High CourtDivision BenchAppeal partly allowed.

U.P. State Road Transport Corporation v. Man Singh

Case / Petition Number:Civil Appeal No. 4107 of 2006

Case Details & Bench

Court
High Court
Hon'ble Judges
  • S.B. Sinha
  • Dalveer Bhandari
Judgment Date
2006-09-13
Court Decision / Holding
Appeal partly allowed. The Labour Court’s direction for reinstatement with back wages is set aside. Instead, the appellant-Corporation is directed to pay Rs.50,000 to the respondent within eight weeks from today, with interest at 6% per annum from the expiry of eight weeks until payment.
Final Disposition
Appeal partly allowed.

Parties to the Case

Appellants / Petitioners

  • U.P. State Road Transport Corporation

Respondents

  • Man Singh

Legal Representation & Advocates

Counsels for Petitioners

  • • A.K. Pandey
  • • Sudanshu Saran
  • • Sunita Singh
  • • Rajeev Singh
  • • Pradeep Misra

Counsels for Respondents

  • • Rajesh Prasad Singh

Case Synopsis & Summary

This case concerns termination of a conductor appointed on a temporary basis and the subsequent industrial dispute. The respondent Man Singh was appointed w.e.f. 20.07.1974 on a temporary basis; his services were terminated on 23.07.1975. He raised an industrial dispute on 14.09.1986, which was referred to the Labour Court. The Labour Court held that the employer failed to comply with mandatory requirements of Section 25-F of the Industrial Disputes Act and set aside the termination, reinstating the workman and granting back wages. The High Court declined to interfere, and the appellant challenged in appeal. The Supreme Court held that the Labour Court unquestionably had jurisdiction to pass an award directing reinstatement under Section 11-A of the ID Act, but such discretionary relief must be exercised after considering all attending circumstances. The Court noted the absence of evidence that the respondent was employed according to recruitment rules, that the vacancy was regular, or that constitutional requirements under Articles 14 and 16 were complied with. The respondent raised the dispute after about 12 years; the Court emphasized that it would be wholly unjust to reinstate after more than 30 years. Accordingly, the Court directed monetary relief: pay Rs.50,000 to the workman within eight weeks, with 6% interest if unpaid. The appeal was partly allowed, with a monetary remedy in place of reinstatement.

Provisions of Law Cited

Industrial Disputes Act, 1947 – Section 11-AIndustrial Disputes Act, 1947 – Section 25-FConstitution of India – Articles 14, 16

Legal Doctrines & Maxims

  • Discretionary relief under Section 11-A must be granted after considering all attending circumstances
  • Interest of justice as guiding principle
  • Delay in raising a dispute may affect entitlement to back-wages, but discretionary relief may be justified in peculiar circumstances

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the Labour Court had unquestioned jurisdiction under Section 11-A of the Industrial Disputes Act to direct reinstatement. It argues that the termination was under a temporary appointment and that there is no material showing that the vacancy was regular or that recruitment rules or constitutional requirements (Articles 14, 16) were satisfied. Given the long delay before the dispute and the worker’s temporary status, reinstatement after more than three decades would be unjust. The appellant seeks to uphold the Labour Court’s route or, at minimum, limit back wages and direct appropriate relief.

Contentions of Respondents

The respondent contends that termination was unlawful for non-compliance with Section 25-F; he seeks reinstatement with back wages, arguing that legal violations by the employer warrant restoration of service. He emphasizes the need for prompt, lawful action and entitlement to relief under the ID Act. He asserts that the delay should not bar relief if justified by the circumstances.

Cited Precedents (5)

Case NameCitationTreatmentExplanation
Gurmal Singh v. Principal, Government College of Education and Ors.(2000) 9 SCC 496PositiveCited to support the proposition that delay in raising a dispute may affect back-wages but discretionary relief may still be given in appropriate circumstances.
State of Rajasthan & Anr. v. Ghyan ChandCA No. 3214/2006Mentioned OnlyReferenced as a precedent for monetary relief in similar situations, not as a binding reinstatement precedent.
State of M.P. & Ors. v. Arjunlal Rajak(2006) 2 SCALE 610Mentioned OnlyCited to illustrate the Court’s approach to monetary relief in analogous contexts.
Nagar Mahapalika (now Municipal Corporation) v. State of U.P. & Ors.(2006) 5 SCALE 145Mentioned OnlyCited as a parallel example of similar monetary relief in related matters.
Haryana State Electronics Development Corporation Ltd. v. Mamni(2006) 5 SCALE 164Mentioned OnlyCited to show consistency in granting monetary relief in comparable issues.

