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Thermoking vs Rashtriya Gen.Maz.Union - Delhi High Court Case

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Filed March 24th, 2026
Detected March 24th, 2026
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Summary

The Delhi High Court has issued a judgment in the case of M/s. Thermoking vs. P.O. & Rashtriya Gen.Maz.Union. The court is reviewing a prior award from the Labour Court that found the termination of workmen's services to be illegal and ordered their reinstatement with back wages.

What changed

The Delhi High Court, in its judgment dated March 24, 2026, is reviewing a Writ Petition filed by M/s. Thermoking challenging an award from the Labour Court No. IV. The Labour Court's award, dated August 20, 2002, had declared the termination of services of certain workmen as illegal and unjustifiable, mandating their reinstatement with back wages. The case involves a dispute between the management of M/s Thermoking and its workmen represented by the Rashtriya General Mazdoor Union.

This judgment signifies a critical stage in the legal proceedings concerning employment termination and reinstatement. Compliance officers in similar industrial disputes should monitor the High Court's final decision for potential precedents regarding the interpretation of labor laws and the enforcement of Labour Court awards. The outcome will determine the final resolution for the affected workmen and establish legal standing for M/s Thermoking regarding the challenged award.

What to do next

  1. Review the full judgment for detailed findings on illegal termination and reinstatement orders.
  2. Assess potential impact on existing employment termination policies and procedures.
  3. Consult legal counsel for interpretation of the High Court's final ruling and its applicability.

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M/S.Thermoking vs P.O.& Rashtriya Gen.Maz.Union on 24 March, 2026

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* IN THE HIGH COURT OF DELHI AT NEW DELHI
Reserved on: 13.01.2026
Date of decision: 24.03.2026
Uploaded on: 24.03.2026
+ W.P.(C) 3083/2003, CM APPL. 13453/2004, CM APPL. 13454/2004,
CM APPL. 3769/2005, CM APPL. 6331/2006, CM APPL. 2862/2010
M/S.THERMOKING .....Petitioner
Through: Mr. Ashim Vachher, Sr. Advocate
with Ms. Saiba M. Rajpal, Mr.
Vinayak, Advs.
versus

                                P.O.& RASHTRIYA GEN.MAZ.UNION                    .....Respondent
                                              Through: None
                                CORAM:
                                HON'BLE MS. JUSTICE SHAIL JAIN
                                                 JUDGMENT SHAIL JAIN, J.
  1. The instant Writ Petition has been filed by the Petitioner, M/s Thermoking, through its Proprietor Shri Pradeep Khanna, under Articles 226 and 227 of the Constitution of India, inter alia, seeking quashing of the Award dated 20.08.2002 passed by the learned Labour Court No. IV, Karkardooma Courts, Shahdara, Delhi in Industrial Dispute bearing No. 222/91 (hereinafter 'Impugned award'). The said dispute arose between the Management of M/s Thermoking and its workmen represented through Rashtriya General Mazdoor Union (Regd.), wherein the Labour Court held that the services of the workmen had been terminated illegally and Signature Not Verified Signed By:KAPIL W.P.(C) 3083/2003 Page 1 of 28 KUMAR Signing Date:24.03.2026 16:10:55 unjustifiably and accordingly directed their reinstatement along with back wages.

BRIEF FACTS:

  1.    The Petitioner is a proprietorship concern engaged in the manufacture
                      of electrical appliances having its factory situated at A-24, Phase-I, Naraina
                      Industrial Area, New Delhi. Respondent Nos. 3 to 12 were employed with
                      the Petitioner during different times in various capacities and were members
                      of Rashtriya General Mazdoor Union/Respondent No. 2.
    
  2.    The Respondent/workmen, however, through Respondent No.2 vide
                      letter dated 05.11.1990 addressed to the Labour Inspector, contended that
                      they had been illegally refused employment and that their services had been
                      terminated without compliance with law. They requested the Labour
                      Inspector to direct the management to take workers back into service and
                      also sought intervention of the Labour Inspector for being allowed to
                      perform their duties and for payment of earned wages etc. Consequently, the
                      Labour Inspector directed the workmen to be present at the factory gate on
                      6.11.1990.
    
  3.    On 06.11.1990, when the workmen reported at the factory, an incident
                      took place at the factory premises, following which complaints were lodged
                      by the management and also by the workmen with the police authorities.
                      Pursuant thereto, a meeting was convened before the Assistant
                      Commissioner of Police (A.C.P.), Naraina, in the presence of the Union
                      leader, Sh. Pyare Lal, and the representatives of the Petitioner. In the said
                      meeting, a settlement was reached between the management and Sh. Pyare
                      Lal on behalf of the workmen, whereby, it was agreed that the workmen
                      would resume their duties with effect from 28.11.1990 and would be paid Signature Not Verified Signed By:KAPIL                W.P.(C) 3083/2003                                                Page 2 of 28 KUMAR Signing Date:24.03.2026 16:10:55 8.33% bonus along with their salary for the month of October, 1990. Sh.
                      Pyare Lal also assured that all the workmen would report for duties on the
                      agreed date. According to the Petitioner, however, the workmen did not
                      report for duty despite the said settlement, whereas the workmen alleged that
                      they were prevented by the Petitioner itself from resuming their duties.
    
  4.    As alleged by the Petitioner, in the year 1990, particularly with effect
                      from 02.11.1990, the Respondent/workmen stopped reporting for duty
                      without proper intimation or any sanctioned leave. In pursuance to which,
                      the Petitioner addressed a letter dated 01.12.1990 to The Rashtriya Hazdoor
                      Union/Respondent No. 2 complaining about the continued absence of
                      workmen without any notice despite the settlement before the A.C.P. &
                      calling upon the workmen, for the last time to resume their duties within
                      three days.
    
