision taken in letter
dated 18-12-2012 did not require reengagement of the petitioner moreso when petition is stated to
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be hopelessly time barred as reference has been made after lapse of 15 years from last employment
of petitioner on 20-7-1998. Accordingly, petition is sought to be dismissed.
5. The petitioner filed rejoinder, reiterated his stand as maintained in the claim petition.
6. In order to prove his case, petitioner had examined himself as PW1, PW2 Sh. Gian
Chand, PW3 Sh. Roop Lal, PW4 Sh. Ravi Kumar, PW5 Sh. Kamlesh Kumar, tendered/proved their
affidavits Ex. PW1/A, PW2/A, PW3/A, PW4/A and PW5/A under Order 18 Rule 4 CPC, copy of
seniority list Mark-A, copy of letter issued to the Labour Officer, Mandi Mark-B, copy of working
days of daily waged workers Mark-C, copy of letter dated 25-9-2007 Mark-D, copy of letter dated
nil regarding reinstatement on the post of daily wager Mark-E, copy of legal notice dated 21.7.1998
Mark-F, copy of legal notice dated 22-7-1998 Mark-G, copy of legal notice dated nil Mark-H,
Copy of muster-rolls Ex. C1 to C7, copy of RTI letter dated 24-6-2016 Ex. P1, copy of muster-roll
Ex. P2, copy of service particulars of electrical Beldar Ex. P3 and closed evidence. On the other
hand, repudiating the evidence led by the petitioner, respondent examined RW1 Shri Sant Ram, Sr.
Executive Engineer, Electrical Division, Dharampur, HPSEB Ltd. as RW1 tendered/proved his
affidavit Ex. RW1/A and closed the evidence. Therefore petitioner had moved an application under
Rule 15 of the Industrial Disputes Act, 1947 read with Section 151 CPC for leading additional
evidence which was allowed by this Court on 8-4-2016 in pursuance to which petitioner had led
additional evidence examined PW4 Sh. Ravi Kumar, Junior Assistant O/o Electrical Sub Division
Tihra, HPSEB, Tehsil Sarkaghat, District Mandi, H.P. tendered/proved copy of muster roll Ex. C1
to C7. PW5 Sh. Kamlesh Kumar Gautam, Addl. Asstt. Engineer O/o SEE, Electrical Division
HPSEB, Tehsil Sarkaghat, District Mandi, H.P. tendered/proved Ex.P1 to Ex. P3 and closed
evidence. Respondent however, did not lead any additional evidence as is evident from statement
recorded on 05-11-2016.
7. I have heard the Ld. Counsel of petitioner and Ld. Counsel representing respondents,
gone through records of the case carefully relevant for disposed of this case.
8. From the contentions raised, following issues were framed on 01-3-2014 for
determination:
1. Whether the termination of the services of the petitioner by the respondent w.e.f.
21-7-1998 is/was illegal and unjustified as alleged?
..OPP.
2. Whether the petitioner has a cause of action?
..OPP.
3. Whether the claim petition is not maintainable in the present form?
..OPR.
4. Relief.
9. For the reasons detailed hereunder, my findings on the above issues are as follows:—
Issue No.1 : Discussed
Issue No. 2 : Discussed
Issue No.3 : No
Relief : Petition is partly allowed awarding compensation of Rs.70,000/- per operative
part of award.
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REASONS FOR FINDINGS
Issues No .1 To 3
10. All these issues have been taken up together for discussion being interconnected which
can be disposed of simultaneously without repetition of evidence.
11. At the outset, it is apt to mention here that respondent in its reply has specifically
admitted in para No.1 of claim petition that petitioner had worked for 129 days in all 15 days, 30
days, 31 days, 6 days as against muster roll no.427/93, 434/93, 504/93, 599/93 and 25 days and 22
days as against muster-rolls No. 39/98 and 41/98 which showed that petitioner had factually not
worked for 240 days. The case of respondent also remains that petitioner had worked under Sub
Division Tihra which at that time was under the territorial jurisdiction of Electrical Sub Division
Sarkagaht however Sub Division Dharampur was created in the year 2000 as per evidence on
record. Although, respondent in its reply had admitted that petitioner was engaged in Sub Division
Tihra which was under Electrical Division Sarkaghat but the claim of the petitioner also remains
that he had worked for more than 240 days contrary to allegation of respondent in para No.1 of
reply but documentary evidence does not support the plea of petitioner for having worked for 240
days. It also remains the case of petitioner that fictional breaks had been given in service
deliberately by the respondent in violation of the Section 25-B of the Act but again there is no
corresponding evidence to establish this plea of petitioner. Enough has been emphasized by Ld.
Counsel for respondent that petitioner had worked in Tihra Sub Division whereas he had claimed
that he had been engaged for the first time in April, 1993 in Sub Division Dharampur which was
not existence in the year 2000. To appreciate evidence in this regard, it would be relevant to go
through testimony of RW1 Shri S.R. Garg, Sr. Executive Engineer, Electrical Division Dharampur
in which he has specifically admitted that petitioner had worked initially Tihra Sub Division and
Dharampur Sub Division was created in 2000 which also fell within Electrical Division Sarkaghat.
Since all these Sub Divisions fell under Electrical Division Sarkaghat, it could be inferred that Sub
Division Tihra which was in existence prior to Dharampur Sub Division was the place of work of
petitioner but while filing claim petition, petitioner had confined his claim as against Sub Division
Sarkaghat. The factual matrix of the case remains that petitioner had worked in Tihra Sub Division
as per the reply filed by the respondents. Thus, when both the Divisions were under same Electrical
Division Sarkaghat, the error in not knowing the Division by petitioner who himself is illiterate
person about place where he was factually first engaged does not make his case false particularly
when respondent has admitted him to be employee of respondent moreover when Sub Division
Tihra fell under Electrical Division Sarkagaht as Sub Division Dharampur also fell under the
Electrical Division Sarkaghat. Be it stated that respondent in its reply as well as evidence has not
clarified if Sub Division Tihra was under Sub Division Dharampur at any point of time when in the
year 2000 it was created. Thus, evidence goes in favour of petitioner and petitioner could not be
dislodged merely on the basis of his claim confined to Dharampur Sub Division and error to this
could be on account of his illiteracy and lack of knowledge. Certainly, per evidence on record
adduced by both the parties, petitioner had failed to prove that he had factually worked for
continuously 240 days prior his alleged illegal oral termination of service and testimony of
petitioner to this extent to have worked for 240 days prior to his illegal termination merits rejection
and this Court is left with no option but to hold that respondent had not violated the provisions of
Section 25-F of the Industrial Disputes Act because petitioner has not completed 240 days
preceding his date of termination.
12. Ld. Counsel for the respondent at the time of arguments emphasized that petitioner had
abandoned the job and therefore no question of termination of services requiring issuance of notice
either under the Standing Rules or under the provisions of Section 25-F of the Industrial Disputes
Act. In so far as plea of abandonment raised by respondent is concerned, the same merits rejection
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in view of the fact that respondent had failed to produce any record by which it could be established
that whenever petitioner absented from his duty as also reflected in mandays chart Ex. RW1/B any
notice or letter was ever issued to him calling upon to join duty. On this point respondent as RW1
has specifically admitted that whenever petitioner abandoned the job, no notice had been issued.
RW1 specifically admitted that no departmental inquiry was initiated against petitioner whenever
he absented from duty. No reason whatsoever has been assigned for such inaction or omission on
the part of respondent in not initiating any departmental proceedings or making correspondence
calling upon the petitioner to join service which prima facie belies stand taken by the respondent as
abandonment has to be proved like any other fact in issue. The petitioner, on the other hand, as
PW1 in cross-examination has specifically denied that he used to leave the job in between and
attended the work intermittently rather he has claimed that intermit breaks had been deliberately
given to him by the respondent in the service record of petitioner so that petitioner did not complete
240 days of work which entitled him benefit of Section 25-B of the Act. In view of foregoing plea
of respondent that petitioner had abandoned the job and therefore did not require issuance of notice
is fallacious when specific evidence has not been led by the respondent qua abandonment of job by
petitioner and respondent to issue notice under the Standing Orders as well as provisions of Section
25-F of the industrial Disputes Act. As such, the respondent could not derive any benefit from pleas
of abandonment of job by the petitioner. In any case the respondent would also not derive any
benefits from respondent having failed to establish plea of abandonment as there is no authenticated
evidence establishing that petitioner had worked 240 days at any time as required under law. As
such, in absence of any specific and reliable evidence led by respondent, it would be unsafe to hold
that respondent had established plea of abandonment.
13. In so far as violation of provisions of Section 25-G of the Industrial Disputes Act is
concerned from Standing Order of the Himachal Pradesh State Electricity Board, it would be
relevant to go through documentary evidence on record adduced by petitioner. Ld. Counsel for
petitioner as per Ex. P1 tentative seniority list of T/mate (W/C), as it stood on 1-1-2010 in respect
of Electrical Division, HPSEB, Dharampur which showed that S/Sh. Trilok Chand, Ajeet Singh,
Shakti Chand and Dharam Chand were posted in ESD Sandhole and were working temporarily who
had joined on 20-11-2002 and 19-1-2007 respectively. As per Ex. P2 petitioner is shown at serial
No.10 when muster-roll dated 8-4-1993 was issued. Ex. P3 is the seniority list of Electrical Beldar
(daily wages) under Electrical Division HPSEB, Sarkaghat ending on 30th April, 1996. This list is
spread over in six pages in which Beldar/daily wagers who had been engaged from 1981 till 1994
have been shown. In the year 1992 Balbir Chand and Shakuntla Devi are shown to have joined in
1992 and thereafter no one has been shown to have been engaged in 1993 the year in which present
petitioner and his two other colleague workers whose service were terminated were not shown.
Thereafter, in the year 1994, three persons Shambu Ram, Prem Raj and Amar Singh are shown to
have appointed or engaged. Thus, this document prima facie substantiate the plea of petitioner qua
non inclusion of name of present claim petitioner and two others Hari Chand and Hem Singh in the
seniority list Ex. P3. Thus, names of present petitioner had not been included in the list of
employees engaged as Electrical Beldar (daily wages) engagement between 1981 till 1994. Mark-A
is the provisional seniority list of daily wages Beldar working under Electrical Division Sarkaghat
as on 01-4-2001 which shows engagement of Trilok Chand in 1993, Ajeet Singh in 1994, Dharam
Chand in 1996, Dharam Pal in 1996 and Kashmir Singh in 1996. Said Trilok Chand is shown to
have been appointed on 13-10-1993 whereas present claim petitioner had been engaged in April,
1993. Exts. C1, C2, C3, C4, C5, C6 and C7 are the muster-rolls showing engagement of petitioner.
As such, per documentary evidence it is established that petitioner had been engaged in April 1993
and not in September, 1993 as claimed by respondent and one Trilok Chand shown in Ex. P1 had
worked with petitioner who was engaged much later i.e. in October 1993 but name of petitioner and
two other who joined 1993 was not reflected. Ex. P1 although shows Trilok Chand had been
engaged temporarily on 2-11-2002 but claim of petitioner is not falsified more particularly in view
of evasive reply of RW1 who has shown ignorance if Trilok Chand was engaged on 2-11-2002 and
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petitioner was engaged at the same time. Significantly, RW1 admitted that petitioner had issued
legal notice Mark-F to Sarkaghat Division but the respondent/board had not given any reply. As the
contents of notice were not proved in view of the fact that said document has not been exhibited but
answer of RW1 who has admitted issuance of notice by petitioner has to be interpreted in favour of
the petitioner to the extent that certainly notice was given when the services of petitioner had been
terminated in the year 1998 as admitted by RW1 and that notice had remained un-replied.
14. PW4 Ravi Kumar, Junior Assistant in the office of Electrical Sub Division Tihra,
HPSEB has deposed that he had not brought any seniority list of daily casual labourers although
proved muster -olls Ex. C1 to C7. It is specifically stated that no seniority list was prepared. PW5
Sh. Kamlesh Kumar, Addl. Engineer in the office of SEE, Electrical Division HPSEB, Sarkaghat
has stated to have not brought any seniority list although PW4 proved muster-rolls. He has
specifically stated that as per the record, there is no seniority list of casual labourers who are merely
issued casual cards. Cross-examinations of these witnesses of respondent examined by petitioner
revealed that petitioner had remained posted under Sarkaghat Division prior to September 2009. As
such, from testimony of PWs no seniority list was prepared makes stand of respondent for having
not prepared seniority list gets falsified as petitioner in his claim has tendered tentative seniority list
as reflected in Ex. P1 obtained by petitioner under RTI Act. In view of the testimonies of the
officials of the HPSEB, it is also established that no seniority list was prepared although list Ex. P3
was prepared which did not relate to the present claim petition particularly when name of petitioner
was not included. Since name of the petitioner was not reflected in the list which was of
beldar/daily wages as on 30-4-1996 it shows that the name of petitioner was deliberately not
included to defeat his claim and at the same time it has been pointed out by the official that no
seniority list was prepared. In so far as judgment of AIR 2015 SC 1373 titled as Mackinon
Machenize & Company Ltd. vs. Mackinon Employees Union is concerned, the Hon'ble Apex
Court has held on closure of unit of company principle of "Last come First go" was not followed
which violated Section 25-G of Industrial Disputes Act and retrenchment was held illegal entitling
petitioner for retrenchment compensation. Since the facts of case of Mackinon Machenize's case
are different from case in hand as in former closure of unit of company was involved whereas in
case in hand before this court, there is no closure of company rather it is the department of HPSEB
which had engaged petitioner without following of the procedure although subject to funds and
availability of work but in the case in hand petitioner had not abandoned the job by not reporting
for duty. As such, when there is no closure of any unit by respondent which the petitioner was
engaged, judgment of Mackinon Machenize cannot be applied in facts and circumstances of this
case. Be it noticed that there is sufficient reliable evidence on record that after termination of
service of petitioner, several new juniors had joined.
15. Ld. Counsel for the petitioner has relied upon the judgment of Hon'ble H.P. High Court
reported in Latest HLJ 2012 (HP) 591 titled as Secretary, HPSEB, Kumar House, Shimla and
Anr. vs. Sh. Piar Chand and Anr., the relevant para of the judgment is reproduced below for
reference:—
“Industrial Disputes Act, 1947-Section 25-G read with clause 14(2) of the Certified
Standing Orders Reinstatement. Dispensing with the service when illegal-oral removal
illegal-Respondent engaged as Beldar-He had not completed 240 days in calendar
year-His services would not be dispensed with orally as per standing order-10 days
notice required-The court below correctly appreciated the fact and law laid down”.
16. It can be safely observed from the above judgment that under Section 25-G read with
Clause 14(2) Certified Standing Orders, the services of the petitioner could not be dispensed with
by removal by oral order. As the respondent in the case before Hon'ble High Court had not
completed 240 days in a calendar year however the services could not be dispensed with as per
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Certified Standing Orders as it was required that petitioner should have been serves 10 days notice
under Clause 14(2) of Certified Standing Orders. Applying the ratio of the above said judgment, it
may not be erroneous to hold that petitioner had not served any notice although he was engaged
and disengaged twice in the year 1993 as well as in 1998. As such, the action of respondents in not
complying with the mandate of above-said provisions clearly vitiate termination of the services of
petitioner as has been held in judgment (2012) supra. As has come in the evidence that respondent
has admitted that petitioner was engaged as labourer on different dates as enumerated in para No.1
of reply, it would not be material fact it had inadvertently alleged that he had been engaged in
either Sub Division Tihra or Sub Division Dharampur which certainly fell under Electrical Division
Sarkaghat. Ld. Counsel for the respondent has emphasized that once the petitioner has failed to
establish that he had worked under Dharampur initially the same is fatal to case of petitioner but
respondent had admitted engagement of petitioner several times as stated in foregoing paras, it
could not be stated that claim of petitioner is false but due to petitioner's having worked under
Electrical Division Sarkaghat, he was employee/worker of respondent and his services were
illegally terminated by the respondent without following the provisions of Section 25-G of the
Industrial Disputes Act as well Certified Standing Orders of the respondent which required
respondent to issue notice of 10 days.
17. Ld. Counsel for respondent has vehemently contended that petitioner was out of
employment from 20-7-1998 and the reference by Labour Commissioner had been made after lapse
of 15 years. As such, claim for reengagement is stated be patently time barred moreover there is
also decision as enumerated in para No.5 of reply which showed regarding decision was taken on
18-12-2012 and the same was placed before the Hon'ble High Court in pursuance to order of
Hon'ble High Court, be it stated that respondent had not filed copy of order. As such, the policy
concerning reengagement could not be looked as against the claim of petitioner however in so far
delay in filing of claim petition it relevant to go through reference No.140/2013 received from
Labour Commissioner, Govt. of Himachal Pradesh in the month of August, 2013 which shows that
petitioner raised demand on 28-7-2004 regarding his illegal termination from service by the
Executive Engineer when matter was referred to Labour Officer-cum-Conciliation Officer, Mandi,
H.P. who submitted his failure report and the Labour Commissioner rejected the claim for making
reference vide order dated 17-8-2006. In pursuance to which CWP No.76/2008 which was decided
on 26-7-2013 vide which plea of petitioner was accepted quashing the order dated 17-8-2006
directing the Labour Commissioner to make reference to Industrial Tribunal in accordance with
law. Therefore reference was made under the provisions of Industrial Disputes Act which was
received on 29-8-2013. As such, petitioner has issued demand notice after his termination in the
year 1998 after gap of six years. A period of two years has been taken in proceedings before the
Labour Officer-cum-Conciliation Officer, Mandi who submitted failure report and Labour
Commissioner declined to make reference which was challenged after two years although petitioner
had remained litigating at different stages but had sufficient explanation for non issuance of
demand notice immediately when his services were terminated in the year 1998. As such, the
reference received from the Labour Commissioner shows that petitioner had issued demand notice
on 28-7-2004 after gap of above six years. As such, there is unexplained delay as per law laid down
in the Ajayab Singh vs. Sirhind Co-operative Marketing-cum-Processing Society Limited and
Another, (1999) 6 SCC 82 however the Hon'ble Apex Court held that the principle of Limitation
Act, 1963 did not apply to the proceeding under the Industrial Disputes Act.
18. Relying upon the aforestated judgment, it has been contended that claim of petitioner
cannot be defeated on the point of delay and laches. Repudiating arguments advanced by Ld.
counsel for petitioner, Ld. counsel has placed reliance upon the judgment of Hon'ble Apex Court
titled as Assistant Engineer, Rajasthan State Agriculture Marketing Board, Sub-Division
Kota and Mohan Lal [2013 (139) FLR 125], the relevant para of the judgment are produced
below for reference:
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Industrial Disputes Act, 1947-Sections 25-F and 10- Limitation Act, 1963- Section 5-
Industrial dispute-Termination of service-Finding of Labour Court that workman had
completed 240 days in calendar year and her termination was in violation of section 25-F of
the I.D.Act- Workman worked from 1-11-1984 to 17-2-1986 in all 286 days during
employment. Her services terminated on 18-2-1986. Industrial dispute raised after 6 years
of termination. Admitted delay of 6 years not kept in view by the Labour Court- Judicial
discretion exercised by the Labour Court flawed and unsustainable. Reinstatement of the
workman not the appropriate relief. In lieu of reinstatement compensation of Rs. one lac
directed to be paid to the workman by the appellant employer within six weeks failing
which interest @ 9% p.a. will be payable.
[Paras 21 and 22]
Limitation Act, 1963. Section 5- Industrial Disputes Act, 1947- Section 25-F- Termination
of service- Industrial dispute raised after six years- Limitation Act not applicable to
reference made under the I.D. Act-Delay in raising industrial disputes definitely an
important circumstances which the Labour Court must keep in view before granting
relief.
19. Repudiating the arguments by Ld. Counsel for the respondents, Ld. Counsel for
claimant/petitioner has relied upon the judgment of Hon'ble Apex Court in case titled as Tapash
Kumar Paul vs. BSNL & another reported in AIR 2015 SC 357 wherein Hon'ble Court held that
a Court may pass an order of reinstatement by awarding compensation but the same has to be based
on justifiable grounds. In this judgment, it was held that compensation can be granted in a situation
where the industry is closed or that employees has superannuated or going to retire shortly and no
period is left to his credit or where workman has been rendered in capacitated to discharge duties
cannot be reinstated and/or fourthly when he has lost confidence of the management to discharge
duties. It was observed that there may be appropriate cases on facts which may justify substituting
an order of reinstatement by award of compensation but that has to be supported by some legal
and justifiable reasons indicating why the reinstatement should be followed to be substituted
by award of compensation. Ld. Counsel for the petitioner with the aid of above-said judgment had
argued that there are only four situations when a worker may be awarded compensation instead of
reinstatement but the judgment has certainly not been correctly appreciated by Ld. Counsel as this
judgment postulates probable four situations which are illustrative in nature where compensation
may be awarded instead of reinstatement but that does not mean that except the four grounds, no
other ground would be appropriate for awarding compensation. In the case in hand before this
court, it has come that petitioner had abandoned the job who did not report for duty for several
years and later gave notice requesting for joining of duties but the conditions in para No.5 of
judgment (2015 supra) even if not met requirement, cannot be a ground to reinstate the petitioner
and it is only compensation which would be appropriate relief. Ld. counsel for the petitioner has
relied upon the judgment of Hon'be Apex Court titled as Deepali Gundu Surwase vs. Kranti
Junior Adhyapak Mahavidyalaya (D.Ed.) and Ors. reported in AIR 2014 SC (Supp) 121,
Raghubir Singh vs. General Manager, Haryana Roadways, Hissar reported in 2014(3) Apex
Court Judgments 652. I have gone through these judgments and of view that they don't come to
rescue the petitioner on point of reinstatement instead of compensation. Ld. Counsel for
respondents on the other hand has relied upon the judgment of Hon'ble Apex Court in Vice
Chancellor, Lucknow University, Lucknow, Uttar Pradesh v. Akhilesh Kumar Khare &
another reported in AIR 2015 SC 3473. It has been contended that engagement of
claimant/petitioner in this case was not through regular mode of recruitment and applying the ratio
of this judgment AIR 2015 SC supra, claim of petitioner for reinstatement can be negated and thus
compensation would be sufficient for redressal of grievance of the claimant/petitioner. Similarly, in
2016 (1) Him. L.R. 502 titled as State of Himachal Pradesh and another vs. Chaman Singh
relied by Ld. AR for petitioner interpretation of Section 137 of Limitation Act was involved which
provides that Article 137 of Limitation Act did not apply to industrial disputes. In 2014 (3) Apex
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Court Judgment 652 (SC) similar view was reiterated which clearly mandates that
claimant/petitioner cannot be denied relief sought for merely on the ground of delay and laches.
That being so, the law remains as it was that ground of delay and laches, claimant/petitioner cannot
be denied relief rather the court has to consider various aspects before moulding relief and the case
in hand it would not be erroneous to mention here that the claimant/petitioner can be reasonably
indemnified by ordering compensation and not by reinstatement.
20. After hearing the rival contentions of the parties and case law relied by them, it can be
safely concluded that delay in raising industrial dispute is certainly important aspect/circumstance
which court has to be kept in mind while exercising discretion. In para Nos. 20 and 21 of the
judgment as referred to in this case reported in 2013 (136) FLR 893 (SC) titled as Assistant
Engineer Rajasthan Development Corporation and another vs. Geetam Singh provides that
before exercising its judicial discretion, the Labour Court or Tribunal has to keep in mind all
relevant factors including the mode and manner of appointment, nature of employment, length of
service, the ground on which termination has been set aside and delay in raising industrial dispute
before grant of relief. It was observed by the Hon'ble Apex Court in judgment (2013 supra) before
that workman had worked for 286 days and had raised industrial dispute in 1992 whereas her
services have been terminated in 1986 and she raised industrial dispute after six years. The Hon'ble
Apex Court has held that though compensation awarded by Single Judge of the Hon'ble High Court
was too low and liable to be enhanced by the Division Bench but surely reinstatement of the
workman in the facts and circumstances is not the appropriate relief and thus Hon'ble Apex
Court awarded a lump-sum of Rs.1 lakh alongwith interest @ 9% per annum if the respondent
failed to make payment of compensation within six weeks from the date of judgment. In the case in
hand before this court factors which have weighed are that the petitioner in all remained engaged
for about 02 years and actually worked for 129 days as per mandays chart on record and that the
services of petitioner were disengaged in 1998 who worked as non skilled worker and had raised
industrial dispute by issuance of demand notice after about six years. Taking into consideration
factors mentioned above in pursuance to judgments of Hon'ble Apex Court referred to above,
petitioner would not be entitled either for reinstatement or for back wages but a lump-sum
compensation would be appropriate relief in view of judgment 2013 (139) FLR 25 (SC). The
judgments relied upon by Ld. counsel for petitioner on the matter of delay and laches is more or
less settled law that claim of the petitioner could not be solely declined on the ground of delay and
laches. Similarly, judgment of Hon'ble Apex Court in 2014 titled as Raghubir Singh's case also
does not come to the rescue of the petitioner as in this judgment also the Hon'ble Apex Court has
reiterated the mandate as given by the Hon'ble Apex Court in previous judgment in the year 2013
i.e. Assistant Engineer, Rajasthan State Agriculture Marketing Board, Sub-Division Kota
and Mohan Lal's case. I have gone through aforestated judgments relied upon by petitioner which
are not applicable in this present case as this court has not declined relief to the petitioner on the
ground of limitation rather on the basis of guidelines of Hon'ble Apex Court laid down in judgment
of 2013 (supra). In view of foregoing discussion, a lump-sum compensation of Rs.70,000/-
(Rupees seventy thousand only) would be an appropriate relief to which the petitioner is entitled in
the facts and circumstances of the case as stated above. It is further made clear that amount of
compensation shall be paid within four months from the date of receipt of Award failing which the
petitioner would be entitled for interest @ 9% per annum from date of Award till its realization.
Issues No. 1 to 3 are answered accordingly.
RELIEF
21. As sequel to my findings on foregoing issues, the respondent is hereby directed to pay
the compensation of Rs.70,000/- (Rupees seventy thousand only) to the petitioner in lieu of the
reinstatement, back wages, seniority and past service benefits. Amount of compensation so
awarded will be paid by the respondent to the petitioner within four months from the date of receipt
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of Award failing which the respondent shall be liable to pay the interest @ 9% per annum on the
said amount from the date of award till the date of its realization. In the peculiar circumstances of
the case, the parties are left to bear their own costs.
22. The reference is answered in the aforesaid terms.
23. A copy of this Award be sent to the appropriate Government for publication in the
official gazette.
24. File, after due completion be consigned to the Record Room.
Announced in the open Court today this 9th day of October, 2017.
Sd/-
(K. K. Sharma),
Presiding Judge,
Labour Court-cum-Industrial Tribunal,
Kangra at Dharamshala, H.P.
__________
IN THE COURT OF K. K. SHARMA, PRESIDING JUDGE, LABOUR COURT-CUM-
INDUSTRIAL TRIBUNAL, KANGRA AT DHARAMSHALA (HP)
Ref. No.
: 140/2013
Date of Institution : 09-09-2013
Date of Decision
: 09-10-2017
Shri Hem Singh s/o Shri Bhutoo Ram, r/o Village Kaloga, P.O. Mandap, Tehsil Sarkaghat,
District Mandi, H.P.
…Petitioner.
Versus
The Executive Engineer Himachal Pradesh State Electricity Board, Division Dharampur,
District Mandi, H.P.
...Respondent.
Reference under Section 10 (1) of the Industrial Disputes Act, 1947
For the Petitioner
: Sh. Vinesh Dhiman, Adv.
For the Respondent : Sh. B.K. Sood, Adv.
AWARD
The reference given below has been received from the appropriate Government for
adjudication:
“Whether the termination of the services of Shri. Hem Singh s/o Shri Bhutoo Ram, resident
of Village Kaloga, P.O. Mandap, Tehsil Sarkaghat, Distt. Mandi, H.P. by The Executive
Engineer, Himachal Pradesh State Electricity Board, Division Dharampur, Distt. Mandi,
(H.P.) w.e.f. 21-7-1998 without complying the provisions of the Industrial Disputes Act,
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1947 is legal and justified? If not, what amount of back wages, seniority, past service
benefits and compensation the above aggrieved workman is entitled to from the above
employer?”
2. On receipt of reference from appropriate government, notices were issued to the parties
in pursuance to which claimant/petitioner has filed statement of claim.
3. Brief facts as stipulated in the claim petition revealed that petitioner had been engaged
as Beldar/daily wager by respondent No.1 in Sub Division Dharampur on muster-roll basis in April
1993 whose job continued till June, 1993 who was again engaged in the month of June 1993 till
March, 1994. After that for one month and thereafter for three months when his services were
terminated as there existed no post of labourer in Division Sarkaghat however if future vacancy
arose, the petitioner would be engaged again. Averments made in the claim petition further
revealed that petitioner had been again engaged on 26-5-1998 when he continued to work upto 20th
July, 1998 and on 21st July, 1998 the service of petitioner had been orally terminated by respondent
without following mandatory provisions envisaged under Industrial Disputes Act as well as in
violation of respondent's own Standing Orders. It further revealed that petitioner had worked with
respondent more than 18 months whose services had been terminated in violation of provisions of
Sections 25-G, 25-H and 25-N of the Industrial Disputes Act and as such the impugned order qua
termination was in violation of mandatory provisions. The grievance of the petitioner also remains
that several workers junior to the petitioner namely Trilok Chand s/o Rikhi Ram, Ajeet Singh s/o
Bidhi Singh, Dharm Chand s/o Sh. Shankar Dass, Dharam Chand s/o Bhagat Ram, Kashmir Singh
s/o Sobha Ram, Sh. Sohan singh s/o Ram Dass had been retained in service whereas petitioner was
disengaged from his service and despite request for employing him again followed by a legal notice
to respondent No.1 to allow him to join duty but in vain. It is also alleged that the services of
petitioner had been deliberately interrupted by giving fictional breaks on account of alleged
cessation of work in order to stop the petitioner to complete 240 days in a calendar year.
Accordingly, it is also alleged that as per provisions contained in Standing Orders the workers who
had not completed 240 days are required to be given 10 days notice for retrenchment which had not
been done by the respondent. As such, respondent is stated to have retrenched the service of the
petitioner without prior notice as stated above and at the same time no retrenchment compensation
had been given to him. Accordingly, petitioner prays to declare order of termination of the services
of petitioner null and void with further prayer for consequential relief and all the other allowances
such as back wages, seniority, past service benefits and compensation alongwith interest and to
other relief, petitioner is found entitle.
4. The respondent contested claim petition, filed reply inter-alia taken preliminary
objections of maintainability, cause of action. On merits denied that petitioner had been engaged in
Dharampur Sub Division but petitioner had been engaged in Sub Division Tihra which at the time
was within domain of Electrical Division Sarkaghat. While referring to mandays chart in para No.1
of reply respondent has specifically alleged that petitioner had worked for 15 days from 6-9-93 to
20-9-93 for which muster-roll No.427/93 had been issued, 30 days from 21-9-93 to 20-10-93 on
muster roll no.434/93, 31 days from 21-10-93 to 20-11-93 for which muster-roll No.504/93 had
been issued, 10 days from 21-11-93 to 20-12-93 for which muster-roll No.599/93 had been issued,
25 days from 26-5-98 to 20-6-98 under muster-roll No. 39/98 and 22 days from 21-6-98 to 20-7-98
for which muster-roll No.41/98 had been issued. Thus respondent has admitted to have engaged
petitioner as detailed in para no.1 of the reply but denied that persons whose names are mentioned
in para No.2 were junior to petitioner besides emphasized that petitioner had himself left/
abandoned his job and therefore he could not have been compelled to join the service and therefore
it could not be stated that provisions of Sections 25-G, 25-H and 25-N had been violated. It is also
asserted that claim petition is not within limitation which has been filed with the object of to harass
the replying respondent. It is also alleged that once petitioner himself abandoned the job, then no
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question arises to stop the petitioner to complete 240 days. It is also emphasized that provisions of
Sections stated above under the Industrial Disputes Act could be attracted only when the services of
petitioner had been terminated rather petitioner is stated to have abandoned the job. The respondent
while contesting the claim petition had also referred to decision dated 18-12-2012 in pursuance to
which Hon'be High Court of H.P. on the basis of CWP No. 9440/12 titled as Bilu Ram vs. State of
H.P. in which respondent has asserted its stand that respondent was not making any fresh
recruitment. It further remains the case of respondent that there is no requirement of additional
manpower with the respondent board and therefore in view of decision taken in letter dated
18-12-2012 did not require reengagement of the petitioner moreso when petition is stated to be
hopelessly time barred as reference has been made after lapse of 15 years from last employment of
petitioner on 20-7-1998. Accordingly, petition is sought to be dismissed.
5. The petitioner filed rejoinder, reiterated his stand as maintained in the claim petition.
6. In order to prove his case, petitioner had examined himself as PW1, PW2 Sh. Gian
Chand, PW3 Sh. Roop Lal, PW4 Sh. Ravi Kumar, PW5 Sh. Kamlesh Kumar, tendered/proved their
affidavits Ex. PW1/A, PW2/A, PW3/A, PW4/A and PW5/A under Order 18 Rule 4 CPC, copy of
seniority list Mark-A, copy of letter issued to the Labour Officer, Mandi Mark-B, copy of working
days of daily waged workers Mark-C, copy of letter dated 25-9-2007 Mark-A, copy of letter dated
nil regarding reinstatement on the post of daily wager Mark-E, copy of legal notice dated 21.7.1998
Mark-F, copy of legal notice dated 22-7-1998 Mark-G, copy of legal notice dated nil Mark-H,
Copy of muster-rolls Ex. C1 to C7, copy of RTI letter dated 24-6-2016 Ex. P1, copy of muster roll
Ex. P2, copy of service particulars of electrical Beldar Ex. P3 and closed evidence. On the other
hand, repudiating the evidence led by the petitioner, respondent examined RW1 Shri Sant Ram, Sr.
Executive Engineer, Electrical Division, Dharampur, HPSEB Ltd. as RW1 tendered/proved his
affidavit Ex. RW1/A and closed the evidence. Therefore petitioner had moved an application under
Rule 15 of the Industrial Disputes Act, 1947 read with Section 151 CPC for leading additional
evidence which was allowed by this Court on 8-4-2016 in pursuance to which petitioner had led
additional evidence examined PW4 Sh. Ravi Kumar, Junior Assistant O/o Electrical Sub Division
Tihra, HPSEB, Tehsil Sarkaghat, District Mandi, H.P. tendered/proved copy of muster-roll Ex. C1
to C7. PW5 Sh. Kamlesh Kumar Gautam, Addl. Asstt. Engineer o/o SEE, Electrical Division
HPSEB, Tehsil Sarkaghat, District Mandi, H.P. tendered/proved Ex.P1 to Ex. P3 and closed
evidence. Respondent however, did not lead any additional evidence as is evident from statement
record on 05-11-2016.
7. I have heard the ld. counsel of petitioner and Ld. Counsel representing respondents,
gone through records of the case carefully relevant for disposed of this case.
8. From the contentions raised, following issues were framed on 01-3-2014 for
determination:
1. Whether the termination of the services of the petitioner by the respondent w.e.f.
21-7-1998 is/was illegal and unjustified as alleged?
...OPP.
2. Whether the petitioner has a cause of action?
...OPP.
3. Whether the claim petition is not maintainable in the present form?
...OPR.
4. Relief.
9. For the reasons detailed here under, my findings on the above issues are as follows:—
Issue No.1 : Discussed
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Issue No.2 : Discussed
Issue No.3 : No
Relief. : Petition is partly allowed awarding compensation of Rs.70,000/- per operative
part of award.
REASONS FOR FINDINGS
ISSUES No. 1 to 3
10. All these issues have been taken up together for discussion being interconnected which
can be disposed of simultaneously without repetition of evidence.
11. At the outset, it is apt to mention here that respondent in its reply has specifically
admitted in para No.1 of claim petition that petitioner had worked for 133 days in all 15 days, 30
days, 31 days, 10 days as against muster roll no.427/93, 434/93, 504/93, 599/93 and 25 days and 22
days as against muster-rolls No. 39/98 and 41/98 which showed that petitioner had factually not
worked for 240 days. The case of respondent also remains that petitioner had worked under Sub
Division Tihra which at that time was under the territorial jurisdiction of Electrical Sub Division
Sarkaghat however Sub Division Dharampur was created in the year 2000 as per evidence on
record. Although respondent in its reply had admitted that petitioner was engaged in Sub Division
Tihra which was under Electrical Division Sarkaghat but the claim of the petitioner also remains
that he had worked for more than 240 days contrary to allegation of respondent in para No.1 of
reply but documentary evidence does not support the plea of petitioner for having worked for 240
days. It also remains the case of petitioner that fictional breaks had been given in service
deliberately by the respondent in violation of the Section 25-B of the Act but again there is no
corresponding evidence to establish this plea of petitioner. Enough has been emphasized by Ld.
Counsel for respondent that petitioner had worked in Tihra Sub Division whereas he had claimed
that he had been engaged for the first time in April 1993 in Sub Division Dharampur which was not
existence in the year 2000. To appreciate evidence in this regard, it would be relevant to go through
testimony of RW1 Shri S.R. Garg, Sr. Executive Engineer, Electrical Division Dharampur in which
he has specifically admitted that petitioner had worked initially Tihra Sub Division and Dharampur
Sub Division was created in 2000 which also fell within Electrical Division Sarkaghat. Since all
these Sub Divisions fell under Electrical Division Sarkaghat, it could be inferred that Sub Division
Tihra which was in existence prior to Dharampur Sub Division was the place of work of petitioner
but while filing claim petition, petitioner had confined his claim as against Sub Division Sarkaghat.
The factual matrix of the case remains that petitioner had worked in Tihra Sub Division as per the
reply filed by the respondents. Thus, when both the Divisions were under same Electrical Division
Sarkaghat, the error in not knowing the Division by petitioner who himself is illiterate person about
place where he was factually first engaged does not make his case false particularly when
respondent has admitted him to be employee of respondent moreover when Sub Division Tihra fell
under Electrical Division Sarkagaht as Sub Division Dharampur also fell under the Electrical
Division Sarkaghat. Be it stated that respondent in its reply as well as evidence has not clarified if
Sub Division Tihra was under Sub Division Dharampur at any point of time when in the year 2000
it was created. Thus, evidence goes in favour of petitioner and petitioner could not be dislodged
merely on the basis of his claim confined to Dharampur Sub Division and error to this could be on
account of his illiteracy and lack of knowledge. Certainly, per evidence on record adduced by both
the parties, petitioner had failed to prove that he had factually worked for continuously 240 days
prior his alleged illegal oral termination of service and testimony of petitioner to this extent to have
worked for 240 days prior to his illegal termination merits rejection and this Court is left with no
option but to hold that respondent had not violated the provisions of Section 25-F of the Industrial
Disputes Act because petitioner has not completed 240 days preceding his date of termination.
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12. Ld. Counsel for the respondent at the time of arguments emphasized that petitioner had
abandoned the job and therefore no question of termination of services requiring issuance of notice
either under the Standing Rules or under the provisions of Section 25-F of the Industrial Disputes
Act. In so far as plea of abandonment raised by respondent is concerned, the same merits rejection
in view of the fact that respondent had failed to produce any record by which it could be established
that whenever petitioner absented from his duty as also reflected in mandays chart Ex. RW1/B any
notice or letter was ever issued to him calling upon to join duty. On this point, respondent as RW1
has specifically admitted that whenever petitioner abandoned the job, no notice had been issued.
RW1 specifically admitted that no departmental inquiry was initiated against petitioner whenever
he absented from duty. No reason whatsoever has been assigned for such inaction or omission on
the part of respondent in not initiating any departmental proceedings or making correspondence
calling upon the petitioner to join service which prima facie belies stand taken by the respondent as
abandonment has to be proved like any other fact in issue. The petitioner, on the other hand, as
PW1 in cross-examination has specifically denied that he used to leave the job in between and
attended the work intermittently rather he has claimed that intermit breaks had been deliberately
given to him by the respondent in the service record of petitioner so that petitioner did not complete
240 days of work which entitled him benefit of Section 25-B of the Act. In view of foregoing plea
of respondent that petitioner had abandoned the job and therefore did not require issuance of notice
is fallacious when specific evidence has not been led by the respondent qua abandonment of job by
petitioner and respondent to issue notice under the Standing Orders as well as provisions of Section
25-F of the industrial Disputes Act. As such, the respondent could not derive any benefit from pleas
of abandonment of job by the petitioner. In any case the respondent would also not derive any
benefits from respondent having failed to establish plea of abandonment as there is no authenticated
evidence establishing that petitioner had worked 240 days at any time as required under law. As
such, in absence of any specific and reliable evidence led by respondent, it would be unsafe to hold
that respondent had established plea of abandonment.
13. In so far as violation of provisions of Section 25-G of the Industrial Disputes Act is
concerned from Standing Order of the Himachal Pradesh State Electricity Board, it would be
relevant to go through documentary evidence on record adduced by petitioner. Ld. counsel for
petitioner as per Ex. P1 tentative seniority list of T/mate (W/C), as it stood on 1-1-2010 in respect
of Electrical Division, HPSEB, Dharampur which showed that S/Sh. Trilok Chand, Ajeet Singh,
Shakti Chand and Dharam Chand were posted in ESD Sandhole and were working temporarily who
had joined on 20-11-2002 and 19-1-2007 respectively. As per Ex. P2 petitioner is shown at serial
No.11 when muster-roll dated 8-4-1993 was issued. Ex. P3 is the seniority list of Electrical Beldar
(daily wages) under Electrical Division HPSEB, Sarkaghat ending on 30th April, 1996. This list is
spread over in six pages in which Beldar/daily wagers who had been engaged from 1981 till 1994
have been shown. In the year 1992 Balbir Chand and Shakuntla Devi are shown to have joined in
1992 and thereafter no one has been shown to have been engaged in 1993 the year in which present
petitioner and his two other colleague workers whose service were terminated were not shown.
Thereafter, in the year 1994, three persons Shambu Ram, Prem Raj and Amar Singh are shown to
have appointed or engaged. Thus, this document prima facie substantiate the plea of petitioner qua
non inclusion of name of present claim petitioner and two others Hari Chand and Prem Chand in
the seniority list Ex. P3. Thus, names of present petitioner had not been included in the list of
employees engaged as Electrical Beldar (daily wages) engaged between 1981 till 1994 . Mark-A is
the provisional seniority list of daily wages Beldar working under Electrical Division Sarkaghat as
on 01-4-2001 which shows engagement of Trilok Chand in 1993, Ajeet Singh in 1994, Dharam
Chand in 1996, Dharam Pal in 1996 and Kashmir Singh in 1996. Said Trilok Chand is shown to
have been appointed on 13-10-1993 whereas present claim petitioner had been engaged in April,
1993. Exts. C1, C2, C3, C4, C5, C6 and C7 are the muster rolls showing engagement of petitioner.
As such, per documentary evidence it is established that petitioner had been engaged in April 1993
and not in September, 1993 as claimed by respondent and one Trilok Chand shown in Ex. P1 had
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worked with petitioner who was engaged much later i.e. in October, 1993 but name of petitioner
and two other who joined 1993 was not reflected. Ex. P1 although shows Trilok Chand had been
engaged temporarily on 2-11-2002 but claim of petitioner is not falsified more particularly in view
of evasive reply of RW1 who has shown ignorance if Trilok Chand was engaged on 2-11-2002 and
petitioner was engaged at the same time. Significantly, RW1 admitted that petitioner had issued
legal notice Mark-F to Sarkaghat Division but the respondent/board had not given any reply. As the
contents of notice were not proved in view of the fact that said document has not been exhibited but
answer of RW1 who has admitted issuance of notice by petitioner has to be interpreted in favour of
the petitioner to the extent that certainly notice was given when the services of petitioner had been
terminated in the year 1998 as admitted by RW1 and that notice had remained un-replied.
14. PW4 Ravi Kumar, Junior Assistant in the office of Electrical Sub Division Tihra,
HPSEB has deposed that he had not brought any seniority list of daily casual labourers although
proved muster-rolls Ex. C1 to C7. It is specifically stated that no seniority list was prepared. PW5
Sh. Kamlesh Kumar, Addl. Engineer in the office of SEE, Electrical Division HPSEB, Sarkaghat
has stated to have not brought any seniority list although PW4 proved muster rolls. He has
specifically stated that as per the record, there is no seniority list of casual labourers who are merely
issued casual cards. Cross-examinations of these witnesses of respondent examined by petitioner
revealed that petitioner had remained posted under Sarkaghat Division prior to September, 2009.
