Case Note & Summary
The Gujarat High Court heard two analogous writ petitions filed by Gujarat Energy Transmission Corporation Ltd. (GETCO) challenging orders of the Labour Court, Bhavnagar. The dispute originated from industrial disputes raised by workmen challenging their oral terminations in 2013 and 2014, which culminated in Reference Cases before the Labour Court. The Labour Court passed an ex-parte award on 26.05.2023 directing reinstatement of the workmen with 20% back wages. GETCO filed applications to set aside this ex-parte award, with delay condonation applications that were allowed, but the substantive applications were dismissed by the Labour Court on 15.03.2024. GETCO then approached the High Court under Articles 226 and 227 of the Constitution read with the Industrial Disputes Act, 1947. The core legal issues involved whether the Labour Court erred in dismissing the applications to set aside the ex-parte award despite condoning the delay, and whether the matters should be remanded for fresh hearing. GETCO argued that due to the second wave of COVID-19, they could not participate in proceedings and should be given opportunity to defend on merits rather than being non-suited on technicalities. The workmen supported the Labour Court's orders. The Court analyzed the record and found that while the Labour Court had condoned the delay, it still dismissed the applications without proper consideration. The Court noted the Labour Court had found breach of Sections 25(F) and 2(oo) of the Industrial Disputes Act in passing the ex-parte award. Considering the COVID-19 circumstances and the need for proper opportunity, the Court held that the matters deserved remand. The Court partly allowed the petitions, quashing both the ex-parte award and the dismissal order, and remanded the matters to the Labour Court for fresh hearing after giving proper opportunity to all parties.
Headnote
A) Constitutional Law - Writ Jurisdiction - Articles 226 & 227 of Constitution of India - The petitioner-employer challenged the Labour Court's order dismissing applications to set aside an ex-parte award - The High Court exercised its supervisory jurisdiction under Articles 226 and 227, finding that the Labour Court had condoned delay but still dismissed the applications without proper consideration of merits - Held that the matters deserved remand for fresh hearing to ensure justice (Paras 3, 5, 9-10). B) Labour Law - Industrial Disputes - Setting Aside Ex-Parte Awards - Industrial Disputes Act, 1947 - The petitioner sought to set aside an ex-parte award directing reinstatement with 20% back wages - The Labour Court had dismissed the applications despite condoning delay caused by COVID-19 pandemic - The High Court found that the petitioner should have been given opportunity to defend on merits rather than being non-suited on technicalities - Held that the ex-parte award and dismissal order were quashed and matters remanded for fresh hearing (Paras 3-4, 7, 9-10). C) Labour Law - Termination Disputes - Sections 25(F) and 2(oo) of Industrial Disputes Act, 1947 - The respondent-workmen challenged oral terminations dated 01.11.2014 and 04.02.2013, seeking reinstatement with full back wages - The Labour Court found breach of Sections 25(F) and 2(oo) and passed ex-parte award - The High Court remanded the matters for fresh consideration of these statutory provisions after proper hearing (Paras 4, 9-10). D) Civil Procedure - Delay Condonation - COVID-19 Pandemic Impact - The petitioner cited inability to participate in proceedings due to second wave of COVID-19 as reason for delay - The Labour Court condoned the delay in filing applications but still dismissed them - The High Court considered this factor significant in deciding to remand matters for fresh hearing to ensure proper opportunity (Paras 4, 7, 9).
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Issue of Consideration: Whether the Labour Court erred in dismissing the applications to set aside the ex-parte award despite condoning the delay, and whether the matters should be remanded for fresh hearing on merits
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Final Decision
Both petitions are partly allowed. The impugned Award dated 26.05.2023 passed by the Labour Court, Bhavnagar, in Reference (LCB) Case Nos. 53 of 2020 & 52 of 2020 respectively are quashed and set aside, as well as the order dated 15.03.2024 passed by the Labour Court, Bhavnagar, in I.D. (Miscellaneous) Application Nos. 9 of 2023 & 8 of 2023 respectively are also quashed and set aside. The matters are remanded back to the Labour Court, Bhavnagar. The aforesaid References are restored to their original files. The Labour Court, Bhavnagar, shall decide the aforesaid References afresh in accordance with law, as expeditiously as possible, after giving proper opportunity of hearing to all the concerned parties. Rule is made absolute to the aforesaid extent. Direct service is permitted.
