Wrongful Termination and Compensation: Court Ruling on Employee’s Claim.


30 January 2024 Workmen's Compensation >> Labor Law  

In this case of Praveen Singh Kanyal Vs State of Maharashtra & Others, the Petitioner, an ex-serviceman, challenges the Award passed by the Labour Court in 2018 regarding the termination of his services by the Respondent, M/s. Edmacut (Bombay) Pvt. Ltd. Petitioner was employed by the Respondent as an 'Accountant-Cum-Clerk' from 1998. He alleges that his services were unlawfully terminated in November 2012 without any notice, compensation, or reason, following his complaint about non-payment of an increment. Despite his protests and representations, the termination was not addressed properly, and a reference was made to the Labour Court for adjudication.

The Labour Court, in its Award, found that the termination was not illegal, but the Respondent was directed to pay the Petitioner legal dues. The Petitioner, dissatisfied with this outcome, filed a writ petition, arguing that his termination violated the Industrial Disputes Act and sought reinstatement with back wages.

 
 

The Respondent, on the other hand, contended that the Petitioner abandoned his job by refusing to report at the Bhayandar factory after the company moved operations. They also claimed that they offered reinstatement, which the Petitioner did not accept.

The Court found that the termination was indeed illegal, as there was no written notice or retrenchment compensation provided to the Petitioner, in violation of Section 25-F of the Industrial Disputes Act. However, the Court observed that the Petitioner did not accept repeated offers for reinstatement at the Bhayandar factory, and as per legal precedents, refusal of such offers precluded claims for reinstatement or back wages.

Ultimately, the Court set aside the Labour Court’s award and directed the Respondent to pay the Petitioner a lump-sum compensation of Rs. 4,00,000 within eight weeks, with interest if delayed. The Petitioner was also allowed to pursue a separate claim for gratuity before the appropriate authority.


Industrial Disputes Act, 1947