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High Court of Gujarat

BHATHIBHAI RATNABHAI PAGIversusDEPUTY EXECUTIVE ENGINEER

Disposal
38-RULE ABSOLUTE/ALLOWED @ FH

Holding

The award is confirmed insofar as it orders reinstatement with continuity of service but without back wages, and the State’s petition is dismissed.

Summary

The employee, Bhathibhai Ratnabhai Pagi, challenged a Labour Court award dated 13 May 2022 that granted reinstatement without back wages. The employer and the State filed separate petitions under Articles 14, 21, 226 and 227 of the Constitution and the Industrial Disputes Act, 1947. The High Court examined earlier coordinate bench decisions that had ordered reinstatement with continuity of service for similarly situated workmen and had rejected back‑wage claims. Relying on those precedents and on the Supreme Court’s rulings on adverse inference when an employer fails to produce muster‑rolls, the Court held that the award should be confirmed only to the extent of reinstatement with continuity of service, without back wages. Consequently, the State’s petition to quash the award was dismissed and the employee’s petition was allowed.

Issues considered

  • Whether the Labour Court award granting reinstatement without back wages should be set aside.
  • Whether the employee is entitled to reinstatement with continuity of service under the Industrial Disputes Act.
  • Whether back wages can be awarded in the present circumstances.
  • Whether the State’s petition challenging the award should be dismissed.

Legislation cited

Subjects

reinstatementcontinuity of serviceIndustrial Disputes Actback wageslabour court awardconstitutional remediesArticles 14,21,226,227

Judgment

     C/SCA/3550/2023                               JUDGMENT DATED: 20/02/2026




             IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

               R/SPECIAL CIVIL APPLICATION NO. 3550 of 2023

                                  With
              R/SPECIAL CIVIL APPLICATION NO. 23330 of 2022

FOR APPROVAL AND SIGNATURE:


HONOURABLE MR. JUSTICE HEMANT M. PRACHCHHAK
================================================================

            Approved for Reporting                Yes          No

================================================================
                        BHATHIBHAI RATNABHAI PAGI
                                  Versus
                       DEPUTY EXECUTIVE ENGINEER
================================================================
Appearance:
MR DIPAK R DAVE(1232) for the Petitioner(s) No. 1
MS SWEETY SAMARA, ASST. GOVERNMENT PLEADER for the
Respondent(s) No. 1
================================================================

 CORAM:HONOURABLE MR. JUSTICE HEMANT M.
       PRACHCHHAK

                              Date : 20/02/2026

                             ORAL JUDGMENT



1.      Rule returnable forthwith. Present petitions are filed by the
employer as well as the employee under Articles 14, 21, 226 and
227 of the Constitution of India read with the provisions of the
Industrial Disputes Act, 1947 against the impugned Award dated
13.05.2022 passed by the Labour Court, Godhra in Reference
(T)No. 95 of 2014 with below mentioned relief/ in SCA/3550/2023:-

        “(A) A writ of certiorari and/or a writ in the nature of certiorari
        and / or any other appropriate writ, order of direction be issued to
        quash and set aside impugned award dated    13.05.2022 passed by
        Labour Court, Godhra, in Reference (T) No.95 of 2014 qua not


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     C/SCA/3550/2023                                         JUDGMENT DATED: 20/02/2026




        allowing the Reference of the petitioner in full and further may be
        pleased to direct the respondents to grant reinstatement with continuity
        in service and bcakwages;

        (B) Pending the admission, hearing and final disposal of this petition,
        this Hon'ble Court may be pleased to direct respondents to
        reinstate the petitioner in service along with continuity:

        (C) Any other and further relief or reliefs to which this Hon’ble
        Court deemed fit, in the interest of justice, may kindly be granted."




2.      The same Award has been challenged by the state in
SCA/23330/2022.


3.      Heard Mr. Dipak R. Dave, learned Counsel for the employee
and Ms. Sweety Samara, learned Assistant Government Pleader for
the Employer State.



