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M/s Universal Glass (A Division of Jagajit Industries Ltd.) v. Harpal Singh

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 4856 of 2016)Decided 5 May 2016
Civil Appeal No. 4856 of 2016
Justice Kurian Joseph · Justice Rohinton Fali Nariman

Background

Harpal Singh, a workman, had been terminated by his employer, Universal Glass (a division of Jagajit Industries Ltd.), and had successfully challenged the termination before the Labour Court and the High Court. By the time the matter reached the Supreme Court, the company itself had shut down in 2014 after prolonged litigation between the parties.

Decision Breakdown

Given the company's closure and the long-running dispute, the Supreme Court proposed a one-time payment to end the litigation. The employer's counsel noted that other similarly situated workers had already settled their dues for around Rs. 4 lakhs each, but the Court held that, given the prolonged litigation and the workman's success before both the Labour Court and High Court, justice required a higher amount. The Court directed the appellant to pay Rs. 7 lakhs to the respondent within two months in full and final settlement of all his claims, while expressly clarifying that this amount was fixed on the peculiar facts of this case and was not to be treated as a precedent.

Lesson Learnt

The Supreme Court can tailor a final settlement amount to the specific facts of prolonged litigation (including a company's closure) rather than applying a blanket formula used for other workers, but such a bespoke resolution is explicitly non-precedential and cannot be relied on by others in similar disputes.

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

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