1999 (4) TMI 602 - SC - Indian Laws

Supreme Court reinstates workman with back wages, emphasizes social welfare objectives

The Supreme Court allowed the appeal, setting aside the High Court's judgment and upholding the Labour Court's decision with modifications. It directed ... - Issues Involved:1. Jurisdiction of the Labour Court.2. Applicability of Article 137 of the Limitation Act.3. Delay in raising the industrial dispute.4. Relief and back wages to the workman.Summary:Jurisdiction of the Labour Court:The management initially disputed the jurisdiction of the Labour Court to entertain and adjudicate the reference but did not press this issue before the Labour Court. The Labour Court directed reinstatement of the workman with full back wages from 8.12.1981.Applicability of Article 137 of the Limitation Act:The management contended that the principle incorporated under Article 137 of the Limitation Act should apply to cases under the Industrial Disputes Act for making a reference u/s 10. However, the Supreme Court held that Article 137 of the Limitation Act is not applicable to proceedings under the Industrial Disputes Act. The Court emphasized that the Act is a social welfare legislation intended to protect the interests of workmen and should be interpreted to advance its objectives.Delay in Raising the Industrial Dispute:The workman issued the notice of demand on 8.12.1981, after his termination on 16.7.1974. The High Court denied relief on the ground of prolonged delay. However, the Supreme Court noted that no plea regarding delay was raised before the Labour Court, and the High Court's findings on delay were unjustified. The Court stated that delay alone cannot be a ground to deny relief under the Act unless real prejudice is shown by the employer.Relief and Back Wages to the Workman:The Supreme Court held that the Labour Court should have appropriately moulded the relief due to the admitted delay. The Court modified the Labour Court's award, granting the workman continuity of service but only 60% back wages from 8.12.1981 to 16.4.1986, and full back wages thereafter until reinstatement. The appellant was also awarded costs of Rs. 5,000.Conclusion:The Supreme Court allowed the appeal, set aside the High Court's judgment, and upheld the Labour Court's award with modifications regarding back wages. The Court emphasized the importance of interpreting the Industrial Disputes Act to achieve its social welfare objectives and rejected the applicability of Article 137 of the Limitation Act to proceedings under the Act.