  5.    Thereafter, the Respondent/workmen approached the 'appropriate
                      government' (Govt. of NCT of Delhi) raising an industrial dispute
                      complaining about the conduct of the Petitioner, pursuant to which
                      Conciliation proceedings were initiated before the Conciliation Officer.
                      During the conciliation proceedings held on 17.01.1991, the Petitioner
                      expressed its willingness to take workmen back on duties without any
                      condition and on the same pay & other benefits as they were receiving
                      earlier. However, workmen did not resume their duties, and, consequently,
                      the conciliation proceedings ultimately failed.
    
  6.    Consequently, by reference dated 18.06.1991, the industrial dispute
                      was referred by Secretary (Labour) Delhi Administration, Delhi for
                      adjudication of the dispute to Labour Court-IV, Delhi, and was registered as
                      ID No. 222/91. The terms of reference were:
    

Signature Not Verified Signed By:KAPIL W.P.(C) 3083/2003 Page 3 of 28 KUMAR Signing Date:24.03.2026 16:10:55

"Whether the services of S/Shri Kamal Kant, Madan
Lal, Ram Vichan, Bhavender, Shankar, Ramu,
Baleshwar, Prabhu Nath, Sumant, Bisram and Ram
Kishore have been terminated illegally and/or
unjustifiably by the management, and if so, to what
relief are they entitled and what directions are
necessary in this respect?"
8. Before the Labour Court, the Petitioner pleaded that the workmen had
abandoned their services on their own will and were gainfully employed
elsewhere, whereas the workmen alleged that their services had been
illegally terminated. In the Statement of Claim, the Respondent/workmen
further contended that the management had failed to provide statutory
benefits, including appointment letters, minimum wages, bonus, and other
service entitlements, and that the dispute arose when such benefits were
demanded by them. Evidence was led by both sides. Shortly before the
pronouncement of the Award, the Petitioner filed an application dated
20.08.2002 seeking to place on record additional material regarding the
alleged gainful employment of the workmen; however, the said application
was not adjudicated separately. Consequently, the Labour Court on the basis
of the pleadings and evidence(s) led by the parties vide 'Impugned award'
held the termination to be illegal and directed reinstatement with back
wages. The said order reads as under:

"Even if, for sake of arguments, we assume the stand of
management correct, then, at least, workmen can be
held to be guilty of abandoning the job. Abandonment
is the specie of mis-conduct and for that management
was duty bound to hold proper enquiry.- Admittedly
neither any charge-sheet was issued, nor, any enquiry
was held. I have, thus, no hesitation in holding that Signature Not Verified Signed By:KAPIL W.P.(C) 3083/2003 Page 4 of 28 KUMAR Signing Date:24.03.2026 16:10:55 services of the workmen were terminated illegally and
unjustifiably. They are directed to be reinstated. They
shall be entitled to wages at the rate prescribed under Minimum Wages Act for the intervening period.
Reference is answered accordingly."
9. Aggrieved thereby, the Petitioner filed the present Writ petition. The
operation of the Impugned award was initially stayed vide order dated
19.05.2003; however, the said stay was subsequently vacated vide order
dated 02.11.2004, and the Petition itself was dismissed for non-prosecution.
The petition was thereafter restored to its original position vide order dated
08.04.2005. It is pertinent to note that during the pendency of the present
proceedings, the Respondent/workmen did not appear on several occasions
and were proceeded ex parte, thereafter the matter was heard on merits.

  1.   During the pendency of the Writ petition, this Court vide order dated
                      09.09.2004, issued certain interim directions regarding rejoining of duties by
                      workmen. In compliance thereof, some of the workmen reported for duty but
                      admittedly worked only for a limited period and thereafter again stopped
                      reporting for duty.
    
  2.   On 13.02.2006, the workmen submitted a written complaint to the
                      S.H.O., P.S. Naraina, New Delhi, as well as to the Labour Commissioner,
                      stating that when they reported for duty in the morning, the employer asked
                      them to wait at the factory gate. After making them wait for a considerable
                      period, the management allegedly stated that they had received no such
                      order from the High Court and, therefore, no workman would be allowed to
                      enter the premises. It was further stated that when the workmen produced a
                      copy of the Court's order before the management, the management became
                      agitated and asked them to leave, stating that they did not care about such Signature Not Verified Signed By:KAPIL                W.P.(C) 3083/2003                                                  Page 5 of 28 KUMAR Signing Date:24.03.2026 16:10:55 orders. The workmen also addressed a letter dated 17.02.2006 to the Labour
                      Commissioner requesting him to direct the management to take them back
                      on duty.
    
  3. Subsequently, vide order dated 14.03.2006, this Court appointed
    Local Commissioner (hereinafter 'LC') to supervise compliance with the
    directions passed by this court in its earlier orders, by making surprise visits
    to the premises.

  4. Pursuant to the directions of this Court, inspections of the Petitioner's
    premises were conducted on various dates between 27.03.2006 and
    11.04.2006 to ascertain the status of the workmen. During the visits,
    discussions were held with the workmen and also with the management. The
    attendance records were also inspected. The parties initially agreed that the
    workmen would resume duties from 31.03.2006, and the workmen were
    subsequently allowed to join duty. However, disputes arose regarding wages
    and payment rates, leading to the workmen refusing to accept the payment
    offered by the management. Thereafter, it was reported that the workmen
    stopped reporting for duty from 01.04.2006 onwards.

  5. The reports of the learned LC recorded that while some workmen
    reported for duty and marked attendance, others did not continue regularly
    and disputes arose regarding wages and working conditions. The reports of
    the LC further indicated that compliance with the interim directions
    remained partial and contested.

