In a significant decision by the Delhi High Court, the Industrial Tribunal’s award was modified in a case concerning loss of confidence by the employer. The appellant, in this instance, was found entitled to a lump sum compensation of Rs.1,00,000, deviating from the initial claim of Rs.4,00,000. The Court assessed the application of Section 17B of the Industrial Disputes Act to provide relief to the workman involved. This judgment serves as a pivotal interpretation of the Act in ensuring fairness and support for labor rights.
Facts
- The Industrial Tribunal’s award was challenged by the appellant.
- The court determined it was a case of loss of confidence by the employer.
- The appellant was found entitled only to the amount paid under Section 17B of the Act.
- The court agreed to pay a lumpsum compensation of Rs.1,00,000 to the appellant, instead of Rs.4,00,000 as claimed.
Analysis
- Section 17B of the Industrial Disputes Act provides relief to workmen ordered for reinstatement during legal challenges.
- The intention is to alleviate hardships caused by delays in implementing awards.
- Payments under Section 17B are considered as subsistence allowance and are not refundable or recoverable.
- The purpose is to limit the payment to the full wages last drawn by the workman.
- The employer is not burdened to give effect to the award if it is set aside, as the payment is non-recoverable.
- Section 17B is a provision of social welfare under the Industrial Disputes Act to support workmen during legal proceedings.
- Payments made to workmen under Section 17B of the Act are not refundable.
- Even if the management succeeds in challenging the award, the payments cannot be directed to be refunded.
- The amount paid under Section 17B of the Act is non-refundable and non-recoverable.
- The beneficial nature of payments under Section 17B was not considered by the learned Single Judge.
- The Single Judge’s error was in including the Rs.3,00,000 paid under Section 17B for further compensation.
- The direction for additional compensation of Rs.1,00,000 in lieu of reinstatement was based on this error.
Decision
- Appeal allowed by modifying addition to the sum of Rs. 1,00,000/- as paid to the appellant towards lumpsum compensation.
- Payment of the modified sum to be made within four weeks.
- Appeal, along with pending LPA 248/2024 application, disposed of accordingly.
- Appellant confirmed that upon receipt of the additional sum, they have no surviving claim against the other party.
Case Title: PREM SINGH Vs. STATE BANK OF TRAVANCORE (2024:DHC:3655-DB)
Case Number: LPA-248/2024