As such, from testimony of PWs no seniority list was prepared makes stand of respondent for
having not prepared seniority list gets falsified as petitioner in his claim has tendered tentative
seniority list as reflected in Ex. P1 obtained by petitioner under RTI Act. In view of the testimonies
of the officials of the HPSEB, it is also established that no seniority list was prepared although list
Ex. P3 was prepared which did not relate to the present claim petition particularly when name of
petitioner was not included. At this stage, it is also relevant to mention here that reply to the claim
petition in para no.1 shows that petitioner's name was mentioned as Prem Chand but when RW1
examined on this aspect by Ld. Counsel for the petitioner had specifically admitted that in the
mandays chart referred in para No.1 of reply, the name of petitioner has been written as Prem
Chand which was factually typing mistake and thus ambiguity shown in reply gets settled from
cross-examination of RW1and name of petitioner is same as mentioned in claim petition. Since
name of the petitioner was not reflected in the list which was of Beldar/daily wages as on
30-4-1996 it shows that the name of petitioner was deliberately not included to defeat his claim and
at the same time it has been pointed out by the official that no seniority list was prepared. In so far
as judgment of AIR 2015 SC 1373 titled as Mackinon Machenize & Company Ltd. vs.
Mackinon Employees Union is concerned, the Hon'ble Apex Court has held on closure of unit of
company principle of "Last come First go" was not followed which violated Section 25-G of
Industrial Disputes Act and retrenchment was held illegal entitling petitioner for retrenchment
compensation. Since the facts of case of Mackinon Machenize's case are different from case in
hand as in former closure of unit of company was involved whereas in case in hand before this
court, there is no closure of company rather it is the department of HPSEB which had engaged
petitioner without following of the procedure although subject to funds and availability of work but
in the case in hand petitioner had not abandoned the job by not reporting for duty. As such, when
there is no closure of any unit by respondent which the petitioner was engaged, judgment of
Mackinon Machenize cannot be applied in facts and circumstances of this case. Be it noticed that
there is sufficient reliable evidence on record that after termination of service of petitioner, several
new juniors had joined.
15. Ld. Counsel for the petitioner has relied upon the judgment of Hon'ble H.P. High Court
reported in Latest HLJ 2012 (HP) 591 titled as Secretary, HPSEB, Kumar House, Shimla and
Anr. vs. Sh. Piar Chand and Anr., the relevant para of the judgment is reproduced below for
reference:—
“Industrial Disputes Act, 1947-Section 25-G read with clause 14(2) of the Certified
Standing Orders. Reinstatement. Dispensing with the service when illegal-oral removal
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illegal-Respondent engaged as Beldar-He had not completed 240 days in calendar
year-His services would not be dispensed with orally as per standing order-10 days
notice required-The court below correctly appreciated the fact and law laid down”.
16. It can be safely observed from the above judgment that under Section 25-G read with
Clause 14(2) Certified Standing Orders, the services of the petitioner could not be dispensed with
by removal by oral order. As the respondent in the case before Hon'ble High Court had not
completed 240 days in a calendar year however the services could not be dispensed with as per
Certified Standing Orders as it was required that petitioner should have been served 10 days notice
under Clause 14(2) of Certified Standing Orders. Applying the ratio of the above said judgment, it
may not be erroneous to hold that petitioner had not served any notice although he was engaged
and disengaged twice in the year 1993 as well as in 1998. As such, the action of respondents in not
complying with the mandate of above-said provisions clearly vitiate termination of the services of
petitioner as has been held in judgment (2912) supra. As has come in the evidence that respondent
has admitted that petitioner was engaged as labourer on different dates as enumerated in para No.1
of reply, it would not be material fact it had inadvertently alleged that he had been engaged in
either Sub Division Tihra or Sub Division Dharampur which certainly fell under Electrical Division
Sarkaghat. Ld. Counsel for the respondent has emphasized that once the petitioner has failed to
establish that he had worked under Dharampur initially the same is fatal to case of petitioner but
respondent had admitted engagement of petitioner several times as stated in foregoing paras, it
could not be stated that claim of petitioner is false but due to petitioner's having worked under
Electrical Division Sarkaghat, he was employee/worker of respondent and his services were
illegally terminated by the respondent without following the provisions of Section 25-G of the
Industrial Disputes Act as well Certified Standing Orders of the respondent which required
respondent to issue notice of 10 days.
17. Ld. Counsel for respondent has vehemently contended that petitioner was out of
employment from 20-7-1998 and the reference by Labour Commissioner had been made after lapse
of 15 years. As such, claim for reengagement is stated be patently time barred moreover there is
also decision as enumerated in para No.5 of reply which showed regarding decision was taken on
18-12-2012 and the same was placed before the Hon'ble High Court in pursuance to order of
Hon'ble High Court, be it stated that respondent had not filed copy of order. As such, the policy
concerning reengagement could not be looked as against the claim of petitioner however in so far
delay in filing of claim petition it relevant to go through reference No.140/2013 received from
Labour Commissioner, Govt. of Himachal Pradesh in the month of August, 2013 which shows that
petitioner raised demand on 28-7-2004 regarding his illegal termination from service by the
Executive Engineer when matter was referred to Labour Officer-cum-Conciliation Officer, Mandi,
H.P. who submitted his failure report and the Labour Commissioner rejected the claim for making
reference vide order dated 17-8-2006. In pursuance to which CWP No.76/2008 which was decided
on 26-7-2013 vide which plea of petitioner was accepted quashing the order dated 17-8-2006
directing the Labour Commissioner to make reference to Industrial Tribunal in accordance with
law. Therefore reference was made under the provisions of Industrial Disputes Act which was
received on 29-8-2013. As such, petitioner has issued demand notice after his termination in the
year 1998 after gap of six years. A period of two years has been taken in proceedings before the
Labour Officer-cum-Conciliation Officer, Mandi who submitted failure report and Labour
Commissioner declined to make reference which was challenged after two years although petitioner
had remained litigating at different stages but had sufficient explanation for non issuance of
demand notice immediately when his services were terminated in the year 1998. As such, the
reference received from the Labour Commissioner shows that petitioner had issued demand notice
on 28-7-2004 after gap of above six years. As such, there is unexplained delay as per law laid down
in the Ajayab Singh vs. Sirhind Co-operative Marketing-cum-Processing Society Limited and
Another, (1999) 6 SCC 82 however the Hon'ble Apex Court held that the principle of Limitation
Act, 1963 did not apply to the proceeding under the Industrial Disputes Act.
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18. Relying upon the aforestated judgment, it has been contended that claim of petitioner
cannot be defeated on the point of delay and laches. Repudiating arguments advanced by Ld.
Counsel for petitioner, Ld. Counsel has placed reliance upon the judgment of Hon'ble Apex Court
titled as Assistant Engineer, Rajasthan State Agriculture Marketing Board, Sub-Division
Kota and Mohan Lal [2013 (139) FLR 125], the relevant para of the judgment are produced
below for reference:
Industrial Disputes Act, 1947-Sections 25-F and 10- Limitation Act, 1963- Section 5-
Industrial dispute-Termination of service-Finding of Labour Court that workman had
completed 240 days in calendar year and her termination was in violation of section 25-F of
the I.D.Act- Workman worked from 1-11-1984 to 17-2-1986 in all 286 days during
employment. her services terminated on 18-2-1986. Industrial dispute raised after 6 years of
termination. Admitted delay of 6 years not kept in view by the Labour Court- Judicial
discretion exercised by the Labour Court flawed and unsustainable. Reinstatement of the
workman not the appropriate relief. In lieu of reinstatement compensation of Rs.one lac
directed to be paid to the workman by the appellant employer within six weeks failing
which interest @ 9% p.a. will be payable.
[Paras 21 and 22]
Limitation Act, 1963. Section 5- Industrial Disputes Act, 1947- Section 25-F- Termination
of service- Industrial dispute raised after six years- Limitation Act not applicable to
reference made under the I.D. Act-Delay in raising industrial disputes definitely an
important circumstances which the Labour Court must keep in view before granting
relief.
19. Repudiating the arguments by Ld. Counsel for the respondents, Ld. Counsel for
claimant/petitioner has relied upon the judgment of Hon'ble Apex Court in case titled as Tapash
Kumar Paul vs. BSNL & another reported in AIR 2015 SC 357 wherein Hon'ble Court held that
a Court may pass an order of reinstatement by awarding compensation but the same has to be based
on justifiable grounds. In this judgment, it was held that compensation can be granted in a situation
where the industry is closed or that employees has superannuated or going to retire shortly and no
period is left to his credit or where workman has been rendered in capacitated to discharge duties
cannot be reinstated and/or fourthly when he has lost confidence of the management to discharge
duties. It was observed that there may be appropriate cases on facts which may justify substituting
an order of reinstatement by award of compensation but that has to be supported by some legal
and justifiable reasons indicating why the reinstatement should be followed to be substituted
by award of compensation. Ld. Counsel for the petitioner with the aid of above-said judgment had
argued that there are only four situations when a worker may be awarded compensation instead of
reinstatement but the judgment has certainly not been correctly appreciated by Ld. Counsel as this
judgment postulates probable four situations which are illustrative in nature where compensation
may be awarded instead of reinstatement but that does not mean that except the four grounds, no
other ground would be appropriate for awarding compensation. In the case in hand before this
court, it has come that petitioner had abandoned the job who did not report for duty for several
years and later gave notice requesting for joining of duties but the conditions in para no.5 of
judgment (2015 supra) even if not met requirement, cannot be a ground to reinstate the petitioner
and it is only compensation which would be appropriate relief. Ld. counsel for the petitioner has
relied upon the judgment of Hon'be Apex Court titled as Deepali Gundu Surwase vs. Kranti
Junior Adhyapak Mahavidyalaya (D.Ed.) and Ors. reported in AIR 2014 SC (Supp) 121,
Raghubir Singh vs. General Manager, Haryana Roadways, Hissar reported in 2014(3) Apex
Court Judgments 652. I have gone through these judgments and of view that they don't come to
rescue the petitioner on point of reinstatement instead of compensation. Ld. Counsel for
respondents on the other hand has relied upon the judgment of Hon'ble Apex Court in Vice
Chancellor, Lucknow University, Lucknow, Uttar Pradesh v. Akhilesh Kumar Khare &
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another reported in AIR 2015 SC 3473. It has been contended that engagement of claimant/
petitioner in this case was not through regular mode of recruitment and applying the ratio of this
judgment AIR 2015 SC supra, claim of petitioner for reinstatement can be negated and thus
compensation would be sufficient for redressal of grievance of the claimant/petitioner. Similarly, in
2016 (1) Him. L.R. 502 titled as State of Himachal Pradesh and another vs. Chaman Singh
relied by Ld. AR for petitioner interpretation of Section 137 of Limitation Act was involved which
provides that Article 137 of Limitation Act did not apply to industrial disputes. In 2014 (3) Apex
Court Judgment 652 (SC) similar view was reiterated which clearly mandates that
claimant/petitioner cannot be denied relief sought for merely on the ground of delay and laches.
That being so, the law remains as it was that ground of delay and laches, claimant/petitioner cannot
be denied relief rather the court has to consider various aspects before moulding relief and the case
in hand it would not be erroneous to mention here that the claimant/petitioner can be reasonably
indemnified by ordering compensation and not by reinstatement.
20. After hearing the rival contentions of the parties and case law relied by them, it can be
safely concluded that delay in raising industrial dispute is certainly important aspect/circumstance
which court has to be kept in mind while exercising discretion. In para Nos. 20 and 21 of the
judgment as referred to in this case reported in 2013 (136) FLR 893 (SC) titled as Assistant
Engineer Rajasthan Development Corporation and another vs. Geetam Singh provides that
before exercising its judicial discretion, the Labour Court or Tribunal has to keep in mind all
relevant factors including the mode and manner of appointment, nature of employment, length of
service, the ground on which termination has been set aside and delay in raising industrial dispute
before grant of relief. It was observed by the Hon'ble Apex Court in judgment (2013 supra) before
that workman had worked for 286 days and had raised industrial dispute in 1992 whereas her
services have been terminated in 1986 and she raised industrial dispute after six years. The Hon'ble
Apex Court has held that though compensation awarded by Single Judge of the Hon'ble High Court
was too low and liable to be enhanced by the Division Bench but surely reinstatement of the
workman in the facts and circumstances is not the appropriate relief and thus Hon'ble Apex
Court awarded a lump-sum of Rs.1 lakh alongwith interest @ 9% per annum if the respondent
failed to make payment of compensation within six weeks from the date of judgment. In the case in
hand before this court factors which have weighed are that the petitioner in all remained engaged
for about 02 years and actually worked for 133 days as per mandays chart on record and that the
services of petitioner were disengaged in 1998 who worked as non skilled worker and had raised
industrial dispute by issuance of demand notice after about six years. Taking into consideration
factors mentioned above in pursuance to judgments of Hon'ble Apex Court referred to above,
petitioner would not be entitled either for reinstatement or for back wages but a lump-sum
compensation would be appropriate relief in view of judgment 2013 (139) FLR 25 (SC). The
judgments relied upon by Ld. Counsel for petitioner on the matter of delay and laches is more or
less settled law that claim of the petitioner could not be solely declined on the ground of delay and
laches. Similarly, judgment of Hon'ble Apex Court in 2014 titled as Raghubir Singh's case also
does not come to the rescue of the petitioner as in this judgment also the Hon'ble Apex Court has
reiterated the mandate as given by the Hon‟ble Apex Court in previous judgment in the year 2013
i.e. Assistant Engineer, Rajasthan State Agriculture Marketing Board, Sub-Division Kota
and Mohan Lal's case. I have gone through aforestated judgments relied upon by petitioner which
are not applicable in this present case as this court has not declined relief to the petitioner on the
ground of limitation rather on the basis of guidelines of Hon'ble Apex Court laid down in judgment
of 2013 (supra). In view of foregoing discussion, a lump-sum compensation of Rs.70,000/-
(Rupees seventy thousand only) would be an appropriate relief to which the petitioner is entitled in
the facts and circumstances of the case as stated above. It is further made clear that amount of
compensation shall be paid within four months from the date of receipt of Award failing which the
petitioner would be entitled for interest @ 9% per annum from the date of Award till its realization.
Issues No. 1 to 3 are answered accordingly.
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RELIEF
21. As sequel to my findings on foregoing issues, the respondent is hereby directed to pay
the compensation of Rs.70,000/- (Rupees seventy thousand only) to the petitioner in lieu of the
reinstatement, back wages, seniority and past service benefits. Amount of compensation so
awarded will be paid by the respondent to the petitioner within four months from the date of receipt
of Award failing which the respondent shall be liable to pay the interest @ 9% per annum on the
said amount from the date of award till the date of its realization. In the peculiar circumstances of
the case, the parties are left to bear their own costs.
22. The reference is answered in the aforesaid terms.
23. A copy of this Award be sent to the appropriate Government for publication in the
official gazette.
24. File, after due completion be consigned to the Record Room.
Announced in the open Court today this 9th day of October, 2017.
Sd/-
(K. K. Sharma),
Presiding Judge,
Labour Court-cum-Industrial Tribunal,
Kangra at Dharamshala, H.P.
__________
IN THE COURT OF SHRI K. K. SHARMA, PRESIDING JUDGE, LABOUR COURT-
CUM-INDUSTRIAL TRIBUNAL, KANGRA AT DHARAMSHALA (HP)
Ref. No.
: 141/2013
Date of Institution : 09-09-2013
Date of Decision
: 09-10-2017
Shri Hari Chand s/o Shri Parma Ram, r/o Village Kaloga, P.O. Mandap, Tehsil Sarkaghat,
District Mandi, H.P.
..Petitioner.
Versus
The Executive Engineer Himachal Pradesh State Electricity Board, Division Dharampur,
District Mandi, H.P.
..Respondent.
Reference under Section 10 (1) of the Industrial Disputes Act, 1947
For the Petitioner
: Sh. Vinesh Dhiman, Adv.
For the Respondent : Sh. B.K. Sood, Adv.
AWARD
The reference given below has been received from the appropriate Government for
adjudication:
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“Whether termination of the services of Sh. Hari Chand S/O Shri Parma Ram, resident of
Village Kaloga, P.O. Mandap, Tehsil Sarkaghat, Distt. Mandi, H.P. by The Executive
Engineer, Himachal Pradesh State Electricity Board, Division Dharampur, Distt. Mandi,
(H.P.) w.e.f. 21-7-1998 without complying the provisions of the Industrial Disputes Act,
1947 is legal and justified? If not, what amount of back wages, seniority, past service
benefits and compensation the above aggrieved workman is entitled to from the above
employer?”
2. On receipt of reference from appropriate government, notices were issued to the parties
in pursuance to which claimant/petitioner has filed statement of claim.
3. Brief facts as stipulated in the claim petition revealed that petitioner had been engaged
as beldar/daily wager by respondent no.1 in Sub Division Dharampur on muster-roll basis in April,
1993 whose job continued till June 1993 who was again engaged in the month of June 1993 till
March 1994. After that for one month and thereafter for three months when his services were
terminated as there existed no post of labourer in Division Sarkaghat however if future vacancy
arose, the petitioner would be engaged again. Averments made in the claim petition further
revealed that petitioner had been again engaged on 26-5-1998 when he continued to work upto 20th
July, 1998 and on 21st July, 1998 the service of petitioner had been orally terminated by respondent
without following mandatory provisions envisaged under Industrial Disputes Act as well as in
violation of respondent's own Standing Orders. It further revealed that petitioner had worked with
respondent more than 18 months whose services had been terminated in violation of provisions of
Sections 25-G, 25-H and 25-N of the Industrial Disputes Act and as such the impugned order qua
termination was in violation of mandatory provisions. The grievance of the petitioner also remains
that several workers junior to the petitioner namely Trilok Chand s/o Rikhi Ram, Ajeet Singh s/o
Bidhi Singh, Dharm Chand s/o Sh. Shankar Dass, Dharam Chand s/o Bhagat Ram, Kashmir Singh
s/o Sobha Ram, Sh. Sohan singh s/o Ram Dass had been retained in service whereas petitioner was
disengaged from his service and despite request for employing him again followed by a legal notice
to respondent No.1 to allow him to join duty but in vain. It is also alleged that the services of
petitioner had been deliberately interrupted by giving fictional breaks on account of alleged
cessation of work in order to stop the petitioner to complete 240 days in a calendar year.
Accordingly, it is also alleged that as per provisions contained in Standing Orders the workers who
had not completed 240 days are required to be given 10 days notice for retrenchment which had not
been done by the respondent. As such, respondent is stated to have retrenched the service of the
petitioner without prior notice as stated above and at the same time no retrenchment compensation
had been given to him. Accordingly, petitioner prays to declare order of termination of the services
of petitioner null and void with further prayer for consequential relief and all the other allowances
such as back wages, seniority, past service benefits and compensation alongwith interest and to
other relief, petitioner is found entitle.
4. The respondent contested claim petition, filed reply inter-alia taken preliminary
objections of maintainability, cause of action. On merits denied that petitioner had been engaged in
Dharampur Sub Division but petitioner had been engaged in Sub Division Tihra which at the time
was within domain of Electrical Division Sarkaghat. While referring to mandays chart in para No.1
of reply respondent has specifically alleged that petitioner had worked for 10 days from 21-8-93 to
20-9-93 for which muster roll No.427/93 had been issued, 28 days from 21-9-93 to 20-10-93 on
muster-roll No.434/93, 31 days from 21-10-93 to 20-11-93 for which muster roll No. 504/93 had
been issued, 18 days from 3-1-94 to 20.94 for which muster-roll No. 663/93 had been issued, 10
days from 21-1-94 to 30-1-94 under muster-roll No.735/94, 21 days from 31-1-94 to 20-2-94 for
which muster-roll No.738/94 had been issued and 23 days from 26-5-98 to 20-6-98 for which
muster-roll No.39/98 had been issued and 22 days from 21-6-98 to 20-7-98. for which muster roll
No.41/98 had been issued. Thus respondent has admitted to have engaged petitioner as detailed in
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para no.1 of the reply but denied that persons whose names are mentioned in para No.2 were junior
to petitioner besides emphasized that petitioner had himself left/abandoned his job and therefore he
could not have been compelled to join the service and therefore it could not be stated that
provisions of Sections 25-G, 25-H and 25-N had been violated. It is also asserted that claim petition
is not within limitation which has been filed with the object of to harass the replying respondent. It
is also alleged that once petitioner himself abandoned the job, then no question arises to stop the
petitioner to complete 240 days. It is also emphasized that provisions of Sections stated above
under the Industrial Disputes Act could be attracted only when the services of petitioner had been
terminated rather petitioner is stated to have abandoned the job. The respondent while contesting
the claim petition had also referred to decision dated 18-12-2012 in pursuance to which Hon‟be
High Court of H.P. on the basis of CWP No. 9440/12 titled as Bilu Ram vs. State of H.P. in which
respondent has asserted its stand that respondent was not making any fresh recruitment. It further
remains the case of respondent that there is no requirement of additional manpower with the
respondent board and therefore in view of decision taken in letter dated 18-12-2012 did not require
reengagement of the petitioner moreso when petition is stated to be hopelessly time barred as
reference has been made after lapse of 15 years from last employment of petitioner on 20-7-1998.
Accordingly, petition is sought to be dismissed.
5. The petitioner filed rejoinder, reiterated his stand as maintained in the claim petition.
6. In order to prove his case, petitioner had examined himself as PW1, PW2 Sh. Gian
Chand, PW3 Sh. Roop Lal, PW4 Sh. Ravi Kumar, PW5 Sh. Kamlesh Kumar, tendered/proved their
affidavits Ex. PW1/A, PW2/A, PW3/A, PW4/A and PW5/A under Order 18 Rule 4 CPC, copy of
seniority list Mark-A, copy of letter issued to the Labour Officer, Mandi Mark-B, copy of working
days of daily waged workers Mark-C, copy of letter dated 25-9-2007 Mark-D, copy of letter dated
nil regarding reinstatement on the post of daily wager Mark-E, copy of legal notice dated
21-7-1998 Mark-F, copy of legal notice dated 22-7-1998 Mark-G, copy of legal notice dated nil
Mark-H, Copy of muster rolls Ex. C1 to C7, copy of RTI letter dated 24-6-2016 Ex. P1, copy of
muster roll Ex. P2, copy of service particulars of electrical beldar Ex. P3 and closed evidence. On
the other hand, repudiating the evidence led by the petitioner, respondent examined RW1 Shri Sant
Ram, Sr. Executive Engineer, Electrical Division, Dharampur, HPSEB Ltd. as RW1
tendered/proved his affidavit Ex. RW1/A and closed the evidence. Therefore petitioner had moved
an application under Rule 15 of the Industrial Disputes Act, 1947 read with Section 151 CPC for
leading additional evidence which was allowed by this Court on 8-4-2016 in pursuance to which
petitioner had led additional evidence examined PW4 Sh. Ravi Kumar, Junior Assistant O/o
Electrical Sub Division Tihra, HPSEB, Tehsil Sarkaghat, District Mandi, H.P. tendered/proved
copy of muster-roll Ex. C1 to C7. PW5 Sh. Kamlesh Kumar Gautam, Addl. Asstt. Engineer o/o
SEE, Electrical Division HPSEB, Tehsil Sarkaghat, District Mandi, H.P. tendered/proved Ex.P1 to
Ex. P3 and closed evidence. Respondent however, did not lead any additional evidence as is
evident from statement record on 05-11-2016.
7. I have heard the ld. counsel of petitioner and ld. counsel representing respondents,
gone through records of the case carefully relevant for disposed of this case.
8. From the contentions raised, following issues were framed on 01-3-2014 for
determination:
1. Whether the termination of the services of the petitioner by the respondent w.e.f.
21-7-1998 is/was illegal and unjustified as alleged?
...OPP.
2. Whether the petitioner has a cause of action?
...OPP.
3. Whether the claim petition is not maintainable in the present form?
...OPR.
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4. Relief.
9. For the reasons detailed here under, my findings on the above issues are as follows:—
Issue No.1 : Discussed
Issue No.2 : Discussed
Issue No.3 : No
Relief : Petition is partly allowed awarding compensation of Rs.85,000/- per operative
part of award.
REASONS FOR FINDINGS
Issues No. 1 to 3
10. All these issues have been taken up together for discussion being interconnected which
can be disposed of simultaneously without repetition of evidence.
11. At the outset, it is apt to mention here that respondent in its reply has specifically
admitted in para No.1 of claim petition that petitioner had worked for 163 days in all 10 days, 28
days, 31 days, 18 days, 10 days, 21 dyas as against muster-roll No.427/93, 434/93, 504/93, 663/93,
735/94, 738/94 and 23 days & 22 days as against muster-rolls No. 39/98 and 41/98 which showed
that petitioner had factually not worked for 240 days. The case of respondent also remains that
petitioner had worked under Sub Division Tihra which at that time was under the territorial
jurisdiction of Electrical Sub Division Sarkagaht however Sub Division Dharampur was created in
the year 2000 as per evidence on record. Although respondent in its reply had admitted that
petitioner was engaged in Sub Division Tihra which was under Electrical Division Sarkaghat but
the claim of the petitioner also remains that he had worked for more than 240 days contrary to
allegation of respondent in para No.1 of reply but documentary evidence does not support the plea
of petitioner for having worked for 240 days. It also remains the case of petitioner that fictional
breaks had been given in service deliberately by the respondent in violation of the Section 25-B of
the Act but again there is no corresponding evidence to establish this plea of petitioner. Enough has
been emphasized by Ld. Counsel for respondent that petitioner had worked in Tihra Sub Division
whereas he had claimed that he had been engaged for the first time in April 1993 in Sub Division
Dharampur which was not existence in the year 2000. To appreciate evidence in this regard, it
would be relevant to go through testimony of RW1 Shri S. R. Garg, Sr. Executive Engineer,
Electrical Division Dharampur in which he has specifically admitted that petitioner had worked
initially Tihra Sub Division and Dharampur Sub Division was created in 2000 which also fell
within Electrical Division Sarkaghat. Since all these Sub Divisions fell under Electrical Division
Sarkaghat, it could be inferred that Sub Division Tihra which was in existence prior to Dharampur
Sub Division was the place of work of petitioner but while filing claim petition, petitioner had
confined his claim as against Sub Division Sarkaghat. The factual matrix of the case remains that
petitioner had worked in Tihra Sub Division as per the reply filed by the respondents. Thus, when
both the Divisions were under same Electrical Division Sarkaghat, the error in not knowing the
Division by petitioner who himself is illiterate person about place where he was first engaged does
not make his case false particularly when respondent has admitted him to be employee of
respondent moreover when Sub Division Tihra fell under Electrical Division Sarkagaht as Sub
Division Dharampur also fell under the Electrical Division Sarkaghat. Be it stated that respondent
in its reply as well as evidence has not clarified if Sub Division Tihra was under Sub Division
Dharampur at any point of time when in the year 2000 it was created. Thus, evidence goes in
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favour of petitioner and petitioner could not be dislodged merely on the basis of his claim confined
to Dharampur Sub Division and error to this could be on account of his illiteracy and lack of
knowledge. Certainly, per evidence on record adduced by both the parties, petitioner had failed to
prove that he had factually worked for continuously 240 days prior his alleged illegal oral
termination of service and testimony of petitioner to this extent to have worked for 240 days prior
to his illegal termination merits rejection and this Court is left with no option but to hold that
respondent had not violated the provisions of Section 25-F of the Industrial Disputes Act because
petitioner has not completed 240 days preceding his date of termination.
12. Ld. Counsel for the respondent at the time of arguments emphasized that petitioner had
abandoned the job and therefore no question of termination of services requiring issuance of notice
either under the Standing Rules or under the provisions of Section 25-F of the Industrial Disputes
Act. In so far as plea of abandonment raised by respondent is concerned, the same merits rejection
in view of the fact that respondent had failed to produce any record by which it could be established
that whenever petitioner absented from his duty as also reflected in mandays chart Ex. RW1/B any
notice or letter was ever issued to him calling upon to join duty. On this point, respondent as RW1
has specifically admitted that whenever petitioner abandoned the job, no notice had been issued.
RW1 specifically admitted that no departmental inquiry was initiated against petitioner whenever
he absented from duty. No reason whatsoever has been assigned for such inaction or omission on
the part of respondent in not initiating any departmental proceedings or making correspondence
calling upon the petitioner to join service which prima facie belies stand taken by the respondent as
abandonment has to be proved like any other fact in issue. The petitioner, on the other hand, as
PW1 in cross-examination has specifically denied that he used to leave the job in between and
attended the work intermittently rather he has claimed that intermit breaks had been deliberately
given to him by the respondent in the service record of petitioner so that petitioner did not complete
240 days of work which entitled him benefit of Section 25-B of the Act. In view of foregoing plea
of respondent that petitioner had abandoned the job and therefore did not require issuance of notice
is fallacious when specific evidence has not been led by the respondent qua abandonment of job by
petitioner and respondent to issue notice under the Standing Orders as well as provisions of Section
25-F of the industrial Disputes Act. As such, the respondent could not derive any benefit from pleas
of abandonment of job by the petitioner. In any case the respondent would also not derive any
benefits from respondent having failed to establish plea of abandonment as there is no authenticated
evidence establishing that petitioner had worked 240 days at any time as required under law. As
such, in absence of any specific and reliable evidence led by respondent, it would be unsafe to hold
that respondent had established plea of abandonment.
13. In so far as violation of provisions of Section 25-G of the Industrial Disputes Act is
concerned from Standing Order of the Himachal Pradesh State Electricity Board, it would be
relevant to go through documentary evidence on record adduced by petitioner. Ld. Counsel for
petitioner as per Ex. P1 tentative seniority list of T/mate (W/C), as it stood on 1-1-2010 in respect
of Electrical Division, HPSEB, Dharampur which showed that S/Sh. Trilok Chand, Ajeet Singh,
Shakti Chand and Dharam Chand were posted in ESD Sandhole and were working temporarily who
had joined on 20-11-2002 and 19-1-2007 respectively. Ex. P3 is the seniority list of Electrical
Beldar (daily wages) under Electrical Division HPSEB, Sarkaghat ending on 30th April, 1996. This
list is spread over in six pages in which Beldar/daily wagers who had been engaged from 1981 till
1994 have been shown. In the year 1992 Balbir Chand and Shakuntla Devi are shown to have
joined in 1992 and thereafter no one has been shown to have been engaged in 1993 the year in
which present petitioner and his two other colleague workers whose service were terminated were
not shown. Thereafter, in the year 1994, three persons Shambu Ram, Prem Raj and Amar Singh are
shown to have appointed or engaged. Thus, this document prima facie substantiate the plea of
petitioner qua non inclusion of name of present claim petitioner and two others Hem Singh and
Prem Chand in the seniority list Ex. P3. Thus, names of present petitioner had not been included in
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the list of employees engaged as Electrical Beldar (daily wages) engaged between 1981 till 1994.
Mark-A is the provisional seniority list of daily wages Beldar working under Electrical Division
Sarkaghat as on 01-4-2001 which shows engagement of Trilok Chand in 1993, Ajeet Singh in
1994, Dharam Chand in 1996, Dharam Pal in 1996 and Kashmir Singh in 1996. Said Trilok Chand
is shown to have been appointed on 13-10-1993 whereas present claim petitioner had been engaged
in April, 1993. Exts. C1, C2, C3, C4, C5, C6 and C7 are the muster-rolls showing engagement of
petitioner. As such, per documentary evidence it is established that petitioner had been engaged in
April 1993 and not in September 1993 as claimed by respondent and one Trilok Chand shown in
Ex. P1 had worked with petitioner who was engaged much later i.e. in October 1993 but name of
petitioner and two other who joined 1993 was not reflected. Ex. P1 although shows Trilok Chand
had been engaged temporarily on 2-11-2002 but claim of petitioner is not falsified more
particularly in view of evasive reply of RW1 who has shown ignorance if Trilok Chand was
engaged on 2-11-2002 and petitioner was engaged at the same time. Significantly, RW1 admitted
that petitioner had issued legal notice Mark-F to Sarkaghat Division but the respondent/board had
not given any reply. As the contents of notice were not proved in view of the fact that said
document has not been exhibited but answer of RW1 who has admitted issuance of notice by
petitioner has to be interpreted in favour of the petitioner to the extent that certainly notice was
given when the services of petitioner had been terminated in the year 1998 as admitted by RW1 and
that notice had remained un-replied.
14. PW4 Ravi Kumar, Junior Assistant in the office of Electrical Sub Division Tihra,
HPSEB has deposed that he had not brought any seniority list of daily casual labourers although
proved muster rolls Ex. C1 to C7. It is specifically stated that no seniority list was prepared. PW5
Sh. Kamlesh Kumar, Addl. Engineer in the office of SEE, Electrical Division HPSEB, Sarkaghat
has stated to have not brought any seniority list although PW4 proved muster rolls. He has
specifically stated that as per the record, there is no seniority list of casual labourers who are merely
issued casual cards. Cross-examinations of these witnesses of respondent examined by petitioner
revealed that petitioner had remained posted under Sarkaghat Division prior to September 2009.
As such, from testimony of PWs that no seniority list was prepared makes stand of respondent for
having not prepared seniority list gets falsified as petitioner in his claim has tendered tentative
seniority list as reflected in Ex. P1 obtained by petitioner under RTI Act. In view of the testimonies
of the officials of the HPSEB, it is also established that no seniority list was prepared although list
Ex. P3 was prepared which did not relate to the present claim petition particularly when name of
petitioner was not included. Since name of the petitioner was not reflected in the list which was of
Beldar/daily wages as on 30-4-1996 it shows that the name of petitioner was deliberately not
included to defeat his claim and at the same time it has been pointed out by the official that no
seniority list was prepared. In so far as judgment of AIR 2015 SC 1373 titled as Mackinon
Machenize & Company Ltd. vs. Mackinon Employees Union is concerned, the Hon'ble Apex
Court has held on closure of unit of company principle of "Last come First go" was not followed
which violated Section 25-G of Industrial Disputes Act and retrenchment was held illegal entitling
petitioner for retrenchment compensation. Since the facts of case of Mackinon Machenize's case
are different from case in hand as in former closure of unit of company was involved whereas in
case in hand before this court, there is no closure of company rather it is the department of HPSEB
which had engaged petitioner without following of the procedure although subject to funds and
availability of work but in the case in hand petitioner had not abandoned the job by not reporting
for duty. As such, when there is no closure of any unit by respondent which the petitioner was
engaged, judgment of Mackinon Machenize cannot be applied in facts and circumstances of this
case. Be it noticed that there is sufficient reliable evidence on record that after termination of
service of petitioner, several new juniors had joined.
15. Ld. Counsel for the petitioner has relied upon the judgment of Hon'ble H.P. High Court
reported in Latest HLJ 2012 (HP) 591 titled as Secretary, HPSEB, Kumar House, Shimla and
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Anr. vs. Sh. Piar Chand and Anr., the relevant para of the judgment is reproduced below for
reference:—
“Industrial Disputes Act, 1947-Section 25-G read with clause 14(2) of the Certified
Standing Orders. Reinstatement. Dispensing with the service when illegal-oral removal
illegal-Respondent engaged as Beldar-He had not completed 240 days in calendar
year-His services would not be dispensed with orally as per standing order-10 days
notice required-The court below correctly appreciated the fact and law laid down”.
16. It can be safely observed from the above judgment that under Section 25-G read with
Clause 14(2) Certified Standing Orders, the services of the petitioner could not be dispensed with
by removal by oral order. As the respondent in the case before Hon'ble High Court had not
completed 240 days in a calendar year however the services could not be dispensed with as per
Certified Standing Orders as it was required that petitioner should have been served 10 days notice
under Clause 14(2) of Certified Standing Orders. Applying the ratio of the above said judgment, it
may not be erroneous to hold that petitioner had not served any notice although he was engaged
and disengaged twice in the year 1993 as well as in 1998. As such, the action of respondents in not
complying with the mandate of above-said provisions clearly vitiate termination of the services of
petitioner as has been held in judgment (2912) supra. As has come in the evidence that respondent
has admitted that petitioner was engaged as labourer on different dates as enumerated in para No.1
of reply, it would not be material fact it had inadvertently alleged that he had been engaged in
either Sub Division Tihra or Sub Division Dharampur which certainly fell under Electrical Division
Sarkaghat. Ld. Counsel for the respondent has emphasized that once the petitioner has failed to
establish that he had worked under Dharampur initially the same is fatal to case of petitioner but
respondent had admitted engagement of petitioner several times as stated in foregoing paras, it
could not be stated that claim of petitioner is false but due to petitioner's having worked under
Electrical Division Sarkaghat, he was employee/worker of respondent and his services were
illegally terminated by the respondent without following the provisions of Section 25-G of the
Industrial Disputes Act as well Certified Standing Orders of the respondent which required
respondent to issue notice of 10 days.
17. Ld. Counsel for respondent has vehemently contended that petitioner was out of
employment from 20-7-1998 and the reference by Labour Commissioner had been made after lapse
of 15 years. As such, claim for reengagement is stated be patently time barred moreover there is
also decision as enumerated in para No.5 of reply which showed regarding decision was taken on
18-12-2012 and the same was placed before the Hon'ble High Court in pursuance to order of
Hon'ble High Court, be it stated that respondent had not filed copy of order. As such, the policy
concerning reengagement could not be looked as against the claim of petitioner however in so far
delay in filing of claim petition it relevant to go through reference No.140/2013 received from
Labour Commissioner, Govt. of Himachal Pradesh in the month of August, 2013 which shows that
petitioner raised demand on 28-7-2004 regarding his illegal termination from service by the
Executive Engineer when matter was referred to Labour Officer-cum-Conciliation Officer, Mandi,
H.P. who submitted his failure report and the Labour Commissioner rejected the claim for making
reference vide order dated 17-8-2006. In pursuance to which CWP No.76/2008 which was decided
on 26-7-2013 vide which plea of petitioner was accepted quashing the order dated 17-8-2006
directing the Labour Commissioner to make reference to Industrial Tribunal in accordance with
law. Therefore reference was made under the provisions of Industrial Disputes Act which was
received on 29-8-2013. As such, petitioner has issued demand notice after his termination in the
year 1998 after gap of six years. A period of two years has been taken in proceedings before the
Labour Officercum-Conciliation Officer, Mandi who submitted failure report and Labour
Commissioner declined to make reference which was challenged after two years although petitioner
had remained litigating at different stages but had sufficient explanation for non issuance of
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jkti=] fgekpy izns'k] 11 vizSy] 2018@21 pS=] 1940
demand notice immediately when his services were terminated in the year 1998. As such, the
reference received from the Labour Commissioner shows that petitioner had issued demand notice
on 28-7-2004 after gap of above six years. As such, there is unexplained delay as per law laid down
in the Ajayab Singh vs. Sirhind Co-operative Marketing-cum-Processing Society Limited and
Another, (1999) 6 SCC 82 however the Hon'ble Apex Court held that the principle of Limitation
Act, 1963 did not apply to the proceeding under the Industrial Disputes Act.
18. Relying upon the aforestated judgment, it has been contended that claim of petitioner
cannot be defeated on the point of delay and laches. Repudiating arguments advanced by Ld.
counsel for petitioner, Ld. Counsel has placed reliance upon the judgment of Hon'ble Apex Court
titled as Assistant Engineer, Rajasthan State Agriculture Marketing Board, Sub-Division
Kota and Mohan Lal [2013 (139) FLR 125], the relevant para of the judgment are produced
below for reference:
Industrial Disputes Act, 1947-Sections 25-F and 10- Limitation Act, 1963- Section 5-
Industrial dispute-Termination of service-Finding of Labour Court that workman had
completed 240 days in calendar year and her termination was in violation of section 25-F of
the I.D.Act- Workman worked from 1-11-1984 to 17-2-1986 in all 286 days during
employment. her services terminated on 18-2-1986. Industrial dispute raised after 6 years of
termination. Admitted delay of 6 years not kept in view by the Labour Court- Judicial
discretion exercised by the Labour Court flawed and unsustainable. Reinstatement of the
workman not the appropriate relief. In lieu of reinstatement compensation of Rs.one lac
directed to be paid to the workman by the appellant employer within six weeks failing
which interest @ 9% p.a. will be payable.
[Paras 21 and 22]
Limitation Act, 1963. Section 5- Industrial Disputes Act, 1947- Section 25-F- Termination
of service- Industrial dispute raised after six years- Limitation Act not applicable to
reference made under the I.D. Act-Delay in raising industrial disputes definitely an
important circumstances which the Labour Court must keep in view before granting
relief.
19. Repudiating the arguments by Ld. Counsel for the respondents, Ld. Counsel for
claimant/petitioner has relied upon the judgment of Hon'ble Apex Court in case titled as Tapash
Kumar Paul vs. BSNL & another reported in AIR 2015 SC 357 wherein Hon'ble Court held that
a Court may pass an order of reinstatement by awarding compensation but the same has to be based
on justifiable grounds. In this judgment, it was held that compensation can be granted in a situation
where the industry is closed or that employees has superannuated or going to retire shortly and no
period is left to his credit or where workman has been rendered in capacitated to discharge duties
cannot be reinstated and/or fourthly when he has lost confidence of the management to discharge
duties. It was observed that there may be appropriate cases on facts which may justify substituting
an order of reinstatement by award of compensation but that has to be supported by some legal
and justifiable reasons indicating why the reinstatement should be followed to be substituted
by award of compensation. Ld. Counsel for the petitioner with the aid of above-said judgment had
argued that there are only four situations when a worker may be awarded compensation instead of
reinstatement but the judgment has certainly not been correctly appreciated by Ld. Counsel as this
judgment postulates probable four situations which are illustrative in nature where compensation
may be awarded instead of reinstatement but that does not mean that except the four grounds, no
other ground would be appropriate for awarding compensation. In the case in hand before this
court, it has come that petitioner had abandoned the job who did not report for duty for several
years and later gave notice requesting for joining of duties but the conditions in para No.5 of
judgment (2015 supra) even if not met requirement, cannot be a ground to reinstate the petitioner
and it is only compensation which would be appropriate relief. Ld. Counsel for the petitioner has
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jkti=] fgekpy izns'k] 11 vizSy] 2018@21 pS=] 1940
relied upon the judgment of Hon'be Apex Court titled as Deepali Gundu Surwase vs. Kranti
Junior Adhyapak Mahavidyalaya (D.Ed.) and Ors. reported in AIR 2014 SC (Supp) 121,
Raghubir Singh vs. General Manager, Haryana Roadways, Hissar reported in 2014(3) Apex
Court Judgments 652. I have gone through these judgments and of view that they don't come to
rescue the petitioner on point of reinstatement instead of compensation. Ld. Counsel for
respondents on the other hand has relied upon the judgment of Hon'ble Apex Court in Vice
Chancellor, Lucknow University, Lucknow, Uttar Pradesh v. Akhilesh Kumar Khare &
another reported in AIR 2015 SC 3473. It has been contended that engagement of
claimant/petitioner in this case was not through regular mode of recruitment and applying the ratio
of this judgment AIR 2015 SC supra, claim of petitioner for reinstatement can be negated and thus
compensation would be sufficient for redressal of grievance of the claimant/petitioner. Similarly, in
2016 (1) Him. L.R. 502 titled as State of Himachal Pradesh and another vs. Chaman Singh
relied by ld. AR for petitioner interpretation of Section 137 of Limitation Act was involved which
provides that Article 137 of Limitation Act did not apply to industrial disputes. In 2014 (3) Apex
Court Judgment 652 (SC) similar view was reiterated which clearly mandates that
claimant/petitioner cannot be denied relief sought for merely on the ground of delay and laches.
That being so, the law remains as it was that ground of delay and laches, claimant/petitioner cannot
be denied relief rather the court has to consider various aspects before moulding relief and the case
in hand it would not be erroneous to mention here that the claimant/petitioner can be reasonably
indemnified by ordering compensation and not by reinstatement.
