High CourtDivision BenchAppeal partly allowed.

ASSISTANT ENGINEER, RAJASTHAN STATE AGRICULTURE MARKETING BOARD, SUB-DIVISION, KOTA v. MOHAN LAL

Case / Petition Number:Civil Appeal No. 6795 of 2013
Neutral Citation:[2013] 9 S.C.R. 91

Case Details & Bench

Court
High Court
Hon'ble Judges
  • R.M. Lodha
  • Madan B. Lokur
Judgment Date
2013-08-16
Court Decision / Holding
Appeal partly allowed. In lieu of reinstatement, the compensation of Rs. 1,00,000 shall be paid by the employer to the workman within six weeks from today, failing which the amount shall carry interest at 9% per annum. The appeal is partly allowed with no order as to costs.
Final Disposition
Appeal partly allowed.

Parties to the Case

Appellants / Petitioners

  • ASSISTANT ENGINEER, RAJASTHAN STATE AGRICULTURE MARKETING BOARD, SUB-DIVISION, KOTA

Respondents

  • MOHAN LAL

Legal Representation & Advocates

Counsels for Petitioners

  • • Aruneshwar Gupta
  • • Manish Raghav
  • • Nikhil Singh

Counsels for Respondents

  • • Badri Prasad Singh

Case Synopsis & Summary

This Supreme Court appeal concerns the termination of Mohan Lal, who served as a work-charge ‘’Mistri’’ on muster roll with the Assistant Engineer, Rajasthan State Agriculture Marketing Board, Kota. He was terminated on 18 February 1986 without one month’s notice or retrenchment compensation. In 1992 he raised an industrial dispute which the Labour Court held to be in violation of Section 25-F of the Industrial Disputes Act, 1947, directing reinstatement with 30% back wages. The Single Judge of the Rajasthan High Court agreed with the Labour Court’s finding but held that the delay in raising the dispute tolled reinstatement relief, while the Division Bench restored the Labour Court order. The Division Bench relied onBalbir Singh and Ajaib Singh to decide whether relief should be reinstatement or compensation. The Supreme Court, however, held that noncompliance with s.25-F does not automatically entitle reinstatement with full back wages and continuity of service; the Labour Court must exercise its discretion after considering all relevant factors including mode and manner of appointment, length of service, reason for termination, and notably the delay in raising the dispute. In this case, the employee worked 286 days as a work-charged employee and raised the dispute after six years. The Court vacated reinstatement and substituted with monetary compensation of Rs. 1,00,000 to be paid within six weeks with interest if delayed, partly allowing the appeal.

Provisions of Law Cited

Industrial Disputes Act, 1947, Section 25-FLimitation Act, 1963Uttar Pradesh Industrial Disputes Act, 1947, Section 6-N

Legal Doctrines & Maxims

  • Non-compliance with Section 25-F does not automatically entitle reinstatement with full back wages; Labour Court must exercise discretion considering all relevant factors including mode and manner of appointment, nature of employment, length of service, ground for termination, and delay in raising the industrial dispute.
  • Delay in raising industrial dispute is a significant circumstance to be considered in exercising discretion, irrespective of whether such objection is raised by the opposite party.
  • A line of decisions (e.g., Gitam Singh; Nagar Mahapalika; Ajaib Singh; Balbir Singh) lays down that relief under Section 25-F is not automatic and may be moulded to suit facts; compensation may be awarded instead of reinstatement in appropriate cases.

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the Labour Court and High Court should exercise judicial discretion under the ID Act in light of all relevant factors (appointment mode, nature of employment, length of service, grounds of termination) and that delay in raising the dispute is a relevant factor to be considered. While noncompliance with s.25-F cannot automatically mandate reinstatement with full back wages, relief may be moulded based on the facts; automatic reinstatement is not warranted in every case.

Contentions of Respondents

The respondent counsellor pressed that delay in raising the industrial dispute should not automatically bar relief of reinstatement; the Labour Court should mould relief consistent with the facts, and delay should be weighed as one factor among others.

