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Precision Camshafts Limited vs Namdeo Nagnath Navgire
2025 Latest Caselaw 3047 Bom

Citation : 2025 Latest Caselaw 3047 Bom
Judgement Date : 6 March, 2025

Bombay High Court

Precision Camshafts Limited vs Namdeo Nagnath Navgire on 6 March, 2025

 2025:BHC-AS:11649
          Digitally
          signed by
          CHAITANYA
CHAITANYA ASHOK
ASHOK
JADHAV
          JADHAV
          Date:
          2025.03.12
                       Chaitanya                                                    Judgment-1--Wp-1855-2022.doc
          18:58:58
          +0530




                          IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                        CIVIL APPELLATE JURISDICTION

                                         WRIT PETITION NO. 1855 OF 2022

                       Precision Camshafts Limited
                       E-90, MIDC, Akkalkot Road,
                       Solapur - 413 006.                                          ...Petitioner

                                               V/s.

                       Amol Gopinath Kamble,
                       Age : 33 Years, Occu.: Nil,
                       R/o : At Madare, Post Kumthe,
                       South Solapur, Solapur.                                   ...Respondent

                                                    WITH
                                         WRIT PETITION NO. 1860 OF 2022

                       Precision Camshafts Limited
                       E-90, MIDC, Akkalkot Road,
                       Solapur - 413 006.                                          ...Petitioner

                                               V/s.

                       Namdeo Nagnath Navgire,
                       Age : 30 Years,
                       R/o : 173, Rahul Nagar, Majarewadi,
                       Hotgi Road, District Solapur.                             ...Respondent

                                                    WITH
                                         WRIT PETITION NO. 1858 OF 2022

                       Precision Camshafts Limited
                       E-90, MIDC, Akkalkot Road, Solapur
                       - 413 006.                                                   ...Petitioner

                                                V/s.


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Parshuram Amogi Jadhav,
Age : 43 Years, Occu.: Nil,
R/o. 11, Subhash Shah Nagar Colony,
Jule Solapur, Solapur.                                     ...Respondent

                           WITH
                WRIT PETITION NO. 1857 OF 2022

Precision Camshafts Limited
E-90, MIDC, Akkalkot Road, Solapur
- 413 006.                                                 ...Petitioner

                       V/s.

Chandrakant Shivchalappa Bondage,
Age : 31 Years, Occu.: Nil,
R/o. 362, Bharatratna Indira Nagar,
Near Sharan Math, MIDC Akkalkot
Road, Dist. Solapur                                        ...Respondent

                                   ______________

Mr. Kiran Bapat, Senior Counsel i/b Mr. Sarang Aaradhye, Ms.
Gauri Velankar, Mr. Gaurav Gawande for Petitioner.

Mr. Shafi Kazi with Ms. Sneha Pokle, Adv. Biju Joseph, Mr. T. V.
Loris, Ms. Anjali Nair i/b KLT Law Associates for Respondent.
                          ______________


                                     CORAM : SANDEEP V. MARNE, J.
                                         Dated : 6 March 2025.
ORAL JUDGMENT :

1) These Petitions are filed by the Petitioner-employer challenging the Judgment and Order dated 12 October 2021,

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passed by the Member, Industrial Court, Solapur, allowing the Revision Applications filed by the Respondent-workmen and setting aside the Judgment and Order dated 3 March 2016 passed by the Labour Court. The Industrial Court while allowing the Revision Applications, has directed reinstatement of the Respondent-workmen with full back wages from the date of their discharge i.e. 28 June 2014.

2) The Petitioner is engaged in manufacture and supply of camshafts in automobile sector. Petitioner used to operate two foundry units at Akkalkot Road MIDC and Chincholi MIDC within Solapur District. According to the Petitioner, there was reduction in the production activity, on account of which decision was taken to shift the employees working in Akkalkot Road unit to Chincholi unit. In respect of those employees who have not willing to work at Chincholi unit, they were offered voluntary retirement. According to Petitioner, a notice dated 27 January 2014 was published at the Akkalkot Road unit giving three options of alternate employment at Chincholi MIDC, voluntary retirement or retrenchment. Along with the notice, copy of agreement executed with the recognized unit was also appended.

