MANAGEMENT, HINDUSTAN MACHINE TOOLS LTDversusGHANSHYAM SHARMA

                       [2018] 13 S.C.R. 1193                            1193


    MANAGEMENT, HINDUSTAN MACHINE TOOLS LTD.                            A
                                 v.
                    GHANSHYAM SHARMA
                   (Civil Appeal No. 856 of 2012)
                        OCTOBER 30, 2018                                B
[ABHAY MANOHAR SAPRE AND INDU MALHOTRA, JJ.]
      Industrial Disputes Act, 1947:
       s. 11A – Termination of services of casual worker, who had
worked for just 240 days – Labour Court set aside the termination       C
order holding it as illegal and directed reinstatement of the workman
with continuity in service – Single Judge of High Court set aside
the award of Labour Court – Division Bench of High Court restored
the award of Labour Court – On appeal, held: In view of the facts
that the workman was a casual worker and had rendered service
                                                                        D
for a very short duration and that there was no evidence as to
whether he was gainfully employed, order of reinstatement alongwith
payment of back wages and continuity of service was wrong –
Labour Court in exercise of powers u/s. 11A should have awarded
lump sum compensation – The award is modified to the extent that
in lieu of right to claim reinstatement, compensation of                E
Rs. 50,000/- in lump sum is granted – Labour Laws.
      Partly allowing the appeal, the Court
       HELD: 1. The respondent was a casual worker and hardly
worked for one year (10.6.1976 to 30.7.1977). Having regard to
the fact that many decades had passed in between with no evidence       F
adduced by the respondent that whether he was gainfully
employed from 1977 onwards or not, the Labour Court should
have awarded lump sum money compensation to the respondent
in lieu of the relief of reinstatement along with payment of back
wages and continuity of service by taking recourse to the powers        G
under Section 11-A of the Act, rather than to direct his
reinstatement         with      all   consequential     benefits.
[Paras 13 and 14][1196-A-C]
      2. The impugned order and the award of the Labour Court
is modified. The appellant is directed to pay a sum of Rs. 50,000/      H
                            1193
1194              SUPREME COURT REPORTS                      [2018] 13 S.C.R.


 A     - in lump sum to the respondent (employee) by way of
       compensation in lieu of respondent’s right to claim reinstatement
       in service. The amount of compensation is fixed by this Court
       after taking into account all facts and circumstances of the case
       including the fact of making payment to the respondent by way of
       monthly salary during pendency of the writ petition/intra court
 B
       appeal by the appellant under Section 17-B of the Act.
       [Paras 16, 17][1198-F-H]
                Senior Superintendent Telegraph (Traffic) Bhopal v.
                Santosh Kumar Seal & Ors. (2010) 6 SCC 773; Assistant
                Engineer, Rajasthan Development Corporation & Ors.
 C              v. Gitam Singh (2013) 5 SCC 136 : [2013] 1 SCR 679
                – relied on.
                                Case Law Reference
       (2010) 6 SCC 773                 relied on                Para 15
 D     [2013] 1 SCR 679                 relied on                Para 15
                CIVIL APPELLATE JURISDICTION: Civil Appeal No. 856 of
       2012
             From the Judgment and Order dated 18.12.2007 of the High
       Court of Judicature for Rajasthan, Bench at Jaipur in D.B. Civil Special
 E
       Appeal (Writ) No. 1417 of 1997.
             Sushil Kumar Jain, Sr. Adv., Ankita Gupta, Ms. Pratibha Jain,
       Advs. for the Appellant.
                Ms. Chandan Ramamurthi, Adv. for the Respondent.
 F              The Judgment of the Court was delivered by
              ABHAY MANOHAR SAPRE, J. 1. This appeal is filed against
       the final judgment and order dated 18.12.2007 passed by the High Court
       of Judicature of Rajasthan in D.B. Civil Special Appeal (Writ) No.1417
       of 1997 whereby the High Court allowed the appeal filed by the
 G     respondent.
                2. Facts of the case lie in a narrow compass. They are stated
       infra.
            3. The appellant is a Government company engaged in
       manufacture of certain items. It is now declared as a sick company.
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   MANAGEMENT, HINDUSTAN MACHINE TOOLS LTD. v.                                 1195
   GHANSHYAM SHARMA [ABHAY MANOHAR SAPRE, J.]

