Citation : 2025 Latest Caselaw 1161 Guj
Judgement Date : 21 July, 2025
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C/SCA/10673/2024 JUDGMENT DATED: 21/07/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 10673 of 2024
FOR APPROVAL AND SIGNATURE:
HONOURABLE MRS. JUSTICE M. K. THAKKER
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Approved for Reporting Yes No
NO
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BHUPENDRABHAI VALLABHBHAI PATEL (WORKMAN)
Versus
DIVISIONAL CONTROLLER
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Appearance:
MR PARESH J BRAHMBHATT(9788) for the Petitioner(s) No. 1
MS SEJAL K MANDAVIA(436) for the Respondent(s) No. 1
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CORAM:HONOURABLE MRS. JUSTICE M. K. THAKKER
Date : 21/07/2025
ORAL JUDGMENT
1 Rule, returnable forthwith. Learned advocate Ms.Mandavia waives service of notice of Rule on behalf of the respondent-State.
2 This petition is filed under Articles 226 and 227 of the Constitution of India, challenging the order dated 08.11.2019 passed by the learned Industrial Tribunal, Vadodara in Reference (IT) No.23 of 2011, whereby the Reference filed by the present petitioner came to be rejected on the ground of delay, as well as the order dated 17.05.2023 passed in Misc. Application No.1 of 2022, whereby the Restoration Application
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filed by the petitioner was also rejected.
3 The facts in nutshell are that the petitioner was serving with the respondent Corporation as a Clerk since 1978 and retired from service in the year 2014. On 11.09.2002, while the petitioner was working at Karjan Depot, the Accounts Officer of Vadodara Division inspected the treasury and accounts of Karjan Depot. During the inspection, it was found that an amount of Rs.3,364/- was credited towards salary, whereas the cash available in the treasury was Rs.3,314/-, resulting in a shortage of Rs.50/- in the cash book. A report was made to the higher authorities, and accordingly, a chargesheet was issued to the petitioner on 07.10.2002.
3.1 The petitioner replied to the chargesheet on 10.10.2002, and upon conclusion of the departmental inquiry, the Disciplinary Authority passed an order on 06.01.2003 imposing the punishment of withholding one increment with future effect. The said order was challenged in the first departmental appeal, which came to be rejected on 31.03.2004. Thereafter, the second departmental appeal was preferred, which was pending as on the date of filing of the Reference.
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3.2 Challenging the order of punishment, the petitioner filed Reference (IT) No.23 of 2011, wherein the legality and validity of the departmental inquiry was also assailed. The learned Tribunal framed a preliminary issue with regard to the legality of the inquiry and, vide order dated 22.07.2013, held that the inquiry was conducted in violation of the principles of natural justice, and therefore, the departmental inquiry was declared illegal.
3.3 Subsequently, the learned Tribunal allowed the Reference in favour of the petitioner on 22.11.2013, observing that though an opportunity was granted to the respondent to lead evidence to prove the charges, the same was not availed. As the award was passed ex parte, the respondent filed a restoration application along with an application for condonation of delay being Misc. Application No.19 of 2014. The said applications came to be rejected by the learned Tribunal, which led to the filing of Special Civil Application No.8513 of 2017 before this Court. This Court, vide order dated 22.11.2017, quashed the award passed by the Tribunal and restored the Reference to its original file by setting aside the order rejecting the application for condonation of delay.
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3.4 Thereafter, without calling upon the respondent to lead evidence to prove the charges, the learned Tribunal rejected the Reference on the ground of delay of eight years in filing the same. The petitioner, therefore, preferred a restoration application under Rule 26A of the Gujarat Industrial Disputes Rules, 1966 which also came to be rejected. Aggrieved, the petitioner filed Special Civil Application No.1452 of 2022 before this Court. However, the said petition was permitted to be withdrawn with a liberty to file a restoration application before the learned Tribunal. Accordingly, the petitioner filed the restoration application, which also came to be rejected by the Tribunal on the ground of delay of 83 days.
4 Heard the learned advocate Mr.Brahmbhatt for the petitioner and the learned advocate Ms.Mandavia for the respondent.
5 Learned advocate Mr. Brahmbhatt submits that after holding the departmental inquiry illegal and void, instead of deciding the Reference on merits by appreciating the evidence adduced by the respondent to prove the charges, the learned Tribunal erroneously proceeded to dismiss the Reference solely on the ground of delay. Learned
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advocate Mr. Brahmbhatt submits that by not following the procedure prescribed under the Industrial Disputes Act, the learned Tribunal has committed a serious error, and therefore, the impugned award rejecting the Reference of the petitioner is required to be interfered with.
