RAMESHBHAI BHAIJUBHAI CHAUDHARYversusSTATE OF GUAJRAT
- Disposal
- 44-PARTLY ALLOWED @ FH
- Bench
- HEMANT M PRACHCHHAK
Holding
The High Court held that, in view of established precedent, the proper relief is an enhanced lump‑sum compensation of Rs 3,00,000 and the Labour Court’s award of Rs 60,000 is quashed.
Summary
The petitioner, a watchman employed by the State of Gujarat from October 2007 to July 2011, was terminated without any appointment letter, service book or statutory benefits and without following due procedure. He filed an industrial dispute before the Labour Court, which awarded him a lump‑sum compensation of Rs 60,000 but denied reinstatement. The petitioner appealed to the Gujarat High Court under Articles 226 and 227 of the Constitution, contending that the Labour Court erred in not granting reinstatement under Sections 25F, 25G and 25H of the Industrial Disputes Act. The High Court, relying on the Supreme Court’s decision in Maharashtra State Cooperative Marketing Federation Ltd. v. Suresh (2015) 4 SCC 542 and its own earlier Letters Patent Appeals, held that the appropriate remedy is an enhanced lump‑sum award reflecting the petitioner’s six years of service. Consequently, the Court quashed the Labour Court’s award and modified the compensation to Rs 3,00,000, without ordering reinstatement, and directed payment within eight weeks.
Issues considered
- Whether the Labour Court erred in refusing reinstatement and back wages under Sections 25F, 25G and 25H of the Industrial Disputes Act.
- Whether the lump‑sum compensation awarded by the Labour Court should be enhanced in line with precedent.
- Whether the High Court may modify or set aside the Labour Court award under Article 226 of the Constitution.
Legislation cited
- Constitution of Indias. 226, s. 227
- Industrial Disputes Act, 1947s. 25F, s. 25G, s. 25H
Subjects
Judgment
C/SCA/13332/2025 JUDGMENT DATED: 17/02/2026
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 13332 of 2025
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR. JUSTICE HEMANT M. PRACHCHHAK Sd/-
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Approved for Reporting Yes No
No
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RAMESHBHAI BHAIJUBHAI CHAUDHARY
Versus
STATE OF GUAJRAT & ANR.
==========================================================
Appearance:
MR JIGNESH D LAMBA(12891) for the Petitioner(s) No. 1
MR YOGEN N PANDYA(5766) for the Petitioner(s) No. 1
MS ROSHNI PATEL AGP for the Respondent(s) No. 1,2
==========================================================
CORAM:HONOURABLE MR. JUSTICE HEMANT M. PRACHCHHAK
Date : 17/02/2026
ORAL JUDGMENT
1. Rule returnable forthwith. Learned AGP waives service of
notice of rule on behalf of the respondent.
2. Present petition is led by the petitioner under Articles 226
and 227 of the Constitution of India r/w the provisions of
Industrial Disputes Act challenging the impugned award
dated 11.02.2025 in Reference (LCV) No. 26 of 2012 passed
by the Labour Court, Valsad, whereby the Labour Court has
partly allowed the reference and awarded Rs.60,000/- as
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C/SCA/13332/2025 JUDGMENT DATED: 17/02/2026
lumpsum compensation without continuity of service and
reinstatement.
3. Facts of the case are that the petitioner was working, as a
Watchman with the respondent, from October 2007 to
1.7.2011. During his service tenure, the employer was never
issued appointment letter. No identity card, service book,
seniority record or statutory bene ts were extended to
petitioner. On 1.7.2011 the petitioner was arbitrarily
discharged from service by the respondent without following
due procedure. Being aggrieved with the said termination, the
petitioner raised an industrial dispute before the Labour
Court, and the Labour Court, vide order dated 11.02.2025
partly allowed the said reference and awarded the
aforementioned relief.
3.1 Being aggrieved by the award passed by the Labour Court,
the petitioner has preferred present petition.
4. Heard learned counsel appearing for the respective parties.
5. Mr. Pandya, learned counsel for the petitioner has
submitted the same facts which are narrated in the memo of
petition and has submitted that the petitioner has rendered
his service with respondent for six years and therefore, labour
Court has committed error in passing the impugned order. He
has submitted that before the labour Court, the petitioner has
proved the violation of Section 25 F, G and H and therefore,
the labour Court ought to have granted reinstatement. He has
submitted that present petition may be allowed.
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C/SCA/13332/2025 JUDGMENT DATED: 17/02/2026
6. On the other hand, Ms. Patel, learned AGP for the
respondent has objected the petition and submitted that the
Labour Court has not committed any error in passing the
impugned judgment. She has also submitted that the
respondent had worked from 2009 to 2011 only. She has
submitted that infact the impugned award passed by the
Labour Court is in consonance with the provisions of law and
hence prayed for rejection of the petition.