Cited Precedents (13)

Case NameCitationTreatmentExplanation
Balbir Singh v. Punjab Roadways(2001) 1 SCC 133PositiveCited to illustrate that discretion to mould relief exists and must be exercised judicially based on facts.
Ajaib Singh v. Sirhind Cooperative Marketing-cum-Processing Service Society Limited and Anr.(1999) 6 SCC 82DistinguishedUsed to caution that delay cannot be treated as an absolute bar; not to be read as an absolute proposition of law.
Nagar Mahapalika v. State of U.P. and Ors.(2006) 5 SCC 127PositiveAffirms discretionary relief and that non-compliance would not automatically result in reinstatement but requires discretion.
Municipal Council, Sujanpur v. Surinder Kumar(2006) 5 SCC 173PositiveReiterates the discretionary approach toward relief under ID Act.
Mamni v. Haryana State Electronics Development Corporation Ltd.(2006) 9 SCC 434PositiveShows reinstatement may be modified to compensation in appropriate circumstances.
M.C. Joshi v. Uttaranchal Forest Development Corporation(2007) 9 SCC 353PositiveAffirms substitution of reinstatement with compensation in certain cases.
Ashok Kumar v. Ghaziabad Development Authority(2008) 4 SCC 261PositiveSupports compensation instead of reinstatement.
Keshab Deb v. Telecom District Manager(2008) 8 SCC 402PositiveHighlights compensation as the remedy when s.25-F is not complied with.
Jagbir Singh v. Haryana State Agriculture Marketing Board(2009) 15 SCC 327PositiveElucidates compensation in lieu of reinstatement for certain irregular terminations.
Uttar Pradesh State Electricity Board v. Laxmi Kant Gupta(2009) 16 SCC 562PositiveSupports the doctrine that compensation may replace reinstatement in specific facts.
Bharat Sanchar Nigam Limited v. Man Singh(2012) 1 SCC 558PositiveAffirms monetary compensation as an outcome when relief cannot be granted as reinstatement.
Senior Superintendent Telegraph (Traffic), Bhopal v. Santosh Kumar Seal and Ors.(2010) 6 SCC 773PositiveDemonstrates continuity of service and back wages context in discretion.
Gitam Singh v. Assistant Engineer, Rajasthan Development Corporation and Anr.(2013) 5 SCC 136PositiveCore doctrinal anchor: Labour Court must consider all factors including delay and mode of appointment; statutory relief is not automatic.

Diagnostic Tool

Beta

Does this judgment govern your specific facts?

Don't risk relying on a distinguishable precedent. Enter your facts or proposition below. We will test it against ASSISTANT ENGINEER, RAJASTHAN STATE AGRICULTURE MARKETING BOARD, SUB-DIVISION, KOTA v. MOHAN LAL and instantly map out authorities that support, challenge, or govern your position.

Extracted Judgment Text

Exact text extracted from official judgment records.