      4. The respondent (workman) claimed that he worked with the              A
appellant Company as a casual helper in its manufacturing plant from
10.06.1976 to 30.07.1977. He complained that by an oral order; the
appellant on 31.07.1977 terminated his services and, therefore, since
31.07.1977 he is no longer in the employment of the appellant.
       5. The termination of the respondent, therefore, gave rise to the       B
industrial dispute between the parties. The State, on the prayer made by
the respondent (workman), referred the dispute under Section 10 of the
Industrial Disputes Act (for short “the Act”) to the Labour Court, Jaipur
on 03.11.1983, for its adjudication.
      6. The parties contested the Reference on merits before the Labour       C
Court. By award dated 21.09.1988, the Labour Court answered the
Reference in respondent’s favour.
       7. It was held that termination of the respondent was not legal
and proper and, therefore, it was liable to be set aside. It was accordingly
set aside. It was also held that the respondent be reinstated in service       D
by the appellant and he be given continuity in service, also.
       8. The appellant (employer-company) felt aggrieved and filed writ
petition in the High Court. By an order dated 17.09.1997, the High
Court (Single Judge) allowed the writ petition and set aside the award of
the Labour Court.                                                              E
       9. The respondent (employee) felt aggrieved and filed intra court
appeal before the Division Bench. By impugned order, the Division Bench
allowed the appeal, set aside the order of the learned Single Judge and
restored the award of the Labour Court which has given rise to filing of
this special leave to appeal by the Employer in this court.                    F
      10. Heard Shri Sushil Kumar Jain, learned senior counsel for the
appellant. None appeared for the respondent though served.
       11. So the short question, which arises for consideration in this
appeal, is whether the Division Bench was justified in allowing the
respondent’s appeal and was, therefore, justified in restoring the award       G
of the Labour Court.
      12. Having heard the learned counsel for the appellant and on
perusal of the record of the case, we are of the considered opinion that
the appeal deserves to be partly allowed by modifying the award of the
Labour Court to the extent indicated infra.                                    H
1196            SUPREME COURT REPORTS                        [2018] 13 S.C.R.


 A           13. It is not in dispute that the respondent was a casual worker
       and hardly worked for one year (10.6.1976 to 30.7.1977). It is also not in
       dispute that his appointment was casual.
              14. In a case of this nature, and having regard to the fact that
       many decades had passed in between with no evidence adduced by the
 B     respondent that whether he was gainfully employed from 1977 onwards
       or not, the Labour Court should have awarded lump sum money
       compensation to the respondent in lieu of the relief of reinstatement
       along with payment of back wages and continuity of service by taking
       recourse to the powers under Section 11-A of the Act, rather than to
       direct his reinstatement with all consequential benefits.
 C
              15. In other words, having regard to the peculiar nature of the
       respondent’s appointment and rendering of services by him for a very
       short duration (just 240 days only) and with no evidence as to whether
       he worked for gains or not after his services came to an end in 1977, this
       was a fit case where the Labour Court should have awarded lump sum
 D     compensation to the respondent instead of directing his reinstatement in
       service with consequential benefits. The Labour Court was empowered
       to pass such order by taking recourse to the powers under Section 11-A
       of the Act. This has also been the view of this Court in such type of
       cases. (See- Senior Superintendent Telegraph (Traffic) Bhopal vs.
 E     Santosh Kumar Seal (2010) 6 SCC 773 and Assistant Engineer,
       Rajasthan Development Corporation & Ors. vs. Gitam Singh
       (2013) 5 SCC 136).
              16. In view of the foregoing discussion, we allow this appeal in
       part and while modifying the impugned order and the award of the Labour
 F     Court, direct the appellant to pay a sum of Rs. 50,000/- in lump sum
       to the respondent (employee) by way of compensation in lieu of
       respondent’s right to claim reinstatement in service.
              17. The amount of compensation is fixed by this Court after taking
       into account all facts and circumstances of the case including the fact of
 G     making payment to the respondent by way of monthly salary during
       pendency of the writ petition/intra court appeal by the appellant under
       Section 17-B of the Act. In our view, it is a reasonable compensation in
       the facts of this case.


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   MANAGEMENT, HINDUSTAN MACHINE TOOLS LTD. v.                                   1197
   GHANSHYAM SHARMA [ABHAY MANOHAR SAPRE, J.]

      18. Let the amount of Rs.50,000/- be paid to the respondent by             A
the appellant within three months from the date of this order.
       19. Pending application(s), if any, stand disposed of.


Kalpana K. Tripathy                                     Appeal partly allowed.
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