4.      Mr. Dipak R. Dave, learned Counsel for the petitioner submits
that in case of the similarly situated workmen, who                          have been
terminated        by   the   respondent         employer, serving in the same
irrigation       department,          this     Court         vide       order         dated
14.2.2020/20.1.2020            allowed         Special         Civil Application No.
22362 of 2019 and allied petitions and granted benefits to the
concerned         workmen.      Mr.     Dave, learned            Counsel        for       the
petitioner has submitted that though                   the     Labour       Court         has
rightly      observed    that     the respondent has not produced any
documents         and considering the Law laid down by the Hon’ble
Supreme Court and in case of similar matters granted reinstatement
without backwages. It is submitted that though continuity is not
mentioned the same has to be considered as implied as per the
settled law. It is submitted that in the similar cases of very


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                    C/SCA/3550/2023                                     JUDGMENT DATED: 20/02/2026




               department at very canal division in SCA/2205/2023, this court has
               while modifying award of lumpsum compensation granted relief of
               considering the service of the employee as continuous until he
               reached age of superannuation. In the present case the labour court
               has rightly passed the order of reinstatement however the labour
               court ought to have granted back wages.



               5.      Mr. Dave, learned Counsel for the petitioner, in support
               of his submissions, relied upon and referred to the decisions of
               the coordinate bench of this Court in Special Civil Application
               No.22362 of 2019 and allied petitions, Special Civil Application No.
               4168 of 2022 with Special Civil Application No.4198 of 2022 and
               the order passed by the Hon'ble            Division Bench of this Court in
               Letters Patent Appeal No.389 of 2024 and urges that the impugned
               award passed by the Labour Court be modi ed in line of the
               observations made in the said decisions.



               6.      Mr.      Dave,   learned   Counsel        for     the     petitioner          has
               submitted that the order passed by the learned Single Judge in
               favour of the concerned workman is further carried in Appeal by
               the State before the Division Bench by way of preferring Letters
               Patent Appeal No. 389 of 2024 and the Hon’ble Division Bench
               vide order dated 7.8.2024            con rmed           the     said    order     and
               rejected      the Letters Patent Appeal No. 389 of 2024 filed by the
               State and therefore, similar order may be passed in present
               petition also. Mr. Dave has also relied upon the decision in
               SCA/2205/2023 vide oral order dated 30.08.2024 as con rmed in
               LPA/855/2025 by order dated 07.08.2025.



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                    C/SCA/3550/2023                                        JUDGMENT DATED: 20/02/2026




               7.      Per      contra,     Ms.     Sweety Samara,               learned     Assistant
               Government Pleader for the respondent has strongly opposed
               and objected present petition and also contended that the petition
                led by state be allowed. It is submitted that the petitioner
               workman has not proved that he has worked in the said Canal and
               there was no documentary evidence produced by the petitioner and
               therefore,       Labour      Court      ought not to have passed order of
               reinstatement. It is urged that the Award passed by labour court is
               contrary to the documents on record and therefore the same may be
               set aside. Learned AGP has referred to and rely upon grounds
               mentioned in memo of petition led by state and urged to allow the
               petition of state and to dismiss the petition of employee. The Learned
               AGP is not in a position to dispute that judgment rendered in
               SCA/2205/2023 as con rmed in LPA/855/2025                       is applicable to the
               facts of present case.



               8.      I      have        considered         the      material      and       relevant
               documents placed on record. I have also gone through the record of
               the petition as well as the impugned award passed by the
               Labour Court and the relevant papers appended to the petition.



               9.      It appears that the issue involved in present petition has
               already been decided by two di=erent coordinate benches                                  of
               this Court wherein services of similarly situated workmen, who
               were working in the same irrigation department came                              to      be
               terminated and the workmen have challenged the said order of
               termination before the Labour Court and Labour Court has awarded
               lumpsum           compensation           by         rejecting     the       order        of
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                C/SCA/3550/2023                                      JUDGMENT DATED: 20/02/2026




          reinstatement.          The   said     order        was     challenged        by        the
          concerned           workmen    before         this        Court     by       way         of
          preferring Special Civil Application No.22362 of 2019 and allied
          petition, whereby after hearing the parties, the coordinate bench
          of this Court has passed an order dated 14.2.2020/20.1.2020 and
          allowed the group of petitions keeping in mind the observations
          made in paragraph Nos. 9, 10 and 11.

