2004 (9) TMI 693 - SC - Indian Laws

Summary

Issues:
1. Termination of services of the workman.
2. Entitlement to back-wages.

Analysis:
1. Termination of services of the workman:
The workman joined Punjab Roadways in 1965 as a driver but was absent from duty from 2.5.1979 to 3.8.1979 without applying for leave. The State terminated his services due to his prolonged absence despite notices. The workman demanded reinstatement, leading to an industrial dispute referred to the Labour Court. The Court awarded reinstatement with full back-wages, which the State challenged in a writ petition. The High Court partially allowed the petition, reducing back-wages to 60% from the date of the demand notice. The State argued that no disciplinary proceedings were initiated due to the workman's failure to report for duty, thus the termination was justified. Conversely, the workman's counsel contended that termination violated statutory rules as no disciplinary action was taken. The Court reinstated the workman in 1999, and he retired in 2004.

2. Entitlement to back-wages:
The key issue was whether the workman was entitled to back-wages. The Labour Court's award was based on the absence of disciplinary proceedings before termination and non-compliance with statutory requirements. However, the Court found inconsistencies in the Labour Court's reasoning. It noted the workman's failure to join duty despite notices and emphasized his delayed demand for reinstatement. The Court cited previous cases to highlight the importance of compliance with principles of natural justice in termination cases. It concluded that granting back-wages to the workman was erroneous, considering his conduct and the State's efforts to notify him. Despite the statutory rules, the Court held that the workman was not entitled to back-wages due to his prolonged absence and delayed response to the situation.

In conclusion, the Supreme Court allowed the State's appeal, dismissing the workman's appeal. The Court found that the workman's conduct and delayed actions warranted the denial of back-wages, despite the statutory rules governing the termination. The judgment emphasized the importance of compliance with natural justice principles in employment disputes and upheld the State's decision to terminate the workman's services due to prolonged absence without valid reasons.