High Court of KeralaSingle JudgeWrit Petition allowed in part; Contempt Petitio...

India Coffee Board Workers Co-operative Society Ltd. No.4227, Thrissur v. State of Kerala & others (WP(C) No.22447/2012; CO(C) No.98/2019)

Case / Petition Number:CO(C) No.98/2019 & WP(C) No.22447/2012

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Amit Rawal
Judgment Date
2022-11-01
Court Decision / Holding
Writ Petition stands allowed in part. The Labour Court’s award is modified to back wages at 50% (instead of full back wages). The Labour Court/Co-operative Arbitration Court directions are to be followed, including timelines for processing and payment, and steps for seeking legal services. The Contempt Petition is disposed of. The order also directs the petitioner to communicate with the District Legal Services Authority for legal aid processes and directs the registry to forward copies of the judgment for further action, including income certificate considerations.
Final Disposition
Writ Petition allowed in part; Contempt Petition disposed of; Back wages fixed at 50% with directions for timely payment and related procedural actions.

Parties to the Case

Appellants / Petitioners

  • INDIA COFFEE BOARD WORKERS CO-OPERATIVE SOCIETY LTD NO.4227, THRISSUR

Respondents

  • State of Kerala
  • K.K.Rajesh
  • Industrial Tribunal Perumedu, Idukki District

Legal Representation & Advocates

Counsels for Petitioners

  • • V. Rajendran (Perumbavoor)
  • • George Varghese
  • • KizhaKKambalam
  • • Rahul Surendran

Counsels for Respondents

  • • Dileep Varghese
  • • Tesmy Varghese

Case Synopsis & Summary

This matter concerns a writ petition by the India Coffee Board Workers Co-operative Society Ltd. (the petitioner) challenging a Labour Court award under the Industrial Disputes Act (ID Act) that reinstated an employee (K.K. Rajesh) and granted back wages for an alleged illegal termination. The Labour Court held a violation of Section 25(F) of the ID Act and ordered reinstatement with back wages. The petition was revived by an order dated 24.07.2018 after earlier dismissal of the petition in 2016, and the Division Bench had relied on K.A. Annamma v. The Secretary, Cochin Cooperative Society Ltd. to hold that a cooperative society employee can still seek IDA relief. The employer argued that there was no pleading about gainful employment during the period of lay-off, invoking Deepali Gundu Surwase to contend back wages could be denied where pleadings are lacking. The court, while recognizing the normal rule of reinstatement with continuity of service and back wages, also emphasized the need for pleadings and evidence, including specific statements about post-dismissal employment. Consequently, the High Court modified the back wages to 50% and issued directives to facilitate the main arbitration process, payment timelines, and related reliefs, while disposing of the contempt petition. The writ petition is allowed in part and disposed accordingly.

Provisions of Law Cited

Industrial Disputes Act, 1947, Section 25FIndustrial Disputes Act, 1947, Section 25(F)Industrial Disputes Act, 1947, Section 17B

Legal Doctrines & Maxims

  • Reinstatement with continuity of service and back wages is the normal rule in wrongful termination cases (as per Supreme Court guidelines)
  • Guidelines in Deepali Gundu Surwase v. Kranti Junior Adhyapak Mahavidyalaya (D.ED.) (2013) 10 SCC 324
  • Remedy under the IDA cannot be denied to cooperative society employees (K.A. Annamma v. The Secretary, Cochin Cooperative Society Ltd., 2018 (1) KLT 414)

Submissions & Arguments

Contentions of Appellants / Petitioners

Learned counsel for the petitioner-Respondent in WP argued that the respondent-workman’s claim did not contain pleadings about gainful employment during the lay-off; relied on Deepali Gundu Surwase to contend that back wages could be denied absent pleadings; asserted that the remedy with respect to illegal retrenchment should be handled by the cooperative society’s processes, and that the Labour Court’s award was improper given the lack of essential pleadings and due process. They urged focusing on Section 25F and the need for proper charge-sheet and enquiry, suggesting that the back wages be reconsidered in light of attenuating circumstances and procedural constraints.

Contentions of Respondents

Counsel for the workman contended that reinstatement with continuity of service and back wages is the normal rule and supported by the Supreme Court guidelines; argued for full back wages given the long delay and that the employee remained out of service, though the employee did file pleadings; relied on the cooperative-employer remedy principle from KA Annamma to sustain IDA relief; argued that denial of back wages requires proper pleadings and evidence on the part of the employer.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
K.A.Annamma v. The Secretary, Cochin Cooperative Society Ltd.2018 (1) KLT 414PositiveCited to acknowledge that remedy under the Industrial Disputes Act is not barred for cooperative society employees and can be availed, despite the workman’s status in a cooperative.
Deepali Gundu Surwase v. Kranti Junior Adhyapak Mahavidyalaya (D.ED.) and others(2013) 10 SCC 324PositiveCited for the general rule that reinstatement with back wages is the normal remedy, with ridered consideration of evidence and pleadings.

