Chhattisgarh High Court
Employment and Labour LawAdministrative and Public Law

Compensation in lieu of reinstatement enhanced to ₹3 lakh, inclusive of applicable benefits.

Baishakhu Ram vs Shaktipith Mahamaya Devi Mandir Trust Ratanpur and Anr.

Chhattisgarh High CourtJUDGMENT: September 28, 20262 MIN READSOURCE JUDGMENT
Compensation in lieu of reinstatement enhanced to ₹3 lakh, inclusive of applicable benefits.. Baishakhu Ram vs Shaktipith Mahamaya Devi Mandir Trust Ratanpur and Anr.. Chhattisgarh High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

Baishakhu Ram was engaged by the Trust in 1994, and his services were terminated in 2011.

Source reference: p. 2–3, 8

The Labour Court, Bilaspur, awarded him ₹1,00,000 in lieu of reinstatement.

Source reference: p. 2–3, 8

The workman challenged the amount as inadequate, relying on his age, years of service, and last-drawn salary of ₹7,050 per month; the Trust separately challenged the Labour Court’s award.

Source reference: p. 2–4

During the hearing, the Trust offered to increase the compensation to ₹3,00,000, inclusive of gratuity and any other benefits payable under applicable law.

Source reference: p. 5, 9
02

Issues

1. Whether the Labour Court’s award of ₹1,00,000 as compensation in lieu of reinstatement was inadequate and should be enhanced.

Source reference: p. 2–4, 8–10

2. Whether the Court should determine whether the Trust is an “industry” under the Industrial Disputes Act, 1947.

Source reference: p. 5, para. 12
03

Law Applied

The Court considered the petitions under Article 226 of the Constitution and the Labour Court’s award under the Industrial Disputes Act, 1947.

Source reference: p. 2–3

It applied no identified statutory provision, cited precedent, or specific test for quantifying compensation. Instead, it assessed the adequacy of the compensation by reference to the workman’s age, length of service, last-drawn salary, and the Trust’s offer.

Source reference: p. 8–10

The question whether the Trust falls within the Act’s definition of “industry” was expressly left open.

Source reference: p. 5, para. 12
04

Reasoning

The Court found ₹1,00,000 inadequate given that the workman was about 78 years old, had served the Trust for several years, and last earned ₹7,050 per month.

Source reference: p. 4, para. 8

It accepted the Trust’s voluntary offer of ₹3,00,000 rather than the workman’s request for ₹4,00,000, considering the workman’s circumstances and the proposal made during the hearing.

Source reference: p. 4, para. 10

The Court did not decide the Trust’s status as an “industry”.

Source reference: p. 5, para. 12
05

Holding

The Court enhanced the compensation from ₹1,00,000 to ₹3,00,000, inclusive of gratuity and any other benefits otherwise payable under applicable labour laws.

The Trust was directed to pay within three weeks of receiving the order; any unpaid amount after that period would carry interest at 6% per annum until payment.

Source reference: p. 4, para. 11

The question whether the Trust is an “industry” was left open for determination by the competent forum at an appropriate stage.

Source reference: p. 5, para. 12

Both petitions were disposed of.

Source reference: p. 5, para. 13
Chhattisgarh High Court

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Baishakhu RamvsShaktipith Mahamaya Devi Mandir Trust Ratanpur and Anr.

Chhattisgarh High Court · September 28, 2026

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