Baburao Dadu Sankpal (D) Thr L.Rs. v. Kolhapur Zilla Sahakari Doodh Utpadak Sangh, Kolhapur & Ors.
Background
An employee of a dairy cooperative society (Sangh), who had joined service in 1986, was terminated in 1996 for alleged unauthorized absence from October 1994. The Labour Court set aside the termination as disproportionate, but the Industrial Court reversed this and upheld the punishment, a view the High Court also affirmed. The workman died in 2013 during the pendency of proceedings before the High Court, and his legal representatives continued the litigation, eventually appealing to the Supreme Court.
Decision Breakdown
The Supreme Court did not go into the merits of whether the termination itself was justified. Instead, considering that the dispute dated back over two decades to 1996 and that evidence showed the deceased had owned a truck (suggesting some independent means), the Court held that the interests of justice would be best served by awarding a lump-sum monetary compensation rather than reviving the employment dispute. It directed the employer (Respondent No. 1) to pay a one-time compensation of Rs. 2,00,000 to the deceased's legal heirs within three months, in full and final settlement of all claims arising from his service, with no other claims permitted thereafter.
Lesson Learnt
In very old labour disputes, especially where the worker has since died, courts may choose to resolve the matter through a practical one-time monetary settlement rather than reopening decades-old findings on the fairness of a dismissal, providing finality and relief to the family without reviving the underlying employment question.