          10.      The said petition came to be allowed with the direction
          to the respondent to consider the case of all the concerned
          workmen for retirement benefits, who have attained the age of
          superannuation instead of granting reinstatement,                     till   the   date
          of     superannuation     with continuity of service. In case of employees
          who had not reached superannuation age have been directed to be
          reinstated in service with continuity of service.

          11.      It is not in dispute that in case of Jawanbhai Malabhai Pagi,
          SCA/2205/2023 which is of bhadar canal sub division, lunawada i.e
          Very respondent, in case of similarly situated employee, this court
          has modi ed award of compensation by allowing the petition of an
          employee and directed to treat his service as continuous till date of
          retirement and to pay all retirement bene ts.

          12.      Similarly situated workman has filed present petition and
          therefore, similar order is required to be passed in the facts of the
          present petition also.

          13.      At this stage, it appropriate to take into account the similar
          observation made by the co-ordinate bench of this Court in Special
          Civil Application No. 4168 of 2022 and Special Civil Application No.



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             C/SCA/3550/2023                                   JUDGMENT DATED: 20/02/2026




          4189 of 2022 vide judgment dated 24.6.2022 which reads as under:-

                "10. Accordingly, as held by this Court in the judgement of Chhatrasing
                Marutising Bariya vs. Dy. Executive Engineer & Ors., the petitions are
                allowed. Under the circumstances, the impugned award passed by the
                Labour Court is erroneous to the extent of granting compensation. The
                respondents are directed to reinstate the workmen in service with
                continuity of service. However, it is clarified that they will not be
                entitled to any backwages as they have given up their claims.
                After their reinstatement, it will be open for the petitioners – workmen to
                file a representation claiming the benefits of Government Resolution
                dated     17.10.1988.   The      order reinstating the petitioner workmen
                shall be passed within a period of three months from the date of receipt
                of this order. The amount of compensation, if already paid to the workmen,
                the same shall be adjusted while fixing their pay.

                11. As far as petitioner of Special Civil Application No. 4189 of 2022 is
                concerned, he has attained the age of superannuation. The
                Court accedes to the request of quashing and setting aside
                the    order    of    lump-sum compensation and instead grant the
                reinstatement till the date of superannuation with continuity of
                service. The backwages has been forgone by the employee with the
                grant of continuity to him who has attained the age of
                superannuation. He shall be paid consequentially the retirement
                benefits on the strength of modi ed award in not later than twelve weeks’
                time from the date of receipt of copy of this order."

          14. It is also required to be noted herein that the Hon'ble Division
          Bench in Letters Patent Appeal No. 389 of 2024 has con rmed the
          order passed by the learned Single Judge and observed that:-

                “10. On a perusal of the award passed by the Labour Court, we find that
                the Labour Court had directed the employer to produce muster-roll to
                satisfy as to whether from which year, the workman has completed 240
                days. Despite the aforesaid direction, the employer of the respondent-
                workman did not produce the same. It is asserted by the workman that
                he was engaged from 1994 to 1997 however, his service was
                terminated from 03.10.1997. The learned Single Judge after placing
                reliance on the judgment of the Supreme Court in the case of R.M. Yellatti
                (supra), has held that the termination was not in violation of provisions
                of Section 25F of the Act, no muster roll was produced by the
                employer, though directed by the Labour Court.

                11. The learned Single Judge in the impugned judgment and order, more
                particularly in paragraph No.6 has held thus : -




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                          C/SCA/3550/2023                                        JUDGMENT DATED: 20/02/2026