20. After hearing the rival contentions of the parties and case law relied by them, it can be
safely concluded that delay in raising industrial dispute is certainly important aspect/circumstance
which court has to be kept in mind while exercising discretion. In para Nos. 20 and 21 of the
judgment as referred to in this case reported in 2013 (136) FLR 893 (SC) titled as Assistant
Engineer Rajasthan Development Corporation and another vs. Geetam Singh provides that
before exercising its judicial discretion, the Labour Court or Tribunal has to keep in mind all
relevant factors including the mode and manner of appointment, nature of employment, length of
service, the ground on which termination has been set aside and delay in raising industrial dispute
before grant of relief. It was observed by the Hon'ble Apex Court in judgment (2013 supra) before
that workman had worked for 286 days and had raised industrial dispute in 1992 whereas her
services have been terminated in 1986 and she raised industrial dispute after six years. The Hon'ble
Apex Court has held that though compensation awarded by Single Judge of the Hon'ble High Court
was too low and liable to be enhanced by the Division Bench but surely reinstatement of the
workman in the facts and circumstances is not the appropriate relief and thus Hon'ble Apex
Court awarded a lump-sum of Rs.1 lakh alongwith interest @ 9% per annum if the respondent
failed to make payment of compensation within six weeks from the date of judgment. In the case in
hand before this court factors which have weighed are that the petitioner in all remained engaged
for about 03 years and actually worked for 163 days as per mandays chart on record and that the
services of petitioner were disengaged in 1998 who worked as non skilled worker and had raised
industrial dispute by issuance of demand notice after about six years. Taking into consideration
factors mentioned above in pursuance to judgments of Hon'ble Apex Court referred to above,
petitioner would not be entitled either for reinstatement or for back wages but a lump-sum
compensation would be appropriate relief in view of judgment 2013 (139) FLR 25 (SC). The
judgments relied upon by Ld. Counsel for petitioner on the matter of delay and laches is more or
less settled law that claim of the petitioner could not be solely declined on the ground of delay and
laches. Similarly, judgment of Hon'ble Apex Court in 2014 titled as Raghubir Singh's case also
does not come to the rescue of the petitioner as in this judgment also the Hon'ble Apex Court has
reiterated the mandate as given by the Hon'ble Apex Court in previous judgment in the year 2013
i.e. Assistant Engineer, Rajasthan State Agriculture Marketing Board, Sub-Division Kota
and Mohan Lal's case. I have gone through aforestated judgments relied upon by petitioner which
are not applicable in this present case as this court has not declined relief to the petitioner on the
436
jkti=] fgekpy izns'k] 11 vizSy] 2018@21 pS=] 1940
ground of limitation rather on the basis of guidelines of Hon'ble Apex Court laid down in judgment
of 2013 (supra). In view of foregoing discussion, a lump-sum compensation of Rs.85,000/-
(Rupees eighty five thousand only) would be an appropriate relief to which the petitioner is entitled
in the facts and circumstances of the case as stated above. It is further made clear that amount of
compensation shall be paid within four months from the date of receipt of Award failing which the
petitioner would be entitled for interest @ 9% per annum from the date of Award till its realization.
Issues No. 1 to 3 are answered accordingly.
RELIEF
21. As sequel to my findings on foregoing issues, the respondent is hereby directed to pay
the compensation of Rs.85,000/- (Rupees eighty five thousand only) to the petitioner in lieu of the
reinstatement, back wages, seniority and past service benefits. Amount of compensation so
awarded will be paid by the respondent to the petitioner within four months from the date of receipt
of Award failing which the respondent shall be liable to pay the interest @ 9% per annum on the
said amount from the date of award till the date of its realization. In the peculiar circumstances of
the case, the parties are left to bear their own costs.
22. The reference is answered in the aforesaid terms.
23. A copy of this Award be sent to the appropriate Government for publication in the
official gazette.
24. File, after due completion be consigned to the Record Room.
Announced in the open Court today this 9th day of October, 2017.
Sd/-
(K. K. Sharma)
Presiding Judge,
Labour Court-cum-Industrial Tribunal,
Kangra at Dharamshala, H.P.
___________
IN THE COURT OF SHRI K.K. SHARMA, PRESIDING JUDGE, LABOUR COURT-
CUM-INDUSTRIAL TRIBUNAL, KANGRA AT DHARAMSHALA, H.P.
Ref. No.
: 273/ 2016
Shri Surinder Kumar s/o Shri Chand Ram, r/o Village Kundi, P.O. Singhdhar, Tehsil
Salooni, Distt. Chamba, H.P.
..Petitioner.
Versus
1. The Employer/Managing Director, M/s GVK Emergency Management and Research
Institute, Dharampur, District Solan, H.P.
2. The Managing Director, M/s Adecco Flexione Workforce Solutions Pvt. Limited,
C-127, Basement Level, Satguru Infotech, Phase-VIII, Industrial Area Mohali,
Punjab(Contractor Company).
..Respondents.
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jkti=] fgekpy izns'k] 11 vizSy] 2018@21 pS=] 1940
17-10-2017 Present: None for the petitioner.
Sh. Vinod Kumar, Adv. Vice of Sh. Rajat Sahotra, Adv. Csl. for the respondent No.1.
Sh. Munish Katoch, Adv. Csl. for the respondent No.2.
Power of attorney has been filed on behalf of respondent No. 2. Case called several times
but none has appeared on behalf of the petitioner despite due knowledge. It is 11.35 A.M. Be
awaited and put up after lunch hours.
Sd/-
(K.K.Sharma)
Presiding Judge,
Labour Court-cum-Industrial
Tribunal, Kangra at Dharamshala, H.P.
__________
17-10-2017 Present: None for the petitioner.
Sh. Vinod Kumar, Adv. vice of Sh. Rajat Sahotra, Adv. Csl. for the respondent No.1.
Sh. Munish Katoch, Adv. Csl. for the respondent No. 2.
Case has been called again several times but none has appeared on behalf of petitioner. It is
2.40 P.M. None appearance of petitioner or his ld. counsel today is indicative of the fact that he is
not interested to pursue present reference and accordingly reference is disposed of for non-
prosecution.
Reference is answered in the aforesaid terms. The parties to bear their own costs.
Let copy of the Order/Award be sent to the appropriate Government for information and
further necessary action / publication. The file, after completion be consigned to the records.
Announced:
17-10-2017
Sd/-
(K.K.Sharma)
Presiding Judge,
Labour Court-cum-Industrial
Tribunal, Kangra at Dharamshala, H.P.
__________
IN THE COURT OF SHRI K. K. SHARMA, PRESIDING JUDGE, LABOUR COURT-
CUM-INDUSTRIAL TRIBUNAL, KANGRA AT DHARAMSHALA, H.P.
Ref. No.
: 114/ 2016
Shri Om Prakash s/o Shri Pratap Singh, r/o Village Chamera, P.O. Janghi, Tehsil & District
Chamba, H.P.
..Petitioner.
438
jkti=] fgekpy izns'k] 11 vizSy] 2018@21 pS=] 1940
Versus
1. The Employer/Managing Director, M/s GVK Emergency Management and Research
Institute, Dharampur, District Solan, H.P.
2. The Managing Director, M/S Adecco Flexione Workforce Solutions Pvt. Limited,
C-127, Basement Level, Satguru Infotech, Phase-VIII, Industrial Area Mohali,
Punjab(Contractor Company).
..Respondents.
17-10-2017 Present: None for the petitioner.
Sh. Vinod Kumar, Adv. vice of Sh. Rajat Sahotra, Adv. Csl. for the respondent No.1.
Sh. Munish Katoch, Adv. Csl. for the respondent No. 2.
Power of attorney has been filed on behalf of respondent No. 2. Case called several times
but none has appeared on behalf of the petitioner despite due knowledge. It is 11.30 A.M. Be
awaited and put up after lunch hours.
Sd/-
(K.K.Sharma)
Presiding Judge,
Labour Court-cum-Industrial
Tribunal, Kangra at Dharamshala, H.P.
__________
17-10-2017 Present: None for the petitioner.
Sh. Vinod Kumar, Adv. vice of Sh. Rajat Sahotra, Adv. Csl. for the respondent No.1.
Sh. Munish Katoch, Adv. Csl. for the respondent No.2.
Case has been called again several times but none has appeared on behalf of petitioner. It is
2.35 P.M. None appearance of petitioner or his Ld. Counsel today is indicative of the fact that he is
not interested to pursue present reference and accordingly reference is disposed of for non-
prosecution.
Reference is answered in the aforesaid terms. The parties to bear their own costs.
Let copy of the Order/Award be sent to the appropriate Government for information and
further necessary action / publication. The file, after completion be consigned to the records.
Announced:
17-10-2017
Sd/-
(K. K. Sharma)
Presiding Judge,
Labour Court-cum-Industrial
Tribunal, Kangra at Dharamshala, H.P.
439
jkti=] fgekpy izns'k] 11 vizSy] 2018@21 pS=] 1940
IN THE COURT OF SHRI K.K. SHARMA, PRESIDING JUDGE, LABOUR COURT -
CUM-INDUSTRIAL TRIBUNAL, KANGRA AT DHARAMSHALA, H.P.
Ref. No. : 137/17
Smt. Banita Devi w/o Shri Dev Raj, r/o V.P.O. Nihari, Tehsil Ghumarwin, District Bilaspur,
H.P.
..Petitioner.
Versus
1. The Chief Medical Officer, Regional Hospital, Bilaspur, H.P. (Principal Employer).
2. The Proprietor M/s Shimla Cleanways, H.O. Sahibu Niwas, Sector-2, New Shimla, H.P.
(contractor).
..Respondents.
_________
24-10-2017 Present: Sh. Bhagat Singh Verma, Adv. csl. for the petitioner.
None for the respondent No. 1.
Sh. Vikramjit Sharma, Adv. csl. for the respondent No. 2
Power of attorney has been filed on behalf of petitioner. Memo of appearance has also been
filed on behalf of respondent No. 2. Summon sent for service of respondent No.1 has not been
received back served or unserved.
2. Heard. At this stage, Ld. Csl. for the petitioner has made statement for withdrawal of
reference pending before this Court. Statement recorded and placed on file. In view of the
statement so made by the Ld. Csl. for the petitioner as stated above, the reference No. 137/17 is
hereby dismissed as withdrawn.
3. Ordered accordingly. The parties to bear their own costs.
4. The reference is answered in the aforesaid terms.
5. A copy of the Order/Award be sent to the appropriate Government for information and
further necessary action /publication at its end.
6. The file, after completion be consigned to the records.
Announced.
24-10-2017
Sd/-
(K.K.Sharma)
Presiding Judge,
Labour Court-cum-Industrial
Tribunal, Kangra at Dharamshala, H.P.
440
jkti=] fgekpy izns'k] 11 vizSy] 2018@21 pS=] 1940
IN THE COURT OF SHRI K. K. SHARMA, PRESIDING JUDGE, LABOUR COURT-
CUM- INDUSTRIAL TRIBUNAL, KANGRA AT DHARAMSHALA, H.P.
(CAMP AT MANDI)
Ref. No.
:
147/ 2017
Sh. Bhoop Singh s/o Sh. Inder Singh, r/o Village Ghata, P.O. Kummi, Tehsil Balh, District
Mandi, H.P.
..Petitioner.
Versus
1. The General Manager, M/s Sapna Cars Pvt. Ltd., N.H.-21, Gutkar, District Mandi,
H.P.
2. The H.R. Manager, M/s Sapna Cars Pvt. Ltd.,N.H.-21, Gutkar, District Mandi, H.P.
...Respondents.
27-10-2017 Present: None for the petitioner.
Sh. Deepak Azad, adv. csl. for the respondents.
Power of attorney has been filed on behalf of respondents. Case called several times but
none has appeared on behalf of the petitioner despite due service. It is 11.35 A.M. Be awaited and
put up after lunch hours.
Sd/-
(K.K.Sharma)
Presiding Judge,
Labour Court-cum-Industrial
Tribunal, Kangra at Dharamshala, H.P.
___________
27-10-2017 Present: None for the petitioner.
Sh. Deepak Azad, Adv. Csl. for the respondents.
Case has been called again several times but none has appeared on behalf of petitioner. It is
2.40 P.M. None appearance of petitioner today is indicative of the fact that he is not interested to
pursue present reference and accordingly reference is disposed of for non-prosecution.
Reference is answered in the aforesaid terms. The parties to bear their own costs.
Let copy of the Order/Award be sent to the appropriate Government for information and
further necessary action / publication. The file, after completion be consigned to the records.
Announced:
27-10-2017
Sd/-
(K. K. Sharma)
Presiding Judge,
Labour Court-cum-Industrial
Tribunal, Kangra at Dharamshala, H.P.
441
jkti=] fgekpy izns'k] 11 vizSy] 2018@21 pS=] 1940
IN THE COURT OF SHRI K.K. SHARMA, PRESIDING JUDGE, LABOUR COURT-CUM-
INDUSTRIAL TRIBUNAL, KANGRA AT DHARAMSHALA (H.P.)
Ref. No.
: 214/2016
Date of Institution : 11.04.2016
Date of Decision
: 16.10.2017
Smt. Sebo Kumari w/o Shri Jagdish Kumar, r/o Village Findru, P.O. Sach, Tehsil Pangi,
District Chamba, H.P.
..Petitioner.
Versus
The Executive Engineer, Killar Division, I.P.H./H.P.P.W.D., Killar, Tehsil Pangi, District
Chamba, H.P.
….Respondent.
Reference under Section 10 (1) of the Industrial Disputes Act, 1947
For the Petitioner
: Sh. N.L. Kaundal, AR
Sh. Vijay Kaundal, Adv.
For the Respondent : Sh. Sanjeev Singh Rana, Dy. D.A.
AWARD
The reference given below has been received from the appropriate Government for
adjudication:
“Whether alleged termination of services of Smt. Sebo Kumari w/o Shri Jagdish Kumar,
R/O Village Findru, P.O. Sach, Tehsil Pangi, District Chamba, H.P. during October, 2002
by the Executive Engineer, Killar Division, I.P.H./H.P.P.W.D. Killar, Tehsil Pangi, District
Chamba, H.P., who had worked as beldar on daily wages and has raised her industrial
dispute after more than 9 years vide demand notice dated 23.01.2012, without complying
the provisions of the Industrial Disputes Act, 1947 is legal and justified? If not, keeping in
view of working period during May, 1995 to October, 2002 and delay of more than 9 years
in raising the industrial dispute, what amount of back wages, seniority, past service benefits
and compensation the above ex-worker is entitled to from the above employer/
management?”
2. On receipt of reference from appropriate government, notices were issued to the parties
in pursuance to which claimant/petitioner has filed statement of claim.
3. Brief facts as enumerated in the present claim petition by the petitioner above named
revealed that she had been appointed on daily wage basis on muster roll in the year 1995 who
continuously worked till October, 2002 with the respondent. Averments made in the petition further
revealed that petitioner had worked for 160 days in each calendar year as per the criteria prescribed
for tribal area of Pangi Tehsil District Chamba and became eligible for continuous service
envisaged under statutory provisions of Section 25-B of the Industrial Disputes Act, 1947
(hereinafter referred to as "the Act" for brevity). Averments made in the petition revealed that the
services of petitioner had been interrupted by way of intermittent/artificial breaks given by the
respondent/department deliberately and as such breaks are required to be counted as "continuous
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jkti=] fgekpy izns'k] 11 vizSy] 2018@21 pS=] 1940
services" for the purposes of calculation of 160 days for the applicability of Section 25-B of the
Act. The grievance of petitioner remains that respondent/department had terminated/disengaged
petitioner from daily wage service orally without issuing one month's notice in writing stipulating
therein reason for retrenchment besides no retrenchment compensation was paid to petitioner when
respondent had been illegally terminated. It is also alleged that respondent had not followed the
provisions of Section 25-F of the Act while disengaging petitioner from service. The grievance of
petitioner further revealed that during years 2003 to 2005, respondent/department had disengaged
the services of more than 500 daily waged workmen in different Divisions of HPPWD and IPH. It
is stated that it has came to the knowledge to the petitioner from reliable sources that
respondent/department had engaged more than 200 contractors during 2003 onwards. It is stated
that after termination of the services of petitioner, petitioner had approached the respondent time
and again but of no avail. The grievance of petitioner further remains that when the services of
petitioner had been terminated, respondent/department had re-engaged number of new workman
from time to time and while doing so, respondent had not followed the principle of "Last come,
First go" envisaged under Section 25-G of the Act. It is further alleged that respondent/department
had continuously retained junior to petitioner who are still in service namely Jai Dass who
appointed in 1998, Tek Chand in 1999, Baldev in 2000, Amar Nath in 2000, Balak Chand also in
2000, Shyam Lal in 2000, Prakash Chand in 2001, Sucheta Ram in 2001, Trilok Chand in 2002,
Hari in 2003, Hari Ram in 2003, Ram Dei in 2003 and Budhi Ram in 2003. The claimant/petitioner
claimed that she had spotless service record who never been charge-sheeted for any act of
indiscipline or negligence or her conduct and even at the time of verbal termination, no chargesheet
had been served upon her and the at the same time, no opportunity of hearing had been afforded to
him. The petitioner also alleges that she has remained unemployed ever since her illegal
termination from October, 2002 till the date of institution of present claim petition who had been
nowhere gainfully employed and was thus entitled for full back wages. Feeling aggrieved the action
of respondent in terminating the services of petitioner an industrial dispute was raised vide demand
notice dated 23-1-2012 copy of the same was forwarded to Labour Officer, Chamba for further
necessary action. It is alleged that Labour Officer, Chamba could not resolve the dispute and failure
report under Section 12(4) of the Industrial Disputes Act and the matter was referred to appropriate
government i.e. Labour Commissioner, Shimla who declined to refer the case of petitioner for
adjudication in pursuance to which the petitioner had approached the Hon'ble High Court of H.P.
by filing CWP No. 63/2016 which had been decided on 22-2-2016 and order of the Labour
Commissioner, Shimla has been setting aside. Accordingly alleging respondent to have committed
violation of statutory provision of Section 25-F, Section 25-G and Section 25-H of the Industrial
Disputes Act, 1947 and thus petitioner prays for setting aside illegal termination of petitioner by the
respondent/department in October, 2002 as well as period of intermittent/fictional breaks
deliberately given time and again during entire service of petitioner between 1995 to 2002. She
further prayed for reinstatement in service along-with full back wages, seniority including
continuity in service and to any other relief petitioner is entitled.
4. The respondent contested claim petition, filed reply inter-alia taken preliminary
objections of maintainability, claim petition being bad on account of delay and laches. On merits
denied that petitioner had worked for more than 160 days in each calendar year rather clarified by
stating that petitioner was engaged as daily waged beldar in 1995 who remained engaged till 2002
but had worked intermittently as petitioner used to come and attend the work at her own sweet will
and convenience. Relying upon the mandays chart, it has been categorically pleaded by the
respondent that petitioner had not completed 160 days in each calendar year as required for tribal
area of Pangi Tehsil. The allegations of fictional breaks given by respondent to the petitioner have
been specifically denied. In so far as engagement of persons junior to petitioner mentioned in para
No. 4 of the claim petition were appointed as per order of Labour Court and no other juniors to the
petitioner had been retained in service by the respondent. It is further stated that name of person
Sham Lal and Gautam Singh had been engaged on harness case and as such there was no violation
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jkti=] fgekpy izns'k] 11 vizSy] 2018@21 pS=] 1940
of the principle of the Industrial Disputes Act, 1947. On the plea of termination of service of
petitioner, respondent specifically alleges that petitioner had left the job at her own will therefore
serving of notice or pay in lieu thereof was not required. Reiterating its stand respondent has
maintained that petitioner had left the work of her own sweet will and the persons mentioned in
para No.4 are stated to have engaged as per direction of the Labour Court-cum-Industrial Tribunal
Dharamshala and respondent had not violated the principle of "Last come, First go". It is also
contended that if petitioner had been terminated in 2002, she would have definitely raised industrial
dispute immediately and that after ten years petitioner is stated to be agitating the matter which is
bad on account of delay and laches. It is also contended that since the services of petitioner had not
been terminated by the respondent, question of issuance of notice or wages in lieu thereof did not
arise and at the same time, there was no necessity for charge-sheet or issuing any notice of
petitioner after her termination. It is contended that petitioner was agriculturist and gainfully
employed and was thus not entitled for back wages.
5. The petitioner filed rejoinder, reiterated her stand as maintained in the claim petition.
Further asserted that provisions of Limitation Act did not eclipse the claim of petitioner in totality
besides allegation of violation of principle of "Last come First go" was specifically denied.
6. In order to prove her case, petitioner had examined herself as PW1 tendered/proved her
affidavit Ex. PW1/A under Order 18 Rule 4 CPC, copy of seniority list Ex. PW1/B, copy of list of
workers Ex. PW1/C and closed evidence. On the other hand, repudiating the evidence led by the
petitioner, respondent examined RW1 Shri D.R. Chauhan, the then Executive Engineer, HPPWD
Division Killar as RW1 tendered/proved mandays chart of petitioner Ex. RW1/B, copy of mandays
of workers Ex. RW1/C and closed the evidence.
7. I have heard the Ld. Counsel of petitioner and ld. Dy. D.A. representing respondent,
gone through records of the case carefully relevant for disposed of this case
8. From the contentions raised, following issues were framed on 30-8-2017 for
determination:
1. Whether the termination of services of petitioner by the respondent during October,
2002 is/was illegal and unjustified as alleged?
...OPP.
2. If issue No.1 is proved in affirmative, to what service benefits the petitioner is entitled
to?
...OPP.
3. Whether the claim petition is not maintainable in the present form as alleged? ...OPR.
4. Whether the claim petition is bad on account of delay and laches on the part of
petitioner as alleged?
...OPR.
Relief.
9. For the reasons detailed here under, my findings on the above issues are as follows:—
Issue No.1 : Yes
Issue No. 2 : Discussed
Issue No. 3 : No
Issue No. 4 : Discussed
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jkti=] fgekpy izns'k] 11 vizSy] 2018@21 pS=] 1940
Relief: Petition is partly allowed awarding compensation of Rs.85,000/- per operative
part of award.
REASONS FOR FINDINGS
Issues No. 1, 2 and 4 :
10. All these issues have been taken up together for discussion being interconnected which
can be disposed of simultaneously without repetition of evidence.
11. Relationship of petitioner having been engaged as daily waged beldar by respondent on
muster roll basis in the year 1995 continuously worked till October, 2002 with the respondent is not
in dispute. Admittedly, petitioner was engaged without any written order or settlement of terms and
conditions by the respondent. It is equally not in dispute that no written order was passed while
terminating service of the petitioner as claim of respondent remains that it had not retrenched
petitioner from service who had abandoned the job of her own and used to work intermittently as
per her own wish and convenience. Admittedly, the reference of appropriate govt. does not relate to
plea of fictional breaks but only with regard to petitioner's termination from service. In the
backdrop of foregoing admitted facts on record, claim of petitioner requires to be adjudicated with
a view to determine if petitioner is entitled for relief of reinstatement and back wages along-with
seniority and past service benefits and compensation as claimed by him.
12. Stepping into witness box as PW1 has sworn in affidavit Ex. PW1/A reiterating and
reaffirming her pleadings as stipulated in claim petition. In her affidavit she has claimed to have
worked with the respondent/department for more than 160 days in Pangi Sub Division Chamba
District and remained engaged from 1995 to October, 2002. She has also stated on oath that no
notice under Section 25-F of the Act was given by the respondent before terminating her service
and at the same time no compensation in lieu thereof notice period was paid to her and thus her
termination was illegal and void entitling petitioner benefit of reinstatement of service with full
back wages and all the other consequential service benefits. The petitioner has further alleged on
oath that respondent/department after terminating her services in October, 2002 by oral order had
engaged several co-workers who were junior to petitioner were retained in service. Not only this,
the persons who were junior to petitioner are stated to have been regularized in service and thus
respondent had not followed the mandate of Sections 25-G and 25-H of the Act which was
obligatory on its part. The case of petitioner also remains that she had served respondent with due
diligence and had spotless service record as respondent/department had never called any
explanation or raised charge-sheet against her but even while retrenching petitioner from service,
no notice was given. The petitioner has also explained reason for not approaching the authorities
under Labour Act and thereafter before this Tribunal, as there existed no road between Chamba
town to Pangi Tehsil till 2012 and petitioner had moved before the Labour Officer raising demand
notice consequent upon which a failure report was submitted and as the Labour Commissioner did
not make reference for industrial dispute raised by petitioner, the petitioner had moved before the
Hon'ble High Court by filing CWP where direction was passed for making reference to the Labour
Court due to which delay had occurred and same was satisfactorily explained.
13. In so far as plea of abandonment raised by respondent is concerned, the same merits
rejection in view of the fact that respondent had failed to produce any record by which it could be
established that whenever petitioner absented from her duty as also reflected in mandays chart Ex.
RW1/B any notice or letter was ever issued. On this point respondent as RW1 has specifically
admitted that whenever petitioner abandoned the job, no notice had been issued. RW1 specifically
admitted that no departmental inquiry was initiated against petitioner even after October, 2002. No
reason whatsoever has been assigned for such any action or omission on the part of respondent in
not initiating any departmental proceedings or making correspondence calling upon the petitioner
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to join service. This prima facie belies the stand taken by the respondent as abandonment has to be
proved like any other fact in issue. The petitioner, on the other hand, as PW1 in cross-examination
has specifically denied that she used to leave the job in between and attended the work
intermittently rather she has claimed that intermit breaks had been deliberately given to her by the
respondent in the service record of petitioner so that petitioner did not complete 160 days of work
as required for Pangi Tehsil area and also for applicability of Section 25-B of the Act. As such, in
absence of any specific and reliable evidence led by respondent, it would be unsafe to hold that
respondent had established plea of abandonment.
14. A bare glance on the mandays chart Ex. RW1/B would reveal that petitioner had
worked for 141 days in the year 1995, 138 days in 1996, 57 days in 1997, 39 days in 1998, 56 days
in 1999, 30 days in 2000, 49 days in 2001 and 112 days in 2002 and thus a total of her service in
1995 to 2002 in 08 years she had worked for 622 days in her entire service period. Be it noticed
that petitioner had not worked for more than 160 days and as there is no reference from the Labour
Commissioner, Shimla on the point of artificial breaks, this court is to confine its findings only with
regard to alleged illegal termination. It is evident from mandays chart Ex. RW1/B that in the year
2002 the petitioner had merely worked for 112 days and thus immediately in preceding 12 calendar
months from the month of termination of petitioner had not rendered service of 160 days. As such,
the respondent is held to have not violated the provisions of Section 25-F of the Act.
15. Ld. Counsel/Authorized Representative for petitioner has contended with vehemence
that large number of workers who were junior to petitioner had been appointed and these workers
have been retained in service and regularized. The grievance of petitioner remains that principle of
"Last come First go" was not followed as the juniors were retained and services of petitioner
despite being senior was terminated without any valid reason. Ex. PW1/B is the year-wise
seniority/mandays of daily waged workers who were junior to the petitioner and had joined in the
year 1999 or thereafter. All of these co-workers shown in Ex. PW1/C the year-wise mandays
details of workers of Division HPPWD Killar were certainly junior to petitioner who were given
sufficient work existing in those years more than 200 days in a year whereas the petitioner had been
not given muster roll for the whole month. Ex. PW1/C also established that all the co-workers
shown in this document have worked for more than 160 days in most of the years although they
were junior to petitioner. Evidently, there is no iota of evidence of respondent establishing that
petitioner was called upon to join for service at any time after October, 2002 even at the time when
junior persons were reengaged. That being so the respondent had certainly violated the provisions
of Section 25-G of the Act as the juniors workers mentioned in para No.4 of the affidavit were
retained whereas petitioner was senior from these co-workers having joined service in 1995 was
terminated and even thereafter respondent omitted to afford opportunity to petitioner for
reemployment for work which also violates the provisions of Section 25-H of the Act. Ld. Counsel
for petitioner has placed reliance upon judgment of Central Bank of India vs. S. Satyam, 1996 (5)
SCC 419 in which Hon'ble Apex Court has held that for the applicability of Section 25-G and 25-H
of the Act, there was no necessity of claimant/petitioner to have worked for 240 days as in case
of provisions of Section 25-F of the Act.
16. Ld. Counsel for petitioner has contended that after petitioner's termination in October,
2002, she had remained unemployed and was not earning anything thereafter as such was entitled
for full back wages. Repudiating the arguments of Ld. Counsel of petitioner, Ld. Dy. D.A. for the
State has taken this court through cross-examination of the petitioner who has admitted that she had
cultivable land with her and also worked a private labourer. Thus, plea of having remained not
gainfully employed gets belied admission of petitioner in cross examination in which she had
maintained that she had been earning from agricultural land as well as she has been working as
daily wager privately. Reliance has been placed on the judgment of Hon'ble Apex Court North
East Karnataka Road Transport Corporation vs. M. Nagangouda (2007) 10 SCC 765 in which
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Division Bench comprising of Justice A.R. Lakshmanan and Justice Altamas Kabir had held that
"term gainfully employment would also include self employment wherefrom income is
generated. It was income either from employment in an establishment or from self
employment merely differentiates the sources from which income is generated, the end use
being the same". Applying the ratio of judgment of 2007 (supra) to this case since the petitioner
was earning from her agricultural and manual pursuits, the same were sufficient to maintain him
and his family. It is thus held that petitioner was gainfully employed. Be it stated here that Hon'ble
Apex Court in Deepali Gundu Surwase's case has held that the Labour Court was not justified in
holding that merely because the respondent was receiving agriculture income, she cannot be treated
to be engaged in gainful employment. Since the petitioner had income from agriculture pursuits for
her livelihood it cannot be stated that petitioner was not gainfully employed and thus would not be
entitled full back wages. In view of the forgoing discussion, it is held that the relationship of
workman and employer existed between petitioner and respondent and that petitioner was illegally
retrenched without compliance of Section 25-G and Section 25-H of the Act although remained
gainfully employed after her retrenchment. Thus, applying the ratio of judgment of Hon'ble Apex
Court (2007 supra), it may not be erroneous to hold that petitioner was gainfully employed and
thus would be not entitled for back wages for the period she was out of job on being terminated by
the respondent.
17. Lastly, Ld. Dy. D.A. for State has contended with vehemence that there is inordinate
and explained delay which disentitles petitieoner relief claimed for by him. On the other hand, Ld.
Counsel for the petitioner has relied upon the judgment of Hon'ble Apex Court titled Raghubir
Singh vs. General Manager, Haryana Roadways, Hissar reported in 2014 Lab IC 4266 (SC)
and the relevant paras of the judgment are produced below for reference:
“12. Therefore, in our considered view, the observations made by this Court in the
Rajasthan State Agriculture Marketing Board case (supra) upon which the learned
Additional Advocate General for the State of Haryana has placed reliance cannot be
applied to the fact situation of the case on hand, for the reason that the Labour Court
has erroneously rejected the reference without judiciously considering all the relevant
factors of the case particularly the points of dispute referred to it and answered the 2nd
issue regarding the reference being barred by limitation but not on the merits of the
case. The said decision has no application to the fact situation and also for the reason
the catena of decisions of this Court referred to supra, wherein this Court has
categorically held that the provisions of Limitation Act under Article 137 has no
application to make reference by the appropriate government to the Labour
Court/Industrial Tribunal for adjudication of existing industrial dispute between
workmen and the employer.
13. In the case on hand, no doubt there is a delay in raising the dispute by the
appellant; the Labour Court nevertheless has the power to mould the relief
accordingly. At the time of adjudication, if the dispute referred to the Labour
Court is not adjudicated by it, it does not mean that the dispute ceases to exist.
The appropriate government in exercise of its statutory power under Section 10(1)(c)
of the Act can refer the industrial dispute, between the parties, at any time, to either the
jurisdictional Labour Court/Industrial Tribunal as interpreted by this Court in the Avon
Services case referred to supra. Therefore, the State Government has rightly exercised
its power under Section 10(1)(c) of the Act and referred the points of dispute to the
Labour Court as the same are in accordance with the law laid down by this Court in
Avon Services & Sapan Kumar Pandit cases referred to supra.
14. Further, the workman cannot be denied to seek relief only on the ground of delay
in raising the dispute as held in the case of S.M. Nilajkar & Ors. v. Telecom
District Manager, Karnataka[4] it was held by this Court as follows—
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“17. It was submitted on behalf of the respondent that on account of delay in raising
the dispute by the appellants the High Court was justified in denying relief to the
appellants. We cannot agree...... in Ratan Chandra Sammanta and Ors. v. Union of
India and Ors. (supra)1993 AIR SCW 2214, it was held that a casual labourer
retrenched by the employer deprives himself of remedy available in law by delay itself,
lapse of time results in losing the remedy and the right as well. The delay would
certainly be fatal if it has resulted in material evidence relevant to adjudication being
lost and rendered not available. However, we do not think that the delay in the case at
hand has been so culpable as to disentitle the appellants for any relief.....” (Emphasis
laid by the Court). In view of the legal principles laid down by this Court in the above
judgment, the reference of the industrial dispute made in the case on hand by the State
Government to the Labour Court to adjudicate the existing industrial dispute between
the parties was made within a reasonable time, considering the circumstances in which
the workman was placed, firstly, as there was a criminal case pending against her and
secondly, the respondent had assured the workman that he would be reinstated after her
acquittal from the criminal case. Moreover, it is reasonable to adjudicate the industrial
dispute in spite of the delay in raising and referring the matter, since there is no
mention of any loss or unavailability of material evidence due to the delay. Thus, we
do not consider the delay in raising the industrial dispute and referring the same to the
Labour Court for adjudication as gravely erroneous and it does not debar the workman
from claiming rightful relief from her employer.
15. In the case of Ajaib Singh v. The Sirhind Co-operative Marketing-cum-Processing
Service Society Limited & Anr.[5] this Court has opined that relief cannot be denied to
the workman merely on the ground of delay, stating that:—
“10. It follows, therefore, that the provisions of Article 137 of the Schedule to
Limitation Act, 1963 are not applicable to the proceedings under the act and that the
relief under it cannot be denied to the workman merely on the ground of delay. The
plea of delay if raised by the employer is required to be proved as a matter of fact by
showing the real prejudice and not as a merely hypothetical defence. No reference to
the labour court can be generally questioned on the ground of delay alone. Even in a
case where the delay in shown to be existing, the tribunal, labour court or board,
dealing with the case can appropriately mould the relief by declining to grant back
wages to the workman till the date he raised the demand regarding her illegal
retrenchment/ termination or dismissal. The Court may also in appropriate cases direct
the payment of part of the back wages instead of full back wages.....” (Emphasis laid
by the Court).
16. Hence, we are of the opinion, having regard to the fact and circumstances of the case
that there is no delay or laches on the part of the workman from the date of her
acquittal in the criminal case. Thereafter, upon failure of the respondent in adhering to
the assurance given to the workman that he would be reinstated after her acquittal from
the criminal case, the workman approached the conciliation officer and the State
Government to make a reference to the Labour Court for adjudication of the dispute
with regard to the order of dismissal passed by the respondent. Keeping in mind the
date of acquittal of the appellant and the date on which he approached the conciliation
officer by raising the dispute, since the respondent had not adhered to its assurance, the
State Government had rightly referred the dispute for its adjudication. Therefore it
cannot be said that there was a delay on the part of the appellant in raising the dispute
and getting it referred to the Labour Court by the State Government.
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17. Further, the Labour Court on an erroneous assumption of law framed the
additional issue regarding the limitation in raising the dispute and its reference
by the State Government to the Labour Court. Thus, the Labour Court has ignored
the legal principles laid down by this Court in the cases referred to supra. The award
passed by the Labour Court was accepted erroneously by both the learned single Judge
and the Division Bench of the High Court by dismissing the Civil Writ Petition & the
Letters Patent Appeal without examining the case in its proper perspective, keeping in
view the power of the State Government under Section 10(1)(c) and the object and
intendment of the Act. Not adjudicating the existing industrial dispute on merits
between the parties referred to it may lead to disruption of industrial peace and
harmony, which is the foremost important aspect in Industrial Jurisprudence as the
same would affect the public interest at large.
18. Ld. Dy. D.A. representing respondent department has also contended with vehemence
that claim petition is barred by limitation on account of delay and laches. It has been pointed that
termination of petitioner in this case took place on 2002 and the industrial dispute was raised after
several years of retrenchment. Repudiating the argument by Ld. Counsel, Ld. AR for the petitioner
has placed reliance upon judgment reported in 2007 LHLJ 903 Hon'ble High Court of H.P.
(Bhatag Ram's case) in which it has been held that delay in raising dispute may be considered by
court at the time of granting final relief however in various other judgments even longer delay has
been condoned. In Divisional Manager, HPFC & another vs. Garibu Ram, Latest HLJ 2007
(HP) 1160, delay of more than 10 years was condoned besides Hon'ble High Court has held that
principle of Limitation Act is not applicable to the industrial dispute. Similar view was taken by
Hon'ble Apex Court in Ajayab Singh vs. Sirhind Co-operative Marketing-cum-Processing
Society Limited and Another (1999) 6 SCC 82 in which it has been held that the principle of
Limitation Act, 1963 did not apply to the proceeding under the Industrial Disputes Act.
19. Relying upon the aforestated judgment, it has been contended that claim of petitioner
cannot be defeated on the point of delay and laches. Repudiating arguments advanced by Ld.
Counsel for petitioner, Ld. Dy. D.A. has placed reliance upon the judgment of Hon'ble Apex Court
titled as Assistant Engineer, Rajasthan State Agriculture Marketing Board, Sub-Division
Kota and Mohan Lal [2013 (139) FLR 125], the relevant para of the judgment are produced
below for reference:
Industrial Disputes Act, 1947-Sections 25-F and 10- Limitation Act, 1963- Section 5-
Industrial dispute-Termination of service-Finding of Labour Court that workman had
completed 240 days in calendar year and her termination was in violation of section 25-F of
the I.D.Act- Workman worked from 1-11-1984 to 17.2.1986 in all 286 days during
employment. Her services terminated on 18-2-1986. Industrial dispute raised after 6 years
of termination. Admitted delay of 6 years not kept in view by the Labour Court- Judicial
discretion exercised by the Labour Court flawed and unsustainable. Reinstatement of the
workman not the appropriate relief. In lieu of reinstatement compensation of Rs. one lac
directed to be paid to the workman by the appellant employer within six weeks failing
which interest @ 9% p.a. will be payable.
[Paras 21 and 22]
Limitation Act, 1963. Section 5- Industrial Disputes Act, 1947- Section 25-F- Termination
of service- Industrial dispute raised after six years- Limitation Act not applicable to
reference made under the I.D. Act-Delay in raising industrial disputes definitely an
important circumstances which the Labour Court must keep in view before granting
relief.
20. Repudiating the arguments by Ld. Dy. D.A. for the State, Ld. Counsel for claimant/
petitioner has relied upon the judgment of Hon'ble Apex Court in case titled as Tapash Kumar
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Paul vs. BSNL & another reported in AIR 2015 SC 357 wherein Hon'ble Court held that a Court
may pass an order of reinstatement by awarding compensation but the same has to be based on
justifiable grounds. In this judgment, it was held that compensation can be granted in a situation
where the industry is closed or that employees has superannuated or going to retire shortly and no
period is left to her credit or where workman has been rendered in capacitated to discharge duties
cannot be reinstated and/or fourthly when he has lost confidence of the management to discharge
duties. It was observed that there may be appropriate cases on facts which may justify substituting
an order of reinstatement by award of compensation but that has to be supported by some legal
and justifiable reasons indicating why the reinstatement should be followed to be substituted
by award of compensation. Ld. Counsel for the petitioner with the aid of above-said judgment had
argued that there are only four situations when a worker may be awarded compensation instead of
reinstatement but the judgment has certainly not been correctly appreciated by Ld. Counsel as this
judgment postulates probable four situations which are illustrate in nature where compensation may
be awarded instead of reinstatement but that does not mean that except the four grounds, no other
ground would be appropriate for awarding compensation. In the case in hand before this court, it
has come that petitioner had abandoned the job who did not report for duty for several years and
later gave notice requesting for joining of duties but the conditions in para No. 5 of judgment (2015
supra) even if not met requirement, cannot be a ground to reinstate the petitioner and it is only
compensation which would be appropriate relief. Ld. Counsel for the petitioner has relied upon the
judgment of Hon'be Apex Court titled as Deepali Gundu Surwase vs. Kranti Junior Adhyapak
Mahavidyalaya (D.Ed.) and Ors. reported in AIR 2014 SC (Supp) 121, Raghubir Singh vs.
General Manager, Haryana Roadways, Hissar reported in 2014(3) Apex Court Judgments 652.
I have gone through these judgments and of view that they don't come to rescue the petitioner on
point of reinstatement instead of compensation. Ld. Dy. D.A. for State on the other hand has relied
upon the judgment of Hon'ble Apex Court in Vice Chancellor, Lucknow University, Lucknow,
Uttar Pradesh v. Akhilesh Kumar Khare & another reported in AIR 2015 SC 3473. It has been
contended that engagement of claimant/petitioner in this case was not through regular mode of
recruitment and applying the ratio of this judgment AIR 2015 SC supra, claim of petitioner for
reinstatement can be negated and thus compensation would be sufficient for redressal of grievance
of the claimant/petitioner. Similarly, in 2016 (1) Him. L.R. 502 titled as State of Himachal
Pradesh and another vs. Chaman Singh relied by Ld. AR for petitioner interpretation of Section
137 of Limitation Act was involved which provides that Article 137 of Limitation Act did not apply
to industrial disputes. In 2014 (3) Apex Court Judgment 652 (SC) similar view was reiterated
which clearly mandates that claimant/petitioner cannot be denied relief sought for merely on the
ground of delay and laches. That being so, the law remains as it was that ground of delay and
laches, claimant/petitioner cannot be denied relief rather the court has to consider various aspects
before moulding relief and the case in hand it would not be erroneous to mention here that the
claimant/petitioner can be reasonably indemnified by ordering compensation and not by
reinstatement. In so far as judgment of AIR 2015 SC 1373 titled as Mackinon Machenize &
Company Ltd. vs. Mackinon Employees Union is concerned, the Hon'ble Apex Court has held
on closure of unit of company principle of "Last come First go" was not followed which violated
Section 25-G of Industrial Disputes Act and retrenchment was held illegal entitling petitioner for
retrenchment compensation. Since the facts of case of Mackinon Machenize's case are different
from case in hand as in former closure of unit of company was involved whereas in case in hand
before this court, there is no closure of company rather it is the department of HPPWD which had
engaged petitioner without following of the procedure although subject to funds and availability of
work. As such, when there is no closure of any unit by respondent which the petitioner was
engaged, judgment of Mackinon Machenize cannot be made applicable.
21. After hearing the rival contentions of the parties and case law relied by them, it can be
safely concluded that delay in raising industrial dispute is certainly important aspect/circumstance
which court has to keep in mind while exercising discretion. In para Nos. 20 and 21 of the
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judgment as referred to in this case reported in 2013 (136) FLR 893 (SC) titled as Assistant
Engineer Rajasthan Development Corporation and another vs. Geetam Singh provides that
before exercising its judicial discretion, the Labour Court or Tribunal has to keep in mind all
relevant factors including the mode and manner of appointment, nature of employment, length of
service, the ground on which termination has been set aside and delay in raising industrial dispute
before grant of relief. It was observed by the Hon'ble Apex Court in judgment (2013 supra) before
that workman had worked for 286 days and had raised industrial dispute in 1992 whereas her
services have been terminated in 1986 and he raised industrial dispute after six years. The Hon'ble
Apex Court has held that though compensation awarded by Single Judge of the Hon'ble High Court
was too low and liable to be enhanced by the Division Bench but surely reinstatement of the
workman in the facts and circumstances is not the appropriate relief and thus Hon'ble Apex
Court awarded a lump-sum of Rs.1 lakh along-with interest @ 9% per annum if the respondent
failed to make payment of compensation within six weeks from the date of judgment. In the case in
hand before this court factors which have weighed are that the petitioner in all remained engaged
for about 08 years and actually worked for 622 days as per mandays chart on record and that the
services of petitioner were disengaged in October, 2002 who worked as non skilled worker and had
raised industrial dispute by issuance of demand notice after about 9 ½ years i.e. demand notice was
given on 23-1-2012. Taking into consideration factors mentioned above in pursuance to judgments
of Hon'ble Apex Court referred to above, petitioner would not be entitled either for reinstatement or
for back wages but a lump-sum compensation would be appropriate relief in view of judgment
2013 (139) FLR 25 (SC). The judgments relied upon by Ld. Counsel for petitioner on the matter of
delay and laches is more or less settled law that claim of the petitioner could not be solely declined
on the ground of delay and laches. Similarly, judgment of Hon'ble Apex Court in 2014 titled as
Raghubir Singh's case also does not come to the rescue of the petitioner as in this judgment also
the Hon'ble Apex Court has reiterated the mandate as given by the Hon'ble Apex Court in previous
judgment in the year 2013 i.e. Assistant Engineer, Rajasthan State Agriculture Marketing
Board, Sub-Division Kota and Mohan Lal's case. I have gone through these judgments which are
not attracted in this present case as this court not declining relief to the petitioner on the ground of
limitation rather on the basis of guidelines of Hon'ble Apex Court laid down in judgment of 2013.
Ld. Dy. D.A. representing State/respondents has relied upon the judgment of Hon'ble Apex Court
reported in AIR 2016 SC 2984 titled as Prabhakar v. Joint Director Sericulture Department
and another. I have gone through the judgment which deals reference under Section 10 of the
Industrial Disputes Act in which it has been held that Hon'ble High Court can intervene in writ
jurisdiction under Article 226 when reference has been challenged on the ground of inordinate
unexplained delay. Since the reference made by the Government in this case is not in challenge
before this Court, the above said judgment would not be attracted in the facts and circumstances of
the case. Moreso in view of observation qua facts made in judgment (2016) supra,
claimant/petitioner was found to be an educated person who was working as Clerk whereas in case
before this Court, the petitioner is an illiterate unskilled worker. For the above-said reasons, plea of
delay and laches would not eclipse claim of petitioner.
