Delhi High Court
Purvanchal Mazdoor Trade Union vs M/S. Fashion Team on 26 July, 2017
$~7
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Date of Decision:26th July, 2017
+ W.P.(C) 2182/2012 & CM No.4722/2012
PURVANCHAL MAZDOOR TRADE UNION ..... Petitioner
Through: Mr.K. Vishwanath, Advocate
versus
M/S. FASHION TEAM ..... Respondent
Through: Mr. Sanjoy Ghose, Advocate as
amicus curiae with Ms.Pratishtha Vij,
Advocate
CORAM:
HON'BLE MR. JUSTICE J.R. MIDHA
JUDGMENT (ORAL)
1. The petitioner has challenged the award of the Labour Court whereby
compensation of Rs.20,000/- has been awarded to each of the 14 workmen
who have completed one year of service; Rs.25,000/- has been awarded to
each of the 52 workmen who have completed two years of service and
Rs.30,000/- has been awarded to each of the 7 workmen who have
completed three years of service along with interest @ 8% per annum from
the date of the award.
2. There is no appearance on behalf of the respondent who was duly
served by way of affixation/publication and was proceeded ex parte on 9th
December, 2015. Mr. Sanjoy Ghose, Advocate was appointed as amicus
curiae to assist this Court.
3. The petitioner raised an industrial dispute in respect of workmen who
were retrenched by the respondent on 3rd July, 1997. Learned Labour Court
held that 73 out of 81 workmen were covered within the definition of
"workman" under Section 2(s) of the Industrial Disputes Act, 1947. The
Labour Court further held that the management terminated the services of
the workmen without applying Sections 25F and 25N of the Industrial
Disputes Act. The petitioner seeks enhancement of the compensation
awarded by the Labour Court.
4. Learned amicus curiae submits that the compensation awarded by the
learned Labour Court is on a lower side. Learned amicus curiae submits that
the compensation amount of Rs.20,000/- be enhanced to Rs.90,215;
Rs.25,000/- be enhanced to Rs.91,938/- and Rs.30,000/- be enhanced to
Rs.93,661/- as per the computation given hereunder:
S. Particulars In cases of In cases of In cases of
No. workmen workmen workmen
employed in employed in employed in
1994 1995 1996
1. For compliance under 25N Rs.10,400 Rs.9,600 Rs.8,800
(3 month notice + Retrenchment
Compensation i.e. 15 days avg. pay [1600 x 3 + (800 [1600 x 3 + [1600 x 3 + (800
for every completed year) x 7)] (800 x 6)] x 5)]
2. Wages for period 1997-2001 ( 4 Rs. 76,800 Rs. 76,800 Rs. 76,800
years approximately) (1600 pm x12 (1600 pm x12 (1600 pm x12
months x 4 years) months x 4 months x 4 years)
years)
3. Gratuity Rs.6461 approx Rs.5538 Rs.4615 approx
(Pay x 15 days x No. of years of (1600 x 15 x approx (1600 x 15 x
service)/26 7)/26 (1600 x 15 x 5)/26
6)/26
4. (1)+(2)+(3) Rs.93,661 Rs.91,938 Rs.90,215
5. The computation of compensation by the learned amicus curiae is fair
and reasonable.
6. Learned counsel for the petitioner accepts the computation by learned
amicus curiae and submits that the workmen be awarded interest @ 8% per
annum as awarded by the Labour Court.
7. The writ petition is allowed and the compensation awarded by the
Labour Court to 14 workmen with one year of service is enhanced from
Rs.20,000/- to Rs.90,215/-; compensation awarded to 52 workmen with two
years of service is enhanced from Rs.25,000/- to Rs.91,938/- and
compensation awarded to 7 workmen with three years of service is enhanced
from Rs.30,000/- to Rs.93,661/-. The particulars of the workmen are given
in para 37 of the award which is not being repeated herein for the sake of
brevity. The workmen shall be entitled to interest @ 8% per annum from
the date of the award i.e. 25th November, 2010 till realization.
8. This Court appreciates the assistance rendered by Mr. Sanjoy Ghose,
learned amicus curiae and Ms. Pratishtha Vij, Advocate who submitted
exhaustive submissions as well as the compilation of relevant judgments and
the computation of the compensation amount.
9. The pending application is disposed of.
10. Copy of this judgment be given dasti to counsel for the parties under
the signature of the Court Master.
JULY 26, 2017 J.R. MIDHA, J.
Dk
