Court Upholds Illegality of Termination but Adjusts Compensation for Casual Workers Based on Service Length
In a significant decision, the Delhi High Court has modified the compensation awarded to casual workers of Indian Airlines, who were terminated without compliance with Section 25-F of the Industrial Disputes Act, 1947. The judgment, delivered by Ms. Shail Jain J, upheld the illegality of the termination but adjusted the compensation to reflect the length of service rendered by the workers.
The case, titled "Sauraj Singh v. M/s Indian Airlines Ltd & Anr," involved multiple petitions challenging the awards passed by the Central Government Industrial Tribunal (CGIT). The Tribunal had previously directed the management to pay compensation ranging from Rs. 25,000 to Rs. 55,000 in lieu of reinstatement. The High Court modified this compensation to Rs. 1,25,000 for one year of service, Rs. 2,50,000 for two years, and Rs. 3,75,000 for three years or more.
The dispute arose from the termination of services of casual workers employed by Indian Airlines between 1993 and 1998. The workers claimed that their termination was in violation of statutory provisions, as they had rendered more than 240 days of continuous service. The CGIT had found the termination to be illegal but opted for monetary compensation over reinstatement, considering the nature of employment and time elapsed.
The High Court, while maintaining the finding of illegal termination, concluded that reinstatement was not appropriate due to the casual nature of employment and the passage of time since termination. It emphasized that compensation should be proportionate to the length of service, as determined by the Supreme Court guidelines in "Amit Kumar Dubey v. M.P.P.K.V.V. Co. Ltd."
The judgment also clarified the maintainability of writ petitions against private entities like Air India, post-privatization. It noted that while Air India may not ordinarily be amenable to writ jurisdiction, judicial review is applicable when a dispute arises from an award of a Labour Court or Industrial Tribunal.
This decision marks a crucial step in balancing the rights of workers with the practicalities of employment conditions, providing a precedent for future cases involving casual workers in India.
Bottom line:-
Industrial Disputes - Workmen engaged as casual workers and terminated without compliance with Section 25-F of the Industrial Disputes Act, 1947 - Tribunal awarded compensation in lieu of reinstatement - High Court upheld illegality of termination but modified compensation in accordance with proportionality based on length of service.
Statutory provision(s): Industrial Disputes Act, 1947 Sections 25B, 25F; Constitution of India, 1950 Articles 226, 227
Sauraj Singh v. M/s Indian Airlines Ltd, (Delhi) : Law Finder Doc id # 2894796