22. In view of foregoing discussion, a lump-sum compensation of Rs. 85,000/- (Rupees
eighty five thousand only) would be an appropriate relief to which the petitioner is entitled in the
facts and circumstances of the case as stated above. It is further made clear that amount of
compensation shall be paid within four months from the date of receipt of Award failing which the
petitioner would be entitled for interest @ 9% per annum from date of Award till its realization.
Issues No. 1, 2 and 4 are answered accordingly.
Issue No. 3
23. On the plea of non-maintainability of the claim petition under Section 10 of the
Industrial Disputes Act, Ld. Dy. D.A. representing respondent department has failed to allege in
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reply in what manner petition is not maintainable. Thus, vague plea merits rejection outright.
Otherwise also, from pleadings and evidence on record, no inference of claim petition being not
maintainable could be raised against claimant/petitioner. This issue is decided in favour of
petitioner and against the respondent.
RELIEF
24. As sequel to my findings on foregoing issues, the respondent is hereby directed to pay
the compensation of Rs. 85,000/- (Rupees eighty five thousand only) to the petitioner in lieu of the
reinstatement, back wages, seniority and past service benefits. Amount of compensation so
awarded will be paid by the respondent to the petitioner within four months from the date of receipt
of Award failing which the respondent shall be liable to pay the interest @ 9% per annum on the
said amount from the date of award till the date of its realization. In the peculiar circumstances of
the case, the parties are left to bear their own costs.
25. The reference is answered in the aforesaid terms.
26. A copy of this Award be sent to the appropriate Government for publication in the
official gazette.
27. File, after due completion be consigned to the Record Room.
Announced in the open Court today this 16th day of October, 2017.
Sd/-
(K.K. Sharma)
Presiding Judge,
Labour Court-cum-Industrial Tribunal,
Kangra at Dharamshala, H.P.
___________
IN THE COURT OF SHRI K.K. SHARMA, PRESIDING JUDGE, LABOUR COURT-CUM-
INDUSTRIAL TRIBUNAL, KANGRA AT DHARAMSHALA (HP)
Ref. No.
: 118/2016
Date of Institution : 04-03-2016
Date of Decision
: 16-10-2017
Shri Khem Raj s/o Shri Gulab Chand, r/o Village Findpar, P.O. Mindhal, Tehsil Pangi,
District Chamba, H.P.
..Petitioner.
Versus
The Executive Engineer, Division H.P.P.W.D. Killar, Tehsil Pangi, District Chamba, H.P.
..Respondent.
Reference under Section 10 (1) of the Industrial Disputes Act, 1947
For the Petitioner
: Sh. N. L. Kaundal, AR.
Sh. Vijay Kaundal, Adv.
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For the Respondent : Sh. Sanjeev Singh Rana, Dy. D.A.
AWARD
The reference given below has been received from the appropriate Government for
adjudication:
“Whether the industrial dispute raised by the worker Shri Khem Raj s/o Shri Gulab
Chand, r/o Village Findpar, P.O. Midhal, Tehsil Pangi, District Chamba, H.P. before
the Executive Engineer, Killar Division, H.P.P.W.D., Killar, Tehsil Pangi, District
Chamba, H.P. vide demand notce dated 6-1-2012 regarding his alleged illegal
termination of service during May, 2004 suffers from delay and laches? If not, whether
termination of services of Shri Khem Raj s/o Shri Gulab Chand, r/o Village Findpar,
P.O. Midhal, Tehsil Pangi, District Chamba, H.P. by the Executive Engineer, Killar
Division, H.P.P.W.D., Killar, Tehsil Pangi, District Chamba, H.P during May, 2004
without complying the provisions of the Industrial Disputes Act, 1947, is legal and
justified? If not, what amount of back wages, seniority, past service benefits and
compensation the above aggrieved workman is entitled to from the above employer?”
2. On receipt of reference from appropriate government, notices were issued to the parties
in pursuance to which claimant/petitioner has filed statement of claim.
3. Brief facts as enumerated in the present claim petition by the petitioner above named
revealed that he had been appointed on daily wage basis on muster roll in the year 1997 who
continuously worked till May, 2004 with the respondent. Averments made in the petition further
revealed that petitioner had worked for 160 days in each calendar year as per the criteria prescribed
for tribal area of Pangi Tehsil District Chamba and became eligible for continuous service
envisaged under statutory provisions of Section 25-B of the Industrial Disputes Act, 1947
(hereinafter referred to as "the Act" for brevity). Averments made in the petition revealed that the
services of petitioner had been interrupted by way of intermittent/artificial breaks given by the
respondent/department deliberately and as such breaks are required to be counted as "continuous
services" for the purposes of calculation of 160 days for the applicability of Section 25-B of the
Act. The grievance of petitioner remains that respondent/department had terminated/disengaged
petitioner from daily wage service orally without issuing one month's notice in writing stipulating
therein reason for retrenchment besides no retrenchment compensation was paid to petitioner when
respondent had been illegally terminated. It is also alleged that respondent had not followed the
provisions of Section 25-F of the Act while disengaging petitioner from service. It is stated that
after termination of the services of petitioner, petitioner had approached the respondent time and
again but of no avail. The grievance of petitioner further remains that when the services of
petitioner had been terminated, respondent/department had reengaged number of new workman
from time to time and while doing so, respondent had not followed the principle of "Last come,
First go" envisaged under Section 25-G of the Act. It is further alleged that respondent/department
had continuously retained junior to petitioner who are still in service namely Jeet Singh who
appointed in 1997, Geeta Ram in 1998, Laxmi Devi in 1999, Baldev in 2000, Parkash Chand in
2001, Trilok Chand in 2002, Hari Ram in 2003 and Ram Dei in 2003. The claimant/petitioner
claimed that he had spotless service record who never been charge-sheeted for any act of
indiscipline or negligence or his conduct and even at the time of verbal termination, no chargesheet
had been served upon him and the at the same time, no opportunity of hearing had been afforded to
him. The petitioner also alleges that he has remained unemployed ever since his illegal termination
from year of 2004 till the date of institution of present claim petition who had been nowhere
gainfully employed and was thus entitled for full back wages. Feeling aggrieved the action of
respondent in terminating the services of petitioner an industrial dispute was raised vide demand
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notice dated 23-1-2012 copy of the same was forwarded to Labour Officer, Chamba for further
necessary action. It is alleged that Labour Officer, Chamba could not resolve the dispute and failure
report under Section 12(4) of the Industrial Disputes Act and the matter was referred to appropriate
government i.e. Labour Commissioner, Shimla who declined to refer the case of petitioner for
adjudication in pursuance to which the petitioner had approached the Hon'ble High Court of H.P.
by filing CWP No. 4407/2015 which had been decided on 2-12-2015 and order of the Labour
Commissioner, Shimla has been setting aside. Accordingly alleging respondent to have committed
violation of statutory provision of Section 25-F, Section 25-G and Section 25-H of the Industrial
Disputes Act, 1947 and thus petitioner prays for setting aside illegal termination of petitioner by the
respondent/department in May, 2004 as well as period of intermittent/fictional breaks deliberately
given time and again during entire service of petitioner between 1997 to 2004. He further prayed
for reinstatement in service along-with full back wages, seniority including continuity in service
and to any other relief petitioner is entitled.
4. The respondent contested claim petition, filed reply interalia taken preliminary
objections of maintainability, claim petition being bad on account of delay and laches. On merits
denied that petitioner had worked for more than 160 days in each calendar year rather clarified by
stating that petitioner was engaged as daily waged beldar in 1994 who remained engaged till 2004
but had worked intermittently as petitioner used to come and attend the work at his own sweet will
and convenience. Relying upon the mandays chart, it has been categorically pleaded by the
respondent that petitioner had not completed 160 days in each calendar year as required for tribal
area of Pangi Tehsil. The allegations of fictional breaks given by respondent to the petitioner have
been specifically denied. In so far as engagement of persons junior to petitioner mentioned in para
No. 4 of the claim petition were appointed as per order of Labour Court and no other juniors to the
petitioner had been retained in service by the respondent. It is further stated that name of person
Sham Lal and Gautam Singh had been engaged on harness case and as such there was no violation
of the principle of the Industrial Disputes Act, 1947. On the plea of termination of service of
petitioner, respondent specifically alleges that petitioner had left the job at his own will therefore
serving of notice or pay in lieu thereof was not required. Reiterating its stand respondent has
maintained that petitioner had left the work of his own sweet will and the persons mentioned in
para No.4 are stated to have engaged as per direction of the Labour Court-cum-Industrial Tribunal
Dharamshala and respondent had not violated the principle of "Last come, First go". It is also
contended that if petitioner had been terminated in 2004, he would have definitely raised industrial
dispute immediately and that after ten years petitioner is stated to be agitating the matter which is
bad on account of delay and laches. It is also contended that since the services of petitioner had not
been terminated by the respondent, question of issuance of notice or wages in lieu thereof did not
arise and at the same time, there was no necessity for charge-sheet or issuing any notice of
petitioner after his termination. It is contended that petitioner was agriculturist and gainfully
employed and was thus not entitled for back wages.
5. The petitioner filed rejoinder, reiterated his stand as maintained in the claim petition.
Further asserted that provisions of Limitation Act did not eclipse the claim of petitioner in totality
besides allegation of violation of principle of "Last come First go" was specifically denied.
6. In order to prove his case, petitioner had examined himself as PW1 tendered/proved
his affidavit Ex. PW1/A under Order 18 Rule 4 CPC, copy of seniority list Ex. PW1/B, copy of list
of workers Ex. PW1/C and closed evidence. On the other hand, repudiating the evidence led by the
petitioner, respondent examined RW1 Shri D.R. Chauhan, the then Executive Engineer, HPPWD
Division Killar as RW1 tendered/proved mandays chart of petitioner Ex. RW1/B, copy of mandays
of workers Ex. RW1/C and closed the evidence.
7. I have heard the Ld. Counsel of petitioner and Ld. Dy. D.A. representing respondent,
gone through records of the case carefully relevant for disposed of this case.
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8. From the contentions raised, following issues were framed on 30-8-2017 for
determination:
1. Whether the industrial dispute raised by petitioner vide demand notice dated
06-01-2012 qua his termination of service during May, 2004 by respondent suffers
from the vice of delay and laches as alleged? If so, its effect?
...OPP.
2. Whether termination of the services of the petitioner by the respondent during May,
2004 is/was illegal and unjustified as alleged?
...OPP.
3. If issue no. 2 is proved in affirmative, to what service benefits the petitioner is entitled
to?
...OPP.
4. Whether the claim petition is not maintainable in the present form as alleged? ...OPR.
Relief.
9. For the reasons detailed here under, my findings on the above issues are as follows:—
Issue No.1 : Discussed
Issue No. 2 : Yes
Issue No. 3 : Discussed
Issue No. 4 : No
Relief : Petition is partly allowed awarding compensation of Rs.60,000/- per operative
part of award.
REASONS FOR FINDINGS
Issues No.1 to 3 :
10. All these issues have been taken up together for discussion being interconnected which
can be disposed of simultaneously without repetition of evidence.
11. Relationship of petitioner having been engaged as daily waged beldar by respondent on
muster roll basis in the year 1994 continuously worked till May, 2004 with the respondent is not in
dispute. Admittedly, petitioner was engaged without any written order or settlement of terms and
conditions by the respondent. It is equally not in dispute that no written order was passed while
terminating service of the petitioner as claim of respondent remains that it had not retrenched
petitioner from service who had abandoned the job of his own and used to work intermittently as
per his own wish and convenience. Admittedly, the reference of appropriate govt. does not relate to
plea of fictional breaks but only with regard to petitioner's termination from service. In the
backdrop of foregoing admitted facts on record, claim of petitioner requires to be adjudicated with
a view to determine if petitioner is entitled for relief of reinstatement and back wages along-with
seniority and past service benefits and compensation as claimed by him.
12. Stepping into witness box as PW1 has sworn in affidavit Ex. PW1/A reiterating and
reaffirming his pleadings as stipulated in claim petition. In his affidavit he has claimed to have
worked with the respondent/department for more than 160 days in Pangi Sub Division Chamba
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District and remained engaged from 1994 to May, 2004. He has also stated on oath that no notice
under Section 25-F of the Act was given by the respondent before terminating his service and at the
same time no compensation in lieu thereof notice period was paid to him and thus his termination
was illegal and void entitling petitioner benefit of reinstatement of service with full back wages and
all the other consequential service benefits. The petitioner has further alleged on oath that
respondent/department after terminating his services in May, 2004 by oral order had engaged
several co-workers who were junior to petitioner were retained in service. Not only this, the
persons who were junior to petitioner are stated to have been regularized in service and thus
respondent had not followed the mandate of Sections 25-G and 25-H of the Act which was
obligatory on its part. The case of petitioner also remains that he had served respondent with due
diligence and had spotless service record as respondent/department had never called any
explanation or raised charge-sheet against him but even while retrenching petitioner from service,
no notice was given. The petitioner has also explained reason for not approaching the authorities
under Labour Act and thereafter before this Tribunal, as there existed no road between Chamba
town to Pangi Tehsil till 2012 and petitioner had moved before the Labour Officer raising demand
notice consequent upon which a failure report was submitted and as the Labour Commissioner did
not make reference for industrial dispute raised by petitioner, the petitioner had moved before the
Hon'ble High Court by filing CWP where direction was passed for making reference to the Labour
Court due to which delay had occurred and same was satisfactorily explained.
13. In so far as plea of abandonment raised by respondent is concerned, the same merits
rejection in view of the fact that respondent had failed to produce any record by which it could be
established that whenever petitioner absented from his duty as also reflected in mandays chart Ex.
RW1/B any notice or letter was ever issued. On this point respondent as RW1 has specifically
admitted that whenever petitioner abandoned the job, no notice had been issued. RW1 specifically
admitted that no departmental inquiry was initiated against petitioner even after May, 2004. No
reason whatsoever has been assigned for such any action or omission on the part of respondent in
not initiating any departmental proceedings or making correspondence calling upon the petitioner
to join service. This prima facie belies the stand taken by the respondent as abandonment has to be
proved like any other fact in issue. The petitioner, on the other hand, as PW1 in cross-examination
has specifically denied that he used to leave the job in between and attended the work intermittently
rather he has claimed that intermit breaks had been deliberately given to him by the respondent in
the service record of petitioner so that petitioner did not complete 160 days of work as required for
Pangi Tehsil area and also for applicability of Section 25-B of the Act. As such, in absence of any
specific and reliable evidence led by respondent, it would be unsafe to hold that respondent had
established plea of abandonment.
14. A bare glance on the mandays chart Ex. RW1/B would reveal that petitioner had
worked for 6 days in the year 1994, 137 days in 1997, 45 days in 1998, 121 days in 1999 and 5
days in 2004 and thus a total of his service in 1994 to 2004 in 05 years he had worked for 314 days
in his entire service period. Be it noticed that petitioner had not worked for more than 160 days and
as there is no reference from the Labour Commissioner, Shimla on the point of artificial breaks, this
court is to confine its findings only with regard to alleged illegal termination. It is evident from
mandays chart Ex. RW1/B that in the year 2004 the petitioner had merely worked for 81 days and
thus immediately in preceding 12 calendar months from the month of termination of petitioner had
not rendered service of 160 days. As such, the respondent is held to have not violated the
provisions of Section 25-F of the Act.
15. Ld. Counsel/Authorized Representative for petitioner has contended with vehemence
that large number of workers who were junior to petitioner had been appointed and these workers
have been retained in service and regularized. The grievance of petitioner remains that principle of
"Last come First go" was not followed as the juniors were retained and services of petitioner
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despite being senior was terminated without any valid reason. Ex. PW1/B is the year-wise
seniority/mandays of daily waged workers who were junior to the petitioner and had joined in the
year 1999 or thereafter. All of these co-workers shown in Ex. PW1/C the year-wise mandays
details of workers of Division HPPWD Killar were certainly junior to petitioner who were given
sufficient work existing in those years more than 200 days in a year whereas the petitioner had been
not given muster roll for the whole month. Ex. PW1/C also established that all the co-workers
shown in this document have worked for more than 160 days in most of the years although they
were junior to petitioner. Evidently, there is no iota of evidence of respondent establishing that
petitioner was called upon to join for service at any time after May, 2004 even at the time when
junior persons were reengaged. That being so the respondent had certainly violated the provisions
of Section 25-G of the Act as the juniors workers mentioned in para No. 4 of the affidavit were
retained whereas petitioner was senior from these co-workers having joined service in 1994 was
terminated and even thereafter respondent omitted to afford opportunity to petitioner for
reemployment for work which also violates the provisions of Section 25-H of the Act. Ld. Counsel
for petitioner has placed reliance upon judgment of Central Bank of India vs. S. Satyam, 1996 (5)
SCC 419 in which Hon'ble Apex Court has held that for the applicability of Section 25-G and 25-H
of the Act, there was no necessity of claimant/petitioner to have worked for 240 days as in case
of provisions of Section 25-F of the Act.
16. Ld. Counsel for petitioner has contended that after petitioner's termination in May,
2004, he had remained unemployed and was not earning anything thereafter as such was entitled
for full back wages. Repudiating the arguments of Ld. Counsel of petitioner, Ld. Dy. D.A. for the
State has taken this court through cross-examination of the petitioner who has admitted that he had
cultivable land with him and also worked a private labourer. Thus, plea of having remained not
gainfully employed gets belied admission of petitioner in cross examination in which he had
maintained that he had been earning from agricultural land as well as he has been working as daily
wager privately. Reliance has been placed on the judgment of Hon'ble Apex Court North East
Karnataka Road Transport Corporation vs. M. Nagangouda (2007) 10 SCC 765 in which
Division Bench comprising of Justice A.R. Lakshmanan and Justice Altamas Kabir had held that
"term gainfully employment would also include self employment wherefrom income is
generated. It was income either from employment in an establishment or from self
employment merely differentiates the sources from which income is generated, the end use
being the same". Applying the ratio of judgment of 2007 (supra) to this case since the petitioner
was earning from his agricultural and manual pursuits, the same were sufficient to maintain him
and his family. It is thus held that petitioner was gainfully employed. Be it stated here that Hon'ble
Apex Court in Deepali Gundu Surwase's case has held that the Labour Court was not justified in
holding that merely because the respondent was receiving agriculture income, he cannot be treated
to be engaged in gainful employment. Since the petitioner had income from agriculture pursuits for
his livelihood it cannot be stated that petitioner was not gainfully employed and thus would not be
entitled full back wages. In view of the forgoing discussion, it is held that the relationship of
workman and employer existed between petitioner and respondent and that petitioner was illegally
retrenched without compliance of 25-G and Section 25-H of the Act although remained gainfully
employed after his retrenchment. Thus, applying the ratio of judgment of Hon'ble Apex Court
(2007 supra), it may not be erroneous to hold that petitioner was gainfully employed and thus
would be not entitled for back wages for the period he was out of job on being terminated by the
respondent.
17. Lastly, Ld. Dy. D.A. for State has contended with vehemence that there is inordinate
and explained delay which disentitles petitionEr relief claimed for by him. On the other hand, Ld.
counsel for the petitioner has relied upon the judgment of Hon'ble Apex Court titled Raghubir
Singh vs. General Manager, Haryana Roadways, Hissar reported in 2014 Lab IC 4266 (SC)
and the relevant paras of the judgment are produced below for reference:
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“12. Therefore, in our considered view, the observations made by this Court in the
Rajasthan State Agriculture Marketing Board case (supra) upon which the learned
Additional Advocate General for the State of Haryana has placed reliance cannot be
applied to the fact situation of the case on hand, for the reason that the Labour Court
has erroneously rejected the reference without judiciously considering all the relevant
factors of the case particularly the points of dispute referred to it and answered the 2nd
issue regarding the reference being barred by limitation but not on the merits of the
case. The said decision has no application to the fact situation and also for the reason
the catena of decisions of this Court referred to supra, wherein this Court has
categorically held that the provisions of Limitation Act under Article 137 has no
application to make reference by the appropriate government to the Labour
Court/Industrial Tribunal for adjudication of existing industrial dispute between
workmen and the employer.
13. In the case on hand, no doubt there is a delay in raising the dispute by the
appellant; the Labour Court nevertheless has the power to mould the relief
accordingly. At the time of adjudication, if the dispute referred to the Labour
Court is not adjudicated by it, it does not mean that the dispute ceases to exist.
The appropriate government in exercise of its statutory power under Section 10(1)(c)
of the Act can refer the industrial dispute, between the parties, at any time, to either the
jurisdictional Labour Court/Industrial Tribunal as interpreted by this Court in the Avon
Services case referred to supra. Therefore, the State Government has rightly exercised
its power under Section 10(1)(c) of the Act and referred the points of dispute to the
Labour Court as the same are in accordance with the law laid down by this Court in
Avon Services & Sapan Kumar Pandit cases referred to supra.
14. Further, the workman cannot be denied to seek relief only on the ground of delay
in raising the dispute as held in the case of S.M. Nilajkar & Ors. v. Telecom
District Manager, Karnataka[4] it was held by this Court as follows-
“17. It was submitted on behalf of the respondent that on account of delay in raising
the dispute by the appellants the High Court was justified in denying relief to the
appellants. We cannot agree...... in Ratan Chandra Sammanta and Ors. v. Union of
India and Ors. (supra)1993 AIR SCW 2214, it was held that a casual labourer
retrenched by the employer deprives himself of remedy available in law by delay itself,
lapse of time results in losing the remedy and the right as well. The delay would
certainly be fatal if it has resulted in material evidence relevant to adjudication being
lost and rendered not available. However, we do not think that the delay in the case at
hand has been so culpable as to disentitle the appellants for any relief.....” (Emphasis
laid by the Court). In view of the legal principles laid down by this Court in the above
judgment, the reference of the industrial dispute made in the case on hand by the State
Government to the Labour Court to adjudicate the existing industrial dispute between
the parties was made within a reasonable time, considering the circumstances in which
the workman was placed, firstly, as there was a criminal case pending against his and
secondly, the respondent had assured the workman that he would be reinstated after his
acquittal from the criminal case. Moreover, it is reasonable to adjudicate the industrial
dispute in spite of the delay in raising and referring the matter, since there is no
mention of any loss or unavailability of material evidence due to the delay. Thus, we
do not consider the delay in raising the industrial dispute and referring the same to the
Labour Court for adjudication as gravely erroneous and it does not debar the workman
from claiming rightful relief from his employer.
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15. In the case of Ajaib Singh v. The Sirhind Co-operative Marketing-cum-Processing
Service Society Limited & Anr.[5] this Court has opined that relief cannot be denied to
the workman merely on the ground of delay, stating that:—
“10. It follows, therefore, that the provisions of Article 137 of the Schedule to
Limitation Act, 1963 are not applicable to the proceedings under the act and that the
relief under it cannot be denied to the workman merely on the ground of delay. The
plea of delay if raised by the employer is required to be proved as a matter of fact by
showing the real prejudice and not as a merely hypothetical defence. No reference to
the labour court can be generally questioned on the ground of delay alone. Even in a
case where the delay in shown to be existing, the tribunal, labour court or board,
dealing with the case can appropriately mould the relief by declining to grant back
wages to the workman till the date he raised the demand regarding his illegal
retrenchment/ termination or dismissal. The Court may also in appropriate cases direct
the payment of part of the back wages instead of full back wages.....” (Emphasis laid
by the Court).
16. Hence, we are of the opinion, having regard to the fact and circumstances of the case
that there is no delay or laches on the part of the workman from the date of his
acquittal in the criminal case. Thereafter, upon failure of the respondent in adhering to
the assurance given to the workman that he would be reinstated after his acquittal from
the criminal case, the workman approached the conciliation officer and the State
Government to make a reference to the Labour Court for adjudication of the dispute
with regard to the order of dismissal passed by the respondent. Keeping in mind the
date of acquittal of the appellant and the date on which he approached the conciliation
officer by raising the dispute, since the respondent had not adhered to its assurance, the
State Government had rightly referred the dispute for its adjudication. Therefore it
cannot be said that there was a delay on the part of the appellant in raising the dispute
and getting it referred to the Labour Court by the State Government.
17. Further, the Labour Court on an erroneous assumption of law framed the
additional issue regarding the limitation in raising the dispute and its reference
by the State Government to the Labour Court. Thus, the Labour Court has ignored
the legal principles laid down by this Court in the cases referred to supra. The award
passed by the Labour Court was accepted erroneously by both the learned single Judge
and the Division Bench of the High Court by dismissing the Civil Writ Petition & the
Letters Patent Appeal without examining the case in its proper perspective, keeping in
view the power of the State Government under Section 10(1)(c) and the object and
intendment of the Act. Not adjudicating the existing industrial dispute on merits
between the parties referred to it may lead to disruption of industrial peace and
harmony, which is the foremost important aspect in Industrial Jurisprudence as the
same would affect the public interest at large.
18. Ld. Dy. D.A. representing respondent department has also contended with vehemence
that claim petition is barred by limitation on account of delay and laches. It has been pointed that
termination of petitioner in this case took place on 2004 and the industrial dispute was raised after
several years of retrenchment. Repudiating the argument by Ld. Counsel, Ld. AR for the petitioner
has placed reliance upon judgment reported in 2007 LHLJ 903 Hon'ble High Court of H.P.
(Bhatag Ram's case) in which it has been held that delay in raising dispute may be considered by
court at the time of granting final relief however in various other judgments even longer delay has
been condoned. In Divisional Manager, HPFC & another vs. Garibu Ram, Latest HLJ 2007
(HP) 1160, delay of more than 10 years was condoned besides Hon'ble High Court has held that
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principle of Limitation Act is not applicable to the industrial dispute. Similar view was taken by
Hon'ble Apex Court in Ajayab Singh vs. Sirhind Co-operative Marketing-cum-Processing
Society Limited and Another (1999) 6 SCC 82 in which it has been held that the principle of
Limitation Act, 1963 did not apply to the proceeding under the Industrial Disputes Act.
19. Relying upon the aforestated judgment, it has been contended that claim of petitioner
cannot be defeated on the point of delay and laches. Repudiating arguments advanced by ld.
Counsel for petitioner, Ld. Dy. D.A. has placed reliance upon the judgment of Hon'ble Apex Court
titled as Assistant Engineer, Rajasthan State Agriculture Marketing Board, Sub-Division
Kota and Mohan Lal [2013 (139) FLR 125], the relevant para of the judgment are produced
below for reference:
Industrial Disputes Act, 1947-Sections 25-F and 10- Limitation Act, 1963- Section 5-
Industrial dispute-Termination of service-Finding of Labour Court that workman had
completed 240 days in calendar year and her termination was in violation of section
25-F of the I. D. Act- Workman worked from 1-11-1984 to 17-2-1986 in all 286 days
during employment. Her services terminated on 18.2.1986. Industrial dispute raised
after 6 years of termination. Admitted delay of 6 years not kept in view by the Labour
Court-Judicial discretion exercised by the Labour Court flawed and unsustainable.
Reinstatement of the workman not the appropriate relief. In lieu of reinstatement
compensation of Rs. one lac directed to be paid to the workman by the
appellantemployer within six weeks failing which interest @ 9% p.a. will be payable.
[Paras 21 and 22]
Limitation Act, 1963. Section 5-Industrial Disputes Act, 1947-Section 25-F-
Termination of service- Industrial dispute raised after six years- Limitation Act not
applicable to reference made under the I.D. Act-Delay in raising industrial
disputes definitely an important circumstances which the Labour Court must
keep in view before granting relief.
20. Repudiating the arguments by Ld. Dy. D.A. for the State, Ld. Counsel for
claimant/petitioner has relied upon the judgment of Hon'ble Apex Court in case titled as Tapash
Kumar Paul vs. BSNL & another reported in AIR 2015 SC 357 wherein Hon'ble Court held that
a Court may pass an order of reinstatement by awarding compensation but the same has to be based
on justifiable grounds. In this judgment, it was held that compensation can be granted in a situation
where the industry is closed or that employees has superannuated or going to retire shortly and no
period is left to his credit or where workman has been rendered in capacitated to discharge duties
cannot be reinstated and/or fourthly when he has lost confidence of the management to discharge
duties. It was observed that there may be appropriate cases on facts which may justify substituting
an order of reinstatement by award of compensation but that has to be supported by some legal
and justifiable reasons indicating why the reinstatement should be followed to be substituted
by award of compensation. Ld. Counsel for the petitioner with the aid of above-said judgment had
argued that there are only four situations when a worker may be awarded compensation instead of
reinstatement but the judgment has certainly not been correctly appreciated by Ld. Counsel as this
judgment postulates probable four situations which are illustrate in nature where compensation may
be awarded instead of reinstatement but that does not mean that except the four grounds, no other
ground would be appropriate for awarding compensation. In the case in hand before this court, it
has come that petitioner had abandoned the job who did not report for duty for several years and
later gave notice requesting for joining of duties but the conditions in para No.5 of judgment (2015
supra) even if not met requirement, cannot be a ground to reinstate the petitioner and it is only
compensation which would be appropriate relief. Ld. Counsel for the petitioner has relied upon the
judgment of Hon'ble Apex Court titled as Deepali Gundu Surwase vs. Kranti Junior Adhyapak
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Mahavidyalaya (D.Ed.) and Ors. reported in AIR 2014 SC (Supp) 121, Raghubir Singh vs.
General Manager, Haryana Roadways, Hissar reported in 2014(3) Apex Court Judgments 652.
I have gone through these judgments and of view that they don't come to rescue the petitioner on
point of reinstatement instead of compensation. Ld. Dy. D.A. for State on the other hand has relied
upon the judgment of Hon'ble Apex Court in Vice Chancellor, Lucknow University, Lucknow,
Uttar Pradesh v. Akhilesh Kumar Khare & another reported in AIR 2015 SC 3473. It has been
contended that engagement of claimant/petitioner in this case was not through regular mode of
recruitment and applying the ratio of this judgment AIR 2015 SC supra, claim of petitioner for
reinstatement can be negated and thus compensation would be sufficient for redressal of grievance
of the claimant/petitioner. Similarly, in 2016 (1) Him. L.R. 502 titled as State of Himachal
Pradesh and another vs. Chaman Singh relied by Ld. AR for petitioner interpretation of Section
137 of Limitation Act was involved which provides that Article 137 of Limitation Act did not apply
to industrial disputes. In 2014 (3) Apex Court Judgment 652 (SC) similar view was reiterated
which clearly mandates that claimant/petitioner cannot be denied relief sought for merely on the
ground of delay and laches. That being so, the law remains as it was that ground of delay and
laches, claimant/petitioner cannot be denied relief rather the court has to consider various aspects
before moulding relief and the case in hand it would not be erroneous to mention here that the
claimant/petitioner can be reasonably indemnified by ordering compensation and not by
reinstatement. In so far as judgment of AIR 2015 SC 1373 titled as Mackinon Machenize &
Company Ltd. vs. Mackinon Employees Union is concerned, the Hon'ble Apex Court has held
on closure of unit of company principle of "Last come First go" was not followed which violated
Section 25-G of Industrial Disputes Act and retrenchment was held illegal entitling petitioner for
retrenchment compensation. Since the facts of case of Mackinon Machenize's case are different
from case in hand as in former closure of unit of company was involved whereas in case in hand
before this court, there is no closure of company rather it is the department of HPPWD which had
engaged petitioner without following of the procedure although subject to funds and availability of
work. As such, when there is no closure of any unit by respondent which the petitioner was
engaged, judgment of Mackinon Machenize cannot be made applicable.
21. After hearing the rival contentions of the parties and case law relied by them, it can be
safely concluded that delay in raising industrial dispute is certainly important aspect/circumstance
which court has to keep in mind while exercising discretion. In para Nos. 20 and 21 of the
judgment as referred to in this case reported in 2013 (136) FLR 893 (SC) titled as Assistant
Engineer Rajasthan Development Corporation and another vs. Geetam Singh provides that
before exercising its judicial discretion, the Labour Court or Tribunal has to keep in mind all
relevant factors including the mode and manner of appointment, nature of employment, length of
service, the ground on which termination has been set aside and delay in raising industrial dispute
before grant of relief. It was observed by the Hon'ble Apex Court in judgment (2013 supra) before
that workman had worked for 286 days and had raised industrial dispute in 1992 whereas her
services have been terminated in 1986 and she raised industrial dispute after six years. The Hon'ble
Apex Court has held that though compensation awarded by Single Judge of the Hon'ble High Court
was too low and liable to be enhanced by the Division Bench but surely reinstatement of the
workman in the facts and circumstances is not the appropriate relief and thus Hon'ble Apex
Court awarded a lump-sum of Rs.1 lakh along-with interest @ 9% per annum if the respondent
failed to make payment of compensation within six weeks from the date of judgment. In the case in
hand before this court factors which have weighed are that the petitioner in all remained engaged
for about 05 years and actually worked for 314 days as per mandays chart on record and that the
services of petitioner were disengaged in May, 2004 who worked as non skilled worker and had
raised industrial dispute by issuance of demand notice after about eight years i.e. demand notice
was given on 06-1-2012. Taking into consideration factors mentioned above in pursuance to
judgments of Hon'ble Apex Court referred to above, petitioner would not be entitled either for
reinstatement or for back wages but a lump-sum compensation would be appropriate relief in view
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of judgment 2013 (139) FLR 25 (SC). The judgments relied upon by Ld. Counsel for petitioner on
the matter of delay and laches is more or less settled law that claim of the petitioner could not be
solely declined on the ground of delay and laches. Similarly, judgment of Hon'ble Apex Court in
2014 titled as Raghubir Singh's case also does not come to the rescue of the petitioner as in this
judgment also the Hon'ble Apex Court has reiterated the mandate as given by the Hon'ble Apex
Court in previous judgment in the year 2013 i.e. Assistant Engineer, Rajasthan State
Agriculture Marketing Board, Sub-Division Kota and Mohan Lal's case. I have gone through
these judgments which are not attracted in this present case as this court not declining relief to the
petitioner on the ground of limitation rather on the basis of guidelines of Hon'ble Apex Court laid
down in judgment of 2013. Ld. Dy. D.A. representing State/respondents has relied upon the
judgment of Hon'ble Apex Court reported in AIR 2016 SC 2984 titled as Prabhakar v. Joint
Director Sericulture Department and another. I have gone through the judgment which deals
reference under Section 10 of the Industrial Disputes Act in which it has been held that Hon'ble
High Court can intervene in writ jurisdiction under Article 226 when reference has been challenged
on the ground of inordinate unexplained delay. Since the reference made by the Government in this
case is not in challenge before this Court, the above said judgment would not be attracted in the
facts and circumstances of the case. Moreso in view of observation qua facts made in judgment
(2016) supra, claimant/petitioner was found to be an educated person who was working as Clerk
whereas in case before this Court, the petitioner is an illiterate unskilled worker. For the above-said
reasons, plea of delay and laches would not eclipse claim of petitioner.
22. In view of foregoing discussion, a lump-sum compensation of Rs. 60,000 (Rupees
sixty thousand only) would be an appropriate relief to which the petitioner is entitled in the facts
and circumstances of the case as stated above. It is further made clear that amount of compensation
shall be paid within four months from the date of receipt of Award failing which the petitioner
would be entitled for interest @ 9% per annum from date of Award till its realization. Issues no. 1
to 3 are answered accordingly.
Issue No. 4
23. On the plea of non-maintainability of the claim petition under Section 10 of the
Industrial Disputes Act, Ld. Dy. D.A. representing respondent department has failed to allege in
reply in what manner petition is not maintainable. Thus, vague plea merits rejection outright.
Otherwise also, from pleadings and evidence on record, no inference of claim petition being not
maintainable could be raised against claimant/petitioner. This issue is decided in favour of
petitioner and against the respondent.
RELIEF
24. As sequel to my findings on foregoing issues, the respondent is hereby directed to pay
the compensation of Rs. 60,000 (Rupees sixty thousand only) to the petitioner in lieu of the
reinstatement, back wages, seniority, past service benefits. Amount of compensation so awarded
will be paid by the respondent to the petitioner within four months from the date of receipt of
Award failing which the respondent shall be liable to pay the interest @ 9% per annum on the said
amount from the date of award till the date of its realization. In the peculiar circumstances of the
case, the parties are left to bear their own costs.
25. The reference is answered in the aforesaid terms.
26. A copy of this Award be sent to the appropriate Government for publication in the
official gazette.
27. File, after due completion be consigned to the Record Room.
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Announced in the open Court today this 16th day of October, 2017.
Sd/-
(K. K. Sharma)
Presiding Judge,
Labour Court-cum-Industrial Tribunal,
Kangra at Dharamshala, H.P.
__________
IN THE COURT OF SHRI K. K. SHARMA, PRESIDING JUDGE, LABOUR COURT-
CUM-INDUSTRIAL TRIBUNAL, KANGRA AT DHARAMSHALA (HP)
Ref No. : 173/2016
Date of Institution : 17.03.2016
Date of Decision : 16.10.2017
Shri Pritam Singh s/o Shri Suba Ram, r/o Village Chhow, P.O. Purthi, Tehsil Pangi, District
Chamba, H.P.
….Petitioner.
Versus
The Executive Engineer, H.P.P.W.D., Division Killar, Tehsil Pangi, District Chamba, H.P.
....Respondent.
Reference under Section 10 (1) of the Industrial Disputes Act, 1947
For the Petitioner : Sh. N.L. Kaundal, AR
Sh. Vijay Kaundal, Adv.
For the Respondent : Sh. Sanjeev Singh Rana, Dy. D.A.
AWARD
The reference given below has been received from the appropriate Government for
adjudication:
“Whether alleged termination of services of Sh. Pritam Singh s/o Sh. Suba Ram r/o
Village Chhow, P/O Purthi, Tehsil Pangi, District Chamba, H.P. from 2004, by the
Executive Engineer, H.P.P.W.D Division, Killar, Tehsil Pangi, District Chamba, H.P
who had worked as Beldar on daily wages basis only for 78 days, 102 days, 26 days,
75.5 days, 111 days, 137 days and 79 days during the year 1998, 1999, 2000, 2001,
2002, 2003, 2004 and had raised his industrial dispute vide demand notice dated
8/5/2012, after delay of more than 7 years, allegedly without complying with the
provisions of the Industrial Disputes Act, 1947, is legal and justified? If not, keeping in
view of working period as mentioned above and delay of more than 7 years in raising
the industrial dispute, what amount of back wages, seniority, past service benefits and
compensation the above ex-worker is entitled to from the above employer/
management?”
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2. On receipt of reference from appropriate government, notices were issued to the parties
in pursuance to which claimant/petitioner has filed statement of claim.
3. Brief facts as enumerated in the present claim petition by the petitioner above named
revealed that he had been appointed on daily wage basis on muster roll in the year 1997 who
continuously worked till August, 2004 with the respondent. Averments made in the petition further
revealed that petitioner had worked for 160 days in each calendar year as per the criteria prescribed
for tribal area of Pangi Tehsil, District Chamba and became eligible for continuous service
envisaged under statutory provisions of Section 25-B of the Industrial Disputes Act, 1947
(hereinafter referred to as "the Act" for brevity). Averments made in the petition revealed that the
services of petitioner had been interrupted by way of intermittent/artificial breaks given by the
respondent/department deliberately and as such breaks are required to be counted as continuous
services' for the purposes of calculation of 160 days for the applicability of Section 25-B of the Act.
The grievance of petitioner remains that respondent/department had terminated/disengaged
petitioner from daily wage service orally without issuing one month's notice in writing stipulating
therein reason for retrenchment besides no retrenchment compensation was paid to petitioner when
respondent had been illegally terminated. It is also alleged that respondent had not followed the
provisions of Section 25-F of the Act while disengaging petitioner from service. The grievance of
petitioner further revealed that during years 2003 to 2005, respondent/department had disengaged
the services of more than 500 daily waged workmen in different Divisions of HPPWD and IPH. It
is stated that it has came to the knowledge to the petitioner from reliable sources that
respondent/department had engaged more than 200 contractors during 2003 onwards. It is stated
that after termination of the services of petitioner, petitioner had approached the respondent time
and again but of no avail. The grievance of petitioner further remains that when the services of
petitioner had been terminated, respondent/department had reengaged number of new workmen
from time to time and while doing so, respondent had not followed the principle of 'Last' come,
First go" envisaged under Section 25-G of the Act. It is further alleged that respondent/department
had continuously retained junior to petitioner who are still in service namely Janto Devi who
appointed in 2001, Jeet Singh in 1997, Gijja Ram in 1999, Laxmi Devi in 1999 and Gian Chand in
1997. The claimant/petitioner claimed that he had spotless service record who never been charge-
sheeted for any act of indiscipline or negligence or his conduct and even at the time of verbal
termination, no chargesheet had been served upon him and the at the same time, no opportunity of
hearing had been afforded to him. The petitioner also alleges that he has remained unemployed ever
since his illegal termination from year of 2004 till the date of institution of present claim petition
who had been nowhere gainfully employed and was thus entitled for full back wages. Feeling
aggrieved the action of respondent in terminating the services of petitioner an industrial dispute was
raised vide demand notice dated 08-5-2012 copy of the same was forwarded to Labour Officer,
Chamba for further necessary action. It is alleged that Labour Officer, Chamba could not resolve
the dispute and failure report under Section 12(4) of the Industrial Disputes Act and the matter was
referred to appropriate government i.e. Labour Commissioner, Shimla who declined to refer the
case of petitioner for adjudication in pursuance to which the petitioner had approached the Hon'ble
High Court of H.P. by filing CWP No. 8315/2012 which had been decided on 20-12-2012 and
order of the Labour Commissioner, Shimla has been setting aside. Accordingly alleging respondent
to have committed violation of statutory provision of Section 25-F, Section 25-G and Section 25-H
of the Industrial Disputes Act, 1947 and thus petitioner prays for setting aside illegal termination of
petitioner by the respondent/department in September, 2004 as well as period of intermittent/
fictional breaks deliberately given time and again during entire service of petitioner between 1997
to August, 2004. He further prayed for reinstatement in service along-with full back wages,
seniority including continuity in service and to any other relief petitioner is entitled.
4. The respondent contested claim petition, filed reply inter-alia taken preliminary
objections of maintainability, claim petition being bad on account of delay and laches. On merits
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denied that petitioner had worked for more than 160 days in each calendar year rather clarified by
stating that petitioner was engaged as daily waged Beldar in 1998 who remained engaged till 2004
but had worked intermittently as petitioner used to come and attend the work at his own sweet will
and convenience. Relying upon the mandays chart, it has been categorically pleaded by the
respondent that petitioner had not completed 160 days in each calendar year as required for tribal
area of Pangi Tehsil. The allegations of fictional breaks given by respondent to the petitioner have
been specifically denied. In so far as engagement of persons junior to petitioner mentioned in para
No. 4 of the claim petition were appointed as per order of Labour Court and no other juniors to the
petitioner had been retained in service by the respondent. It is further stated that name of person
Sham Lal and Gautam Singh had been engaged on harness case and as such there was no violation
of the principle of the Industrial Disputes Act, 1947. On the plea of termination of service of
petitioner, respondent specifically alleges that petitioner had left the job at his own will therefore
serving of notice or pay in lieu thereof was not required. Reiterating its stand respondent has
maintained that petitioner had left the work of his own sweet will and the persons mentioned in
para No.4 are stated to have engaged as per direction of the Labour Court-cum-Industrial Tribunal
Dharamshala and respondent had not violated the principle of 'Last come, First go'. It is also
contended that if petitioner had been terminated in 2004, he would have definitely raised industrial
dispute immediately and that after ten years petitioner is stated to be agitating the matter which is
bad on account of delay and laches. It is also contended that since the services of petitioner had not
been terminated by the respondent, question of issuance of notice or wages in lieu thereof did not
arise and at the same time, there was no necessity for charge-sheet or issuing any notice of
petitioner after his termination. It is contended that petitioner was agriculturist and gainfully
employed and was thus not entitled for back wages.
5. The petitioner filed rejoinder, reiterated his stand as maintained in the claim petition.
Further asserted that provisions of Limitation Act did not eclipse the claim of petitioner in totality
besides allegation of violation of principle of "Last come First go" was specifically denied.
6. In order to prove his case, petitioner had examined himself as PW1 tendered/proved
his affidavit Ex. PW1/A under Order 18 Rule 4 CPC, copy of seniority list Ex. PW1/B, copy of list
of workers Ex. PW1/C and closed evidence. On the other hand, repudiating the evidence led by the
petitioner, respondent examined RW1 Shri D.R. Chauhan, the then Executive Engineer, HPPWD
Division Killar as RW1 tendered/proved mandays chart of petitioner Ex. RW1/B, copy of mandays
of workers Ex. RW1/C and closed the evidence.
7. I have heard the Ld. Counsel of petitioner and Ld. Dy. D.A. representing respondent,
gone through records of the case carefully relevant for disposed of this case.
