Gujarat High Court

Dismissal of challenge to nominal compensation award on grounds of smallness of amount.

RANGE FOREST OFFICER vs DAMU MAHADU GAYAKVAD

Gujarat High CourtJUDGMENT: July 17, 20263 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The respondent-workman was employed by the petitioner (Range Forest Officer) as a Watchman for approximately four years; his services were orally terminated on 01.06.2015 without compliance with the mandatory provisions of Section 25(F) of the Industrial Disputes Act, 1947 ("I.D. Act")

Source reference: para. 3.1

Aggrieved, the workman raised an industrial dispute; the reference was partly allowed by the Labour Court by award dated 26.08.2022 in REF (LCV) No. 91 of 2016, granting compensation of Rs. 70,000/- in lieu of reinstatement, together with costs of Rs. 5,000/-

Source reference: para. 3.1; para. 1(b)

Aggrieved by the award, the petitioner-employer approached this Court seeking to quash it

Source reference: para. 1; para. 3.1

The petitioner contended the workman had not completed 240 days of service in the twelve calendar months preceding termination, rendering Section 25(F) inapplicable

Source reference: para. 4
02

Issues

1. Whether the Labour Court's award granting compensation of Rs. 70,000/- in lieu of reinstatement was vitiated on the ground that the workman had not completed 240 days of service in the twelve calendar months preceding the date of termination, so that Section 25(F) of the I.D. Act was not attracted.

Source reference: para. 4

2. Whether the Labour Court had misinterpreted Section 25(B) of the I.D. Act (defining "continuous service"), rendering the award contrary to law and liable to be quashed in the High Court's writ jurisdiction.

Source reference: para. 4
03

Law Applied

Section 25(F) of the Industrial Disputes Act, 1947 prescribes the conditions precedent to a valid retrenchment (notice or wages in lieu thereof and payment of retrenchment compensation), compliance with which was absent in the oral termination as pleaded

Source reference: para. 3.1

Section 25(B) of the I.D. Act defines "continuous service," requiring, inter alia, 240 days of service in the relevant twelve-month period for a workman to claim statutory protection

Source reference: para. 4

Declining merits-based interference in writ jurisdiction where the amount in dispute was small (Rs. 70,000/-), while expressly keeping the petitioner's legal grounds open

Source reference: para. 6
04

Reasoning

The Court acknowledged the petitioner's contentions that the workman lacked the qualifying 240 days of continuous service and that the Labour Court had misread Section 25(B)

Source reference: para. 4

However, instead of testing those contentions against Sections 25(B) and 25(F) on merits, the Court anchored its decision in the quantum involved: observing that "the amount involved in the present petition is only Rs.70,000/-," the Court held that, "considering the smallness of amount," the petition was "required to be dismissed," "without going into the merits of the matter by keeping all the grounds raised by the petitioner open"

Source reference: para. 6

The proportionality of judicial intervention to the modest monetary stake thus displaced a merits review of the Labour Court's construction of the I.D. Act

Source reference: para. 6
05

Holding

The Court did not answer the issues on merits. The petition was dismissed on the ground of the smallness of the amount involved (Rs. 70,000/-), with all grounds raised by the petitioner expressly kept open

Rule was discharged and the interim relief granted earlier was vacated forthwith

Source reference: para. 6

The petitioner-employer was directed to deposit the compensation awarded by the Labour Court to the respondent-employee within a period of six weeks from the date of the judgment, if not already deposited

Source reference: para. 8

This oral judgment passed in light of the facts and circumstances of the present case and shall not be considered as precedent.

Source reference: para. 7
Gujarat High Court

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RANGE FOREST OFFICERvsDAMU MAHADU GAYAKVAD

Gujarat High Court · July 17, 2026

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