Recent Judgements in Industrial & Labour Laws
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Recent Judgements in Industrial & Labour Laws

mrinal_k Started The Discussion:

Hi All,

Here are some recent judgements in Industrial and Labour Laws. HR professionals pl. go through. Hope its useful. Source: Various Journals on Human Resource Management.

Termination of a workman on completion of scheme would be excluded from ‘retrenchment’:

State of Rajasthan vs. Sarjeet Singh and another, 2007 LLR 7 (SC)
Facts:
The state of Rajasthan made a scheme of supply of water in the village known as ‘Jal Pradyot Yojna’. Later, the Gram Panchayat of Indragarh employed several persons included the responded as a pump driver. The respondent was initially appointed for a period of 6 months. The term of his appointment was extended from time to time. The scheme was to be completed upto 7.11.1997. As the scheme came to an end, his services were terminated. He challenged his termination and was awarded reinstatement. The Division Bench upheld the award hence appeal in the Supreme Court which was accepted and the impugned award was set aside.

Decision: Where workman was appointed for a fixed period in a scheme but his services were continued till the scheme completed, termination of scheme would attract section 2 (oo) (bb) of the ID Act. Although Labour Court possesses discretionary jurisdiction in moulding relief in cases of dismissal or discharge of the workman as provided under section 11-A of the ID Act, the power must be judicially exercised depending upon facts and the circumstances.
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‘Dismissal of a bank employee working against the interest of the bank will be justified.’

Syndicate Bank, Zonal Office, New Delhi vs. Sanjay Kapoor,
2007 LLR 51 (Del. HC)
Facts: The respondent/ workman was working as a clerk with the petitioner bank. He made fake entries in the ledger containing his account and by falsification of account books and withdrew an amount of Rs. 5410. When the matter was discovered, he was told that he had overdrawn the mount. HE deposited the amount back. But, a charge-sheet was served upon him in respect of falsification of account and withdrawal of amounts as a result of falsification of accounts and he was dismissed from service. He raised an industrial dispute wherein his dismissal was set aside. A writ petition was admitted by the High Court.

Decision: Dismissal of a bank employee for falsification of accounts and withdrawal of money, that too after holding of an enquiry, will be justified and the industrial Tribunal erred in awarding reinstatement with 50% back wages. Also, imposition of punishment, it is the prerogative of the disciplinary authority and the reinstatement, as granted b y the Labour court, amounted to erroneous approach. Besides that a bank management puts does not keep a watch that the employees will be working against the interest of the Bank hence the workman has lost the confidence and should not have been reinstated.


‘Termination of worker on completion of specified period will not amount to retrenchment.’
Steel Authority of India Ltd. Vs. Workmen, SAIL, Bokaro Steel Plant, Steel City, 2007 LLR 38 (Jhar. HC)

Facts: Steel Authority of India Ltd. Filed an appeal against the judgment passed by learned single Judge whereby and whereunder, the learned single judge dismissed the writ petition, as was preferred by the appellant- company against the Award dated 18-12-1995 passed by the Labour court awarding reinstatement to the workman by rejecting the plea of the appellant company that the workman was appointed for fixed period and his termination did not amount to retrenchment. The division Bench accepted the appeal.

Decision : When a worker has been appointed for a fixed period on contract basis and the same has been extended from time to time, his termination on completion of the specified period will not amount to retrenchment. The Labour Court has erred in granting reinstatement besided that the learned Single Judge has also misdirected itself in rejecting the writ petition by the employer. Hence, the Division Bench restored the order of termination as passed by the Management.

Regards,
Mrinal

Esha Chaudhury - Member Since: Sep 2012
Hi to all,I am company secretary(executive) student and iam facing difficulty in subjects sebi,eco & labour law ,company law..is anyone who is or have complete cs(executive)module and can suggest me good books with the name of the author on the above related subjects..

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