8. From the contentions raised, following issues were framed on 30.8.2017 for
determination:
1. Whether the termination of services of petitioner by the respondent w.e.f. 2004 is/was
illegal and unjustified as alleged?
...OPP.
2. If issue No. 1 is proved in affirmative, to what service benefits the petitioner is entitled
to?
...OPP.
3. Whether the claim petition is not maintainable in the present form as alleged? ...OPR.
4. Whether the claim petition is bad on account of delay and laches on the part of
petitioner as alleged?
...OPR.
Relief.
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9. For the reasons detailed here under, my findings on the above issues are as follows:—
Issue No.1 : Yes
Issue No. 2 : Discussed
Issue No. 3 : No
Issue No. 4 : Discussed
Relief. : Petition is partly allowed awarding compensation of Rs.85,000/- per operative
part of award.
REASONS FOR FINDINGS
Issues No. 1, 2 and 4
10. All these issues have been taken up together for discussion being interconnected which
can be disposed of simultaneously without repetition of evidence.
11. Relationship of petitioner having been engaged as daily waged Beldar by respondent
on muster roll basis in the year 1998 continuously worked till August, 2004 with the respondent.
Admittedly, petitioner was engaged without any written order or settlement of terms and conditions
by the respondent. It is equally not in dispute that no written order was passed while terminating
service of the petitioner as claim of respondent remains that it had not retrenched petitioner from
service who had abandoned the job of his own and used to work intermittently as per his own wish
and convenience. However, there is dispute with regard to period for which the petitioner has
worked with respondent. It is evident from mandays chart Ex. RW1/B coupled with pleadings of
respondent that petitioner had worked from 1998 till 2004 whereas the claimant/petitioner alleges
that he had worked from 1997 to August, 2004. Since the claim of petitioner is not substantiated
from any corresponding documentary evidence on record, the only inference in such situation could
be drawn is that petitioner had been factually engaged in the year 1998 and not in 1997.
Admittedly, the reference of appropriate govt. does not relate to plea of fictional breaks but only
with regard to petitioner's termination from service. In the backdrop of foregoing admitted facts on
record, claim of petitioner requires to be adjudicated with a view to determine if petitioner is
entitled for relief of reinstatement and back wages along-with seniority and past service benefits
and compensation as claimed by him.
12. Stepping into witness box as PW1 has sworn in affidavit Ex. PW1/A reiterating and
reaffirming his pleadings as stipulated in claim petition. In his affidavit he has claimed to have
worked with the respondent/department for more than 160 days in Pangi Sub Division Chamba
District and remained engaged from 1998 to August, 2004. He has also stated on oath that no notice
under Section 25-F of the Act was given by the respondent before terminating his service and at the
same time no compensation in lieu thereof notice period was paid to him and thus his termination
was illegal and void entitling petitioner benefit of reinstatement of service with full back wages and
all the other consequential service benefits. The petitioner has further alleged on oath that
respondent/department after terminating his services in August, 2004 by oral order had engaged
several co-workers who were junior to petitioner were retained in service. Not only this, the
persons who were junior to petitioner are stated to have been regularized in service and thus
respondent had not followed the mandate of Sections 25-G and 25-H of the Act which was
obligatory on its part. The case of petitioner also remains that he had served respondent with due
diligence and had spotless service record as respondent/department had never called any
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explanation or raised charge-sheet against him but even while retrenching petitioner from service,
no notice was given. The petitioner has also explained reason for not approaching the authorities
under Labour Act and thereafter before this Tribunal, as there existed no road between Chamba
town to Pangi Tehsil till 2012 and petitioner had moved before the Labour Officer raising demand
notice consequent upon which a failure report was submitted and as the Labour Commissioner did
not make reference for industrial dispute raised by petitioner, the petitioner had moved before the
Hon'ble High Court by filing CWP where direction was passed for making reference to the Labour
Court due to which delay had occurred and same was satisfactorily explained.
13. In so far as plea of abandonment raised by respondent is concerned, the same merits
rejection in view of the fact that respondent had failed to produce any record by which it could be
established that whenever petitioner absented from his duty as also reflected in mandays chart Ex.
RW1/B any notice or letter was ever issued. On this point respondent as RW1 has specifically
admitted that whenever petitioner abandoned the job, no notice had been issued. RW1 specifically
admitted that no departmental inquiry was initiated against petitioner even after August, 2004. No
reason whatsoever has been assigned for such any action or omission on the part of respondent in
not initiating any departmental proceedings or making correspondence calling upon the petitioner
to join service. This prima facie belies the stand taken by the respondent as abandonment has to be
proved like any other fact in issue. The petitioner, on the other hand, as PW1 in cross-examination
has specifically denied that he used to leave the job in between and attended the work intermittently
rather he has claimed that intermit breaks had been deliberately given to him by the respondent in
the service record of petitioner so that petitioner did not complete 160 days of work as required for
Pangi Tehsil area and also for applicability of Section 25-B of the Act. As such, in absence of any
specific and reliable evidence led by respondent, it would be unsafe to hold that respondent had
established plea of abandonment.
14. A bare glance on the mandays chart Ex. RW1/B would reveal that petitioner had
worked for 78 days in the year 1998, 102 days in 1999, 26 days in 2000, 75.5 days in 2001, 111
days in 2002, 137 days in 2003 and 79 days in 2004 and thus a total of his service in 1998 to 2004
in 07 years he had worked for 608 ½ days in his entire service period. Be it noticed that petitioner
had not worked for more than 160 days and as there is no reference from the Labour
Commissioner, Shimla on the point of artificial breaks, this court is to confine its findings only with
regard to alleged illegal termination. It is evident from mandays chart Ex. RW1/B that in the year
2004 the petitioner had merely worked for 79 days and thus immediately in preceding 12 calendar
months from the month of termination of petitioner had not rendered service of 160 days. As such,
the respondent is held to have not violated the provisions of Section 25-F of the Act.
15. Ld. counsel/Authorized Representative for petitioner has contended with vehemence
that large number of workers who were junior to petitioner had been appointed and these workers
have been retained in service and regularized. The grievance of petitioner remains that principle of
‘Last come First go’ was not followed as the juniors were retained and services of petitioner despite
being senior was terminated without any valid reason. Ex. PW1/B is the year-wise
seniority/mandays of daily waged workers who were junior to the petitioner and had joined in the
year 1999 or thereafter. All of these co-workers shown in Ex. PW1/C the year-wise mandays
details of workers of Division HPPWD Killar were certainly junior to petitioner who were given
sufficient work existing in those years more than 200 days in a year whereas the petitioner had been
not given muster roll for the whole month. Ex. PW1/C also established that all the co-workers
shown in this document have worked for more than 160 days in most of the years although they
were junior to petitioner. Evidently, there is no iota of evidence of respondent establishing that
petitioner was called upon to join for service at any time after August, 2004 even at the time when
junior persons were reengaged. That being so the respondent had certainly violated the provisions
of Section 25-G of the Act as the junior workers mentioned in para No.4 of the affidavit were
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retained whereas petitioner was senior from these co-workers having joined service in 1999 was
terminated and even thereafter respondent omitted to afford opportunity to petitioner for
reemployment for work which also violates the provisions of Section 25-H of the Act. Ld. Counsel
for petitioner has placed reliance upon judgment of Central Bank of India vs. S. Satyam, 1996 (5)
SCC 419 in which Hon'ble Apex Court has held that for the applicability of Section 25-G and 25-H
of the Act, there was no necessity of claimant/petitioner to have worked for 240 days as in case
of provisions of Section 25-F of the Act.
16. Ld. Counsel for petitioner has contended that after petitioner's termination in August,
2004, he had remained unemployed and was not earning anything thereafter as such was entitled
for full back wages. Repudiating the arguments of Ld. Counsel of petitioner, Ld. Dy. D.A. for the
State has taken this court through cross-examination of the petitioner who has admitted that he had
cultivable land with him and also worked a private labourer. Thus, plea of having remained not
gainfully employed gets belied admission of petitioner in crossexamination in which he had
maintained that he had been earning from agricultural land as well as he has been working as daily
wager privately. Reliance has been placed on the judgment of Hon'ble Apex Court North East
Karnataka Road Transport Corporation vs. M. Nagangouda (2007) 10 SCC 765 in which
Division Bench comprising of Justice A.R. Lakshmanan and Justice Altamas Kabir had held that
"term gainfully employment would also include self employment wherefrom income is
generated. It was income either from employment in an establishment or from self
employment merely differentiates the sources from which income is generated, the end use
being the same". Applying the ratio of judgment of 2007 (supra) to this case since the petitioner
was earning from his agricultural and manual pursuits, the same were sufficient to maintain him
and his family. It is thus held that petitioner was gainfully employed. Be it stated here that Hon'ble
Apex Court in Deepali Gundu Surwase's case has held that the Labour Court was not justified in
holding that merely because the respondent was receiving agriculture income, he cannot be treated
to be engaged in gainful employment. Since the petitioner had income from agriculture pursuits for
his livelihood it cannot be stated that petitioner was not gainfully employed and thus would not be
entitled full back wages. In view of the forgoing discussion, it is held that the relationship of
workman and employer existed between petitioner and respondent and that petitioner was illegally
retrenched without compliance of 25-G and Section 25-H of the Act although remained gainfully
employed after his retrenchment. Thus, applying the ratio of judgment of Hon'ble Apex Court
(2007 supra), it may not be erroneous to hold that petitioner was gainfully employed and thus
would be not entitled for back wages for the period he was out of job on being terminated by the
respondent.
17. Lastly, Ld. Dy. D.A. for State has contended with vehemence that there is inordinate
and explained delay which disentitles petitioner relief claimed for by him. On the other hand, Ld.
counsel for the petitioner has relied upon the judgment of Hon'ble Apex Court titled Raghubir
Singh vs. General Manager, Haryana Roadways, Hissar reported in 2014 Lab IC 4266 (SC)
and the relevant paras of the judgment are produced below for reference:
“12. Therefore, in our considered view, the observations made by this Court in the
Rajasthan State Agriculture Marketing Board case (supra) upon which the learned
Additional Advocate General for the State of Haryana has placed reliance cannot be
applied to the fact situation of the case on hand, for the reason that the Labour Court
has erroneously rejected the reference without judiciously considering all the relevant
factors of the case particularly the points of dispute referred to it and answered the 2nd
issue regarding the reference being barred by limitation but not on the merits of the
case. The said decision has no application to the fact situation and also for the reason
the catena of decisions of this Court referred to supra, wherein this Court has
categorically held that the provisions of Limitation Act under Article 137 has no
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application to make reference by the appropriate government to the Labour
Court/Industrial Tribunal for adjudication of existing industrial dispute between
workmen and the employer.
13. In the case on hand, no doubt there is a delay in raising the dispute by the
appellant; the Labour Court nevertheless has the power to mould the relief
accordingly. At the time of adjudication, if the dispute referred to the Labour
Court is not adjudicated by it, it does not mean that the dispute ceases to exist.
The appropriate government in exercise of its statutory power under Section 10(1)(c)
of the Act can refer the industrial dispute, between the parties, at any time, to either the
jurisdictional Labour Court/Industrial Tribunal as interpreted by this Court in the Avon
Services case referred to supra. Therefore, the State Government has rightly exercised
its power under Section 10(1)(c) of the Act and referred the points of dispute to the
Labour Court as the same are in accordance with the law laid down by this Court in
Avon Services & Sapan Kumar Pandit cases referred to supra.
14. Further, the workman cannot be denied to seek relief only on the ground of delay
in raising the dispute as held in the case of S.M. Nilajkar & Ors. v. Telecom
District Manager, Karnataka[4] it was held by this Court as follows-
“17. It was submitted on behalf of the respondent that on account of delay in raising
the dispute by the appellants the High Court was justified in denying relief to the
appellants. We cannot agree...... In Ratan Chandra Sammanta and Ors. v. Union of
India and Ors. (supra)1993 AIR SCW 2214, it was held that a casual labourer
retrenched by the employer deprives himself of remedy available in law by delay itself,
lapse of time results in losing the remedy and the right as well. The delay would
certainly be fatal if it has resulted in material evidence relevant to adjudication being
lost and rendered not available. However, we do not think that the delay in the case at
hand has been so culpable as to disentitle the appellants for any relief.....” (Emphasis
laid by the Court) In view of the legal principles laid down by this Court in the above
judgment, the reference of the industrial dispute made in the case on hand by the State
Government to the Labour Court to adjudicate the existing industrial dispute between
the parties was made within a reasonable time, considering the circumstances in which
the workman was placed, firstly, as there was a criminal case pending against his and
secondly, the respondent had assured the workman that he would be reinstated after his
acquittal from the criminal case. Moreover, it is reasonable to adjudicate the industrial
dispute inspite of the delay in raising and referring the matter, since there is no mention
of any loss or unavailability of material evidence due to the delay. Thus, we do not
consider the delay in raising the industrial dispute and referring the same to the Labour
Court for adjudication as gravely erroneous and it does not debar the workman from
claiming rightful relief from his employer.
15. In the case of Ajaib Singh v. The Sirhind Co-Operative Marketing-cum- Processing
Service Society Limited & Anr.[5] this Court has opined that relief cannot be denied to
the workman merely on the ground of delay, stating that:-
“10. It follows, therefore, that the provisions of Article 137 of the Schedule to
Limitation Act, 1963 are not applicable to the proceedings under the act and that the
relief under it cannot be denied to the workman merely on the ground of delay. The
plea of delay if raised by the employer is required to be proved as a matter of fact by
showing the real prejudice and not as a merely hypothetical defence. No reference to
the labour court can be generally questioned on the ground of delay alone. Even in a
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case where the delay in shown to be existing, the tribunal, labour court or board,
dealing with the case can appropriately mould the relief by declining to grant back
wages to the workman till the date he raised the demand regarding his illegal
retrenchment/ termination or dismissal. The Court may also in appropriate cases direct
the payment of part of the back wages instead of full back wages.....” (Emphasis laid
by the Court)
16. Hence, we are of the opinion, having regard to the fact and circumstances of the case
that there is no delay or laches on the part of the workman from the date of his
acquittal in the criminal case. Thereafter, upon failure of the respondent in adhering to
the assurance given to the workman that he would be reinstated after his acquittal from
the criminal case, the workman approached the conciliation officer and the State
Government to make a reference to the Labour Court for adjudication of the dispute
with regard to the order of dismissal passed by the respondent. Keeping in mind the
date of acquittal of the appellant and the date on which he approached the conciliation
officer by raising the dispute, since the respondent had not adhered to its assurance, the
State Government had rightly referred the dispute for its adjudication. Therefore it
cannot be said that there was a delay on the part of the appellant in raising the dispute
and getting it referred to the Labour Court by the State Government.
17. Further, the Labour Court on an erroneous assumption of law framed the
additional issue regarding the limitation in raising the dispute and its reference
by the State Government to the Labour Court. Thus, the Labour Court has ignored
the legal principles laid down by this Court in the cases referred to supra. The award
passed by the Labour Court was accepted erroneously by both the learned single Judge
and the Division Bench of the High Court by dismissing the Civil Writ Petition & the
Letters Patent Appeal without examining the case in its proper perspective, keeping in
view the power of the State Government under Section 10(1)(c) and the object and
intendment of the Act. Not adjudicating the existing industrial dispute on merits
between the parties referred to it may lead to disruption of industrial peace and
harmony, which is the foremost important aspect in Industrial Jurisprudence as the
same would affect the public interest at large.
18. Ld. Dy. D.A. representing respondent department has also contended with vehemence
that claim petition is barred by limitation on account of delay and laches. It has been pointed that
termination of petitioner in this case took place on 2004 and the industrial dispute was raised after
several years of retrenchment. Repudiating the argument by Ld. Counsel, Ld. AR for the petitioner
has placed reliance upon judgment reported in 2007 LHLJ 903 Hon'ble High Court of H.P.
(Bhatag Ram's case) in which it has been held that delay in raising dispute may be considered by
court at the time of granting final relief however in various other judgments even longer delay has
been condoned. In Divisional Manager, HPFC & another vs. Garibu Ram, Latest HLJ 2007
(HP) 1160, delay of more than 10 years was condoned besides Hon'ble High Court has held that
principle of Limitation Act is not applicable to the industrial dispute. Similar view was taken by
Hon'ble Apex Court in Ajayab Singh vs. Sirhind Co-operative Marketing-cum-Processing
Society Limited and Another, (1999) 6 SCC 82 in which it has been held that the principle of
Limitation Act, 1963 did not apply to the proceeding under the Industrial Disputes Act.
19. Relying upon the aforestated judgment, it has been contended that claim of petitioner
cannot be defeated on the point of delay and laches. Repudiating arguments advanced by Ld.
Counsel for petitioner, Ld. Dy. D.A. has placed reliance upon the judgment of Hon'ble Apex Court
titled as Assistant Engineer, Rajasthan State Agriculture Marketing Board, Sub-Division
Kota and Mohan Lal [2013 (139) FLR 125], the relevant para of the judgment are produced
below for reference:
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Industrial Disputes Act, 1947-Sections 25-F and 10- Limitation Act, 1963- Section 5-
Industrial dispute-Termination of service-Finding of Lboaur Court that workman had
completed 240 days in calendar year and her termination was in violation of section
25-F of the I. D. Act-Workman worked from 1-11-1984 to 17-2-1986 in all 286 days
during employment. Her services terminated on 18-2-1986. Industrial dispute raised
after 6 years of termination. Admitted delay of 6 years not kept in view by the Labour
Court- Judicial discretion exercised by the Labour Court flawed and unsustainable.
Reinstatement of the workman not the appropriate relief. In lieu of reinstatement
compensation of Rs. one lac directed to be paid to the workman by the appellant
employer within six weeks failing which interest @ 9% p.a. will be payable.
[Paras 21 and 22]
Limitation Act, 1963. Section 5- Industrial Disputes Act, 1947- Section 25-F-
Termination of service- Industrial dispute raised after six years- Limitation Act not
applicable to reference made under the I.D. Act-Delay in raising industrial
disputes definitely an important circumstances which the Labour Court must
keep in view before granting relief.
20. Repudiating the arguments by Ld. Dy. D.A. for the State, Ld. Counsel for
claimant/petitioner has relied upon the judgment of Hon'ble Apex Court in case titled as Tapash
Kumar Paul vs. BSNL & another reported in AIR 2015 SC 357 wherein Hon'ble Court held that
a Court may pass an order of reinstatement by awarding compensation but the same has to be based
on justifiable grounds. In this judgment, it was held that compensation can be granted in a situation
where the industry is closed or that employees has superannuated or going to retire shortly and no
period is left to his credit or where workman has been rendered in capacitated to discharge duties
cannot be reinstated and/or fourthly when he has lost confidence of the management to discharge
duties. It was observed that there may be appropriate cases on facts which may justify substituting
an order of reinstatement by award of compensation but that has to be supported by some legal
and justifiable reasons indicating why the reinstatement should be followed to be substituted
by award of compensation. Ld. Counsel for the petitioner with the aid of above-said judgment had
argued that there are only four situations when a worker may be awarded compensation instead of
reinstatement but the judgment has certainly not been correctly appreciated by Ld. Counsel as this
judgment postulates probable four situations which are illustrate in nature where compensation may
be awarded instead of reinstatement but that does not mean that except the four grounds, no other
ground would be appropriate for awarding compensation. In the case in hand before this court, it
has come that petitioner had abandoned the job who did not report for duty for several years and
later gave notice requesting for joining of duties but the conditions in para no.5 of judgment (2015
supra) even if not met requirement, cannot be a ground to reinstate the petitioner and it is only
compensation which would be appropriate relief. Ld. counsel for the petitioner has relied upon the
judgment of Hon'ble Apex Court titled as Deepali Gundu Surwase vs. Kranti Junior Adhyapak
Mahavidyalaya (D.Ed.) and Ors. reported in AIR 2014 SC (Supp) 121, Raghubir Singh vs.
General Manager, Haryana Roadways, Hissar reported in 2014 (3) Apex Court Judgments
652. I have gone through these judgments and of view that they don't come to rescue the petitioner
on point of reinstatement instead of compensation. Ld. Dy. D.A. for State on the other hand has
relied upon the judgment of Hon'ble Apex Court in Vice Chancellor, Lucknow University,
Lucknow, Uttar Pradesh v. Akhilesh Kumar Khare & another reported in AIR 2015 SC 3473.
It has been contended that engagement of claimant/petitioner in this case was not through regular
mode of recruitment and applying the ratio of this judgment AIR 2015 SC supra, claim of
petitioner for reinstatement can be negated and thus compensation would be sufficient for redressal
of grievance of the claimant/petitioner. Similarly, in 2016 (1) Him. L.R. 502 titled as State of
Himachal Pradesh and another vs. Chaman Singh relied by Ld. AR for petitioner interpretation
of Section 137 of Limitation Act was involved which provides that Article 137 of Limitation Act
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did not apply to industrial disputes. In 2014 (3) Apex Court Judgment 652 (SC) similar view was
reiterated which clearly mandates that claimant/petitioner cannot be denied relief sought for merely
on the ground of delay and laches. That being so, the law remains as it was that ground of delay and
laches, claimant/petitioner cannot be denied relief rather the court has to consider various aspects
before moulding relief and the case in hand it would not be erroneous to mention here that the
claimant/petitioner can be reasonably indemnified by ordering compensation and not by
reinstatement. In so far as judgment of AIR 2015 SC 1373 titled as Mackinon Machenize &
Company Ltd. vs. Mackinon Employees Union is concerned, the Hon'ble Apex Court has held
on closure of unit of company principle of 'Last come First go' was not followed which violated
Section 25-G of Industrial Disputes Act and retrenchment was held illegal entitling petitioner for
retrenchment compensation. Since the facts of case of Mackinon Machenize's case are different
from case in hand as in former closure of unit of company was involved whereas in case in hand
before this court, there is no closure of company rather it is the department of HPPWD which had
engaged petitioner without following of the procedure although subject to funds and availability of
work. As such, when there is no closure of any unit by respondent which the petitioner was
engaged, judgment of Mackinon Machenize cannot be made applicable.
21. After hearing the rival contentions of the parties and case law relied by them, it can be
safely concluded that delay in raising industrial dispute is certainly important aspect/circumstance
which court has to keep in mind while exercising discretion. In para Nos. 20 and 21 of the
judgment as referred to in this case reported in 2013 (136) FLR 893 (SC) titled as Assistant
Engineer Rajasthan Development Corporation and another vs. Geetam Singh provides that
before exercising its judicial discretion, the Labour Court or Tribunal has to keep in mind all
relevant factors including the mode and manner of appointment, nature of employment, length of
service, the ground on which termination has been set aside and delay in raising industrial dispute
before grant of relief. It was observed by the Hon'ble Apex Court in judgment (2013 supra) before
that workman had worked for 286 days and had raised industrial dispute in 1992 whereas her
services have been terminated in 1986 and she raised industrial dispute after six years. The Hon'ble
Apex Court has held that though compensation awarded by Single Judge of the Hon'ble High Court
was too low and liable to be enhanced by the Division Bench but surely reinstatement of the
workman in the facts and circumstances is not the appropriate relief and thus Hon'ble Apex
Court awarded a lump-sum of Rs.1 lakh along-with interest @ 9% per annum if the respondent
failed to make payment of compensation within six weeks from the date of judgment. In the case in
hand before this court factors which have weighed are that the petitioner in all remained engaged
for about 07 years and actually worked for 608 ½ days as per mandays chart on record and that the
services of petitioner were disengaged in August, 2004 who worked as non skilled worker and had
raised industrial dispute by issuance of demand notice after about eighty years i.e. demand notice
was given on 08-5-2012. Taking into consideration factors mentioned above in pursuance to
judgments of Hon'ble Apex Court referred to above, petitioner would not be entitled either for
reinstatement or for back wages but a lump-sum compensation would be appropriate relief in view
of judgment 2013 (139) FLR 25 (SC). The judgments relied upon by ld. counsel for petitioner on
the matter of delay and laches is more or less settled law that claim of the petitioner could not be
solely declined on the ground of delay and laches. Similarly, judgment of Hon'ble Apex Court in
2014 titled as Raghubir Singh's case also does not come to the rescue of the petitioner as in this
judgment also the Hon'ble Apex Court has reiterated the mandate as given by the Hon'ble Apex
Court in previous judgment in the year 2013 i.e. Assistant Engineer, Rajasthan State
Agriculture Marketing Board, Sub-Division Kota and Mohan Lal's case. I have gone through
these judgments which are not attracted in this present case as this court not declining relief to the
petitioner on the ground of limitation rather on the basis of guidelines of Hon'ble Apex Court laid
down in judgment of 2013. Ld. Dy. D.A. representing State/respondents has relied upon the
judgment of Hon'ble Apex Court reported in AIR 2016 SC 2984 titled as Prabhakar v. Joint
Director Sericulture Department and another. I have gone through the judgment which deals
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reference under Section 10 of the Industrial Disputes Act in which it has been held that Hon'ble
High Court can intervene in writ jurisdiction under Article 226 when reference has been challenged
on the ground of inordinate unexplained delay. Since the reference made by the Government in this
case is not in challenge before this Court, the above said judgment would not be attracted in the
facts and circumstances of the case. More so in view of observation qua facts made in judgment
(2016) supra, claimant/petitioner was found to be an educated person who was working as Clerk
whereas in case before this Court, the petitioner is an illiterate unskilled worker. For the above-said
reasons, plea of delay and laches would not eclipse claim of petitioner.
22. In view of foregoing discussion, a lump-sum compensation of Rs.85,000 (Rupees
eighty five thousand only) would be an appropriate relief to which the petitioner is entitled in the
facts and circumstances of the case as stated above. It is further made clear that amount of
compensation shall be paid within four months from the date of receipt of Award failing which the
petitioner would be entitled for interest @ 9% per annum from date of Award till its realization.
Issues no. 1,2 and 4 are answered accordingly.
Issue No. 3 :
23. On the plea of non-maintainability of the claim petition under Section 10 of the
Industrial Disputes Act, ld. Dy. D.A. representing respondent department has failed to allege in
reply in what manner petition is not maintainable. Thus, vague plea merits rejection outright.
Otherwise also, from pleadings and evidence on record, no inference of claim petition being not
maintainable could be raised against claimant/petitioner. This issue is decided in favour of
petitioner and against the respondent.
RELIEF
24. As sequel to my findings on foregoing issues, the respondent is hereby directed to pay
the compensation of Rs.85,000 (Rupees eighty five thousand only) to the petitioner in lieu of the
reinstatement back wages, seniority, past service benefits. Amount of compensation so awarded
will be paid by the respondent to the petitioner within four months from the date of receipt of
Award failing which the respondent shall be liable to pay the interest @ 9% per annum on the said
amount from the date of award till the date of its realization. In the peculiar circumstances of the
case, the parties are left to bear their own costs.
25. The reference is answered in the aforesaid terms.
26. A copy of this Award be sent to the appropriate Government for publication in the
official gazette.
27. File, after due completion be consigned to the Record Room.
Announced in the open Court today this 16th day of October, 2017.
Sd/-
(K.K. Sharma)
Presiding Judge,
Labour Court-cum-Industrial Tribunal,
Kangra at Dharamshala, H.P.
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IN THE COURT OF K. K. SHARMA, PRESIDING JUDGE, LABOUR COURT-CUM-
INDUSTRIAL TRIBUNAL, KANGRA AT DHARAMSHALA (HP)
Ref. No.
: 200/2016
Date of Institution : 26-03-2016
Date of Decision : 16-10-2017
Smt. Kishan Dei w/o Shri Uggar Chand, r/o Village Findpar, P.O. Mindhal, Tehsil Pangi,
District Chamba, H.P.
….Petitioner.
Versus
The Executive Engineer, Killar Division, H.P.P.W.D., Killar (Pangi), District Chamba, H.P.
....Respondent.
Reference under Section 10 (1) of the Industrial Disputes Act, 1947
For the Petitioner
: Sh. N.L. Kaundal, AR
Sh. Vijay Kaundal, Adv.
For the Respondent : Sh. Sanjeev Singh Rana, Dy. D.A.
AWARD
The reference given below has been received from the appropriate Government for
adjudication:
“Whether alleged termination of services of Smt. Kishan Devi w/o Shri Uggar Chand,
r/o Village Findpar, P.O. Mindhal, Tehsil Pangi, District Chamba, H.P. during
September, 2004 by the Executive Engineer, Killar Division, H.P.P.W.D. Killar, Tehsil
Pangi, District Chamba, H.P., who had worked as Beldar on daily wages and has raised
her industrial dispute after more than 7 years vide demand notice dated 06.01.2012,
without complying the provisions of the Industrial Disputes Act, 1947 is legal and
justified? If not, keeping in view of delay of more than 7 years in raising the industrial
dispute, what amount of back wages, seniority, past service benefits and compensation
the above ex-worker is entitled to from the above employer/management?”
2. On receipt of reference from appropriate government, notices were issued to the parties
in pursuance to which claimant/petitioner has filed statement of claim.
3. Brief facts as enumerated in the present claim petition by the petitioner above named
revealed that she had been appointed on daily wage basis on muster roll in the year 1995 who
continuously worked till September, 2004 with the respondent. Averments made in the petition
further revealed that petitioner had worked for 160 days in each calendar year as per the criteria
prescribed for tribal area of Pangi Tehsil District Chamba and became eligible for continuous
service envisaged under statutory provisions of Section 25-B of the Industrial Disputes Act, 1947
(hereinafter referred to as "the Act" for brevity). Averments made in the petition revealed that the
services of petitioner had been interrupted by way of intermittent/artificial breaks given by the
respondent/department deliberately and as such breaks are required to be counted as "continuous
services" for the purposes of calculation of 160 days for the applicability of Section 25-B of the
Act. The grievance of petitioner remains that respondent/department had terminated/disengaged
petitioner from daily wage service orally without issuing one month’s notice in writing stipulating
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therein reason for retrenchment besides no retrenchment compensation was paid to petitioner when
respondent had been illegally terminated. It is also alleged that respondent had not followed the
provisions of Section 25-F of the Act while disengaging petitioner from service. The grievance of
petitioner further revealed that during years 2003 to 2005, respondent/department had disengaged
the services of more than 500 daily waged workmen in different Divisions of HPPWD and IPH. It
is stated that it has come to the knowledge to the petitioner from reliable sources that
respondent/department had engaged more than 200 contractors during 2003 onwards. It is stated
that after termination of the services of petitioner, petitioner had approached the respondent time
and again but of no avail. The grievance of petitioner further remains that when the services of
petitioner had been terminated, respondent/department had reengaged number of new workman
from time to time and while doing so, respondent had not followed the principle of 'Last come,
First go' envisaged under Section 25-G of the Act. It is further alleged that respondent/department
had continuously retained junior to petitioner who are still in service namely Jai Dass who
appointed in 1998, Tek Chand in 1999, Baldev in 2000, Amar Nath in 2000, Balak Chand also in
2000, Shyam Lal in 2000, Prakash Chand in 2001, Sucheta Ram in 2001, Trilok Chand in 2002,
Hari in 2003, Hari Ram in 2003, Ram Dei in 2003 and Budhi Ram in 2003. The claimant/petitioner
claimed that she had spotless service record who never been charge-sheeted for any act of
indiscipline or negligence or her conduct and even at the time of verbal termination, no chargesheet
had been served upon her and at the same time, no opportunity of hearing had been afforded to him.
The petitioner also alleges that she has remained unemployed ever since her illegal termination
from September, 2004 till the date of institution of present claim petition who had been nowhere
gainfully employed and was thus entitled for full back wages. Feeling aggrieved the action of
respondent in terminating the services of petitioner an industrial dispute was raised vide demand
notice dated 6-1-2012 copy of the same was forwarded to Labour Officer, Chamba for further
necessary action. It is alleged that Labour Officer, Chamba could not resolve the dispute and failure
report under Section 12(4) of the Industrial Disputes Act and the matter was referred to appropriate
government i.e. Labour Commissioner, Shimla who declined to refer the case of petitioner for
adjudication in pursuance to which the petitioner had approached the Hon'ble High Court of H.P.
by filing CWP No.130/2016 which had been decided on 22-2-2016 and order of the Labour
Commissioner, Shimla has been setting aside. Accordingly alleging respondent to have committed
violation of statutory provision of Section 25-F, Section 25-G and Section 25-H of the Industrial
Disputes Act, 1947 and thus petitioner prays for setting aside illegal termination of petitioner by the
respondent/department in September, 2004 as well as period of intermittent/fictional breaks
deliberately given time and again during entire service of petitioner between 1996 to 2004. She
further prayed for reinstatement in service along-with full back wages, seniority including
continuity in service and to any other relief petitioner is entitled.
4. The respondent contested claim petition, filed reply inter-alia taken preliminary
objections of maintainability, claim petition being bad on account of delay and laches. On merits
denied that petitioner had worked for more than 160 days in each calendar year rather clarified by
stating that petitioner was engaged as daily waged Beldar in 1997 who remained engaged till 2004
but had worked intermittently as petitioner used to come and attend the work at her own sweet will
and convenience. Relying upon the mandays chart, it has been categorically pleaded by the
respondent that petitioner had not completed 160 days in each calendar year as required for tribal
area of Pangi Tehsil. The allegations of fictional breaks given by respondent to the petitioner have
been specifically denied. In so far as engagement of persons junior to petitioner mentioned in para
No. 4 of the claim petition were appointed as per order of Labour Court and no other juniors to the
petitioner had been retained in service by the respondent. It is further stated that name of person
Sham Lal and Gautam Singh had been engaged on harness case and as such there was no violation
of the principle of the Industrial Disputes Act, 1947. On the plea of termination of service of
petitioner, respondent specifically alleges that petitioner had left the job at her own will therefore
serving of notice or pay in lieu thereof was not required. Reiterating its stand respondent has
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maintained that petitioner had left the work of her own sweet will and the persons mentioned in
para No.4 are stated to have engaged as per direction of the Labour Court-cum-Industrial Tribunal
Dharamshala and respondent had not violated the principle of 'Last come, First go'. It is also
contended that if petitioner had been terminated in 2004, she would have definitely raised industrial
dispute immediately and that after ten years petitioner is stated to be agitating the matter which is
bad on account of delay and laches. It is also contended that since the services of petitioner had not
been terminated by the respondent, question of issuance of notice or wages in lieu thereof did not
arise and at the same time, there was no necessity for charge-sheet or issuing any notice of
petitioner after her termination. It is contended that petitioner was agriculturist and gainfully
employed and was thus not entitled for back wages.
5. The petitioner filed rejoinder, reiterated her stand as maintained in the claim petition.
Further asserted that provisions of Limitation Act did not eclipse the claim of petitioner in totality
besides allegation of violation of principle of 'Last come First go' was specifically denied.
6. In order to prove her case, petitioner had examined herself as PW1 tendered/proved her
affidavit Ex. PW1/A under Order 18 Rule 4 CPC, copy of seniority list Ex. PW1/B, copy of list of
workers Ex. PW1/C and closed evidence. On the other hand, repudiating the evidence led by the
petitioner, respondent examined RW1 Shri D.R. Chauhan, the then Executive Engineer, HPPWD
Division Killar as RW1 tendered/proved mandays chart of petitioner Ex. RW1/B, copy of mandays
of workers Ex. RW1/C and closed the evidence.
7. I have heard the Ld. Counsel of petitioner and Ld. Dy. D.A. representing respondent,
gone through records of the case carefully relevant for disposed of this case.
8. From the contentions raised, following issues were framed on 30-8-2017 for
determination:
1. Whether the termination of services of petitioner by the respondent during Sept.
2004/is was illegal and unjustified as alleged?
...OPP.
2. If issue no.1 is proved in affirmative, to what service benefits the petitioner is entitled
to?
...OPP.
3.
Whether the claim petition is not maintainable in the present form as alleged? ...OPR.
4. Whether the claim petition is bad on account of delay and laches on the part of
petitioner as alleged?
...OPR.
Relief :
9. For the reasons detailed here under, my findings on the above issues are as follows:—
Issue No.1 : Yes
Issue No. 2 : Discussed
Issue No. 3 : No
Issue No. 4 : Discussed
Relief : Petition is partly allowed awarding compensation of Rs.95,000/- per operative
part of award.
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REASONS FOR FINDINGS
Issues No. 1, 2 and 4 :
10. All these issues have been taken up together for discussion being interconnected which
can be disposed of simultaneously without repetition of evidence.
11. Relationship of petitioner having been engaged as daily waged beldar by respondent
on muster roll basis in the year 1995 continuously worked till September, 2004 with the
respondent. Admittedly, petitioner was engaged without any written order or settlement of terms
and conditions by the respondent. It is equally not in dispute that no written order was passed while
terminating service of the petitioner as claim of respondent remains that it had not retrenched
petitioner from service who had abandoned the job of her own and used to work intermittently as
per her own wish and convenience. However, there is dispute with regard to period for which the
petitioner has worked with respondent. It is evident from mandays chart Ex. RW1/B coupled with
pleadings of respondent that petitioner had worked from 1997 till 2004 whereas the
claimant/petitioner alleges that he had worked from 1995 to September, 2004. Since the claim of
petitioner is not substantiated from any corresponding documentary evidence on record, the only
inference in such situation could be drawn is that petitioner had been factually engaged in the year
1997 and not in 1995. Admittedly, the reference of appropriate govt. does not relate to plea of
fictional breaks but only with regard to petitioner's termination from service. In the backdrop of
foregoing admitted facts on record, claim of petitioner requires to be adjudicated with a view to
determine if petitioner is entitled for relief of reinstatement and back wages along-with seniority
and past service benefits and compensation as claimed by him.
12. Stepping into witness box as PW1 has sworn in affidavit Ex. PW1/A reiterating and
reaffirming her pleadings as stipulated in claim petition. In her affidavit she has claimed to have
worked with the respondent/department for more than 160 days in Pangi Sub Division Chamba
District and remained engaged from 1997 to September, 2004. She has also stated on oath that no
notice under Section 25-F of the Act was given by the respondent before terminating her service
and at the same time no compensation in lieu thereof notice period was paid to her and thus her
termination was illegal and void entitling petitioner benefit of reinstatement of service with full
back wages and all the other consequential service benefits. The petitioner has further alleged on
oath that respondent/department after terminating her services in September, 2004 by oral order had
engaged several co-workers who were junior to petitioner were retained in service. Not only this,
the persons who were junior to petitioner are stated to have been regularized in service and thus
respondent had not followed the mandate of Sections 25-G and 25-H of the Act which was
obligatory on its part. The case of petitioner also remains that she had served respondent with due
diligence and had spotless service record as respondent/department had never called any
explanation or raised charge-sheet against her but even while retrenching petitioner from service,
no notice was given. The petitioner has also explained reason for not approaching the authorities
under Labour Act and thereafter before this Tribunal, as there existed no road between Chamba
town to Pangi Tehsil till 2012 and petitioner had moved before the Labour Officer raising demand
notice consequent upon which a failure report was submitted and as the Labour Commissioner did
not make reference for industrial dispute raised by petitioner, the petitioner had moved before the
Hon'ble High Court by filing CWP where direction was passed for making reference to the Labour
Court due to which delay had occurred and same was satisfactorily explained.
13. In so far as plea of abandonment raised by respondent is concerned, the same merits
rejection in view of the fact that respondent had failed to produce any record by which it could be
established that whenever petitioner absented from her duty as also reflected in mandays chart Ex.
RW1/B any notice or letter was ever issued. On this point respondent as RW1 has specifically
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admitted that whenever petitioner abandoned the job, no notice had been issued. RW1 specifically
admitted that no departmental inquiry was initiated against petitioner even after September, 2004.
No reason whatsoever has been assigned for such any action or omission on the part of respondent
in not initiating any departmental proceedings or making correspondence calling upon the
petitioner to join service. This prima facie belies the stand taken by the respondent as abandonment
has to be proved like any other fact in issue. The petitioner, on the other hand, as PW1 in cross-
examination has specifically denied that she used to leave the job in between and attended the work
intermittently rather she has claimed that intermit breaks had been deliberately given to her by the
respondent in the service record of petitioner so that petitioner did not complete 160 days of work
as required for Pangi Tehsil area and also for applicability of Section 25-B of the Act. As such, in
absence of any specific and reliable evidence led by respondent, it would be unsafe to hold that
respondent had established plea of abandonment.
14. A bare glance on the mandays chart Ex. RW1/B would reveal that petitioner had
worked for 131 days in the year 1997, 132 days in 1998, 84 days in 1999, 51 days in 2000, 72 days
in 2001, 113 days in 2002, 72 days in 2003 and 91 days in 2004 and thus a total of her service in
1997 to 2004 in 08 years she had worked for 746 days in her entire service period. Be it noticed
that petitioner had not worked for more than 160 days and as there is no reference from the Labour
Commissioner, Shimla on the point of artificial breaks, this court is to confine its findings only with
regard to alleged illegal termination. It is evident from mandays chart Ex. RW1/B that in the year
2004 the petitioner had merely worked for 91 days and thus immediately in preceding 12 calendar
months from the month of termination of petitioner had not rendered service of 160 days. As such,
the respondent is held to have not violated the provisions of Section 25-F of the Act.
15. Ld. counsel/Authorized Representative for petitioner has contended with vehemence
that large number of workers who were junior to petitioner had been appointed and these workers
have been retained in service and regularized. The grievance of petitioner remains that principle of
'Last come First go' was not followed as the juniors were retained and services of petitioner despite
being senior was terminated without any valid reason. Ex. PW1/B is the year-wise
seniority/mandays of daily waged workers who were junior to the petitioner and had joined in the
year 1999 or thereafter. All of these co-workers shown in Ex. PW1/C the year-wise mandays
details of workers of Division HPPWD Killar were certainly junior to petitioner who were given
sufficient work existing in those years more than 200 days in a year whereas the petitioner had been
not given muster roll for the whole month. Ex. PW1/C also established that all the co-workers
shown in this document have worked for more than 160 days in most of the years although they
were junior to petitioner. Evidently, there is no iota of evidence of respondent establishing that
petitioner was called upon to join for service at any time after September, 2004 even at the time
when junior persons were reengaged. That being so the respondent had certainly violated the
provisions of Section 25-G of the Act as the juniors workers mentioned in para No.4 of the affidavit
were retained whereas petitioner was senior from these co-workers having joined service in 1997
was terminated and even thereafter respondent omitted to afford opportunity to petitioner for
reemployment for work which also violates the provisions of Section 25-H of the Act. Ld. counsel
for petitioner has placed reliance upon judgment of Central Bank of India vs. S. Satyam, 1996 (5)
SCC 419 in which Hon'ble Apex Court has held that for the applicability of Section 25-G and 25-H
of the Act, there was no necessity of claimant/petitioner to have worked for 240 days as in case
of provisions of Section 25-F of the Act.
16. Ld. Counsel for petitioner has contended that after petitioner's termination in
September, 2004, she had remained unemployed and was not earning anything thereafter as such
was entitled for full back wages. Repudiating the arguments of ld. counsel of petitioner, Ld. Dy.
D.A. for the State has taken this court through cross-examination of the petitioner who has admitted
that she had cultivatable land with her and also worked a private labourer. Thus, plea of having
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remained not gainfully employed gets belied admission of petitioner in crossexamination in which
she had maintained that she had been earning from agricultural land as well as she has been
working as daily wager privately. Reliance has been placed on the judgment of Hon'ble Apex Court
North East Karnataka Road Transport Corporation vs. M. Nagangouda (2007) 10 SCC 765
in which Division Bench comprising of Justice A.R. Lakshmanan and Justice Altamas Kabir had
held that 'term gainfully employment would also include self employment wherefrom income
is generated. It was income either from employment in an establishment or from self
employment merely differentiates the sources from which income is generated, the end use
being the same'. Applying the ratio of judgment of 2007 (supra) to this case since the petitioner
was earning from her agricultural and manual pursuits, the same were sufficient to maintain him
and his family. It is thus held that petitioner was gainfully employed. Be it stated here that Hon'ble
Apex Court in Deepali Gundu Surwase's case has held that the Labour Court was not justified in
holding that merely because the respondent was receiving agriculture income, she cannot be treated
to be engaged in gainful employment. Since the petitioner had income from agriculture pursuits for
her livelihood it cannot be stated that petitioner was not gainfully employed and thus would not be
entitled full back wages. In view of the forgoing discussion, it is held that the relationship of
workman and employer existed between petitioner and respondent and that petitioner was illegally
retrenched without compliance of Section 25-G and Section 25-H of the Act although remained
gainfully employed after her retrenchment. Thus, applying the ratio of judgment of Hon‟ble Apex
Court (2007 supra), it may not be erroneous to hold that petitioner was gainfully employed and thus
would be not entitled for back wages for the period she was out of job on being terminated by the
respondent.
