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Informative

The Punjab & Haryana High Court examined the legality of a Labour Court award granting reinstatement with back wages.

Update / Judgement Date

30 Sept 2025

Source

WCP News Bulletin

Author

Sakshi Bhardwaj — WCP Legal Desk

Reading Time

2 min read

Labour Laws
The Punjab & Haryana High Court examined the legality of a Labour Court award granting reinstatement with back wages.
WCP News Bulletin

Headnote

Labour Court award of reinstatement with back wages was set aside. The High Court held that adverse inference cannot be drawn against the management when muster rolls are produced but ignored, and that findings of juniors being retained were based on presumption, not evidence. The case was remanded to the Labour Court/Industrial Tribunal for fresh adjudication within four months.


Background

  1. Respondent-workmen claimed continuous service since 1986 in the Public Health Works Division, Pathankot.
  2. Services allegedly terminated on 01.03.1994 without compliance with the Industrial Disputes Act, 1947, and allegedly due to trade union activities.
  3. They alleged that juniors were retained and fresh hands appointed after their termination.
  4. Management’s Defence:

Appointment was project-based and covered under Section 2(oo)(bb) (completion of project).

Workmen had not completed 240 days continuous service, so Section 25-F not attracted.

Termination was denied; alleged voluntary abandonment of service.

5. Labour Court Award (03.04.2001): Ordered reinstatement with continuity of service, back wages, and benefits.


Court’s Opinion

  1. On muster rolls: M.W.1 (SDO, Public Health) testified that muster rolls for 1986–1994 were produced, but the Labour Court ignored them and unjustifiably drew adverse inference.
  2. On juniors retained: The Labour Court’s finding that juniors were retained and new recruits made was based only on assumptions. The burden was on the workmen to prove this with positive evidence.
  3. Error of law & fact: The Labour Court committed factual and legal errors; its award could not stand.


Decision

  1. Award dated 03.04.2001 set aside.
  2. Case remanded to the Labour Court/Industrial Tribunal for fresh adjudication.
  3. Tribunal directed to decide the case within four months from receipt of certified copy.
  4. All connected petitions disposed of accordingly.


Legal Provisions Concerned

  1. Industrial Disputes Act, 1947
  2. Section 2(oo)(bb) – Termination on completion of contract/project.
  3. Section 25-F – Conditions precedent to retrenchment.
  4. Section 25-G – Principle of “last come first go”.
  5. Section 25-H – Re-employment of retrenched workmen.


Case Details

CWP Nos.: 11263, 11439, 11244, 11264 of 2001 (O&M)

Citation: 2025:P&H:11263

Date of Decision: 01 October 2025

Coram: Hon’ble Mr. Justice Kuldeep Tiwari