  6. On 30.03.2006, the workmen again submitted a written complaint to
    the S.H.O., P.S. Naraina, New Delhi, stating that when they reported for
    duty in the morning, the employer denied them entry into the premises and
    also refused to pay their earned wages.

Signature Not Verified Signed By:KAPIL W.P.(C) 3083/2003 Page 6 of 28 KUMAR Signing Date:24.03.2026 16:10:55 16. Subsequently, the workmen filed an application before this court on
03.04.2006, contending that they were not being allowed to join their duties
and neither their earned wages were paid. They accordingly prayed that the
Petitioner be directed to allow the Respondent /workmen to join and perform
their duties and to disburse the earned wages to the Respondent/workmen in
cash forthwith.

  1.   Furthermore, vide order dated 21.07.2009, liberty was granted to the
                      workmen on an explicit request made by them before this Court to explore
                      the possibility of a settlement with the Petitioner; however, no settlement
                      could be arrived at. Subsequently, on 02.03.2010, the workmen filed an
                      application before this Court seeking reference of the present matter to the
                      Mediation Cell for discussions across the table. Accordingly, vide order
                      dated 15.04.2010, this Court directed the parties to appear before the
                      Mediation Cell of this Court on 26.04.2010.
    
  2.   Vide order(s) dated 7.05.2015 and 14.12.2017, the Writ Petition again
                      came to be dismissed in default due to non-appearance of the parties but was
                      subsequently restored vide order(s) dated 22.05.2015 and 29.07.2019 upon
                      applications filed by the Petitioner explaining his absence and requesting for
                      restoration of the same.
    

ISSUES INVOLVED:

  1. The sole question before this Court at present is:

● Whether the Learned Labour Court was justified in answering the
reference in favour of the workmen by directing reinstatement of
their services with back wages?
Signature Not Verified Signed By:KAPIL W.P.(C) 3083/2003 Page 7 of 28 KUMAR Signing Date:24.03.2026 16:10:55
SUBMISSIONS OF PARTIES:
20. At the outset, learned counsel for the Petitioner submits that the
Impugned award is vitiated as it proceeds on the erroneous assumption that
the services of the workmen were terminated by the management, whereas
no termination order, oral or written, was ever issued. It is submitted that in
the absence of any order of termination, the very reference itself was
misconceived and the finding of illegal termination is unsustainable.

  1. It is further submitted that the consistent stand of the management has
    been that the workmen, from 02.11.1990, voluntarily stopped reporting for
    duty and abandoned their services on their own accord. Learned counsel
    submits that the management had issued notice dated 05.11.1990 and
    subsequent communications calling upon the workmen to resume their
    duties, the receipt of which was never disputed, but the workmen failed to
    respond positively and did not rejoin.

  2. Learned counsel further points out that in the rejoinder filed before
    the Labour Court, the workmen admitted receipt of the management's letter
    dated 01.12.1990, yet despite such admitted communication and repeated
    opportunities, they did not report back for duty, thereby clearly
    demonstrating their lack of intention to continue the service.

  3. It is also submitted that after the incident dated 06.11.1990, a
    settlement was arrived at on 28.11.1990 before the Assistant Commissioner
    of Police, Naraina, wherein the workmen agreed to resume duties. However,
    despite the said settlement and the readiness of the management to take them
    back, the workmen did not rejoin. The conciliation proceedings further
    record that the management was willing to reinstate the workmen without
    conditions, but the workmen themselves failed to avail of the opportunity.

Signature Not Verified Signed By:KAPIL W.P.(C) 3083/2003 Page 8 of 28 KUMAR Signing Date:24.03.2026 16:10:55 24. In this backdrop, learned counsel for the Petitioner submits that the
Labour Court erred in accepting the allegation of oral refusal of employment
while disregarding the consistent evidence on record showing voluntary
abandonment. It is further submitted that prolonged and unexplained
absence without leave or intimation constitutes abandonment of service.
Reliance in this regard is placed on Punjab and Sind Bank v. Sakattar
Singh
, (2001) 1 SCC 214, Vijay S. Sathaye v. Indian Airlines Ltd., (2013)
10 SCC 253, and Vivekanand Sethi v. Chairman, (2005) 5 SCC 337,
wherein it has been held that abandonment can be inferred from conduct and
continued absence beyond the permissible period and it gives rise to a
presumption that the employee has ceased to remain in service, shifting the
burden on the workman to prove otherwise.

  1. Reliance is also placed on the judgment of the Division Bench of this
    Court in Sukhdev Singh v. Delhi Development Authority, 2011 SCC
    OnLine Del 4680, to submit that abandonment of service can be inferred
    from surrounding circumstances and conduct, and the requirement of a
    domestic enquiry is not absolute in every such case.

  2. Learned counsel further submits that even during the pendency of the
    present Writ petition, despite opportunities granted pursuant to the orders of
    this Court, the workmen did not continuously report for duty. Also, the
    reports of the LC appointed by this Court record that the workmen were not
    interested in working, raised disputes regarding wages, and thereafter
    remained absent without justification, thereby reinforcing the management's
    case of abandonment.

Signature Not Verified Signed By:KAPIL W.P.(C) 3083/2003 Page 9 of 28 KUMAR Signing Date:24.03.2026 16:10:55 27. Lastly, it is submitted that in view of the prolonged absence of the
workmen and their failure to demonstrate continuous willingness to work,
no presumption of unemployment can be drawn. Reliance is placed on Navin J. Suri v. Modi Rubber Ltd., MANU/MH/1333/2004, to submit that
where a workman does not explain how he sustained himself during the
period of absence, the Court may draw an inference that he was gainfully
employed elsewhere.

  1. Since none appears on behalf of the Respondent(s) despite ample
    opportunity, this Court is left with no other option but to proceed with the
    matter ex parte.

