M/S. HONDARAM RAMCHANDRA versus YESHWANT MAHADEV KADAM (DEAD) THROUGH LRS.

M/S. HONDARAM RAMCHANDRA versus YESHWANT MAHADEV KADAM (DEAD) THROUGH LRS.

The High Court erred in ordering reinstatement with back wages after closure; under Section 25FFF of the Industrial Disputes Act, 1947, workmen are entitled to compensation and not reinstatement. The Labour Court should decide the factual issues of date of closure and amount of compensation.

Parties
Appellant: Mis. Hondaram Ramchandra; Respondent: Yeshwant Mahadev Kadam (Dead) through LRs.
Jurisdiction
India
Judgment Date
12 December 2007
Procedural Posture
Civil Appeal / Appeal From High Court Judgment and Order
Outcome
Appeal allowed; impugned orders set aside; matter remitted to Labour Court to determine compensation and closure date.
Legal Topics
Closure of Undertaking, Reinstatement, Compensation Under Section 25 FFF
Labour Law Closure of Undertaking Reinstatement Compensation Under Section 25 FFF

Case Brief

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Parties

Mis. Hondaram Ramchandra

Appellant

Yeshwant Mahadev Kadam (Dead) through LRs.

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment and Order

Legal Issues

  1. 1 Whether in the aftermath of the closure of the sales office, reinstatement of workmen instead of compensation under s.25FFF is correct
  2. 2 Whether closure occurred in 1983 or 1991
  3. 3 Whether amount of compensation should be computed based on the year of closure

Ratio Decidendi

The High Court erred in ordering reinstatement with back wages after closure; under Section 25FFF of the Industrial Disputes Act, 1947, workmen are entitled to compensation and not reinstatement. The Labour Court should decide the factual issues of date of closure and amount of compensation.

Court Disposition

Appeal allowed; impugned orders set aside; matter remitted to Labour Court to determine compensation and closure date.

Orders

  • Labour Court to decide pending application under Section 33(C-2) regarding closure and compensation, allowing fresh evidence.
  • Appellant directed to pay Rs.25,000 each to concerned workmen within four weeks for litigation expenses, amount to be deposited with Labour Court.