Citation : 2025 Latest Caselaw 7017 Guj
Judgement Date : 29 September, 2025
NEUTRAL CITATION
C/SCA/488/2024 JUDGMENT DATED: 29/09/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 488 of 2024
With
R/SPECIAL CIVIL APPLICATION NO. 525 of 2024
With
R/SPECIAL CIVIL APPLICATION NO. 569 of 2024
With
R/SPECIAL CIVIL APPLICATION NO. 571 of 2024
With
R/SPECIAL CIVIL APPLICATION NO. 572 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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STATE OF GUJARAT
Versus
VITHTHALBHAI GANGABHAI JADHAV
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Appearance:
MR ADITYA DAVDA, ASST. GOVERNMENT PLEADER for the Petitioner(s)
No. 1
MR YOGEN N PANDYA(5766) for the Respondent(s) No. 1
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CORAM:HONOURABLE MRS. JUSTICE M. K. THAKKER
Date : 29/09/2025
COMMON ORAL JUDGMENT
1 Rule, returnable forthwith. Learned advocate Mr.Pandya waives service of notice of Rule on behalf of the respondents.
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C/SCA/488/2024 JUDGMENT DATED: 29/09/2025
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2 Since the issue raised in the these petitions are similar, they are being decided by a common judgment. The facts of Special Civil Application No.488 of 2024 are taken for the purpose of adjudication.
3 These petitions are filed by the State challenging the award passed by the learned Labour Court, Valsad, dated 05.11.2022, whereby the learned Labour Court allowed the Reference filed by the present respondent, granting the relief of reinstatement with 50% back wages from the date of filing of the Reference, i.e. 01.07.2015.
4 It is the case of the present petitioner that the respondent was working with the petitioner as a Watchman and was receiving monthly wages of Rs.4,000/-. His services were terminated with effect from 01.07.2015 without following the due procedure prescribed under the Industrial Disputes Act, 1947 (hereinafter referred to as 'the I.D. Act'), which came to be challenged before the learned Labour Court by filing a Reference under Section 10(1) of the I.D. Act. After considering the evidence placed on record by the learned advocates for the respective parties, the Reference was decided in favour of the respondent by granting the relief mentioned hereinabove, which is the subject matter of challenge before this Court.
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5 Heard the learned AGP Mr.Aditya Davda for the petitioner-State and the learned advocate Mr.Yogen Pandya for the respondents.
6 Learned AGP Mr. Aditya Davda submits that no evidence was produced by the respondent to establish the claim of continuous service as contemplated under Section 25B of the I.D. Act. However, the learned Labour Court, by drawing an adverse inference against the present petitioner, has believed the case of continuous service and consequently held that there was a violation of Section 25F of the I.D. Act. Learned AGP Mr.Davda further submits that though an application for production of documents below Exhibit 30 was complied with by the present petitioner by producing the wage register for the period from 2012 to 2015 along with xerox copies of the cash book, the learned Court has disbelieved the case of the petitioner and discarded the said evidence on the ground that the basis on which such documents were prepared had not been placed on record. It is submitted that in the absence of the specific plea regarding suppression of the aforesaid documentary evidence, the learned Court has committed an error in drawing an adverse inference against the petitioner and in granting relief in favour of the respondent.
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6.1 Learned AGP Mr. Davda relies upon the decisions rendered by the Apex Court in R.M. Yellatti vs. Assistant Executive Engineer, reported in (2006) 1 SCC 106, and Municipal Corporation, Faridabad vs. Siri Niwas, reported in (2005) 5 SCC 100, and submits that the learned Labour Court has committed an error in granting relief in favour of the respondent. It is submitted by the learned AGP Mr.Davda that no specific date of appointment was mentioned either in the statement of claim or in the examination-in- chief, and though the respondent failed to discharge the onus of proving his case, the learned Court has erroneously allowed the Reference. Learned AGP Mr.Davda further submits that the burden to establish continuous service is upon the workman, and an oral assertion that he worked continuously for 240 days cannot substitute proof, as held by the Apex Court in the case of Siri Niwas (supra). Therefore, the learned Court has committed an error in granting relief to the respondent. Learned AGP Mr.Davda also submits that the Labour Court itself has recorded that the workman could not have remained idle for such a long period, yet while so observing, it has granted 50% back wages, which is contradictory in nature,
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and hence the impugned award also deserves to be set aside on this ground.