  2. Respondent Nos. 3-12, who are the concerned workmen, have not
    been appearing before this Court for a considerable period and have
    remained unrepresented on several dates of hearing. Accordingly, their stand
    is noticed only on the basis of the counter affidavit and other documents
    filed on record.

(As Emerging from the Counter Affidavit on Record)

  1. From the counter affidavit, it is the stand of Respondents that the Writ
    petition is not maintainable, inter alia, on the ground that the Petitioner has
    allegedly not approached this Court with clean hands and has concealed and
    misrepresented material facts.

  2. It is further averred in the counter affidavit that the Writ petition
    raises disputed questions of fact which, according to the Respondents, ought
    not to be examined in exercise of Writ jurisdiction, particularly when the
    Labour Court has already returned findings on evidence.

  3. The Respondents have pleaded that the Petitioner is seeking to re-
    agitate issues already decided by the Labour Court, including the rejection Signature Not Verified Signed By:KAPIL W.P.(C) 3083/2003 Page 10 of 28 KUMAR Signing Date:24.03.2026 16:10:55 of the application dated 20.08.2002 for leading additional evidence, which,
    according to them, was not separately challenged and has attained finality.

  4. Respondents further have denied abandonment of service and have
    asserted that their services were illegally terminated when they demanded
    statutory benefits, including bonus and earned wages. It is their pleaded case
    that it is improbable for workmen to abandon service abruptly without
    claiming service benefits.

  5. The Respondents have further averred that they continued to report
    for duty but were refused entry by the management, compelling them to
    approach the Labour Inspector and the police. They have disputed the
    allegations relating to the incident dated 06.11.1990 and have alleged that
    they were manhandled by the management.

  6. It is also the Respondents' case, as pleaded, that there was no valid
    settlement as claimed by the Petitioner and that the notices relied upon by
    the Petitioner, including the notice dated 01.12.1990, were either fabricated
    or issued to create evidence. They have denied that they failed to report for
    duty pursuant to any such settlement or notice.

  7. The counter affidavit further states that during conciliation
    proceedings, it was the Petitioner who allegedly refused to take the
    Respondents back on duty, and that the failure of conciliation, according to
    the Respondents, cannot be attributed to them.

  8. The Respondents have supported the Impugned award in their
    pleadings by contending that the Labour Court afforded full opportunity to
    both sides, appreciated the evidence on record, and rightly disbelieved the
    testimony of the management witness, while granting reinstatement with
    back wages on the ground that the Respondents remained unemployed.

Signature Not Verified Signed By:KAPIL W.P.(C) 3083/2003 Page 11 of 28 KUMAR Signing Date:24.03.2026 16:10:55 38. The Respondents submit that they duly reported for duty pursuant to
the interim orders of this Court but were permitted to join only under
supervision and were neither assigned regular work nor paid the amounts
and wages directed, owing to repeated obstruction and denial of entry by the
Petitioner-management. It is submitted that the alleged non-working of the
Respondents was not voluntary, but a direct consequence of the Petitioner's
wilful non-compliance with the orders of this Court.

DISCUSSION:

  1. This Court has heard the learned counsel for the
    Petitioner/Management. The Respondent/workmen have remained absent
    despite repeated opportunities and therefore are proceeded ex parte.
    However, this Court has independently perused the Impugned award, the
    pleadings, applications, and documentary material placed on record by the
    Respondent/workmen, in addition to the submissions and material relied
    upon by the Petitioner/Management, in order to adjudicate the present
    petition on its merits.

  2. In light of the rival submissions, the issue that arises for consideration
    before this Court is whether the Labour Court erred in holding that the
    services of the Respondent/workmen had been illegally terminated, despite
    the plea of voluntary abandonment and in the absence of any written or
    formal order of termination.

  3. It is well settled that while exercising jurisdiction under Articles 226 and 227 of the Constitution of India, this Court does not act as a Court of
    appeal over the findings recorded by the Labour Court. The scope of judicial
    review is limited and interference is warranted only where the Impugned Signature Not Verified Signed By:KAPIL W.P.(C) 3083/2003 Page 12 of 28 KUMAR Signing Date:24.03.2026 16:10:55 award suffers from patent illegality, perversity, jurisdictional error, or where
    material evidence has been ignored or irrelevant considerations have been
    taken into account.

  4. At the same time, it is equally settled that the power of judicial review
    is intended to ensure that grave injustice is not perpetuated and that findings
    which are unsupported by evidence or based on erroneous application of law
    do not sustain. Where the conclusions drawn by the Labour Court are not
    borne out from the material on record or are contrary to settled legal
    principles, this Court would be justified in exercising its supervisory
    jurisdiction to interfere with the Award.

  5. The principal grievance of the Petitioner is that it were the workmen
    who had abandoned their duties on their own, despite the willingness of the
    Petitioner to allow them to continue working with all necessary and
    consequential benefits. According to the Petitioner, it was never the case that
    the management denied them employment or terminated their services. On
    the other hand, the workmen have, since the inception of the dispute,
    consistently maintained that they were always ready and willing to work but
    were not permitted to do so by the management, despite the directions issued
    by the Labour Court as well as by this Court.

  6. The Labour Court, after due consideration of the pleadings and the
    documents placed on record, answered the reference in favour of the
    workmen and directed their reinstatement and minimum wages for the
    intervening period. The Labour Court further held that the workman could at
    best be held to have abandoned the job. It further went on to hold that
    abandonment being a species of misconduct, the management was duty-

Signature Not Verified Signed By:KAPIL W.P.(C) 3083/2003 Page 13 of 28 KUMAR Signing Date:24.03.2026 16:10:55 bound to hold a proper domestic enquiry before taking any adverse action
against the workman.

