STATE OF GUAJRATversusKANTIBHAI ARJANBHAI BHAMAT
- Disposal
- PARTLY ALLOWED @ ADMISSION STAGE
- Bench
- HEMANT M PRACHCHHAK
Holding
The High Court held that, due to the illegal appointment and absence of continuous service, the Labour Court's award should be modified to grant lump‑sum compensation of Rs 3,00,000 instead of reinstatement.
Summary
The workman Kantibhai, employed as a chowkidar from 2007 to 2015, was terminated without due procedure, leading to a reference before the Labour Court which granted reinstatement without backwages. The State of Gujarat filed a petition under Articles 226 and 227 of the Constitution challenging the Labour Court's award, arguing that the workman was not in continuous service as required by Section 25(b) of the Industrial Disputes Act, 1947, and was a daily‑wage employee without a sanctioned post. The respondent contended that the Labour Court correctly found continuous service and that reinstatement was proper. The High Court, relying on the Supreme Court decision in Maharashtra State Cooperative Marketing Federation Ltd. v. Suresh (2015) 4 SCC 542 and its own earlier orders, held that lump‑sum compensation was a more appropriate remedy given the illegal appointment and lack of continuous service. Consequently, the Court partially allowed the petition, modifying the award to a lump‑sum payment of Rs 3,00,000 to the workman, and dismissed the related second application.
Issues considered
- Whether the workman satisfied the definition of continuous service under Section 25(b) of the Industrial Disputes Act, 1947.
- Whether the Labour Court erred in granting reinstatement without backwages.
- Whether lump‑sum compensation is an appropriate alternative remedy in lieu of reinstatement.
- Whether the High Court may modify the Labour Court's award under its constitutional jurisdiction.
Legislation cited
- Industrial Disputes Act, 1947s. 25(b)
Subjects
Judgment
C/SCA/3295/2025 ORDER DATED: 27/01/2026
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 3295 of 2025
With
R/SPECIAL CIVIL APPLICATION NO. 11927 of 2025
==========================================================
STATE OF GUAJRAT
Versus
KANTIBHAI ARJANBHAI BHAMAT
==========================================================
Appearance:
MS AGNEYA MANKAD AGP for the Petitioner(s) No. 1
MR DIPAK R DAVE(1232) for the Respondent(s) No. 1
MR VAIBHAVKUMAR I BHOI(12030) for the Respondent(s) No. 1
==========================================================
CORAM:HONOURABLE MR. JUSTICE HEMANT M. PRACHCHHAK
Date : 27/01/2026
ORAL ORDER
ORDER IN SPECIAL CIVIL APPLICATION NO. 3295 of 2025
1. Present petition is led by the petitioner under Articles 226
and 227 of the Constitution of India r/w the provisions of the
Industrial Disputes Act, 1947 challenging the impugned
judgment and award dated 15.7.2024 passed by Labour Court,
Godhara in Reference (T) No. 55 of 2018 whereby the Labour
Court has partly allowed the reference and granted
reinstatement in favour of the workman without any
backwages.
2. The facts giving rise to present petition are that the
respondent was working with the petitioner from 2007-2008
as Chowkidar and his service came to be terminated by the
petitioner in August 2015 without following any due
procedure. Therefore, a reference came to be led before the
Labour Court, Godhara being Reference (T) No. 55 of 2018.
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C/SCA/3295/2025 ORDER DATED: 27/01/2026
2.1 The Labour Court, after hearing the parties and after
evaluating the evidence placed on record, has passed
impugned judgment and award. Being aggrieved and
dissatis ed with the impugned judgment and award passed by
the Labour Court, the petitioner has led present petition.
3. Heard Ms. Agneya Mankad, learned AGP for the
petitioner and Mr. Dipak R. Dave, learned counsel for the
respondent workman.
4. Ms. Mankad, learned AGP for the petitioner, has submitted
that the impugned judgment and award passed by the Labour
Court is erroneous, bad in law and contrary to the facts and
record of the case. She has submitted that the Labour Court
has committed a serious error in holding that the respondent–
workman was in continuous service with the petitioner as
de ned under Section 25(B) of the Industrial Disputes Act,
1947. She has further submitted that the Labour Court failed
to appreciate the fact that the respondent–workman had not
worked for a continuous period of 240 days in any year. She
has submitted that the respondent was appointed as a daily
wager and was not appointed against any sanctioned post
and, therefore, was not entitled to claim any bene t of the
Government Resolution dated 15.09.2014. She has further
submitted that, in his cross-examination, the respondent
categorically deposed that he was not appointed through any
prescribed recruitment procedure and that he was not issued
any appointment letter. She has submitted that the Labour
Court has committed a grave error in not appreciating the fact
that the respondent had failed to produce any documentary
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C/SCA/3295/2025 ORDER DATED: 27/01/2026
evidence to establish that he had completed 240 days of
service in any year.
4.1 In view of the above submissions, learned AGP urges
before the Court that present petition may be allowed and the
impugned judgment and award passed by the labour Court
may be quashed and set aside.
5. On the other hand, Mr. Dipak R. Dave, learned counsel for
the respondent–workman, has submitted that the Labour
Court has not committed any error in passing the impugned
judgment and award. He has submitted that the Labour Court
has passed the impugned judgment and award after properly
appreciating the oral as well as documentary evidence placed
on record by both the sides and after considering the facts
and circumstances of the case. He has also submitted that the
Labour Court has rightly held that the respondent–workman
was in continuous service as de ned under Section 25(B) of
the Industrial Disputes Act, 1947 and that the said nding is
supported by material on record. He urges before the Court
that this Court may not interfere with the impugned judgment
and award passed by the Labour Court.
6. 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
the aforementioned relief. In view of the decision of the
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C/SCA/3295/2025 ORDER DATED: 27/01/2026
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 sump compensation is awarded in favour of the
workman in lieu of reinstatement and other consequential
reliefs.
7. 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
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C/SCA/3295/2025 ORDER DATED: 27/01/2026
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
8. 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:-
“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
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C/SCA/3295/2025 ORDER DATED: 27/01/2026
Appeals stand dismissed as no ground is made out to
interfere with the order of the learned Single Judge.”
9. Now, considering the materials placed on record and the
peculiar facts of this case, this Court is of the opinion that
considering the tenure of 6 years, illegal appointment, no
sanctioned set up etc., it will be in tness of things that the
award passed by the Labour court is suitably modi ed in light
of the aforestated position of Law by granting lumpsum
compensation of Rs.3,00,000/- towards full and nal
settlement of all the dues of the employee.
10. In view of the above, present petition is partly allowed.
The impugned judgment and award dated 15.7.2024 passed
by Labour Court, Godhara in Reference (T) No. 55 of 2018 is
hereby 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 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. There shall be no
order as to costs.
ORDER IN SPECIAL CIVIL APPLICATION NO. 11927 of 2025
In view of the order passed by this Court in Special Civil
Application No.3295 of 2025, present petition does not survive
and the same stands dismissed.
(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 27/01/2026 17:29:04
Page 6 of 6
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