State of Gujarat and Others vs Rameshbhai Punjabhai Patel

M.R. Shah, J.—By way of this petition under Article 227 of the Constitution of India, the Petitioners have prayed for an appropriate writ, order and/or direction, quashing and setting aside the impugned order dated 26/08/2003 passed by Labour Court, Valsad in Misc. Application No. 21 of 1997, by which, the Labour Court has rejected the said application submitted by the Petitioners under Rule 26(A) of the Industrial Disputes Rules to quash and set aside the ex-parte judgment and award dated 30/09/1996 passed by Labour Court, Valsad in Reference (LCV) No. 89 of 1992.

Mr. Neeraj Soni, learned Assistant Government Pleader appearing on behalf of the Petitioners has submitted that in the facts and circumstances of the case and even considering the fact that there was some negligence on the part of the Petitioners, Labour Court ought to have considered the application submitted by the Petitioners and ought to have quashed and set aside the ex-parte judgment and award by imposing reasonable cost, so as to enable the Petitioners to submit the case on merits.

Mr. N.V. Solanki, learned advocate appearing on behalf of the Respondent has submitted that there was gross negligence on the part of the Petitioners and considering the above, Labour Court has rightly dismissed the said application submitted by the Petitioners under Rule 26(A) of the Industrial Disputes Rules. Even on merits also, the Petitioners have no case as the action of the Petitioners in terminating the services of the Respondent is illegal.

Having heard the learned advocates appearing on behalf of the respective parties and considering the impugned order passed by the Labour Court in rejecting the application submitted by the Petitioners under Rule 26(A) of the Industrial Disputes Rules, it appears that default has been caused by the Petitioners in not defending the proceedings before the Labour Court. It appears that in the facts and circumstances of the case, Labour Court ought to have allowed such application and ought to have quashed and set aside the ex-parte judgment and award on imposing reasonable cost so as to enable the Petitioners to submit the case on merits.

So far as contention on behalf of the Respondent that on merits also the Petitioners have no case and action of the Petitioners in terminating the services of the Respondent is illegal is concerned, the same is required to be considered by the Labour Court. It will not be proper for this Court at this stage to opine anything at this stage. In the facts and circumstances of the case, if the concerned Respondent is compensated by awarding cost of Rs. 15,000/- to be paid by the Petitioners, it will meet the ends of justice.

For the reasons stated hereinabove, the petition succeeds. The impugned order dated 26/08/2003 passed by Labour Court, Valsad in Misc. Application No. 21 of 1997 in Reference (LCV) No. 89 of 1992 is hereby quashed and set aside and the aforesaid application submitted by the Petitioners for quashing and setting aside ex-parte judgment and award passed by Labour Court, Valsad in Reference (LCV) No. 89 of 1992 is hereby allowed. The impugned order dated 26/08/2003 passed by Labour Court, Valsad in Misc. Application No. 21 of 1997 in Reference (LCV) No. 89 of 1992 is hereby quashed and set aside on imposing cost, which is quantified at Rs. 15,000/-, which the Petitioners shall pay to the concerned Respondent within a period of eight weeks from today and Labour Court is directed to decide and dispose of the aforesaid Reference afresh in accordance with law and on merits, after giving opportunity to all concerned and giving liberty to both the parties to lead the evidence afresh.

Considering the fact that main Reference is of the year 1992, the concerned Labour Court is directed to give priority to the said Reference and the same shall be decided and disposed of by the concerned Labour Court within a period of one year from the date of receipt of writ of this order. All concerned are directed to co-operate the Labour Court in deciding the Reference afresh within stipulated period, as stated hereinabove. It is reported that till date, the Petitioners are paying wages as per Section 17B of the Industrial Disputes Act and which shall be continued to pay to the Respondent till final disposal of the said Reference by the Labour Court, without prejudice to the rights and contentions of the respective parties in the Reference. Labour Court to decide and dispose of the aforesaid Reference without in any way being influenced by the present interim arrangement. Arrears, if any, with respect to payment u/s 17B of the Industrial Disputes Act, shall also be cleared within a period of eight weeks from today. Rule is made absolute to the aforesaid extent. No costs.