3) It is Petitioner's case that most of the employees working at Akkalkot Road unit either accepted the option of alternate employment at Chincholi unit or voluntary retirement. The four workmen involved in the present Petitions, however, did not respond to the Notice dated 27 January 2014. One of them

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apparently lodged First Information Report, under the provisions of the Scheduled Castes And the Scheduled Tribes (Prevention Of Atrocities) Act, 1989 ("the Atrocity Act"), against one of the managerial employees of the Petitioner. Petitioner terminated the services of the Respondents by orders dated 28 June 2014 alleging various misconducts, such as threatening the management representatives, defaming the company by giving false interviews and misbehavior etc. It was stated in the termination order that the employer had loss of confidence in the workmen and that therefore it was not possible to conduct domestic enquiry against them.

4) The termination orders were challenged by the Respondents by filing complaints of unfair labour practice before the Labour Court, Solapur. The complaints were resisted by the Petitioners by filing written statements. Both the parties led evidence in support of respective cases. After considering the pleadings, documentary and oral evidence, the Labour Court proceeded to dismiss the complaints by Judgments and Orders dated 3 March 2016. In Revision, however, the Industrial Court, Solapur, has reversed the decisions of the Labour Court and has set aside the same. By its Judgments and Orders dated 12 October 2021, the Industrial Court has directed reinstatement of the Respondents with full back wages w.e.f. 28 June 2014. Petitioner-employer has filed these Petitions challenging the Judgments and Orders passed by the Industrial Court on 12 October 2021.




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5)           The Petitions came to be admitted by order dated 1

February 2024 and implementation of the orders of the Industrial Court was stayed. At the instance of the Respondent- employees, the Petitions are taken out for final hearing.

6) I have heard Mr. Bapat, the learned senior advocate appearing for Petitioner. He would submit that the Respondents were duly offered three options vide notice dated 27 January 2014. That the Petitioner was willing to offer alternate employment to the Respondents at Chincholi MIDC foundry and since such offer was voluntarily not accepted by them, the Industrial Court could not have directed reinstatement with back wages. He would submit that almost all workmen in the Petitioner-factory at Akkalkot Road accepted either options 'A' or 'B' and accordingly started working at Chincholi MIDC or took voluntary retirement. That despite giving such fair offers to all the employees rather than going ahead with retrenchment, the four Respondent-employees deliberately did not accept the said offer and started misbehaving with the managerial staff with a view to cause damage to the reputation of the company. He would submit that instead of exercising the options as per notice dated 27 January 2014, the four Respondents-workmen were found to have indulged in activities of lodging false FIRs under the Atrocities Act, repeatedly threatened the managerial staff and insisting that they must be offered work at Akkalkot MIDC unit. That on account of atmosphere of terror created by the Respondent-workmen, it was not feasible to conduct a domestic

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inquiry against them and after waiting for more than four months, the Petitioner-employer was left with no other option, but to terminate the services of the four Respondents.

7) Mr. Bapat would further submit that the Labour Court has rightly appreciated the evidence on record while dismissing the complaints. He would submit that the Petitioner-employer justified the termination by leading evidence before the Labour Court. That the Industrial Court has exceeded the revisional jurisdiction under Section 44 of the M.R.T.U and P.U.L.P. Act, 1971 in reversing well considered decisions of the Labour Court. He would accordingly pray for setting aside the Orders passed by the Industrial Court.

8) The Petitions are opposed by Mr. Kazi, the learned counsel appearing for the Respondent-workmen. He would submit that the Petitioner failed to follow due process of law, while terminating the services of the Respondents. That there is neither any show cause notice nor a warning and directly their services are terminated by arbitrary orders dated 28 June 2024. He would submit that conduct of domestic enquiry was mandatory in the facts and the circumstances of the present case since termination was stigmatic. He would submit that the management has not been able to justify its allegations about commission of misconduct by the Respondent-workmen. That their services could not have been terminated unceremoniously by later trying to justify the action of termination by leading

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evidence before the Labour Court. That there is nothing on record to indicate that the four workmen were communicated any options by the Petitioner.

