Purvanchal Mazdoor Trade Union v. M/S. Fashion Team

1. The petitioner has challenged the award of the Labour Court whereby compensation of Rs.20,000/- has been awarded to each of the 14 workmen who have completed one year of service; Rs.25,000/- has been awarded to each of the 52 workmen who have completed two years of service and Rs.30,000/- has been awarded to each of the 7 workmen who have completed three years of service along with interest @ 8% per annum from the date of the award.

2. There is no appearance on behalf of the respondent who was duly served by way of affixation/publication and was proceeded ex parte on 9th December, 2015. Mr. Sanjoy Ghose, Advocate was appointed as amicus 2017:DHC:3948 curiae to assist this Court.

3. The petitioner raised an industrial dispute in respect of workmen who were retrenched by the respondent on 3rd July, 1997. Learned Labour Court held that 73 out of 81 workmen were covered within the definition of “workman” under Section 2(s) of the Industrial Disputes Act, 1947. The Labour Court further held that the management terminated the services of the workmen without applying Sections 25F and 25N of the Industrial Disputes Act. The petitioner seeks enhancement of the compensation awarded by the Labour Court.

4. Learned amicus curiae submits that the compensation awarded by the learned Labour Court is on a lower side. Learned amicus curiae submits that the compensation amount of Rs.20,000/- be enhanced to Rs.90,215; Rs.25,000/- be enhanced to Rs.91,938/- and Rs.30,000/- be enhanced to Rs.93,661/- as per the computation given hereunder:

1. For compliance under 25N (3 month notice + Retrenchment Compensation i.e. 15 days avg. pay for every completed year) Rs.10,400 [1600 x 3 + (800 x 7)] Rs.9,600 [1600 x 3 + (800 x 6)] Rs.8,800 [1600 x 3 + (800 x 5)]

2. Wages for period 1997-2001 ( 4 years approximately) Rs. 76,800 (1600 pm x12 months x 4 years) months x 4 years) months x 4 years)

3. Gratuity (Pay x 15 days x No. of years of service)/26 Rs.6461 approx (1600 x 15 x 7)/26 Rs.5538 approx 6)/26 Rs.4615 approx 5)/26

4. (1)+(2)+(3) Rs.93,661 Rs.91,938 Rs.90,215

5. The computation of compensation by the learned amicus curiae is fair and reasonable.

6. Learned counsel for the petitioner accepts the computation by learned amicus curiae and submits that the workmen be awarded interest @ 8% per annum as awarded by the Labour Court.

7. The writ petition is allowed and the compensation awarded by the Labour Court to 14 workmen with one year of service is enhanced from Rs.20,000/- to Rs.90,215/-; compensation awarded to 52 workmen with two years of service is enhanced from Rs.25,000/- to Rs.91,938/- and compensation awarded to 7 workmen with three years of service is enhanced from Rs.30,000/- to Rs.93,661/-. The particulars of the workmen are given in para 37 of the award which is not being repeated herein for the sake of brevity. The workmen shall be entitled to interest @ 8% per annum from the date of the award i.e. 25th November, 2010 till realization.

8. This Court appreciates the assistance rendered by Mr. Sanjoy Ghose, learned amicus curiae and Ms. Pratishtha Vij, Advocate who submitted exhaustive submissions as well as the compilation of relevant judgments and the computation of the compensation amount.

9. The pending application is disposed of.

10. Copy of this judgment be given dasti to counsel for the parties under the signature of the Court Master. JULY 26, 2017 Dk J.R. MIDHA, J.