Ruthben Stevenson Christian vs Sharadbabu Hospital Dr. Babulal L ...
2023 Latest Caselaw 5907 Guj

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    C/LPA/548/2023                                   CAV JUDGMENT DATED: 11/08/2023

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              IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                     R/LETTERS PATENT APPEAL NO. 548 of 2023

                                     In
                R/SPECIAL CIVIL APPLICATION NO. 7100 of 2008


FOR APPROVAL AND SIGNATURE:


HONOURABLE MR. JUSTICE N.V.ANJARIA

and
HONOURABLE MR. JUSTICE J. C. DOSHI

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1 Whether Reporters of Local Papers may be allowed NO to see the judgment ?

2     To be referred to the Reporter or not ?                                NO

3     Whether their Lordships wish to see the fair copy                      NO
      of the judgment ?

4     Whether this case involves a substantial question                      NO

of law as to the interpretation of the Constitution of India or any order made thereunder ?

========================================================== RUTHBEN STEVENSON CHRISTIAN Versus SHARADBABU HOSPITAL DR. BABULAL L DESAI DECEASED ========================================================== Appearance:

MR KRUNAL D PANDYA(3283) for the Appellant(s) No. 1 DELETED for the Respondent(s) No. 1,1.1,1.4 MR AK CLERK(235) for the Respondent(s) No. 1.2,1.3 ==========================================================

CORAM:HONOURABLE MR. JUSTICE N.V.ANJARIA and HONOURABLE MR. JUSTICE J. C. DOSHI

Date : 11/08/2023

CAV JUDGMENT

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C/LPA/548/2023 CAV JUDGMENT DATED: 11/08/2023

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(PER : HONOURABLE MR. JUSTICE J. C. DOSHI)

In this intra-court appeal filed under Clause 15 of the Letters Patent, the appellant challenges the judgment and order dated 14/12/2021 rendered in Special Civil Application No.7100 of 2008, whereby the learned Single Judge has overturned the award passed by the learned Presiding Officer, Labour Court No.3, Ahmedabad in Reference (LCA) No.128 of 1994.

2. The facts garnered from the pleadings in nutshell are that late Dr. Babulal L Desai was running Sharadbabu Hospital at Satyamnagar, Rakhial, Ahmedabad. The appellant was serving as nurse alongwith other four nurse in the said hospital. According to the appellant, her services were orally terminated on 29/07/1993 and she therefore, raised an industrial dispute which culminated into Reference LCA No.128 of 1994 before learned Labour Court, Ahmedabad. During the pendency of the said Reference, Dr. Babulal L Desai expired. An application was moved at Exhibit-26 in the said Reference to join the heirs and legal representatives of deceased-Dr. Babulal L Desai which was allowed and as such the present respondents were joined as party in the said reference.

2.1 The Labour Court, after considering the evidence on record has partly allowed the said reference and while denying the prayer of reinstatement in service, has granted lump sum amount of compensation to the tune of Rs.1.00 Lakh.

2.2 Aggrieved by the said award, the respondents preferred

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Special Civil Application No.7100 of 2008 before this Court. This Special Civil Application came to be allowed by overturning the award passed by the Labour Court which has given rise to the present intra-court appeal.

3. Learned Advocate Mr.Krunal D Pandya for the appellant submits that the learned Single Judge has erred in allowing the SCA whereby the impugned award was quashed and set aside. He would further submit that findings and reasoning arrived at by the learned Single Judge are not in consonance with the provisions of the Industrial Disputes Act, 1947. He would further submit that the respondents were joined by virtue of the order passed below Exhibit-26. Since they were carrying immovable property of late Dr.B L Desai, they were duty to bound to adhere to the liability of Dr. B L Desai; however the learned Single Judge erroneously took the contrary view. He would further submit that since the hospital which was run by Dr. B L Desai, has been taken over by the respondents, the relationship of employee and employer as defined under the ID Act will continue between the appellant and respondent; but the learned Single Judge has failed to comprehend such legal position and has committed error of law; much less error of misunderstanding of provisions of law.

3.1 By pressing into the service the judgment of this Court in the case of Rasulbhai Pirbhai Shaikh vs. Jasumatiben Indravadan Trivedi wd/o Indravadan Shankarlal Trivdei [1993 (1) GLR 519], learned Advocate for the appellant submits that the issue which was cropped up before the learned Single Judge

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was squarely covered by the said judgment because in view of the findings arrived at in the said judgment, the rights of the workman against the employer cannot be made to die with the employer. He would further submit that taking the view that the relationship of employee and employer snapped on the death of the employer would not be justified in view of the provisions of the Industrial Tribunal Act. He would further submit that neither of the provisions of the ID Act or any principles of law permit to take the view that relationship of employee and employer will be snapped on demise of the employer.

3.2 Pressing into service such submissions, learned Advocate for the appellant submits that the learned Single Judge has seriously erred in overturning the well reasoned award passed by the Labour Court. By making the above submissions, he would submit that the present appeal may be allowed quashing and setting aside the impugned oral judgment of learned Single Judge and to restore the award passed by the Labour Court.