7. Considering the submissions canvassed by learned counsel
appearing for the respective parties and the impugned
judgment and award passed by the Labour Court, it appears
that the Labour Court has rightly appreciated the evidence
while coming to the conclusion and without there being any
rebuttal, on the other hand, the Labour Court has awarded
lumpsum compensation to the tune of Rs.60,000/-. In view of
the decision of the Hon’ble Supreme Court in the case of
Maharashtra State Cooperative Marketing Federation
Limited Versus Suresh S/o Dadarao Gadge reported in
(2015) 4 SCC 542 and the oral order dated 18.04.2024
passed by the Division Bench of this Court in Letters Patent
Appeal No. 908 of 2023 and allied appeals more
particularly para – 10 and the order dated 18.04.2024 passed
by the Division Bench of this Court in Letters Patent Appeal
No.1091 of 2023 and allied appeals more particularly
paras – 5 and 6, this Court is of the opinion that interest of
justice would be subserved, if lump sum compensation
awarded in favour of the workman is enhanced.
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C/SCA/13332/2025 JUDGMENT DATED: 17/02/2026
8. The relevant para – 10 of the oral order dated 18.04.2024
passed by the Division Bench of this Court in Letters Patent
Appeal No. 908 of 2023 and allied appeals reads thus:-
“10. Having come to the conclusion that the lump sum
compensation would be appropriate remedy for the
families of the deceased workmen, the other aspects
which comes for consideration is quantum of lump sum
compensation. Though learned advocate Mr. Bhatt has
contended that there was delay in preferring the
complaint and the subsequent reference, it can be
observed from the pleadings that the averments with
regard to delay and laches in preferring the reference
were not made before the labour court as well as the
learned Single Judge. Therefore, the argument of learned
advocate Mr. Bhatt with regard to delay and laches in
preferring reference cannot be countenanced and what
needs to be seen is that almost all the workmen have put
in 16-20 years of service for the respondent and their
services were terminated without following due procedure
of law. Therefore, the families of the deceased workmen
needs to be compensated proportionally as to the number
of years of service put in by them. However, in order to
balance the equation, we have considered to give e&ect of
delay in preferring the reference while enhancing the
amount of compensation. Thus, while calculating the
number of years of services, we proposed to deduct the
number of years service for which there is delay in
preferring reference. After deduction of such number of
service, we propose to give compensation in the following
tabular form:
Total no. of years for lump sum Amount of lump
Sr.No.
compensation sum compensation
1 5 to 10 years Rs.3.00 lacs
2 10-15 years Rs.5.00 lacs
3 15-20 years Rs.7.5 lacs
9. The relevant paras 5 and 6 of the oral order dated
18.04.2024 passed by the Division Bench of this Court in
Letters Patent Appeal No. 1091 of 2023 and allied appeals
reads thus:-
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C/SCA/13332/2025 JUDGMENT DATED: 17/02/2026
“5. Therefore, looking to the gap which intervened
between the date of termination and the date of granting
reinstatement, the approach of the learned Single Judge
granting lump sum compensation cannot be faulted with.
6. Looking to the various aspects and factors which are
considered above, like the nature of employment, time gap
intervened, length of service, the compensation awarded
to the tune could not be said to be unreasonable.
Therefore, Letters Patent Appeals preferred by the
Municipality on the question of amount of compensation
as well as appeals preferred by the workmen seeking
reinstatement are liable to be dismissed. However, in one
of the matters being Letters Patent Appeal No. 701 of
2023 in Special Civil Application No. 18334 of 2021 in the
case of workman being Koli Vairaginiben Ramkumar, we
observe that the compensation given by the learned Single
Judge is to the tune of Rs.6,25,000/- for 11 years of
service. It can be observed from the order passed by the
learned Single Judge that such amount is proportionally
di&erent from the other set of amounts which are given as
compensation. However, for the identical years of work
i.e. 11 years of service, the other workmen are granted an
amount of Rs.3,25,000/- as lump sum compensation. Thus,
we are inclined to modify the amount of lump sum
compensation in Letters Patent Appeal No. 701 of 2023 to
the tune of Rs.3,25,000/- from Rs.6,25,000/-. Hence,
Letters Patent Appeal No. 701 of 2023 is partly allowed to
the aforesaid extent, whereas, all the other Letters Patent
Appeals stand dismissed as no ground is made out to
interfere with the order of the learned Single Judge.”
10. Now, considering the materials placed on record and the
peculiar facts of this case, this Court is of the opinion that
instead of granting any back wages and reinstatement in
service as prayed for, it would be just and proper to pay lump
sum compensation of Rs.3,00,000/- to the workman, which will
serve the ends of justice.
11. In view of the above, present petition is partly allowed.
The impugned award passed by the Labour Court is hereby
quashed and set aside and the award is modi ed accordingly.
An amount of Rs.3,00,000/- as lump sum compensation shall
be paid to the workman by the employer after proper
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C/SCA/13332/2025 JUDGMENT DATED: 17/02/2026
veri cation of the identity and bank details through RTGS
within a period of eight weeks from the date of receipt of the
writ of this order. If the amount of Rs.60,000/- is paid by the
employer then the same shall be deducted from the aforesaid
amount of Rs.3,00,000/- and if the said amount is not paid
then the lump sum amount which is awarded by this Court
shall be paid to the workman. Rule is made absolute to the
aforesaid extent. There shall be no order as to costs.
Sd/-
(HEMANT M. PRACHCHHAK,J)
SURESH SOLANKI
Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: SURESHKUMAR MOTIBHAI SOLANKI(HC00208), PRINCIPAL PRIVATE SECRETARY, at High Court of Gujarat on 21/02/2026 13:05:12
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