In a landmark judgment by the Gujarat High Court, a significant decision was made regarding lump sum compensation in a case involving workmen. The court’s ruling has far-reaching implications and sets a precedent for similar cases in the future. Stay tuned to learn more about this crucial legal development.
Arguments
- Mr. Bhavesh Trivedi, learned advocate for the petitioner, argued that the award is contrary to the facts and evidence on record.
Analysis
- More than 30 workmen were working with the petitioner-Municipality in a similar situation as the respondent.
- The award of reinstatement with backwages for similarly situated workmen was challenged in Special Civil Application No.17941 of 2021.
- A co-ordinate bench of the Court directed specific amounts of compensation for different named workmen in the mentioned applications.
- The main petitions and civil applications were disposed of accordingly as a result of the above orders.
- The order from 02.03.2023 in Special Civil Application No.17941 of 2021 was further challenged in Cross Appeals filed by Municipality and the workmen.
- A Co-ordinate Bench of the Court in a different case had directed compensation at the rate of Rs.25,000 per year of service based on the law laid down by the Division Bench.
- Learned Advocate Mr. Joshi highlighted that similarly situated individuals had their references rejected by the Labour Court due to delay, a decision which was also upheld by the Single Judge.
- The Division Bench, citing the Supreme Court’s decision in the case of B.S.N.L. vs. Bhurumal, directed the grant of compensation at the rate of Rs.50,000 to the appellants in those cases.
- This direction was based on the principle of parity and the application of the aforementioned legal precedent.
- The cases of rejection on grounds of delay and subsequent compensation awarded was a significant aspect of the argument made by Mr. Joshi before the court.
- Petitioners of Special Civil Application No.2711 of 2023 and Special Civil Application No.2712 of 2023 have put in 4 years of service.
- Petitioner of SCA No.2776 of 2023 has put in 5 years of service.
Decision
- Petitioner directed to pay lumpsum compensation of Rs.4,00,000/- to the respondent – workman within four weeks
- Letters Patent Appeal No 701 of 2023 partly allowed for the lumpsum compensation payment, all other appeals dismissed
- Order passed quashing and setting aside the award of the Labour Court
- Petitioner municipality to pay lump-sum compensation to respondents’ workmen based on years of service
- Workman entitled to Rs.25,000/- for each year of service, totaling Rs.4,00,000/- for 15 years of service
- Division Bench order in Letters Patent Appeal No.1091 of 2023 and allied matters confirmed the lump sum compensation awarded
- Amount of lump sum compensation modified in Letters Patent Appeal No 701 of 2023 from Rs.6,25,000/- to Rs.3,25,000/-
Case Title: JETPUR NAVAGADH MUNICIPALITY Vs. NARSHIBHAI MAVJIBHAI JETHVA
Case Number: R/SCA/18050/2021