                                      “6. Apart from setting out the number of days that the
                                      respondent had worked in the years 1994 to 1997 as referred to
                                      herein above, perusal of the award of the Labour Court would
                                      indicate that in one of the references which was heard together
                                      with the present reference, at mark 20/1, the employer was called
                                      upon to produce the muster roll to satisfy the Labour Court as to
                                      whether in each year of service, the workman had completed 240
                                      days. At mark 17/1, the deposition of the employer’s witness
                                      Ravindran Karunakaran Nair was also considered. The Labour
                                      Court considering the decision of the Supreme Court in case of
                                      R.M.Yellatti v. Assi. Executive Engineer reported in 2006 SSC (L&S)
                                      1 held that adverse inference has to be drawn in the event of
                                      employer having failed to produce oral as well as documentary
                                      evidence on record. Even otherwise, this Court had an occasion
                                      to deal with the awards of a similar nature where the Labour
                                      Court fell short of awarding reinstatement and awarded
                                      compensation. The petitions were filed by the State challenging
                                      the award of reinstatement with 10% back-wages and those of
                                      some        workmen         who       are      already     awarded
                                      compensation. In the oral order dated 20.01.2020, the Court
                                      con rmed the orders of reinstatement, however, set aside the
                                      order of granting 10% back-wages. In other words, the award of
                                      reinstatement without back- wages was the award of the Labour
                                      Court which was in terms modi ed.”


                             12. We are in complete agreement with the findings recorded by the
                             learned Single Judge. We have also noticed that the Department, in
                             which the respondent-workman was working was never closed down and
                             there were other employees, who were working along with the present
                             workman. It is also not in dispute that no seniority list has been
                             produced by the appellant before the Labour Court, and hence, the
                             Labour Court is justi ed in holding the termination in violation of
                             Section 25G and H of the I.D. Act."

                    15. Hon'ble Division Bench of this Court has rejected the Letters
                    Patent Appeal filed by the State and con rmed the                                    order
                    passed       by     the   learned    Single     Judge   and observed paragraph
                    No. 13 as under:-

                             "13. Thus we do not find any reason for interfering the judgment
                             and order passed by the learned Single Judge. Hence, the present
                             appeal fails. The same is hereby rejected accordingly."

                    16.      Therefore,       the   orders     passed       by      the     two     di=erent
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                     C/SCA/3550/2023                                             JUDGMENT DATED: 20/02/2026




               coordinate benches of this Court are now con rmed by the
               Hon'ble Division Bench and therefore, this Court has no any other
               alternate but to pass the similar order in view of the order passed by
               the two di=erent coordinate bench of this Court and con rmed by
               Division Bench of this Court.



               17.      It   is     required       to     be     noted      herein      that     once         the
               coordinate           bench         of     this     Court         has     considered            the
               submissions and passed the order which is upheld by the Hon'ble
               Division        Bench,       for        considering        the    judicial discipline and
               propriety, this Court has no any alternate but to pass the similar
               order as observed by the Hon'ble Apex Court, time and again that
               in similar identical facts, if one coordinate bench has taken the
               view then the another coordinate bench has to follow the same.



               18. It is also appropriate to take into account that in the another
               group of Letters Patent Appeal being Letters Patent Appeal No.
               622 of 2024 the court has con rmed the order of learned Single
               Judge in the similarly situated workman on the same line, where the
               Labour Court has awarded lumpsum compensation in lieu of
               reinstatement and that was interfered by coordinate bench of this
               Court, which is upheld by the Hon'ble Division Bench of this
               Court in Letters Patent Appeal No. 622 of 2024. Relevant paragraph
               No. 3 read as under:-

                        “3. The Division Bench vide order dated 19.03.2024                         passed      in
                        Letters   Patent      Appeal     No.190     of 2024, has                    held       in
                        paragraphs, 4, 5, 6, 7, 8, 9 and 10 as under:

                                  “4. It is further noted by the learned Single Judge that the
                                  only documents, that were produced by the employer, were
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C/SCA/3550/2023                                    JUDGMENT DATED: 20/02/2026




           for the period from January 2007 to December 2009. The
           contention on behalf of the State was that on account of delay
           of 2 years in raising the dispute, when the work at the Canal had
           been outsourced, reinstatement was not possible, that too after
           a lapse of 20 years from the date of termination of the services of
           the petitioner, as admitted to the petitioner.

           5. These findings returned by the learned Single Judge are
           sought to be assailed by Ms. Hetal Patel, learned Assistant
           Government    Pleader, appearing       for  the   State-appellant,
           with the assertions in the written statement placed before us. It is
           sought to be submitted that the petitioner was engaged in a
           project which has come to an end and he was never engaged
           by the Bhadar Canal Sub-Division.