9) Mr. Kazi would further submit that the workmen were interviewed by a TV Channel while they were waiting outside the factory premises and that there was no malafide intention on their part to harm the reputation of the company. That the Labour Court's Order was without application of mind. He would rely upon the provisions of clause 25(iv) of the Model Standing Order, under which issuance of charge-sheet to the delinquent employee is mandatory condition before termination of services. He would submit that past record of the Respondents was not even considered where they were rewarded with several awards. That in any case, there is total absence of evidence relating to the allegations levelled in the termination notice.

10) In support of his contentions Mr. Kazi would rely upon the following Judgments.

(i) Sandeep Kumar V/s. GB Pant Institute of Engineering and Technology Ghurdauri & Ors., reported in 2024 II CLR 246.

(ii) L. Michael And Anr. V/s. M/s. Johnson Pumps India Ltd. (Civil Appeal No. 1605 of 1972, dated 10 th February, 1975).

(iii) The Workmen of Firestone Tyre And Rubber Co. of India (Pvt.) Ltd. V/s. The Management and Ors. (Civil Appeal Nos. 1461, 1995, 1996 and 2386 of 1972).




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(iv) Dharmarathmakara Raibahadur Arcot Ramaswamy Mudaliar Educational Institute V/s. Education Appellate Tribunal And Anr. reported in 1999 SCC (L&S) 1288.

11) Mr. Kazi would further submit that the Respondents were deliberately harassed on account of the fact that they belong to lowest strata of the society. He would take me through the FIR lodged at instance of one of the Respondents. He would therefore submit that the Industrial Court has rightly set aside the termination by directing reinstatement with full back wages. He would accordingly pray for dismissal of the Petitions.

12) Rival contentions of the parties now fall for my consideration.

13) In the present case, the Petitioner has raised a plea that there was substantial reduction in manufacturing activities and therefore it was decided to reduce the workers employed at Akkalkot Road foundry. However instead of retrenching the services of the workmen or to opt for layoff, the Petitioner decided to offer employment to the workmen engaged in Akkalkot Road foundry at its another foundry at Chincholi. Petitioner has relied on following notice issued on 27 January 2014.

दि नांकः२७/०१/२०१४ नोटीस सर्व कामगारांना कळदिर्वण्यात येते की, कंपनीची सद्य परिरस्थि!"ती र्व भदिर्वष्यातील एकं रीत ऑडस र्व त्यानुसारचा अपेक्षि-त व्यर्वसाय याबाबत व्यर्व!"पनाने प्रक्षितदिनधींशी चचा केलेली असून चच5अंती व्यर्व!"ापनाची भूदिमका र्व धोरण !पष्ट !र्वरुपात मांडल्यानंतर कंपनीला उत्पा नात

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कपात झाल्याने अक्षितरिरक्त होणऱ्या कामगारांच्या पुनर्वसनाबाबत चचा झाली आहे. त्यानुसार इच्छुकांना व्यर्व!"ापनाच्या खालील तीन पयायांपैकी एकाची दिनर्वड करता येईल.

पयाय पयायाचे नांर्व पयाय दिनर्वडण्याची अंक्षितम मु त

पयाय क्रमांक १ चिंचचोळी औद्याेदिगक र्वसाहतीतील फौंड्रीमध्ये पयायी रोजगार !र्वीकारणे दि नांक ३०/०१/२०१४ पु ारी ३.०० पयत पयाय क्रमांक २ !र्वेच्छा दिनर्वृत्ती

पयाय क्रमांक ३ कायद्यातील तरतु ीनुसार कामगार कपात

या करारासोबत लार्वलेल्या या ीतील १६१ शेर्वटी कामार्वर रुजू झालेल्या कामगारांनी इच्छे नुसार पयात दिनर्वडार्वा. स रची पसंती असल्यास एच आर दिर्वभागात मान्यतेची सही करुन द्यायची आहे याची नों घ्यार्वी.

दिप्रसिसजन कॅमशाफ्टस् लिलदिमटेडकरीता

आर के काशिश जनरल मॅनेजर-एच आर.

14) The agreement executed with the recognized union was also appended to the notice dated 27 January 2014. Perusal of the said agreement would indicate that there were following stipulation in para Nos.1, 2, 3 and 4.