A B [2013] 9 S.C.R. 91 # ASSISTANT ENGINEER, RAJASTHAN STATE AGRICULTURE MARKETING BOARD, SUB-DIVISION, KOTA _v._ MOHAN LAL (Civil Appeal No. 6795 of 2013) AUGUST 16, 2013 **[R.M. LODHA AND MADAN B. LOKUR, JJ.]** _Labour Law:_ C - _Termination of services of workman Industrial dispute_ - - _raised belatedly No objection as to delay raised Reinstatement ordered by Labour Court holding that termination was in violation of s.25-F_ o _ID Act_ - _Held: Delay_ D _in raising industrial dispute is an important circumstance which the Labour Court must keep in view, notwithstanding_ -- _whether or not such objection has been raised Legal position to be followed in case of non-compliance of s.25-F, emphasized_ - _In the instant case, workman worked as_ a _work-_ E - _charged employee for 286 days Labour Court did not keep in view admitted delay of 6 years in. raising the industrial dispute by him_ - _Judicial discretion exercised by Labour Court is, thus, flawed and unsustainable_ - _In the circumstances, in lieu of reinstatement, compensation of Rs. 1_ F - _lac shall be paid by employer to workman Industrial_ -- _Disputes Act, 1947 s.25-F_ **The services of the respondent-workman, who was engaged by the appellant-employer on 1.11.1984 as 'Mistri' on muster roll, were terminated on 18.2.1986, without issuing one month's prior notice or payment of salary in lieu thereof or any retrenchment compensation to him. The workman raised an industrial dispute in 1992 and, ultimately, the Labour Court held his termination as** 91 G H ## 92 SUPREME COURT REPORTS [2013] 9 S.C.R. A violative of s.25-F of the Industrial Disputes Act, 1947, and directed his reinstatement with 30% back wages. The Single Judge of the High Court observed that the workman was not entitled to reinstatement as he raised the industrial dispute with a delay of six years, and B allowed Rs.5,000/- to be paid as compensation. However, the Division Bench of the High Court restored the award of the Labo~r Court. ## Allowing the appeal in part, the Court C C HELD: 1.1 It has been held by this Court that noncompliance of provisions of s.25-F would not automatically lead to grant of relief of reinstatement with full back wages and continuity of service, and the Labour Court must take into consideration the relevant facts for D exercise of its discretion in granting the relief. The legal position laid down by this Court in Gitam Singh's case that must be invariably followed, is that the Labour Court, before exercising its judicial discretion, has to keep in view all relevant factors including the mode and manner E of appointment, nature of employment, length of service, the ground on which termination has been set aside and the delay in raising industrial dispute before grant of relief. [para 8 and 20] [96-G; 97-A-B; 103-F-G] _Assistant Engineer, Rajasthan Development Corporation_ F _and Anr. v. Gitam Singh_ (201 J) 5 SCC 136; _Nagar Mahapalika v. State of U.P. and Ors._ 2006 (1) Suppl. SCR 681 = (2006) 5 SCC 127; _Municipal Council, Sujanpur v. Surinder Kumar;_ 2006 (1) Suppl. SCR 914 = (2006) 5 SCC 173; _Haryana State Electronics Development Corporation_ G _Ltd. v. Mamni_ 2006 (1) Suppl. SCR 638 = (2006) 9 SCC 434; _Ghaziabad Development Authority and Anr. v. Ashok Kumar and Anr._ 2008 (2) SCR 1069 = (2008) 4 SCC 261; _Telecom District Manager v. Keshab Deb_ 2008 (7) SCR 835 = (2008) 8 SCC 402; _Jagbir Singh v. Haryana State Agriculture_ H _Marketing Board;_ 2009 (10) SCR 908 = (2009) 15 SCC 327; ASSTT. ENGR. RAJASTHAN S. A. M. BOARD, KOTA 93 _v._ MOHAN LAL _Uttar Pradesh State Electricity Board v. Laxmi Kant Gupta_ 2008 (13) SCR 1051 = (2009) 16 SCC 562; _Bharat Sanchar Nigam Limited v. Man Singh_ (2012) 1 SCC 558; _Senior Superintendent Telegraph (Traffic), Bhopal v. Santosh Kumar Seal and Ors._ (2010) 6 SCC 773 • referred to. A B 1.2 Though, Limitation Act, 1963 is not applicable to the reference made under the Industrial Disputes Act, 1947, but delay in raising industrial dispute is definitely an important circumstance which the Labour Court must keep in view at the time of exercise of discretion C irrespective of whether or not such objection has been raised by the other side. Ajaib Singh, cannot be read as laying down an absolute proposition of law that where plea of delay is not raised by the employer, the delay in raising the industrial dispute by the workman pales into insignificance and the Labour Court will be unjustified in D taking this circumstance into consideration for moulding the relief. On the contrary, the Court said that on account of admitted delay, the Labour Court. ought to have appropriately moulded the relief. [para 18 and 20] [102B; 103-A-B, E] E