           6. This statement made in the written statement is found to be
           wrong for the simple reason that on the asking of the Labour Court,
           the employer had produced the attendance records of only
           last three years, i.e. for the period from January 2007 to December
           2009. It was not the case of the appellant- employer that the
           petitioner was never engaged in the department. The complete
           record establishing        the    period    of   working    of  the
           petitioner even in the Project, wherein he was allegedly
           engaged by the respondent as per the contentions in the
           written statement, had not been produced by the employer.

           7. The best evidence was in the custody of the appellant
           employer and for not producing the entire record including
           the attendance-sheet to establish the actual period of working
           of the petitioner, adverse inference was required to be drawn by
           the Labour Court.

           8. It is an admitted fact of the matter that apart from the
           attendance-sheet of three years, no oral or       documentary
           evidence was placed by the appellant department before the
           Labour Court and the best evidence was withheld in spite of the
           specific directions issued by the Labour Court.

           9. We are, therefore, of the view that the findings returned by the
           learned Single Judge that the compensation in lieu of
           reinstatement will be detrimental to the petitioner, who has
           worked over a period of 20 years and who has been illegally
           restrained from working at the instance of the employer. As the
           respondent department/appellant herein has failed to establish the
           period of working of the petitioner, who has admittedly been
           engaged in the department since 1983 till July           2011,  as
           categorically   stated     by     the workman, we are of the
           considered view that for violation of the Section 25-F, G and H
           of the Industrial Disputes Act, the reinstatement ought to have
           been followed, as directed by the learned Single Judge.



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                          C/SCA/3550/2023                                JUDGMENT DATED: 20/02/2026




                                     10. For the aforesaid, no case is made out for interference.
                                     The appeal is, therefore, DISMISSED, affirming the order
                                     passed     by    the   learned  Single Judge. Pending   Civil
                                     Application also stands DISPOSED OF.”

                    19.      In the present case, Labour court has rightly considered
                    evidence on record and relying upon judgment of Hon’ble supreme
                    Court in case of Director, Fisheries Terminal Division, AIR 2010 SC
                    1236, held that the employee has rendered continuous service as per
                    section 25B of ID Act. The Labour court, Godhra in reference (T)
                    no.148 of 2013 has passed identically worded award and as only
                    compensation was granted, the same was modi ed in SCA/2205/2023
                    and con rmed in LPA/855/2025. In the present case thus looking to 26
                    years of service from 1985 to 2011, it cannot be said that the Labour
                    court has committed any error in granting reinstatement. Since in the
                    similar cases reinstatement with continuity of service however
                    without backwages have been granted, the same order is required to
                    be passed.

                    20.      In view of the above observations and keeping in mind the
                    observations made by the two di=erent Coordinate Benches of this
                    Court in Special Civil Application Nos. 22362 of 2019 and 4168 of 2022
                    with 4189 of 2022 and con rmed by the Hon'ble Division Bench of this
                    Court in Letters Patent Appeal No. 389 of 2024, the petition of
                    employee is hereby allowed. The impugned award dated 13.05.2022
                    passed by the Labour Court, Bharuch in Reference (T) No. 95 of 2014
                    is hereby con rmed so far as reinstatement is concerned and the
                    respondent is hereby directed to reinstate the employee petitioner in
                    SCA/3550/2023 with continuity of service however without back wages
                    in the same line as directed by this court and division bench in the
                    matters referred herein above. Accordingly, the petition of state is
                    required to be rejected.
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             C/SCA/3550/2023                                                       JUDGMENT DATED: 20/02/2026




     21.        Thus the Award of reinstatement is con rmed with the further
     direction to reinstate the concerned employee with continuity of
     service. The employee shall be reinstated as directed above within
     period of three months from the date of receipt of copy of writ of
     this order.

     22.        Accordingly, both the petitions stand disposed of. Rule is made
     absolute to the above extent.



                Direct service is permitted.


                                                                        (HEMANT M. PRACHCHHAK,J)

     Dolly




     Original copy of this order has been signed by the Hon'ble Judge.
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     Digitally signed by: DOLLYBEN CHETANBHAI VADUKAR(HC01392), PRIVATE SECRETARY, at High Court of Gujarat on 24/02/2026 15:15:29


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