  1. Now adverting to the rival submissions urged on behalf of the parties. The preliminary objection of the Petitioner is that the reference was not maintainable in the absence of a written order of termination. Section 2(oo) of the Industrial Disputes Act, 1947(hereinafter 'the Act'), defines 'retrenchment' as:

"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; or
[(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]

(c) termination of the service of a workman on the
ground of continued ill-health;]"
46. The term 'retrenchment' has been defined as the termination by the
employer of the service of a workman for any reason whatsoever, except
those specifically excluded, namely voluntary retirement, superannuation, or
termination on account of the non-renewal of a contract of employment. The
statute does not provide that, for an act of termination to constitute
retrenchment, a written order or formal communication is mandatory; such
termination may also be oral or may be inferred from the conduct of the Signature Not Verified Signed By:KAPIL W.P.(C) 3083/2003 Page 14 of 28 KUMAR Signing Date:24.03.2026 16:10:55 employer. Had the legislature intended that retrenchment must necessarily
be effected through a written order, it would have expressly incorporated
such a requirement in the statute.

  1. As also is well settled by judicial precedents that termination of
    service need not necessarily be evidenced by a formal written order. An oral
    refusal of employment or denial of duty, if established on evidence, would
    equally constitute termination within the meaning of the Act. Therefore, the
    contention that, in the absence of a written order, there can be no
    retrenchment or termination, is untenable in law and lacks statutory backing.
    In the present case, the Labour Court, upon appreciation of evidence, has
    returned a categorical finding that the workmen were refused employment.
    Such cessation of employment squarely falls within the ambit of Section
    2(oo)
    of the Act, and therefore, the reference made by the appropriate
    Government under Section 10 of Act cannot be said to be invalid or without
    jurisdiction.

  2. Coming to the second argument of the Petitioner that the workmen
    voluntarily stopped reporting for duty and abandoned their services on their
    own accord and management never stopped them from working. The same
    issue was also raised before the Labour Court and in order to adjudicate this
    dispute, the Labour Court examined the oral evidence led by the parties. Ten
    workmen entered the witness box and deposed in support of their claim,
    whereas the management examined MW-1 Shri Paramjeet Singh. The
    Labour Court, while evaluating the testimony of MW-1, recorded the
    following finding:

"The testimony of MW-1 Paramjeet Singh is most
damaging. He had testified that he did not know under Signature Not Verified Signed By:KAPIL W.P.(C) 3083/2003 Page 15 of 28 KUMAR Signing Date:24.03.2026 16:10:55 what circumstances the workmen were keeping away.
It gives credit to the story of the workmen that they had
been refused employment. No reason whatsoever has
been assigned for refusing duties to the workmen. It
just points out to one thing that services of the
workmen had been dispensed with without any cogent
reason by the management."
49. The testimony of the sole witness on the behalf of management
reflects that it does not support the case set up by the management. Rather, it
lends credence to the version put forth by the workmen. The admission
made by MW-1 that he was unaware of the circumstances under which the
workmen were allegedly kept away from duty weakens the stand of the
management and strengthens the contention of the workmen that they had
been refused employment. In the absence of any cogent explanation from
the management for denying duties to the workmen, the inference drawn by
the Labour Court that the services of the workmen had been dispensed with
without any justifiable reason cannot be said to be unfounded. Assuming
arguendo, that the stand of the Petitioner is correct, even then the maximum
course of action warranted on the part of the management would have been
to initiate disciplinary proceedings by issuing show cause notices and
conducting a proper domestic enquiry. Direct termination of the services of
the workmen without following the principles of natural justice cannot be
justified.

  1. The counsel for Petitioner also contended that despite various
    communications, repeated opportunities and even a settlement agreement to
    the same, workmen did not report back for duty, thereby clearly
    demonstrating their lack of intention to continue in service. However, this
    contention cannot be accepted in toto. The record reflects that the workmen Signature Not Verified Signed By:KAPIL W.P.(C) 3083/2003 Page 16 of 28 KUMAR Signing Date:24.03.2026 16:10:55 were also actively pursuing the matter and had even filed an application
    before this Court when they were allegedly not allowed to resume their
    duties after the specific directions of this court, seeking appropriate
    directions to the Petitioner to comply with the orders of the Court and permit
    them to work. In these circumstances, it cannot be conclusively held that the
    workmen were voluntarily abstaining from working or intentionally
    disregarding the directions of this Court.

  2. Furthermore, to support his contention Ld. Counsel for the Petitioner
    places reliance on Punjab and Sind Bank (supra), Vijay S. Sathaye (supra), and Vivekanand Sethi (supra), contending that it has been held by
    Hon'ble the Supreme Court as also by various High Courts that
    abandonment can be inferred from conduct and continued absence beyond
    the permissible period and it gives rise to a presumption that the employee
    has ceased to remain in service, shifting the burden on the workman to prove
    otherwise.

  3. However, the said decisions do not advance the case of the Petitioner
    in the facts of the present matter. In those cases, the employer being a Public
    Sector Undertaking coupled with the fact that several notices were issued to
    the employees calling upon them to resume duty, clearly spelling out the
    possible consequences of continued absence. In such circumstances,
    abandonment of service was inferred. The factual matrix of the present case
    is materially different and, therefore, the said precedents do not apply
    squarely to the case at hand.

  4. It is also a matter of record that the Petitioner moved an application
    before this court being CM No. 3769/2005 under Section 151 CPC, 1908
    seeking direction from this court against the workmen to accept the Signature Not Verified Signed By:KAPIL W.P.(C) 3083/2003 Page 17 of 28 KUMAR Signing Date:24.03.2026 16:10:55 payments in terms of the orders dated 26.10.2004 and 16.02.2005 and to
    resume duties, asserting its willingness to comply with the orders passed by
    this Court. Vide order dated 16.02.2005, this Court directed that the earlier
    order dated 26.10.2004 be complied with and further directed that upon
    workmen reporting for duty, they would be paid wages in accordance with
    the applicable law. Thereafter, vide dated 28.09.2005, this Court recorded
    the statement made on behalf of the Petitioner that it had no objection to the
    Respondents continuing the service. Subsequently, vide order dated
    30.01.2006, specific directions were issued to the workmen to report for
    duty at the Petitioner's establishment.

