MUNICIPAL COMMISSIONER/DIRECTOR, AHMEDABAD JANMARG LTD.,versusKARNAVATI NAGARPARIVAHAN MAZDOOR SANGH
- Disposal
- 47-DISPOSAL IN ANY OTHER MODE FH
- Bench
- DEVAN M DESAI
Holding
The High Court declined to interfere with the Industrial Tribunal's restoration order and dismissed the petition, directing the Tribunal to complete the reference within six months.
Summary
The Municipal Commissioner of Ahmedabad Janmarg Ltd filed a petition under Articles 226 and 227 of the Constitution seeking to quash the Industrial Tribunal's order dated 21‑08‑2017 that restored a dismissed reference concerning the regularisation of workers of the Karnavati Nagarparivahan Mazdoor Sangh. The Union had earlier raised demands for permanent status and benefits, and the reference was dismissed for non‑prosecution on 01‑12‑2016. The Union filed a restoration application under Rule 26(A) of the Industrial Disputes Act, which the Tribunal allowed despite the Union’s failure to appear and without sufficient cause. The petitioner argued that there was no lis between it and the workers and that the Tribunal erred in granting restoration. The Court examined whether the Tribunal had exercised its discretion properly and held that the restoration order was not liable to be set aside, directing the Tribunal to complete the reference within six months. Consequently, the petition was disposed of without any order as to costs.
Issues considered
- Whether the Industrial Tribunal was justified in granting restoration of the dismissed reference on the basis of the Union’s alleged sufficient cause.
- Whether the petitioner has locus standi to challenge the restoration order.
- Whether the Tribunal erred in not considering the lack of a lis between the petitioner and the workers.
Legislation cited
- Industrial Disputes Act, 1947s. 10(1), s. 26(A)
- Limitation Act, 1963
Subjects
Judgment
C/SCA/18730/2017(GJHC240535512017) JUDGMENT DATED: 24/08/2026
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 18730 of 2017
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR. JUSTICE DEVAN M. DESAI
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Approved for Reporting Yes No
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MUNICIPAL COMMISSIONER/DIRECTOR, AHMEDABAD JANMARG LTD.,
Versus
KARNAVATI NAGARPARIVAHAN MAZDOOR SANGH & ORS.
==========================================================
Appearance:
MS DHARA M SHAH(5546) for the Petitioner(s) No. 1
DS AFF.NOT FILED (R) for the Respondent(s) No. 2,3,5,6,8,9
MR HAMESH C NAIDU(5335) for the Respondent(s) No. 4
MR PRATIK P THAKKAR(6097) for the Respondent(s) No. 7
MR YOGEN N PANDYA(5766) for the Respondent(s) No. 1
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CORAM:HONOURABLE MR. JUSTICE DEVAN M. DESAI
Date : 24/08/2026
JUDGMENT
1. The present petition is filed under Articles 226 and 227 of the
Constitution of India, 1950 by the petitioner praying for following
reliefs:
"A. YOUR LORDSHIP may be pleased to
admit and allow the present petition;
B. Your Lordships may be pleased to issue a
writ of certiorari and a writ in the nature of
certiorari to quash and set aside order dated
21.08.2017 passed in Misc. Application No.1
of 2017 by the Industrial Tribunal,
Ahmedabad;
C. Pending admission, hearing and final
disposal of this petition, Your Lordhips may
be pleased to stay the operation,
implementation and execution of order dated
21.08.2017 passed in Misc. Application No.1
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of 2017 by the Industrial Tribunal,
Ahmedabad;
D. Any other and further relief that may be
deemed fit and proper may please be
granted in the interest of justice."
2. Heard learned advocate Ms. Dhara M. Shah for the
petitioner, learned advocate Mr. Hamesh C. Naidu for respondent
No.4, learned advocate Mr. Yogen M. Pandya for respondent No.1
and learned advocate Mr. Pratik P. Thakkar for the respondent
No.7.
3. Brief facts of the present case are as under:-
3.1. Respondent No.1 Union raised demands before
learned Labour Commissioner, Gandhinagar. Upon failure
report, the dispute was referred to the learned Industrial
Tribunal, Ahmedabad for determining the demands of
respondent No.1 – Union which are mainly summarised as
under:-
(i) that the workmen should be made permanent in Jan
Marg Limited (BRTS) project and be considered as
employees of Ahmedabad Janmarg Limited after 180
days of the services and be granted benefits of
permanent employees after 180 days.
(ii) after 1st January 2012, workmen working under
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legal/illegal contractors be given benefits according to
their cadre on the basis of 6th pay commission.
(iii) workmen working as Drivers, security, booking
staff, Safai Kamdar, who are working as permanent
nature be given Rs. 10,000/- from 1st January 2012.
(iv) prepare Caderwise seniority list of workmen along
with names of contractors currently working in the
organization.
3.2. The reference came to be dismissed for non-
prosecution on 01.12.2016. Respondent No.1-Union filed
restoration application under Rule 26(A) of the Industrial
Disputes Act ('for short’ the Act’). The Restoration Application
came to be allowed by learned Tribunal on 21.08.2017.
Being aggrieved and dissatisfied with the order, the petitioner
is before this Court by way of present petition.
4. At the outset, learned advocate for the petitioner submitted
that respondent No.1 - Union entered into contract with respondent
No.2 which owns number of bus fleet and private buses for
operation within the city. Respondent No.1 Union has submitted
demand for regularisation under Section 10(1) of the Act which
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was referred to the Industrial Tribunal. Respondent Union applied
for interim relief during the pendency of the reference. The learned
Judge granted interim relief, as prayed for. Being aggrieved and
dissatisfied with the said order, petitioner preferred Special Civil
Application No. 7329 of 2014 before this Court. By order dated
31.07.2014, the Co-ordinate Bench of this Court held that the
identity of the persons whose services are ordered not be
changed. Respondent No.8, contractor had declared that the
workmen were appointed either by respondent No.8 or agency
appointed by it.
