Bipinkumar Babulal Kalola vs. Wankaner Nagar Palika on 19 April, 2018


The respondent-workman was serving as Rojamdar clerk in octroi department and was getting daily wage of Rs.75.90. He rendered services for four years. The State Government abolished octroi and that octroi department in Nagarpalika, Municipality and Municipal Corporation came to be closed. The service workman came to be discontinued. Nagarpalika terminated his service without notice, without payment of compensation and without granting opportunity of hearing. The workman assailed the Nagarpalika action of discontinuing his service on the ground of breach of statutory provisions Section 25F, Section 25G and Section 25H of the Industrial Disputes Act, 1947.

The Nagarpalika opposed. The Nagarpalika contended that on abolition of octroi, the Nagarpalika had to close the octroi department and that therefore, the department was constrained to discontinue engagement of claimant. The Nagarpalika contended that the claimant was not recruited after following prescribed procedure for selection and recruitment. The claimant was engaged irregularly and on exigency basis. The Nagarpalika contended that the claimant was engaged, on ad-hoc, temporary and daily wage basis, and that he was not regularly selected permanent workman. The Nagarpalika also contended that on account of unavoidable and compelling circumstances, the Nagarpalika was left with no option but to discontinue and relieved the claimant. It was also claimed that since the octroi department is closed, the relief prayed for by the claimant does not deserve to be granted. The claimant raised industrial dispute with the allegation that the Nagarpalika illegally terminated his service. Appropriate government referred the dispute for adjudication to learned Labour Court at Rajkot.

Labour Court held and the having reached to the conclusion that while discontinuing the service of the claimant, who worked as daily wage clerk in octroi department, the Nagarpalika did not comply the conditions and requirement under Section 25F, the Court passed award granting lump sum compensation to the tune of Rs.80,000/-. Since Labour Court did not grant reinstatement, the claimant felt aggrieved and claimant has challenged award pass by Labour Court at Rajkot.

The High Court Held that it was a breach of Section 25F , since it was established that the workman had completed 240 days and had worked for four years. Nagarpalika is directed to take necessary steps to pay amount as expeditiously as possible and preferably within 4 weeks. Petition stands disposed.