{"id":242574,"date":"2021-01-22T11:20:01","date_gmt":"2021-01-22T05:50:01","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=242574"},"modified":"2021-01-29T10:59:51","modified_gmt":"2021-01-29T05:29:51","slug":"guj-hc-dismissing-the-argument-of-arrangement-being-a-contractual-set-up-with-no-industrial-dispute-as-such-court-upholds-reinstatement-of-the-workman-granting-compensation-against-back-wages","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2021\/01\/22\/guj-hc-dismissing-the-argument-of-arrangement-being-a-contractual-set-up-with-no-industrial-dispute-as-such-court-upholds-reinstatement-of-the-workman-granting-compensation-against-back-wages\/","title":{"rendered":"Guj HC | Dismissing the argument of arrangement being a Contractual set up with no Industrial dispute as such, Court upholds reinstatement of the workman granting compensation against back wages"},"content":{"rendered":"

Gujarat High Court: <\/strong>A.P. Thaker J., upholding the decision of the Labour Court with respect to reinstatement of the workman, directed the employer to pay compensation of Rs 55000 as a lump sum against prayer for 100% back wages.<\/p>\n

Being aggrieved with the award dated 23-04-2009 passed by the Labour Court, both workmen and the employer have preferred the respective petitions.<\/p>\n

The workman has preferred Special Civil Application No. 540 of 2010 contending that he was serving with the employer on the post of supervisor and rendered his services for more than five years with no appointment letter or permanent assurance as such. One fine day, he was terminated from his position without any inquiry. It is further contended that in his reference before the Labour Court wherein he was granted prayer for reinstatement in service, the Labour Court factually and legally erred in not granting 100% back wages. Therefore, he has prayed to quash and set aside the award and grant him the same.<\/p>\n

The employer has filed Special Civil Application No. 10377 of 2009 against the award contending that the Labour Court has committed serious error of law and facts in granting reinstatement in service as the workman has admitted that he was working on daily rated basis and in that view of the matter, when work was not available with the employer, he was automatically discharged. Further, it is also contended by the employer that the dispute is contractual in nature which, essentially, does not attract the Industrial Disputes Act, 1947.<\/p>\n

Counsel for the petitioner relied on Talwara Cooperative v. Sushil Kumar,<\/em> (2008) 9 SCC 486<\/a>,<\/em> Executive Engineer v. Ayubhai Ladharbhai,<\/em> 2010 (2) GLH 700 and Counsel for the respondent placed reliance on, General Manager Haryana Roadways v. Rudhan Singh<\/em>, (2005) 5 SCC 591<\/a> and UP State Brassware v. Uday Narain Pandey,<\/em> (2006) 1 SCC 479<\/a>.<\/p>\n

Court found no error of facts or law committed by the Labour Court with respect to reinstatement and for 100% back wages, it said, \u201c\u2026 considering the materials placed on record and the decisions cited, it is found that the workman is not entitled to 100% backwages, however, granting of backwages at 25% is also not proper, especially in view of peculiar facts of this case. At the relevant time, the workman was getting Rs.1500\/- and considering the peculiar facts of this case, instead of granting any back wages, it would be just and proper to pay lump sum compensation of Rs.55,000\/- for back wages to the workman, which will serve the ends of justice\u201d<\/em>[Karsan Shivaji Sanghar v. Ashapura Mines, 2021 SCC OnLine Guj 61<\/b><\/a>, decided on 13-01-2021]<\/p>\n