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Extracted Judgment Text

Exact text extracted from official judgment records.

A # U.P. STATE ROAD TRANSPORT CORPORATION _v._ MAN SINGH SEPTEMBER 13, 2006 [S.B. SINHA AND DALVEER BHANDARI, JJ.] B _labour laws:_ _Industrial Disputes Act, 1947; Ss. I I-A and 25-F:_ c _Termination of services of a conductor/workman by employer-State Road Transport Corporation-Industrial Dispute-labour Court directing reinstatement ofthe workman with back wages-Affirmed by High Court-On appeal, Held: Though the Labour Court has jurisdiction to pass an award directing re-instatement of the workman in terms of Section I I-A of the Act_ D _bllt the discretionmy relief must be granted upon by the Court taking into consideration all attending circumstances-The workman was appointed on a temporary basis-Since dispute was raised after 12 years of the incident, it was unlikely that he remained unemployed for such a long time-Both the Courts below have failed to take into consideration all these aspects-Jn the peculiar facts and circumstances of the case it would be wholly unjust to_ E _direct reinstatement of the workman after a period of 30 years-It would be appropriate if the workman in question is directed to pay a sum of Rs.50,000 instead and in place of his reinstatement in service with back wages-Directions issued._ · · F The respondent-workman was appointed w.e.f. 20.07.1974 on temporary basis by the appellant-employer, a State Road Transport Corporation. His services were terminated on the ground of misconduct etc. on 23.07.1975. He raised an industrial dispute on 14.9.1986 which was referred to the Labour Court by the appropriate Government. The Labour Court held that the appellant-Corporation had failed to comply with the G mandatory requirements of Section 25F of the Industrial Disputes Act while terminating the services of the workman in question, and therefore, set aside the order of termination of the services of the respondent and also granted him back-wages. Aggrieved, the employer filed a writ petition, H 121 SUPREME COURT REPORTS f2006] SUPP. 6 S.C.R. 122 A which was dismissed by the High Court. Hence the present appeal. Partly allowing the appeal, the Court HELD: I.I. The Labour Court indisputably had the jurisdiction to pass an award directing reinstatement of the respondent in terms of B Section I IA of the Industrial Dispute Act. (124-A( 1.2. There is nothing on record to show that the respondent-workman was employed in accordance with the recruitment rules framed by the Appellant Corporation. No material has also been brought on record to show that the vacancy was a regular one or in filling up of the said vacancy C the constitutional requirements as envisaged under Articles 14 and 16 of the Constitution of India were complied with. (124-B-CI 1.3. The workman in question had raised a dispute in 1986, after a period of about 12 years. It may be true that in an appropriate case, delay D in raising the dispute would have resulted in rejection of the claim for back-wages for the period during which the workman remains absent. But the discretionary relief must be granted upon taking into consideration all attending circumstances. The appellant is a statutory Corporation. Keeping in view the fact that the respondent-workman was appointed on a temporary basis, it was unlikely that he remained unemployed for such E a long time. In any event, it would be wholly unjust at this distance of time i.e. after a period of more than 30 years, to direct reinstatement of the respondent in service. However, the Labour Court or the High Court did not consider these aspects of the matter. (124-C-D-EJ F _Gurmal Singh_ v. _Principal, Government College of Education and Ors.,_ (2000( 9 sec 496, relied on. 2. Keeping in view the peculiar facts and circumstances of this case, instead and in place of the direction for reinstatement of the respondent together with back-wages from 1986, interest of justice would be subG served by directing the appellant-Corporation to pay a sum of Rs.50,000 to the workman. (124-F-G( _State of Rajasthan_ & _Anr._ v. _Ghyan Chand,_ (C.A.No.3214/2006) _decided Supreme Court, State of MP.and Ors._ v. _Arjunlal Rajak,_ (2006) 2 SCALE 610; _Nagar Mahapalika (now Municipal Corporation)_ v. _State of U.P._ & _Ors.,_ H ] 23 U.P. STATE ROAD TRANSPORTCORPN r. MAN SINGH [S s: SINHA,).] (2006) 5 SCALE 145 and _Haryana State Electronics Development Corporation Ltd._ v. _Mamni,_ (2006) 5 SCALE 164, relied on. CIVIL APPELLATE JURISDICTION: Civil Appeal No. 4107 of2006. From the Judgment