6.2 Learned AGP Mr. Davda has relied upon the decisions of the Apex Court rendered in the case of Uttar Pradesh State Brassware Corpn.Ltd. Versus Udai Narain Pandey, reported in (2006) 1 SCC 479, and in the case of Raj Kumar Versus Director Of Education, reported in (2016) 6 SCC 541, and has submitted that even if the termination is held to be defective, the award of 50% back wages is unsustainable and is required to be set aside. It is submitted that the learned Labour Court has committed an error in granting the relief of 50% back wages while simultaneously holding the termination to be illegal. In that background also, the impugned award deserves to be set aside.
7 Per contra, learned advocate Mr. Pandya, appearing for the respondent, submits that it is an undisputed fact that the services of the respondent came to be terminated on 01.07.2015 without following the due procedure prescribed under the I.D. Act. Learned advocate Mr. Pandya submits that though a production application was filed seeking attendance sheets and muster rolls, the petitioner instead produced the tarij patrak and copies of the cash book
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for the period from 2012 to 2015. It is submitted by the learned advocate Mr. Pandya that no explanation was offered in the affidavit for non-production of the documents specifically sought for, and therefore, the learned Labour Court was fully justified in drawing an adverse inference in favour of the respondent. Learned advocate Mr. Pandya further submits that during the course of evidence, the respondent had stated on oath that the petitioner had not provided any attendance card, pay slip, leave card, or I.D. card, and hence the respondent had no option but to move the production application seeking such documents which were admittedly in possession of the petitioner. It is further submitted by the learned advocate Mr. Pandya that the employer-employee relationship was not disputed even by the witness examined on behalf of the petitioner, and therefore, no error can be said to have been committed by the learned Labour Court in granting the relief of reinstatement with 50% back wages. In this background, the petitions deserve to be dismissed and the impugned award is required to be confirmed.
8 Having considered the submissions advanced by the learned advocates for the respective parties and upon perusal of the record, it emerges that the statement of claim was filed alleging illegal
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termination with effect from 01.04.2015, contending that the respondent had been working continuously as a watchman for about 13 years. It was further averred in the statement of claim that though the respondent had completed 240 days in each year, he was made to work for 30-31 days in a month but was paid wages only for 20-25 days, and upon raising a grievance in this regard, his services came to be terminated.
8.1 The petitioner, in its written statement, denied the claim and contended that the respondent was engaged purely on an ad-hoc basis for seasonal work and had not completed 240 days of continuous service as required under Section 25B of the I.D. Act. It was therefore submitted by the learned advocate Mr. Pandya that the respondent was not entitled to the protection of Section 25F of the I.D. Act and consequently, the termination could not be held to be illegal or void.
8.2 During the course of proceedings, the respondent filed an application below Exhibit 10 seeking production of documentary evidence such as the attendance register for the period from 2001 to 2016 and a copy of the relevant grant. The said application came to be allowed by the learned
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Labour Court vide order dated 03.10.2009. In compliance thereof, an affidavit dated 13.08.2018 was filed by the Range Forest Officer, Chikhli, stating that since the work was seasonal in nature, no formal appointment orders were issued. It was further stated that the attendance register sought by the respondent was not available as the respondent was engaged as a daily-rated labourer and had worked for 15 to 18 days in each month, and in absence of such records, the same could not be produced.
8.3 In support of its defence, the petitioner produced the tarij patrak under the signature of the Range Forest Officer, Chikhli, showing that the respondent had not completed 240 days of service in any given year along with typed copies of the cash book were also produced, reflecting details of wage payments for the period from 01.04.2002 to 30.03.2014, with the contention that the said documents clearly established that the respondent had not worked for 240 days in any calendar year.
8.4 Another application was thereafter filed below Exhibit 16 seeking production of the attendance register as well as the muster roll for the period from 2001 to 2016. In response, an affidavit came
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to be filed by the witness of the petitioner stating that the said documents were never maintained and, therefore, in absence of their existence, the same could not be produced.