4. Contesting the submissions, Mr. A K Clerk, learned Advocate appearing on behalf of the respondent - org. petitioner would submit that once the establishment to which the dispute relates is not inherited by the heirs of the employer, the relationship of employee and employer could not said to have been continued. He would further submit that in the present case, the appellant has failed to brought on record any evidence before the Labour Court which indicates that the establishment in which the appellant was working had been inherited by the respondent - org. petitioner. He would further submit that

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merely the respondents are legal heirs of the deceased, would not make them liable to pay any liability arising out of the provisions of the ID Act. Learned Advocate Mr.Clerk in order to justify the impugned order passed by the learned Single Judge would submit that in paragraph 6 and 7, learned Single Judge has addressed this issue and observed that how the relationship of employer and employee has been snapped on demise of late Dr. B L Desai. He would further submit that learned Single Judge has not committed any error which speaks error of understanding or facts or law. He would further submit that even perusing the award passed by the Labour Court, it is does not disclose that relationship of employee and employer is continued between the appellant and respondent. In this set of circumstances, he would urge to dismiss the appeal as no case is made out by the appellant.

5. Heard learned Advocates appearing for the rival parties.

6. At the outset, we may refer to paragraph 6 and 7 of the impugned oral judgment which reads thus:

"6. From the deposition of the respondent no.1 at Exh.8, it is manifest that the respondent was employed as a Nurse by late Dr. Babulal L. Desai in his hospital and she has admitted that the Sharadbabu Hospital was owned by the Dr.Babulal L. Desai. It is her case, she has been orally terminated on 29.07.1993 without holding any inquiry or giving any show cause notice. The industrial dispute was raised by her, which culminated into Reference LCA No.128 of 1994. During the pendency of the said reference, late Dr. Babulal L. Desai passed away and the present petitioners were arraigned as the party respondents

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being the legal heirs of late Dr. Babulal L. Desai. From the documents and the evidence, which has surfaced the Labour Court has in fact held that the late Dr. Babulal L. Desai was the employer of the respondent and the hospital was also in his name and it was run by him. However, a finding has been recorded against the present petitioners on the ground that no documentary evidence was produced with regard to closing of hospital till the year 1999 and in view of the said finding, the Labour Court has directed the petitioners to pay lump-sum compensation of Rs.1,00,000/-.

7. In the considered opinion of this Court, such directions of payment of compensation are misconceived in wake of the fact that there is no employer and employee relationship between the present petitioners and the respondent. The respondent was employed by the late Dr. Babulal L. Desai and his liability arising out of any violation of provisions of the Industrial Disputes Act, 1947 will not bind the present petitioners, who are legal heirs and the same has to be confined to the employer i.e. Dr. Babulal L. Desai. The Labour Court by issuing such directions has fastened the liability on the present petitioners as if they were the employers of the respondent and they are responsible for the illegal termination. When there is no evidence with regard to the employee employer relationship between the petitioners and the respondent workman, such directions were uncalled for. It is trite that an employee has a direct nexus with regard to his service with the employer and similarly if any misconduct is committed by the employee or there is any adverse orders passed affecting the service of an employee, the concerned employer can be said to be liable for such action and not his legal heirs, who are not directly or indirectly connected with the employment of such employee."

7. The bone of the reasons given by the learned Single Judge to upturn the award of the Labour Court is that since the relationship between the employer and employee is snapped

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during the proceedings as the establishment in which the employee was working is not inherited by the respondent. In absence of relationship of employer and employee, the award passed by the Labour Court is non-est. The liability of the late employer arising out of any violation of provisions of the ID Act would not bind the legal heirs in absence of the evidence that establishment is inherited by the respondent. On perusal of the award passed by the Labour Court, it appears that the Labour Court found that Sharadbabu Hospital was run by late Dr. BL Desai in the premises given to Shardaben by way of gift from her maternal uncle. This premise was a "Streedhan" of Shardaben and since this property is inherited by the respondent herein they are liable to satisfy the liability arising out of violation of provisions of the ID Act. While giving such reasons, the Labour Court in clear terms held that respondent No.2 to 5 have no direct nexus or relationship with the hospital in which the appellant is working. It is also recorded by the Labour Court that respondents have not received any property inheritance from Dr. B L Desai.

7.1 To fasten the liability upon the respondent, the Labour Court gave reasons that it is the pious obligation upon the respondent No.2 to pay the amount which was outstanding to the deceased Dr. B L Desai since he is legal and class-I heirs. The finding arrived at by the Labour Court is self-contradictory. On one hand, the Labour Court believed that respondents have no nexus or relationship with the establishment in which the appellant was working; on the other hand, upon the principle of paying the pious debt of the father, the Labour Court passed the

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award in favour of the appellant. The approach of the Labour Court is erroneous. While deciding the liability under the ID Act, arising out of breach of provisions of the ID Act, what is required to be considered by the Labour Court is that if the establishment of the employer in which the employee working, on demise of the employer is inherited by the heirs as an establishment. If answer is in the affirmative, then the legal heirs are responsible to satisfy the liability arising out of the breach of provisions of the ID Act. Inheriting immovable property does not mean inheriting the establishment. The Labour Court was not clear on this aspect and has failed to carve out difference between establishment and immovable property. The learned Single Judge has appreciated this aspect rightly, justly and in proper manner, more particularly, in the facts of the case.

8. In the result, the intra-court appeal fails and accordingly dismissed. Connected CA, if any, does not survive. Interim- relief, if any, stands vacated.

(N.V.ANJARIA, J)

(J. C. DOSHI,J) sompura