This Article is From Apr 22, 2012

High Court asks Kerala House to pay Rs 2.5Lakhs for sacking employees

New Delhi: The Kerala House has been ordered by the Delhi High Court to pay Rs 2.5 lakh each as compensation to two of its former employees for sacking them without any notice.

A bench of acting Chief Justice A K Sikri and Justice Rajiv Sahai Endlaw gave the order, dismissing the Kerala House appeal against a labour court ruling. The court held the termination of its two workmen as illegal and ordering their reinstatement with continuity in service and full back wages.

"The two workmen (Sanjay Kumar and Mangal Singh) had rendered nine and eight years of services respectively before their services were terminated. The appellant has not justified their termination on any ground whatsoever.

"Therefore, this kind of termination would be illegal. To that extent, award of the labour court holding the termination as illegal is sustained, though on different grounds," the bench held.

Kerala House had challenged the labour court's award on the sole ground that it had no jurisdiction as the Kerala Public Services Act (KPSA), 1968, deals with the recruitment and conditions of service of persons in connection with the affairs of the State of Kerala.

The bench, however, rejected the contention ruling that that the labour court did have the jurisdiction and added that as Kerala House had not contended before the the labour court that it did not have the jurisdiction, its award cannot be interfered with.

"Thus, once we find that the award of the labour court is not without jurisdiction and no such foundation was laid before the labour court, it is difficult to interfere with the award passed by the labour court", the bench added.

Sanjay Kumar, a peon and Mangal Singh, a sweeper, were employed on daily wages by the Kerala House and were sacked after nine and eight years of service respectively.

They were allegedly terminated without any inquiry or having been given any notice or pay in lieu of the notice period or retrenchment compensation etc.

They had challenged their termination before a labour court, which held their removal from service as illegal and passed an award for their reinstatement with continuity in service and full back wages.
Observing that reinstatement of the two would not serve the ends of justice as they were terminated nearly 10 years ago, in 2002, the bench instead awarded each of them Rs 2.5 lakh as compensation.

"We are of the opinion that when two workmen were employed on adhoc and daily wage basis and termination also took place almost 10 years ago i.e. in the year 2002, grant of relief of reinstatement at this stage may not be justified" the bench observed.

"Instead, they should be awarded lump sum compensation in lieu of back wages. Considering the fact that they have served for a long period, the compensation of Rs 2.5 lakhs to each of the workmen would subserve the ends of justice. The award is modified to that extent," the bench said.
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