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Extracted Judgment Text

Exact text extracted from official judgment records.

# **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR. JUSTICE AMIT RAWAL TUESDAY, THE 1[ST] DAY OF NOVEMBER 2022 / 10TH KARTHIKA, 1944 CON.CASE(C) NO. 98 OF 2019 ORDER DATED 29.10.2018 IN WP(C) 22447/2012 OF HIGH COURT OF** ## **KERALA** ## **PETITIONER/2ND RESPONDENT:** K.K.RAJESH, AGED 38 YEARS S/O KUMARAN, KADALIKKATTIL HOUSE, AVITTATHOOR P.O.,IRINJALAKUDA,THRISSUR. BY ADVS. DILEEP VARGHESE SMT.TESMY VARGHEESE ## **RESPONDENT/PETITIONER:** C.D.SURESH, AGED 38 YEARS S/O C DAMODHARAN, PRESENT SECRETARY REPRESENTING INDIAN COFFEE BOARD WORKERS CO-OPERATIVE SOCIETY LTD NO.4227 P.B.NO 184, THRISSUR-680001. BY ADV SRI.V.RAJENDRAN (PERUMBAVOOR) SRI JIMMY GEORGE, GOVERNMENT PLEADER THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01.11.2022, ALONG WITH WP(C).22447/2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: CO(C) No.98/2019 & WP(C) No.22447/2012 2 # **IN THE HIGH COURT OF KERALA AT ERNAKULAM** # **PRESENT** **THE HONOURABLE MR. JUSTICE AMIT RAWAL** **TUESDAY, THE 1[ST] DAY OF NOVEMBER 2022 / 10TH KARTHIKA, 1944** **WP(C) NO. 22447 OF 2012** ## **PETITIONER:** INDIA COFFEE BOARD WORKERS CO-OPERATIVE SOCIETY LTD. NO.4227, THRISSUR, P.B.NO 184 PIN 680001 REP.BY ITS SECRETARY VARGHESE, S/O.THOMAS BY ADVS. V.RAJENDRAN (PERUMBAVOOR) GEORGE VARGHESE KIZHAKKAMBALAM RAHUL SURENDRAN ## **RESPONDENTS:** 1 STATE OF KERALA REP.BY PRINCIPAL SECRETARY DEPARTMENT OF LABOUR & REHABILITATION (A), SECRETARIAT THIRUVANANTHAPURAM 695001 2 K.K.RAJESH AGED 38 YEARS S/O.KUMARAN, KADALIKKATTIL HOUSE AVITTATHOOR P.O 680683, IRINJALAKUDA, THRISSUR 3 INDUSTRIAL TRIBUNAL PERUMEDU, IDUKKI DISTRICT 685531 BY ADVS. SRI.DILEEP VARGHESE SMT.TESMY VARGHEESE THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01.11.2022, ALONG WITH Con.Case(C).98/2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: CO(C) No.98/2019 & WP(C) No.22447/2012 3 ## **JUDGMENT** The writ petition has been revived by virtue of an order dated 24.07.2018 rendered in Writ Appeal No.1426 of 2018. Earlier vide judgment of this Court dated 09.08.2016, the Writ Petition was dismissed on the ground that the workman was an employee of the Co-operative Society and for claiming relief against the illegal retrenchment, the provisions of the Co-operative Society was required to be invoked. The Division Bench set aside the findings of the Single Bench by relying upon the judgment of the Supreme Court rendered in _**K.A.Annamma v. The Secretary, Cochin Cooperative Society Ltd.**_ [2018 (1) KLT 414], where it has been held that despite the fact that the workman was an employee of Co-operative Society, the remedy for claiming the relief under the Industrial Disputes Act cannot be denied. 2. Facts of the case : The 2[nd] respondent workman was employed as counter clerk from 18.02.1993 and while working in Pala Branch, had availed a loss of pay leave from 24.07.2006 to 31.10.2006 to look after his ailing mother. After having availed the aforementioned leave, submitted an application for extension by submitting a request from 01.11.2006 as evident from the courier CO(C) No.98/2019 & WP(C) No.22447/2012 4 receipt dated 23.10.2006, but the same was not accepted by the management. The petitioner reported for duty, but was dismissed from service without serving any charge sheet, enquiry or opportunity of hearing necessitating the petitioner to seek reference from the Government. While reference was sent to the Labour Court, it was registered as Industrial Dispute No.154 of 2010. On receipt of the aforementioned reference, Labour Court sent notice to the management. The management filed the written brief in advance following the claim statement of the workman, but thereafter did not appear and was proceeded exparte. Workman led the exparte evidence by submitting his statement as WW1 and brought on record Exts.W1 and W4 which included the letter of the committee dated 22.02.2007 and Services and Gratuity Rules. Labour Court on preponderance of the ex parte evidence found that it was