17. Lastly, Ld. Dy. D.A. for State has contended with vehemence that there is inordinate
and explained delay which disentitles petitioner relief claimed for by him. On the other hand, ld.
counsel for the petitioner has relied upon the judgment of Hon'ble Apex Court titled Raghubir
Singh vs. General Manager, Haryana Roadways, Hissar reported in 2014 Lab IC 4266 (SC)
and the relevant paras of the judgment are produced below for reference:
“12. Therefore, in our considered view, the observations made by this Court in the
Rajasthan State Agriculture Marketing Board case (supra) upon which the learned
Additional Advocate General for the State of Haryana has placed reliance cannot be
applied to the fact situation of the case on hand, for the reason that the Labour Court
has erroneously rejected the reference without judiciously considering all the relevant
factors of the case particularly the points of dispute referred to it and answered the 2nd
issue regarding the reference being barred by limitation but not on the merits of the
case. The said decision has no application to the fact situation and also for the reason
the catena of decisions of this Court referred to supra, wherein this Court has
categorically held that the provisions of Limitation Act under Article 137 has no
application to make reference by the appropriate government to the Labour
Court/Industrial Tribunal for adjudication of existing industrial dispute between
workmen and the employer.
13. In the case on hand, no doubt there is a delay in raising the dispute by the
appellant; the Labour Court nevertheless has the power to mould the relief
accordingly. At the time of adjudication, if the dispute referred to the Labour
Court is not adjudicated by it, it does not mean that the dispute ceases to exist.
The appropriate government in exercise of its statutory power under Section 10(1)(c)
of the Act can refer the industrial dispute, between the parties, at any time, to either the
jurisdictional Labour Court/Industrial Tribunal as interpreted by this Court in the Avon
Services case referred to supra. Therefore, the State Government has rightly exercised
its power under Section 10(1)(c) of the Act and referred the points of dispute to the
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Labour Court as the same are in accordance with the law laid down by this Court in
Avon Services & Sapan Kumar Pandit cases referred to supra.
14. Further, the workman cannot be denied to seek relief only on the ground of delay
in raising the dispute as held in the case of S.M. Nilajkar & Ors. v. Telecom
District Manager, Karnataka[4] it was held by this Court as follows-
“17. It was submitted on behalf of the respondent that on account of delay in raising
the dispute by the appellants the High Court was justified in denying relief to the
appellants. We cannot agree...... in Ratan Chandra Sammanta and Ors. v. Union of
India and Ors. (supra)1993 AIR SCW 2214, it was held that a casual labourer
retrenched by the employer deprives himself of remedy available in law by delay itself,
lapse of time results in losing the remedy and the right as well. The delay would
certainly be fatal if it has resulted in material evidence relevant to adjudication being
lost and rendered not available. However, we do not think that the delay in the case at
hand has been so culpable as to disentitle the appellants for any relief.....” (Emphasis
laid by the Court) In view of the legal principles laid down by this Court in the above
judgment, the reference of the industrial dispute made in the case on hand by the State
Government to the Labour Court to adjudicate the existing industrial dispute between
the parties was made within a reasonable time, considering the circumstances in which
the workman was placed, firstly, as there was a criminal case pending against her and
secondly, the respondent had assured the workman that he would be reinstated after her
acquittal from the criminal case. Moreover, it is reasonable to adjudicate the industrial
dispute in spite of the delay in raising and referring the matter, since there is no
mention of any loss or unavailability of material evidence due to the delay. Thus, we
do not consider the delay in raising the industrial dispute and referring the same to the
Labour Court for adjudication as gravely erroneous and it does not debar the workman
from claiming rightful relief from her employer.
15. In the case of Ajaib Singh vs. The Sirhind Co-Operative Marketing-cum-Processing
Service Society Limited & Anr.[5] this Court has opined that relief cannot be denied to
the workman merely on the ground of delay, stating that:-
“10. It follows, therefore, that the provisions of Article 137 of the Schedule to
Limitation Act, 1963 are not applicable to the proceedings under the act and that the
relief under it cannot be denied to the workman merely on the ground of delay. The
plea of delay if raised by the employer is required to be proved as a matter of fact by
showing the real prejudice and not as a merely hypothetical defence. No reference to
the labour court can be generally questioned on the ground of delay alone. Even in a
case where the delay in shown to be existing, the tribunal, labour court or board,
dealing with the case can appropriately mould the relief by declining to grant back
wages to the workman till the date he raised the demand regarding her illegal
retrenchment/ termination or dismissal. The Court may also in appropriate cases direct
the payment of part of the back wages instead of full back wages.....” (Emphasis laid
by the Court)
16. Hence, we are of the opinion, having regard to the fact and circumstances of the case
that there is no delay or laches on the part of the workman from the date of her
acquittal in the criminal case. Thereafter, upon failure of the respondent in adhering to
the assurance given to the workman that he would be reinstated after her acquittal from
the criminal case, the workman approached the conciliation officer and the State
Government to make a reference to the Labour Court for adjudication of the dispute
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with regard to the order of dismissal passed by the respondent. Keeping in mind the
date of acquittal of the appellant and the date on which he approached the conciliation
officer by raising the dispute, since the respondent had not adhered to its assurance, the
State Government had rightly referred the dispute for its adjudication. Therefore it
cannot be said that there was a delay on the part of the appellant in raising the dispute
and getting it referred to the Labour Court by the State Government.
17. Further, the Labour Court on an erroneous assumption of law framed the
additional issue regarding the limitation in raising the dispute and its reference
by the State Government to the Labour Court. Thus, the Labour Court has ignored
the legal principles laid down by this Court in the cases referred to supra. The award
passed by the Labour Court was accepted erroneously by both the learned single Judge
and the Division Bench of the High Court by dismissing the Civil Writ Petition & the
Letters Patent Appeal without examining the case in its proper perspective, keeping in
view the power of the State Government under Section 10(1)(c) and the object and
intendment of the Act. Not adjudicating the existing industrial dispute on merits
between the parties referred to it may lead to disruption of industrial peace and
harmony, which is the foremost important aspect in Industrial Jurisprudence as the
same would affect the public interest at large.
18. Ld. Dy. D.A. representing respondent department has also contended with vehemence
that claim petition is barred by limitation on account of delay and laches. It has been pointed that
termination of petitioner in this case took place on 2004 and the industrial dispute was raised after
several years of retrenchment. Repudiating the argument by Ld. Counsel, Ld. AR for the petitioner
has placed reliance upon judgment reported in 2007 LHLJ 903 Hon'ble High Court of H.P.
(Bhatag Ram's case) in which it has been held that delay in raising dispute may be considered by
court at the time of granting final relief however in various other judgments even longer delay has
been condoned. In Divisional Manager, HPFC & another vs. Garibu Ram, Latest HLJ 2007
(HP) 1160, delay of more than 10 years was condoned besides Hon'ble High Court has held that
principle of Limitation Act is not applicable to the industrial dispute. Similar view was taken by
Hon'ble Apex Court in Ajayab Singh vs. Sirhind Co-operative Marketing-cum-Processing
Society Limited and Another, (1999) 6 SCC 82 in which it has been held that the principle of
Limitation Act, 1963 did not apply to the proceeding under the Industrial Disputes Act.
19. Relying upon the aforestated judgment, it has been contended that claim of petitioner
cannot be defeated on the point of delay and laches. Repudiating arguments advanced by Ld.
counsel for petitioner, Ld. Dy. D.A. has placed reliance upon the judgment of Hon'ble Apex Court
titled as Assistant Engineer, Rajasthan State Agriculture Marketing Board, Sub-Division
Kota and Mohan Lal [2013 (139) FLR 125], the relevant para of the judgment are produced
below for reference:
Industrial Disputes Act, 1947-Sections 25-F and 10- Limitation Act, 1963- Section 5-
Industrial dispute-Termination of service-Finding of LAbour Court that workman had
completed 240 days in calendar year and her termination was in violation of section
25-F of the I.D. Act-Workman worked from 1-11-1984 to 17-2-1986 in all 286 days
during employment. Her services terminated on 18-2-1986. Industrial dispute raised
after 6 years of termination. Admitted delay of 6 years not kept in view by the Labour
Court- Judicial discretion exercised by the Labour Court flawed and unsustainable.
Reinstatement of the workman not the appropriate relief. In lieu of reinstatement
compensation of Rs. one lac directed to be paid to the workman by the appellant
employer within six weeks failing which interest @ 9% p.a. will be payable.
[Paras 21 and 22]
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Limitation Act, 1963. Section 5-Industrial Disputes Act, 1947- Section 25-F-
Termination of service- Industrial dispute raised after six years- Limitation Act not
applicable to reference made under the I.D. Act-Delay in raising industrial
disputes definitely an important circumstances which the Labour Court must
keep in view before granting relief”.
20. Repudiating the arguments by Ld. Dy. D.A. for the State, Ld. Counsel for
claimant/petitioner has relied upon the judgment of Hon'ble Apex Court in case titled as Tapash
Kumar Paul vs. BSNL & another reported in AIR 2015 SC 357 wherein Hon'ble Court held that
a Court may pass an order of reinstatement by awarding compensation but the same has to be based
on justifiable grounds. In this judgment, it was held that compensation can be granted in a situation
where the industry is closed or that employees has superannuated or going to retire shortly and no
period is left to her credit or where workman has been rendered in capacitated to discharge duties
cannot be reinstated and/or fourthly when he has lost confidence of the management to discharge
duties. It was observed that there may be appropriate cases on facts which may justify substituting
an order of reinstatement by award of compensation but that has to be supported by some legal
and justifiable reasons indicating why the reinstatement should be followed to be substituted
by award of compensation. Ld. Counsel for the petitioner with the aid of above-said judgment had
argued that there are only four situations when a worker may be awarded compensation instead of
reinstatement but the judgment has certainly not been correctly appreciated by Ld. Counsel as this
judgment postulates probable four situations which are illustrate in nature where compensation may
be awarded instead of reinstatement but that does not mean that except the four grounds, no other
ground would be appropriate for awarding compensation. In the case in hand before this court, it
has come that petitioner had abandoned the job who did not report for duty for several years and
later gave notice requesting for joining of duties but the conditions in para No.5 of judgment (2015
supra) even if not met requirement, cannot be a ground to reinstate the petitioner and it is only
compensation which would be appropriate relief. Ld. Counsel for the petitioner has relied upon the
judgment of Hon'be Apex Court titled as Deepali Gundu Surwase vs. Kranti Junior Adhyapak
Mahavidyalaya (D.Ed.) and Ors. reported in AIR 2014 SC (Supp) 121, Raghubir Singh vs.
General Manager, Haryana Roadways, Hissar reported in 2014(3) Apex Court Judgments 652.
I have gone through these judgments and of view that they don't come to rescue the petitioner on
point of reinstatement instead of compensation. Ld. Dy. D.A. for State on the other hand has relied
upon the judgment of Hon'ble Apex Court in Vice Chancellor, Lucknow University, Lucknow,
Uttar Pradesh v. Akhilesh Kumar Khare & another reported in AIR 2015 SC 3473. It has been
contended that engagement of claimant/petitioner in this case was not through regular mode of
recruitment and applying the ratio of this judgment AIR 2015 SC supra, claim of petitioner for
reinstatement can be negated and thus compensation would be sufficient for redressal of grievance
of the claimant/petitioner. Similarly, in 2016 (1) Him. L.R. 502 titled as State of Himachal
Pradesh and another vs. Chaman Singh relied by Ld. AR for petitioner interpretation of Section
137 of Limitation Act was involved which provides that Article 137 of Limitation Act did not apply
to industrial disputes. In 2014 (3) Apex Court Judgment 652 (SC) similar view was reiterated
which clearly mandates that claimant/petitioner cannot be denied relief sought for merely on the
ground of delay and laches. That being so, the law remains as it was that ground of delay and
laches, claimant/petitioner cannot be denied relief rather the court has to consider various aspects
before moulding relief and the case in hand it would not be erroneous to mention here that the
claimant/petitioner can be reasonably indemnified by ordering compensation and not by
reinstatement. In so far as judgment of AIR 2015 SC 1373 titled as Mackinon Machenize &
Company Ltd. vs. Mackinon Employees Union is concerned, the Hon'ble Apex Court has held
on closure of unit of company principle of 'Last come First go' was not followed which violated
Section 25-G of Industrial Disputes Act and retrenchment was held illegal entitling petitioner for
retrenchment compensation. Since the facts of case of Mackinon Machenize's case are different
from case in hand as in former closure of unit of company was involved whereas in case in hand
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before this court, there is no closure of company rather it is the department of HPPWD which had
engaged petitioner without following of the procedure although subject to funds and availability of
work. As such, when there is no closure of any unit by respondent which the petitioner was
engaged, judgment of Mackinon Machenize cannot be made applicable.
21. After hearing the rival contentions of the parties and case law relied by them, it can be
safely concluded that delay in raising industrial dispute is certainly important aspect/circumstance
which court has to keep in mind while exercising discretion. In para Nos. 20 and 21 of the
judgment as referred to in this case reported in 2013 (136) FLR 893 (SC) titled as Assistant
Engineer Rajasthan Development Corporation and another vs. Geetam Singh provides that
before exercising its judicial discretion, the Labour Court or Tribunal has to keep in mind all
relevant factors including the mode and manner of appointment, nature of employment, length of
service, the ground on which termination has been set aside and delay in raising industrial dispute
before grant of relief. It was observed by the Hon'ble Apex Court in judgment (2013 supra) before
that workman had worked for 286 days and had raised industrial dispute in 1992 whereas her
services have been terminated in 1986 and he raised industrial dispute after six years. The Hon'ble
Apex Court has held that though compensation awarded by Single Judge of the Hon'ble High Court
was too low and liable to be enhanced by the Division Bench but surely reinstatement of the
workman in the facts and circumstances is not the appropriate relief and thus Hon'ble Apex
Court awarded a lump-sum of Rs.1 lakh along-with interest @ 9% per annum if the respondent
failed to make payment of compensation within six weeks from the date of judgment. In the case in
hand before this court factors which have weighed are that the petitioner in all remained engaged
for about 08 years and actually worked for 746 days as per mandays chart on record and that the
services of petitioner were disengaged in September, 2004 who worked as non skilled worker and
had raised industrial dispute by issuance of demand notice after about eight years i.e. demand
notice was given on 6-1-2012. Taking into consideration factors mentioned above in pursuance to
judgments of Hon'ble Apex Court referred to above, petitioner would not be entitled either for
reinstatement or for back wages but a lump-sum compensation would be appropriate relief in view
of judgment 2013 (139) FLR 25 (SC). The judgments relied upon by Ld. Counsel for petitioner on
the matter of delay and laches is more or less settled law that claim of the petitioner could not be
solely declined on the ground of delay and laches. Similarly, judgment of Hon'ble Apex Court in
2014 titled as Raghubir Singh's case also does not come to the rescue of the petitioner as in this
judgment also the Hon'ble Apex Court has reiterated the mandate as given by the Hon'ble Apex
Court in previous judgment in the year 2013 i.e. Assistant Engineer, Rajasthan State
Agriculture Marketing Board, Sub-Division Kota and Mohan Lal's case. I have gone through
these judgments which are not attracted in this present case as this court not declining relief to the
petitioner on the ground of limitation rather on the basis of guidelines of Hon'ble Apex Court laid
down in judgment of 2013. Ld. Dy. D.A. representing State/respondents has relied upon the
judgment of Hon'ble Apex Court reported in AIR 2016 SC 2984 titled as Prabhakar v. Joint
Director Sericulture Department and another. I have gone through the judgment which deals
reference under Section 10 of the Industrial Disputes Act in which it has been held that Hon'ble
High Court can intervene in writ jurisdiction under Article 226 when reference has been challenged
on the ground of inordinate unexplained delay. Since the reference made by the Government in this
case is not in challenge before this Court, the above said judgment would not be attracted in the
facts and circumstances of the case. More so in view of observation qua facts made in judgment
(2016) supra, claimant/petitioner was found to be an educated person who was working as Clerk
whereas in case before this Court, the petitioner is an illiterate unskilled worker. For the above-said
reasons, plea of delay and laches would not eclipse claim of petitioner.
22. In view of foregoing discussion, a lump-sum compensation of Rs.95,000/- (Rupees
ninety five thousand only) would be an appropriate relief to which the petitioner is entitled in the
facts and circumstances of the case as stated above. It is further made clear that amount of
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compensation shall be paid within four months from the date of receipt of Award failing which the
petitioner would be entitled for interest @ 9% per annum from date of Award till its realization.
Issues No. 1, 2 and 4 are answered accordingly.
Issue no. 3
23. On the plea of non-maintainability of the claim petition under Section 10 of the
Industrial Disputes Act, Ld. Dy. D.A. representing respondent department has failed to allege in
reply in what manner petition is not maintainable. Thus, vague plea merits rejection outright.
Otherwise also, from pleadings and evidence on record, no inference of claim petition being not
maintainable could be raised against claimant/petitioner. This issue is decided in favour of
petitioner and against the respondent.
RELIEF
24. As sequel to my findings on foregoing issues, the respondent is hereby directed to pay
the compensation of Rs. 95,000/- (Rupees ninety five thousand only) to the petitioner in lieu of the
reinstatement back wages, seniority and past service benefits. Amount of compensation so awarded
will be paid by the respondent to the petitioner within four months from the date of receipt of
Award failing which the respondent shall be liable to pay the interest @ 9% per annum on the said
amount from the date of award till the date of its realization. In the peculiar circumstances of the
case, the parties are left to bear their own costs.
25. The reference is answered in the aforesaid terms.
26. A copy of this Award be sent to the appropriate Government for publication in the
official gazette.
27. File, after due completion be consigned to the Record Room.
Announced in the open Court today this 16th day of October, 2017.
Sd/-
(K. K. Sharma)
Presiding Judge,
Labour Court-cum-Industrial Tribunal,
Kangra at Dharamshala, H.P.
___________
IN THE COURT OF K. K. SHARMA, PRESIDING JUDGE, LABOUR COURT-CUM-
INDUSTRIAL TRIBUNAL, KANGRA AT DHARAMSHALA (HP)
Ref. No.
: 64/2016
Date of Institution : 20-02-2016
Date of Decision
: 16-10-2017
Smt. Krishni w/o Shri Vijay Kumar, r/o Village and Post Office Punto, Tehsil Pangi,
District Chamba, H.P.
….Petitioner.
Versus
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The Executive Engineer, I.P.H./H.P.P.W.D. Division, Killar, Tehsil Pangi, District Chamba,
H.P.
....Respondent.
Reference under Section 10 (1) of the Industrial Disputes Act, 1947
For the Petitioner
: Sh. N.L. Kaundal, AR
Sh. Vijay Kaundal, Adv.
For the Respondent : Sh. Sanjeev Singh Rana, Dy. D.A.
AWARD
The reference given below has been received from the appropriate Government for
adjudication:
“Whether the industrial dispute raised by the worker Smt. Krishni w/o Shri Vijay
Kumar, r/o Village and Post Office Punto, Tehsil Pangi, District Chamba, H.P. before
the Executive Engineer, I.P.H./H.P.P.W.D. Division, Killar, Tehsil Pangi, District
Chamba, H.P. vide demand notice dated 2.6.2012 regarding her alleged illegal
termination of service during September, 2004 suffers from delay and laches? If not,
Whether termination of the services of Smt. Krishni w/o Shri Vijay Kumar, r/o Village
and Post Office Punto, Tehsil Pangi, District Chamba, H.P. by the Executive Engineer,
I.P.H./H.P.P.W.D. Division, Killar, Tehsil Pangi, District Chamba, H.P. during
September, 2004 without complying the provisions of the Industrial Disputes Act,
1947, is legal and justified? If not, what amount of back wages, seniority, past service
benefits and compensation the above aggrieved workman is entitled to from the above
employer?”
2. On receipt of reference from appropriate government, notices were issued to the parties
in pursuance to which claimant/petitioner has filed statement of claim.
3. Brief facts as enumerated in the present claim petition by the petitioner above named
revealed that she had been appointed on daily wage basis on muster roll in the year 1991 who
continuously worked till September, 2004 with the respondent. Averments made in the petition
further revealed that petitioner had worked for 160 days in each calendar year as per the criteria
prescribed for tribal area of Pangi Tehsil District Chamba and became eligible for continuous
service envisaged under statutory provisions of Section 25-B of the Industrial Disputes Act, 1947
(hereinafter referred to as "the Act" for brevity). Averments made in the petition revealed that the
services of petitioner had been interrupted by way of intermittent/artificial breaks given by the
respondent/department deliberately and as such breaks are required to be counted as 'continuous
services' for the purposes of calculation of 160 days for the applicability of Section 25-B of the Act.
The grievance of petitioner remains that respondent/department had terminated/disengaged
petitioner from daily wage service orally without issuing one month's notice in writing stipulating
therein reason for retrenchment besides no retrenchment compensation was paid to petitioner when
respondent had been illegally terminated. It is also alleged that respondent had not followed the
provisions of Section 25-F of the Act while disengaging petitioner from service. The grievance of
petitioner further revealed that during years 2003 to 2005, respondent/department had disengaged
the services of more than 500 daily waged workmen in different Divisions of HPPWD and IPH. It
is stated that it has came to the knowledge to the petitioner from reliable sources that
respondent/department had engaged more than 200 contractors during 2003 onwards. It is stated
that after termination of the services of petitioner, petitioner had approached the respondent time
and again but of no avail. The grievance of petitioner further remains that when the services of
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petitioner had been terminated, respondent/department had reengaged number of new workman
from time to time and while doing so, respondent had not followed the principle of 'Last come,
First go' envisaged under Section 25-G of the Act. It is further alleged that respondent/department
had continuously retained junior to petitioner who are still in service namely Janto Devi who
appointed in 2001, Jeet Singh in 1997, Gijja Ram in 1999, Laxmi Devi in 1999 and Gian Chand in
1997. The claimant/petitioner claimed that she had spotless service record who never been charge-
sheeted for any act of indiscipline or negligence or her conduct and even at the time of verbal
termination, no chargesheet had been served upon her and the at the same time, no opportunity of
hearing had been afforded to him. The petitioner also alleges that she has remained unemployed
ever since her illegal termination from September, 2004 till the date of institution of present claim
petition who had been nowhere gainfully employed and was thus entitled for full back wages.
Feeling aggrieved the action of respondent in terminating the services of petitioner an industrial
dispute was raised vide demand notice dated 02-6-2012 copy of the same was forwarded to Labour
Officer, Chamba for further necessary action. It is alleged that Labour Officer, Chamba could not
resolve the dispute and failure report under Section 12(4) of the Industrial Disputes Act and the
matter was referred to appropriate government i.e. Labour Commissioner, Shimla who declined to
refer the case of petitioner for adjudication in pursuance to which the petitioner had approached the
Hon'ble High Court of H.P. by filing CWP No.4397/2015 which had been decided on 21-11-2015
and order of the Labour Commissioner, Shimla has been setting aside. Accordingly alleging
respondent to have committed violation of statutory provision of Section 25-F, Section 25-G and
Section 25-H of the Industrial Disputes Act, 1947 and thus petitioner prays for setting aside illegal
termination of petitioner by the respondent/department in September, 2004 as well as period of
intermittent/fictional breaks deliberately given time and again during entire service of petitioner
between 1991 to 2004. She further prayed for reinstatement in service along-with full back wages,
seniority including continuity in service and to any other relief petitioner is entitled.
4. The respondent contested claim petition, filed reply inter-alia taken preliminary
objections of maintainability, claim petition being bad on account of delay and laches. On merits
denied that petitioner had worked for more than 160 days in each calendar year rather clarified by
stating that petitioner was engaged as daily waged Beldar in 1991 who remained engaged till 2004
but had worked intermittently as petitioner used to come and attend the work at her own sweet will
and convenience. Relying upon the mandays chart, it has been categorically pleaded by the
respondent that petitioner had not completed 160 days in each calendar year as required for tribal
area of Pangi Tehsil. The allegations of fictional breaks given by respondent to the petitioner have
been specifically denied. In so far as engagement of persons junior to petitioner mentioned in para
No. 4 of the claim petition were appointed as per order of Labour Court and no other juniors to the
petitioner had been retained in service by the respondent. It is further stated that name of person
Sham Lal and Gautam Singh had been engaged on harness case and as such there was no violation
of the principle of the Industrial Disputes Act, 1947. On the plea of termination of service of
petitioner, respondent specifically alleges that petitioner had left the job at her own will therefore
serving of notice or pay in lieu thereof was not required. Reiterating its stand respondent has
maintained that petitioner had left the work of her own sweet will and the persons mentioned in
para No.4 are stated to have engaged as per direction of the Labour Court-cum-Industrial Tribunal
Dharamshala and respondent had not violated the principle of 'Last come, First go'. It is also
contended that if petitioner had been terminated in 2004, she would have definitely raised industrial
dispute immediately and that after ten years petitioner is stated to be agitating the matter which is
bad on account of delay and laches. It is also contended that since the services of petitioner had not
been terminated by the respondent, question of issuance of notice or wages in lieu thereof did not
arise and at the same time, there was no necessity for charge-sheet or issuing any notice of
petitioner after her termination. It is contended that petitioner was agriculturist and gainfully
employed and was thus not entitled for back wages.
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5. The petitioner filed rejoinder, reiterated her stand as maintained in the claim petition.
Further asserted that provisions of Limitation Act did not eclipse the claim of petitioner in totality
besides allegation of violation of principle of 'Last come First go' was specifically denied.
6. In order to prove her case, petitioner had examined herself as PW1 tendered/proved her
affidavit Ex. PW1/A under Order 18 Rule 4 CPC, copy of seniority list Ex. PW1/B, copy of list of
workers Ex. PW1/C and closed evidence. On the other hand, repudiating the evidence led by the
petitioner, respondent examined RW1 Shri D.R. Chauhan, the then Executive Engineer, HPPWD
Division Killar as RW1 tendered/proved mandays chart of petitioner Ex. RW1/B, copy of mandays
of workers Ex. RW1/C and closed the evidence.
7. I have heard the Ld. counsel of petitioner and Ld. Dy. D.A. representing respondent,
gone through records of the case carefully relevant for disposed of this case.
8. From the contentions raised, following issues were framed on 20-10-2016 for
determination:
1. Whether the industrial dispute raised by petitioner vide demand notice dated
02-06-2012 qua her termination of service during September, 2004 by respondent
suffers from the vice of delay and laches as alleged? If so, its effect?
...OPP.
2. Whether termination of the services of petitioner by the respondent during September,
2004 is/was illegal and unjustified as alleged?
...OPP.
3. If issue No.2 is proved in affirmative, to what service benefits the petitioner is entitled
to?
...OPR.
4. Whether the claim petition is not maintainable in the present form as alleged? ...OPR.
Relief.
5. For the reasons detailed here under, my findings on the above issues are as follows:—
Issue No.1 : Discussed
Issue No. 2 : Yes
Issue No. 3 : Discussed
Issue No. 4 : No
Relief : Petition is partly allowed awarding compensation of Rs.80,000/- per operative
part of award.
REASONS FOR FINDINGS
Issues No.1 2, and 4
10. All these issues have been taken up together for discussion being interconnected which
can be disposed of simultaneously without repetition of evidence.
11. Relationship of petitioner having been engaged as daily waged Beldar by respondent
on muster roll basis in the year 1991 continuously worked till September, 2004 with the respondent
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is not in dispute. Admittedly, petitioner was engaged without any written order or settlement of
terms and conditions by the respondent. It is equally not in dispute that no written order was passed
while terminating service of the petitioner as claim of respondent remains that it had not retrenched
petitioner from service who had abandoned the job of her own and used to work intermittently as
per her own wish and convenience. Admittedly, the reference of appropriate govt. does not relate to
plea of fictional breaks but only with regard to petitioner's termination from service. In the
backdrop of foregoing admitted facts on record, claim of petitioner requires to be adjudicated with
a view to determine if petitioner is entitled for relief of reinstatement and back wages along-with
seniority and past service benefits and compensation as claimed by him.
12. Stepping into witness box as PW1 has sworn in affidavit Ex. PW1/A reiterating and
reaffirming her pleadings as stipulated in claim petition. In her affidavit she has claimed to have
worked with the respondent/department for more than 160 days in Pangi Sub Division Chamba
District and remained engaged from 1991 to September, 2004. She has also stated on oath that no
notice under Section 25-F of the Act was given by the respondent before terminating her service
and at the same time no compensation in lieu thereof notice period was paid to her and thus her
termination was illegal and void entitling petitioner benefit of reinstatement of service with full
back wages and all the other consequential service benefits. The petitioner has further alleged on
oath that respondent/department after terminating her services in September, 2004 by oral order had
engaged several co-workers who were junior to petitioner were retained in service. Not only this,
the persons who were junior to petitioner are stated to have been regularized in service and thus
respondent had not followed the mandate of Sections 25-G and 25-H of the Act which was
obligatory on its part. The case of petitioner also remains that she had served respondent with due
diligence and had spotless service record as respondent/department had never called any
explanation or raised charge-sheet against her but even while retrenching petitioner from service,
no notice was given. The petitioner has also explained reason for not approaching the authorities
under Labour Act and thereafter before this Tribunal, as there existed no road between Chamba
town to Pangi Tehsil till 2012 and petitioner had moved before the Labour Officer raising demand
notice consequent upon which a failure report was submitted and as the Labour Commissioner did
not make reference for industrial dispute raised by petitioner, the petitioner had moved before the
Hon'ble High Court by filing CWP where direction was passed for making reference to the Labour
Court due to which delay had occurred and same was satisfactorily explained.
13. In so far as plea of abandonment raised by respondent is concerned, the same merits
rejection in view of the fact that respondent had failed to produce any record by which it could be
established that whenever petitioner absented from her duty as also reflected in mandays chart Ex.
RW1/B any notice or letter was ever issued. On this point respondent as RW1 has specifically
admitted that whenever petitioner abandoned the job, no notice had been issued. RW1 specifically
admitted that no departmental inquiry was initiated against petitioner even after September, 2004.
No reason whatsoever has been assigned for such any action or omission on the part of respondent
in not initiating any departmental proceedings or making correspondence calling upon the
petitioner to join service. This prima facie belies the stand taken by the respondent as abandonment
has to be proved like any other fact in issue. The petitioner, on the other hand, as PW1 in cross-
examination has specifically denied that she used to leave the job in between and attended the work
intermittently rather she has claimed that intermit breaks had been deliberately given to her by the
respondent in the service record of petitioner so that petitioner did not complete 160 days of work
as required for Pangi Tehsil area and also for applicability of Section 25-B of the Act. As such, in
absence of any specific and reliable evidence led by respondent, it would be unsafe to hold that
respondent had established plea of abandonment.
14. A bare glance on the mandays chart Ex. RW1/B would reveal that petitioner had
worked for 39 days in the year 1991, 30 days in 1994, 82 days in 1995, 111 days in 1999, 55 days
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in 2000, 72 days in 2002, 107 days in 2003 and 19 days in 2004 and thus a total of her service in
1991 to 2004 in 08 years she had worked for 515 days in her entire service period. Be it noticed
that petitioner had not worked for more than 160 days and as there is no reference from the Labour
Commissioner, Shimla on the point of artificial breaks, this court is to confine its findings only with
regard to alleged illegal termination. It is evident from mandays chart Ex. RW1/B that in the year
2004 the petitioner had merely worked for 112 days and thus immediately in preceding 12 calendar
months from the month of termination of petitioner had not rendered service of 160 days. As such,
the respondent is held to have not violated the provisions of Section 25-F of the Act.
15. Ld. Counsel/Authorized Representative for petitioner has contended with vehemence
that large number of workers who were junior to petitioner had been appointed and these workers
have been retained in service and regularized. The grievance of petitioner remains that principle of
'Last come First go' was not followed as the juniors were retained and services of petitioner despite
being senior was terminated without any valid reason. Ex. PW1/B is the year-wise
seniority/mandays of daily waged workers who were junior to the petitioner and had joined in the
year 1999 or thereafter. All of these co-workers shown in Ex. PW1/C the year-wise mandays
details of workers of Division HPPWD Killar were certainly junior to petitioner who were given
sufficient work existing in those years more than 200 days in a year whereas the petitioner had been
not given muster roll for the whole month. Ex. PW1/C also established that all the co-workers
shown in this document have worked for more than 160 days in most of the years although they
were junior to petitioner. Evidently, there is no iota of evidence of respondent establishing that
petitioner was called upon to join for service at any time after September, 2004 even at the time
when junior persons were reengaged. That being so the respondent had certainly violated the
provisions of Section 25-G of the Act as the juniors workers mentioned in para No.4 of the affidavit
were retained whereas petitioner was senior from these co-workers having joined service in 1991
was terminated and even thereafter respondent omitted to afford opportunity to petitioner for
reemployment for work which also violates the provisions of Section 25-H of the Act. Ld. Counsel
for petitioner has placed reliance upon judgment of Central Bank of India vs. S. Satyam, 1996 (5)
SCC 419 in which Hon'ble Apex Court has held that for the applicability of Sections 25-G and 25-
H of the Act, there was no necessity of claimant/petitioner to have worked for 240 days as in
case of provisions of Section 25-F of the Act.
16. Ld. Counsel for petitioner has contended that after petitioner's termination in
September, 2004, she had remained unemployed and was not earning anything thereafter as such
was entitled for full back wages. Repudiating the arguments of ld. counsel of petitioner, Ld. Dy.
D.A. for the State has taken this court through cross-examination of the petitioner who has admitted
that she had cultivable land with her and also worked a private labourer. Thus, plea of having
remained not gainfully employed gets belied admission of petitioner in cross examination in which
she had maintained that she had been earning from agricultural land as well as she has been
working as daily wager privately. Reliance has been placed on the judgment of Hon'ble Apex Court
North East Karnataka Road Transport Corporation vs. M. Nagangouda (2007) 10 SCC 765
in which Division Bench comprising of Justice A.R. Lakshmanan and Justice Altamas Kabir had
held that 'term gainfully employment would also include self employment wherefrom income
is generated. It was income either from employment in an establishment or from self
employment merely differentiates the sources from which income is generated, the end use
being the same'. Applying the ratio of judgment of 2007 (supra) to this case since the petitioner
was earning from her agricultural and manual pursuits, the same were sufficient to maintain him
and his family. It is thus held that petitioner was gainfully employed. Be it stated here that Hon'ble
Apex Court in Deepali Gundu Surwase's case has held that the Labour Court was not justified in
holding that merely because the respondent was receiving agriculture income, she cannot be treated
to be engaged in gainful employment. Since the petitioner had income from agriculture pursuits for
her livelihood it cannot be stated that petitioner was not gainfully employed and thus would not be
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entitled full back wages. In view of the forgoing discussion, it is held that the relationship of
workman and employer existed between petitioner and respondent and that petitioner was illegally
retrenched without compliance of Section 25-G and Section 25-H of the Act although remained
gainfully employed after her retrenchment. Thus, applying the ratio of judgment of Hon'ble Apex
Court (2007 supra), it may not be erroneous to hold that petitioner was gainfully employed and
thus would be not entitled for back wages for the period she was out of job on being terminated by
the respondent.
17. Lastly, Ld. Dy. D.A. for State has contended with vehemence that there is inordinate
and explained delay which disentitles petitioner relief claimed for by him. On the other hand, ld.
counsel for the petitioner has relied upon the judgment of Hon'ble Apex Court titled Raghubir
Singh vs. General Manager, Haryana Roadways, Hissar reported in 2014 Lab IC 4266 (SC)
and the relevant paras of the judgment are produced below for reference:
“12. Therefore, in our considered view, the observations made by this Court in the
Rajasthan State Agriculture Marketing Board case (supra) upon which the learned
Additional Advocate General for the State of Haryana has placed reliance cannot be
applied to the fact situation of the case on hand, for the reason that the Labour Court
has erroneously rejected the reference without judiciously considering all the relevant
factors of the case particularly the points of dispute referred to it and answered the 2nd
issue regarding the reference being barred by limitation but not on the merits of the
case. The said decision has no application to the fact situation and also for the reason
the catena of decisions of this Court referred to supra, wherein this Court has
categorically held that the provisions of Limitation Act under Article 137 has no
application to make reference by the appropriate government to the Labour
Court/Industrial Tribunal for adjudication of existing industrial dispute between
workmen and the employer.
13. In the case on hand, no doubt there is a delay in raising the dispute by the
appellant; the Labour Court nevertheless has the power to mould the relief
accordingly. At the time of adjudication, if the dispute referred to the Labour
Court is not adjudicated by it, it does not mean that the dispute ceases to exist.
The appropriate government in exercise of its statutory power under Section 10(1)(c)
of the Act can refer the industrial dispute, between the parties, at any time, to either the
jurisdictional Labour Court/Industrial Tribunal as interpreted by this Court in the Avon
Services case referred to supra. Therefore, the State Government has rightly exercised
its power under Section 10(1)(c) of the Act and referred the points of dispute to the
Labour Court as the same are in accordance with the law laid down by this Court in
Avon Services & Sapan Kumar Pandit cases referred to supra.
14. Further, the workman cannot be denied to seek relief only on the ground of delay
in raising the dispute as held in the case of S.M. Nilajkar & Ors. v. Telecom
District Manager, Karnataka[4] it was held by this Court as follows-
“17. It was submitted on behalf of the respondent that on account of delay in raising
the dispute by the appellants the High Court was justified in denying relief to the
appellants. We cannot agree...... In Ratan Chandra Sammanta and Ors. vs. Union of
India and Ors. (supra)1993 AIR SCW 2214, it was held that a casual labourer
retrenched by the employer deprives himself of remedy available in law by delay itself,
lapse of time results in losing the remedy and the right as well. The delay would
certainly be fatal if it has resulted in material evidence relevant to adjudication being
lost and rendered not available. However, we do not think that the delay in the case at
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hand has been so culpable as to disentitle the appellants for any relief.....” (Emphasis
laid by the Court) In view of the legal principles laid down by this Court in the above
judgment, the reference of the industrial dispute made in the case on hand by the State
Government to the Labour Court to adjudicate the existing industrial dispute between
the parties was made within a reasonable time, considering the circumstances in which
the workman was placed, firstly, as there was a criminal case pending against her and
secondly, the respondent had assured the workman that he would be reinstated after her
acquittal from the criminal case. Moreover, it is reasonable to adjudicate the industrial
dispute in spite of the delay in raising and referring the matter, since there is no
mention of any loss or unavailability of material evidence due to the delay. Thus, we
do not consider the delay in raising the industrial dispute and referring the same to the
Labour Court for adjudication as gravely erroneous and it does not debar the workman
from claiming rightful relief from her employer.
15. In the case of Ajaib Singh v. The Sirhind Co-Operative Marketing Cum- Processing
Service Society Limited & Anr.[5] this Court has opined that relief cannot be denied to
the workman merely on the ground of delay, stating that:—
“10. It follows, therefore, that the provisions of Article 137 of the Schedule to
Limitation Act, 1963 are not applicable to the proceedings under the act and that the
relief under it cannot be denied to the workman merely on the ground of delay. The
plea of delay if raised by the employer is required to be proved as a matter of fact by
showing the real prejudice and not as a merely hypothetical defence. No reference to
the labour court can be generally questioned on the ground of delay alone. Even in a
case where the delay in shown to be existing, the tribunal, labour court or board,
dealing with the case can appropriately mould the relief by declining to grant back
wages to the workman till the date he raised the demand regarding her illegal
retrenchment/ termination or dismissal. The Court may also in appropriate cases direct
the payment of part of the back wages instead of full back wages.....” (Emphasis laid
by the Court)
16. Hence, we are of the opinion, having regard to the fact and circumstances of the case
that there is no delay or latches on the part of the workman from the date of her
acquittal in the criminal case. Thereafter, upon failure of the respondent in adhering to
the assurance given to the workman that he would be reinstated after her acquittal from
the criminal case, the workman approached the conciliation officer and the State
Government to make a reference to the Labour Court for adjudication of the dispute
with regard to the order of dismissal passed by the respondent. Keeping in mind the
date of acquittal of the appellant and the date on which he approached the conciliation
officer by raising the dispute, since the respondent had not adhered to its assurance, the
State Government had rightly referred the dispute for its adjudication. Therefore it
cannot be said that there was a delay on the part of the appellant in raising the dispute
and getting it referred to the Labour Court by the State Government.
17. Further, the Labour Court on an erroneous assumption of law framed the
additional issue regarding the limitation in raising the dispute and its reference
by the State Government to the Labour Court. Thus, the Labour Court has ignored
the legal principles laid down by this Court in the cases referred to supra. The award
passed by the Labour Court was accepted erroneously by both the learned single Judge
and the Division Bench of the High Court by dismissing the Civil Writ Petition & the
Letters Patent Appeal without examining the case in its proper perspective, keeping in
view the power of the State Government under Section 10(1)(c) and the object and
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intendment of the Act. Not adjudicating the existing industrial dispute on merits
between the parties referred to it may lead to disruption of industrial peace and
harmony, which is the foremost important aspect in Industrial Jurisprudence as the
same would affect the public interest at large.
18. Ld. Dy. D.A. representing respondent department has also contended with vehemence
that claim petition is barred by limitation on account of delay and laches. It has been pointed that
termination of petitioner in this case took place on 2004 and the industrial dispute was raised after
several years of retrenchment. Repudiating the argument by Ld. counsel, Ld. AR for the petitioner
has placed reliance upon judgment reported in 2007 LHLJ 903 Hon'ble High Court of H.P.
(Bhatag Ram's case) in which it has been held that delay in raising dispute may be considered by
court at the time of granting final relief however in various other judgments even longer delay has
been condoned. In Divisional Manager, HPFC & another vs. Garibu Ram, Latest HLJ 2007
(HP) 1160, delay of more than 10 years was condoned besides Hon'ble High Court has held that
principle of Limitation Act is not applicable to the industrial dispute. Similar view was taken by
Hon'ble Apex Court in Ajayab Singh vs. Sirhind Co-operative Marketing-cum-Processing
Society Limited and Another, (1999) 6 SCC 82 in which it has been held that the principle of
Limitation Act, 1963 did not apply to the proceeding under the Industrial Disputes Act.
19. Relying upon the aforestated judgment, it has been contended that claim of petitioner
cannot be defeated on the point of delay and laches. Repudiating arguments advanced by ld.
counsel for petitioner, ld. Dy. D.A. has placed reliance upon the judgment of Hon'ble Apex Court
titled as Assistant Engineer, Rajasthan State Agriculture Marketing Board, Sub-Division
Kota and Mohan Lal [2013 (139) FLR 125], the relevant para of the judgment are produced
below for reference:
Industrial Disputes Act, 1947-Sections 25-F and 10- Limitation Act, 1963- Section 5-
Industrial dispute-Termination of service-Finding of Lboaur Court that workman had
completed 240 days in calander year and her termination was in violation o section 25-F of
the I.D.Act- Wrokman worked from 1-11-1984 to 17-2-1986 in all 286 days during
employment. her services terminated on 18-2-1986. Industrial dispute raised after 6 years of
termination. Admitted delay of 6 years not kept in view by the Labour Court- Judicial
discretion exercised by the Labour Court flawed and unsustainable. Reinstatement of the
workman not the appropriate relief. In lieu of reinstatement compensation of Rs.one lac
directed to be paid to the workman by the appellantemployer within six weeks failing which
interest @ workman 9% p.a. will be payable.
[Paras 21 and 22]
Limitation Act, 1963. Section 5- Industrial Disputes Act, 1947- Section 25-F- Termination
of service- Industrial dispute raised after six years- Limitation Act not applicable to
reference made under the I.D. Act-Delay in raising industrial disputes definitely an
important circumstances which the Labour Court must keep in view before granting
relief”.
20. Repudiating the arguments by ld. Dy. D.A. for the State, ld. counsel for
claimant/petitioner has relied upon the judgment of Hon'ble Apex Court in case titled as Tapash
Kumar Paul vs. BSNL & another reported in AIR 2015 SC 357 wherein Hon‟ble Court held that
a Court may pass an order of reinstatement by awarding compensation but the same has to be based
on justifiable grounds. In this judgment, it was held that compensation can be granted in a situation
where the industry is closed or that employees has superannuated or going to retire shortly and no
period is left to her credit or where workman has been rendered in capacitated to discharge duties
cannot be reinstated and/or fourthly when he has lost confidence of the management to discharge
duties. It was observed that there may be appropriate cases on facts which may justify substituting
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an order of reinstatement by award of compensation but that has to be supported by some legal
and justifiable reasons indicating why the reinstatement should be followed to be substituted
by award of compensation. Ld. counsel for the petitioner with the aid of above-said judgment had
argued that there are only four situations when a worker may be awarded compensation instead of
reinstatement but the judgment has certainly not been correctly appreciated by ld. counsel as this
judgment postulates probable four situations which are illustrate in nature where compensation may
be awarded instead of reinstatement but that does not mean that except the four grounds, no other
ground would be appropriate for awarding compensation. In the case in hand before this court, it
has come that petitioner had abandoned the job who did not report for duty for several years and
later gave notice requesting for joining of duties but the conditions in para no.5 of judgment (2015
supra) even if not met requirement, cannot be a ground to reinstate the petitioner and it is only
compensation which would be appropriate relief. Ld. counsel for the petitioner has relied upon the
judgment of Hon'be Apex Court titled as Deepali Gundu Surwase vs. Kranti Junior Adhyapak
Mahavidyalaya (D.Ed.) and Ors. reported in AIR 2014 SC (Supp) 121, Raghubir Singh vs.
