SANT RAJ & ANR. versus O.P. SINGLA & ANR.

SANT RAJ & ANR. versus O.P. SINGLA & ANR.

Though termination was illegal under Section 25F, and normal relief would be reinstatement with full backwages, in the special facts of the case, as workmen have been out of job for 12 years, adequate compensation in lieu of reinstatement meets ends of justice. Labour Court's basis for not granting reinstatement was on irrelevant considerations. Each appellant entitled to Rs. 2,00,000 as backwages and compensation.

Parties
Appellant: Sant Raj; Appellant: Itwari Lal Sherya; Respondent: O.P. Singla; Respondent: M/s Lufthansa German Airlines
Jurisdiction
India
Judgment Date
09 April 1985
Procedural Posture
Civil Appeal / Appeal From Labour Court Award
Outcome
Appeal partly allowed
Legal Topics
Retrenchment, Reinstatement, Compensation, Income Tax Liability on Lump Sum Wages
Labour and Industrial Law Taxation Law Retrenchment Reinstatement Compensation Income Tax Liability on Lump Sum Wages

Case Brief

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Parties

Sant Raj

Appellant

Itwari Lal Sherya

Appellant

O.P. Singla

Respondent

M/s Lufthansa German Airlines

Respondent

Procedural Posture

Civil Appeal / Appeal From Labour Court Award

Legal Issues

  1. 1 Whether termination of service of the appellants was illegal and/or unjustified under Industrial Disputes Act, 1947
  2. 2 Whether reinstatement is a necessary consequence of illegal termination or if compensation can be awarded at discretion
  3. 3 Entitlement to relief under Section 89 of the Income Tax Act, 1961, on lump sum backwages

Ratio Decidendi

Though termination was illegal under Section 25F, and normal relief would be reinstatement with full backwages, in the special facts of the case, as workmen have been out of job for 12 years, adequate compensation in lieu of reinstatement meets ends of justice. Labour Court's basis for not granting reinstatement was on irrelevant considerations. Each appellant entitled to Rs. 2,00,000 as backwages and compensation.

Court Disposition

Appeal partly allowed

Orders

  • Award of Labour Court modified: each appellant to be paid Rs. 2,00,000 as and by way of backwages and in lieu of reinstatement.
  • Respondent-employer to assist appellants for obtaining income tax relief under Section 89 of the Income Tax Act.