YASHMUM ENGINEERS LTD Vs. SUDHIR JAGANNATH KUKARNI

JUDGEMENT

(1.) These two cross petitions are filed by employer and the workman challenging the Judgment and order dtd. 25/3/2011 passed by the Presiding Officer, Labour Court, Thane. The impugned Award arises out of a challenge raised by the employee in Industrial Dispute with regard to his retrenchment with effect from 25/11/1997. The Labour Court by the impugned order, has answered the Reference partly in affirmative directing employer to pay compensation of Rs.3.00 lakh to the workman while holding termination to be illegal. The employer is aggrieved by the Award to the extent of holding the termination as illegal and awarding compensation. The workman on the other hand is aggrieved by non grant of relief of reinstatement with full backwages and other consequential benefits.

(2.) Briefly stated, facts of the case are that M/s. Yashmun Engineers Ltd. is a company registered under the provisions of Companies Act 1956 engaged in the activities of manufacturing and services of electrical, electronics and mechanical produce. It is sister concern of Tata Electrical Company Ltd. and operates three Factories at Dharavi, Thane and Pune. The workman was appointed with the employer initially at their Dharavi Unit and later he was transferred at Wagale Industrial Estate Thane as Senior Draughtsman on 1/6/1979. While so working, the workman faced some financial problems and tendered resignation with the employer. This is how his services came to an end on 7/6/1995. It is the workman's case that his resignation was obtained by misguiding him and by taking advantage of his financial problems and under a promise to reemploy him. Accordingly, the workman was granted reemployment by the employer with effect from 1/10/1995. However, his services were terminated with effect from 25/11/1997 vide termination letter dtd. 17/11/1997.

(3.) The workman raised dispute with regard to his termination and accordingly a Reference was made before the Deputy Commissioner of Labour (Conciliation) Thane as to whether the workman was entitled to reinstatement with full backwages and benefits with effect from 25/11/1997. The workman filed statement of claim. The employer resisted the Reference by filing its Written Statement. Evidence was led before the Labour Court by respective parties. By Judgment and order dtd. 25/3/2011, the Labour Court held that the workman was illegally terminated from services with effect from 25/11/1997 and that the same amounted to retrenchment as contemplated under sec. 2 (oo) of the Industrial Dispute Act 1947. However instead of granting relief of reinstatement or backwages, the Labour Court felt it appropriate to grant compensation of Rs.3.00 lakh to the workman. The workman has filed Writ Petition No.2732 of 2012 challenging the Award, to the extent of denial of relief of reinstatement with full backwages and other consequential benefits.