कराराच्या शत[

१. स रचा करार हा दि नांक ०७/०८/२०१२ रोजीच्या उत्पा नाशी दिनगडीत र्वेतनर्वाढ र्व इतर सेर्वाशत^बाबतच्या कराराचा एक भाग आहे असे समजण्यात येईल.

२. पयाय क्रमाक १ः कागारांचे पुनर्वसनः- व्यर्व!"ापनास कामगार दिहताची पूण जाणीर्व असून कामगारांचा रोजगार दिटकर्वण्यासाठी कामगारांसमोर पयायी रोजगार म्हणून व्यर्व!"ापन या युदिनटमधील अक्षितरिरक्त कामगारांना व्यर्व!"ापनाच्या एक आय डी सी चिंचचोळी येशि"ल फौंड्री दिर्वभागात आहे त्या सेर्वाशत[ लागू ठे र्वून, म्हणजेच पगार, कामार्वर रुजू तारीख, सेर्वाज्येष्ठता इत्या ीमध्ये कोणत्याही !र्वरुपात ब ल न करता समार्वून घेण्यात घेईल. एर्वढेच नव्हे तर अशांना सध्याच्या फौंड्री युदिनटमध्ये ऑक्टोबर २०१४ मध्ये लागू होणरी पगारर्वाढ ही जानेर्वारी २०१४ पासूनच रुपये ८०० पगारर्वाढ र्व पूण हजेरीचा रु. ६२५ इतका इन्सेंटीव्ह असा रु.१४२५ र्वा अक्षिधक फाय ा दिमळे ल. इच्छुक कामगारांना ट्रान्!फरबाबतचे सेर्वाशत[ नों करुन तसे पत्र ेण्यात येईल.

३. पयाय क्रमाक २ - !र्वेच्छा दिनर्वृत्तीः- ज्या कामगारांना पयाय क्रमांक एक अमान्य असेल अशांनी !र्वेच्छा दिनर्वृत्तीचा पयाय दिनर्वडीतील र्व त्यानुसार त्याचे फाय े त्यांना ेण्यात येतील.

 अशांना ९० दि र्वसांचा पगार + स र पगाराच्या १०% अक्षितरिरक्त रक्कम ब-ीस म्हणून.  काम केलेल्या प्रत्येक र्वर्षाासाठी १५ दि र्वसांचा पगार + स र पगाराच्या १०% अक्षितरिरक्त रक्कम ब-ीस म्हणून.

 पात्र कामगारांना ग्रॅच्युईटी ेखील अ ा करण्यात येईल.

पगार म्हणजे मुळ पगार + !पेशल अलौन्स समजण्यात यार्वा. मदिहन्याचा पगार म्हणजे २६ दि र्वसांचा पगार समजण्यात यार्वा.

र्वरील ोन्ही पयाय दिनर्वडीची अंक्षितम मु त दि नांक ३०/०१/२०१४ रोजी पु ारी ३.०० पयmत असेल.

४. पयाय क्रमांक ३ - कामगार कपातः र्वरील ोन्ही पयाय अमान्य असतील तर व्यर्व!"ापन औद्याेदिगक

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दिर्वर्वा कायद्यातील तरतु ीस अनुसरुन सरकारकडू न कामगार कपातीची रिरतसर परर्वानगी दिमळण्यास अज करेल र्व त्यास आमची संमती असेल . र्वरील ोन्ही पयायाची मु त संपल्यानंतर कामगारास स र पयाय (पयाय क्रमाक १ र्व २) दिनर्वडण्यास अपात्र ठरतील.

15) Thus in respect of those workmen, who were not willing to work at Chincholi MIDC, the Petitioner had introduced package for voluntary retirement under which the workmen were supposed to receive pay for 90 days + 10% additional amount. Additionally, they were entitled to receive compensation @ pay for 15 days of work rendered in the past + additional bonus. The workmen were also offered their due amount of gratuity. It is Petitioner's case that despite giving such an attractive offer of alternate employment, or in the alternate handsome amount of compensation, none of the four Respondents approached the Petitioner by exercising one of the three options. It is Petitioner's case that almost all other workmen either opted for voluntarily transfer to Chincholi MIDC or voluntarily retirement.