and Order dated 8.4.2005 of the High Court of Judicature at Allahabad in C.M.W.P. No. 1948011994. A.K. Pandey, Sudanshu Saran, Sunita Singh, Rajeev Singh and Pradeep Misra for the Appellant. Rajesh Prasad Singh for the Respondent. c The Judgment of the Court was delivered by S.B. SINHA, J. Delay condoned. Leave granted. The appellant before us is a Corporation constituted under the Road Transport Corporation Act. The respondent was appointed w.e.f. 20.4.1974 on temporary basis. His services were terminated on 23.07.1975. He is said to have been paid one month's salary in lieu of notice. Some allegations had also been made that he committed misconduct. D E He raised an industrial dispute on or about 14.9.1986 which was referred to for adjudication to the Presiding Officer, Labour Court, U .P., Agra. The industrial dispute referred by the appropriate Government for its adjudication by the Labour Court reads as under: F "That the act of the employer in terminating the service of their workman Man Singh s/o Sher Singh, post Conductor, vide order d:ited 23.03.1975 is proper and/or legal. If not then to what relief/ compensation is the concerned workman entitled for and with what further details." G On a finding that in retrenching the respondent the appellant failed to comply with the mandatory requirements of Section 25F of the Industrial Disputes Act, 1947, the Labour Court although set aside the order of termination 0f the services of the respondent but granted back-wages only from 1986. The High Court in the writ petition filed by the appellant refused ·H to int~rfere therewith. 124 SUPREME COURT REPORTS [2006] SUPP. 6 S.C.R. A A The Labour Court indisputably had the jurisdiction to pass an award directing reinstatement of the respondent in terms of Section 11 A of the Industrial Dispute Act. While exercising the said power, however, the Labour Court should have taken into consideration all relevant factors. The respondent does not dispute that he got employment only for about a year during the period 24.4.1974 to 23. 7.1975. There is nothing on record to show that he B was employed in accordance with the recruitment rules framed by the Appellant Corporation. No material has also been brought on record to show that the vacancy was a regular one or in filling up of the said vacancy the constitutional requirements as envisaged under Articles 14 and 16 of the Constitution of India were complied with. c The respondent admittedly raised a dispute in 1986, i.e. after a period of about I 2 years. It may be true that in an appropriate case, as has been done by the Labour Court, delay in raising the dispute would have resulted in rejection of his claim for back-wages for the period during which the workman remains absent as has been held by this Court in _Gurmal Singh_ v. _Principal,_ D _Government College of Education and Ors.._ [2000) 9 SCC 496. But the discretionary relief, in our opinion, must be granted upon taking into consideration all attending circumstances. The appellant is a statutory Corporation. Keeping in view the fact that the respondent was appointed on a temporary basis, it was unlikely that he remained unemployed for such a E long time. In any event, it would be wholly unjust at this distance of time i.e. after a period of more than 30 years, to direct reinstatement of the respondent in service. Unfortunately, the Labour Court or the High Court did not consider these aspects of the matter. Keeping in view the peculiar facts and circumstances of this case, we F are of the opinion that in stead and place of the direction for reinstatement of the respondent together with back-wages from 1986, interest of justice would be subserved if the appellant is d.irected to pay a sum of Rs.50,000/ - to him. Similar orders, we may place on record, have been passed by this Court in _State of Rajasthan & Anr._ v. _Ghyan Chand,_ (C.A.No.3214/2006), _State of M.P. & Ors._ v. _Arjunlal Rajak,_ (2006) 2 SCALE 610, _Nagar_ G _Mahapalika (now Municipal Corporation)_ v. _State of UP. & Ors.,_ (2006) 5 SCALE 145 and _Haryana State Electronics Development Corporation Ltd._ v. _Mamni,_ (2006) 5 SCALE 164. We direct the appellant to pay the aforementioned amount to the H respondent within a period of eight weeks from today, failing which, the J25 U.~.STAT!;ROADTRANSPORTCORPN. 1·. MAN SINGH [S.B. SINHA,J.) same shall carry interest at the rate of 6 per cent per annum till the date of actual payment. This appeal is allowed to the extent mentioned hereinbefore. The parties shall pay and bear their own costs. S.K.S. Appeal partly allowed. B