Citation : 2025 Latest Caselaw 704 Guj
Judgement Date : 9 July, 2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 649 of 2020
FOR APPROVAL AND SIGNATURE:
HONOURABLE MRS. JUSTICE M. K. THAKKER
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Approved for Reporting Yes No
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SANJAYBHAI MOHANBHAI DODIYA
Versus
RANGE FOREST OFFICER & ANR.
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Appearance:
MR AMAR D MITHANI(484) for the Petitioner(s) No. 1
MR YV VAGHELA(2450) for the Petitioner(s) No. 1
MR.DHAVAL PARMAR, AGP for the Respondent(s) No. 1
RULE SERVED for the Respondent(s) No. 2
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CORAM:HONOURABLE MRS. JUSTICE M. K. THAKKER
Date : 09/07/2025
ORAL JUDGMENT
1. This petition is filed under Article 226 and 227 of the
Constitution of India challenging the award passed by
learned labour court, Junagadh in Reference (L.C.J.)
No.63 of 2015 dated 07.05.2019 whereby, learned
reference court has awarded the lump sum
compensation of Rs.10,000/- towards full and final
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settlement of the award.
2. The gist of the case is that the petitioner was appointed
to the post of Sweeper on 08.10.2005 on a contractual
basis, drawing monthly wages of Rs. 5,500/-. On
15.04.2015, as per the allegations made by the
petitioner, his services were terminated without
following the due procedure prescribed under the
Industrial Disputes Act, 1947 (hereinafter referred to as
the "ID Act"). This termination was challenged before
the learned Reference Court by filing a reference,
wherein relief was sought for reinstatement along with
consequential benefits. The learned Reference Court,
upon concluding the proceedings in favour of the
petitioner and holding that there was a breach of
Sections 25(F), 25(G), and 25(H) of the ID Act, awarded
lump sum compensation instead of ordering
reinstatement. This award is now under challenge by the
petitioner through the present petition.
3. Heard learned advocate Mr.Mithani for the petitioner
and learned AGP Mr.Dhaval Parmar for the respondent.
4. Learned advocate Mr.Mithani submits that, indisputably,
the petitioner had been serving with the respondent
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employer since 2005. Allegations were made against the
petitioner regarding the recording of a video of lion cubs
in a cage, which is prohibited under the Wild Life
Protection Act, 1972. Based on this allegation, the
services of the petitioner were terminated. Learned
advocate Mr.Mithani submits that though learned
reference court did not believe the alleged misconduct
on the ground that taking a video has not been proved
through a CD as well as by producing the certificate
required under section 65(B) of the Indian Evidence Act,
and, though learned reference court has held in favour
of the petitioner with regard to section 25(F), 25(G) and
25(H) of the ID Act has awarded lump sum
compensation. Learned advocate Mr.Mithani submits
that, as on date, the work is available, and as observed
by the learned Reference Court, the said work has been
carried out through other employees while the petitioner
was not called back to work. Hence, there is a clear
breach of Sections 25(G) and 25(H) of the Industrial
Disputes Act. In the event of such a breach, the only
appropriate remedy is reinstatement. However, the
learned Reference Court has awarded only a meager
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amount as lump sum compensation. Learned advocate
Mr.Mithani has relied on the decision rendered by this
Court in the case of Rameshbhai Bhatibhai Pagi
Versus Deputy Executive Engineer in Special Civil
Application No.1443 of 2022 wherein, in an identical
situation, this Court has granted relief of reinstatement
by holding that in breach of section 25(F), 25(G) and
25(H) of the ID Act, learned labour court ought to have
awarded reinstatement rather than compensation.
Learned advocate Mr.Mithani submits that without
considering the above aspect, impugned award is
passed, hence the same is required to be set aside and
the petition deserves to be allowed.
5. On the other hand, learned AGP Mr.Parmar has
submitted that the appointment of the present petitioner
was purely contractual in nature, and the last contract,
executed on 01.12.2014, came to an end on 31.03.2015.