16) In the above background where Respondents have not responded notice dated 27 January 2014 for over five months, the Petitioner has finally terminated their services by orders dated 28 June 2014. The termination orders dated 28 June 2014 read thus:

दि नांक २८/०६/२०१४ सेर्वा-मुक्तीचा आ ेश

१. तुम्ही कंपनीच्या अक्कलकोट रोड ये"ील युदिनटमध्ये ऑपरेटर या प ार्वर कामास आहात. कंपनीच्या अक्कलकोट रोड ये"ील फौंड्री युदिनटला ग्राहकांकडू न मागणीत मोठी घट झाल्याने , उत्पा नातही कपात करणे भाग पडले होते र्व आहे. त्यामुळे अनेक कामगार अक्षितरिरक्त होत आहे.

२. स र कामगारांना कामार्वरुन कमी करण्याएर्वजी अ"र्वा ले ऑफ ेण्याएर्वजी कंपनीने त्यांना चिंचचोळी औद्याेदिगत र्वसाहतीतील फौंड्रीमध्ये पयायी रोजगार दि नांक ०१/०२/२०१४ रोजीच्या नोटीशीद्वारे उपलब्ध करुन दि ला होता र्व तसे रुजु होण्याकरिरता कळदिर्वले होते. त्याबाबत मा. साहाय्यक कामगार

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आयुक्त सोलापूर यांच्याकडे र्वेळोर्वेळी चचा झालेली आहे र्व उभय प-ांनी सहमती सुध् ा शदिर्वली आहे र्व त्याचा अंमलसुध् ा झालेला आहे. परंतु तुम्ही स र प्र!तार्व धुडकार्वून लार्वला र्व चिंचचोळी औद्याेदिगक र्वसाहतीतील फौंड्रीत हजर होण्यास नकार दि लेला आहे र्व कामार्वर रुजू झालेला नाही.

३. तसेच तुम्ही ररोज कंपनीच्या आत मज[नुसार र्वेळी अर्वेळी प्रर्वेश करुन न करता बेशिश!तपणे र्वागणे, कंपनीच्या अक्षिधकाऱ्यांशी हुज्जत घालणे, अनुक्षिचत बार्व आणणे असे गैरकृत्य केले आहे. तुम्ही कंपनीच्या र्वरिरष्ठ अक्षिधकाऱ्याने दि लेल्या आ ेशाचे पालन करण्यास नकार दि ला असून त्यात कसूर केली आहे.

४. तुम्ही सोलापून इन चॅनेल या रू शन र्वरील !"ादिनक चॅनेलला मुलाखत ेर्वून कंपनी दिर्वरुध् खोटी, आ-ेपाह र्व ब नामीकारक मादिहती दि लेली आहे. स र मुलाखतीचे जाहीर प्र-ेपण दि नांक १२/०३/२०१४ रोजी झाल्याने कंपनीची ब नामी झाली आहे. तसेच जनमाणसातील नार्व लौकीकास र्व प्रक्षितष्ठेस बाधा पोहचली आहे.

५. तुम्ही र्व तुमचे सहकामगार श्री पी ए जाधर्व (काड नंबर ०१२७), श्री ए जी काबंळे (काड नंबर २४११) र्व श्री सी एस बोंडगे (काड नंबर २४२९) यांनी दि नांक १६/०६/२०१४ रोजी सकाळी ९.३० च्या सुमारास प्लांट प्रमुख श्री मं ार कुलकण[ एच आर ऑदिफसमध्ये एच आर साहाय्यक श्री एस एच शि"टे यांचेशी न ै ंदि न कामकाजाबाबत चचा चालू असताना तुम्ही र्व तुमचे र्वरील ३ सहकामगार कोणतीही परर्वानगी न घेता एच आर ऑदिफसमध्ये आलात र्व प्लांट प्रमुखांशी, आम्हांला अक्कलकोट रोड ये"ील युदिनट मध्येच कामाला का घेत नाही? असे असभ्य र्व अर्वाच्च भार्षाेत हुज्जत घातली आशिण म ाटीसुध् ा केली आहे. याूपर्व[सुध् ा तुम्हांस अशा प्रकारच्या गैरर्वतनाबद्दल तोंडी ताकी ेण्यात आली होती, परंतु तुमच्या र्वतणुकीत सुधारणा दि सून येत नाही. सबब तुमच्या अशा प्रकारच्या कृत्यामुळे कंपनीच्या शिश!तीस बाधा पोहचून कंपनीचे र्वातार्वरण तणार्वाचे र्व हशतीचे झालेले आहे . तुम्ही कंपनीच्या दिहतादिर्वरुध् कृत्ये केली आहेत.

