Compensatory Jusrisprudence of Constitutional Courts VIII : Ghanshyam Sharma

This Appeal is filed against the Final Judgment and Order dated 18.12.2007 passed by the High Court of Judicature of Rajasthan. The Appellant is a Government Company, a Sick Company, engaged in manufacture of certain items. The Respondent claimed that he worked with the Appellant Company as a casual helper in its manufacturing plant from 10.06.1976 to 30.07.1977. He complained that by an oral order; the Appellant on 31.07.1977 terminated his services and he is no longer in the employment of the Appellant. The Labour Court on 21.09.1988 held that the Respondent be reinstated in service by the Appellant and he be given continuity in service. On 17.09.1997 the High Court (Single Judge) set aside the award of the Labour Court. The Division Bench allowed the Intra Court Appeal and restored the award. The Labour Court should have awarded Lump Sum Money Compensation to the Respondent in lieu of the relief of reinstatement along with payment of back wages and continuity of service. In other words, having regard to the peculiar nature of the 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 the Labour Court should have awarded Lump Sum Compensation by taking recourse to the powers under Section 11A of The Industrial Disputes Act. This has also been the view of this Court in such type of cases. In view of the foregoing discussion, we direct the Appellant to pay a sum of Rs. 50,000 Lump Sum to the 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 the facts of this case. Let the amount of Rs.50,000 be paid to the Respondent by the Appellant within 3 months.”

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