In a recent ruling by the Gujarat High Court, a significant decision was made regarding lump sum compensation in an employment dispute. The Court modified the lump sum compensation to Rs.3,25,000 from Rs.6,25,000 for the respondent-workman in Letters Patent Appeal No 701 of 2023. The petitioner Municipality has been directed to pay a lump sum compensation of Rs.1,75,000 to the respondent-workman within four weeks. This ruling has implications for over 30 workers in the petitioner Municipality who are in a similar situation as the respondent.
Facts
- Reinstatement with backwages in similarly situated workmen was challenged in Special Civil Application No.17941 of 2021 and other writ petitions.
- A co-ordinate bench of the Court directed the reinstatement with backwages under order dated 02.03.2023.
Arguments
- Petitioner’s advocate argues that the award is not in line with the facts and evidence on record.
- Counsel for similarly situated persons previously rejected on the grounds of delay presented a case where the Division Bench granted compensation based on a Supreme Court decision.
- Over 30 workers in the petitioner Municipality are in a similar situation as the respondent.
Analysis
- Petitioners of Special Civil Application No.2711 of 2023 and Special Civil Application No.2712 of 2023 have put in 4 years of service, while the petitioner of SCA No.2776 of 2023 has put in 5 years of service.
- A Co-ordinate Bench of the Court in Special Civil Application No.4630 of 2022 had directed compensation at the rate of Rs.25,000 per year of service, based on the law laid down by the Hon’ble Division Bench.
- Considering the nature of work done by the respondents-workmen, the Court partly allowed all the petitions.
Decision
- All appeals, except Letters Patent No 701 of 2023, are dismissed.
- No order as to costs.
- Various petitions and civil applications are disposed of accordingly.
- In Letters Patent Appeal No 701 of 2023, the lump sum compensation is modified to Rs.3,25,000 from Rs.6,25,000.
- Petitioner municipality directed to pay lump-sum compensation of Rs.1,75,000 to the respondent-workman within four weeks.
- The award of the Labour Court in Reference (LCR) No.160 of 2015 is quashed and set aside.
- Workman entitled to Rs.25,000 for each year of service, totaling Rs.1,75,000 as lump sum compensation.
Case Title: JETPUR NAVAGADH MUNICIPALITY Vs. MANDABEN CHHAGANBHAI MANDANI
Case Number: R/SCA/18043/2021