D E _Uttaranchal Forest Development Corporation v. M.C. Joshi 2001_ (3) SCR 114 = (2007) 9 sec 353 - relied on. _Ajaib Singh v. Sirhind Cooperative Marketing-cumProcessing Service Society Limited and Anr._ 1999 (2) SCR 505 = (1999) 6 SCC 82; and _Balbir Singh v. Punjab Roadways_ (2001) 1 SCC 133 • referred to. F 1.3 In the instant case, the workman worked as a work-charged employee for 286 days. He raised the G industrial dispute after 6 years of termination. The Labour Court did not keep in view admitted delay of 6 years in raising the industrial dispute by the workman. The judicial discretion exercised by the Labour Court is, thus, flawed and unsustainable. The Division Bench of the H 94 SUPREME COURT REPORTS [2013] 9 S.C.R. A High Court was clearly in error in restoring the award of the Labour Court whereby reinstatement was granted to the workman. At the same time, the compensation awarded by the Single Judge was too low and needed to be enhanced. Therefore, interest of justice will be B subserved if in lieu of reinstatement, the compensation of Rs.1 lac is paid by the employer to the workman. Ordered accordingly. [para 21-22) [103-G-H; 104-A-D] ## Case Law Reference: |c|c2001)1sec133|referred to|para 6| |---|---|---|---| ||1999(2)SCR 505|referred to|para 7| ||2006(1)Suppl. SCR681|·referred to|para 8| |D|2006(1)Suppl. SCR 914|referred to|para 9| ||2006(1)Suppl. SCR638|referred to|para10| ||2007(3)SCR 114|relied on|para11| ||2008(2)SCR 1069|referred to|para12| |E|2008(7)SCR 835|referred to|para13| ||2009 (10) SCR908|referredto|para 14| ||2009 (10) SCR908|referredto|para 15| |F|2008 (13) SCR1051|referred to|para 15| ||c2012)1sec558|referred to|para 15| ||c201O)6sec_113_|referredto|para 15| |G|(2013) 5sec136|referredto|para16| c D E F CIVIL APPELLATE JURISDICTION : Civil Appeal No. 6795 of 2013. From the Judgment and Order dated 19.11.2005 of the H High Court of Judicature for Rajasthan, Jaipur Bench at Jaipur ASSTT. ENGR. RAJASTHAN S. A. M. BOARD, KOTA 95 _v._ MOHAN LJl,L in D.B. Civil Special Appeal (Writ) No. 941 of 2001 in S.B. Civil Writ Petition No. 2375 of 1999. A Aruneshwar Gupta, Manish Raghav, Nikhil Singh for the Appellant. Badri Prasad Singh for the Respondent. B The Judgment of the Court was delivered by **FtM. LODHA, J.** 1. Leave granted. C '2. The consequent reli1af to be granted to the workman C whose termination is held to be illegal being in violation of Sec1tion 25-F of the Industrial Disputes Act, 1947 (for short, "ID Act") is the sole question for our decision in this appeal. Were it not for the argument strongly pressed by the learned counsel for the respondent that the delay in raising industrial dispute in D the absence of any such objection having been raised by the employer before the labour Court is no ground to mould the relief of reinstatement, we would not have gone into the question which is already answered in a long line of cases of this Court. E E 3. Mohan Lal, the workman, was engaged as "Mistri" on muster roll by the appellant, employer, from 01.11.1984 to 17.02.1986. On 18.02.1986, the services of the workman were terminated. While doing so, the workman was neither given one month's notice nor was he paid one month salary in lieu of that notice. He was also not paid retrenchment compensation. F 4. In 1992, the workman raised industrial dispute which was referred by the appropriate government to the Labour Court, Kota (Rajasthan) for adjudication. The dispute referred G to the Labour Court reads as under: "Whether 18.02.86 termination of labour Shri Mohan Lal S/o Shri Dhanna Lal (Post-Mistri), who has been represented by Regional Secretary, Hind Mazdoor Sabha, H 96 SUPREME COURT REPORTS [2013] 9 S.C.R. A Kota Cantt., from service by the Employer - Assistant Engineer, Rajasthan State Agriculture Marketing Board, Sub-Division - Kota is legal and justifiable? If not, then - applicant labour is entitled to get what relief and compensation?" B 5. The Labour Court in its award dated 03.02.1999 held that the workman had completed more than 240 days in a calendar year and his services were terminated in violation of Section 25-F of the ID Act. Having held that, the Labour Court declared that the workman was entitled to be reinstated with C continuity in service and 30% back wages. 6. The employer was successful in challenging the above award before the Single Judge of the High Court. The Single Judge in his judgment dated 23.08.2001 though agreed with D the Labour Court that the employer had te•minated workman's services in violation of Section 25-F but he was of the view that the Labour Court was not justified in directing the reinstatement of the workman because the workman had raised the industrial dispute after 6 years of his termination. Relying upon the E decision of this Court in _Balbir Singh[1] ,_ the Single Judge substituted the order of reinstatement by the compensation which was quantified at Rs.5,000/-. 