Summary
A daily-wage Beldar raised a termination dispute about twenty-five years after roughly one year of service. The Supreme Court set aside the High Court’s reinstatement direction and substituted lump-sum compensation, increasing the Labour Court’s Rs.30,000 award to Rs.1 lakh. Applying Bhurumal, the Court found compensation appropriate on the short tenure and prolonged delay, in full settlement of reinstatement and consequential claims.
Issues
- Whether reinstatement should replace the Labour Court’s compensation award after a prolonged delay.
- What compensation was appropriate on the facts.
Held
- Reinstatement with back wages is not automatic for a daily-wage termination suffering from a procedural retrenchment defect. The cited Bhurumal principle distinguishes cases involving unfair labour practice or discriminatory retention or regularisation of juniors. (¶¶ 10, 11)
- The short daily-wage service, absence of a right to regularisation or continued engagement, and approximately twenty-five-year delay brought the case within the category warranting compensation rather than reinstatement. (¶¶ 12, 13, 14)
- Compensation was increased from Rs.30,000 to Rs.1 lakh in full and final satisfaction of reinstatement, back wages and consequential claims. The State was to pay within three months of receiving the judgment. (¶¶ 15, 16, 17)
Result
Appeals partly allowed; High Court writ and review orders set aside. Labour Court award modified to Rs.1 lakh compensation, payable within three months of receipt of judgment, in full and final settlement.