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Manager (Factory), Maharashtra State Cooperative Marketing Federation Ltd. v. Suresh Dadarao Gadge

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 27 of 2015)Decided 17 Dec 2014
Civil Appeal No. 27 of 2015
Justice Anil R. Dave · Justice R. Banumathi

Background

A daily wage peon was discontinued after about a year and a half without retrenchment compensation. The Labour Court ordered reinstatement with continuity but no back wages, and the High Court affirmed it. The employer challenged reinstatement, pointing to the irregular appointment and closure of the unit where he worked.

Decision Breakdown

The Supreme Court allowed the employer's appeal to the extent of replacing reinstatement with compensation. The worker's short daily wage service, irregular recruitment and closure of the unit made reinstatement inappropriate in these particular circumstances. The employer was ordered to pay ₹2 lakh within four weeks. The worker was also permitted to withdraw ₹25,000 already deposited in the Supreme Court Registry as costs; the decision did not award back wages.

Lesson Learnt

A termination that fails retrenchment requirements does not always result in reinstatement. Courts may award monetary compensation where the worker's service history and closure of the workplace make reinstatement unsuitable.

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

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