In a significant development, the Gujarat High Court has recently issued a judgment regarding the award of lump-sum compensation to the workmen. The Court’s decision impacts various individuals including Labhuben Bhagwanjibhai Gangadi, Jayantibhai Bhupatbhai Jadav, Shree Gitaben Kantilal Bagda, Pathan Yunuskhan Kanyalkhan, Sitapara Sanjay Kanubhai, and others who have been involved in the case. This ruling signifies a crucial step towards upholding the rights of workers in cases involving labour disputes and compensation claims.
Facts
- There were more than 30 workmen working with the petitioner-Municipality.
- All workmen were similarly situated to the respondent in this case.
- The award of reinstatement with backwages for similarly situated workmen was challenged in Special Civil Application No. 17941 of 2021.
- The co-ordinate bench of the Court, in an order dated 02.03.2023, directed the reinstatement with backwages for the similarly situated workmen.
Arguments
- Mr. Bhavesh Trivedi, advocate for the petitioner, argued that the award is contrary to the facts and evidence on record.
- He emphasized that the award lacks coherence with the established evidence in the case.
- Mr. Trivedi pointed out specific instances where the award diverges from the documented facts.
- Overall, he contended that the award does not align with the truth as presented through the evidence.
Analysis
- The learned Advocate Mr. Joshi made submissions regarding similarly situated persons whose references were rejected by the Labour Court on the ground of delay.
- The decisions of rejecting references on the ground of delay were upheld by the learned Single Judge.
- The learned Division Bench referred to the case of B.S.N.L. vs Bhurumal reported in 2014(7) SCC page No.177, where compensation at the rate of Rs.50,000 was directed to be granted to the appellants.
- The order dated 02.03.2023 in Special Civil Application No. 17941 of 2021 and allied matters was partly allowed.
- A Co-ordinate Bench of the Court directed the grant of compensation at the rate of Rs. 25,000/- per year of service based on the law laid down by the Hon’ble Division Bench.
- Specific amounts of compensation were awarded to individual workmen as follows: Labhuben Bhagwanjibhai Gangadi – Rs. 2,50,000/-; Jayantibhai Bhupatbhai Jadav – Rs. 1,50,000/-; Shree Gitaben Kantilal Bagda – Rs. 4,25,000/-; Pathan Yunuskhan Kanyalkhan – Rs. 3,50,000/-; Sitapara Sanjay Kanubhai – Rs. 2,25,000/-.
- Petitioners of Special Civil Application No.2711 of 2023 and Special Civil Application No.2712 of 2023 have put in 4 years of service.
- The petitioner of Special Civil Application No.2776 of 2023 has put in 5 years of service.
Decision
- The award of the Labour Court in Reference (LCR) No.159 of 2015 is quashed and set aside.
- The petitioner municipality must pay a lump-sum compensation to the workmen as per the specified table.
- Each workman, who completed 25 years of service, is entitled to a lump-sum compensation of Rs.6,25,000.
- The petitioner is directed to pay the lump-sum compensation within four weeks of receiving the order.
- All appeals except Letters Patent No. 701 of 2023 are dismissed.
- In Letters Patent Appeal No.701 of 2023, the compensation amount for 11 years of service is modified to Rs.3,25,000 from Rs.6,25,000.
Case Title: JETPUR NAVAGADH MUNICIPALITY Vs. MADRASI RAJESHWARIBEN PRIYASWAMI
Case Number: R/SCA/18048/2021
