2023 (8) TMI 984 - SC - Indian Laws

Supreme Court Upholds Decision on Worker Retrenchment, Orders Reinstatement and Back Wages

Their Workmen through the Joint Secretary (Welfare), Food Corporation of India Executive Staff Union Versus Employer in relation to the Management of the Food Corporation of India & Anr.

Their Workmen through the Joint Secretary (Welfare), Food Corporation of India Executive Staff Union Versus Employer in relation to the Management of the ... Issues Involved:1. Legality of retrenchment of 21 casual workers by Food Corporation of India (FCI).2. Entitlement of the workmen to reinstatement and back wages.3. Regularization of the services of the workmen.Summary:1. Legality of Retrenchment:The Tribunal found that the 21 workmen were engaged as casual workers by FCI at Patna and their retrenchment was void as they were neither given notice nor paid compensation, violating Section 25F of the Industrial Disputes Act, 1947. The Tribunal directed reinstatement and regularization in Class-IV posts with 75% back wages from the date of retrenchment (10.05.1990).2. Entitlement to Reinstatement and Back Wages:The Jharkhand High Court upheld the Tribunal's finding that the workmen had worked for 240 days in the preceding 12 months and were terminated without complying with mandatory provisions. The High Court noted that the management did not distinguish these workmen from others who had been regularized. Consequently, the High Court dismissed the writ petition, upholding the Award in its entirety.3. Regularization of Services:The Division Bench of the Jharkhand High Court modified the order by quashing the Award's direction for regularization, stating that such relief could not be sustained as there was no term of regularization in the reference of the industrial dispute. However, the direction to pay 75% of back wages remained untouched.Supreme Court's Decision:The Supreme Court noted that the management of FCI did not contest the reinstatement and payment of back wages before the Division Bench. The management's appeal was dismissed on the grounds that it had voluntarily implemented the Award, including the absorption of workmen in regular service, and allowed the situation to continue for 18 years. The appeal by the Executive Staff Union of FCI was allowed, restoring the order of the learned Judge and the Award of the Tribunal. The Division Bench's judgment was set aside, and the appeal by the management of FCI was dismissed. Pending I.A.s were closed, and parties were to bear their own costs.