7. The workman challenged the order of the learned Single Judge in an intra-court appeal. The Division Bench of the High F Court allowed the workman's appeal on 19.11.2005 by relying upon the decision of this Court in _Ajaib Singh[2] ._ The Division Bench restored the award passed by the Labour Court. 8. In _Nagar Mahapalika[3] ,_ it was held by this Court that non G compliance with the provisions of Section 6-N of the U.P. Industrial Disputes Act, 1947 (this provision is broadly pari 1. Balbir Singh v. Punjab Roadways; (2001) 1 SCC 133. 2. Ajaib Singh v. Sirhind Cooperative Marketing-cum-Processing Service Society Limited and Anr. (1999) 6 SCC 82. - H 3. Nagar Mahapalika v. State of U.P. and Ors. (2006) 5 SCC 127. ASSTT. ENGR. RAJASTHAN S. A. M. BOARD, KOTA 97 _v._ MOHAN LAL [R.M. LODHA, J.] A materia with Section 25-F), although, leads to the grant of a A relief of reinstatement with full back wages and continuity of service in favour of the workman, the same would not mean that such relief is to be granted automatically or as a matter'of course. It was emphasised that the Labour Court must take into con.sideration the relevant facts for exercise of its discretion in B granting the relief. 9. The same Bench that decided _Nagar Mahapalika[3 ]_ in _Municipal Council, Sujanpur4,_ reiterated the above legal position. That was a case where the Labour Court had granted reinstatement in service with full back wages to the workman as statutory provisions were not followed. The award was not interfered with by the High Court. However, this Court granted monetary compensation in lieu of reinstatement. c 10. In _Mamni[5 ]_ following _Nagar Mahapalika[3] ,_ this Court held that the reinstatement granted to the workman because there was violation of Section 25-:=, was not justified and modified the order of reinstatement by directing that the workman shall be compensated by payment of a sum of Rs.25,000/- instead of the order of the reinstatement. D E 11. In _M._ C. _Joshi[6] ,_ this Court was concerned with the situation which was very similar to the present case. The workman in that case was employed as a daily wager by the F 4. Municipal Council, Sujanpur v. Surinder Kumar; (2006) 5 SCC 173. 5. Haryana State Electronic Development Corporation Ltd. v. Mamni, (2006) 9 sec 434. 6. Uttaranchal Forest Development Corporation v. M.C. Joshi; (2007) 9 SCC 353. - Pg. 358; c2007) s sec 353 - ·we are, therefore, of the opinion that keeping in view the nature and period of services rendered by the respondent herein as also the period during which he had worked and the fact that he had raised an industrial dispute after six years, interest of justice would be met if the impugned judgments are substituted by an award of compensation for a sum Rs. 75,000/- in favour of the respondent." G H ## 98 SUPREME COURT REPORTS [2013] 9 S.C.R. - A Uttaranchal Forest Development Corporation on 01.08.1989. His services were terminated on 24.11.1991 in contravention of the provisions of Section 6-N of the U.P. Industrial Disputes Act. He had completed 240 days of continuous work in a period of twelve months preceding the order of termination. The - . B workman approached the Conciliation Officer on or about 02.09.1996, i.e., after a period of about five years. The Labour Court granted to the workman, M.C. Joshi, relief of reinstatement with 50% back wages. In the writ petit on filed by the Corporation, the direction of reinstatement was mai - c tained but back wages were reduced from 50% to 25%. This Court substituted the award of reinstatement by compensation for a sum of Rs.75,000/-. 12. In _Ashok Kumar,_ this Court was concerned with the question as to whether the Labour Court was justified in D awarding relief of reir;istatement in favour of the workman who had worked as daily wager for two years. His termination was held to be violative of U.P. Industrial Disputes Act. This Court held that the Labour Court should not have directed reinstatement of the workman in service and ·substituted the E order of reinstatement by awarding compensation of Rs.50,000/-·· 13. In _Keshab Deb[8] ,_ the termination of the workman who was a daily wager, was held illegal on diverse grounds including F 7. Ghaziabad Development Authority and Anr. v. Ashok Kumar and Anr. (2008) 4 sec 261. - •• Pg. 265; c2oos) 4 sec 261. - "Keeping in vi~w the fact that the respondent worked for about six years as also the amount of daily