  5. However, disputes continued between the parties with regard to the
    actual joining of duties and implementation of this Court's directions. In
    these circumstances, and in order to resolve the rival contentions, this Court,
    vide order dated 14.03.2006, appointed a LC to remain present at the
    Petitioner's premises to facilitate the joining of the workmen and to oversee
    compliance with the Court's directions regarding payment of wages and
    reporting for duty. These proceedings pertained to the implementation of
    interim directions during the pendency of the Writ petition and do not
    detract from the findings returned by the Labour Court on the issue of illegal
    termination.

  6. Pursuant thereto, this Court had appointed Ms. Pragnya Routray,
    Advocate, as LC, to supervise compliance of its directions regarding
    payment of wages and performance of duties. In her report, she recorded
    that the Petitioner/management had prepared the wages and was ready to
    make payment in her presence. However, the workmen disputed the
    quantum of wages, contending that they were entitled to wages at the higher Signature Not Verified Signed By:KAPIL W.P.(C) 3083/2003 Page 18 of 28 KUMAR Signing Date:24.03.2026 16:10:55 rate applicable to skilled workers instead of the rate offered by the
    management. The LC noted that the management's representative expressed
    willingness to place the demand before the proprietor, and she advised the
    workmen to accept the payment under protest, assuring them that their claim
    for higher wages and any consequential difference could be considered
    separately. Despite such assurance and repeated intervention by the LC, the
    workmen declined to accept the payment and left the premises without
    receiving their wages.

  7. The LC further reported that upon her subsequent visit to the
    petitioner's premises, none of the workmen were found reporting for duty
    and the management informed her that the workmen had stopped coming to
    work with effect from 01.04.2006. The attendance registers were inspected
    and copies thereof were retained by the LC. In view of the continued
    absence of the workmen and their failure to communicate any reason for
    non-reporting, the LC concluded her assignment and submitted her report to
    this Court, recording as under:

"Since the workers are not reporting for duty for more
than 10 days nor they have bothered to intimate me
regarding the same I feel more visits of the said
premises are not required and therefore, at this stage
the report as I was directed to prepare by this Hon'ble
Court is required to be submitted now."
57. Similarly, this Court had also appointed Mr. Varun Prasad, Advocate,
as LC vide order dated 14.03.2006, to supervise the joining of duties by the
workmen. In his report, he recorded that he was present at the Petitioner's
establishment on 16.03.2006, when six out of the nine workmen reported for
duty and were assigned work by the Petitioner/management in his presence, Signature Not Verified Signed By:KAPIL W.P.(C) 3083/2003 Page 19 of 28 KUMAR Signing Date:24.03.2026 16:10:55 and their attendance was duly marked. The remaining workmen were stated
to be in their native places and were permitted to join thereafter. The report
further records that two workmen joined duties on 20.03.2006 and the last
workman joined on 21.03.2006. The LC thus confirmed that, pursuant to the
directions of this Court, all the concerned workmen were allowed to resume
duties with the Petitioner and their joining stood effected.

  1. Subsequently, the Respondent/workmen moved an application under Section 151 of the Code of Civil Procedure, 1908, alleging non-compliance
    with the order dated 14.03.2006 vide which their reinstatement was directed.
    It was alleged that despite reporting for duty, the Petitioner/management was
    harassing them, refusing to assign meaningful duties, withholding wages,
    and preventing them from working within the establishment. It was further
    alleged that they were denied entry into the premises and were not being
    paid wages in accordance with the directions of this Court. In response
    thereto, the Petitioner/management filed a reply denying the aforesaid
    allegations and asserting that it had complied with the orders of this Court in
    letter and spirit. It was stated that the workmen had been permitted to join
    duties and that the management was ready and willing to pay wages in terms
    of this Court's directions. However, according to the
    Petitioner/management, the workmen themselves were unwilling to work
    and were raising disputes regarding the rate of wages and had thereafter
    stopped reporting for duty.

  2. The reports of the Court-appointed Local Commissioners, being
    independent and contemporaneous records, indicate that the workmen were
    permitted to join duties and that the management expressed readiness to
    disburse wages in terms of this Court's directions. The reports further reveal Signature Not Verified Signed By:KAPIL W.P.(C) 3083/2003 Page 20 of 28 KUMAR Signing Date:24.03.2026 16:10:55 that disagreements emerged between the parties concerning the wage
    amounts, following which the workmen ceased to attend work.

  3. In this context, the reports of the learned LC tasked with supervising
    compliance assume considerable importance. They indicate that, although
    arrangements had been made by the management to facilitate payment in
    accordance with the Court's directions, the workmen disputed the rate of
    wages and declined to accept the same. It is further recorded that the
    workmen remained absent from duty for a continuous period exceeding ten
    days without any intimation, prompting submission of the report. These
    reports, prepared pursuant to judicial directions, form part of the record and
    shed light on the manner in which compliance proceedings unfolded.

  4. The Respondents have, at the outset, objected to the maintainability of
    the Writ petition on the ground that it raises disputed questions of fact,
    impermissible in Writ jurisdiction, particularly in light of the findings
    recorded by the Labour Court. It is contended that the Petitioner seeks to re-
    agitate concluded issues, including the rejection of the application dated
    20.08.2002 for additional evidence, which has attained finality.

