Case Note & Summary
The appeals arose from a judgment of the Madras High Court affirming a Labour Court award directing reinstatement with 50% back wages for ten NMR (Nominal Muster Roll) workers who were engaged as Store Watchmen on daily wages between 1986-1989 by the TWAD Board. Their services were terminated in 1990 when sectional stores were closed and replaced by divisional stores. The workers raised an industrial dispute, and the Labour Court at Madurai held the termination invalid and directed reinstatement with full back wages and continuity of service. The Board challenged this in a writ petition. The Single Judge upheld reinstatement but reduced back wages to 50%, noting that the workers had not produced documents proving 240 days of continuous work, though the Board also failed to produce contrary evidence. The Division Bench dismissed the Board's appeal. The Supreme Court granted leave and heard the matter. The Court observed that the initial burden to prove 240 days of continuous work lies on the workmen, and both lower courts erred in shifting that burden to the employer. However, since most workers had attained superannuation, reinstatement was no longer viable. The Court focused on the quantum of compensation. It noted that the Board had already paid Rs.2,00,000 to each worker (except one deceased) as per an interim order, plus amounts under Section 17-B of the Industrial Disputes Act. The Court directed that all amounts already paid, including the Rs.2,00,000, shall be treated as full and final settlement of all claims, including 50% back wages and compensation in lieu of reinstatement. For the deceased worker M. Muthuswamy Nadar, the Rs.2,00,000 shall be paid to his legal representatives. Amounts lying in deposit with the Labour Court or High Court were ordered to be refunded to the Board. The judgment was passed in the peculiar facts and circumstances and not to be quoted as a precedent.
Headnote
A) Industrial Disputes Act - Burden of Proof - Continuous Service of 240 Days - Section 25-B, Industrial Disputes Act, 1947 - Initial burden lies on workmen to prove they have worked continuously for 240 days in a year; only upon discharge of that burden does it shift to the employer. Both Single Judge and Division Bench erred in placing burden on employer. (Paras 9-10) B) Industrial Disputes Act - Compensation in Lieu of Reinstatement - Superannuated Workers - Sections 11-A, 25-F, Industrial Disputes Act, 1947 - Where workmen have attained superannuation, reinstatement is not feasible; compensation in full and final settlement of all claims, including back wages, is appropriate. (Paras 10-11) C) Industrial Disputes Act - Back Wages - Quantum - Section 17-B, Industrial Disputes Act, 1947 - Amounts paid under Section 17-B and additional sums ordered by court can be treated as back wages and compensation in lieu of reinstatement, discharging all claims. (Paras 10-11)
Issue of Consideration
Whether the High Court was correct in affirming reinstatement and 50% back wages for NMR workers who failed to prove 240 days continuous work, and what compensation is payable in lieu of reinstatement for workers who have attained superannuation.
Final Decision
Appeals disposed of with directions that amounts already paid (including Rs.2,00,000 per worker ordered by Supreme Court) shall be treated as full and final settlement of all claims, including 50% back wages and compensation in lieu of reinstatement. For deceased worker M. Muthuswamy Nadar, Rs.2,00,000 to be paid to legal representatives. Amounts lying in deposit with Labour Court/High Court to be refunded to Board. Judgment not to be quoted as precedent.
Law Points
- Burden of proof for continuous 240 days work lies on workmen
- Section 25-B of Industrial Disputes Act
- 1947
- Compensation in lieu of reinstatement for superannuated workers
- Full and final settlement of claims