9 During the course of examination of the petitioner's witness, a suggestion was put regarding the maintenance of the attendance register, which was answered in negative form. The only admission made during cross-examination was that the employees were being paid wages on a daily-wage basis; however, the wage register was not produced before the Court. It was further admitted that the tarij patrak was prepared on the basis of the cash book, which was produced below Exhibit 15/1.
9.1 On the other hand, if the cross-examination of the respondent is referred to, it stands admitted that he worked with the petitioner on a need basis. With regard to his assertion that he had worked for 30-31 days in a month but was paid wages for only 20-25 days, no documentary evidence was produced. The learned Labour Court proceeded to decide the Reference solely on the basis of drawing an adverse inference, observing that the attendance register and muster roll were not produced. However, insofar as the allegation of
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withholding the said documents is concerned, neither through cross-examination nor by way of any documentary evidence has the respondent established his case.
10 This Court has referred to the decision rendered by the Apex Court in the case of R.M. Yellatti (supra), wherein it is held that the burden is discharged by the workman only upon adducing cogent evidence, both oral and documentary. The drawing of an adverse inference would depend upon the facts of each case, and a mere affidavit or self-serving statement made by the claimant would not suffice for discharging the burden placed upon the workman to prove that he had worked for 240 days in a given year. It has further been held that mere non- production of the muster roll, per se, without any specific plea or proof of suppression by the claimant- workman, would not be a valid ground for the Labour Court or Tribunal to draw an adverse inference against the management.
11 This Court has also referred the decision rendered by the Apex Court in the case The Range Forest Officer Vs S.T. Hadimani, reported in (2002) 3 SCC 25 wherein it is held that the claim of completion of 240 days was denied by the employer.
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It was then for the workman to lead evidence to show that he had in fact work for 240 days in a preceding year of his termination.
12 In the case of Siri Niwas (supra), the Apex Court has held that even in cases where the provisions of the Indian Evidence Act apply, a Court of law may or may not draw a presumption that, if a party possessing the best possible evidence fails to produce the same, such evidence would have gone against its contention. However, the position would be different where, despite a specific direction issued by the Court, such evidence is withheld. The presumption of adverse inference for non-production of evidence is, therefore, discretionary and not mandatory. It depends upon the facts and circumstances of each case, and even in cases of intentional non-production, there may exist justifiable reasons which could explain such conduct on reasonable grounds.
13 This Court has also referred to the decision rendered by the Apex Court in the case of The Manager, Reserve Bank of India v. S. Mani and Others, reported in (2005) 5 SCC 100, wherein it has been held that the finding of the learned Tribunal placing the burden upon the employer was erroneous. The
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Apex Court observed that the initial burden of proof lies upon the workman to establish that he had completed 240 days of continuous service in the preceding year. The same view has been reiterated by the Apex Court in Batala Cooperative Sugar Mills Ltd. v. Sowaran Singh, reported in (2005) 8 SCC 25, and in Ranip Nagar Palika v. Babuji Gabhaji Thakore and Others, reported in (2007) 13 SCC 343, wherein it has been held that the burden of proof lies on the workman to demonstrate that he had worked continuously for 240 days in the preceding year, and it is incumbent upon the workman to adduce cogent evidence, apart from his own deposition, to substantiate his claim of employment with the employer.
14 If the above ratio is applied to the facts of the present case, it clearly emerges that, admittedly, except for the self-serving statement and declaration on oath, no other evidence was produced by the respondent to discharge the onus of proving his case or to establish the continuity of service. During the course of cross-examination, it was also admitted by the witness of the petitioner that the attendance register and muster rolls were never maintained, and that the only document available, namely, the Tarij Patrak, which was prepared on the basis of entries in
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the cash book, was held by the learned Labour Court to be insufficient, and an adverse inference came to be drawn therefrom.
15 In the opinion of this Court, in the absence of any material to establish deliberate suppression or withholding of documents that were in possession of the petitioner, the learned Labour Court has committed an error in granting relief solely on the basis of adverse inference. Therefore, the impugned award deserves to be interfered with, and the petition is required to be allowed.
16 Resultantly, this petition is allowed. The order passed in References (L.C.V.) No.140 of 2016 is quashed and set aside. Rule is made absolute accordingly.
(M. K. THAKKER,J) M.M.MIRZA
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