  5. On merits, the Respondents deny abandonment of service and assert
    illegal termination upon their demand for statutory benefits. They contend
    that they continued to report for duty but were denied entry by the
    management, and dispute the incident dated 06.11.1990, alleging
    manhandling.

  6. They further deny the existence of any valid settlement, terming the
    documents relied upon by the Petitioner, including the notice dated
    01.12.1990, as fabricated, and assert that the failure of conciliation is
    attributable to the Petitioner.

Signature Not Verified Signed By:KAPIL W.P.(C) 3083/2003 Page 21 of 28 KUMAR Signing Date:24.03.2026 16:10:55 64. Supporting the Impugned award, it is submitted that the Labour
Court, upon due appreciation of evidence, rightly disbelieved the
management's case and granted reinstatement with back wages. It is lastly
contended that their non-working, despite reporting pursuant to interim
orders, was due to the Petitioner's non-compliance and not voluntary.

  1.  It is well settled that termination of service affecting the livelihood of
                      a workman must comply with the principles of natural justice. In [D.K.
                      Yadav v. J.M.A. Industries Ltd.](https://indiankanoon.org/doc/427114/), (1993) 3 SCC 259, the Hon'ble Supreme
                      Court held that the right to livelihood is an integral part of the right to life
                      under [Article 21](https://indiankanoon.org/doc/1199182/) of the Constitution of India and that, before taking any
                      action putting an end to the tenure of an employee, fair play requires that a
                      reasonable opportunity be afforded and a domestic enquiry be conducted.
                      The Supreme [Court further held](https://indiankanoon.org/doc/427114/) that where no such opportunity is given and
                      no enquiry is held, the action would be arbitrary, unjust, and unfair. In the
                      present case, the Labour Court examined the question of cessation of
                      employment on the basis of the evidence on record and recorded its finding
                      that no charge-sheet was issued and no domestic enquiry was conducted
                      prior to cessation of employment. The said finding, being based on
                      appreciation of evidence, does not suffer from perversity, patent illegality, or
                      jurisdictional infirmity warranting interference by this Court in exercise of
                      its supervisory jurisdiction under [Articles 226](https://indiankanoon.org/doc/1712542/) and [227](https://indiankanoon.org/doc/1331149/) of the Constitution of
                      India.
    
  2.  The rival submissions of the parties, including the contention of the
                      Petitioner/management that the workmen had abandoned service and were
                      unwilling to resume duties, and the assertion of the workmen that there was
                      deliberate non-compliance with the reinstatement and wage directions, have Signature Not Verified Signed By:KAPIL            W.P.(C) 3083/2003                                                      Page 22 of 28 KUMAR Signing Date:24.03.2026 16:10:55 been considered in the light of the material on record, particularly the reports
                      of the learned LC appointed by this Court. These reports assume
                      significance in assessing the implementation of this Court's directions, the
                      factum of joining of duties, and the readiness and willingness of the
                      management to comply with the orders passed.
    
  3. While this court as of now is inclined to accept that the finding of the
    Labour Court on the issue of illegal termination does not call for
    interference within the limited scope of judicial review under Article 226 of
    the Constitution, whereas the subsequent developments during the pendency
    of the Writ petition, including the compliance proceedings and the reports of
    the learned LCs, are relevant for determining the nature and extent of
    consequential relief to be granted.

  4. It is evident that the Labour Court founded its conclusion on two
    principal considerations, namely, that the management had failed to
    establish abandonment of service, and that even otherwise; no domestic
    enquiry or disciplinary proceedings had been conducted before bringing
    about cessation of employment.

  5. The aforesaid finding returned by the Labour Court is a finding of fact
    based upon appreciation of oral and documentary evidence led by the
    parties. This Court, in exercise of its limited jurisdiction under Articles 226 and 227 of the Constitution, does not sit in appeal over such findings. The
    Petitioner has not demonstrated that the said finding suffers from perversity,
    is based on no evidence, or is vitiated by any jurisdictional error. The plea of
    abandonment was specifically raised by the Petitioner, considered, and
    rejected by the Labour Court on the basis of evidence on record, and no
    perversity or illegality has been shown in such finding. Even assuming that Signature Not Verified Signed By:KAPIL W.P.(C) 3083/2003 Page 23 of 28 KUMAR Signing Date:24.03.2026 16:10:55 the plea of abandonment was available to the Petitioner, the Labour Court
    having rejected the same on appreciation of evidence, this Court cannot re-
    appreciate the evidence to take a different view in exercise of Writ
    jurisdiction. In the absence of any such infirmity, the conclusion of the
    Labour Court holding the cessation of employment to be illegal does not
    warrant interference.

  6. This Court cannot lose sight of the fact that relief under Writ
    jurisdiction must balance equities and ensure fairness to both sides. While
    the Respondent/workmen cannot be denied relief altogether in view of the
    finding that termination was illegal, it would be equally unjust and
    inequitable to saddle the Petitioner/management with the burden of
    reinstatement and back wages after more than three decades, particularly
    when maximum workmen have already superannuated and the management
    had complied with the interim directions of this Court during the pendency
    of the proceedings.

  7. Applying the aforesaid principles to the present case, while the
    Labour Court rightly held that the cessation of employment was not
    preceded by a domestic enquiry, the subsequent events during the pendency
    of the Writ petition are relevant for moulding the relief. The reports of the
    learned LCs, appointed pursuant to the directions of this Court, record that
    the workmen were permitted to join duties and the management had
    expressed readiness to disburse wages in compliance with Section 17-B of
    the Act; however, disputes arose regarding the wage rates, the payments
    offered were not accepted, and the workmen thereafter did not continue to
    report for duties. These contemporaneous reports, forming part of the record,
    reflect the course of compliance proceedings and are relevant for assessing Signature Not Verified Signed By:KAPIL W.P.(C) 3083/2003 Page 24 of 28 KUMAR Signing Date:24.03.2026 16:10:55 the conduct of the parties while determining the nature and extent of
    consequential relief.

