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Supreme Court of India

THE MANAGER (FACTORY) MAHARASHTRA STATE COOPERATIVE MARKETING FEDERATION LTD. &ANR.versusSURESH S/O DADARAO GADGE

Citation
2014 INSC 886
Decided
17 December 2014
Disposal
Case Partly allowed

Holding

The respondent is not entitled to reinstatement; instead, he is awarded Rs 2 lakhs as compensation for the illegal termination.

Summary

Suresh was appointed as a peon on a daily‑wage basis on 1 July 1994 and was terminated on 4 March 1996 without any retrenchment compensation. He approached the Labour Court, which ordered his reinstatement with continuity of service but without back wages; the High Court affirmed this award. The employer appealed to the Supreme Court, which held that the appointment was irregular, the employee had worked only about a year and a half, and the unit where he was employed had been closed, making reinstatement inappropriate. The Court awarded the employee Rs 2 lakhs as compensation for the illegal termination and allowed him to withdraw the Rs 25,000 cost deposit made by the employer. The High Court judgment was set aside and the appeal was allowed in part.

Issues considered

  • Whether a daily‑wage employee appointed irregularly is entitled to reinstatement after termination.
  • Whether retrenchment compensation is payable in the absence of a regular appointment.
  • Whether back wages can be awarded when the employer’s unit has been closed.
  • Whether the Labour Court’s award of reinstatement can be affirmed by higher courts.

Subjects

labour lawterminationreinstatementretrenchment compensationdaily‑wage employeeindustrial disputeSupreme Court

Judgment

                   [2014] 14 S.C.R. 479


   THE MANAGER (FACTORY) MAHARASHTRA STATE                     A
 COOPERATIVE MARKETING FEDERATION LTD. &ANR.
                             v.
            SURESH S/O DADARAO GADGE
               (Civil Appeal No. 27 of 2015)                   B
                  DECEMBER 17, 2014
        [ANIL R. DAVE AND R. BANUMATHI, JJ.]
      Labour Law - Termination - Of respondent-peon __
Respondent not given any retrenchment compensation -           c
Subsequent re-instatement of respondent by Labour"court
but without back-wages - Challenge to - Held: Appointment
of respondent was irregular - He had hardly worked for about
a year and a half on daily wage basis - Unit of appellant,
where respondent was employed, had been closed down - D
Further; responden( did not lead any evidence or file any
affidavit before the Labour Court stating that he was
unemployed during the period of litigation - In the
circumstances, respondent ought not to have been reinstated
in service - However; two lakh rupees awarded to respondent E
by way of compensation - In addition, Rs. 25, 0001- deposited
by appellant with the Supreme Court Registry permitted to
be withdrawn by the respondent.
     CIVILAPPELLATE JURISDICTION: Civil Appeal No. 27
of2015.         '                                              F
     Fram the Judgment and Order dated 27-03-2014 of the
High Court of Judicature at Bombay in Writ Petition No. 8809
of 2012.
     Vinay Navare, Satyajeet Kumar, Keshav Ranjan,
Ms. Gwen K.B. (For Ms. Abha R. Sharma), Advs. for the          G
Appellant$.
      DilipAnnasaheb Taur, Amol V. Deshmukh, Advs. for the
. Respondents.
                                                               H
                            479
480          SUPREME COURT REPORTS                    [2014] 14 S.C.R.


A           The Judgment of the Court was delivered by
            ANIL R. DAVE, J. 1 .Leave granted.
            2. The learned counsel appearing for both the sides have
      requested for quick disposal of the appeal and we are also of
      the view that earlier disposal Cif the appeal would be in the
 8
      interest of justice as well as the parties to the litigation. In the
      circumstances, the appeal is heard and decided today.
                                                              a·
            3. ·The 'respo'ndent had been app'ointed as peon on
      daily wage basis on 1st July, 1994 and was discontinued from
c     setvLcefrom 4th March, 1996, without making any payment of ·
      retrenchment compensation.
           4. It is an admitted fact that the respondent had not been
      engaged to work by following the normal practice and thus he
      was engaged by way of "back door entr}i".
D           5. ,The respondent had challenged his termination by
      approaching the Labour Court, Nanded (Maharashtra). The
      Labour Court, by its Award dated 29th December, 2010, in
      Comp. ULP/No.2/1996, decided in favour of the respondent,
      whereby it was directed that he should be reinstated in service
E     with continuity of service from 4th March, 1996, but without back
      wages.
            6. The said Award has been affirmed by the learned
      Single Judge of the High Court by its judgment and order dated
      27th March, 2014, passed in Writ Petition No.8809 of 2012.
 F
       . 7. Being aggrieved by the judgment delivered by the High
      C_ourt affirming the Award passed by the Labour Court, the
      appellant-employer has approached this Court.
             8. After hearing learned counsel for the appellant, we are
·G    of the view that the respondent ought not to have been
      reinstated in service as he was not in a regular service. In fact,
      no other person junior to the respondent had been continued
      at Parbhani unit of the appellant, which had been closed down.
      In fact, the.re was no work at Parbhani unit, as the said unit had
H     been closed down, the respondent, who was working on daily
THE MANAGER (FACTORY) MAHARASHTRA STATE CO-OP. MKTG.                   481
 FED. LTD. v. SURESH S/O DADARAO GADGE [ANIL R. DAVE, J.]


wage basis, was not continued on qaily wage basis, but it is           A
an admitted fact that he was not given retrenchment
compensation.
      9. In view of the aforesaid circumstances, in our opinion,
it would be just and appropriate not to reinstate the respondent,
especially, in view of the fact that (i) the respondent had hardly     B
worked for a period of about a year and a half on daily wage
basis; (ii) his appointment was irregular and; (iii) Parbhani unit
of the appellant, where the respondent was employed, has now
been closed down.
      10. Looking at the peculiarfacts of the case, it would be        C
just and proper to award a sum of Rs.2 lakhs (Rupees two
lakhs only) by way of compensation to the respondent, It is
pertinent to note that he did not lead any evidence or file any
affidavit before the Labour Court stating that he was
unemployed during the period of litigation. The aforestated            D
amount of Rs.2 lakhs by way of compensation shall be paid to
the respondent by the appellant within four weeks from today.
      11. In addition to Rs.2 lakhs, the amount of cost
deposited by the appellant with the Registry of this Court, i.e.,      E
Rs.25,000/- (Rupees twenty five thousand only), is permitted
to be withdrawn by the respondent.
       12. The impugned judgment passed by the High Court
is set aside and the appeal is allowed to the above extent with
no order as to costs.                                                  F


Bibhuti Bhushan Bose                          Appeal partly allowed.


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