Learned AGP Mr.Parmar He submits that upon
completion of the said contract, and in the absence of
any further extension, particularly in light of the incident
that occurred on 09.03.2015, the petitioner's services
were terminated. Learned AGP Mr.Parmar submits that
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the contention with regard to the continuous service was
not believed by the learned reference court and it is held
that the petitioner has not completed 240 days except in
the year 2012-13 and though in the preceding year
requirement of section 25 (B) of the ID Act has not been
satisfied, learned reference court has granted lump sum
compensation. Learned AGP Mr.Parmar further submits
that since the petitioner's services were terminated
upon the expiry of a fixed-term contract, it would not
amount to "retrenchment" as defined under Section
2(oo)(bb) of the ID Act. Consequently, the provisions of
Sections 25(G) and 25(H) of the Act would not apply in
the present case. Learned AGP Mr.Parmar has relied on
the decision rendered by the Apex Court in the case of
Bhavnagar Municipal Corporation Versus
Salimbhai Umarbhai Mansuri reported on 2013 (14)
SCC 456 and submitted that in an identical case, Apex
Court has held that in absence of extension of contract,
the reinstatement cannot be awarded. Learned AGP
Mr.Parmar submits that as learned reference court,
without considering the evidence placed on record, has
not granted the relief of reinstatement, no interference
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is required and petition deserves to be dismissed.
6. Having considered the arguments advanced by the
learned advocate for the respective parties and on
referring the records, it emerges that the appointment
of the present petitioner was made on contractual basis
from year 2005. It is undisputed fact that the evidence
below mark 17/1 which is the muster roll as well as the
attendance register suggests that the petitioner did not
work for the period from 07.01.2006 to 06.07.2008 i.e.
around two years and six months, similarly from
07.11.2008 to 02.07.2009 i.e. around eight months,
12.09.2009 to 07.06.2010 i.e. around six months and in
the year 2010-11 for not a single day. It further emerges
from the record that, except for the year 2011-12, the
petitioner did not complete 240 days of work in any
given year, as alleged. Reference to the contractual
documents on record, marked as Exhibits 17/2 to 17/8,
reveals that the last contract was executed for a period
of four months, from 01.12.2014 to 31.03.2015..
6.1. It was the case of the respondent before the learned
Labour Court, as stated in the written statement, that
the petitioner's services were terminated upon the
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conclusion of the contract. It was also contended by the
respondent before the learned Labour Court that, prior
to the completion of the contract on 09.03.2015, an
incident was reported in the newspaper concerning the
petitioner taking a video clip of lion cubs inside the
cage. Consequently, in view of this incident and the
terms of the contract, the petitioner's contract was not
extended further. Clause 11 of the contract, produced at
Exhibit 17/8, clearly states that the contract was
temporary in nature, and upon completion of the
contract, the employee would not be entitled to any
further extension or permanency benefits. Learned
reference court has held that there is a continuous
service of 240 days, on relying on the contract for the
period of 2012-13, however, if one would refer the
provision of section 25(F) of the ID Act which suggests
the continuous service of 240 days mandates the
continuous service of 240 days in the preceding year,
then the preceding year would be for the period of 2013-
14. As per the muster roll and attendance register in the
year 2013-14, the petitioner has worked only for a
period of 180 days. In that background in the considered
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opinion of this Court, violation of section 25(F) of the ID
Act has not been provided. In addition to that when the
appointment was purely on contractual basis that would
exclude from the definition of retrenchment provided
under section 2(oo)(bb) of the ID Act. For better
understanding it is reproduced herein below:-
"2(oo) "retrenchment" means the termination by the employer of the service of a workman for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action but does not include-
(a)voluntary retirement of the workman; or
b)retirement of the workman on reaching the age of superannuation if the contract of employment between the employer and the workman concerned contains a stipulation in that behalf;
2(bb) termination of the service of the workman as a result of the non-renewal of the contract of employment between the employer and the workman concerned on its expiry or of such contract being terminated under a stipulation in that behalf contained therein; or]"
7. In the considered opinion of this Court, since the
termination of the petitioner's service was due to non-
renewal of the contract, it cannot be treated as
retrenchment within the meaning of Section 2(oo) of the
Industrial Disputes Act.