General Manager, Haryana Roadways, Hissar reported in 2014(3) Apex Court Judgments 652.
I have gone through these judgments and of view that they don't come to rescue the petitioner on
point of reinstatement instead of compensation. Ld. Dy. D.A. for State on the other hand has relied
upon the judgment of Hon'ble Apex Court in Vice Chancellor, Lucknow University, Lucknow,
Uttar Pradesh v. Akhilesh Kumar Khare & another reported in AIR 2015 SC 3473. It has been
contended that engagement of claimant/petitioner in this case was not through regular mode of
recruitment and applying the ratio of this judgment AIR 2015 SC supra, claim of petitioner for
reinstatement can be negated and thus compensation would be sufficient for redressal of grievance
of the claimant/petitioner. Similarly, in 2016 (1) Him. L.R. 502 titled as State of Himachal
Pradesh and another vs. Chaman Singh relied by ld. AR for petitioner interpretation of Section
137 of Limitation Act was involved which provides that Article 137 of Limitation Act did not apply
to industrial disputes. In 2014 (3) Apex Court Judgment 652 (SC) similar view was reiterated
which clearly mandates that claimant/petitioner cannot be denied relief sought for merely on the
ground of delay and laches. That being so, the law remains as it was that ground of delay and
laches, claimant/petitioner cannot be denied relief rather the court has to consider various aspects
before moulding relief and the case in hand it would not be erroneous to mention here that the
claimant/petitioner can be reasonably indemnified by ordering compensation and not by
reinstatement. In so far as judgment of AIR 2015 SC 1373 titled as Mackinon Machenize &
Company Ltd. vs. Mackinon Employees Union is concerned, the Hon'ble Apex Court has held
on closure of unit of company principle of "Last come First go" was not followed which violated
Section 25-G of Industrial Disputes Act and retrenchment was held illegal entitling petitioner for
retrenchment compensation. Since the facts of case of Mackinon Machenize's case are different
from case in hand as in former closure of unit of company was involved whereas in case in hand
before this court, there is no closure of company rather it is the department of HPPWD which had
engaged petitioner without following of the procedure although subject to funds and availability of
work. As such, when there is no closure of any unit by respondent which the petitioner was
engaged, judgment of Mackinon Machenize cannot be made applicable.
21. After hearing the rival contentions of the parties and case law relied by them, it can be
safely concluded that delay in raising industrial dispute is certainly important aspect/circumstance
which court has to keep in mind while exercising discretion. In para nos. 20 and 21 of the judgment
as referred to in this case reported in 2013 (136) FLR 893 (SC) titled as Assistant Engineer
Rajasthan Development Corporation and another vs. Geetam Singh provides that before
exercising its judicial discretion, the Labour Court or Tribunal has to keep in mind all relevant
factors including the mode and manner of appointment, nature of employment, length of service,
the ground on which termination has been set aside and delay in raising industrial dispute before
grant of relief. It was observed by the Hon'ble Apex Court in judgment (2013 supra) before that
workman had worked for 286 days and had raised industrial dispute in 1992 whereas her services
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have been terminated in 1986 and he raised industrial dispute after six years. The Hon'ble Apex
Court has held that though compensation awarded by Single Judge of the Hon'ble High Court was
too low and liable to be enhanced by the Division Bench but surely reinstatement of the
workman in the facts and circumstances is not the appropriate relief and thus Hon'ble Apex
Court awarded a lump-sum of Rs.1 lakh along-with interest @ 9% per annum if the respondent
failed to make payment of compensation within six weeks from the date of judgment. In the case in
hand before this court factors which have weighed are that the petitioner in all remained engaged
for about 08 years and actually worked for 515 days as per mandays chart on record and that the
services of petitioner were disengaged in September, 2004 who worked as non skilled worker and
had raised industrial dispute by issuance of demand notice after about eight years i.e. demand
notice was given on 2-6-2012. Taking into consideration factors mentioned above in pursuance to
judgments of Hon'ble Apex Court referred to above, petitioner would not be entitled either for
reinstatement or for back wages but a lump-sum compensation would be appropriate relief in view
of judgment 2013 (139) FLR 25 (SC). The judgments relied upon by ld. counsel for petitioner on
the matter of delay and laches is more or less settled law that claim of the petitioner could not be
solely declined on the ground of delay and laches. Similarly, judgment of Hon'ble Apex Court in
2014 titled as Raghubir Singh's case also does not come to the rescue of the petitioner as in this
judgment also the Hon'ble Apex Court has reiterated the mandate as given by the Hon'ble Apex
Court in previous judgment in the year 2013 i.e. Assistant Engineer, Rajasthan State
Agriculture Marketing Board, Sub-Division Kota and Mohan Lal's case. I have gone through
these judgments which are not attracted in this present case as this court not declining relief to the
petitioner on the ground of limitation rather on the basis of guidelines of Hon'ble Apex Court laid
down in judgment of 2013. Ld. Dy. D.A. representing State/respondents has relied upon the
judgment of Hon'ble Apex Court reported in AIR 2016 SC 2984 titled as Prabhakar v. Joint
Director Sericulture Department and another. I have gone through the judgment which deals
reference under Section 10 of the Industrial Disputes Act in which it has been held that Hon'ble
High Court can intervene in writ jurisdiction under Article 226 when reference has been challenged
on the ground of inordinate unexplained delay. Since the reference made by the Government in this
case is not in challenge before this Court, the above said judgment would not be attracted in the
facts and circumstances of the case. Moreso in view of observation qua facts made in judgment
(2016) supra, claimant/petitioner was found to be an educated person who was working as Clerk
whereas in case before this Court, the petitioner is an illiterate unskilled worker. For the above-said
reasons, plea of delay and laches would not eclipse claim of petitioner.
22. In view of foregoing discussion, a lump-sum compensation of Rs.80,000/- (Rupees
eighty thousand only) would be an appropriate relief to which the petitioner is entitled in the facts
and circumstances of the case as stated above. It is further made clear that amount of compensation
shall be paid within four months from the date of receipt of Award failing which the petitioner
would be entitled for interest @ 9% per annum from date of Award till its realization. Issues no. 1
to 3 are answered accordingly.
ISSUE NO.4
23. On the plea of non-maintainability of the claim petition under Section 10 of the
Industrial Disputes Act, ld. Dy. D.A. representing respondent department has failed to allege in
reply in what manner petition is not maintainable. Thus, vague plea merits rejection outright.
Otherwise also, from pleadings and evidence on record, no inference of claim petition being not
maintainable could be raised against claimant/petitioner. This issue is decided in favour of
petitioner and against the respondent.
RELIEF
24. As sequel to my findings on foregoing issues, the respondent is hereby directed to pay
the compensation of Rs. 80,000/- (Rupees eighty thousand only) to the petitioner in lieu of the
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reinstatement back wages, seniority and past service benefits. Amount of compensation so awarded
will be paid by the respondent to the petitioner within four months from the date of receipt of
Award failing which the respondent shall be liable to pay the interest @ 9% per annum on the said
amount from the date of award till the date of its realization. In the peculiar circumstances of the
case, the parties are left to bear their own costs.
25. The reference is answered in the aforesaid terms.
26. A copy of this Award be sent to the appropriate Government for publication in the
official gazette.
27. File, after due completion be consigned to the Record Room.
Announced in the open Court today this 16th day of October, 2017.
(K. K. Sharma)
Presiding Judge,
Labour Court-cum-Industrial Tribunal,
Kangra at Dharamshala, H.P.
_________
IN THE COURT OF K. K. SHARMA, PRESIDING JUDGE, LABOUR COURT-CUM-
INDUSTRIAL TRIBUNAL, KANGRA AT DHARAMSHALA (HP)
Ref. No.
: 205/2016
Date of Institution : 26-03-2016
Date of Decision
: 16-10-2017
Shri Narinder Kumar s/o Shri Nanak Chand, r/o Village and Post Office Ponto, Tehsil
Pangi, District Chamba, H.P.
….Petitioner.
Versus
The Executive Engineer, I.P.H./H.P.P.W.D., Division Killar, Tehsil Pangi, District Chamba,
H.P.
....Respondent.
Reference under Section 10 (1) of the Industrial Disputes Act, 1947
For the Petitioner
: Sh. N.L. Kaundal, AR
Sh. Vijay Kaundal, Adv.
For the Respondent : Sh. Sanjeev Singh Rana, Dy. D.A.
AWARD
The reference given below has been received from the appropriate Government for
adjudication:
“Whether alleged termination of services of Shri Narinder Kumar S/O Shri Nanak
Chand, R/O Village and Post Office Ponto, Tehsil Pangi, District Chamba, H.P. during
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September, 2004 by the Executive Engineer, Killar Division, I.P.H./H.P.P.W.D. Killar,
Tehsil Pangi, District Chamba, H.P., who had worked as beldar on daily wages and has
raised his industrial dispute after more than 7 years vide demand notice dated
02.06.2012, without complying the provisions of the Industrial Disputes Act, 1947 is
legal and justified? If not, keeping in view of delay of more than 7 years in raising the
industrial dispute, what amount of back wages, seniority, past service benefits and
compensation the above ex-worker is entitled to from the above employer/
management?”
2. On receipt of reference from appropriate government, notices were issued to the parties
in pursuance to which claimant/petitioner has filed statement of claim.
3. Brief facts as enumerated in the present claim petition by the petitioner above named
revealed that he had been appointed on daily wage basis on muster roll in the month of
September,1998 who continuously worked till September, 2004 with the respondent. Averments
made in the petition further revealed that petitioner had worked for 160 days in each calendar year
as per the criteria prescribed for tribal area of Pangi Tehsil District Chamba and became eligible for
continuous service envisaged under statutory provisions of Section 25-B of the Industrial Disputes
Act, 1947 (hereinafter referred to as "the Act" for brevity). Averments made in the petition revealed
that the services of petitioner had been interrupted by way of intermittent/artificial breaks given by
the respondent/department deliberately and as such breaks are required to be counted as
"continuous services" for the purposes of calculation of 160 days for the applicability of Section
25-B of the Act. The grievance of petitioner remains that respondent/department had terminated/
disengaged petitioner from daily wage service orally without issuing one month's notice in writing
stipulating therein reason for retrenchment besides no retrenchment compensation was paid to
petitioner when respondent had been illegally terminated. It is also alleged that respondent had not
followed the provisions of Section 25-F of the Act while disengaging petitioner from service. The
grievance of petitioner further revealed that during years 2003 to 2005, respondent/department had
disengaged the services of more than 500 daily waged workmen in different Divisions of HPPWD
and IPH. It is stated that it has came to the knowledge to the petitioner from reliable sources that
respondent/department had engaged more than 200 contractors during 2003 onwards. It is stated
that after termination of the services of petitioner, petitioner had approached the respondent time
and again but of no avail. The grievance of petitioner further remains that when the services of
petitioner had been terminated, respondent/department had reengaged number of new workman
from time to time and while doing so, respondent had not followed the principle of "Last come,
First go" envisaged under Section 25-G of the Act. It is further alleged that respondent/department
had continuously retained junior to petitioner who are still in service namely Jai Dass who
appointed in 1998, Tek Chand in 1999, Baldev in 2000, Amar Nath in 2000, Balak Chand in 2000,
Shyam Lal in 2000, Prakash Chand in 2001, Sucheta Ram in 2001, Trilok Chand in 2002, Hari in
2003, Hari Ram in 2003, Ram Dei in 2003 and Budhi Ram in 2003. The claimant/petitioner
claimed that he had spotless service record who never been charge-sheeted for any act of
indiscipline or negligence or his conduct and even at the time of verbal termination, no charge-
sheet had been served upon him and the at the same time, no opportunity of hearing had been
afforded to him. The petitioner also alleges that he has remained unemployed ever since his illegal
termination from year of 2004 till the date of institution of present claim petition who had been
nowhere gainfully employed and was thus entitled for full back wages. Feeling aggrieved the action
of respondent in terminating the services of petitioner an industrial dispute was raised vide demand
notice dated 02.6.2012 copy of the same was forwarded to Labour Officer, Chamba for further
necessary action. It is alleged that Labour Officer, Chamba could not resolve the dispute and failure
report under Section 12(4) of the Industrial Disputes Act and the matter was referred to appropriate
government i.e. Labour Commissioner, Shimla who declined to refer the case of petitioner for
adjudication in pursuance to which the petitioner had approached the Hon'ble High Court of H.P.
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by filing CWP no.129/2016 which had been decided on 22.2.2016 and order of the Labour
Commissioner, Shimla has been setting aside. Accordingly alleging respondent to have committed
violation of statutory provision of Section 25-F, Section 25-G and Section 25-H of the Industrial
Disputes Act, 1947 and thus petitioner prays for setting aside illegal termination of petitioner by the
respondent/department in September, 2004 as well as period of intermittent/fictional breaks
deliberately given time and again during entire service of petitioner between 1998 to 2004. He
further prayed for reinstatement in service along-with full back wages, seniority including
continuity in service and to any other relief petitioner is entitled.
4. The respondent contested claim petition, filed reply inter-alia taken preliminary
objections of maintainability, claim petition being bad on account of delay and laches. On merits
denied that petitioner had worked for more than 160 days in each calendar year rather clarified by
stating that petitioner was engaged as daily waged beldar in 1998 who remained engaged till 2004
but had worked intermittently as petitioner used to come and attend the work at his own sweet will
and convenience. Relying upon the mandays chart, it has been categorically pleaded by the
respondent that petitioner had not completed 160 days in each calendar year as required for tribal
area of Pangi Tehsil. The allegations of fictional breaks given by respondent to the petitioner have
been specifically denied. In so far as engagement of persons junior to petitioner mentioned in para
no. 4 of the claim petition were appointed as per order of Labour Court and no other juniors to the
petitioner had been retained in service by the respondent. It is further stated that name of person
Sham Lal and Gautam Singh had been engaged on harness case and as such there was no violation
of the principle of the Industrial Disputes Act, 1947. On the plea of termination of service of
petitioner, respondent specifically alleges that petitioner had left the job at his own will therefore
serving of notice or pay in lieu thereof was not required. Reiterating its stand respondent has
maintained that petitioner had left the work of his own sweet will and the persons mentioned in
para no.4 are stated to have engaged as per direction of the Labour Court-cum-Industrial Tribunal
Dharamshala and respondent had not violated the principle of "Last come, First go". It is also
contended that if petitioner had been terminated in 2004, he would have definitely raised industrial
dispute immediately and that after ten years petitioner is stated to be agitating the matter which is
bad on account of delay and laches. It is also contended that since the services of petitioner had not
been terminated by the respondent, question of issuance of notice or wages in lieu thereof did not
arise and at the same time, there was no necessity for charge-sheet or issuing any notice of
petitioner after his termination. It is contended that petitioner was agriculturist and gainfully
employed and was thus not entitled for back wages.
5. The petitioner filed rejoinder, reiterated his stand as maintained in the claim petition.
Further asserted that provisions of Limitation Act did not eclipse the claim of petitioner in totality
besides allegation of violation of principle of "Last come First go" was specifically denied.
6. In order to prove his case, petitioner had examined himself as PW1 tendered/proved
his affidavit Ex. PW1/A under Order 18 Rule 4 CPC, copy of seniority list Ex. PW1/B, copy of list
of workers Ex. PW1/C and closed evidence. On the other hand, repudiating the evidence led by the
petitioner, respondent examined RW1 Shri D.R. Chauhan, the then Executive Engineer, HPPWD
Division Killar as RW1 tendered/proved mandays chart of petitioner Ex. RW1/B, copy of mandays
of workers Ex. RW1/C and closed the evidence.
7. I have heard the ld. counsel of petitioner and ld. Dy. D.A. representing respondent,
gone through records of the case carefully relevant for disposed of this case.
8. From the contentions raised, following issues were framed on 30.08.2017 for
determination:
1. Whether the termination of services of petitioner by the respondent w.e.f. Sept., 2004
is/was illegal and unjustified as alleged?
...OPP.
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2. If issue no. 1 is proved in affirmative, to what service benefits the petitioner is entitled
to?
...OPP.
3. Whether the claim petition is not maintainable in the present form as alleged? ...OPR.
4. Whether the claim petition is bad on account of delay and laches on the part of
petitioner as alleged?
...OPR.
Relief.
9. For the reasons detailed here under, my findings on the above issues are as follows:—
Issue No.1 : Yes
Issue No.2 : Discussed
Issue No.3 : No
Issue No.4 : Discussed
Relief. : Petition is partly allowed awarding compensation of Rs.65,000/- per operative
part of award.
REASONS FOR FINDINGS
Issues No.1, 2 and 4
10. All these issues have been taken up together for discussion being interconnected which
can be disposed of simultaneously without repetition of evidence.
11. Relationship of petitioner having been engaged as daily waged beldar by respondent on
muster roll basis in the year 1998 continuously worked till September, 2004 with the respondent is
not in dispute. Admittedly, petitioner was engaged without any written order or settlement of terms
and conditions by the respondent. It is equally not in dispute that no written order was passed while
terminating service of the petitioner as claim of respondent remains that it had not retrenched
petitioner from service who had abandoned the job of his own and used to work intermittently as
per his own wish and convenience. Admittedly, the reference of appropriate govt. does not relate to
plea of fictional breaks but only with regard to petitioner's termination from service. In the
backdrop of foregoing admitted facts on record, claim of petitioner requires to be adjudicated with
a view to determine if petitioner is entitled for relief of reinstatement and back wages along-with
seniority and past service benefits and compensation as claimed by him.
12. Stepping into witness box as PW1 has sworn in affidavit Ex. PW1/A reiterating and
reaffirming his pleadings as stipulated in claim petition. In his affidavit he has claimed to have
worked with the respondent/department for more than 160 days in Pangi Sub Division Chamba
District and remained engaged from 1998 to September, 2004. He has also stated on oath that no
notice under Section 25-F of the Act was given by the respondent before terminating his service
and at the same time no compensation in lieu thereof notice period was paid to him and thus his
termination was illegal and void entitling petitioner benefit of reinstatement of service with full
back wages and all the other consequential service benefits. The petitioner has further alleged on
oath that respondent/department after terminating his services in September, 2004 by oral order had
engaged several co-workers who were junior to petitioner were retained in service. Not only this,
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the persons who were junior to petitioner are stated to have been regularized in service and thus
respondent had not followed the mandate of Sections 25-G and 25-H of the Act which was
obligatory on its part. The case of petitioner also remains that he had served respondent with due
diligence and had spotless service record as respondent/department had never called any
explanation or raised charge-sheet against him but even while retrenching petitioner from service,
no notice was given. The petitioner has also explained reason for not approaching the authorities
under Labour Act and thereafter before this Tribunal, as there existed no road between Chamba
town to Pangi Tehsil till 2012 and petitioner had moved before the Labour Officer raising demand
notice consequent upon which a failure report was submitted and as the Labour Commissioner did
not make reference for industrial dispute raised by petitioner, the petitioner had moved before the
Hon'ble High Court by filing CWP where direction was passed for making reference to the Labour
Court due to which delay had occurred and same was satisfactorily explained.
13. In so far as plea of abandonment raised by respondent is concerned, the same merits
rejection in view of the fact that respondent had failed to produce any record by which it could be
established that whenever petitioner absented from his duty as also reflected in mandays chart Ex.
RW1/B any notice or letter was ever issued. On this point respondent as RW1 has specifically
admitted that whenever petitioner abandoned the job, no notice had been issued. RW1 specifically
admitted that no departmental inquiry was initiated against petitioner even after September, 2004.
No reason whatsoever has been assigned for such any action or omission on the part of respondent
in not initiating any departmental proceedings or making correspondence calling upon the
petitioner to join service. This prima facie belies the stand taken by the respondent as abandonment
has to be proved like any other fact in issue. The petitioner, on the other hand, as PW1 in cross-
examination has specifically denied that he used to leave the job in between and attended the work
intermittently rather he has claimed that intermit breaks had been deliberately given to him by the
respondent in the service record of petitioner so that petitioner did not complete 160 days of work
as required for Pangi Tehsil area and also for applicability of Section 25-B of the Act. As such, in
absence of any specific and reliable evidence led by respondent, it would be unsafe to hold that
respondent had established plea of abandonment.
14. A bare glance on the mandays chart Ex. RW1/B would reveal that petitioner had
worked for 11 days in the year 1998, 28 days in 2000, 69 days in 2001, 88 days in 2002, 106 days
in 2003 and 101 days in 2004 and thus a total of his service in 1998 to 2004 in 06 years he had
worked for 403 days in his entire service period. Be it noticed that petitioner had not worked for
more than 160 days and as there is no reference from the Labour Commissioner, Shimla on the
point of artificial breaks, this court is to confine its findings only with regard to alleged illegal
termination. It is evident from mandays chart Ex. RW1/B that in the year 2004 the petitioner had
merely worked for 101 days and thus immediately in preceding 12 calendar months from the month
of termination of petitioner had not rendered service of 160 days. As such, the respondent is held to
have not violated the provisions of Section 25-F of the Act.
15. Ld. counsel/Authorized Representative for petitioner has contended with vehemence
that large number of workers who were junior to petitioner had been appointed and these workers
have been retained in service and regularized. The grievance of petitioner remains that principle of
"Last come First go" was not followed as the juniors were retained and services of petitioner
despite being senior was terminated without any valid reason. Ex. PW1/B is the year-wise
seniority/mandays of daily waged workers who were junior to the petitioner and had joined in the
year 1999 or thereafter. All of these co-workers shown in Ex. PW1/C the year-wise mandays
details of workers of Division HPPWD Killar were certainly junior to petitioner who were given
sufficient work existing in those years more than 200 days in a year whereas the petitioner had been
not given muster roll for the whole month. Ex. PW1/C also established that all the co-workers
shown in this document have worked for more than 160 days in most of the years although they
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were junior to petitioner. Evidently, there is no iota of evidence of respondent establishing that
petitioner was called upon to join for service at any time after September, 2004 even at the time
when junior persons were reengaged. That being so the respondent had certainly violated the
provisions of Section 25-G of the Act as the juniors workers mentioned in para no.4 of the affidavit
were retained whereas petitioner was senior from these co-workers having joined service in 1998
was terminated and even thereafter respondent omitted to afford opportunity to petitioner for
reemployment for work which also violates the provisions of Section 25-H of the Act. Ld. counsel
for petitioner has placed reliance upon judgment of Central Bank of India vs. S. Satyam, 1996 (5)
SCC 419 in which Hon'ble Apex Court has held that for the applicability of Section 25-G and 25-H
of the Act, there was no necessity of claimant/petitioner to have worked for 240 days as in case
of provisions of Section 25-F of the Act.
16. Ld. counsel for petitioner has contended that after petitioner's termination in
September, 2004, he had remained unemployed and was not earning anything thereafter as such
was entitled for full back wages. Repudiating the arguments of ld. counsel of petitioner, ld. Dy.
D.A. for the State has taken this court through cross-examination of the petitioner who has admitted
that he had cultivatable land with him and also worked a private labourer. Thus, plea of having
remained not gainfully employed gets belied admission of petitioner in crossexamination in which
he had maintained that he had been earning from agricultural land as well as he has been working
as daily wager privately. Reliance has been placed on the judgment of Hon'ble Apex Court North
East Karnataka Road Transport Corporation vs. M. Nagangouda (2007) 10 SCC 765 in which
Division Bench comprising of Justice A.R. Lakshmanan and Justice Altamas Kabir had held that
"term gainfully employment would also include self employment wherefrom income is
generated. It was income either from employment in an establishment or from self
employment merely differentiates the sources from which income is generated, the end use
being the same". Applying the ratio of judgment of 2007 (supra) to this case since the petitioner
was earning from his agricultural and manual pursuits, the same were sufficient to maintain him
and his family. It is thus held that petitioner was gainfully employed. Be it stated here that Hon'ble
Apex Court in Deepali Gundu Surwase's case has held that the Labour Court was not justified in
holding that merely because the respondent was receiving agriculture income, he cannot be treated
to be engaged in gainful employment. Since the petitioner had income from agriculture pursuits for
his livelihood it cannot be stated that petitioner was not gainfully employed and thus would not be
entitled full back wages. In view of the forgoing discussion, it is held that the relationship of
workman and employer existed between petitioner and respondent and that petitioner was illegally
retrenched without compliance of 25-G and Section 25-H of the Act although remained gainfully
employed after his retrenchment. Thus, applying the ratio of judgment of Hon'ble Apex Court
(2007 supra), it may not be erroneous to hold that petitioner was gainfully employed and thus
would be not entitled for back wages for the period he was out of job on being terminated by the
respondent.
17. Lastly, Ld. Dy. D.A. for State has contended with vehemence that there is inordinate
and explained delay which disentitles petitieonr relief claimed for by him. On the other hand, ld.
counsel for the petitioner has relied upon the judgment of Hon'ble Apex Court titled Raghubir
Singh vs. General Manager, Haryana Roadways, Hissar reported in 2014 Lab IC 4266 (SC)
and the relevant paras of the judgment are produced below for reference:
“12. Therefore, in our considered view, the observations made by this Court in the
Rajasthan State Agriculture Marketing Board case (supra) upon which the learned
Additional Advocate General for the State of Haryana has placed reliance cannot be
applied to the fact situation of the case on hand, for the reason that the Labour Court
has erroneously rejected the reference without judiciously considering all the relevant
factors of the case particularly the points of dispute referred to it and answered the 2nd
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issue regarding the reference being barred by limitation but not on the merits of the
case. The said decision has no application to the fact situation and also for the reason
the catena of decisions of this Court referred to supra, wherein this Court has
categorically held that the provisions of Limitation Act under Article 137 has no
application to make reference by the appropriate government to the Labour
Court/Industrial Tribunal for adjudication of existing industrial dispute between
workmen and the employer.
13. In the case on hand, no doubt there is a delay in raising the dispute by the
appellant; the Labour Court nevertheless has the power to mould the relief
accordingly. At the time of adjudication, if the dispute referred to the Labour
Court is not adjudicated by it, it does not mean that the dispute ceases to exist.
The appropriate government in exercise of its statutory power under Section 10(1)(c)
of the Act can refer the industrial dispute, between the parties, at any time, to either the
jurisdictional Labour Court/Industrial Tribunal as interpreted by this Court in the Avon
Services case referred to supra. Therefore, the State Government has rightly exercised
its power under Section 10(1)(c) of the Act and referred the points of dispute to the
Labour Court as the same are in accordance with the law laid down by this Court in
Avon Services & Sapan Kumar Pandit cases referred to supra.
14. Further, the workman cannot be denied to seek relief only on the ground of delay
in raising the dispute as held in the case of S.M. Nilajkar & Ors. v. Telecom
District Manager, Karnataka[4] it was held by this Court as follows—
“17. It was submitted on behalf of the respondent that on account of delay in raising
the dispute by the appellants the High Court was justified in denying relief to the
appellants. We cannot agree...... In Ratan Chandra Sammanta and Ors. v. Union of
India and Ors. (supra)1993 AIR SCW 2214, it was held that a casual labourer
retrenched by the employer deprives himself of remedy available in law by delay itself,
lapse of time results in losing the remedy and the right as well. The delay would
certainly be fatal if it has resulted in material evidence relevant to adjudication being
lost and rendered not available. However, we do not think that the delay in the case at
hand has been so culpable as to disentitle the appellants for any relief.....” (Emphasis
laid by the Court) In view of the legal principles laid down by this Court in the above
judgment, the reference of the industrial dispute made in the case on hand by the State
Government to the Labour Court to adjudicate the existing industrial dispute between
the parties was made within a reasonable time, considering the circumstances in which
the workman was placed, firstly, as there was a criminal case pending against his and
secondly, the respondent had assured the workman that he would be reinstated after his
acquittal from the criminal case. Moreover, it is reasonable to adjudicate the industrial
dispute in spite of the delay in raising and referring the matter, since there is no
mention of any loss or unavailability of material evidence due to the delay. Thus, we
do not consider the delay in raising the industrial dispute and referring the same to the
Labour Court for adjudication as gravely erroneous and it does not debar the workman
from claiming rightful relief from his employer.
15. In the case of Ajaib Singh vs. The Sirhind Co-operative Marketing-cum-Processing
Service Society Limited & Anr.[5] this Court has opined that relief cannot be denied to
the workman merely on the ground of delay, stating that:—
“10. It follows, therefore, that the provisions of Article 137 of the Schedule to
Limitation Act, 1963 are not applicable to the proceedings under the act and that the
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relief under it cannot be denied to the workman merely on the ground of delay. The
plea of delay if raised by the employer is required to be proved as a matter of fact by
showing the real prejudice and not as a merely hypothetical defence. No reference to
the labour court can be generally questioned on the ground of delay alone. Even in a
case where the delay in shown to be existing, the tribunal, labour court or board,
dealing with the case can appropriately mould the relief by declining to grant back
wages to the workman till the date he raised the demand regarding his illegal
retrenchment/ termination or dismissal. The Court may also in appropriate cases direct
the payment of part of the back wages instead of full back wages.....” (Emphasis laid
by the Court)
16. Hence, we are of the opinion, having regard to the fact and circumstances of the case
that there is no delay or laches on the part of the workman from the date of his
acquittal in the criminal case. Thereafter, upon failure of the respondent in adhering to
the assurance given to the workman that he would be reinstated after his acquittal from
the criminal case, the workman approached the conciliation officer and the State
Government to make a reference to the Labour Court for adjudication of the dispute
with regard to the order of dismissal passed by the respondent. Keeping in mind the
date of acquittal of the appellant and the date on which he approached the conciliation
officer by raising the dispute, since the respondent had not adhered to its assurance, the
State Government had rightly referred the dispute for its adjudication. Therefore it
cannot be said that there was a delay on the part of the appellant in raising the dispute
and getting it referred to the Labour Court by the State Government.
17. Further, the Labour Court on an erroneous assumption of law framed the
additional issue regarding the limitation in raising the dispute and its reference
by the State Government to the Labour Court. Thus, the Labour Court has ignored
the legal principles laid down by this Court in the cases referred to supra. The award
passed by the Labour Court was accepted erroneously by both the learned single Judge
and the Division Bench of the High Court by dismissing the Civil Writ Petition & the
Letters Patent Appeal without examining the case in its proper perspective, keeping in
view the power of the State Government under Section 10(1)(c) and the object and
intendment of the Act. Not adjudicating the existing industrial dispute on merits
between the parties referred to it may lead to disruption of industrial peace and
harmony, which is the foremost important aspect in Industrial Jurisprudence as the
same would affect the public interest at large.
18. Ld. Dy. D.A. representing respondent department has also contended with vehemence
that claim petition is barred by limitation on account of delay and laches. It has been pointed that
termination of petitioner in this case took place on 2004 and the industrial dispute was raised after
several years of retrenchment. Repudiating the argument by Ld. Counsel, Ld. AR for the petitioner
has placed reliance upon judgment reported in 2007 LHLJ 903 Hon'ble High Court of H.P.
(Bhatag Ram's case) in which it has been held that delay in raising dispute may be considered by
court at the time of granting final relief however in various other judgments even longer delay has
been condoned. In Divisional Manager, HPFC & another vs. Garibu Ram, Latest HLJ 2007
(HP) 1160, delay of more than 10 years was condoned besides Hon'ble High Court has held that
principle of Limitation Act is not applicable to the industrial dispute. Similar view was taken by
Hon'ble Apex Court in Ajayab Singh vs. Sirhind Co-operative Marketing-cum-Processing
Society Limited and Another, (1999) 6 SCC 82 in which it has been held that the principle of
Limitation Act, 1963 did not apply to the proceeding under the Industrial Disputes Act.
19. Relying upon the aforestated judgment, it has been contended that claim of petitioner
cannot be defeated on the point of delay and laches. Repudiating arguments advanced by ld.
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counsel for petitioner, Ld. Dy. D.A. has placed reliance upon the judgment of Hon'ble Apex Court
titled as Assistant Engineer, Rajasthan State Agriculture Marketing Board, Sub-Division
Kota and Mohan Lal [2013 (139) FLR 125], the relevant para of the judgment are produced
below for reference:
Industrial Disputes Act, 1947-Sections 25-F and 10- Limitation Act, 1963- Section 5-
Industrial dispute-Termination of service-Finding of Labour Court that workman had
completed 240 days in calendar year and her termination was in violation of Section
25-F of the I.D. Act-Wrokman worked from 1-11-1984 to 17-2-1986 in all 286 days
during employment. Her services terminated on 18-2-1986. Industrial dispute raised
after 6 years of termination. Admitted delay of 6 years not kept in view by the Labour
Court- Judicial discretion exercised by the Labour Court flawed and unsustainable.
Reinstatement of the workman not the appropriate relief. In lieu of reinstatement
compensation of Rs.one lac directed to be paid to the workman by the appellant
employer within six weeks failing which interest @ 9% p.a. will be payable. [Paras 21
and 22]
Limitation Act, 1963. Section 5-Industrial Disputes Act, 1947-Section 25-F-
Termination of service- Industrial dispute raised after six years- Limitation Act not
applicable to reference made under the I.D. Act-Delay in raising industrial
disputes definitely an important circumstances which the Labour Court must
keep in view before granting relief'.
20. Repudiating the arguments by Ld. Dy. D.A. for the State, Ld. Counsel for
claimant/petitioner has relied upon the judgment of Hon'ble Apex Court in case titled as Tapash
Kumar Paul vs. BSNL & another reported in AIR 2015 SC 357 wherein Hon'ble Court held that
a Court may pass an order of reinstatement by awarding compensation but the same has to be based
on justifiable grounds. In this judgment, it was held that compensation can be granted in a situation
where the industry is closed or that employees has superannuated or going to retire shortly and no
period is left to his credit or where workman has been rendered in capacitated to discharge duties
cannot be reinstated and/or fourthly when he has lost confidence of the management to discharge
duties. It was observed that there may be appropriate cases on facts which may justify substituting
an order of reinstatement by award of compensation but that has to be supported by some legal
and justifiable reasons indicating why the reinstatement should be followed to be substituted
by award of compensation. Ld. Counsel for the petitioner with the aid of above-said judgment had
argued that there are only four situations when a worker may be awarded compensation instead of
reinstatement but the judgment has certainly not been correctly appreciated by Ld. Counsel as this
judgment postulates probable four situations which are illustrate in nature where compensation may
be awarded instead of reinstatement but that does not mean that except the four grounds, no other
ground would be appropriate for awarding compensation. In the case in hand before this court, it
has come that petitioner had abandoned the job who did not report for duty for several years and
later gave notice requesting for joining of duties but the conditions in para No.5 of judgment (2015
supra) even if not met requirement, cannot be a ground to reinstate the petitioner and it is only
compensation which would be appropriate relief. Ld. Counsel for the petitioner has relied upon the
judgment of Hon'be Apex Court titled as Deepali Gundu Surwase vs. Kranti Junior Adhyapak
Mahavidyalaya (D.Ed.) and Ors. reported in AIR 2014 SC (Supp) 121, Raghubir Singh vs.
General Manager, Haryana Roadways, Hissar reported in 2014(3) Apex Court Judgments 652.
I have gone through these judgments and of view that they don't come to rescue the petitioner on
point of reinstatement instead of compensation. Ld. Dy. D.A. for State on the other hand has relied
upon the judgment of Hon'ble Apex Court in Vice Chancellor, Lucknow University, Lucknow,
Uttar Pradesh v. Akhilesh Kumar Khare & another reported in AIR 2015 SC 3473. It has been
contended that engagement of claimant/petitioner in this case was not through regular mode of
recruitment and applying the ratio of this judgment AIR 2015 SC supra, claim of petitioner for
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reinstatement can be negated and thus compensation would be sufficient for redressal of grievance
of the claimant/petitioner. Similarly, in 2016 (1) Him. L.R. 502 titled as State of Himachal
Pradesh and another vs. Chaman Singh relied by ld. AR for petitioner interpretation of Section
137 of Limitation Act was involved which provides that Article 137 of Limitation Act did not apply
to industrial disputes. In 2014 (3) Apex Court Judgment 652 (SC) similar view was reiterated
which clearly mandates that claimant/petitioner cannot be denied relief sought for merely on the
ground of delay and laches. That being so, the law remains as it was that ground of delay and
laches, claimant/petitioner cannot be denied relief rather the court has to consider various aspects
before moulding relief and the case in hand it would not be erroneous to mention here that the
claimant/petitioner can be reasonably indemnified by ordering compensation and not by
reinstatement. In so far as judgment of AIR 2015 SC 1373 titled as Mackinon Machenize &
Company Ltd. vs. Mackinon Employees Union is concerned, the Hon'ble Apex Court has held
on closure of unit of company principle of "Last come First go" was not followed which violated
Section 25-G of Industrial Disputes Act and retrenchment was held illegal entitling petitioner for
retrenchment compensation. Since the facts of case of Mackinon Machenize's case are different
from case in hand as in former closure of unit of company was involved whereas in case in hand
before this court, there is no closure of company rather it is the department of HPPWD which had
engaged petitioner without following of the procedure although subject to funds and availability of
work. As such, when there is no closure of any unit by respondent which the petitioner was
engaged, judgment of Mackinon Machenize cannot be made applicable.
21. After hearing the rival contentions of the parties and case law relied by them, it can be
safely concluded that delay in raising industrial dispute is certainly important aspect/circumstance
which court has to keep in mind while exercising discretion. In para Nos. 20 and 21 of the
judgment as referred to in this case reported in 2013 (136) FLR 893 (SC) titled as Assistant
Engineer Rajasthan Development Corporation and another vs. Geetam Singh provides that
before exercising its judicial discretion, the Labour Court or Tribunal has to keep in mind all
relevant factors including the mode and manner of appointment, nature of employment, length of
service, the ground on which termination has been set aside and delay in raising industrial dispute
before grant of relief. It was observed by the Hon'ble Apex Court in judgment (2013 supra) before
that workman had worked for 286 days and had raised industrial dispute in 1992 whereas her
services have been terminated in 1986 and she raised industrial dispute after six years. The Hon'ble
Apex Court has held that though compensation awarded by Single Judge of the Hon'ble High Court
was too low and liable to be enhanced by the Division Bench but surely reinstatement of the
workman in the facts and circumstances is not the appropriate relief and thus Hon'ble Apex
Court awarded a lump-sum of Rs.1 lakh along-with interest @ 9% per annum if the respondent
failed to make payment of compensation within six weeks from the date of judgment. In the case in
hand before this court factors which have weighed are that the petitioner in all remained engaged
for about 06 years and actually worked for 403 days as per mandays chart on record and that the
services of petitioner were disengaged in September, 2004 who worked as non skilled worker and
had raised industrial dispute by issuance of demand notice after about eight years i.e. demand
notice was given on 02-6-2012. Taking into consideration factors mentioned above in pursuance to
judgments of Hon'ble Apex Court referred to above, petitioner would not be entitled either for
reinstatement or for back wages but a lump-sum compensation would be appropriate relief in view
of judgment 2013 (139) FLR 25 (SC). The judgments relied upon by ld. counsel for petitioner on
the matter of delay and laches is more or less settled law that claim of the petitioner could not be
solely declined on the ground of delay and laches. Similarly, judgment of Hon'ble Apex Court in
2014 titled as Raghubir Singh's case also does not come to the rescue of the petitioner as in this
judgment also the Hon'ble Apex Court has reiterated the mandate as given by the Hon'ble Apex
Court in previous judgment in the year 2013 i.e. Assistant Engineer, Rajasthan State
Agriculture Marketing Board, Sub-Division Kota and Mohan Lal's case. I have gone through
these judgments which are not attracted in this present case as this court not declining relief to the
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petitioner on the ground of limitation rather on the basis of guidelines of Hon'ble Apex Court laid
down in judgment of 2013. Ld. Dy. D.A. representing State/respondents has relied upon the
judgment of Hon'ble Apex Court reported in AIR 2016 SC 2984 titled as Prabhakar v. Joint
Director Sericulture Department and another. I have gone through the judgment which deals
reference under Section 10 of the Industrial Disputes Act in which it has been held that Hon'ble
High Court can intervene in writ jurisdiction under Article 226 when reference has been challenged
on the ground of inordinate unexplained delay. Since the reference made by the Government in this
case is not in challenge before this Court, the above said judgment would not be attracted in the
facts and circumstances of the case. More so in view of observation qua facts made in judgment
(2016) supra, claimant/petitioner was found to be an educated person who was working as Clerk
whereas in case before this Court, the petitioner is an illiterate unskilled worker. For the above-said
reasons, plea of delay and laches would not eclipse claim of petitioner.
22. In view of foregoing discussion, a lump-sum compensation of Rs. 65,000 (Rupees
sixty five thousand only) would be an appropriate relief to which the petitioner is entitled in the
facts and circumstances of the case as stated above. It is further made clear that amount of
compensation shall be paid within four months from the date of receipt of Award failing which the
petitioner would be entitled for interest @ 9% per annum from date of Award till its realization.
Issues No. 1, 2 and 4 are answered accordingly.
Issue no. 3:
23. On the plea of non-maintainability of the claim petition under Section 10 of the
Industrial Disputes Act, Ld. Dy. D.A. representing respondent department has failed to allege in
reply in what manner petition is not maintainable. Thus, vague plea merits rejection outright.
Otherwise also, from pleadings and evidence on record, no inference of claim petition being not
maintainable could be raised against claimant/petitioner. This issue is decided in favour of
petitioner and against the respondent.
RELIEF
24. As sequel to my findings on foregoing issues, the respondent is hereby directed to pay
the compensation of Rs.65,000 (Rupees sixty five thousand only) to the petitioner in lieu of the
reinstatement back wages, seniority, past service benefits. Amount of compensation so awarded
will be paid by the respondent to the petitioner within four months from the date of receipt of
Award failing which the respondent shall be liable to pay the interest @ 9% per annum on the said
amount from the date of award till the date of its realization. In the peculiar circumstances of the
case, the parties are left to bear their own costs.
25. The reference is answered in the aforesaid terms.
26. A copy of this Award be sent to the appropriate Government for publication in the
official gazette.
27. File, after due completion be consigned to the Record Room.
Announced in the open Court today this 16th day of October, 2017.
Sd/-
(K. K. Sharma)
Presiding Judge,
Labour Court-cum-Industrial Tribunal,
Kangra at Dharamshala, H.P.
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IN THE COURT OF SHRI K. K. SHARMA, PRESIDING JUDGE, LABOUR COURT-
CUM-INDUSTRIAL TRIBUNAL, KANGRA AT DHARAMSHALA (H.P.)
(CAMP AT MANDI)
Ref. No.
: 157/2013
Date of Institution : 09-09-2013
Date of decision
: 27-10-2017
LPS Danik Wetan Bhogi Karamchari Sangh (BMS), Manali, District Kullu, H.P. through its
President
..Petitioner.
Versus
The Managing Director, Lahaul Potato Growers Co-operative Marketing-cum-Processing
Society Ltd., Manali, District Kullu, H.P.
..Respondent.
Reference under section 10 (1) of the Industrial Disputes Act, 1947
For the Petitioner
: Sh. N.L. Kaundal, AR
: Sh. Vijay Kaundal, Adv.
For the Respondent : Sh. Arvind Kapoor, Adv.
AWARD
1. The following reference has been received from the appropriate Government for
adjudication:
“Whether demand No. 1, 3, 4 & 6 raised by the LPS Danik Wetan Bhogi Karamchari
Sangh (BMS), Manali, Distt. Kullu, H.P. through its President, vide demand charter
dated-11-6-2012 (Copy-enclosed) before The Managing Director, Lahaul Potato
Growers Co-operative Marketing-cum-Processing Society, Manali, Distt. Kullu, H.P.
are legal and justified? If yes, what monetary and other reliefs the concerned workmen
are entitled to from the above employers?”
2. On receipt of reference from appropriate government, notices were issued to the parties
in pursuance to which petitioner/union has filed their statement of claim.
