Case Note & Summary
The High Court of Gujarat allowed a Special Civil Application filed by seven petitioners who were reinstated by the Labour Court after termination of their services as laborers. The Labour Court awards were silent on continuity of service, leading the respondents to deny continuity benefits and benefits under Government Resolution dated 17.10.1988. The Court held that when reinstatement is granted without specifically denying continuity, continuity of service is implied. Relying on Supreme Court precedent and a binding coordinate bench decision, the Court directed the respondents to grant continuity of service and all consequential benefits including pay fixation under 6th and 7th Pay Commissions, merger of 50% DA, and benefits under Government Resolution dated 17.10.1988. The Court rejected the respondents' argument that facts were different, finding the case squarely covered by precedent.
Headnote
Labour & Service Law-- Industrial Disputes Act, 1947-- Petitioners were working as labourer with respondent no.2-- Working period was between 1985 to 1994-- Termination of Services-- Challenged before labour court-- Reinstatement awarded to each petitioners However no order as to continuity of services passed by labour court- No benefit of Government Resolution 17.10.1988 given to the petitioners - Dissatisfaction and aggrieved-- Challenged by petitioners before High court-- Case of Bhagwanbhai Motibhai Malivad referred and relied upon-- Award silent on the aspect of continuity of service-- Judgment and order passed in the case of Bhagwanbhai Motibhai Malivad confirmed by Division bench in Letters Patent Appeal also-- Once reinstatement is awarded by labour court, the continuity of service would follow as a matter of course-- Direction to respondent no.2 to grant all benefits flowing from G.R dated. 17.10.1988 to the petitioners-- Observations-- Petition allowed Para-- 8, 9, 10
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Issue of Consideration: Whether in a Labour Court award, if the award is silent with regard to continuity of service and such continuity is not specifically denied, the same can be construed as continuity of service or not
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Final Decision
The Court allowed the petition, directing the respondents to grant continuity of service to the petitioners from their initial dates of appointment until reinstatement, and to grant all consequential benefits including pay fixation under 6th and 7th Pay Commissions, merger of 50% DA, and benefits under Government Resolution dated 17.10.1988, to be completed within three months