wages which he had been getting, we are of the - G opinion that the interest of justice would be subserved if the appellant is directed to pay a sum of Rs. 50,000/- to the first respondent. The said sum should be paid to the respondent within eights weeks from date, failing which the same shall carry interest at the rate of 12% per annum. The appeal is allowed to the aforesaid extent. However, in the facts and circumstances of this case, there shall be no order as to costs." - H 8. Telecom District Manager v. Keshab Deb; (2008) 8 SCC 402. ASSTT. ENGR. RAJASTHAN S. A. M. BOARD, KOTA 99 _v._ MOHAN LAL [R.M. LODHA, J.] violation of the provisions of Section 25-F. This Court held that even in a case where order of termination was illegal, automatic direction for reinstatement with full back wages was not contemplated. The Court substituted the order of reinstatement by an award of compensation of Rs.1,50,000/-T .. 14. In Jagbir Singh[9 ] , the Court speaking through one of us (R.M. Lodha,J) in a case where the workman had worked from 01.09.1995 to 18.07.1996 as a daily wager granted compensation of Rs.50,000/- to the workman in lieu of A B c 7. Ghaziabad Development Authority and Anr. v. Ashok Kumar and Anr. (2008) 4 sec 261. ··Pg. 265; (2008) 4 sec 261. "Keeping in view the fact that the respondent worked for about six years as also the amount of daily wages which he had been getting, we are of the opinion that the interest of justice would be subserved if the appellant is directed to pay a sum of Rs. 50,000/- to the first respondent. The said sum should be paid to the respondent within eights weeks from date, failing which the same shall carry interest at the rate of 12% per annum. The appeal is allowed to the aforesaid ex1ent. However, in the facts and circumstances of this case, there shall be no order as to costs." D E 8. Telecom District Manager v. Keshab Deb; (2008) 8 SCC 402. _:··_ Pg. 412; (2008) 8 sec 402 "27. Even if the provisions of Section 25-F of the Industrial Disputes Act had not been complied with, the respondent was only entitled to be paid a just compensation. While, however, determining the amount of F compensation we must also take into consideration the stand taken by the appellants. They took not only an unreasonable stand but raised a contention in regard to the absence of jurisdiction in the Tribunal. They admittedly did not comply with the order passed by the Tribunal for a long time. It had raised a contention which is not otherwise tenable. 28. We, therefore, are of the opinion that in the peculiar facts and circumstances of the case interest of justice shall be subserved if the respondent is directed to be paid a compensation of Rs 1,50,000 (Rupees one lakh fifty thousand only). The said sum should be paid to him within four weeks, failing which it will carry interest @ 9% per annum." G 9. Jagbir Singh v. Haryana State Agriculture Marketing Board; (2009) 15 SCC 327 H (2013] 9 S.C.R. ## 100 SUPREME COURT REPORTS - A reinstatement with back wages··· 15. It is not necessary to refer to subsequent three decisions of this Court, namely, _Laxmi Kant Gupta[10] , Man Singh[11 ]_ and _Santosh Kum'ar_ Sea/1[2] , where the view has been taken in line with the cases discussed above. As a matter of B fact in _Santosh Kumar_ Sea/[12] , this Court awarded compensation of Rs.40,000/- to each of the workmen who were illegally retrenched as they were engaged as daily wagers about 25 years back and worked hardly for two or three years. It was held that the relief of reinstatement cannot be said to be justified c and instead granted monetary compensation. 16. Recently in the case of _Gitam Singh[13] ,_ this Court .**** Pg. 335: (2009) 15 sec 327 - "14. It would be, thus, seen that by a catena of decisions in recent time, this Court has clearly laid down that an order of retrenchment passed in violation - D of Section 25-F although may be set aside but an award of reinstatement should not, however, be automatically passed. The award of reinstatement with full back wages in a case where the workman has completed 240 days of work in a year preceding the date of termination, particularly, daily wagers has not been found to be proper by this Court and instead compensation has been awarded. This Court has distinguished between - E a daily wager who does not hold a post and a permanent employees. 15. Therefore, the view of the High Court that the Labour Court erred in granting reinstatement and back wages in the facts and circumstances of the present case cannot be said to suffer from any legal flaw. However, in our view, the High Court erred in not awarding compensation to the appellant while upsetting the award of reinstatement and back wages. 