६. तसेच तुम्ही र्व तुमचे सहकामगार श्री पी ए जाधर्व (काड नंबर ०१२७), श्री ए जी कांबळे (काड नंबर २४११) र्व श्री सी एस बोंडगे (काड नंबर २४२९) यानी संगनमताने कंपनीतील अक्षिधकाऱ्यांदिर्वरुध् आकसबुध् ीन दिफया ाखल केली / त्यास साहाय्य केले. यामुळे तुमचे कंपनीतील अस्थि!तत्र्व औद्याेदिगक शांततेस बाधा आणणारे आहे. तुमच्या र्वतणुकीमुळे र्व गैरकृत्यामुळे कंपनीतील र्वातार्वरण तणार्वाचे , घबराटीचे र्व हशतीचे बनलेले आहे. सबब अशा परिरस्थि!"तीत खुल्या र्व दिनष्प- (Free & Fair Environment) र्वातार्वरण नसल्यामुळे रिरतसर खातेदिनहाय चौकशी घेणे, पुरार्वा नों दिर्वणे र्व!तूतः र्व प्रत्य-ात शक्य नाही.

७. र्वरील परिरस्थि!"तीमुळे तुम्ही कंपनीचा दिर्वश्वास गमार्वला (Loss of Confidence) आहे. सबब तुम्हास दि नांक २९/०६/२०१४ पासून कंपनीच्या सेर्वेतून मुक्त करण्यात येत आहे. तुम्हांस ेय असलेल्या काय ेशीर रकमांबाबत तुम्ही काग पत्रांची पूतता करार्वी र्व त नंतर काय ेशीर रकमां अ ा करण्यात येईल याची नों घ्यार्वी.

दिप्रसिसजन कॅमशाफ्टस् लिलदिमटेडकरिरता

आर के काशिश जनरल मॅनेजर - एच आर

17) Instead of conducting domestic inquiry, the Petitioner chose to justify its action by leading evidence before the Labour Court. Accordingly, the Petitioner examined Shri. Sanjiv Nagnath Malvatkar as its witness, who led evidence about happening of the events leading to issuance of the charge-sheet. All the four workmen examined themselves in support of their respective claims. I have gone through the evidence of witness Sanjiv Nagnath Malwadkar, who has given a detailed account of

6 March 2025

Chaitanya Judgment-1--Wp-1855-2022.doc

the events. After going through the evidence on record it is difficult to hold that there is total absence of evidence on record for complete exoneration of the Respondents.

18) Mr. Kazi has relied upon various Judgments of this Court, as quoted above, in support of his contention that conduct of domestic enquiry is mandatory condition before termination of the services. However, it is equally well settled that in a given case, the employer may not conduct departmental enquiry but take the risk of proving the charges directly before the Labour Court. Therefore, if evidence in support of misconduct is led before the Labour Court, the issue of validity of termination is required to be tested by considering the evidence led before the Labour Court. In my view therefore there is some evidence on record to prove the misconduct alleged in the termination letter. The Labour Court had rightly appreciated this position and had dismissed the complaints by its orders dated 3 March 2016.

19) As observed above, a special scheme was introduced by the Petitioner management so as to prevent wholesale retrenchment of employees and had offered them either alternate job at Chincholi MIDC or compensation towards VRS. Under the terms and conditions of the agreement, the workers were to be paid compensation representing 90 days pay, compensation @ pay for 15 days for each completed year of service and gratuity. Though it is the case of the Respondent-workmen that the said offer was never communicated to them, it become highly difficult

6 March 2025

Chaitanya Judgment-1--Wp-1855-2022.doc

to belive said contention for at least two reasons. Firstly, the notice was apparently published on the notice board of Akkalkot Road MIDC foundry. Secondly, the notice was accompanied by agreement executed with the recognized union. Once the terms and conditions of settlement are agreed upon by the recognized union, it was the duty of the concerned workmen to have acquired the knowledge about options extended by the management through the Union. I am therefore not inclined to accept the contention of four workmen that they had no knowledge about issuance of notice dated 27 January 2014.

