“Appeal is filed against Final Judgment and Order dated 18.12.2007 passed by High Court of Judicature of Rajasthan. Appellant is a Government Company, a Sick Company, engaged in manufacture of certain items. Respondent claimed, he worked with Appellant Company as a casual helper in its manufacturing plant from 10.06.1976 to 30.07.1977. He complained, by an Oral Order, Appellant on 31.07.1977 terminated his services and he is no longer in employment of Appellant. Labour Court on 21.09.1988 held, Respondent be reinstated in service by Appellant and he be given continuity in service. On 17.09.1997, High Court (Single Judge) set aside the award of Labour Court. Division Bench allowed an Intra Court Appeal and restored the award. Labour Court should have awarded Lump Sum Money Compensation to Respondent in lieu of relief of reinstatement along with payment of back wages and continuity of service. In other words, having regard to peculiar nature of Respondent’s appointment and rendering of services by him for a very short duration (just 240 days only) and with no evidence as to whether he worked for gains or not after his services came to an end in 1977, this was a fit case where Labour Court should have awarded Lump Sum Compensation by taking recourse to powers under Section 11A of The Industrial Disputes Act. This has also been view of this Court in such type of cases. In view of foregoing discussion, we direct Appellant to pay a sum of Rs. 50,000 Lump Sum to Respondent by way of Compensation in lieu of Respondent’s right to claim reinstatement in service. In our view, it is a Reasonable Compensation in facts of this case. Let Rs. 50,000 be paid to Respondent by Appellant within 3 months.”

– Hon’ble Justice Abhay Manohar Sapre, Management, Hindustan Machine Tools Ltd. v. Ghanshyam Sharma, [Civil Appeal No.856 of 2012]