18. In a case such as this where the total length of service rendered by the F appellant was short and intermittent from 1-9-1995 to 18-7-1996 and that he was engaged as a daily wager, in our considered view, a compensation of Rs 50,000 to the appellant by Respondent 1 shall meet the ends of justice. We order accordingly. Such payment should be made within six weeks from today failing which the same will carry interest @ 9% per annum." G 10. Uttar Pradesh State Electricity· Board v. Laxmi Kant Gupta; (2009) 16 SCC 562 11. Bharat Sanchar Nigam Limited v. Man Singh ; (2012) 1 SCC 558 12. Senior Superintendent Telegraph (Traffic), Bhopal v. Santosh Kumar Seal and Ors. ; (2010) 6 SCC 773 13. Assistant Engineer, Rajasthan Development Corporation and Anr. v. Gitam H Singh; (2013) 5 sec 136 ASSTT. ENGR RAJASTHAN S. A. M. BOARD, KOTA 101 _·v.·_ MOHAN LAL [R.M. LODHA, J.] > speaking through one of us (R.M. Lodha,J) or. co11sideration A of the most of the cases cited above reiterated the principle regarding exercise of judicial discretion by the Labour Court in a matter where the termination of the workman is held to be illegal being in violation of Section 25-F in these words : "The Labour Court has to keep in view all relevant factors, including B the mode and manner of appointment, nature of employment, length of service, the ground on which the termination has been set aside and the delay in raising the industrial dispute before grant of relief in an industrial dispute". A · " 17. Mr. Badri Prasad Singh, learned counsel for the C workman, however, vehemently contended, which was also the contention of the workman before the Division Bench, that plea regarding delay was not raised before the Labour Court and, therefore, the delay in raising the industrial dispute should not come in the way of the workman in grant of relief of D reinstatement. He relied upon _Ajaib Singh[2 ] ._ In that case, the services of the workman, Ajaib Singh were terminated on 16.07.1974. Ajaib Singh issued the notice of demand on 18.12.1981. No plea regarding delay was taken by the employer before the Labour Court. The Labour Court directed E the employer to reinstate Ajaib Singh with full back wages. The award was challenged before the High Court. The Single Judge held that Ajaib Singh was disentitled to relief of reinstatement as he slept over the matter for 7 years and confronted the management at a belated stage when it might have been difficult F for the management to prove the guilt of the workman. The judgment of the Single Judge was upheld by the Division Bench. The judgment of the Division Bench was challenged by the workman before this Court. The Court was persuaded by the grievance of the workman that in the absence of any plea G on behalf of the employer and any evidence regarding delay, the workman could not be deprived of the benefits under the l.D. Act merely on the technicalities of law. However, the Court was of the opinion that on account of th admitted delay, the H (2013) 9 S.C.R. 102 SUPREME COURT REPORTS A Labour Court ought to have appropriately moulded the relief by denying some part of the back wages.····· B 18. _Ajaib Singh[2 ] ,_ in our vi.ew, cannot be read as laying down an absolute proposition of law that where plea of delay is not raised by the employer, tho delay in raising the industrial .*****Pg. 91; (1999) 6 sec 82 - "11. In the instant case, the respondent management is not shown to have taken any plea regarding delay an is evident from the issues framed by the Labour Court. The only plea raised in defence was that the Labour Court had no jurisdiction to adjudi.cate the reference and the termination of - c the services of the workman wan justified. Had this plea been raised, the workman would have been in a position to show the circumstances preventing him in approaching thre Court at an earlier stage or even to satisfy the Court that such a plea was not sustainable after the reference was made by the Government. The learned Judges of the High Court, therefore, were not justified in holding that the workman had not given any explanation - D as to why the demand notice had been issued after a long period. The findings of facts returned by the High Court in writ proceedings, even without pleadings were, therefore, unjustified. The High Court was also not justified in holding that the courts were bound to render an even-handed justice by keeping balance between the two different parties. Such an approach totally ignores the aims and object and the social object sought to be achieved by the Act. Even after noticing that "it is true that a fight between the - E workman and the management is not a just fight between equals", the Court was not justified to make them equals while returning the findings, which if allowed to prevail, would result in frustration of the purpose of the enactment. The workman appears to be justified in complaining that in the absence of any plea on behalf of the management and any evidence, regarding delay, he cold not be deprived of the benefits under the Act merely on the technicalities of law. The High Court appears to have substituted its - F opinion for the opinion of the Labour Court which was not permissible in proceedings under Articles 2261227 of the Constitution. 