In a recent landmark judgement by the Gujarat High Court, a decision was rendered on lump-sum compensation in a case involving workmen from a Municipality. The judgement impacts multiple individuals similarly situated as the respondent, setting a new precedent for compensation in such cases. Let’s dive into the details of this crucial ruling that is reshaping legal outcomes for individuals like the petitioner municipality workman.
Arguments
- Mr. Bhavesh Trivedi, the 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 and were similarly situated as the respondent.
- A co-ordinate bench of the Court directed reinstatement with backwages for similarly situated workmen in specific cases.
- Specific amounts were awarded to individual workmen in Special Civil Application No. 17941 of 2021 and allied matters.
- Civil applications were disposed of as the main petitions were resolved.
- The order from 02.03.2023 in Special Civil Application No. 17941 of 2021 faced challenges in Cross Appeals by both the Municipality and workmen.
- A Co-ordinate Bench of the Court in a different case directed compensation at the rate of Rs. 25,000 per year of service based on law laid down by a Division Bench.
- Learned Advocate Mr. Joshi argued that similarly situated persons had their references rejected by the Labour Court on the basis of delay, with the decision being upheld by the Single Judge.
- The Division Bench referred to the Supreme Court’s decision in the case of B.S.N.L. vs Bhurumal (2014) where compensation at the rate of Rs. 50,000/- was granted to the appellants in similar cases.
- 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
- The award of the Labour Court dated 04.12.2019 in Reference (LCR) No.151 of 2015 is quashed and set aside.
- The petitioner municipality is directed to pay a lump-sum compensation of Rs.5,00,000 to the respondent workman within four weeks.
- The Division Bench affirmed the lump-sum compensation granted in most cases but modified it in Letters Patent Appeal No 701 of 2023 to Rs.3,25,000 from Rs.6,25,000 due to disproportionality.
- Various factors such as nature of employment, length of service, and time gap were considered in determining the compensation amount.
Case Title: JETPUR NAVAGADH MUNICIPALITY Vs. BABUBHAI SARDULBHAI VAGHELA
Case Number: R/SCA/18051/2021
