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Management of Narendra & Company Pvt. Ltd. v. Workmen of Narendra & Company

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 14 of 2016)Decided 4 Jan 2016
Civil Appeal No. 14 of 2016
Justice Kurian Joseph · Justice Rohinton Fali Nariman

Background

A Labour Court had ordered reinstatement of retrenched workmen with 50% back wages. On challenge, a Single Judge of the Karnataka High Court found the industry had closed by the beginning of January 1995 and limited back wages to that date, since reinstatement in a closed industry was not possible. On intra-court appeal, a Division Bench, without any fresh evidence, instead extended the 50% back wages and related benefits up to January 1999, reasoning there wasn't enough proof of exactly when the factory stopped functioning.

Decision Breakdown

The Supreme Court held that the Division Bench was wrong to overturn the Single Judge's factual finding on the closure date without any new material and without finding that finding "perverse": in an intra-court appeal, a mere difference of opinion on facts is not enough to disturb a Single Judge's finding. The Court noted that during the Supreme Court proceedings, the company itself had filed an affidavit confirming the industry became non-functional from the beginning of January 1995, which the workmen's side did not rebut. Accordingly, the order extending back wages/benefits beyond January 1995 was vacated, while the rest of the Division Bench's order (on reinstatement being replaced by compensation) was left undisturbed, with payment due within three months (plus 10% interest if delayed).

Lesson Learnt

An appellate bench hearing an intra-court appeal cannot simply substitute its own view for a trial/single judge's factual findings unless it specifically finds those findings to be perverse or unsupported by evidence: a "better view" is not a valid ground to overturn a factual finding.

Official source (sci.gov.in)View Judgment (PDF)

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