12. We are, however, of the opinion that on account of the admitted delay, the Labour Court ought to have appropriately moulded the relief by denying the appellant workman some part of the back wages. In the circumstances, the appeal is allowed, the impugned judgment is set aside by upholding G the award of the Labour Court with the modification that upon his reinstatement the appellant would be entitled to continuity of service, but back wages to the extent of 60 per cent with effect from 8-12-1981 when he raised the demand for justice till the date of award of the Labour Court, i.e., 16-4-1986 and full back wages thereafter till his reinstatement would be payable to him. The appellant is also held entitled to the costs of litigation assessed at Rs.5,000 to be paid by the respondent management." H ASSTI. ENGR. RAJASTHAN S. A. M. BOARD, KOTA 103 _v._ MOHAN LAL {R.M. LODHA, J.] dispute by the workman pales into insignificance and the A Labour Court will be unjustified in taking this circumstance into consideration for moulding the relief. On the contrary, in _Ajaib Singh[2] ,_ the Court said that on account of admitted delay, the Labour Court ought to have appropriately moulded the relief though this Court moulded the relief by denying the workman B some part of the back wages. B 19. In a subsequent decision in _Balbir Singh1,_ this Court observed that _Ajaib Singh[2 ]_ was confined to the facts and circumstances of that case. It is true that in _Balbir Singh[1] ,_ the plea of delay was raised before the Industrial Tribunal but we would emphasize the passage from Balbir Singh1 wh~re it was said: "Whether relief to the workman should be denied on the ground of delay or it should be appropriately moulded is at the discretion of the Tribunal depending on the facts and circumstances of the case. No doubt the discretion is to be exercised judicially". C D 20. We are clearly of the view that though Limitation Act, 1963 is not applicable to the reference made under the l.D. Act but delay in raising industrial dispute is definitely an important circumstance which the Labour Court must keep in view at the time of exercise of discretion irrespective of whether or not such objection has been raised by the other side. The legal position laid down by this Court in _Gitam Singh[13 ]_ that before exercising its judicial discretion, the Labour Court has to keep in view 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 the delay in raising industrial dispute before grant of relief in an industrial dispute, must be invariably followed. E F G 21. Now, if the facts of the present case are seen, the position that emerges is this: the workman worked as a workcharged employee for a period from 01.11.1984 to 17.02.1986 (in all he worked for 286 days during his employment). The services of the workman were terminated with effect from H ~I ## 104 SUPREME COURT REPORTS [2013] 9 S.C.R. A 18.02.1986. The workman raised the industrial dispute in 1992, i.e., after 6 years of terminatioli. The Labour Court did not keep in view admitted defay of 6 years in raising the industrial dispute by the workman. The judicial discretion exercised by the Labour Court is, thus, flawed and unsustainable. The B Division Bench of the High Court was clearly in error in restoring the award of the Labour Court whereby reinstatement was granted to the workman. Though, the compensation awarded by the Single Judge was too low and needed to be enhanced by the Division Bench but surely reinstatement of the workman c in the facts and circumstances is not the appropriate relief. 22. In our opinion, interest of justice will be subserved if in lieu of reinstatement, the compensation of Rs.1,00,000/- (one lac) is paid by the appellant (employer) to the respondent (workman). We order accordingly. Such payment shall be made D by the appellant to the respondent within six weeks from today failing which the same will carry interest @ 9% per annum. 23. The appeal is pa:rtfy allowed to the above extent with no order as to costs. E R.P. Appeal partly allowed.