3. Averments made in the claim petition reveal that petitioner is a union having 22 daily
waged workmen as its members working in several business establishments of respondent which
had filed a charter of demand dated 11-6-2012 before respondent in which six demand had been
raised. It transpires from claim petition that respondent/society is a registered society with Registrar
Co-operative Societies, Govt. of H.P. which had been registered in the year 1966 headed by its
Managing Director who is competent to take decision in Board of Directors' meeting on behalf of
society concerning any staff qua termination/promotion, pay scale and other activities of
establishment of the society or for its benefits as per bye-laws and service rules and facilities to be
provided to its employees vide its resolution with approval of Registrar of Co-operative Society,
Govt. of H.P. It is further revealed from allegation as contained in the claim petition that Govt. of
H.P. through Department of Co-operation/Co-operative Society has been giving 95% grant-in-aid
to respondent for business activities and that respondent had several business activities such as
hotel Chandermukhi Guest House, Juice Factory and Juice Bar Centre, Petrol Pump Tandi,
Wholesale Karyana Shops, Uria Collection Centres, supply of high yielding varieties of seed
potatoes and sale of apples to the NAFED. It is alleged that petitioner union has been functioning to
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protect the interest of its daily wagers working in different establishments of the respondent which
had through its President has filed present claim petition preceded by conciliation proceedings
before Labour Officer-cum-Conciliation Officer qua its six demands as raised in demand charter on
11-6-2012 which were taken up before meeting of working committee of union held under
Chairmanship of Shri Sukh Ram, its President. It is alleged that union had raised several demands
out of which six demands vide separate charter had been conveyed to the respondent which were
not accepted and thereafter dispute was brought before the Labour Officer Kullu for conciliation
but the demands of union were finally not accepted by respondent due to which Labour Officer-
cum-Conciliation Kullu had consequently filed failure report under Section 12(4) of the Industrial
Disputes Act to appropriate government whereupon reference No.157/2013 was made to this court
for adjudication if demands in the charter of demand dated 11-6-2012 were legal and justified and
to what monetary relief workmen of union/petitioner were entitled to.
4. It is further alleged that respondent had appointed 27 employees at various posts such
as Managing Director, Accountant, Jr. Assistant, Clerks, Record Keeper, Drivers and Helpers in
regular pay scale as fixed by the Government of H.P. to its employees such as Basic Pay plus G.P.
+ D.A. and other allowances as applicable from time to time for which list was filed by petitioner
besides pay scales of Fifth Pay Commission to its employees by respondent however 22 daily
wagers of the union who had been working at different establishments including at Hotel
Chandermukhi since 1991 without any break have not been regularized who had also completed
240 days in calendar year. Averments made in claim petition further revealed that daily waged
workmen have their separate union other regular workmen and vide charter of demand dated
11-6-2012 raised, first demand raised was to provide a seniority list of regular and daily waged
employees whereas 2nd demand was not referred for adjudication. 3rd demand related to respondent
to not transfer daily waged workmen from District Kullu to another Districts of H.P. as at the time
of appointment of daily waged workmen neither any appointment letter was issued nor terms and
conditions were settled. 4th demand, however, related to regularization of daily waged workmen
after completion of 10 years regular service besides the union had prayed for releasing of arrears on
the basis of revised scales. It is further alleged that respondent had regularized 27 of its employees
aforestated from time to time in regular pay scale which had been approved by Registrar Co-
operative Society however 22 daily wage workers including eight daily wage workmen of Hotel
Chandermukhi and had completed 240 days in each calendar year besides 10 years of service were
not regularized. It is alleged that out of 22 employees referred to above as per separate annexure of
employees filed by Union/petitioner were clerk, salesman, driver, technician, housekeeping
supervisor, stewards, cook and assistant cook were entitled to pay scale w.e.f. 1-1-1996 Rs. 3120-
5160/- and revised pay scale w.e.f. 1-6-2006 Rs.5910-20200/- plus G.P., D.A. and other allowances
as applicable to similarly situated employees of respondent and another category of daily waged
workmen were helper, chowkidar and room boy who were entitled to pay scale of Rs. 2520-4140
plus G.P. and D.A. and other allowances w.e.f. 1st January, 1996 with initial start of Rs. 2620/- per
month and revised pay scale w.e.f. 1-1-2006 Rs.4900-10680/- +GP and DA and other allowances
applicable to similarly situated employees of respondent who had completed 10 years of service.
5th demand however related to payment of overtime to daily waged workmen, 6th demand related
to transfer order of Shri Rajan Sharma and Abhey Kumar from Kullu to Tandi and as such this
demand primarily related to not apply to transfer policy to daily waged workmen. Accordingly,
claimant/petitioner union for its 22 daily waged workmen has prayed for enforcing demands as
enumerated in charter of demand dated 11-6-2012 by respondent in particular regularization of
services of these 22 daily waged workmen who had completed 10 years of service having
completed 240 days in each year besides to pay difference of arrears alongwith interest 12% per
annum and to another relief claimant/petitioner union is found entitled.
5. The respondent contested petition, filed reply interalia taken preliminary objections
qua maintainability, claim petition being bad for nonjoinder and mis-joinder of necessary party,
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cause of action, locus standi and jurisdiction. On merits admitted that respondent is a society
registered with Registrar of Co-operative Society H.P. however denied that Managing Director is
head of the society rather it is General House of society which is head of society involved in major
decision of the society/respondent. Further admitted that Government of H.P. has share capital in
society which varies from year to year however denied that 95% grant-in-aid was being given by
State of H.P. to respondent. On merits claimed that due to poor financial health of society being in
losses, the demand raised for regularization could not have been accepted however rest of the
demands as stipulated in Charter of demands dated 11-6-2012 have been accepted much before. It
is emphatically denied that regular employees were being paid pay scales as per 5th Pay
Commission being paid to H.P. Govt. employees rather regular employees of respondent were
being paid scale much less as compared to employees of State of H.P. It is denied that workmen of
housekeeping, supervisor, steward, room boy, cook to be employee of respondent besides admitted
that respondent has owned Hotel Chandermukhi which has been on lease since 2004 and workmen
working in said hotel are employees of lease holder(s) and these employees being daily wagers
have been receiving salaries and other allowances from the lease holder of the hotel but denied that
these daily wagers had completed 240 days in each calendar year. It is claimed that seniority list of
both regular and daily wagers had been affixed on notice board of respondent/society and the same
were also supplied to the respondent at time of filing of reply. It is asserted that all the workmen
including the daily wage employees are transferred in interest of society however no terms and
conditions of their appointment has ever been changed.
6. With regard to demand No. 4 concerning regularization of daily waged workmen of
petitioner/union, it is maintained that employees of respondent were regularized earlier in due
course of time according to requirement of management and financial conditions of society. It is
further claimed that present daily wagers had been appointed as per requirement of work who
cannot be regularized merely by reason of continuance of service for several years specifically
when the financial condition of society was not well and was unhealthy. It was, however,
specifically admitted that as and when financial position of the society would improve and as per
requirement, the daily wagers will be regularized as per provisions of Constitution and Rule of the
Society besides maintained that no Govt. policy was applicable to society. It is further stated that
workmen were not appointed as per norms existing at that time. With regard to payment of
overtime to workmen, it is alleged that these workers who had worked overtime have been given
overtime to their satisfaction and that S/Sh. Mahshwar Singh and Rajender Kumar had been duly
paid their wages and overtime as per record annexed. In so far as S/Sh. Rajan Sharma and Abhay
Kumar are concerned they were found guilty of willful absenteeism from duties, disobedience and
negligence besides they had misappropriated the cash of society against which recovery
proceedings were pending. It is also stated that these workmen had initiated proceedings before
Labour Inspector as well as before Registrar Co-operative Societies on the same cause of action
and as such they could not claim any relief with the present claim petition. Accordingly, while
praying for dismissal of claim petition, it is contended that petitioner union is not entitled to any
relief.
7. The petitioner/claimant filed rejoinder, reiterated its stand as maintained in claim
petition. It is stated that union/claimant petitioner is unregistered union but its President had been
authorized by members of the union to pursue their case. With regard to 95% grant-in-aid by Govt.
of H.P., it is alleged that respondent had not submitted/mentioned the share capital of State Govt.
and also not submitted any document alongwith reply. With regard to 22 employees of union, they
were stated to be working in different establishments but they had never been given any
appointment letter and had not prepared any mandays chart revealing attendance. Accordingly,
reiterating their stand as maintained in claim petition, the claimant/petitioner has prayed for grant
of relief as prayed in the claim petition.
8. To prove its case, petitioner/union had examined Shri Sukh Ram, President, LPS
Danik Wetan Bhogi, Karamchari Sangh (BMS) Manali as PW1 tendered/proved his affidavit Ex.
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PW1/A under Order 18 Rule 4 CPC, demand notice dated 11-6-2012 Ex. PW1/B, copy of pay scale
w.e.f. 1-1-2011 to 30-6-2011 Ex. PW1/C, copy of resolution dated 15-9-2011 Ex. PW1/D, copy of
list of union members EX. PW1/E, copy of letter dated 6-3-2002 with copy of pay scale Ex.
PW1/F, copy of registration of society in May 1966 Ex. PW1/G, copy of karamchari list of hotel
Chandermukhi Ex. PW1/H, copy of application regarding regularization dated 17-9-2010 Ex.
PW1/I, copy of letter No. 435 dated 11-11-2010 Ex. PW1/J, copy of office order dated 20-10-2011
Ex. PW1/K, copy of letter dated 24-6-2011 Ex. PW1/L, copy of letter dated 24-5-2012 Ex. PW1/M,
copy of registration of hotel Chandermukhi dated 25-11-2006 Ex. PW1/N, copy of balance sheet
dated 31-3-2014 Ex. PW1/O, copy of Award dated 29-11-2010 Ex. PX1, copy of EPF list of staff
LPS Hotel Chandermukhi Ex. PX/2. Shri Rajan Sharma, Secretary, LPS Danik Wetan Bhogi
Karamchari Sangh has examined as PW2, tendered/proved proceedings dated 15-4-2012 Ex.
PW2/A and closed evidence. On the other hand, repudiating the evidence led by petitioner,
respondent had examined Shri A.C. Dogra, Managing Director, Lahaul Potato Growers
Cooperative Marketing-cum-Processing Society Ltd. Manali as RW1 tendered/proved Bye-laws of
society Ex. R-1, copy of service rules Ex. R-2, copy of EPF list of staff LPS hotel Chandermukhi
Ex. R3 and Ex. R4, copy of certificate of registration of society Ex. RW1/B, amended service rules
Ex. RW1/C and Ex. RW1/D, copy of balance sheet Exs. RW1/E1 to E3, copy of detail of
accumulated loss of LPS Ex. RW1/F, copy of office order dated 22-7-2010 Ex. RW1/G, copy of
corrigendum dated 19-9-2012 Ex. RW1/H, copy of letter dated 8-8-2013 Ex. RW1/I, copy of
agreement Ex. RW1/J, copy of letter dated 18-6-2012 Ex. RW1/K, copy of letter dated 19.7.2013
Ex. RW1/L, copy of letter dated 13-5-2013 Ex. RW1/M, copy of letter dated 19-7-2013 Ex.
RW1/N, copy of letter dated 11-6-2009 Ex. RW1/O, copy of letter dated 30-12-2009 Ex. RW1/P,
copy of balance sheet as on 31-3-2014 Ex. RW1/Q, copy of day book Ex. RW1/V1 to Ex.
RW1/V7, copy of agreement Ex. RW1/U1 to Ex. RW1/U5, copy of Award dated 29-11-2010,
Mark-A copy of newspaper cutting. The respondent has examined one Shri Makhan Singh Rana,
Lease holder of Hotel Chandermukhi, Manali as RW2, tendered/proved copy of EPF list of staff of
hotel Chandermukhi Ex. RW2/B and closed evidence.
9. I have heard the Authorized Representative/counsel representing petitioner and Ld.
counsel for respondent, gone through records of the case carefully.
10. From the contentions raised, following issues were framed on 09-7-2014 for
determination:
1. Whether demands No.1, 3, 4 and 6 raised by the L.P.S. Danik Wetan Bhogi
Karamchari Sangh, Manali before the Managing Director, Lahaul Potato Growers Co-
operative Marketing-cum-Processing Society Ltd. Manali are legal and justified?
...OPP.
2. If issue no.1 is proved in affirmative, as to what benefits and other relief to the
petitioner are entitled to?
...OPP.
3. Whether the petition is not maintainable in the present form?
...OPR.
4. Whether the petitioner Karamchari Sangh has no locus standi to file the petition?
...OPR.
5. Whether this Tribunal has no jurisdiction to entertain the petition as alleged?
...OPR.
6. Whether the petition is bad for non-joinder and mis-joinder of the necessary parties?
...OPR.
7. Whether the petitioner has no cause of action to file the petition as alleged?
...OPR.
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8. Whether the petition is not instituted as per the mandatory provisions of law? ...OPR.
9. Relief.
11. For the reasons to be recorded hereinafter while discussing the aforesaid issues, my
findings on the aforesaid issues are as follows:
Issue No.1 : Yes, with regard demand No.4 qua regularization
Issue No.2 : Discussed
Issue No.3 : No
Issue No.4 : No
Issue No.5 : No
Issue No.6 :No
Issue No.7 :No
Issue No.8 :No
Relief : Claim petition is partly allowed per operative part of the Award.
REASONS FOR FINDINGS
Issues no. 1, 2 and 7 :
12. All these issues have been taken up together for discussion being interconnected which
can be disposed of simultaneously without repetition of evidence.
13. At the outset, it is apt to mention here that Ld. Authorized Representative Shri N.L.
Kaundal on behalf of claimant petitioner/union of daily waged workmen has made statement before
this court on 31-8-2017 that LPS Danik Wetan Bhogi Karamchari Sangh does not press its
demands No. 1, 3 and 6 as stipulated in Ex. PW1/B the charter of demand dated 11-6-2012 (Ex.
PW1/A) of the union and has thus prayed for relief only with regard to demand No. 4 concerning
regularization of 22 daily wage workmen of respondent who are also members of petitioner/union.
It is most pertinent to mention here that all the 22 daily waged workmen of union have been shown
in list Ex. PW1/E revealing their names, designation, months and years since when they have been
working with respondent. Be it noticed that Ld. Counsel for respondent has not at all cross
examined petitioner qua list of union members Ex. PW1/E of claimant which necessarily
establishes that respondent does not dispute correctness of details of employees/daily wage
workmen as mentioned therein. It further necessarily follows that these daily wage workmen have
also been working since 1991 to 2001 and till the date of reference from appropriate govt. for
adjudication and on the date of Charter of demands dated 11-6-2012 Ex. PW1/B all the daily
wagers had completed more than 10 years regular service with respondent and before raising their
demands an application dated 11-11-2010 Ex. PW1/J had been moved by eight daily waged
workmen of Hotel Chandermukhi before respondent for their regularization in service.
14. RW1 Shri A.C. Dogra, the Managing Director of the society has in unambiguous terms
in cross-examination has admitted that there was no policy for regularization made by respondent
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rather workmen were regularized considering financial position of the respondent/society. Be it
noticed that in its reply, respondent has not taken any other defence except that financial
health/condition of the society/respondent which was stated to be prime criteria for regularization
and nothing has been pleaded regarding availability of sanctioned post on which these daily waged
workmen could be regularized or had been regularized earlier which goes to show that in absence
of any policy for regularization of respondent as admitted by RW1 and also without availability of
sanctioned regular post(s), the respondent could decide to regularize of service of workmen at any
point of time taking into consideration the financial condition of society and it was not necessary
that workmen should have put specific minimum number of years of service. Even Bye-law (Ex.
R1) and Service Rules (Ex. R2) which got approval of Assistant Registrar Co-operative Society on
18-7-1990 nowhere stipulated about regularization of workmen except that certain conditions had
been provided in Appendix Ex. R1 which merely provided criteria for direct recruitment and for
promotion. This Appendix clearly provided that for promotion workmen needed to have minimum
five years experience for the post of serial No. 1 to 6 however serial No.7 dealt with post of peon,
chowkidar, conductor, driver who should have minimum experience of three years required for
direct recruitment which does not deal with promotion. It is pertinent to mention here members of
claimant/petitioner as shown in Ex. PW1/E are driver, clerk, salesman, helper, chowkidar, steward,
room boy, cook and assistant cook, technician, supervisor, housekeeping whereas Ex. R10
produced by respondent showed only 11 daily wage employees although list of union shows that it
had 22 daily wages employees. Be it stated that RW1 Shri A.C. Dogra, has admitted that Ex. R2
Service Rules dealt with only two categories of employees namely permanent and temporary
employees besides he has specifically admitted in cross-examination that the members of
union/petitioner were also temporary employees. Rule 5 (d) of Service Rules Ex. R2 is in
consonance with the version of RW1 Shri A.C. Dogra who has admitted in cross examination that
members of union also fell in the category of temporary employees.
15. Stepping into witness box as PW1 Shri Sukh Ram, President of union of daily wagers
has sworn in affidavit Ex. PW1/A reiterating stand of union/petitioner, as maintained in the claim
petition. In cross-examination, he has admitted that the union was not registered but he had been
authorized by union to conduct the case. PW1 has also admitted that scales provided in Ex. R1 and
R2 were different from the government scales besides admitted that basic pay and scales of regular
employees were different and scales which were given to daily wage, adhoc and contract
employees were different from regular employee. In his affidavit, said Sukh Ram has prayed for
regularization of daily wagers in view of judgment of Mool Raj Upadhayay of Hon'ble Apex Court
besides has prayed for payment of arrears consequent upon regularization of daily waged workers
after 10 years regular service as claimed. He has specifically stated that employees enumerated in
Annexure P2 exhibited as Ex. PW1/C had been given pay scales of 5th Pay Commission as given to
govt. employees in H.P. by respondent and these scales of different categories of employees have
been shown in Ex. PW1/D but daily waged workmen as shown in Ex PW1/E working since 1991
onwards have neither been regularized nor given benefit of Fifth Pay Commission irrespective of
fact that decision to implement 5th Pay Commission could be implemented in 2011 as is evident
from Ex. PW1/C. From the testimony of petitioner and cross-examination of respondent, it is
established that eight daily waged workmen had been working with the Hotel Chandermukhi out of
22 union members, were infact engaged by respondent prior to 2004 as Hotel Chandermukhi was
leased out for the first time in 2004 as the list of daily wage workmen shown in Ex. PW/1/E
revealed that all the employees mentioned therein had been engaged prior to 2004. It necessary
follows that these daily waged workmen were employed by respondent considering exigency of
work without settling their terms and conditions of appointment or issuing any letter of
appointment to them.
16. Ld. Authorized Representative for petitioner/union has contended that even if these
union members of claimant were working as daily wage workmen certainly EPF contribution was
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deposited by the management of respondent. It is pointed out that at present Sh. Makhan Singh
(RW2) has taken Hotel on lease vide agreement Ex. RW1/U dated 30-5-2015 for three years i.e. till
18-5-2018 and prior to it, he had taken on lease vide agreement Ex. RW1/U3 dated 19-5-2009.
Although RW2 Sh. Makhan Singh made futile attempt to say that all the eight daily waged
workmen were his employees and that salary & EPF and other benefits to these workmen of Hotel
Chandermukhi were being paid by him but RW1 has contradicted by admitting that management of
respondent was paying EPF of Hotel Chandermukhi. Be it stated RW2 has admitted in
crossexamination that he had not taken any licence from Labour Office to run the hotel on lease
which goes to show that provision of Section 12 of Contract (Labour & Abolition) Act, 1970 had
not been complied with in view of judgment referred in 2010 LLR 1165 in which Hon'ble Court
has clearly held that since contractor did not hold a valid licence as contemplated under Section 12
of the Act 1970 aforestated the workmen as engaged would be presumed to be employee of
Principal Employer and not of contractor and in case of termination, workmen would be entitled for
reinstatement.
“Contract Labour (Regulation and Abolition) Act, 1970-Section 12. Licensing of contractor.
Absence of licence for engaging personnel on security duty. Consequences of.”
A bare glance at the judgment aforestated would reveal that if the contractor did not obtain
valid licence as provided under Section 12 of Regulation and Abolition Act, 1970 a workman
engaged would be presumed to be employee of the Principal Employer even if engaged by
contractor who did not obtain licence as stated above. With the aid of this judgment, it has been
contended that since RW2 Makhan Singh has admitted to have not obtained any licence from
Labour Office to run hotel while taking Hotel & Guest House on lease , it would be presumed that
respondent society is the Principal Employer of all workmen engaged by contractor in Hotel &
Guest House. It has also come in the testimony of RW1 Shri A.C. Dogra in cross-examination that
RW2 Makhan Singh did not have any EPF account besides RW1 has also admitted that EPF
contribution of daily waged workmen of Hotel Chandermukhi was deposited by respondent which
also leads irresistible inference that respondent society is Principal Employer of eight employees of
Hotel Chandermukhi and mere fact that document regarding EPF contribution was signed by RW2
does not establish that EPF contribution of daily waged workmen who were eight in number of
Hotel Chandermukhi was factually paid by RW2 particularly when RW1 has admitted that EPF of
daily wage workmen was paid by management of respondent. In view of foregoing discussion, it
can be safely concluded that all the eight daily waged workmen out of 22 workmen as reflected in
Ex. PW1/E had been engaged by respondent much before 2004 when the Hotel was leased out for
the first time as correctness of the list of daily wagers Ex. PW1/E has not been disputed by the
respondent while cross-examining petitioner as stated above establishing that respondent society is
Principal Employer of all eight workmen. Although it was not established specifically where
remaining 14 daily waged workmen were deployed in the establishments of respondent/society but
it has come in the evidence that there existed more than 10 establishments of respondent/society
and thus working of 14 daily wage workmen to have been working in different establishments is
not ruled out. Be it noticed that it has been denied by the respondent that 22 daily wage workmen
were not workmen of respondent rather it made futile attempt to prove that 8 daily wage workmen
were employee of RW2 who had taken Hotel Chandermukhi on lease but nothing has been stated
about remaining 14 daily wage workmen clearly show falsity of plea so taken by respondent. It has
come the evidence that the daily waged workmen had been appointed without issuing any letter of
appointment(s) to them by respondent. However, it has been satisfactorily proved that these daily
waged workmen have rendered more 10 years of service besides they had also completed 240 days
in each calendar year particularly when respondent has not produced any record qua attendance or
mandays chart of these daily wage workmen to controvert the allegation of claimant/Union on the
point of these 22 workmen to have worked less than 240 days. As such, this court is left with no
option but to hold that all the daily wage 22 workmen as shown in Ex. PW1/E had worked for 240
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days in each calendar year and had rendered more than 10 years of services to respondent and for
said reason, it is also to be held that while recruiting these daily waged workmen requisite
qualification & experience of these workmen had been taken into consideration by respondent
moreso when these daily wage workmen have by now worked for such a long time with
respondent.
17. Ld. Authorized Representative for petitioner union had relied upon the judgment of
Hon'ble Apex Court titled as Umrala Gram Panchayat vs. The Secretary, Municipal
Employees' Union & Ors. reported in 2015 LLR 449 in which Hon'ble Apex Court has held that
it was appropriate to treat the services of the daily wagers as permanent after 5 years of their initial
appointment till their superannuation. The relevant para of this judgment reproduced below for
reference:—
“Regularization. Daily-wagers. When justified. Workmen had completed services from
5 years to 18 years as daily-wagers as Safai Kamdars. They were not being paid wages,
allowances and other benefits equal to permanent Safai Kamdars. Workmen raised an
industrial dispute for their regularization. Conciliation process ended in failure. Labour
Court directed the Management to pay wages, allowances and benefits to the workmen for
which they are legally entitled. Management challenged the Award by filing writ petition
which was dismissed by the learned Single Judge. Writ appeal filed by the Management did
not succeed. Management filed appeal in Supreme Court. Held, work being performed by
the workmen, working hours were same. Discrepancy in wages of permanent and non-
permanent workmen is alarming. Work being performed by the workmen is of
permanent nature. There is no restriction for recruitment of workmen as daily-wagers.
Management of Panchayat would have no difficulty to bear the extra cost towards wages
and other benefits since there are no financial unsoundness with the Management. Hence, it
is appropriate to treat the services of the daily wagers as permanent after 5 years of
their initial appointment till their age of superannuation. Workmen be paid regular
pay-scale as per revised pay-scale. Appeal is disposed of accordingly. Paras 10 to 12 and
17 to 19.
It has been observed by the Hon'ble Apex Court in the aforestated judgment that
discrepancies of wages between daily wager having rendered service of 5 years or more &
permanent workmen is not permissible in law. It has been clearly held that regularizing a
daily wager after completion of 5 years continuous service was justified and with paying
less wages and other benefits to daily wagers in comparison to permanent employee,
tentamounts a practicing, unfair labour practice' which also amounts to violation of
principle of 'equal work, equal pay'. Although RW1 Shri A.C. Dogra, Managing Director of
the respondent had denied in cross-examination to be recoursing to unfair labour practice
but apparently daily wage workmen who have been working for more than 10 years with
respondent are getting insignificant salary to those permanent employees in the same post
and cadre. Not only this PW1 Sukh Ram, President had been terminated from service while
working with the respondent and before that he was given break in service and my Ld.
predecessor in this Court vide Award dated 29-11-2010 Ex. PX1 has held that respondent in
giving break and terminating said Sukh Ram had been held to have practiced 'unfair
labour practice' as has been observed in para No. 27 of the Award Ex. PX1 which is quite
material and reflected working of the respondent/society. It may be stated that said Sukh
Ram who had been given short break in his service and was terminated was infact present
President of union who has instituted the present claim petition against respondent.
18. Ld. Authorized Representative has argued that observation made in Umrala Gram
Panchayat's case (supra) has further been followed in case titled as ONGC Ltd. and Petroleum
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Labour Union and Ors. reported in 2015 (146) FLR 443 and in 2014 (142) FLR 987. Reliance
has further been placed by petitioner upon judgment titled as HP State Industrial Development
Corporation Ltd. and Rajesh Kumar Kashyap in which Hon'ble High Court of H.P. (DB) has
held that a model employer is under an obligation to conduct itself with high probity and
expected candour. In the case in hand, respondent has under the garb of its poor financial
condition is denying legitimate rights. In CWP No.5318/2013 decided on 8-5-2015 titled as Seema
Mehta vs. Chairman-cum-Deputy Commissioner and Anr. in which claimant/petitioner was not
regularized for 26 years and the Hon'ble High Court of H.P. had held that non-regularization of its
employees who had been working 26 years could not be denied as employee of State Govt. are
regularized after seven years of service. In another judgment reported in 2017 (154) FLR 739 titled
as Executive Engineer, Maharashtra State Electricity Board and Sunil Shantram Satakar
Hon'ble Apex Court has held as under in its judgment & relevant para is reproduced below:
“Regularization. Reinstatement. Permanency in Class-IV. Respondent has been working
as daily wager for last more than 25 years. In case any such workmen have been made
permanent there is no justification in denying a similar treatment to respondent.
Appellants are directed to consider the cases of respondents and grant similar treatment to
such similarly situated workmen.
[Para 3]
19. Ld. counsel for respondent, on the other hand relied upon the judgment reported in
2016 (1) Him. L.R. (DB) 457 titled as Vijay Sood vs. Central University of HP Dharamshala
and connected matters AIR 1994 SC 1638, AIR 1995 SC 2325, AIR 2007 SC 2733. I have gone
through these judgment which are not at all attracted in the present case having different facts and
controversies involved. Otherwise also, in view of the latest judgments of Hon'ble Apex Court
pertaining to year 2015 relied upon by the petitioner, the judgment relied upon by the respondent
would not apply in the present case. Be it noticed that judgments reported in AIR 1994 SC 1638,
AIR 1995 SC 2325, AIR 2007 SC 2733 dealt with regularization of employees could be done only
when there existed sanctioned regular post. It is pertinent to mention here that respondent in its
reply has nowhere taken such defence for not regularizing daily waged workmen due to
nonavailability of sanctioned regular post(s) rather it had emphasized only on poor financial
condition of respondent and it was also maintained in reply that as and when the financial
condition of the respondent society would improve, in that eventually respondent would
consider regularization of 22 employees of union subject to bye-laws and service rules of
respondent/society. Despite assurance of respondent as stated above, fate of 22 daily wagers
cannot be left at the mercy of respondent who have rendered more than 10 years regular service as
stated above moreso when similarly situated workmen were given scales of 5th Pay Commission
long before as to 27 employees as reflected in Ex. PW1/C and scales shown in Ex. PW1/D were
accepted and given to employees of respondent.
20. In so far as poor financial position of respondent is concerned, balance sheet pertaining
to the year 2014 Ex. RW1/Q has been relied by respondent which showed profit of respondent of
Rs. 2.04 crores and that loss of Rs. 27.40 crores had been brought forward. Ld. Authorized
Representative for petitioner has contended with vehemence that the loss of Rs.27.40 crores which
has been brought forward in the year 2014 from several previous years could not be stated to have
caused in preceding three years rather it might have been carried forward from last several years
even when the 27 employees as reflected in Ex. PW1/C were regularized and given new scales in
pursuance to resolution No.6 dated 18-2-2002 Ex. PW1/F. It may not be erroneous to mention here
that respondent has nowhere proved the years from which this loss of 27.40 crores had been carried
forward. RW1 Shri A.C. Dogra has not thrown in light upon the said financial loss of Rs.27.40
crores and period from which this loss has been originally carried forward and thus it cannot be
stated to have occurred when present claim petition was filed. Even 5th Pay Commissioner to State
Govt. was adopted for employees of respondent on the basis of resolution No.6 dated 15-9-2011.
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RW1 Sh. A.C. Dogra has not whispered even a single word about the period for which financial
loss related. As such under the garb of poor financial condition of society/respondent, the daily
waged workmen of petitioner union were not given their legitimate rights as stated above. In view
of the foregoing, the union members who are daily wagers are liable to be regularized as well as are
held entitled to be paid new scales as reflected in Ex. PW1/D and adopted by respondent for its
employees.
21. Ex. R2 relied upon respondent showed cadre of service at page 3 showing pay scale of
employees at serial No.8 who are clerks, drivers, salesmen whereas serial No.9 showed scales of
peon, chowkidar and conductor. Be it noticed that it is specifically provided in notification that pay
scales would also be applicable to temporary staff enforceable on 1-5-1987. RW1 has specifically
admitted that daily wagers who have raised this industrial dispute are temporary employees thus
establishes the claim of daily wagers who were entitled for scales as referred to above. It also
provided in Ex. R2 that society might consider revision of pay at its own keeping in view financial
position of society. Not only this, RW1 has shown ignorance if employees mentioned at serial No.9
to 15 as shows in Ex. R9 were regularized after five years besides he did not know about their
scales. RW1 A.C. Dogra despite being Managing Director of the society shown ignorance if
employees at serial No. 9 to 15 had been regularized after five years of service which shows that
respondent through RW1 was withholding and suppressing material facts to defeat claim of
petitioner who has 22 daily waged workmen and had completed 10 years of regular service whereas
it appears that some of the employees figured at serial No.9 to 15 had been regularized even after
five years particularly when this fact has not been specifically denied by RW1. Thus, the facts
reveald by RW1 A.C. Dogra further strengthen the plea of petitioner union qua regularization of
daily waged workmen who have rendered 10 years of continuous service as has been claimed by
petitioner.
22. In so far as claim of the claimant/petitioner for revised scales and difference of arrears
are concerned, it would be pertinent to refer to para no. (iv) (i) of claim petition which is
reproduced verbatim:
“…Clerks, salesman, driver, technician, housekeeping supervisor, stewards, cook and
assistant cook in pay scale 01-01-1996 Rs.3120-5160/- and revised pay scale w.e.f. 1-1-
2006 Rs.5910-20200/- + G.P. and D.A. and other allowances as applicable to similar
situated employees of the respondent and the category of helper, chowkidar and room boy
are entitled the pay scale w.e.f. 1-1-1996 Rs.2520-4140/- initial start Rs. 2620/- per month
and revised pay scale w.e.f. 1-1-2006 Rs.4900-10680/- +G.P. and D.A. and other
allowances applicable to similar situated employees of the respondent from time to time
and all are entitled arrears after completion of 10 years of continuous service as per the
policy framed by the State Govt. and adopted by respondent….”
Although petitioner in cross-examination as PW1 had admitted that according to
constitution and service rules, the scales of employees of respondent are different from those being
paid to government employees but in such like situation, it was incumbent upon the respondent to
have specifically prove on record that actually employees of respondent were getting lesser scales
as compared to those employees working with HP Govt. which has not been brought in evidence by
respondent. Ld. Authorized Representative for petitioner has referred to fitment chart of employees
of respondent as on 1-01-2011 to 30-6-2011 which showed that the clerks had been given pay scale
of Rs. 5910-20200/- whereas these scales were also given to driver, daftri as well as to Junior
Assistant. It is further observed that Accountants, Field Asstt., Public Relation Asstt. figuring at
serial No. 4 of fitment chart given scale of Rs.10300-34800/- and Managing Director too was given
same scale. Ex. PW1/D 5th pay commission of employees of respondent, it had been sanctioned by
Managing Committee of society vide its resolution dated 15-9-2011. Ex. PW1/D showing various
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categories of employees their revised scale, basic pay, revised pay scale revised basic pay and serial
as mentioned in the fitment table. It has nowhere come in the evidence as to what scales were
actually being given to employees of the H.P. Govt. and it was necessary for the respondent to have
proved so on record as to how much less salaries etc. were paid to 27 employees as shown in Ex.
PW1/C. In absence of the same, it would be unsafe to hold that employees of respondent were
getting lesser salary and mere statement of RW1 on oath not supported with any documentary
evidence cannot be accepted so as to defeat the claim of Union qua its members on this score. Ld.
counsel for the respondent has relied upon Ex. PW1/F dealing with approval of amendment in pay
rolls of the society. Minor scrutiny of this document dated 11-8-2002 presided over by Shri
Surender Thakur revealed that resolution was passed in which recommendations of 5th pay
commission were specifically accepted by society/respondent. It further provided that all the
employees were to be given scales from 1-1-1993 and were also to be given Assured Carrier
Progression Scale after completion of 8 years, 16 years and 24 years of service respectively. This
document establishes the plea of petitioner that infact the respondent accepted 5th pay commission
although these recommendations of 5th pay commission could be finally implemented in the year
2011. Thus, testimony of RW1 A.C. Dogra that the employees of respondent were getting less
salary from the government employees could not be accepted and this court is left with no option
but to hold that revised pay scale paid to 27 employees of respondent as reflected in Ex. PW1/C as
well as revised pay scale as reflected in Ex. PW1/D would also be applicable to daily wagers of
union. It is also unexplained that under what circumstances these 27 employees had been given
revised pay scale when the financial conditions of the respondent/society was not good or financial
health was in poor condition as claimed by it as some part of loss of 24.40 crores as reflected in
balance sheet Ex. RW1/Q brought back from the previous year existed when resolution no.6 dated
15-9-2011 was passed vide which revised pay scales had been given to all 27 employees of
respondent as stated before. Thus, under the garb of poor financial health respondent is deliberately
ignoring legitimate rights of claimant/petitioner and its union members who were entitled for same
scales as had been reflected in Ex. PW1/D on record. Accordingly, the 22 daily wagers who are
members of Union/claimant are required to be regularized after completion of 10 years continuous
service and are also entitled for arrears as discussed above. Since the claimant/petitioner has
successfully established their claim qua demand No.4 of the charter of demands Ex. PW1/B as
discussed in foregoing paras, it cannot be stated that petitioners did not have cause of action to file
the petition. Since demands No.1, 3 and 6 had not been pressed by Ld. Authorized Representative
of the petitioner union as stated above as such demands No. 1, 3, 6 as mentioned in reference
no.157/13 received from appropriate govt. are decided unpressed and this court has only dealt with
demand No. 4 of reference aforestated with regard to regularization of all the 22 daily wage
workmen of union/petitioner and entitlement of revised pay scales and payment of arrears on
account of difference in basic pay other benefits to which union members are entitled as stated
above and salaries which 22 union members had received. In view of foregoing discussion, issue
No.1 is decided partly in affirmative as stated in favour of petitioner and against respondent
however issue No. 2 is decided as discussed above whereas issue No.7 is decided in negative. All
these issues are decided in favour of petitioner as stated above and against respondent.
Issues no.3 and 4:
23. The issue of maintainability was not pressed by Ld. Counsel for respondent. Otherwise
also, from pleadings and evidence on record, it is nowhere established in what manner the claim
petition of the union is not maintainable. In so far as claim of respondent that petitioner union has
no locus standi, it would be relevant to refer to judgment of Hon'ble Apex Court reported in AIR
1960 SC 1328 in which the Hon'ble Apex Court has unambiguous terms held that cause of
workmen can be taken up by even unregistered union, that being so the objection of locus standi of
petitioners to institute the present claim petition ceases to have any relevance. In another judgment
of Hon'ble High Court of H.P. reported in 2009(2) RSJ 163 titled as Phagu Ram vs. Birla Txtile
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in which the Hon'ble High Court of H.P. has held that espousal of industrial dispute could be made
by trade union which is not required to be registered trade union. The relevant para of the said
judgment reproduced below:
“23. It is settled law by now that it is not necessary for espousal of the grievance of the
members by the Union, it should be registered. Their Lordships of the Hon'ble
Supreme Court have held in Newspapers Ltd. Allahabad vs. U.P. State Industrial
Tribunal and others, AIR 1960 SC 1328 that cause of workman can be taken up by
unregistered association of workmen. Their Lordships have held as under (Para 4):
“Then it was urged that the association which sponsored the case of respondents 3 to 5
was an unregistered body and that made the reference invalid. Both the Courts have
held, and rightly, that it is not necessary that a registered body should sponsor a
workman's case to make it an industrial dispute. Once it is shown that a body of
workmen, either acting through their Union or otherwise had sponsored a workman's
case it becomes an industrial dispute” Accordingly, the claim petition is held
maintainable and claimant/petitioner cannot be stated to have no locus standi to file the
present claim on behalf its members. Both these issues are answered in negative in
favour of petitioner union and against the respondent.
Issue no.5:
24. Ld. Counsel for the respondent/society has contended that this Tribunal has no
jurisdiction to entertain the case as the daily wagers are the employees of cooperative society. On
the contrary, Ld. Authorized Representative for the petitioner union has repudiated arguments
advanced by Ld. Counsel for respondent and placed reliance upon the judgment of Hon'ble High
Court of H.P. reported in Latest HLJ 2007 (HP) 713 and relevant part of this judgment is
reproduced below:
“Himachal Pradesh Cooperative Societies Act, 1968- Section 72 read with Section 25 and
Chapter V-A of the Industrial Disputes Act, 1947. Jurisdiction of Industrial Tribunal. The
Industrial Tribunal has the authority, power and jurisdiction to entertain and decide
the reference made to it with respect to the employees of the Cooperative Societies.'
In view of the judgment of Hon'ble High Court and there being no case law referred by Ld.
Counsel for respondent/society to controvert plea of petitioner, this Court is left with no option but
to hold that this Tribunal has jurisdiction to try and entertain the present claim petition of
employees of cooperative society irrespective fact that daily wagers of the union has not been
registered under the H.P. Cooperative Societies. Issue no.5 is accordingly answered in favour of
petitioner and against the respondent.
Issue no.6:
25. Ld. Counsel for petitioner has contended that in reply to claim petition respondent has
not mentioned as to how the petition is bad for non-joinder of necessary party or mis-joinder of
necessary parties. In absence of specific plea which is vague, the same merits rejection and it is
held that petition is not bad for non-joinder and mis-joinder of necessary parties. Issue No. 6 is
accordingly answered in negative in favour of petitioner union and against the respondent.
Issue no. 8 :
26. Ld. Counsel for respondent has not pressed this issue. Otherwise also, from pleadings
and evidence in record the inference of petition having not been instituted as per mandatory
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provisions of law could not be inferred. It is nowhere stipulated in reply as to which provision of
law has not been complied by petitioner while instituting present claim petition. Hence, this issue is
decided in negative against the respondent and in favour of petitioner union.
RELIEF
27. As sequel to my findings on foregoing issues, the present claim petition succeeds and
same is partly allowed. Accordingly, respondent is hereby directed to regularize forthwith services
of all the 22 daily wage workmen of claimant-petitioner/union who have completed 10 years
regular service as reflected in Ex. PW1/E as per demand No.4 of Charter of demand dated
11-6-2012 Ex. PW1/B of the union/petitioner. It is further directed that after regularization of
services of members of claimant-petitioner they shall be entitled for revised Pay Scales as reflected
in Ex. PW1/D as stated above besides daily wage workmen aforestated would also be entitled for
G.P.+D.A.+ other allowances to similarly situated employees of respondent/society. It is further
directed that respondent/society shall pay all daily wage workmen arrears of salaries and
allowances as stated from the period when daily wage workmen as shown in Ex. PW1/E completed
10 years regular service and salaries actually received by them after regularization. In the peculiar
circumstances of the case, the parties are left to bear their own costs.
28. The reference is answered in the aforesaid terms.
29. A copy of this Award be sent to the appropriate Government for publication in the
official gazette.
30. File, after due completion be consigned to the Record Room.
Announced in the open Court today this 27th day of October, 2017.
Sd/-
(K.K. Sharma)
Presiding Judge,
Labour Court-cum-Industrial
Tribunal, Dharamshala, H.P.
__________
IN THE COURT OF SHRI K.K. SHARMA, PRESIDING JUDGE, LABOUR COURT-CUM-
INDUSTRIAL TRIBUNAL, KANGRA AT DHARAMSHALA, H.P.(CAMP AT MANDI)
Ref. No. :
231/ 2014
Sh. Karam Chand s/o Sh. Manohar Lal, r/o Village Chandesh, P.O. Gahar, Tehsil
Sarkaghat, Distt. Mandi, H.P.
...Petitioner.
Versus
1. M/s GVK EMRI, J.P. Motors Building, Village Anji, Barog Bye Pass Solan, District
Solan, H.P. (Work Office).
2. M/s Adecco India Private Limited, C-127, Basement Level, Satguru Infotech, Phase
VIII, Industrial Area Mohali (Area Office).
...Respondents.
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jkti=] fgekpy izns'k] 11 vizSy] 2018@21 pS=] 1940
27-10-2017
Present: None for the petitioner.
Sh. Rajat Sahotra, adv. csl. for the respondent No.1.
Sh. Neeraj Kapoor, adv. csl. for the respondent Nos. 2.
Case called several times but none has appeared on behalf of the petitioner despite due
knowledge. It is 11.40 A.M. Be awaited and put up after lunch hours.
Sd/-
(K. K. Sharma)
Presiding Judge,
Labour Court-cum-Industrial
Tribunal, Kangra at Dharamshala, H.P.
__________
27-10-2017
Present: None for the petitioner.
Sh. Rajat Sahotra, adv. csl. for the respondent No.1.
Sh. Neeraj Kapoor, adv. csl. for the respondent Nos. 2.
Case has been called again several times but none has appeared on behalf of petitioner. It is
2.42 P.M. None appearance of petitioner or his Ld. Csl. today is indicative of the fact that he is not
interested to pursue present reference and accordingly reference is disposed of for non-prosecution.
Reference is answered in the aforesaid terms. The parties to bear their own costs.
Let copy of the Order/Award be sent to the appropriate Government for information and
further necessary action / publication. The file, after completion be consigned to the records.
Announced:
Sd/-
27-10-2017
(K. K. Sharma)
Presiding Judge,
Labour Court-cum-Industrial
Tribunal, Kangra at Dharamshala, H.P.
___________
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In the Court of Shri Niraj Chandla (H.P.A.S.), Sub-Divisional Magistrate Shimla (Urban),
District Shimla, Himachal Pradesh
Shri Bhupinder Chauhan son of Shri Shyam Lal, resident of Village Dadahu-Chuli, P.O.
Dadahu, Tehsil Dadahu and District Sirmaur, Himachal Pradesh
..Applicant.
Versus
General Public
.. Respondent.
Application under section 13(3) of Birth and Death Registration Act, 1969.
Shri Bupinder Chauhan son of Shri Shyam Lal, resident of Village Dadahu-Chuli, P.O.
Dadahu, Tehsil Dadahu and District Sirmaur, Himachal Pradesh has preferred an application to
the undersigned for registration of his son namely SACHINE CHAUHAN (DOB 14-09-2012) at
above address in the record of Municipal Corporation, Shimla.
Therefore, this proclamation, the General Public is hereby informed that any person having
any objection for entry as to date of birth mentioned above, may submit his objection in writing in
this court on or before 30-04-2018 failing which no objection will be entertained after expiry of
date and will be decided accordingly.
Given under my hand and seal of the Court on this 31st day of March, 2018.
Seal.
NIRAJ CHANDLA,
Sub-Divisional Magistrate,
Shimla (Urban) District Shimla, H.P.
520
jkti=] fgekpy izns'k] 11 vizSy] 2018@21 pS=] 1940
CHANGE OF NAME
I, Payar Chand s/o Shri Gayatri Dutt. Sharma, r/o Village Kot Dhalyas, P.O. Kot
Khamradha, Tehsil Aut, District Mandi, H.P. have Changed my name as Nishant Sharma as per
decision of the court [Civil Judge (junior division), Court No. 4, Mandi, H.P.] Dated 13-03-2018.
All concerned may note please.
PAYAR CHAND ,
s/o Shri Gayatri Dutt. Sharma,
r/o Village Kot Dhalyas, P.O. Kot Khamradha,
Tehsil Aut, District Mandi, H.P..
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