5.1 Learned advocate Mr. Brahmbhatt further submits that the learned Tribunal has also erred in observing that the petitioner was aware of the dismissal of the Reference (dated 08.11.2019) merely because he received costs of Rs.10,000/- on 11.12.2019. Learned advocate Mr. Brahmbhatt clarifies that the said amount was awarded in Misc. Application No.10 of 2019, which was received by the petitioner after the dismissal of the Reference. By accepting the said amount, the petitioner merely came to know that the Reference was restored to its original file, but that by itself does not imply that he had knowledge of the dismissal of the Reference.
5.2 Learned advocate Mr. Brahmbhatt further submits that due to the COVID-19 pandemic being at its peak during the relevant period, the petitioner could not approach the concerned Court within the stipulated time. Learned advocate Mr.
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Brahmbhatt submits that the ex-parte award was challenged by way of a writ petition before this Court, which was later withdrawn with a liberty to file a restoration application before the learned Tribunal. Accordingly, a restoration application was filed; however, the learned Tribunal rejected the same on the ground of delay of 83 days. Learned advocate Mr. Brahmbhatt submits that even if the statutory 30-day limitation period is deducted, the delay would come to only 53 days, which was reasonably and sufficiently explained. Despite this, the learned Tribunal held that no sufficient cause was shown.
5.3 Learned advocate Mr. Brahmbhatt further submits that the initial award, which was in favour of the present petitioner, was restored after a lapse of more than six years at the instance of the respondent, yet the petitioner's delay of merely 53 days was not condoned despite being caused for genuine and bona-fide reasons.
5.4 In view of the above, learned advocate Mr. Brahmbhatt submits that both the impugned orders, one passed in the application for condonation of delay and the other in the main Reference are unsustainable and deserve to be set
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aside, as they are passed without appreciating the material and cogent evidence on record. Learned advocate Mr. Brahmbhatt submits therefore, prays that the present petition may be allowed and the impugned orders may be quashed and set aside.
6 Per contra, learned advocate Ms. Mandavia submits that the petitioner was aware of the impugned award as on 11.12.2019; however, the Restoration Application came to be filed only on 01.06.2022. Learned advocate Ms. Mandavia submits that during the intervening period, the petitioner had already approached this Court by filing a writ petition, which came to be dismissed on 09.03.2022. Despite that, the Restoration Application was filed after more than three months, and therefore, the learned Tribunal was justified in rejecting the application for condonation of delay.
6.1 Learned advocate Ms. Mandavia further submits that since the petitioner failed to remain present before the learned Tribunal during the proceedings, there was no occasion for the Tribunal to examine the matter on merits. Hence, the impugned award dismissing the Reference on the ground of delay of eight years is just, proper, and in accordance with law.
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6.2 In view of the above submissions, learned advocate Ms. Mandavia prays that no interference be made with the impugned award and the present petition may be dismissed.
7 Having considered the arguments advanced by the learned advocates for the respective parties and on perusal of the reasons assigned by the learned Reference Court, it emerges that the Reference was filed by the present petitioner challenging the order of punishment whereby one increment was withheld with future effect. It is not in dispute that the punishment order was passed by the Disciplinary Authority on 06.01.2003. Thereafter, the first departmental appeal filed by the petitioner came to be rejected, and at the time of filing the Reference, the second departmental appeal was pending.
7.1 It is also not in dispute that during the course of Reference proceedings, the learned Court decided the preliminary issue regarding the legality and validity of the departmental inquiry in favour of the petitioner and consequently, the Reference was allowed ex parte by setting aside the punishment order.
7.2 Challenging the said ex-parte award, the
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respondent filed Misc. Application No.23 of 2011 under Rule 26A of the Gujarat Industrial Disputes Rules, 1966. The said application came to be rejected on 26.10.2016, which was challenged before this Court. This Court, vide order dated 22.11.2017, allowed the petition, set aside the impugned award, and condoned the delay.