a case of violation of provisions of Section 25 (F)of Industrial Disputes Act and ordered for reinstatement with full back wages. As noticed above, there was a ground of litigation resulting into revival of the Writ Petition. The Labour Court award is of 2011 whereby the workman was reinstated in 2009. The question which revolves before this Court is whether the workman would be entitled to full back wages with CO(C) No.98/2019 & WP(C) No.22447/2012 5 effect from 01.02.2007 or not. 3. Learned counsel for the petitioner Coffee Board submitted that there is no assertion or averment in the claim petition or in the affidavit filed by the workman regarding gainful employment or otherwise during the period he remained out of service. In support of the aforementioned contention, learned counsel has relied upon the judgment of the Hon'ble Supreme Court in _**Deepali Gundu Surwase v. Kranti Junior Adhyapak Mahavidyalaya (D.ED.) and others**_ [(2013) 10 SCC 324], wherein it has been held that denial of the full back wages can be only supported and justified had there not been any pleadings on behalf of the workman. 4. On the other hand, learned counsel for the workman submits that in paragraph 38, the Supreme Court had laid down the guidelines, wherein it has been held that in cases of wrongful termination of service, reinstatement with continuity of service and backwages is the normal rule which is subject to the rider that while deciding the issue of back wages, the adjudicating authority or the court may take into consideration the length of service of the employee/workman, the nature of misconduct etc. and the employee whose services are terminated and desirous of getting CO(C) No.98/2019 & WP(C) No.22447/2012 6 back wages is required to either plead or at least make a statement before the adjudicating authority or the court. The statement of the petitioner that he remained out of job and was starving is sufficient requirement of law to overcome the ratio decidendi culled out in the judgment. 5. I have heard the counsel for the petitioner and appraised the paper book. 6. I am of the view that the award of the Labour Court with regard to the termination of the workman is fully justified as it is a clear cut case of violation of Section 25(F) of the Industrial Disputes Act. Even if the workman had remained absent and reported for duty, the management ought to have issued a charge sheet and held an enquiry. Thus it is a case of exploitation and cannot be construed to be a misconduct of the workman. 7. Now coming to the backwages, the conditions laid down in the judgment aforementioned are extracted hereinabove. _(i) The impugned award dated 10.8.2011 in I.D.No. 154/2010 passed by the Industrial Tribunal, Idukki [Ext.P-5 in W.P.(C).No. 22447/2012 and Ext.P-5 in W.P.(C). No. 17554/2016] is set aside. In case the workman in these case files requisite petition before the Co-operative Arbitration Court, Kozhikode, within a period of six weeks from the date of receipt of certified copy of this judgment, then the same shall be entertained on merits by the said court, without going into the issue of delay. However, if there is any delay on the part of the petitioner in preferring such application/petition before the aforementioned court within the stipulated time lime, then the condonation of such delay therefrom may be considered by that court based on the delay condonation application that may be submitted by the workman._ _(ii) The workman will be at liberty to make necessary application_ CO(C) No.98/2019 & WP(C) No.22447/2012 7 _for securing legal services, by approaching the Chairman/Secretary of the District Legal Services Authority, Kozhikode, by filing requisite application along with necessary materials, upon which, the same shall be processed and decided in accordance with law and as indicated in the previous portion of this judgment. (iii) Both the employer and the workman will be at liberty to submit their necessary pleadings as well as adduce evidence, documentary as well as oral._ _(iv)The Co-operative Arbitration Court, Kozhikode, will take all