\n

Sakshi Shukla, Editorial Assistant has put this story together<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Gujarat High Court: A.P. Thaker J., upholding the decision of the Labour Court with respect to reinstatement of the workman, directed the <\/p>\n","protected":false},"author":67011,"featured_media":206146,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[8561,44919,31857,44918,2729],"class_list":["post-242574","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-back-wages","tag-contractual-setup","tag-employer","tag-law-labour-court","tag-Reinstatement"],"yoast_head":"\nGuj HC | Dismissing the argument of arrangement being a Contractual set up with no Industrial dispute as such, Court upholds reinstatement of the workman granting compensation against back wages | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2021\/01\/22\/guj-hc-dismissing-the-argument-of-arrangement-being-a-contractual-set-up-with-no-industrial-dispute-as-such-court-upholds-reinstatement-of-the-workman-granting-compensation-against-back-wages\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Guj HC | Dismissing the argument of arrangement being a Contractual set up with no Industrial dispute as such, Court upholds reinstatement of the workman granting compensation against back wages\" \/>\n<meta property=\"og:description\" content=\"Gujarat High Court: A.P. 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Midha, J. allowed a writ petition filed by the employer challenging the award of the Labour Court whereby the respondent was ordered to be reinstated with 40% back wages. The employer had engaged the respondent on daily wages, who deposited deficient sale proceeds for several months in\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":314431,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/02\/17\/calcutta-high-court-directs-immediate-reinstatement-with-consequential-benefits-based-on-nature-of-employment-scc-blog\/","url_meta":{"origin":242574,"position":2},"title":"\u2018Nature of Employment to be judged on the basis of duties performed, not Employer\u2019s Letter\u2019; Calcutta High Court directs reinstatement","author":"Ritu","date":"February 17, 2024","format":false,"excerpt":"\u201cWhere the job continues without even any performance appraisal or periodical renewal, and the person engaged in the same would be termed as a \u201ctrainee\u201d, as it is in the present case, the same would be considered as unfair labour practice.\u201d","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"calcutta high court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":352623,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/07\/07\/orissa-hc-grants-compensation-to-workman-for-unjust-dismissal-by-sbi\/","url_meta":{"origin":242574,"position":3},"title":"Orissa HC awards compensation to workman unjustly dismissed from service by SBI for withdrawing money from deceased\u2019s account","author":"Editor","date":"July 7, 2025","format":false,"excerpt":"\u201cIn the absence of any clinching material showing the Workman's involvement in the withdrawal of cash, he was inflicted with the punishment of dismissal from service, thus, raising doubts about the fairness of the enquiry conducted against him.\u201d","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"compensation to SBI workman on unjust dismissal","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/07\/compensation-to-SBI-workman-on-unjust-dismissal.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/07\/compensation-to-SBI-workman-on-unjust-dismissal.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/07\/compensation-to-SBI-workman-on-unjust-dismissal.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/07\/compensation-to-SBI-workman-on-unjust-dismissal.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":294406,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/06\/12\/delhi-high-court-enhances-compensation-illegal-termination-workman-legal-updates\/","url_meta":{"origin":242574,"position":4},"title":"Delhi High Court enhances compensation from Rs 50,000 to Rs. 1,50,000 for illegal termination of \u2018workman\u2019","author":"Arunima","date":"June 12, 2023","format":false,"excerpt":"Delhi High Court observed that Bangalore Water Supply and Sewerage Board v. R. Rajappa, 1978 (3) SCR 207 acts as a North star for the courts to reach the conclusion regarding the applicability of the Industrial Dispute Act to an organization by laying down elaborate guidelines with respect to the\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"delhi high court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":202069,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/09\/21\/workmen-not-entitled-to-claim-back-wages-as-of-right-on-reinstatement-order-of-hc-granting-full-back-wages-modified-sc\/","url_meta":{"origin":242574,"position":5},"title":"Workmen not entitled to claim back wages as of right on reinstatement; order of HC granting full back wages modified: SC","author":"Bhumika Indulia","date":"September 21, 2018","format":false,"excerpt":"Supreme Court: The Bench comprising of A.M. Sapre and S. Abdul Nazeer, JJ, partially allowed a civil appeal filed against the judgment of Jharkhand High Court whereby the dismissal order passed against 37 workmen was set aside and full back wages were granted to them. 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