8. At this stage, the reference of judgment of the Apex
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Court in the case of Bhavnagar Municipal
Corporation Versus Salimbhai Umarbhai Mansuri
(supra) is required to be made, relevant paragraph of
the said judgment is reproduced herein below:-
"7. We are of the view that the Labour Court as well as the High Court have completely misunderstood the scope of Section 2(oo), (bb), as well as Section 25G and H of the ID Act. The contract of employment and the terms and conditions contained therein are crucial in the application of the above-mentioned provisions. Facts would clearly indicate that the respondent had worked only for 54 days in two fixed periods and on expiry of the second term his service stood automatically terminated on the basis of the contract of appointment. A reference to the contract would be useful to understand the nature of appointment of the respondent.
9. The above order was signed by the respondent and, therefore, bound by the terms and conditions of the office order. The question is, termination of the service of the respondent on the expiry of the periods mentioned above would amount to retrenchment? Facts in this case clearly show, so found by the Labour Court itself that the respondent had not worked continuously for 240 days in an year to claim the benefit of Section 25F, G and H of the ID Act. Therefore, the only question to be considered is whether termination of service of the respondent on the basis of the contract of appointment would amount to retrenchment within the meaning of Section 25H of the ID Act so as to claim reinstatement.
12. Learned counsel appearing for the respondent submitted that the respondent is entitled to the benefit of Section 25G & H,
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the same are extracted herein below:
"25G. Procedure for retrenchment.- Where any workman in an industrial establishment, who is a citizen of India, is to be retrenched and he belongs to a particular category of workmen in that establishment, in the absence of any agreement between the employer and the workman in this behalf, the employer shall ordinarily retrench the workman who was the last person to be employed in that category, unless for reasons to be recorded the employer retrenches any other workman.
25H. Re- employment of retrenched workmen.- Where any workmen are retrenched, and the employer proposes to take into his employ any persons, he shall, in such manner as may be prescribed, give an opportunity 2[ to the retrenched workmen who are citizens of India to offer themselves for re- employment and such retrenched workman] who offer themselves for re- employment shall have preference over other persons."
13. Section 25H will apply only if the respondent establishes that there had been retrenchment. Facts will clearly indicate that there was no retrenchment under Section 2(oo) read with Section 2(bb) of the ID Act. Consequently, Section 25H would not apply to the facts of the case. Similar is the factual and legal situation in the civil appeal arising out of SLP(C) No.5387 of 2012 as well.
14. We are sorry to note that the Labour Court, learned Single Judge and the Division Bench have not properly appreciated the factual and legal position in this case. When rights of parties are being adjudicated, needless to say, serious thoughts have to be bestowed by the Labour Court as well as the High Court. For the above-mentioned reasons we allow both the appeals, set aside the
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award passed by the Labour Court and confirmed by the High Court. However, there will be no order as to costs."
9. As there is no retrenchment, the provisions of Sections
25(G) and 25(H) of the Industrial Disputes Act would not
apply, as held by the Apex Court in the aforementioned
case. However, since the State has not challenged the
impugned award, this Court is not in a position to set it
aside. In that background, this Court declines to
interfere with the impugned award.
10. The decision relied upon by the learned advocate in the
case of Rameshbhai Bhatibhai Pagi v. Deputy
Executive Engineer (supra) did not pertain to a
contractual employee; therefore, the said judgment is
not applicable to the present petitioner. Accordingly,
this petition deserves to be dismissed.
11. Resultantly, this petition is dismissed.
12. Rule is discharged.
(M. K. THAKKER,J) NIVYA A. NAIR
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