5. Thereafter, a purshis dated 31.08.2015 was submitted for
closure of evidence of Union, and stage was closed. Learned
Tribunal issued notice dated 29.12.2015 to Union. Thereafter one
Praful Patel appeared on behalf of the Union on 11.01.2016 and
on 22.08.2016 requested the Court to permit him to retire from the
proceedings. The learned Industrial Court passed an order on
20.12.2016 rejecting their reference. In restoration application, no
sufficient and cogent reasons were assigned by Union for not
remaining present in the reference proceedings. The reasons
assigned by Union is that Mr. Dipak Pandya was looking after
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proceedings and after his death there was no other person who
was conversant with facts to look after the reference proceedings,
which is factually incorrect statement because Mr. Dipak Pandya
had expired on 04.01.2014 and thereafter Mr. Praful Patel
appeared and represented Union from time to time. As no
sufficient cause is made out for restoration of the reference, the
learned Tribunal ought to have rejected the application.
6. It is submitted that against the order of interim injunction
passed by learned Industrial Tribunal, the petitioner approached
this Court by way of Special Civil Application No. 7329 of 2014.
Upon the response of respondent No.8, it is observed by the Co-
ordinate Bench of this Court in the Special Civil Application that
workmen were appointed by respondent No.8 or by its agency and
workmen were not appointed by the petitioner. It is therefore
submitted that there is no lis between petitioner and employees of
respondent company/contractors. The learned Tribunal while
granting restoration application has not considered the aforesaid
facts and erroneously granted the Application. It is therefore
submitted that the present petition be allowed and the impugned
order be quashed and set aside. Except above, no other
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submissions were canvassed by learned advocate for the
petitioner.
7. Per contra, learned advocate for respondent No.1 Union
contended that the Union had raised demand for regularization by
way of reference. Pending the reference, the President of the
Union who was looking after the proceedings had expired.
Thereafter, learned advocate Mr. Dipak Pandya was instructed to
appear in the reference proceedings but he did not remain present
and thereafter the Union appointed another learned advocate Mr.
Praful Patel to represent Union. The respondent No.1 was not
aware about the status of the reference and therefore, could not
remain present. It is submitted that learned advocate Mr. Praful
Patel retired from proceedings but learned Tribunal did not issue
any notice to Union and therefore, there was no opportunity of
being heard given to Union to prove its case. The learned Tribunal
has adopted a reasonable and justice oriented approach and
allowed the application for restoration.
8. It is submitted that the original reference proceedings is
required to be decided on merits and not on technical grounds.
The Union may not be deprived of their rights to claim
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regularization and the claim for the employees of the contractor to
be paid as if they are working with Ahmedabad Janmarg Ltd. If an
opportunity is given to prove the case, it would serve the purpose
of justice and therefore the petition be dismissed. It is further
submitted that the respondent No.1 is ready and willing to co-
operate with the learned Tribunal for expeditious hearing of the
reference as the reference is of 2013. Except above, no other
submissions were canvassed by learned advocate for respondent
No.1.
9. I have considered the submissions canvassed by learned
advocates for respective parties and perused papers placed on
record. The respondent – Union raised demands for regularization
by way of complaint before the learned Labour Commissioner,
Gandhinagar. Due to non-settlement of dispute, it was referred to
the learned Industrial Tribunal, Ahmedabad. The reference came
to be dismissed for non-prosecution on 01.12.2016. The Union
thereafter filed restoration application, which came to be allowed
on 21.08.2017. The learned Tribunal was weighed with fact that
the reference proceedings proceeded ex parte. Union submitted
statement of claim against which petitioner as well as other
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respondents submitted their respective replies. On 25.02.2014
below Exhibit – 11, learned Tribunal passed an order which was
assigned by petitioner by way of Special Civil Application No. 7329
of 2014. Prayer was made by respondent No.7 for closure of
evidence which was allowed. Thereafter, the Union appeared
through one learned advocate Mr. Praful Patel, who also retired
subsequently from the proceedings. Petitioner and other
respondents contractors also closed their side and did not lead any
evidence. Upon the application for restoration, respondent Union
pointed out reasons for not remaining present in reference
proceedings. The emphasis has been laid on the fact that Shri
Dipak Pandya was having knowledge of the proceedings expired
in an accident in the year 2014, and thereafter the learned
advocate Mr. Praful Patel retired as an advocate on behalf of
respondent Union.
10. The undisputed fact surfaces on record that the reference
proceedings are not decided on merits and have been dismissed
for want of prosecution. Granting of an application for restoration
upon satisfaction of sufficient cause is discretion of the Court. The
sufficient cause is not explained in the rules as well as in the
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Limitation Act, 1963. Sufficient cause means cause which is a
reasonable explanation which satisfies the Court for granting an
opportunity to a litigant who has failed to lead any evidence.
11. Therefore, in my view, I do not find any reason to interfere in
the findings and conclusions arrived at by the learned Labour
Court. Resultantly, the present petition stands disposed of. No
order as to costs. The learned Labour Court is hereby directed to
complete the Reference proceedings within a period of six months
from the date of receipt of copy of this order. It is hereby directed
that the application shall be decided strictly on merits. Both the
parties are directed to give full co-operation without asking for
unnecessary adjournments. Rule is discharged accordingly.
(D. M. DESAI,J)
SHIVANI SHUKLA / MUSKAN
Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: MUSKAN AJAY MENON(HC02359), ENGLISH STENO GRADE-II\, at High Court of Gujarat on 24/08/2026 17:30:48
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