7.3 Pursuant to the said order, the amount of costs of Rs.10,000/-, as awarded by the learned Labour Court while restoring the Reference, was paid to the petitioner on 11.12.2019. However, prior to the said payment, the learned Reference Court had already decided the Reference on merits against the petitioner on 08.11.2019 by holding that the Reference was filed after a delay of eight years.
8 In the opinion of this Court, once the learned Labour Court held that the departmental inquiry was illegal and void, the proper course available to the learned Court was to grant an opportunity to the respondent to prove the charges independently. However, instead of adopting such a course, the learned Reference Court proceeded to examine the matter solely on the aspect of delay. Such an approach is impermissible in the eyes of law, as on one hand, the legality and validity of the departmental inquiry was
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held in favour of the petitioner, and on the other hand, the Reference itself was rejected on the ground of delay.
8.1 In addition, the observation made by the learned Court in the impugned order that the petitioner came to know about the dismissal of the Reference on 11.12.2019 is also misconceived. On 11.12.2019, the petitioner merely received the costs amount awarded by the learned Court while allowing the restoration application. There was no whisper or reference in the said proceedings about the main award passed in the Reference.
8.2 Therefore, under the erroneous presumption that the petitioner became aware of the dismissal of the Reference dated 08.11.2019 on 11.12.2019, the learned Reference Court dismissed the restoration application on the ground that no sufficient and genuine explanation for the delay was offered by the petitioner.
9 At this stage, this Court has referred the decision rendered by the Apex Court in the case of N. Balakrishnan v. M. Krishnamurthy, in AIR 1998 SC 3222 wherein the Apex Court has held as under:
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"11. Rules of limitation are not meant to destroy the rights of parties. They are meant to see that parties do not resort to dilatory tactics, but seek their remedy promptly. The object of providing a legal remedy is to repair the damage caused by reason of legal injury. The law of limitation fixes a lifespan for such legal remedy for the redress of the legal injury so suffered. Time is precious and wasted time would never revisit. During the efflux of time, newer causes would sprout up necessitating newer persons to seek legal remedy by approaching the courts. So a lifespan must be fixed for each remedy. Unending period for launching the remedy may lead to unending uncertainty and consequential anarchy. The law of limitation is thus founded on public policy. It is enshrined in the maxim interest reipublicae up sit finis litium (it is for the general welfare that a period be put to litigation). Rules of limitation are not meant to destroy the rights of the parties. They are meant to see that parties do not resort to dilatory tactics but seek their remedy promptly. The idea is that every legal remedy must be kept alive for a legislatively fixed period of time."
9.1 This Court has also referred the decision of the Apex
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Court rendered in the case of M.S. Grewal v. Deep Chand Sood, reported in AIR 2001 SC 3660 wherein the Apex Court has held as under:
"9. The observations as above, undoubtedly lay down the basic guidance for assessment of damage but one redeeming feature ought to be noted that compensation or damages cannot be awarded as a solatium but to assess the same with reference to loss of pecuniary benefits. In the decision last noted (Subramania Iyer [(1969) 3 SCC 64] ) this Court placed strong reliance on two old decisions of the English courts, to wit: Franklin v. South Eastern Rly. Co. [157 ER 448 : (1858) 3 H&N 211] wherein Pollock, C.B. stated:
"We do not say that it was necessary that actual benefit should have been derived, a reasonable expectation is enough and such reasonable expectation might well exist, though from the father, not being in need, the son had never done anything for him. On the other hand a jury certainly ought not to make a guess in the matter, but ought to be satisfied that there has been a loss of sensible and appreciable pecuniary benefit, which might have been reasonably expected from the continuance of life."
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10 In the opinion of this Court, instead of dismissing the Reference on the ground of delay, the learned Tribunal ought to have proceeded to examine the evidence that was required to be led by the respondent to prove the charge. Even in the absence of the present petitioner, the learned Tribunal could have adjudicated the matter on merits. However, by failing to adopt such a course, the learned Tribunal has committed an error, and therefore, the impugned order deserves to be quashed and set aside. Consequently, the order passed by the learned Tribunal rejecting the application for condonation of delay is also requires to be quashed and set aside.
11 Resultantly, this petition is allowed. The Reference is restored to its original file. The learned Industrial Tribunal, Vadodara is directed to decide the same afresh, in accordance with law, within a period of six months from the date of receipt of a copy of this judgment. Rule is made absolute accordingly.
(M. K. THAKKER,J) M.M.MIRZA
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