CONCLUSION:

Quoting R.G. Collingwood:

"The only clue to what a man can do is what man has done."
72. Upon considering the various issues arising in the present matter,
particularly the fact that more than 36 years have elapsed since the alleged
termination/abandonment of service, it becomes evident that the workmen
have not diligently pursued the proceedings for a considerable period. It is
further noted that, despite repeated efforts by this Court to afford them an
opportunity to rejoin duties, as reflected in the report of the Labour
Commissioner, the workmen failed to avail such opportunity.

  1. These circumstances give rise to a strong inference that the workmen
    are not inclined to resume employment with the Petitioner. It may also be
    reasonably inferred that they might have been gainfully employed
    elsewhere, which could explain their non-appearance for rejoining duties.
    Accordingly, the relief of reinstatement would not be an appropriate relief to
    be granted at this stage that too when the workmen are not even pursuing the
    case for the very relief.

  2. Equally well settled is the principle that grant of back wages is not
    automatic and depends upon the facts and circumstances of each case. In the U.P. State Brassware Corporation Ltd. v. Uday Narain Pandey, (2006) 1
    SCC 479, the Hon'ble Supreme Court held as under:

"22. No precise formula can be laid down as to under
what circumstances payment of entire back wages
should be allowed. Indisputably, it depends upon the Signature Not Verified Signed By:KAPIL W.P.(C) 3083/2003 Page 25 of 28 KUMAR Signing Date:24.03.2026 16:10:55 facts and circumstances of each case... It should not be
granted mechanically only because on technical
grounds or otherwise an order of termination is found
to be in contravention of the provisions of Section 6-N of the U.P. Industrial Disputes Act."
42. A person is not entitled to get something only
because it would be lawful to do so. If that principle is
applied, the function of an industrial court shall lose
much of their significance."

  1. The Court, therefore, emphasised that while
    granting relief, application of mind on the part of the
    Industrial Court is imperative. Payment of full back
    wages, therefore, cannot be the natural consequence."
    The aforesaid exposition makes it clear that even
    where termination is held to be illegal, grant of back
    wages is not automatic and the relief is required to be
    moulded in the light of the facts of the case."

  2. Therefore, the relief of back wages is also liable to be rejected. As,
    despite a clear and binding order passed by this Court directing them to join
    duties, the workmen did not come forward to resume their services. Even
    assuming, for the sake of argument, that the Petitioner had prevented them
    from rejoining, the workmen had efficacious remedies available in law,
    including approaching the Labour Commissioner for enforcement of the
    order or seeking appropriate directions for non-compliance thereof.
    However, no such steps were taken by any of the workmen. This conduct
    again gives rise to an inference that the workmen might have been gainfully
    employed elsewhere; as it is difficult to believe that they were able to sustain
    themselves and their families without any source of livelihood for such a
    long period. Having failed to pursue such remedies, the claim for back
    wages cannot be sustained.

Signature Not Verified Signed By:KAPIL W.P.(C) 3083/2003 Page 26 of 28 KUMAR Signing Date:24.03.2026 16:10:55 76. The record further shows that during the pendency of the Writ
petition, the Respondent/workmen filed an application under Section 17-B of the Act seeking payment of last drawn wages during the pendency of this
petition. Vide order dated 09.09.2004, this Court directed the petitioner that
a sum of ₹2000/- would be paid to each workman. As also, vide order dated
26.10.2004, while hearing the application under Section 17-B, this Court
directed that the workmen shall be paid last drawn wages from the date of
filing of the Writ petition till they rejoined duties, without prejudice to the
rights and contentions of either party, and further directed that the payment
be made in cash against receipt.

  1. As regards the grant of compensation, which is ordinarily awarded in
    lieu of reinstatement in similar cases and has also been granted by this Court
    in appropriate matters, the same is not considered justified in the present
    case. Notably, in the year 2004, this Court had permitted the workmen to
    rejoin the services of the Petitioner, yet they did not avail themselves of that
    opportunity. Their refusal to rejoin the services clearly indicates a lack of
    interest in continuing employment with the Petitioner. In these
    circumstances, this Court is not inclined to grant compensation as well.
    Therefore, whatever amount, if any, has been disbursed in compliance with
    the order of Section 17B, the same shall be treated as lump sum
    compensation or back wages.

  2. In these circumstances, this Court is of the considered view that while
    the finding of the Labour Court in the Impugned award holding the
    termination of the Respondent/workmen to be illegal deserves to be upheld,
    the direction for reinstatement with back wages cannot be sustained and is
    accordingly set aside.

Signature Not Verified Signed By:KAPIL W.P.(C) 3083/2003 Page 27 of 28 KUMAR Signing Date:24.03.2026 16:10:55 79. In abovementioned terms, the Writ is disposed of. Pending
applications, if any, stand disposed of. No order as to costs.

SHAIL JAIN
JUDGE
MARCH 24, 2026/HP Signature Not Verified Signed By:KAPIL W.P.(C) 3083/2003 Page 28 of 28 KUMAR Signing Date:24.03.2026 16:10:55

Source

Analysis generated by AI. Source diff and links are from the original.

Classification

Agency
GP
Filed
March 24th, 2026
Instrument
Enforcement
Legal weight
Binding
Stage
Final
Change scope
Substantive
Document ID
W.P.(C) 3083/2003

Who this affects

Applies to
Employers
Industry sector
3114 Food & Beverage Manufacturing
Activity scope
Employment Termination Industrial Disputes
Geographic scope
IN IN

Taxonomy

Primary area
Employment & Labor
Operational domain
Legal
Topics
Labor Law Employment Termination Industrial Disputes

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