20) Though the Labour Court had rightly appreciated the above position, the Industrial Court has set aside the findings of the Labour Court. Perusal of the order passed by the Industrial Court would indicate that it has taken into consideration some of the irrelevant factors such as payment of gratuity to the Respondent-workmen. In my view, mere payment of gratuity to the workmen does not ipso-facto render termination invalid. Even a terminated employee is entitled to payment of gratuity. Therefore, mere because gratuity is offered to the four workmen, such action would not ipso-facto render termination invalid.

21) The Industrial Court has also failed to appreciate the position that the case does not involve total absence of evidence. It is well settled position of law that presence of some evidence on record in a domestic enquiry would suffice the test of preponderance of probability. In the present case, since domestic

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Chaitanya Judgment-1--Wp-1855-2022.doc

enquiry was not conducted, the evidence has been led by the Petitioner before the Labour Court. There is no finding recorded by the Industrial Court that there is total absence of evidence on record while directing reinstatement of the Respondent- workmen. I am therefore not convinced with the reasoning adopted by the Industrial Court for setting aside termination and for directing reinstatement with full back wages.

22) At the same time, it must be noted that all the workmen were offered the options of either working at Chincholi MIDC foundry or to opt for voluntary retirement. If the Respondent- employees were to opt for voluntary retirement, they would have received handsome amount of compensation in the year 2014. May be they were misguided in not accepting the option for voluntary retirement offered to them in January 2014. The issue is whether the compensation which the Respondent-employees could have earned in 2014 is to be denied to them forever, merely because they failed to exercise the option and later invited the orders for termination. Considering the peculiar facts and circumstances of the case, where the termination is not found to be illegal, I am adopting unusual course by awarding compensation as per the formula for VRS implemented by the Petitioner vide notice dated 27 January 2014. Thus, Respondent- employees can be paid the entire amount of compensation as per option No.2 indicated in the agreement executed with the recognized union. This would ensure that the Respondent- workmen are paid some amount of compensation and at the same

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Chaitanya Judgment-1--Wp-1855-2022.doc

time, no burden is put on the Petitioner-employer to pay back wages to them.

23) Since, this Court has adopted the course of awarding compensation to the four Respondents-workmen as per option No.2 of voluntary retirement, which was offered to all the employees by the Petitioner vide notice dated 27 January 2024, it is not necessary to increase the length of this Judgment by discussing ratio of various Judgments relied upon by Mr. Kazi. Considering the fact that the compensation was payable to the four Respondent-workmen in January 2014 and the same is being paid to them now, it is appropriate that the amount of compensation shall carry simple interest at the rate of 6% per annum, from the date of termination i.e. 28 June 2014 till the date of payment.

24) I accordingly proceed to pass the following order:

ORDER

(i) Judgments and Orders dated 12 October 2021 passed by the Member, Industrial Court, Solapur are set aside.

(ii) Instead of grant of relief of reinstatement and back wages, the Petitioner shall pay each of the four Respondents-workmen all the benefits of package payable as per option No.2 of the agreement dated 28 January 2014, the amount towards which shall represent lump-sum

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Chaitanya Judgment-1--Wp-1855-2022.doc

compensation payable to them in lieu of reinstatement and backwages.

(iii) The Petitioner shall accordingly compute the exact amount of compensation payable to each of the four Respondent-workmen in accordance with option No.2 and shall pay the said amounts to them together with simple interest @ 6% p.a. from 28 June 2014 till the date of payment, within a period of eight weeks.

(iv) Beyond the compensation so awarded, the Respondents shall not be entitled to any other service related benefits from the Petitioner.

25) With the above directions, all the four Petitions are partly allowed. Rule is made partly absolute. There shall be no orders as to costs.

[SANDEEP V. MARNE, J.]

6 March 2025

 
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