Supreme Court Modifies Back Wages to 10% for Habitually Absent Employee in Termination Dispute with ONGC. Termination under Regulation 24 of 1975 Regulations held illegal due to long service, but back wages reduced to 10% considering habitual absence and delay in approaching Labour Court.

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Case Note & Summary

The case involves a dispute between Anjana Mittal (appellant) and Oil and Natural Gas Corporation Limited (respondent) regarding the termination of her services. The appellant was appointed as a temporary Assistant Grade III in 1983. Between 1987 and 1993, she remained absent for 1968 days, which was ex post facto sanctioned as medical leave. In 1990, she was promoted to temporary Assistant Grade II. A Medical Board in 1992 found that the leave granted based on her medical certificates was disproportionate to the severity of ailments. In 1994, after a show cause notice and unsatisfactory reply, her services were terminated w.e.f. 01.12.1993 under Regulation 24 of the 1975 Regulations, which applies to temporary employees. The appellant challenged the termination by filing a writ petition in 2001, which was dismissed in 2004. A special appeal was dismissed in 2006 on maintainability grounds, holding she was a workman. She then approached the Labour Court in 2008, which in 2018 held the termination illegal and directed reinstatement with full back wages. The respondent's writ petition was partly allowed by the High Court, which upheld the illegality of termination but reduced back wages to 30%. Both parties appealed to the Supreme Court. The Supreme Court upheld the High Court's finding that termination was illegal, as the appellant had served over eleven years and could not be treated as temporary, and termination without inquiry was invalid. However, considering her habitual absenteeism (1968 days absence in seven years, average 281 days/year) and the 14-year delay in approaching the Labour Court, the Court reduced back wages to 10% of what would have been payable. The Court ordered reinstatement but directed that the respondent need not provide work; instead, the appellant would be paid salary from the date of judgment until her superannuation in May 2020. Both appeals were disposed of with these modifications.

Headnote

A) Service Law - Termination of Temporary Employee - Regulation 24 of Terms and Conditions of Appointment and Service Regulation, 1975 - Employee with over eleven years of service cannot be treated as temporary - Termination under Regulation 24 held illegal - High Court's finding upheld that termination without inquiry is invalid (Paras 9-10).

B) Service Law - Back Wages - Habitual Absentee - Employee remained absent for 1968 days in seven years (average 281 days/year) - Medical Board found leave disproportionate to ailments - Despite regularization of leave, conduct relevant for back wages - 10% back wages awarded instead of 30% by High Court (Paras 11-13).

C) Industrial Dispute - Delay in Reference - Employee approached Labour Court after 14 years due to pursuing wrong forum - Delay condoned but considered in reducing back wages (Para 12).

D) Service Law - Reinstatement without Work - Employee nearing retirement - Reinstatement ordered but employer not obliged to provide work - Salary to be paid from date of judgment till superannuation (Para 13).

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Issue of Consideration

Whether the termination of the appellant under Regulation 24 of the 1975 Regulations was justified; and what quantum of back wages should be awarded considering the appellant's habitual absence and delay in approaching the Labour Court.

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Final Decision

The Supreme Court upheld the High Court's finding that termination was illegal, but modified the back wages from 30% to 10% of full back wages. The appellant is to be reinstated but the respondent is not obliged to provide work; instead, the appellant shall be paid salary from the date of judgment till her superannuation in May 2020. Both appeals disposed of with no order as to costs.

Law Points

  • Termination of temporary employee
  • Regulation 24 of 1975 Regulations
  • Back wages for habitual absentee
  • Delay in approaching Labour Court
  • Reinstatement without work
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Case Details

2019 lawtext (SC) (7) 134

Civil Appeal No. 5937 of 2019 (arising out of SLP(C) No. 30953 of 2018) and Civil Appeal No. 5938 of 2019 (arising out of SLP(C) No. 548 of 2019)

2019-07-26

Uday Umesh Lalit, Vineet Saran

P.S. Patwalia (for appellant), J.P. Cama (for respondent)

Anjana Mittal

Oil and Natural Gas Corporation Limited

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Nature of Litigation

Civil appeals against High Court judgment partly allowing writ petition challenging Labour Court award of reinstatement with full back wages.

Remedy Sought

Appellant sought full back wages; respondent sought upholding of termination or reduction of back wages.

Filing Reason

Appellant challenged termination order dated 01.07.1994; respondent challenged Labour Court award of reinstatement with full back wages.

Previous Decisions

Labour Court held termination illegal and directed reinstatement with full back wages; High Court upheld illegality of termination but reduced back wages to 30%.

Issues

Whether termination under Regulation 24 of 1975 Regulations was justified for a temporary employee with over eleven years of service? What quantum of back wages should be awarded considering habitual absence and delay in approaching Labour Court?

Submissions/Arguments

Appellant argued she worked over eleven years, could not be treated as temporary, absence was ex post facto sanctioned as leave, and termination was unjustified; full back wages should be restored. Respondent argued appellant was temporary, habitual absentee (1968 days in seven years), Medical Board found leave disproportionate, termination justified; at best, lump sum compensation instead of reinstatement and back wages.

Ratio Decidendi

An employee with over eleven years of service cannot be treated as temporary under Regulation 24 of the 1975 Regulations, and termination without inquiry is invalid. However, habitual absenteeism and delay in approaching the Labour Court are relevant factors in reducing back wages.

Judgment Excerpts

the High Court has rightly held that the termination of the appellant in terms of Regulation 24 of the 1975 Regulations, treating the appellant as a temporary employee, was not justified in law and thus could not be sustained, as she had been in employment for over eleven years. the appellant continued to remain absent for long periods between the years 1987 to 1993... an average of over 281 days per year... would clearly indicate that the appellant was a habitual absentee. the ends of justice would be met if the appellant is paid 10% back wages, along with the benefit of reinstatement and all other consequential benefits.

Procedural History

1983: Appellant appointed as temporary Assistant Grade III. 1994: Termination order passed. 2001: Writ petition filed in Allahabad High Court. 2004: Writ dismissed. 2006: Special appeal dismissed on maintainability. 2008: Reference made to Labour Court. 2018: Labour Court awarded reinstatement with full back wages. 2018: High Court reduced back wages to 30%. 2019: Supreme Court modified back wages to 10% and ordered reinstatement without work.

Acts & Sections

  • Terms and Conditions of Appointment and Service Regulation, 1975: Regulation 24
  • Industrial Disputes Act, 1947:
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