Supreme Court Grants Higher Compensation in Workmen Dismissal Case

The case of Karshanbhai Ramjibhai Jaladiya vs. District Development Officer is a significant ruling concerning labor rights and compensation. The Supreme Court had to determine whether dismissed workmen were entitled to reinstatement or a higher compensation in light of their service tenure and prolonged litigation.

The appellants, former workmen, challenged their dismissal, arguing that their juniors had been retained while they were removed. The Supreme Court decided to grant them higher compensation instead of reinstatement, considering the circumstances of the case.

Background of the Case

The case revolved around two appellants who had been engaged as workmen for about five years. They contended that while they were removed from service, their juniors were retained. This led to a legal battle spanning over three decades.

One of the appellants, Sh. Khimjibhai Muljibhai Mahida, passed away during the litigation, and his legal representatives continued the case.

The case was initially heard by the Gujarat High Court, which ruled against reinstatement. The workmen then approached the Supreme Court.

Arguments of the Petitioners

The petitioners argued:

• They had been unfairly dismissed while their juniors remained in service.
• They were entitled to reinstatement or adequate compensation for their years of service.
• The High Court’s decision did not account for the unfairness in retaining junior employees while dismissing senior ones.

Arguments of the Respondents

The respondents contended:

• There were no vacancies available for reinstatement as Work Charged Clerks or Carpenters.
• One junior employee had been retained due to specific directions from the High Court in a separate case.
• Given the passage of time and the nature of employment, reinstatement was not a feasible remedy.

Supreme Court’s Observations

The Supreme Court found that the petitioners had been engaged for about five years and had pursued litigation for a long time. The Court observed:

“Having regard to the entire facts and circumstances of the case, particularly the prolonged litigation pursued by the parties reaching up to this Court, we are of the view that the interest of justice would be met if the compensation is fixed at Rs. 6,50,000/- (Rupees Six Lakhs and Fifty Thousand) each, in addition to the amounts already paid, in full and final settlement of the entire claims of the appellants.”

Final Judgment

The Supreme Court ruled:

• The appellants would receive Rs. 6,50,000 each as compensation, in addition to what had already been awarded by the High Court.
• The amount must be paid within six weeks from the date of the judgment.
• In the case of Karshanbhai Ramjibhai Jaladiya, he was granted a right to preferential appointment if any vacancy arose in the future for Work Charged Clerk or Carpenter, subject to his eligibility.
• The judgment was passed considering the peculiar facts of the case and was not to be treated as a precedent.

Key Takeaways from the Judgment

• Compensation Instead of Reinstatement: The Supreme Court acknowledged the long litigation period and ruled in favor of a financial settlement rather than reinstatement.
• Preferential Appointment: One of the petitioners was given a preferential right to employment in case a suitable vacancy arose.
• Final Settlement: The compensation amount was deemed full and final, preventing any further claims.

This ruling is important for workmen facing wrongful termination, as it highlights the Supreme Court’s approach in balancing compensation with practical considerations.

Petitioner Name: Karshanbhai Ramjibhai Jaladiya
Respondent Name: District Development Officer
Judgment By: Justice Kurian Joseph, Justice Mohan M. Shantanagoudar
Place Of Incident: Gujarat, India
Judgment Date: 19-03-2018

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