reasonable endeavours possible under the circumstances, to ensure that the main matter is disposed of without much delay, preferably within four months from the date of first appearance of both the parties, at any rate, within an outer time limit of six months from the date of first appearance of both parties before that forum._ _(v) The petitioner will forward a copy of this judgment to the competent village officer/revenue official concerned who is competent to issue the income certificate, along with his application for issue of income certificate._ _(vi) The Registry will forward a certified copy of this judgment to the Chairman/Secretary, District Legal Services Authority, Kozhikode for information and further action, if so required.”_ 8. The aforementioned principles are required to be followed conjunctively and not in isolation. There is no pleading on behalf of the workman that during the period he remained out of service was not gainfully employed. Even if the respondent management was ex parte, there has to be a specific pleading. Had there been a pleading, the adverse inference was liable to be drawn. But in the absence of the same, Labour Court ought not to have granted the backwages. Keeping in view of the attenuating circumstances, the workman had to undergo the rigmarole of litigation and was reinstated after the award dated 2011 only in 2019. 9. I am of the further view that this is a fit case where the award of the Labour Court is required to be modified by CO(C) No.98/2019 & WP(C) No.22447/2012 8 determining the back wages to the extent of 50% only. Writ Petition stands allowed in part. Contempt Petition in this view of the matter stands disposed of. Counsel for the workman submits that there has been a gap in not making the payment as determined under Section 17B. The petitioner management is directed to recoup all the losses within a period of one month and also pay the 50% backwages. In case the same is not disbursed, liberty is granted to revive the Contempt Petition. **Sd/-** **AMIT RAWAL JUDGE** csl CO(C) No.98/2019 & WP(C) No.22447/2012 9 ## **APPENDIX OF WP(C) 22447/2012** PETITIONER'S EXHIBITS |EXHIBIT P1|TRUE COPY OF RELEVANT PAGE OF DESABHIMANI| |---|---| ||DAILY DATED 25.02.08 WITH ENGLISH| ||TRANSLATION.| |EXHIBIT P2|TRUE COPY OF LETTER ISSUED TO 2ND RESPONDENT| ||BY THE PETITIONER ON 1.4.08 WITH ENGLISH| ||TRANSLATION.| |EXHIBIT P3|TRUE COPY OF LETTER ISSUED TO 2ND RESPONDENT| ||BY THE PETITIONER ON 11.7.08 WITH ENGLISH| ||TRANSLATION.| |EXHIBIT P4|TRUE COPY OF WRITTEN STATEMENT FILED BY THE| ||PETITIONER BEFORE THE 3RD RESPONDENT ON| ||3.12.2010 WITH ENGLISH TRANSLATION.| |EXHIBIT P5|TRUE COPY OF AWARD PASSED BY 3RD RESPONDENT| ||IN INDUSTRIAL DISPUTE NO.154/2010 DATED| ||10.8.2011.| |EXHIBIT P6|TRUE COPY OF LETTER SUBMITTED BY 2ND| ||RESPONDENT BEFORE THE PETITIONER ON| ||11.6.2012.| |EXHIBIT P7|TRUE COPY OF THE RELEVANT PAGES (FRONT PAGE| ||AND PAGE NOS.6 TO 9) OF THE SERVICE RULES OF| ||THE SOCIETY WITH ENGLISH TRANSLATION.| |EXHIBIT P8|TRUE COPY OF LEAVE APPLICATION FILED BY THE| ||2ND RESPONDENT ON 24.10.06 BEFORE THE| ||PETITIONER SOCIETY TOGETHER WITH ENGLISH| ||TRANSLATION.| |EXHIBIT P9|TRUE COPY OF LETTER ISSUED BY PETITIONER| ||SOCIETY TO THE 2ND RESPONDENT ON 6.11.06| ||TOGETHER WITH ENGLISH TRANSLATION.| |EXHIBIT P10|TRUE COPY OF LETTER SENT BY MANAGER, PALA| ||BRANCH OF COFFEE HOUSE TO THE SECRETARY ON| ||24.11.16 TOGETHER WITH ENGLISH TRANSLATION.| |EXHIBIT P11|TRUE COPY OF PETITION FILED BY 2ND RESPONDENT| CO(C) No.98/2019 & WP(C) No.22447/2012 10 BEFORE THE SECRETARY ON 2.2.07 TOGETHER WITH ENGLISH TRANSLATION. EXHIBIT P12 TRUE COPY OF LETTER SENT BY THE SOCIETY TO THE 2ND RESPONDENT ON 22.2.07 TOGETHER WITH ENGLISH TRANSLATION. EXHIBIT P13 TRUE COPY OF POSTAL ACKNOWLEDGEMENT CARD. EXHIBIT P14 TRUE COPY OF PETITION FILED BY THE 2ND RESPONDENT BEFORE THE DISTRICT LABOUR OFFICER, THRISSUR ON 4.10.18 TOGETHER WITH ENGLISH TRANSLATION. CO(C) No.98/2019 & WP(C) No.22447/2012 11 ## **APPENDIX OF CON.CASE(C) 98/2019** PETITIONER'S ANNEXURES ANNEXURE 1 A TRUE COPY OF THE ORDER IN WPC NO 22447/2012 DATED 29.10.2018